Estee Lauder 2011 Annual Report Download - page 130

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128 THE EST{E LAUDER COMPANIES INC.
Goodwill
The Company assigns goodwill of a reporting unit to the product category in which that reporting unit predominantly
operates at the time of acquisition. The following table presents goodwill by product category and the related change in
the carrying amount:
Skin Care Makeup Fragrance Hair Care Total
(In millions)
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
Goodwill acquired during the year — 147.2 — — 147.2
Impairment charges (2.6) — — (26.7) (29.3)
Translation and other adjustments 1.6 0.3 0.2 4.8 6.9
(1.0) 147.5 0.2 (21.9) 124.8
Balance as of June 30, 2011
Goodwill 70.4 412.6 55.0 406.9 944.9
Accumulated impairments (24.4) — — (43.2) (67.6)
$ 46.0 $412.6 $55.0 $363.7 $877.3
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 2011.
Other intangible assets consists of the following:
JUNE 30, 2011 JUNE 30, 2010
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 $270.9 $168.5 $102.4 $205.0 $151.0 $ 54.0
License agreements 43.0 43.0 — 43.0 43.0 —
313.9 211.5 102.4 248.0 194.0 54.0
Non-amortizable
intangible assets:
Trademarks and other 130.3 5.2 125.1 61.0 5.5 55.5
Total intangible assets $444.2 $216.7 $227.5 $309.0 $199.5 $109.5