Sunbeam 2005 Annual Report Download - page 56

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Jarden Corporation
Notes to Consolidated Financial Statements (cont’d)
December 31, 2005
Branded
Consumables Consumer
Solutions Total
December 31, 2004
Intangible assets not subject to amortization:
Goodwill ................................................... $376.6 $ 91.1 $467.7
Trademarks ................................................. 73.9 56.1 130.0
Intangible assets not subject to amortization .................. 450.5 147.2 597.7
Intangible assets subject to amortization:
Non-compete agreements ..................................... 1.1 — 1.1
Manufacturing processes and expertise .......................... — 6.5 6.5
Accumulated amortization and other ............................ (0.5) (2.4) (2.9)
Net amount of intangible assets subject to amortization ........ 0.6 4.1 4.7
Total goodwill, trademarks and other intangible assets ............. $451.1 $151.3 $602.4
In the branded consumables segment, the only intangible assets which had finite lives and were
subject to amortization were two non-compete agreements in the aggregate amount of approximately $1.1
million, which were assumed by the Company in connection with the USPC Acquisition and which were
being amortized over the term of the respective agreements. Amortization for the non-compete agreements
in the aggregate amount of approximately $0.5 million and $0.5 million was recorded in the years ended
December 31, 2005 and 2004, respectively. These amounts are included in SG&A expenses in the
Consolidated Statements of Income.
In the consumer solutions segment, intangible assets which have finite lives and are currently subject
to amortization are the manufacturing processes and expertise and patents, which are being amortized over
a period of seven years and non-compete agreements, which are being amortized over five years.
Amortization for the these assets in the aggregate amount of approximately $1.0 million, $0.9 million and
$0.9 million was recorded in the years ended December 31, 2005, 2004 and 2003, respectively. These
amounts are included in SG&A expenses in the Consolidated Statements of Income. Amortization of the
patents was less than $0.1 million for the year ended December 31, 2005. There was no patent amortization
expense in the years ended December 31, 2004 and 2003.
As of December 31, 2005, approximately $878 million of the goodwill and other intangible assets
recorded by the Company is not deductible for income tax purposes. Such amount is subject to change
based upon purchase accounting adjustments that may be made within the allocation period.
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