Rayovac 2011 Annual Report Download - page 116

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SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(In thousands, except per share amounts)
amortization of $35,865 at September 30, 2010. The useful life of the Company’s intangible assets subject to
amortization are 4 to 8 years for proprietary technology assets related to the Global Pet Supplies segment, 9 to 17
years for proprietary technology assets associated with the Global Batteries & Appliances segment, 15 to 20
years for customer relationships of Global Batteries & Appliances, 20 years for customer relationships of the
Home and Garden Business and Global Pet Supplies, 12 years for a trade name within the Global Batteries &
Appliances segment and 4 years for a trade name within the Home and Garden Business segment.
ASC 350 requires companies to test goodwill and indefinite-lived intangible assets for impairment annually,
or more often if an event or circumstance indicates that an impairment loss may have incurred. During Fiscal
2011, Fiscal 2010 and the period from October 1, 2008 through August 30, 2009 the Company conducted
impairment testing of goodwill and indefinite-lived intangible assets. As a result of this testing the Company
recorded non-cash pretax intangible asset impairment charges of approximately $32,450 during Fiscal 2011 and
$34,391 in the period from October 1, 2008 through August 30, 2009. Both the $32,450 recorded during Fiscal
2011 and the $34,391 recorded during the period from October 1, 2008 through August 30, 2009 related to
impaired trade name intangible assets. (See also Note 2(i), Significant Accounting Policies—Intangible Assets,
for further details on the impairment charges).
The amortization expense related to intangibles subject to amortization for the Successor Company for
Fiscal 2011, Fiscal 2010 and the period from August 31, 2009 through September 30, 2009, and the Predecessor
Company for the period from October 1, 2008 through August 30, 2009 is as follows:
Successor
Company
Predecessor
Company
2011 2010
Period from
August 31, 2009
through
September 30,
2009
Period from
October 1, 2008
through
August 30,
2009
Proprietary technology amortization ................... $ 6,817 $ 6,305 $ 515 $ 3,448
Customer list amortization .......................... 38,320 35,865 2,988 14,920
Trade names amortization ........................... 12,558 3,750 10 731
$57,695 $45,920 $3,513 $19,099
The Company estimates annual amortization expense for the next five fiscal years will approximate $58,000
per year.
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