Notes to Consolidated Financial Statements 35 The Procter & Gamble Company and Subsidiaries 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. 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: 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. 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.  The change in the net carrying amount of goodwill for the year ended  June 30, 2002 is allocated by reportable business segment as follows: 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.  (1)  Amortization of goodwill and indefinite-lived intangible assets. Years Ended June 30 Pro forma results 2001 Net earnings Amortization, net of tax  (1) Adjusted net earnings Basic net earnings per common share Amortization, net of tax  (1) Adjusted basic net earnings per common share Diluted net earnings per common share Amortization, net of tax  (1) Adjusted diluted net earnings per common share $3,542 212 3,754 $2.61 0.16 2.77 2.47 0.15 2.62 $2,922 218 3,140 $2.15 0.15 2.30 2.07 0.15 2.22 2000 Fabric & Home Care,  beginning of year Translation & other End of year Baby, Feminine & Family Care,  beginning of year Translation & other End of year Beauty Care,  beginning of year Acquisitions Translation & other End of year Health Care,  beginning of year Acquisitions Translation & other End of year Food & Beverage,  beginning of year Translation & other End of year Goodwill, Net,  beginning of year Acquisitions Translation & other End of year 2002  $457 (6) 451  2,806  (163)  2,643  1,344  3,330 55  4,729  2,544 284 38  2,866 278 (1) 277  7,429  3,614 (77) 10,966 Intangible Assets with  Determinable Lives Trademarks Patents and technology Other Trademarks with  Indefinite Lives June 30, 2002 June 30, 2001 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization $27 78 186 291 169 460 $155 333 385 873 458 1,331 $457 494 385 1,336 1,678 3,014 $48 160 173 381 169 550 Spin-off Note 4 Goodwill and Intangible Assets Millions of dollars except per share amounts