NOTE 7. GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS
Changes in the carrying amount of goodwill, trademarks and other intangible assets for the fiscal years ended June 30, 2013 and 2012, were as follows:
| Goodwill | |||||||||||||||||
| Cleaning | Lifestyle | Household | International | Total | |||||||||||||
| Balance June 30, 2011 | $ | 275 | $ | 235 | $ | 85 | $ | 475 | $ | 1,070 | |||||||
| Acquisitions | 48 | 8 | - | - | 56 | ||||||||||||
| Translation adjustments and other | - | 1 | - | (15 | ) | (14 | ) | ||||||||||
| Balance June 30, 2012 | $ | 323 | $ | 244 | $ | 85 | $ | 460 | $ | 1,112 | |||||||
| Translation adjustments and other | - | - | - | (7 | ) | (7 | ) | ||||||||||
| Balance June 30, 2013 | $ | 323 | $ | 244 | $ | 85 | $ | 453 | $ | 1,105 | |||||||
| Trademarks | Other intangible assets subject to amortization | ||||||||||||||||||||||
| Subject to amortization | Not subject to amortization | Total | Technology and Product formulae | Other | Total | ||||||||||||||||||
| Balance June 30, 2011 | $ | 23 | $ | 527 | $ | 550 | $ | 31 | $ | 52 | $ | 83 | |||||||||||
| Acquisitions | - | 10 | 10 | - | 18 | 18 | |||||||||||||||||
| Amortization | (3 | ) | - | (3 | ) | (8 | ) | (6 | ) | (14 | ) | ||||||||||||
| Translation adjustments and other | (1 | ) | - | (1 | ) | - | (1 | ) | (1 | ) | |||||||||||||
| Balance June 30, 2012 | 19 | 537 | 556 | 23 | 63 | 86 | |||||||||||||||||
| Amortization | (3 | ) | - | (3 | ) | (9 | ) | (6 | ) | (15 | ) | ||||||||||||
| Translation adjustments and other | - | - | - | 5 | (2 | ) | 3 | ||||||||||||||||
| Balance June 30, 2013 | $ | 16 | $ | 537 | $ | 553 | $ | 19 | $ | 55 | $ | 74 | |||||||||||
Intangible assets subject to amortization were net of total accumulated amortization of $275 and $257 as of June 30, 2013 and 2012, respectively, of which $21 and $18, respectively, related to trademarks. Total accumulated amortization included $136 and $131 as of June 30, 2013 and 2012, respectively, related to intangible assets subject to amortization that were fully amortized, of which $13 and $7, respectively, related to trademarks. Estimated amortization expense for these intangible assets is $16, $12, $7, $7 and $6 for fiscal years 2014, 2015, 2016, 2017 and 2018.
During the fourth quarter of fiscal year 2013 and 2012, the Company completed its annual impairment test of goodwill and indefinite-lived intangible assets and no instances of impairment were identified.
During fiscal year 2011, the Company identified challenges in increasing sales for the Burt's Bees business in certain international markets in accordance with projections. Additionally, during fiscal year 2011, the Company initiated its process for updating the three-year long-range financial and operating plan for the Burt's Bees business. In addition to slower than projected growth of international sales and challenges in the timing of certain international expansion plans, the domestic natural personal care category had not recovered in accordance with the Company's projections. Following a comprehensive reevaluation, the Company recognized a noncash goodwill impairment charge of $258 during fiscal year 2011, of which $164 and $94 was reflected in the Lifestyle and International reportable segments, respectively.
The impairment charge was a result of changes in the assumptions used to determine the fair value of the Burt's Bees business based on slower than forecasted category growth as well as challenges in international expansion plans, which adversely affected the original assumptions for international growth and the estimates of expenses necessary to achieve that growth. The revised assumptions reflected somewhat higher cost levels than previously projected. As a result of this assessment, the Company determined that the book value of the Burt's Bees reporting unit exceeded its fair value, resulting in a noncash goodwill impairment charge of $258 recognized in fiscal year 2011. The noncash goodwill impairment charge was based on the Company's estimates regarding the future financial performance of the Burt's Bees business and macroeconomic factors. There was no substantial tax benefit associated with this noncash charge.
To determine the fair value of the Burt's Bees reporting unit, the Company used a discounted cash flow (DCF) approach, as it believed this approach was the most reliable indicator of the fair value of the business. Under this approach, the Company estimated the future cash flows of the Burt's Bees reporting unit and discounted these cash flows at a rate of return that reflected its relative risk.
The Company's trademarks and indefinite-lived intangible assets for the Burt's Bees reporting unit were tested for impairment in fiscal year 2011, and the Company concluded that these assets were not impaired. No other instances of impairment were identified during fiscal year 2011.