Proctor and Gamble 2006 Annual Report Download - page 53

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Millions of dollars except per share amounts or otherwise specified.
Notes to Consolidated Financial Statements The Procter &Gamble Company and Subsidiaries 51
NOTE 3
GOODWILL AND INTANGIBLE ASSETS
The change in the net carrying amount of goodwill for the years
ended June 30, 2006 and 2005 by business was as follows:
2006 2005
BEAUTY,beginning of year $14,580 $14,457
Acquisitions 2,807 70
Translation and other 483 53
End of year 17,870 14,580
HEALTH CARE,beginning of year 1,683 1,621
Acquisitions and divestitures 4,318 61
Translation and other 89 1
End of year 6,090 1,683
TOTAL BEAUTY AND HEALTH,beginning of year 16,263 16,078
Acquisitions and divestitures 7,125 131
Translation and other 572 54
End of year 23,960 16,263
FABRIC CARE AND HOME CARE,beginning of year 644 614
Acquisitions 1,180 28
Translation and other 26 2
End of year 1,850 644
BABY CARE AND FAMILY CARE,beginning of year 955 941
Acquisitions 672 1
Translation and other (64) 13
End of year 1,563 955
PET HEALTH, SNACKS AND COFFEE,beginning of year 1,954 1,977
Acquisitions and divestitures 437 (26)
Translation and other 53
End of year 2,396 1,954
TOTAL HOUSEHOLD CARE,beginning of year 3,553 3,532
Acquisitions and divestitures 2,289 3
Translation and other (33) 18
End of year 5,809 3,553
BLADES AND RAZORS,beginning of year ——
Acquisitions 21,174 —
Translation and other 365 —
End of year 21,539 —
DURACELL AND BRAUN,beginning of year ——
Acquisitions 3,930 —
Translation and other 68 —
End of year 3,998 —
TOTAL GILLETTE GBU,beginning of year ——
Acquisitions 25,104 —
Translation and other 433 —
End of year 25,537 —
GOODWILL, NET,beginning of year 19,816 19,610
Acquisitions and divestitures 34,518 134
Translation and other 972 72
End of year 55,306 19,816
Current year acquisitions and divestitures primarily reflect the Gillette
acquisition. Gillette goodwill has been preliminarily allocated primarily
to the segments comprising the Gillette businesses (Blades and Razors,
Duracell and Braun, Health Care and Beauty). A portion of the Gillette
goodwill has also been preliminarily allocated to the other segments
on the basis that certain cost synergies will benefit these businesses.
Identifiable intangible assets as of June 30, 2006 and 2005 were
comprised of:
2006 2005
Gross Gross
Carrying Accumulated Carrying Accumulated
June 30 Amount Amortization Amount Amortization
INTANGIBLE ASSETS
WITH DETERMINABLE
LIVES
Brands $ 3,135 $ 540 $1,144 $239
Patents and technology 3,098 425 419 236
Customer relationships 1,695 135 259 66
Other 333 183 293 169
8,261 1,283 2,115 710
BRANDS WITH
INDEFINITE LIVES 26,743 — 2,942 —
35,004 1,283 5,057 710
The amortization of intangible assets for the years ended June 30, 2006,
2005 and 2004 was $587, $198 and $165, respectively. Estimated
amortization expense over the next five years is as follows: 2007– $647;
2008–$618; 2009–$588; 2010 –$559 and 2011– $507. Such estimates
do not reflect the impact of future foreign exchange rate changes.
NOTE 4
SUPPLEMENTAL FINANCIAL INFORMATION
Selected components of current and noncurrent liabilities were as
follows:
June 30 2006 2005
ACCRUED AND OTHER CURRENT LIABILITIES
Marketing and promotion $2,357 $1,912
Liability under Wella Domination Agreement 207 1,087
Compensation expenses 1,471 1,045
Accrued Gillette exit costs 929 —
Other 4,623 3,487
9,587 7,531
OTHER NONCURRENT LIABILITIES
Pension benefits $2,550 $2,096
Other postretirement benefits 374 149
Other 1,548 985
4,472 3,230