Sunbeam 2008 Annual Report Download - page 47

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Gross
Carrying Accumulated Net Book
Amount at Amortization Value At Amortization
December 31, and Foreign December 31, Periods
(In millions) 2006 Additions Exchange 2007 (years)
Intangibles
Patents $ 0.1 $ — $ — $ 0.1 30
Non-compete agreements 1.7 — (1.4) 0.3 3-5
Manufacturing process and expertise 6.5 25.5 (8.3) 23.7 3-7
Brand names 1.9 2.4 (0.5) 3.8 4-10
Customer relationships and distributor channels 115.6 30.6 (8.9) 137.3 10-25
Trademarks and tradenames 585.8 374.6 1.0 961.4 indefinite
$711.6 $ 433.1 $ (18.1) $ 1,126.6
In the fourth quarter of 2008, the Company’s annual impairment test resulted in a non-cash charge of $111 to reflect impairment of
intangible assets related to certain of the Company’s tradenames. The impairment charge was allocated to the Company’s reporting
segments as follows:
Year Ended
December 31,
(In millions) 2008
Impairment of intangibles
Outdoor Solutions $11.7
Consumer Solutions 76.3
Branded Consumables 22.9
$110.9
In the Outdoor Solutions segment the impairment charge recorded relates primarily to certain tradenames within this segment’s
snowsports and paintball businesses.The impairment within the Outdoor Solutions segment was due to an overall decline in the paintball
market, as well as a decrease in the fair value of forecasted cash flows, resulting from the impact that the continued deterioration of
macroeconomic conditions has on such cash flows. In the Consumer Solutions segment the impairment charge recorded relates to certain
tradenames within this segment’s small kitchen and household appliance businesses. The impairment within the Consumer Solutions
segment is primarily due to: the Company’s decision to strategically realign certain brand names; increased competition in certain markets;
and the impact of the continued deterioration of macroeconomic conditions. In the Branded Consumables segment the impairment charge
recorded relates to certain tradenames associated with this segment’s Firelog, Lehigh and United States Playing Cards businesses. The
impairment within the Branded Consumables segment was due to a decrease in the fair value of forecasted cash flows, resulting from the
impact that the continued deterioration of macroeconomic conditions has on such cash flows.
The estimated future amortization expense related to amortizable intangible assets at December 31, 2008 is as follows:
(In millions)
Years Ending December 31, Amount
2009 $15.4
2010 13.6
2011 11.0
2012 9.3
2013 8.5
2014 and thereafter 91.8
Amortization of intangibles for 2008, 2007 and 2006 was $16.0, $11.4 and $3.5, respectively. At December 31, 2008, approximately
$1.5 billion of the goodwill and other intangible assets recorded by the Company is not deductible for income tax purposes.
Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2008 (Dollars in millions, except per share data and unless otherwise indicated)
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