Estee Lauder 2010 Annual Report Download - page 122

Download and view the complete annual report

Please find page 122 of the 2010 Estee Lauder annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

THE EST{E LAUDER COMPANIES INC. 121
Goodwill
The Company assigns goodwill of a reporting unit to the product category in which that reporting unit predominantly
operates at the time of its acquisition. The change in the carrying amount of goodwill is as follows:
Skin Care Makeup Fragrance Hair Care Total
(In millions)
Balance as of June 30, 2008
Goodwill $ 29.7 $252.4 $54.9 $379.2 $716.2
Accumulated impairments (7.3) — — — (7.3)
22.4 252.4 54.9 379.2 708.9
Goodwill acquired during the year 42.6 6.1 0.1 26.2 75.0
Impairment charges (14.3) — — — (14.3)
Translation and other adjustments (1.5) (0.4) (0.3) (7.5) (9.7)
26.8 5.7 (0.2) 18.7 51.0
Balance as of June 30, 2009
Goodwill 69.5 258.1 54.7 397.9 780.2
Accumulated impairments (20.3) — — — (20.3)
49.2 258.1 54.7 397.9 759.9
Goodwill acquired during the year 0.2 7.2 0.2 1.1 8.7
Impairment charges (1.5) — — (15.1) (16.6)
Translation and other adjustments (0.9) (0.2) (0.1) 1.7 0.5
(2.2) 7.0 0.1 (12.3) (7.4)
Balance as of June 30, 2010
Goodwill 67.9 265.1 54.8 400.6 788.4
Accumulated impairments (20.9) — — (15.0) (35.9)
$ 47.0 $265.1 $54.8 $385.6 $752.5
Other Intangible Assets
Other intangible assets include trademarks and patents, as well as license agreements and other intangible assets resulting
from or related to businesses and assets purchased by the Company. Indefinite-lived intangible assets (e.g., trademarks)
are not subject to amortization and are assessed at least annually for impairment during the fiscal fourth quarter, or more
frequently if certain events or circumstances warrant. Other intangible assets (e.g., non-compete agreements, customer
lists) are amortized on a straight-line basis over their expected period of benefit, approximately 5 years to 13 years. Intan-
gible assets related to license agreements were amortized on a straight-line basis over their useful lives based on the terms
of the respective agreements. The Company did not incur costs to extend or renew the term of acquired intangible assets
during fiscal 2010.
Other intangible assets consist of the following:
JUNE 30, 2010 JUNE 30, 2009
Gross Accumulated Total Net Gross Accumulated Total Net
Carrying Value Amortization Book Value Carrying Value Amortization Book Value
(In millions)
Amortizable intangible assets:
Customer lists and other $205.0 $151.0 $ 54.0 $199.2 $115.9 $ 83.3
License agreements 43.0 43.0 — 43.2 43.0 0.2
248.0 194.0 54.0 242.4 158.9 83.5
Non-amortizable
intangible assets:
Trademarks and other 61.0 5.5 55.5 73.4 6.8 66.6
Total intangible assets $309.0 $199.5 $109.5 $315.8 $165.7 $150.1
J
UNE
30, 2010
G
ross
Accumulated
Total Net
G
Carrying Value
Amortization
Book Value
$205.0
$151.0
$ 54.0
43.0
43.0
—
248.0
194.0
54.0
61.0
5.5
55.5
$309.0
$199.5
$109.5