SEC Filings

424B3
SPECTRUM BRANDS, INC. filed this Form 424B3 on 08/03/2016
Entire Document
 


Table of Contents

NOTE 7 - PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consist of the following:

 

(in millions)

   July 3, 2016      September 30, 2015  

Land, buildings and improvements

   $ 193.5       $ 190.9   

Machinery, equipment and other

     525.9         491.9   

Capitalized leases

     121.7         97.3   

Construction in progress

     59.5         51.8   
  

 

 

    

 

 

 

Property, plant and equipment

   $ 900.6       $ 831.9   

Accumulated depreciation

     (377.4      (324.8
  

 

 

    

 

 

 

Property, plant and equipment, net

   $ 523.2       $ 507.1   
  

 

 

    

 

 

 

NOTE 8 - GOODWILL AND INTANGIBLE ASSETS

Goodwill, by segment, consists of the following:

 

(in millions)

   Global
Batteries &
Appliances
    Hardware &
Home
Improvement
     Global Pet
Supplies
     Home and
Garden
     Global
Auto Care
    Total  

Balance, as of September 30, 2015

     348.5        699.5         299.6         196.5         932.6        2,476.7   

Adjustments

     —          —           —           —           3.4        3.4   

Foreign currency impact

     (2.8     3.6         0.1         —           (1.3     (0.4
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Balance, as of July 3, 2016

   $ 345.7      $ 703.1       $ 299.7       $ 196.5       $ 934.7      $ 2,479.7   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

The carrying value and accumulated amortization for intangible assets subject to amortization are as follows:

 

     July 3, 2016      September 30, 2015  

(in millions)

   Gross
Carrying
Amount
     Accumulated
Amortization
    Net      Gross
Carrying
Amount
     Accumulated
Amortization
    Net  

Customer relationships

   $ 984.0       $ (288.7   $ 695.3       $ 985.2       $ (247.4   $ 737.8   

Technology assets

     236.3         (91.0     145.3         238.6         (78.1     160.5   

Tradenames

     165.4         (85.3     80.1         165.4         (73.7     91.7   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 1,385.7       $ (465.0   $ 920.7       $ 1,389.2       $ (399.2   $ 990.0   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

The range and weighted average useful lives for definite-lived intangible assets are as follows:

 

Asset Type

   Range    Weighted Average

Customer relationships

   2 - 20 years    18.5 years

Technology assets

   4 - 18 years    11.1 years

Tradenames

   8 - 17 years    16.2 years

Certain tradename intangible assets have an indefinite life and are not amortized. The balance of tradenames not subject to amortization was $1,478.9 million and $1,490.3 million as of July 3, 2016 and September 30, 2015. There was no impairment loss on indefinite-lived trade names for the nine month periods ended July 3, 2016 or June 28, 2015.

Amortization expense from intangible assets for the three month periods ended July 3, 2016 and June 28, 2015 was $23.5 million and $22.3 million, respectively. Amortization expense from intangible assets for the nine month periods ended July 3, 2016 and June 28, 2015 was $70.5 million and $64.0 million, respectively. Excluding the impact of any future acquisitions or changes in foreign currency, the Company estimates annual amortization expense of intangible assets for the next five fiscal years will be as follows:

 

(in millions)

   Amortization  

2016

   $ 93.9   

2017

     93.0   

2018

     86.2   

2019

     85.1   

2020

     84.9   

 

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