Rayovac 2003 Annual Report Download - page 47

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The trade name asset and Latin America segment goodwill, prior to the adoption of FASB Statement No. 142, are associated with
the 1999 acquisition of ROV Limited and were being amortized on a straight-line basis over 40 years. The North America segment
goodwill, prior to the adoption of FASB Statement No. 142, is associated with the 1998 acquisition of Best Labs and was being amor-
tized on a straight-line basis over 15 years. The Europe/ROW segment goodwill, prior to the adoption of FASB Statement No. 142, is
associated with the 1998 acquisition of Brisco GmbH in Germany and was being amortized on a straight-line basis over 15 years.
The amortization expense for 2001, 2002, and 2003 are as follows:
2001 2002 2003
Amortization Expense
Goodwill amortization $1,050 $—$—
Trade name amortization 2,250 ——
Customer list amortization ——195
Non-compete and proprietary technology 173 173 243
$3,473 $173 $438
The annual amortization expense (based on September 30, 2003 exchange rates) for the next five fiscal years, is estimated to be
approximately:
2004 $950
2005 $950
2006 $850
2007 $850
2008 $850
The purchase price allocation for the Remington acquisition has not yet been finalized, consequently, changes in the purchase price
allocation could impact estimates of future amortization expense.
(6) DEBT
Debt consists of the following:
September 30,
2002 2003
Revolving credit facility $174,500 $—
Term loan facility 23,061 —
Euro revolving credit facility ——
Euro term A loan facility —49,563
Euro term B loan facility —139,067
Term B loan facility —317,000
Series B Senior Subordinated Debentures, due May 15, 2006,
with interest at 11% payable semi-annually —5,424
Series D Senior Subordinated Debentures, due May 15, 2006,
with interest at 11% payable semi-annually —50,586
Senior Subordinated Notes, due September 30, 2013, with
interest at 81⁄2% payable semi-annually —350,000
Capitalized lease obligations 500 24,100
Notes and obligations, weighted average interest rate of 51⁄2%
at September 30, 2003 3,810 7,652
201,871 943,392
Less current maturities 13,400 72,852
Long-term debt $188,471 $870,540
In connection with the acquisition of VARTA on October 1, 2002, the Company entered into an Amended and Restated Credit
Agreement (“Third Restated Agreement”). The Third Restated Agreement provides for senior bank facilities, including term and
revolving credit facilities in an initial aggregate amount (assuming an exchange rate of the Euro to the Dollar of 1 to 1) of approxi-
mately $625,000. The Third Restated Agreement includes a $100,000 six year revolving credit facility, a €50,000 six year revolving
credit facility, a $300,000 seven year amortizing term loan, a €125,000 seven year amortizing term loan and a €50,000 six year amor-
tizing term loan.
Notes to Consolidated Financial Statements
Rayovac Corporation and Subsidiaries
(In thousands, except per share amounts)