Estee Lauder 2013 Annual Report Download - page 152

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150 THE EST{E LAUDER COMPANIES INC.
NOTE 5
—
GOODWILL AND OTHER INTANGIBLE ASSETS
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, 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
Goodwill acquired during the year — 8.8 — — 8.8
Translation and other adjustments (1.5) (0.3) (0.2) (1.5) (3.5)
(1.5) 8.5 (0.2) (1.5) 5.3
Balance as of June 30, 2012
Goodwill 68.1 421.1 54.8 403.4 947.4
Accumulated impairments (23.6) — — (41.2) (64.8)
44.5 421.1 54.8 362.2 882.6
Goodwill acquired during the year — 9.2 — — 9.2
Impairment charges (9.6) — — — (9.6)
Translation and other adjustments 0.3 0.1 — (1.1) (0.7)
(9.3) 9.3 — (1.1) (1.1)
Balance as of June 30, 2013
Goodwill 67.7 430.4 54.8 401.6 954.5
Accumulated impairments (32.5) — — (40.5) (73.0)
$ 35.2 $430.4 $54.8 $361.1 $881.5
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 exist. Other intangible assets (e.g., non-compete agreements, customer lists)
are amortized on a straight-line basis over their expected period of benefit, approximately 2 years to 20 years. Intangible
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 costs incurred and expensed by the Company to extend or renew the term of acquired
intangible assets during fiscal 2013 and 2012 were not significant to the Company’s results of operations.
Other intangible assets consist of the following:
JUNE 30, 2013 JUNE 30, 2012
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 $268.0 $204.1 $ 63.9 $268.4 $191.9 $ 76.5
License agreements 43.0 43.0 — 43.0 43.0 —
$311.0 $247.1 63.9 $311.4 $234.9 76.5
Non-amortizable
intangible assets:
Trademarks and other 105.7 113.6
Total intangible assets $169.6 $190.1
JU
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