Goodwill and Other Intangible Assets - Goodwill as of December 31, 2011, is allocated by reportable segment as follows (amounts in millions):



	Beauty			Grooming			Health Care			Snacks and Pet Care			Fabric Care and Home Care			Baby Care and Family Care			Corporate		Total Company
GOODWILL at JUNE 30, 2011	$	18,039		$	22,650		$	8,179		$	2,243		$	4,589		$	1,553		$	309	$	57,562
Acquisitions and divestitures	(1		)	(4		)	417			—			(1		)	—			—		411
Goodwill Impairment charges	(433		)	(875		)	—			—			—			—			—		(1,308		)
Translation and other	(959		)	(877		)	(257		)	(14		)	(169		)	(82		)	—		(2,358		)
GOODWILL at DECEMBER 31, 2011	$	16,646		$	20,894		$	8,339		$	2,229		$	4,419		$	1,471		$	309	$	54,307

During the second quarter of fiscal 2012, we changed our annual goodwill impairment testing date from July 1 to October 1 of each year. This change was made to better align the timing of our annual impairment testing with the timing of the Company's annual strategic planning process. We believe this change is preferable because it allows us to more efficiently utilize the reporting units' long-term financial projections, which are generated from the annual strategic planning process, as the basis for performing our annual impairment testing. This change does not result in any delay, acceleration or avoidance of impairment, nor does this change result in adjustments to previously issued financial statements. This change was applied prospectively beginning on October 1, 2011; retrospective application to prior periods is impracticable as the Company is unable to objectively determine, without the use of hindsight, the assumptions that would have been used in those earlier periods. We also test our indefinite lived intangibles for impairment during the second fiscal quarter of each year, and accordingly performed this testing during the quarter ended December 31, 2011.

We tested goodwill for impairment as of July 1, 2011 (the testing date under our previous policy) and no impairments were indicated. Our goodwill impairment testing as of October 1, 2011 (the testing date under our new policy) determined that certain goodwill amounts were impaired. Specifically, the results of our annual impairment testing during the quarter ended December 31, 2011, indicated that the estimated fair values of our Appliances and Salon Professional reporting units were less than their respective carrying amounts. The test to evaluate goodwill for impairment is a two step process. In the first step, we compare the fair value of each reporting unit to its carrying value. If the fair value of any reporting unit is less than its carrying value, we perform a second step to determine the implied fair value of the reporting unit's goodwill. The second step of the impairment analysis requires a valuation of a reporting unit's tangible and intangible assets and liabilities in a manner similar to the allocation of purchase price in a business combination. If the resulting implied fair value of the reporting unit's goodwill is less than its carrying value, that difference represents an impairment. As a result of our impairment testing, we recorded an estimated noncash before and after tax impairment charge of $1,308 million to reduce the carrying amount of goodwill for these units to estimated fair value- $875 million related to Appliances and $433 million related to Salon Professional. Following the impairment charges, the carrying values of the goodwill of Appliances and Salon Professional were $638 million and $420 million, respectively.

Our impairment testing for indefinite lived intangible assets during the quarter ended December 31, 2011, also indicated a decline in the fair value of our Koleston Perfect and Wella trade name intangible assets below their respective carrying values. This resulted in a noncash before tax impairment charge of $246 million ($173 million after tax) to reduce the carrying amounts of these assets to their respective fair values. Following the impairment charges, the carrying values of the Koleston Perfect and Wella trade names were $308 million and $605 million, respectively.

To determine the fair value of our reporting units and indefinite lived intangibles, we use a discounted cash flow (DCF) approach, which we believe is the most reliable indicator of fair value of the business, and is most consistent with the approach a market-place participant would use. Under this approach, we estimate the future cash flows of the respective reporting units and indefinite lived intangible assets and discount those cash flows at a rate of return that reflects the relative risk of each business.

The declines in the fair value of the Appliances and Salon Professional reporting units and the underlying Koleston Perfect and Wella trade name intangibles were driven by a combination of similar competitive and economic factors, which are resulting in a reduction in the forecasted growth rates and cash flows used to estimate fair value. These factors include; (1) A more prolonged and deeper deterioration of the macroeconomic environment than was previously expected which, due to the more discretionary nature of the Appliances and Salon Professional businesses, is leading to a reduction in the overall market size in the short term and a more significant and prolonged reduction in the expected underlying market growth rates and resulting sales levels in the longer term. This is particularly evident in Europe, which is where we have historically generated a majority of the Appliances and Salon Professional sales. (2) Increasing competitive levels of innovation in Salon Professional is negatively impacting our current and nearer-term projected market share progress. (3) An increasing level of competitive pricing activities is negatively impacting pricing levels and lowering overall category profitability. As a result of these factors, we have recently reduced our current and longer-term sales and earnings forecasts for these businesses.

All of the impairment charges are included in Corporate for segment reporting. The second step of the goodwill impairment evaluations have not yet been finalized. Accordingly, the impairments recorded during the quarter ended December 31, 2011, are based on preliminary estimates. We expect to finalize these impairment evaluations during the quarter ended March 31, 2012. Any potential adjustments to the Company's preliminary estimates as a result of completing these evaluations, which could be significant, will be recorded in our consolidated financial statements when finalized.

The goodwill and intangible asset valuations are dependent on a number of significant estimates and assumptions, including macroeconomic conditions, overall category growth rates, competitive activities, cost containment and margin expansion, and Company business plans. We believe these estimates and assumptions are reasonable. However, actual events and results could differ substantially from those used in our valuation. To the extent such factors result in a failure to achieve the level of projected cash flows used in our valuations, we may need to record additional non cash impairment charges in the future.

In addition to the impairment charges, goodwill also decreased from June 30, 2011, due to currency translation across reportable segments and the divestiture of PUR, the water filtration brand, in our Health Care reportable segment. These decreases were partially offset by the establishment of goodwill related to the previously disclosed business combination with Teva Pharmaceuticals Industries in our Health Care reportable segment.

Identifiable intangible assets as of December 31, 2011, are comprised of (amounts in millions):



	Gross Carrying Amount		Accumulated Amortization
Amortizable intangible assets with determinable lives	$	8,836	$	4,351
Intangible assets with indefinite lives	26,840		—
Total identifiable intangible assets	$	35,676	$	4,351

Amortizable intangible assets consist principally of brands, patents, technology and customer relationships. The intangible assets with indefinite lives consist primarily of brands.

The amortization of intangible assets for the three months ended December 31, 2011 and 2010 was $123 million and $132 million, respectively. For the six months ended December 31, 2011 and 2010, the amortization of intangible assets was $251 million and $272 million, respectively.