Estee Lauder 2007 Annual Report Download - page 63

Other intangible assets consist of the following:
Gross Total
Carrying Accumulated Net Book
JUNE 30, 2007 Value Amortization Value
(In millions)
License agreements $ 42.9 $ 23.8 $ 19.1
Trademarks and other 191.2 97.3 93.9
Patents 0.6 0.2 0.4
Total $234.7 $121.3 $113.4
Gross Total
Carrying Accumulated Net Book
JUNE 30, 2006 Value Amortization Value
(In millions)
License agreements $ 42.9 $ 19.7 $23.2
Trademarks and other 148.6 95.0 53.6
Patents 0.5 0.3 0.2
Total $192.0 $115.0 $77.0
62 THE EST{E LAUDER COMPANIES INC.
The aggregate amortization expense related to amortizable intangible assets for the years ended June 30, 2007, 2006 and
2005 was $6.3 million, $5.5 million and $4.6 million, respectively. The estimated aggregate amortization expense for each
of the next fi ve fi scal years is as follows:
ESTIMATED EXPENSE IN FISCAL 2008 2009 2010 2011 2012
(In millions)
Aggregate amortization expense $6.2 $4.8 $4.7 $3.9 $3.5
Long-Lived Assets
In accordance with SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” long-lived assets are
reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets in
question may not be recoverable. An impairment would be recorded in circumstances where undiscounted cash fl ows
expected to be generated by an asset are less than the carrying value of that asset.
Accumulated Other Comprehensive Income
The components of accumulated other comprehensive income (“OCI”) included in the accompanying consolidated
balance sheets consist of the following:
YEAR ENDED JUNE 30 2007 2006 2005
(In millions)
Net unrealized investment gains, beginning of year $ 0.5 $ 0.4 $ 0.1
Unrealized investment gains 0.5 0.1 0.5
Provision for deferred income taxes (0.2) — (0.2)
Net unrealized investment gains, end of year 0.8 0.5 0.4
Net derivative instruments, beginning of year 10.3 12.0 10.2
Gain (loss) on derivative instruments (7.4) 5.2 (9.1)
Benefi t (provision) for deferred income taxes on derivative instruments 2.5 (1.7) 3.0
Reclassifi cation to earnings during the year 4.2 (8.3) 11.8
Benefi t (provision) for deferred income taxes on reclassifi cation (1.4) 3.1 (3.9)
Net derivative instruments, end of year 8.2 10.3 12.0
Net minimum pension liability adjustments, beginning of year (6.1) (36.0) (24.6)
Minimum pension liability adjustments (6.7) 41.4 (15.5)
Benefi t (provision) for deferred income taxes 2.7 (11.5) 4.1
Adjustment to initially apply SFAS No. 158, net of tax 10.1 — —
Net minimum pension liability adjustments, end of year — (6.1) (36.0)
Cumulative translation adjustments, beginning of year 60.0 33.0 24.8
Translation adjustments 53.1 27.0 8.2
Cumulative translation adjustments, end of year 113.1 60.0 33.0
Adjustment to initially apply SFAS No. 158 (98.7) — —
Benefi t for deferred income taxes 31.3 — —
Adjustment to initially apply SFAS No. 158, net of tax (67.4) — —
Accumulated other comprehensive income $ 54.7 $ 64.7 $ 9.4
2007
$
0.5
0
.
5
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0.
8
1
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.
3
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7.4
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.5
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.
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—
60
.
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$
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