Estee Lauder 2012 Annual Report Download - page 136

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134 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, 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
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
NOTE 4
—
PROPERTY, PLANT AND EQUIPMENT
JUNE 30 2012 2011
(In millions)
Asset (Useful Life)
Land $ 14.6 $ 15.0
Buildings and improvements
(10 to 40 years) 188.8 195.5
Machinery and equipment
(3 to 10 years) 647.1 654.9
Computer hardware and software
(4 to 10 years) 824.2 707.1
Furniture and fixtures
(5 to 10 years) 66.4 74.3
Leasehold improvements 1,227.3 1,215.3
2,968.4 2,862.1
Less accumulated depreciation
and amortization 1,736.6 1,719.0
$1,231.8 $1,143.1
The cost of assets related to projects in progress of
$231.6 million and $183.5 million as of June 30, 2012 and
2011, respectively, is included in their respective asset
categories above. Depreciation and amortization of
property, plant and equipment was $286.9 million, $283.5
million and $251.8 million in fiscal 2012, 2011 and 2010,
respectively. Depreciation and amortization related to
the Company’s manufacturing process is included in Cost
of sales and all other depreciation and amortization is
included in Selling, general and administrative expenses in
the accompanying consolidated statements of earnings.