Proctor and Gamble 2003 Annual Report Download - page 47

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Notes to Consolidated Financial Statements 45The Procter & Gamble Company and Subsidiaries
The amortization of intangible assets for the years ended June 30,
2003, 2002 and 2001 was $100, $97 and $80, respectively. Amortiza-
tion of intangibles is determined based on the estimated useful life of
the underlying asset as more fully discussed in Note 1. Estimated amor-
tization expense over the next five years is as follows: 2004 - $95, 2005
- $92, 2006 - $91, 2007 - $61 and 2008 - $51. Such estimates do not
reflect the impact of future foreign exchange rate changes or the pend-
ing acquisition of Wella AG (see Note 3).
The following table provides pro forma disclosure of net earnings and
earnings per common share for the year ended June 30, 2001 as if
goodwill and indefinite-lived intangible assets had not been amortized.
Note 5 Supplemental Financial Information
Selected components of current and non-current liabilities were as follows:
Feminine care goodwill was moved from Baby and Family Care to
Beauty Care for all periods presented, consistent with the segment re-
alignment discussed in Note 12.
Identifiable intangible assets as of June 30, 2003 and 2002 were com-
posed of:
Millions of dollars except per share amounts
2002
$457
(6)
451
987
(157)
830
3,163
3,330
49
6,542
2,544
284
38
2,866
278
(1)
277
7,429
3,614
(77)
10,966
Fabric and Home Care, beginning of year
Translation and other
End of year
Baby and Family Care, beginning of year
Translation and other
End of year
Beauty Care, beginning of year
Acquisitions
Translation and other
End of year
Health Care, beginning of year
Acquisitions
Translation and other
End of year
Snacks and Beverages, beginning of year
Translation and other
End of year
Goodwill, Net, beginning of year
Acquisitions
Translation and other
End of year
2003
$451
9
460
830
54
884
6,542
–
58
6,600
2,866
–
42
2,908
277
3
280
10,966
–
166
11,132
$48
160
173
381
169
550
Intangible Assets with
Determinable Lives
Trademarks
Patents and technology
Other
Trademarks with
Indefinite Lives
$457
494
385
1,336
1,678
3,014
$85
204
140
429
169
598
$499
492
316
1,307
1,666
2,973
June 30, 2003 June 30, 2002
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization 2002
$1,658
771
245
2,656
5,330
$1,158
344
586
2,088
Accrued and Other Current Liabilities
Marketing and promotion
Compensation expenses
Restructuring reserves
Other
Other Non-Current Liabilities
Pension benefits
Other postretirement benefits
Other
2003
$1,802
804
335
2,571
5,512
$1,301
181
809
2,291
June 30
(1) Amortization of goodwill and indefinite-lived intangible assets.
Pro forma results 2001
$2,922
218
3,140
$2.15
0.15
2.30
2.07
0.15
2.22
Net earnings
Amortization, net of tax (1)
Adjusted net earnings
Basic net earnings per common share
Amortization, net of tax (1)
Adjusted basic net earnings per common share
Diluted net earnings per common share
Amortization, net of tax (1)
Adjusted diluted net earnings per common share