Rayovac 2004 Annual Report Download - page 100

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RAYOVAC CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
Of the $129,000 of goodwill, approximately $65,000 is deductible for tax purposes. Of the $160,000 of
acquired intangible assets, $159,000 was assigned to registered trade names which are not subject to
amortization.
On October 1, 2002, the Company acquired substantially all of the consumer battery business of VARTA
AG. The acquisition consisted of the purchase of all of VARTA AG’s consumer battery subsidiaries and business
outside of Germany, excluding Brazil, and a controlling ownership and management interest in a new joint
venture entity that will operate the VARTA AG consumer battery business in Germany. The residual interest in
the joint venture is held by VARTA AG.
The aggregate cash purchase price was approximately $275,300, which includes approximately $7,600 of
acquisition related expenditures. The following table summarizes the fair value of the assets acquired and
liabilities assumed as of the date of the acquisition.
As of October 1, 2002
Current assets .............................................. $168,000
Property, plant, and equipment ................................ 52,400
Intangible assets ............................................ 140,200
Goodwill ................................................. 75,100
Other assets ............................................... 2,700
Total assets acquired .................................... 438,400
Current liabilities ........................................... 90,700
Long-term liabilities ........................................ 72,400
Total liabilities assumed ................................. 163,100
Net assets acquired .......................................... $275,300
Less: Cash acquired ..................................... (13,000)
Payments for acquisitions .................................... $262,300
Of the $140,200 of acquired intangible assets, approximately $128,600 was assigned to registered trade
names which are not subject to amortization. The remaining acquired intangible assets of approximately $11,600
have a weighted-average useful life of approximately 18 years. The intangibles comprising the $11,600 of
amortizable intangible assets include a manufacturing technology asset of approximately $9,900 (nineteen-year
weighted-average useful life) and a customer list intangible asset of approximately $1,700 (ten-year average
useful life). The goodwill of approximately $75,100 was assigned to the North America, Latin America, and
Europe/ROW segments in the amounts of approximately $1,400, $11,200, and $62,500, respectively. Of the
$75,100 of goodwill, none is expected to be deductible for tax purposes.
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