Goodwill and Other Intangible Assets

12 Months Ended

Jun. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets [Text Block]

GOODWILL AND OTHER INTANGIBLE ASSETS

The Company performs its annual goodwill and indefinite-lived intangible assets impairment testing for all of its reporting units as of the beginning of the fourth quarter of the fiscal year. The current and prior year testing resulted in no impairment charges being recorded.

During fiscal 2012, there were additions to goodwill in the Consumer Healthcare and Rx Pharmaceuticals segments related to the acquisitions of CanAm and Paddock, respectively. Changes in the carrying amount of goodwill, by reportable segment, were as follows:



	Consumer Healthcare			Nutritionals		Rx Pharma- ceuticals			API			Total
Balance as of June 26, 2010	$	118,987		$	331,744	$	72,725		$	88,011		$	611,467
Currency translation adjustment	7,322			—		8,906			10,350			26,578
Balance as of June 25, 2011	126,309			331,744		81,631			98,361			638,045
Business acquisitions	15,040			—		148,865			—			163,905
Currency translation adjustment	(2,439		)	—		(9,727		)	(12,027		)	(24,193		)
Balance as of June 30, 2012	$	138,910		$	331,744	$	220,769		$	86,334		$	777,757

During fiscal 2011, goodwill related to the acquisitions of PBM and Orion increased $721 and decreased $104, respectively, for net adjustments made during the measurement period to the fair values of the assets acquired and liabilities assumed. In the table above, the retrospective adjustments for PBM and Orion are reflected in the goodwill balances of the Nutritionals and Consumer Healthcare segments, respectively, at June 26, 2010, in accordance with the accounting guidance for business combinations.

Other intangible assets and related accumulated amortization consisted of the following:



	June 30, 2012				June 25, 2011
	Gross		Accumulated Amortization		Gross		Accumulated Amortization
Amortizable intangibles:
Developed product technology/formulation and product rights	$	542,094	$	140,489	$	328,461	$	101,494
Customer relationships	341,363		50,757		331,081		32,029
Distribution and license agreements	52,609		23,686		52,790		19,844
Non-compete agreements	7,804		3,778		6,391		2,431
Trademarks	4,797		704		5,378		730
Total	948,667		219,414		724,101		156,528
Non-amortizable intangibles:
In-process research and development	35,000		—		—		—
Trade names and trademarks	7,365		—		6,857		—
Total other intangible assets	$	991,032	$	219,414	$	730,958	$	156,528

As of June 30, 2012, other intangible assets included additions made during fiscal 2012 that were attributable to the acquisitions of CanAm and Paddock, as discussed in Note 2. Certain intangible assets are denominated in currencies other than the U.S. dollar; therefore, their gross and net carrying values are subject to foreign currency movements.

The Company recorded a charge for amortization expense of $74,793, $46,778 and $25,127 for fiscal 2012, 2011 and 2010, respectively, for intangible assets subject to amortization. The increase in amortization expense in fiscal 2012 was due primarily to the incremental amortization expense incurred on the intangible assets acquired as part of the Paddock acquisition.

Estimated future amortization expense includes the additional amortization related to recently acquired intangible assets subject to amortization. The estimated amortization expense for each of the following five years is as follows:



Fiscal Year	Amount
2013	$	75,100
2014	75,000
2015	74,300
2016	72,200
2017	69,700

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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