Goodwill And Intangible Assets |
5 GOODWILL AND INTANGIBLE ASSETS
Goodwill and intangible assets of the Company consist of the following:
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Global Batteries & Appliances |
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Global Pet Supplies |
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Home and Garden Business |
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Total |
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Goodwill: |
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Balance at September 30, 2011 |
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$ |
268,148 |
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$ |
170,285 |
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$ |
171,905 |
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$ |
610,338 |
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Additions |
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— |
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68,531 |
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15,852 |
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84,383 |
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Effect of translation |
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(2,224 |
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(2,214 |
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— |
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(4,438 |
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Balance at January 1, 2012 |
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$ |
265,924 |
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$ |
236,602 |
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$ |
187,757 |
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$ |
690,283 |
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Intangible Assets: |
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Trade names Not Subject to Amortization |
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Balance at September 30, 2011 |
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$ |
545,804 |
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$ |
205,491 |
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$ |
75,500 |
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$ |
826,795 |
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Additions |
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— |
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14,000 |
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8,000 |
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22,000 |
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Effect of translation |
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(3,792 |
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(4,481 |
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— |
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(8,273 |
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Balance at January 1, 2012 |
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$ |
542,012 |
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$ |
215,010 |
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$ |
83,500 |
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$ |
840,522 |
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Intangible Assets Subject to Amortization |
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Balance at September 30, 2011, net |
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$ |
481,473 |
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$ |
219,243 |
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$ |
156,398 |
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$ |
857,114 |
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Global Batteries & Appliances |
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Global Pet Supplies |
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Home and Garden Business |
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Total |
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Additions |
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— |
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65,118 |
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17,000 |
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82,118 |
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Amortization during period |
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(8,223 |
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(4,071 |
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(2,334 |
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(14,628 |
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Effect of translation |
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(3,352 |
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(2,558 |
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— |
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(5,910 |
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Balance at January 1, 2012, net |
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$ |
469,898 |
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$ |
277,732 |
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$ |
171,064 |
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$ |
918,694 |
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Total Intangible Assets, net at January 1, 2012 |
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$ |
1,011,910 |
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$ |
492,742 |
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$ |
254,564 |
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$ |
1,759,216 |
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Intangible assets subject to amortization include proprietary technology, customer relationships and certain trade names, which were recognized as a result of fresh-start reporting upon the Company's emergence from bankruptcy during the fiscal year ended September 30, 2009, the Merger and other acquisitions. The useful life of the Company's intangible assets subject to amortization are 4-9 years for technology assets related to the Global Pet Supplies segment, 9 to 17 years for technology assets associated with 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, 12 years for a trade name within the Global Batteries & Appliances segment and 4 years for a trade name within the Home and Garden Business segment.
The carrying value and accumulated amortization for intangible assets subject to amortization are as follows:
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January 1, 2012 |
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September 30, 2011 |
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Technology Assets Subject to Amortization: |
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Gross balance |
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$ |
90,923 |
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$ |
71,805 |
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Accumulated amortization |
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(15,532 |
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(13,635 |
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Carrying value, net |
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$ |
75,391 |
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$ |
58,170 |
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Trade Names Subject to Amortization: |
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Gross balance |
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$ |
149,700 |
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$ |
149,700 |
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Accumulated amortization |
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(19,460 |
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(16,320 |
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Carrying value, net |
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$ |
130,240 |
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$ |
133,380 |
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Customer Relationships Subject to Amortization: |
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Gross balance |
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$ |
795,292 |
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$ |
738,937 |
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Accumulated amortization |
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(82,229 |
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(73,373 |
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Carrying value, net |
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$ |
713,063 |
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$ |
665,564 |
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Amortization expense for the three month periods ended January 1, 2012 and January 2, 2011 is as follows:
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Three Months |
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2012 |
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2011 |
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Proprietary technology amortization |
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$ |
1,897 |
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$ |
1,649 |
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Customer relationships amortization |
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9,591 |
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9,530 |
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Trade names amortization |
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3,140 |
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3,140 |
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$ |
14,628 |
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$ |
14,319 |
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The Company estimates annual amortization expense of intangible assets for the next five fiscal years will approximate $62,700 per year. |