Sunbeam 2003 Annual Report Download - page 49

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Jarden Corporation
Notes to Consolidated Financial Statements (continued)
8. Intangibles
As of December 31, 2003 and 2002, the Company had recorded the following amounts for
intangible assets:
Branded
Consumables
Consumer
Solutions Total
(in millions)
2003
Intangible assets not subject to amortization:
Goodwill ...................................... $ 167.3 $ 69.1 $ 236.4
Trademarks ................................... 18.9 55.9 74.8
Intangible assets not subject to amortization .... 186.2 125.0 311.2
Intangible assets subject to amortization:
Manufacturing processes and expertise ............ — 6.0 6.0
Accumulated amortization ....................... — (1.4) (1.4)
Net amount of intangible assets subject to
amortization ............................. — 4.6 4.6
Total goodwill and other intangible assets .............. $ 186.2 $ 129.6 $ 315.8
2002
Intangible assets not subject to amortization:
Goodwill ...................................... $ 15.5 $ 60.3 $ 75.8
Trademarks ................................... — 52.9 52.9
Intangible assets not subject to amortization .... 15.5 113.2 128.7
Intangible assets subject to amortization:
Manufacturing processes and expertise ............ — 6.0 6.0
Accumulated amortization ....................... — (0.6) (0.6)
Net amount of intangible assets subject to
amortization ............................. — 5.4 5.4
Total goodwill and other intangible assets .............. $ 15.5 $ 118.6 $ 134.1
The only intangible assets which have a definitive life and are currently subject to amortization are
the manufacturing processes and expertise, which are being amortized over a period of 7-8 years.
Amortization for the manufacturing processes and expertise in the aggregate amounts of $0.8 million
and $0.6 million were recorded in 2003 and 2002, respectively, and are included in Selling, General and
Administrative expenses in the Consolidated Statements of Operations.
The estimated intangible assets amortization expense, including estimated amortization on future
contracted intangible asset purchases not included in the table above, for each of the five succeeding
fiscal years is as follows: $1.0 million in 2004; $1.1 million in 2005; $1.2 million in 2006; $1.2 million in
2007 and $1.3 million in 2008.
A portion of the Company’s goodwill relating to the Tilia Acquisition is recorded on a Canadian
subsidiary’s books. Due to the effect of foreign currency translations the amount of goodwill recorded
increased by approximately $3.1 million and $0.2 million in 2003 and 2002, respectively.
The goodwill and other intangible assets recorded by the Company are fully deductible for income
tax purposes.
page 47