| |
9. Goodwill and Other
Intangible Assets
Goodwill The Company adopted the remaining provisions of SFAS No.
142 on January 1, 2002.
Had SFAS No. 142 been effective January 1, 2001, net earnings for
2001 would have been
reported as follows:
| |
2003 |
2002 |
2001 |
|
| Net earnings |
$ |
83,538 |
$ |
98,887 |
$ |
71,488 |
| Add back: goodwill amortization, net of tax |
– |
– |
4,940 |
|
| Adjusted net earnings |
$ |
83,538 |
$ |
98,887 |
$ |
76,428 |
|
The carrying amount of goodwill by segment at December 31 is as
follows:
| |
2003 |
2002 |
|
| Dairy Foods |
$ |
66,259 |
$ |
66,718 |
| Feed |
150,922 |
156,839 |
| Seed |
12,405 |
16,948 |
| Swine |
– |
647 |
| Agronomy |
63,733 |
69,823 |
| Layers |
79,764 |
11,897 |
| Others |
– |
541 |
|
| Total goodwill |
$ |
373,083 |
$ |
323,413 |
|
Goodwill in the Layers segment increased by $67.9 million, primarily
due to the consolidation of MoArk and the presumed minority interest
acquisition of the remaining interest of MoArk. The decreases in Seed
and Swine segment goodwill were due to impairments of $1.0 million
and $0.6 million, respectively, amortization and certain reclassifications.
Goodwill decreases in the Dairy Foods, Feed, and Agronomy segments
resulted from amortization associated with investments in joint ventures
and cooperatives.
Other Intangible Assets A summary of other intangible
assets at December 31 is as follows:
| |
2003 |
2002 |
|
Amortized other intangible assets:
Patents, less accumulated amortization of $2,622
and $1,394, respectively
|
$ |
14,147 |
$ |
15,318 |
Trademarks, less accumulated amortization of $2,044 and $1,615,
respectively
|
2,296 |
2,725 |
Other intangible assets, less accumulated amortization
of $12,783 and $9,667, respectively
|
9,870 |
7,102 |
|
| Total amortized other intangible assets |
26,313 |
25,145 |
| Total non-amortized other intangible assets – trademarks
|
76,625 |
76,625 |
|
| Total other intangible assets |
$ |
102,938 |
$ |
101,770 |
|
Amortization expense for the years ended December 31, 2003, 2002 and
2001 was $5.3 million, $6.6 million and $4.6 million, respectively.
The estimated amortization expense related to other intangible assets
subject to amortization for the next five years will approximate $3.0
million annually. The weighted-average life of the intangible assets
subject to amortization is approximately 10 years.
|
