Goodwill and Other Intangible Assets

12 Months Ended

Dec. 29, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

The following table reflects our indefinite-lived intangible assets, including goodwill and our definite-lived intangible assets along with related accumulated amortization by major category (U.S. dollars in millions):



	December 29, 2017			December 30, 2016
Goodwill	$	261.9		$	260.9
Indefinite-lived intangible assets:
Trademarks	43.3			44.0
Definite-lived intangible assets:
Definite-lived intangible assets	10.7			10.7
Accumulated amortization	(8.1		)	(7.3		)
Definite-lived intangible assets, net	2.6			3.4
Goodwill and other intangible assets, net	$	307.8		$	308.3

Indefinite-lived and definite-lived intangible assets are included in other noncurrent assets in the Consolidated Balance Sheets.

7. Goodwill and Other Intangible Assets (continued)

The following table reflects the changes in the carrying amount of goodwill by business segment (U.S. dollars in millions):



	Bananas			Other fresh produce			Prepared food			Totals
Goodwill	$	64.6		$	284.6		$	78.3		$	427.5
Accumulated impairment losses	—			(88.1		)	(75.7		)	(163.8		)
Balance at January 1, 2016	$	64.6		$	196.5		$	2.6		$	263.7

Acquisition of blueberry farm	—			0.8			—			0.8
Poultry goodwill impairment							$	(2.6	)	$	(2.6	)
Foreign exchange and other	(0.4		)	(0.6		)	—			(1		)

Goodwill	$	64.2		$	284.8		$	78.3		$	427.3
Accumulated impairment losses	—			(88.1		)	(78.3		)	(166.4		)
Balance at December 30, 2016	$	64.2		$	196.7		$	—		$	260.9

Foreign exchange and other	0.5			0.5			—			1.0

Goodwill	$	64.7		$	285.3		$	—		$	350.0
Accumulated impairment losses	—			(88.1		)	—			(88.1		)
Balance at December 29, 2017	$	64.7		$	197.2		$	—		$	261.9

⁽¹⁾See Note 6, "Property, Plant and Equipment, Net" for further discussion on acquisitions.

7. Goodwill and Other Intangible Assets (continued)

Results of Impairment Tests

In accordance with the ASC guidance on “Goodwill and Other Intangible Assets,” we review goodwill for impairment on an annual basis or earlier if indicators of impairment arise.

During 2017, based on the annual impairment review of trade names and trademarks performed on the first day of our fourth quarter and due to the underperformance of our prepared ambient juice business in the United Kingdom, we incurred an impairment of our trade name and trademark of approximately $0.9 million included in asset impairment and other charges, net in our Consolidated Statements of Income.

During 2016, we incurred $2.6 million in goodwill impairment representing 100% of the goodwill associated with the poultry business in Jordan in the prepared food segment. This impairment was principally due to underperformance.

Based on the annual impairment review of goodwill performed as of the first day of our fourth quarter in 2015 and due to the failure of the tomato and vegetable business in North America to meet our expectations, we wrote-off $66.1 million of goodwill, which was related to the 2003 tomato and vegetable business acquisition. We determined that there was no remaining implied fair value of goodwill for the tomato and vegetable business utilizing the discounted cash flow method, an income approach valuation method, which indicates the fair value of a business based on the cash flows that the business can be expected to generate. The implied fair value of goodwill, if any, is determined by comparing the value of the business using the discounted cash flow method to the fair value of the net assets of that business.

The fair value of the banana reporting unit's goodwill and the prepared food unit’s trade names and trademarks are highly sensitive to differences between estimated and actual cash flows and changes in the related discount rate used to evaluate the fair value of these assets. If the banana and the prepared food reporting unit do not perform to expected levels, the banana goodwill and the trade names and trademarks associated with the prepared reporting unit may also be at risk for impairment in the future.

The following table highlights the sensitivities of the indefinite-lived intangibles at risk as of December 29, 2017 (U.S. dollars in millions):



	Banana Reporting Unit Goodwill			Prepared Reporting Unit Trade Names and Trademarks
Carrying value of indefinite-lived intangible assets	$	64.7		$	43.3

Approximate percentage by which the fair value exceeds the carrying value based on the annual impairment test as of first day of the fourth quarter	23.0		%	2.0		%

Amount that a one percentage point increase in the discount rate and a 5% decrease in cash flows would cause the carrying value to exceed the fair value and trigger an impairment	$	19.7		$	4.3

7. Goodwill and Other Intangible Assets (continued)

The estimated amortization expense related to definite-lived intangible assets for the five succeeding years is as follows (U.S. dollars in millions):



Year	Estimated amortization expense
2018	0.4
2019	0.1
2020	0.1
2021	0.1
2022	0.1

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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