Rayovac 2004 Annual Report Download - page 81

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RAYOVAC CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
(5) Intangible Assets
Intangible assets consist of the following:
September 30,
2004 2003
Gross
Carrying
Amount
Accumulated
Amortization
Cumulative
Effect of
Translation
Net
Intangible
Gross
Carrying
Amount
Accumulated
Amortization
Cumulative
Effect of
Translation
Net
Intangible
Amortized Intangible
Assets
Proprietary
technology ........ $ 11,281 $(1,076) $ 1,944 $ 12,149 $ 10,421 $ (340) $ 1,766 $ 11,847
Customer lists ....... 1,781 (429) 440 1,792 1,781 (210) 318 1,889
13,062 (1,505) 2,384 13,941 12,202 (550) 2,084 13,736
Pension Intangibles
Under-funded
pension .......... 2,288 — — 2,288 2,405 — — 2,405
Unamortized
Intangible Assets
Trade names balance
as of beginning of
period ........... 218,642 (4,875) 22,962 236,729 90,000 (4,875) — 85,125
Trade name purchase
price allocation
during period ...... 159,000 — — 159,000 — — — —
Translation during
period ........... — — 10,148 10,148 — — 22,962 22,962
Trade name acquired
during period ...... — — — — 128,642 — — 128,642
Trade names balance
as of end of
period ........... 377,642 (4,875) 33,110 405,877 218,642 (4,875) 22,962 236,729
Intangible assets,
net .............. $392,992 $(6,380) $35,494 $422,106 $233,249 $(5,425) 25,046 $252,870
Goodwill
North
America
Latin
America Europe/ROW Total
Balance as of October 1, 2003, net ....................... $285,418 $37,876 $ 75,086 $ 398,380
Goodwill recorded during year .......................... 4,615 43,313 25,815 73,743
Purchase price allocation during period ................... (159,860) — — (159,860)
Effect of translation .................................. — 3,801 4,513 8,314
Balance as of September 30, 2004, net .................... $130,173 $84,990 $105,414 $ 320,577
During 2004, the Company completed the acquisitions of Ningbo and Microlite. During 2003, the Company
completed the acquisition of substantially all of the consumer battery business (“VARTA”) of VARTA AG and
the acquisition of Remington. The Company recognized intangible assets associated with the VARTA
acquisition, including proprietary manufacturing technology, customer lists, and VARTA trade name intangibles.
66