Rayovac 2011 Annual Report Download - page 115

SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(In thousands, except per share amounts)
(5) Goodwill and Intangible Assets
Intangible assets consist of the following:
Global Batteries &
Appliances
Global Pet
Supplies
Home and Garden
Business Total
Goodwill:
Balance at September 30, 2009 .................... $ 152,293 $160,248 $170,807 $ 483,348
Additions due to Russell Hobbs Merger ............. 116,607 2,629 843 120,079
Effect of translation ............................. (480) (2,892) — (3,372)
Balance at September 30, 2010 .................... $ 268,420 $159,985 $171,650 $ 600,055
Additions ..................................... — 10,029 255 10,284
Effect of translation ............................. (272) 271 — (1)
Balance at September 30, 2011 .................... $ 268,148 $170,285 $171,905 $ 610,338
Intangible Assets:
Trade names Not Subject to Amortization
Balance at September 30, 2009 .................... $ 401,983 $212,253 $ 76,000 $ 690,236
Additions due to Russell Hobbs Merger ............. 164,730 6,200 — 170,930
Effect of translation ............................. 3,232 (6,920) — (3,688)
Balance at September 30, 2010 .................... $ 569,945 $211,533 $ 76,000 $ 857,478
Additions ..................................... — 2,630 150 2,780
Intangible asset impairment ...................... (23,200) (8,600) (650) (32,450)
Effect of translation ............................. (941) (72) — (1,013)
Balance at September 30, 2011 .................... $ 545,804 $205,491 $ 75,500 $ 826,795
Intangible Assets Subject to Amortization
Balance at September 30, 2009, net ................ $ 354,433 $245,005 $172,271 $ 771,709
Additions due to Russell Hobbs Merger ............. 186,508 4,100 1,789 192,397
Amortization during period ....................... (22,189) (14,981) (8,750) (45,920)
Effect of translation ............................. (2,428) (3,876) — (6,304)
Balance at September 30, 2010, net ................ $ 516,324 $230,248 $165,310 $ 911,882
Additions ..................................... — 4,193 — 4,193
Amortization during period ....................... (33,184) (15,599) (8,912) (57,695)
Effect of translation ............................. (1,667) 401 — (1,266)
Balance at September 30, 2011, net ................ $ 481,473 $219,243 $156,398 $ 857,114
Total Intangible Assets, net at September 30, 2011 .... $1,027,277 $424,734 $231,898 $1,683,909
Intangible assets subject to amortization include proprietary technology, customer relationships and certain
trade names. The carrying value of technology assets was $58,170, net of accumulated amortization of $13,635 at
September 30, 2011 and $60,792, net of accumulated amortization of $6,305 at September 30, 2010. The
Company’s trade names subject to amortization relate to intangible assets recognizes as a result of the valuation
under fresh-start reporting and in connection with the Merger with Russell Hobbs. The carrying value of these
trade names was $133,380, net of accumulated amortization of $16,320 at September 30, 2011 and $145,939, net
of accumulated amortization of $3,750 at September 30, 2010. Remaining intangible assets subject to
amortization include customer relationship intangibles. The carrying value of customer relationships was
$665,564, net of accumulated amortization of $73,373 at September 30, 2011 and $705,151, net of accumulated
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