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GOODWILL AND INTANGIBLE ASSETS
 12 Months Ended
Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
GOODWILL AND INTANGIBLE ASSETS
The change in the net carrying amount of goodwill by reportable segment was as follows:
BeautyGroomingHealth CareFabric & Home CareBaby, Feminine & Family CareCorporateTotal Company
BALANCE AT JUNE 30, 2018 - NET (1)
$12,992  $19,820  $5,929  $1,865  $4,569  $—  $45,175  
Acquisitions and divestitures132  —  2,084  6  57  —  2,279  
Goodwill impairment charges—  (6,783) —  —  —  —  (6,783) 
Translation and other(139) (156) (41) (16) (46) —  (398) 
BALANCE AT JUNE 30, 2019 - NET (1)
12,985  12,881  7,972  1,855  4,580  —  40,273  
Acquisitions and divestitures(1) —  (46) —  5  —  (42) 
Translation and other(82) (66) (140) (14) (28) —  (330) 
BALANCE AT JUNE 30, 2020 - NET (1)
$12,902  $12,815  $7,786  $1,841  $4,557  $—  $39,901  
(1) Grooming goodwill balance is net of $1.2 billion accumulated impairment losses as of June 30, 2018 and $7.9 billion as of June 30, 2019 and 2020.
Goodwill and indefinite-lived intangibles are tested for impairment at least annually by comparing the estimated fair values of our reporting units and underlying indefinite-lived intangible assets to their respective carrying values. We typically use an income method to estimate the fair value of these assets, which is based on forecasts of the expected future cash flows attributable to the respective assets. Significant estimates and assumptions inherent in the valuations reflect a consideration of other marketplace participants, and include the amount and timing of future cash flows (including expected growth rates and profitability). Estimates utilized in the projected cash flows include consideration of macroeconomic conditions, overall category growth rates, competitive activities, cost containment and margin expansion, Company business plans, the underlying product or technology life cycles, economic barriers to entry, a brand's relative market position and the discount rate applied to the cash flows. Unanticipated market or macroeconomic events and
circumstances may occur, which could affect the accuracy or validity of the estimates and assumptions.
We believe the estimates and assumptions utilized in our impairment testing are reasonable and are comparable to those that would be used by other marketplace participants. However, actual events and results could differ substantially from those used in our valuations. To the extent such factors result in a failure to achieve the level of projected cash flows initially used to estimate fair value for purposes of establishing or subsequently impairing the carrying amount of goodwill and related intangible assets, we may need to record additional non-cash impairment charges in the future.
The change in goodwill during fiscal 2020 primarily reflects opening balance sheet adjustments from the prior year acquisition of the over-the-counter (OTC) healthcare business of Merck KGaA (Merck OTC) in the Health Care reportable segment (see Note 14) and currency translation across all reportable segments.
During fiscal 2019, we determined that the estimated fair value of our Shave Care reporting unit was less than its carrying value. We also determined that the estimated fair value of the Gillette indefinite-lived intangible asset was less than its carrying value. As a result, we recorded non-cash impairment charges for both assets. These reductions were due in large part to significant currency devaluations in a number of countries relative to the U.S. dollar, a deceleration of category growth caused by changing grooming habits, primarily in the developed markets, and an increased competitive market environment in the U.S. and certain other markets, which collectively resulted in reduced cash flow projections. A non-cash, before and after-tax impairment charge of $6.8 billion was recognized to reduce the carrying amount of goodwill for the Shave Care reporting unit. Additionally, a non-cash, before-tax impairment charge of $1.6 billion ($1.2 billion after-tax) was recognized to reduce the carrying amount of the Gillette indefinite-lived intangible asset to its estimated fair value as of June 30, 2019.
During fiscal 2019, the Company completed the acquisition of the healthcare business of Merck OTC, which is included in the Health Care reportable segment (see Note 14), along with other minor acquisitions in the Beauty, the Baby, Feminine & Family Care and the Fabric & Home Care reportable segments. These goodwill increases were partially offset by the divestiture of the Teva portion of the PGT business in the Health Care reportable segment and currency translation in fiscal 2019.
Identifiable intangible assets were comprised of:
20202019
As of June 30Gross
Carrying
Amount		Accumulated
Amortization		Gross
Carrying
Amount		Accumulated
Amortization
INTANGIBLE ASSETS WITH DETERMINABLE LIVES
Brands$3,820  $(2,347) $3,836  $(2,160) 
Patents and technology2,776  (2,513) 2,776  (2,434) 
Customer relationships1,752  (778) 1,787  (691) 
Other143  (92) 145  (91) 
TOTAL$8,491  $(5,730) $8,544  $(5,376) 
INTANGIBLE ASSETS WITH INDEFINITE LIVES
Brands21,031  —  21,047  —  
TOTAL$29,522  $(5,730) $29,591  $(5,376) 
Amortization expense of intangible assets was as follows:
Years ended June 30202020192018
Intangible asset amortization$360  $349  $302  

Estimated amortization expense over the next five fiscal years is as follows:
Years ending June 3020212022202320242025
Estimated amortization expense$310  $291  $280  $268  $250