Proctor and Gamble 2010 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2010 Proctor and Gamble annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 82

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82

58 The Procter & Gamble Company Notes to Consolidated Financial Statements
Amounts in millions of dollars except per share amounts or as otherwise specified.
NOTE 2
GOODWILL AND INTANGIBLE ASSETS
The change in the net carrying amount of goodwill by Global
Business Unit (GBU) was as follows:
2010 2009
BEAUTY & GROOMING GBU
Beauty, beginning of year $ 18,668 $ 19,662
Acquisitions and divestitures 18 66
Translation and other (1,111) (1,060)
GOODWILL, JUNE 30 17,575 18,668
Grooming, beginning of year 21,391 22,553
Acquisitions and divestitures (35) (214)
Translation and other (972) (948)
GOODWILL, JUNE 30 20,384 21,391
HEALTH & WELL-BEING GBU
Health Care, beginning of year 8,404 8,750
Acquisitions and divestitures (249) (81)
Translation and other (296) (265)
GOODWILL, JUNE 30 7,859 8,404
Snacks and Pet Care, beginning of year 2,055 2,434
Acquisitions and divestitures 154 (356)
Translation and other (6) (23)
GOODWILL, JUNE 30 2,203 2,055
HOUSEHOLD CARE GBU
Fabric Care and Home Care, beginning of year 4,408 4,655
Acquisitions and divestitures (6) (46)
Translation and other (154) (201)
GOODWILL, JUNE 30 4,248 4,408
Baby Care and Family Care, beginning of year 1,586 1,713
Acquisitions and divestitures (1) (7)
Translation and other (140) (120)
GOODWILL, JUNE 30 1,445 1,586
CORPORATE
Corporate, beginning of year — —
Acquisitions and divestitures 298 —
Translation and other ——
GOODWILL, JUNE 30 298 —
GOODWILL, beginning of year 56,512 59,767
Acquisitions and divestitures 179 (638)
Translation and other (2,679) (2,617)
GOODWILL, JUNE 30 54,012 56,512
The decrease in goodwill during fiscal 2010 was primarily due to
currency translation across all GBUs. Acquisitions and divestitures reflect
the acquisition of MDVIP, a physicians’ network focused on preventative
medicine, and Natura, a leading producer and distributor of branded
premium natural pet foods, partially offset by the divestiture of the
global pharmaceuticals business. The decrease in goodwill during
fiscal 2009 was primarily due to currency translation across all GBUs
and the divestiture of the Coffee business.
Identifiable intangible assets were comprised of:
2010 2009
June 30
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
INTANGIBLE ASSETS WITH
DETERMINABLE LIVES
Brands $ 3,284 $1,318 $ 3,580 $1,253
Patents and technology 3,140 1,575 3,168 1,332
Customer relationships 1,947 460 1,853 411
Other 304 205 320 210
TOTAL 8,675 3,558 8,921 3,206
BRANDS WITH
INDEFINITE LIVES 26,519 — 26,891 —
TOTAL 35,194 3,558 35,812 3,206
The amortization of intangible assets was as follows:
Years ended June 30 2010 2009 2008
Intangible Asset Amortization $601 $648 $649
Estimated amortization expense over the next five years is as follows:
Years ended June 30 2011 2012 2013 2014 2015
Estimated Amortization Expense $530 $490 $470 $434 $401
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 2010 2009
ACCRUED AND OTHER LIABILITIES — CURRENT
Marketing and promotion $ 2,857 $2,378
Compensation expenses 1,822 1,983
Taxes payable 622 722
Other 3,258 3,518
TOTAL 8,559 8,601
OTHER NONCURRENT LIABILITIES
Pension benefits $ 4,701 $3,798
Other postretirement benefits 1,915 1,516
Uncertain tax positions 2,381 2,705
Other 1,192 1,127
TOTAL 10,189 9,146