Rayovac 2005 Annual Report Download - page 98

The remaining balance in Assets held for sale as of September 30, 2005 includes the former Madison,
Wisconsin manufacturing facility, the former Remington facility in Bridgeport, Connecticut and a distribution
facility in the Dominican Republic.
(5) Intangible Assets
Intangible assets consist of the following:
North Latin
America Europe/ROW America United Tetra Total
Goodwill:
Balance as of September 30, 2004 $130,173 $105,414 $ 84,990 $ – $ – $ 320,577
Goodwill recognized during period – 1,610 38,247 784,340 327,269 1,151,466
Purchase price allocation during period – – (21,685) – – (21,685)
Effect of translation 16 (2,702) 10,020 217 (28,892) (21,341)
Balance as of September 30, 2005 $130,189 $104,322 $111,572 $784,557 $298,377 $1,429,017
Intangible Assets:
Trade Names Not Subject to Amortization
Balance as of September 30, 2004, net $159,000 $161,753 $ 85,125 $ – $ – $ 405,878
Additions – – – 303,463 175,500 478,963
Purchase price allocation during period – – 21,685 – – 21,685
Effect of translation – (5,361) 6,331 – – 970
Balance as of September 30, 2005, net $159,000 $156,392 $113,141 $303,463 $175,500 $ 907,496
Technology Assets, Customer Relationships
and Trade Names Subject to Amortization
Balance as of September 30, 2004, gross $ 1,385 $ 14,061 $ – $ – $ – $ 15,446
Less: Accumulated amortization (434) (1,071) – – – (1,505)
Balance as of September 30, 2004, net 951 12,990 – – – 13,941
Additions – – – 185,668 58,500 244,168
Amortization during period (90) (870) – (10,983) (2,085) (14,028)
Effect of translation – (378) – – 7 (371)
Balance as of September 30, 2005, net $ 861 $ 11,742 $ – $174,685 $56,422 $ 243,710
Pension Intangible Assets
Balance as of September 30, 2005 $ 3,191 $ – $ – $ – $ – $3,191
Total Intangible Assets, net $163,052 $168,134 $113,141 $478,148 $231,922 $1,154,397
The Company completed the acquisitions of Ningbo
and Microlite during 2004 and the acquisitions of
United, Tetra and Jungle during 2005. (See also Note 16,
Acquisitions, for additional information on the Ningbo,
Microlite, United, Tetra and Jungle acquisitions).
The carrying value of technology assets was
$40,082, net of accumulated amortization of $3,524
at September 30, 2005 and $12,149, net of accumu-
lated amortization of $1,076, at September 30, 2004.
The trade names subject to amortization relate to
United. The carrying value of these trade names was
$9,064, net of accumulated amortization of $1,886 at
September 30, 2005. Remaining intangible assets
subject to amortization include customer relationship
intangibles. Of the intangible assets acquired in the
United and Jungle acquisitions, customer relationships
and technology assets have been assigned a life of
approximately 12 years and other intangibles have
been assigned lives of 1 year to 4 years. Of the intan-
gible assets acquired in the Tetra acquisition, cus-
tomer relationships have been assigned a life of
approximately 12 years and technology assets have
been assigned a 6 year life. The pension intangible
asset totaled $2,288 at September 30, 2004.
During 2005, the Company allocated a portion of
the Microlite, United, Tetra and Jungle purchase price
to unamortizable intangible assets. The allocation con-
sisted of $21,685 to the trade name in Brazil, $271,196
to United trade names, $175,500 to Tetra trade
names, $26,267 to United license agreements and
$6,000 to Jungle trade names.
The purchase price allocation for the Tetra acquisi-
tion is based on preliminary estimates and is pending
fi nalization of the valuation of property, plant and
2005 Form 10-K Annual Report
Spectrum Brands, Inc.
SPECTRUM BRANDS, INC.78