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92 THE EST{E LAUDER COMPANIES INC.
working capital adjustments that were paid during fiscal
2015 and additional working capital adjustments and a
purchase price true-up payment that are expected to be
paid in the first quarter of fiscal 2016. The aggregate
acquisition-date fair value of these transactions was
approximately $437 million.
These fiscal 2015 acquisitions were not material, indi
-
vidually or in the aggregate, to the Company’s consoli-
dated financial statements. Pro forma results of operations
of the prior year have not been presented, as the impact
on the Company’s consolidated financial results would
not have been material.
NOTE 7
—
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
During the year ended June 30, 2015, the Company acquired RODIN olio lusso, Le Labo, Editions de Parfums Frédéric
Malle and GLAMGLOW, which included the addition of goodwill of $246.9 million, amortizable intangible assets of $28.0
million (with a weighted-average amortization period of approximately 9 years) and non-amortizable intangible assets of
$154.8 million related to the Company’s fragrance and skin care product categories. Approximately $152 million of good-
will recorded in connection with certain of these acquisitions is expected to be deductible for tax purposes. During the
year ended June 30, 2015, the Company recognized $9.4 million of goodwill associated with the continuing earn-out
obligations related to the acquisition of the Bobbi Brown brand.
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, 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
Goodwill acquired during the year — 10.3 — — 10.3
Translation and other adjustments 0.1 — — 1.3 1.4
0.1 10.3 — 1.3 11.7
Balance as of June 30, 2014
Goodwill 68.9 440.7 54.8 402.3 966.7
Accumulated impairments (33.6) — — (39.9) (73.5)
35.3 440.7 54.8 362.4 893.2
Goodwill acquired during the year 120.1 9.4 126.8 — 256.3
Translation and other adjustments (0.6) (0.4) (0.3) (3.4) (4.7)
119.5 9.0 126.5 (3.4) 251.6
Balance as of June 30, 2015
Goodwill 183.9 449.7 181.3 394.7 1,209.6
Accumulated impairments (29.1) — — (35.7) (64.8)
$154.8 $449.7 $181.3 $359.0 $1,144.8
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 2015 and 2014 were not significant to the Company’s results of operations.