Proctor and Gamble 2013 Annual Report Download - page 57

The Procter & Gamble Company 55
Amounts in millions of dollars except per share amounts or as otherwise specified.
indefinite-lived brands may be adjusted to a determinable
life.
The cost of intangible assets with determinable useful lives
is amortized to reflect the pattern of economic benefits
consumed, either on a straight-line or accelerated basis over
the estimated periods benefited. Patents, technology and
other intangible assets with contractual terms are generally
amortized over their respective legal or contractual lives.
Customer relationships, brands and other non-contractual
intangible assets with determinable lives are amortized over
periods generally ranging from 5 to 30 years. When certain
events or changes in operating conditions occur, an
impairment assessment is performed and remaining lives of
intangible assets with determinable lives may be adjusted.
Fair Values of Financial Instruments
Certain financial instruments are required to be recorded at
fair value. Changes in assumptions or estimation methods
could affect the fair value estimates; however, we do not
believe any such changes would have a material impact on
our financial condition, results of operations or cash flows.
Other financial instruments, including cash equivalents,
other investments and short-term debt, are recorded at cost,
which approximates fair value. The fair values of long-term
debt and financial instruments are disclosed in Note 5.
New Accounting Pronouncements and Policies
Other than as described below, no new accounting
pronouncement issued or effective during the fiscal year had
or is expected to have a material impact on the Consolidated
Financial Statements.
During fiscal 2013, the Company adopted ASU 2011-05,
"Comprehensive Income (Topic 220) - Presentation of
Comprehensive Income", and ASU 2013-02,
“Comprehensive Income (Topic 220) - Reporting of
Amounts Reclassified out of Accumulated Other
Comprehensive Income”. This guidance eliminates the
option to present the components of OCI as part of the
statement of shareholders' equity and requires entities to
present the components of net earnings and OCI in either a
single continuous statement of comprehensive income or
two separate but consecutive statements. We chose to
present net earnings and OCI in two separate but consecutive
statements. This guidance also requires entities to provide
information about the amounts reclassified out of
accumulated other comprehensive income (AOCI) by
component and to present, either on the face of the statement
where net income is presented or in the notes, significant
amounts reclassified out of AOCI by the respective line
items of net income. We chose to present the requirements
in the notes to the financial statements (see Note 6). The
adoption of this guidance had no impact on our consolidated
financial position, results of operations or cash flows.
NOTE 2
GOODWILL AND INTANGIBLE ASSETS
The change in the net carrying amount of goodwill by reportable segment was as follows:
Beauty Grooming
Health
Care
Fabric Care
and Home
Care
Baby Care
and Family
Care Corporate
Total
Company
GOODWILL at JUNE 30, 2011 - Gross $ 18,039 $ 22,650 $ 8,179 $ 6,735 $ 1,553 $ 406 $ 57,562
Accumulated impairment losses at June 30, 2011 — — — — — — —
GOODWILL at JUNE 30, 2011 - Net 18,039 22,650 8,179 6,735 1,553 406 57,562
Acquisitions and divestitures (3) (12) 474 34 — (92) 401
Goodwill impairment charges (431) (899)— — — —
(1,330)
Translation and other (1,176) (1,059)(314)(212)(94)(5)(2,860)
GOODWILL at JUNE 30, 2012 - Gross 16,860 21,579 8,339 6,557 1,459 309 55,103
Accumulated impairment losses at June 30, 2012 (431) (899)— — — —
(1,330)
GOODWILL at JUNE 30, 2012 - Net 16,429 20,680 8,339 6,557 1,459 309 53,773
Acquisitions and divestitures (21) (40) 624 (11) 463 — 1,015
Goodwill impairment charges —(259)— — — —(259)
Translation and other 255 236 96 40 32 — 659
GOODWILL at JUNE 30, 2013 - Gross 17,094 21,775 9,059 6,586 1,954 309 56,777
Accumulated impairment losses at June 30, 2013 (431) (1,158)— — — —
(1,589)
GOODWILL at JUNE 30, 2013 - Net 16,663 20,617 9,059 6,586 1,954 309 55,188