content_image/116828.jpg content_image/116829.jpg content_image/116827.jpg
During 2002, the Company completed a buyout of the purchase price contingency associated with the prior acquisition of Dr. John’s Spin- brush. The total adjusted purchase price is approximately $475, with the incremental payment resulting in additional goodwill. 

In 2001, acquisitions totaled $246 resulting in additions to goodwill and other intangibles of $208. In 2000, acquisitions consisted of The Iams Company and Affiliates, Recovery Engineering, Inc. and a joint venture ownership increase in China. These acquisitions totaled $2,967, resulting in additions to goodwill and other intangibles of $2,508. 

## Spin-off 

On May 31, 2002, the Jif peanut butter and Crisco shortening brands were spun off to the Company’s shareholders, and subsequently merged into The J.M. Smucker Company (Smucker). The Company’s shareholders received one new common Smucker share for every 50 shares held in the Company, totaling 26 million shares, or approximately $900 in market value. This transaction was not included in the results of operations, since a spin-off to the Company’s shareholders is recorded at net book value, or $150, in a manner similar to dividends. 

## Note 4 Goodwill and Intangible Assets 

The change in the net carrying amount of goodwill for the year ended June 30, 2002 is allocated by reportable business segment as follows: 

<img src='content_image/116828.jpg'>

Goodwill increased in beauty care primarily due to the Clairol acquisition. The increase in goodwill in health care related to the buyout of the purchase price contingency for Dr. John’s Spinbrush. 

Identifiable intangible assets as of June 30, 2002 and 2001 are comprised of: 

<img src='content_image/116829.jpg'>

The amortization of intangible assets for the years ended June 30, 2002, 2001 and 2000 was $97, $80 and $77, respectively. Estimated amortization expense over the next five years is as follows: 2003–$85, 2004–$85, 2005–$80, 2006–$80 and 2007–$50. Such estimates do not reflect the impact of future foreign exchange rate changes. 

The following table provides pro forma disclosure of net earnings and earnings per common share for the years ended June 30, 2001 and 2000, as if goodwill and indefinite-lived intangible assets had not been amortized. 

<img src='content_image/116827.jpg'>

(1) Amortization of goodwill and indefinite-lived intangible assets. 

Millions of dollars except per share amounts 

