Estee Lauder 2014 Annual Report Download - page 84

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82 THE EST{E LAUDER COMPANIES INC.
The cost of assets related to projects in progress of $229.9
million and $178.7 million as of June 30, 2014 and 2013,
respectively, is included in their respective asset catego-
ries above. Depreciation and amortization of property,
plant and equipment was $378.1 million, $329.8 million
and $286.9 million in fiscal 2014, 2013 and 2012, respec-
tively. 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.
NOTE 4
—
PROPERTY, PLANT AND EQUIPMENT
JUNE 30 2014 2013
(In millions)
Asset (Useful Life)
Land $ 15.4 $ 14.7
Buildings and improvements
(10 to 40 years) 205.0 195.4
Machinery and equipment
(3 to 10 years) 673.9 647.9
Computer hardware and software
(4 to 10 years) 994.8 948.4
Furniture and fixtures
(5 to 10 years) 75.1 71.6
Leasehold improvements 1,565.7 1,349.6
3,529.9 3,227.6
Less accumulated depreciation
and amortization 2,027.3 1,876.9
$1,502.6 $1,350.7
20142014
$ 15.4$ 15.4
205.0205.0
673.9673.9
994.8994.8
75.175.1
1,565.71,565.7
3,529.93,529.9
2,027.32,027.3
$1,502.6$1,502.6
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, 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
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
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