Sunbeam 2004 Annual Report Download - page 59

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Jarden Corporation
Notes to Consolidated Financial Statements (cont’d)
December 31, 2004
Branded
Consumables
Consumer
Solutions Total
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:
Non-compete agreement ........................... ———
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 asset .......... $186.2 $129.6 $315.8
The only intangible assets which have finite lives and are currently subject to amortization are
certain manufacturing processes and expertise within the consumer solutions segment, which are being
amortized over a period of seven to eight years and two non-compete agreements within the branded
consumables segment, which are being amortized over the life of their respective agreements.
Amortization expense for the intangible assets which have finite lives in the aggregate amounts of $1.5
million, $0.8 million and $0.6 million was recorded in 2004, 2003 and 2002, respectively, and is included
in Selling, General and Administrative expenses in the Consolidated Statements of Income.
The following table summarizes the changes to the carrying amounts of intangible asset not subject
to amortization during the years ended December 31, 2004 and 2003:
(in millions)
Branded
Consumables
Consumer
Solutions Total
Intangible assets not subject to amortization:
Balance at December 31, 2002 ....................... $ 15.5 $113.2 $128.7
Acquired goodwill (see Note 3) .................. 151.7 6.4 158.1
Acquired trademark (see Note 3) ................ 19.0 3.0 22.0
Foreign currency translation adjustment .......... — 3.1 3.1
Purchase accounting adjustments to goodwill ...... — (0.7) (0.7)
Balance at December 31, 2003 ....................... 186.2 125.0 311.2
Acquired goodwill (see Note 3) .................. 204.6 — 204.6
Acquired trademark (see Note 3) ................ 54.9 0.2 55.1
Contingent consideration ....................... — 17.3 17.3
Foreign currency translation adjustment .......... — 1.3 1.3
Purchase accounting adjustments to goodwill ...... 4.8 3.4 8.2
Balance at December 31, 2004 ....................... $450.5 $147.2 $597.7
The purchase accounting adjustments to goodwill in 2004 primarily relate to the finalization of
preliminary working capital balances related to recent acquisitions. As described in Note 3 during 2004,
the Company recorded to the goodwill balance in connection with the Tilia Acquisition, an estimated
earn-out amount of $17.3 million.
57