Callaway 2003 Annual Report Download - page 58

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CALLAWAY GOLF COMPANY 55
Note 6. Goodwill and Intangible Assets
Effective January 1, 2002, the Company adopted SFAS No. 142,
“Goodwill and Other Intangible Assets.” As a result of adopting
SFAS No. 142, the Company’s goodwill and certain intangible
assets are no longer amortized, but are subject to an annual
impairment test. The following sets forth the intangible assets
by major asset class:
Aggregate amortization expense on intangible assets was
approximately $2,008,000 for the year ended December 31,
2003. Amortization expense related to intangible assets at
December 31, 2003 in each of the next five fiscal years and
beyond is expected to be incurred as follows:
December 31, 2003 December 31, 2002
Useful Life Accumulated Net Book Accumulated Net Book
(In thousands) (Years) Gross Amortization Value Gross Amortization Value
Non-Amortizing:
Trade name, trademark and
trade dress
(1)
$120,605 $ — $ 120,605 $ 88,590 $ — $ 88,590
Amortizing:
Patents
(2)
3-16 32,277 7,251 25,026 20,167 5,697 14,470
Other
(3)
1-9 4,386 382 4,004 57 2 55
Total intangible assets $ 157,268 $ 7,633 $ 149,635 $ 108,814 $ 5,699 $ 103,115
(1) Acquired during business acquisition transactions.
(2) The gross balance of patents at December 31, 2003 and 2002 acquired during business acquisition transactions was $19,114,000 and $6,963,000, respectively. The accumulated amortization
balance of acquired patents at December 31, 2003 and 2002 was $3,131,000 and $2,472,000, respectively.
(3) The gross balance of other intangibles at December 31, 2003 acquired during business acquisition transactions was $4,293,000. The accumulated amortization balance of other acquired
intangibles at December 31, 2003 was $364,000. There were no other acquired intangibles at December 31, 2002.
(In thousands)
2004 $ 3,764
2005 3,705
2006 2,846
2007 2,673
2008 2,639
Thereafter 13,403
$ 29,030