Goodwill and Other Intangible Assets

12 Months Ended

Dec. 30, 2022

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 30, 2022		December 31, 2021
Goodwill	$	422.9	$	423.7
Indefinite-lived intangible assets:
Trademarks	31.7		31.7
Definite-lived intangible assets:
Definite-lived intangible assets	150.4		150.4
Accumulated amortization	(47.1)		(39.3)
Definite-lived intangible assets, net	103.3		111.1
Goodwill and other intangible assets, net	$	557.9	$	566.5

6. Goodwill and Other Intangible Assets (continued)

Indefinite-lived and definite-lived intangible assets are included in intangible assets, net, in the Consolidated Balance Sheets. Our definite-lived intangible assets primarily consist of customer relationships, trade names and trademarks.

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


	Bananas		Fresh and Value-Added Products		Totals




Balance at January 1, 2021	$	64.5	$	359.5	$	424.0
Foreign exchange	(0.2)		(0.1)		(0.3)
Balance at December 31, 2021	$	64.3	$	359.4	$	423.7
Foreign exchange	(0.2)		(0.6)		(0.8)
Balance at December 30, 2022	$	64.1	$	358.8	$	422.9

In the table above, goodwill is presented net of accumulated impairment losses of $88.1 million, relating strictly to the fresh and value-added products segment. There were no impairment charges recorded to goodwill during 2022, 2021, or 2020.

Results of Impairment Tests

We review goodwill for impairment on an annual basis or earlier if indicators of impairment arise. We performed our fourth quarter 2022 annual goodwill impairment test using a quantitative assessment for all reporting units, and specifically an income approach valuation methodology. The results of our impairment test resulted in the fair value of each reporting unit exceeding its respective carrying amount as of the assessment date.

We also evaluated both Del Monte® trade names and trademarks related to our prepared food reporting unit for impairment as of the first day of our fourth quarter of 2022 using the royalty savings method, an income approach valuation methodology. The royalty savings method estimated the fair value of the intangible assets by capitalizing the royalties saved. Both Del Monte® trade names and trademarks had fair values that exceeded their carrying amounts.

The fair value of the banana reporting unit's goodwill, prepared reporting unit's goodwill and the Del Monte® prepared food reporting unit’s trade names and trademarks are 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 related goodwill and the Del Monte® trade names and trademarks associated with the prepared food reporting unit may be at risk for impairment in the future.

The following table highlights the sensitivities of the indefinite-lived intangibles as of December 30, 2022 (U.S. dollars in millions):


	Banana Reporting Unit Goodwill			Prepared Food Reporting Unit Goodwill			Prepared Food Reporting Unit Del Monte® Trade Names and Trademarks
Carrying value of indefinite-lived intangible assets	$	64.1		$	48.8		$	30.8

Approximate percentage by which the fair value exceeds the carrying value based on the annual impairment test	11.4		%	11.7		%	15.9		%

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	$	58.5		$	26.3		$	—

6. Goodwill and Other Intangible Assets (continued)

In addition, certain definite-lived intangible assets related to our fresh and value-added products segment are sensitive to changes in estimated cash flows. We review long-lived assets (or asset groups) with identifiable cash flows for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. To the extent that future developments result in estimated cash flows that are less than currently estimated levels, it could lead to impairment of these assets.

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
2023	$	6.9
2024	6.5
2025	6.4
2026	6.4
2027	6.3