Proctor and Gamble 2014 Annual Report Download - page 56

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54 The Procter & Gamble Company
Amounts in millions of dollars except per share amounts or as otherwise specified.
indefinite-lived assets 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
In May 2014, the FASB issued ASU 2014-09, “Revenue
from Contracts with Customers (Topic 606).” This guidance
outlines a single, comprehensive model for accounting for
revenue from contracts with customers. We will adopt the
standard on July 1, 2017. We are evaluating the impact, if
any, that the standard will have on our financial statements.
No other new accounting pronouncement issued or effective
during the fiscal year had or is expected to have a material
impact on the Consolidated Financial Statements.
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,
Feminine
and Family
Care Corporate
Total
Company
GOODWILL at JUNE 30, 2012 - Gross $ 16,860 $ 21,579 $ 6,115 $ 4,424 $ 3,684 $ 2,441 $ 55,103
Accumulated impairment losses at June 30, 2012 (431) (899)— — — —
(1,330)
GOODWILL at JUNE 30, 2012 - Net 16,429 20,680 6,115 4,424 3,684 2,441 53,773
Acquisitions and divestitures (21) (40)— (14) 1,090 — 1,015
Goodwill impairment charges — (259)— — — —(259)
Translation and other 255 236 70 43 54 1 659
GOODWILL at JUNE 30, 2013 - Gross 17,094 21,775 6,185 4,453 4,828 2,442 56,777
Accumulated impairment losses at June 30, 2013 (431) (1,158)— — — —
(1,589)
GOODWILL at JUNE 30, 2013 - Net 16,663 20,617 6,185 4,453 4,828 2,442 55,188
Acquisitions and divestitures — —— (3)—
(2,445)(2,448)
Translation and other 377 322 95 85 82 3 964
GOODWILL at JUNE 30, 2014 - Gross 17,471 22,097 6,280 4,535 4,910 — 55,293
Accumulated impairment losses at June 30, 2014 (431) (1,158)— — — —
(1,589)
GOODWILL at JUNE 30, 2014 - Net 17,040 20,939 6,280 4,535 4,910 — 53,704