Proctor and Gamble 2016 Annual Report Download - page 58

44 The Procter & Gamble Company
Amounts in millions of dollars except per share amounts or as otherwise specified.
service periods. Severance costs related to voluntary
separations are generally charged to earnings when the
employee accepts the offer. Since its inception, the
restructuring program has incurred separation charges related
to approximately 17,070 employees, of which approximately
9,540 are non-manufacturing overhead personnel.
Asset-Related Costs
Asset-related costs consist of both asset write-downs and
accelerated depreciation. Asset write-downs relate to the
establishment of a new fair value basis for assets held-for-sale
or disposal. These assets were written down to the lower of
their current carrying basis or amounts expected to be realized
upon disposal, less minor disposal costs. Charges for
accelerated depreciation relate to long-lived assets that will be
taken out of service prior to the end of their normal service
period. These assets relate primarily to manufacturing
consolidations and technology standardizations. The asset-
related charges will not have a significant impact on future
depreciation charges.
Other Costs
Other restructuring-type charges are incurred as a direct result
of the restructuring program. Such charges primarily include
employee relocation related to separations and office
consolidations, termination of contracts related to supply chain
redesign and the cost to change internal systems and processes
to support the underlying organizational changes.
Consistent with our historical policies for ongoing
restructuring-type activities, the restructuring program charges
are funded by and included within Corporate for both
management and segment reporting. Accordingly, all of the
charges under the program are included within the Corporate
reportable segment. However, for informative purposes, the
following table summarizes the total restructuring costs related
to our reportable segments:
Years ended June 30 2016 2015
Beauty $72 $63
Grooming 42 57
Health Care 26 32
Fabric & Home Care 250 197
Baby, Feminine & Family Care 225 192
Corporate
(1)
362 527
Total Company $ 977 $1,068
(1)
Corporate includes costs related to allocated overheads,
including charges related to our Sales and Market Operations,
Global Business Services and Corporate Functions activities and
costs related to discontinued operations from our Batteries and
Beauty Brands businesses.
NOTE 4
GOODWILL AND INTANGIBLE ASSETS
The change in the net carrying amount of goodwill by reportable segment was as follows:
Beauty Grooming
Health
Care
Fabric &
Home
Care
Baby,
Feminine
& Family
Care Corporate
Total
Company
GOODWILL at JUNE 30, 2014 - Gross $ 14,065 $ 22,097 $ 6,280 $ 1,981 $ 4,910 $ 2,554 $ 51,887
Accumulated impairment losses at June 30, 2014 — (1,158)—— ——
(1,158)
GOODWILL at JUNE 30, 2014 - Net 14,065 20,939 6,280 1,981 4,910 2,554 50,729
Acquisitions and divestitures (136) — (6)(3)—
(449)(594)
Goodwill impairment charges — — — — — (2,064)(2,064)
Translation and other (1,225) (1,320)(398)(104)(361)(41)(3,449)
GOODWILL at JUNE 30, 2015 - Gross
(1)
12,704 20,777 5,876 1,874 4,549 2,064 47,844
Accumulated impairment losses at June 30, 2015
(1)
—(1,158)— — —
(2,064)(3,222)
GOODWILL at JUNE 30, 2015 - Net 12,704 19,619 5,876 1,874 4,549 — 44,622
Acquisitions and divestitures (2) — (2)— — — (4)
Translation and other (57) (142)(34)(18)(17)—
(268)
GOODWILL at JUNE 30, 2016 - Gross 12,645 20,635 5,840 1,856 4,532 — 45,508
Accumulated impairment losses at June 30, 2016 —(1,158)—— ——
(1,158)
GOODWILL at JUNE 30, 2016 - Net $ 12,645 $ 19,477 $ 5,840 $ 1,856 $ 4,532 $ — $ 44,350
(1)
Balances in Corporate segment reflect the gross value of the Batteries goodwill and the corresponding impairment charges recorded against
the business to reflect the value of BH's shares in P&G stock as of June 30, 2015. The Batteries business was divested in February 2016.