Rayovac 2012 Annual Report Download - page 107

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SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(In thousands, except per share amounts)
the Global Batteries & Appliances segment, 15 to 20 years for customer relationships of the Global Batteries &
Appliances segment, 20 years for customer relationships of the Home and Garden Business and Global Pet
Supplies segments, 1 to 12 years for trade names within the Global Batteries & Appliances segment and 3 years
for trade names within the Global Pet Supplies segment.
The carrying value and accumulated amortization for intangible assets subject to amortization are as
follows:
September 30,
2012
September 30,
2011
Technology Assets Subject to Amortization:
Gross balance .............................................. $ 90,924 $ 71,805
Accumulated amortization .................................... (22,768) (13,635)
Carrying value, net .......................................... $ 68,156 $ 58,170
Trade Names Subject to Amortization:
Gross balance .............................................. $150,829 $149,700
Accumulated amortization .................................... (28,347) (16,320)
Carrying value, net .......................................... $122,482 $133,380
Customer Relationships Subject to Amortization:
Gross balance .............................................. $796,235 $738,937
Accumulated amortization .................................... (113,012) (73,373)
Carrying value, net .......................................... $683,223 $665,564
Total Intangible Assets Subject to Amortization ................ $873,861 $857,114
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
2012, Fiscal 2011 and Fiscal 2010 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 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 intangible assets subject to amortization for Fiscal 2012, Fiscal 2011
and Fiscal 2010 is as follows:
2012 2011 2010
Proprietary technology amortization ......................... $ 9,133 $ 6,817 $ 6,305
Trade names amortization ................................. 14,347 12,558 3,750
Customer relationship amortization .......................... 40,186 38,320 35,865
$63,666 $57,695 $45,920
The Company estimates annual amortization expense for the next five fiscal years will approximate $63,600
per year.
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