Proctor and Gamble 2009 Annual Report Download - page 59

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Notes to Consolidated Financial Statements The Procter & Gamble Company 57
Amounts in millions of dollars except per share amounts or as otherwise specified.
Identifiable intangible assets were comprised of:
2009 2008
June 30
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
INTANGIBLE ASSETS WITH
DETERMINABLE LIVES
Brands $3,580 $1,253 $3,564 $1,032
Patents and technology 3,168 1,332 3,188 1,077
Customer relationships 1,853 411 1,947 353
Other 320 210 333 209
TOTAL 8,921 3,206 9,032 2,671
BRANDS WITH INDEFINITE
LIVES 26,891
—
27,872
—
TOTAL 35,812 3,206 36,904 2,671
The amortization of intangible assets for the years ended June30,
2009, 2008 and 2007 was $648, $649 and $640, respectively.
Estimated amortization expense over the next five years is as follows:
2010
—
$570; 2011
—
$523; 2012
—
$489; 2013
—
$462; and
2014
—
$429. Such estimates do not reflect the impact of future
foreign exchange rate changes.
NOTE 3
SUPPLEMENTAL FINANCIAL INFORMATION
Selected components of current and noncurrent liabilities were as
follows:
June 30 2009 2008
ACCRUED AND OTHER LIABILITIES
—
CURRENT
Marketing and promotion $2,378 $2,760
Compensation expenses 1,464 1,527
Accrued Gillette exit costs 111 257
Taxes payable 722 945
Other 3,926 5,610
TOTAL 8,601 11,099
OTHER NONCURRENT LIABILITIES
Pension benefits $3,798 $3,146
Other postretirement benefits 1,516 512
Unrecognized tax benefits 2,705 3,075
Other 1,410 1,421
TOTAL 9,429 8,154
Gillette Acquisition
On October1,2005, we completed our acquisition of The Gillette
Company (Gillette) for total consideration of $53.4billion including
common stock, the fair value of vested stock options and acquisition
costs. In connection with this acquisition, we recognized an assumed
liability for Gillette exit costs of $1.2billion, including $854 in separation
costs related to approximately 5,500 people, $55 in employee relocation
costs and $320 in other exit costs. These costs are primarily related to
the elimination of selling, general and administrative overlap between
the two companies in areas like Global Business Services, corporate
staff and go-to-market support, as well as redundant manufacturing
capacity. These activities are substantially complete as of June30, 2009.
Total integration plan charges against the assumed liability were
$51, $286 and $438 for the years ended June2009, 2008 and 2007,
respectively. A total of $106 and $121 of the liability was reversed
during the years ended June2009 and 2008, respectively, related to
underspending on a number of projects that were concluded during the
period, which resulted in a reduction of goodwill during those years.
NOTE 4
SHORT-TERM AND LONG-TERM DEBT
June 30 2009 2008
DEBT DUE WITHIN ONE YEAR
Current portion of long-term debt $6,941 $1,746
Commercial paper 5,027 9,748
Floating rate notes 4,250 1,500
Other 102 90
TOTAL 16,320 13,084
The weighted average short-term interest rates were 2.0% and 2.7%
as of June30,2009 and 2008, respectively, including the effects of
interest rate swaps discussed in Note 5.