Rayovac 2004 Annual Report Download - page 82

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RAYOVAC CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
There was no allocation for the Remington trade name or other intangibles made in the Consolidated Balance
Sheet as of September 30, 2003, as valuations relating to Remington had not been completed.
During 2004, the Company allocated a portion of the Remington purchase price to unamortizable and
amortizable intangible assets. The allocation consisted of $159,000 to the Remington trade name and $860 to
various patented proprietary technology assets. The Company also recognized goodwill with the VARTA,
Remington, Ningbo and Microlite acquisitions.
During 2004, the Company recognized a deferred tax liability of $17,000 which was established for the
difference in the book basis and tax basis of the VARTA trade name. The establishment of this liability increased
the value of goodwill associated with the VARTA acquisition.
The purchase price allocations for the Ningbo and Microlite acquisitions are not yet finalized as the Company
is finalizing valuations of property, plant and equipment, inventory, certain intangibles and acquired intangibles.
Future allocations of the Ningbo and Microlite purchase prices may impact the amount and segment allocation of
goodwill. See also Note 16, Acquisitions, for additional discussion of the Remington, VARTA, Ningbo and
Microlite acquisitions.
The amortization expense for 2004, 2003 and 2002 is as follows:
2004 2003 2002
Customer list amortization ................................ $219 $195 $—
Proprietary technology amortization ......................... 736 243 173
$955 $438 $173
The Company estimates annual amortization expense for the next five fiscal years will approximate $950
per year.
(6) Debt
Debt consists of the following:
September 30,
2004 2003
Amount Rate(A) Amount Rate(A)
Senior Subordinated Notes, due September 30, 2013 ....... $350,000 8.5% $350,000 8.5%
Term C loan facility, expiring September 30, 2009 ........ 257,000 4.2% — —
Euro term C loan facility, expiring September 30, 2009 ..... 141,845 5.1% — —
Revolving credit facility, expiring September 30, 2008 ..... 37,000 5.7% — —
Euro revolving credit facility, expiring September 30,
2008 ........................................... — — — —
Term B loan facility ................................ — — 317,000 4.9%
Euro term B loan facility ............................. — — 139,067 5.9%
Euro term A loan facility ............................. — — 49,563 5.6%
Series D Senior Subordinated Debentures, due May 15,
2006 ........................................... — — 50,586 11.0%
Series B Senior Subordinated Debentures, due May 15,
2006 ........................................... — — 5,424 11.0%
Other notes and obligations ........................... 20,530 — 7,652 —
Capitalized lease obligations .......................... 23,522 — 24,100 —
829,897 943,392
Less current maturities .............................. 23,895 72,852
Long-term debt .................................... $806,002 $870,540
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