Goodwill and Other Intangible Assets

12 Months Ended

Dec. 30, 2011

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, 2011			December 31, 2010
Goodwill	$	402.3		$	406.4
Indefinite-lived intangible assets:
Trademarks	68.4			68.7
Definite-lived intangible assets:
Definite-lived intangible assets	12.7			12.7
Accumulated amortization	(6.5		)	(5.3		)
Definite-lived intangible assets, net	6.2			7.4
Goodwill and other intangible assets, net	$	476.9		$	482.5

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

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	$	65.4		$	285.0		$	77.3		$	427.7
Accumulated impairment losses	—			(18.7		)	—			(18.7		)
Balance at January 1, 2010	65.4			266.3			77.3			409.0

Foreign exchange and other	(0.1		)	(0.2		)	(2.3		)	(2.6		)

Goodwill	65.3			284.8			75.0			425.1
Accumulated impairment losses	$	—		$	(18.7	)	$	—		$	(18.7	)
Balance at December 31, 2010	65.3			266.1			75.0			406.4

Impairment of melon goodwill	—			(3.3		)	—			(3.3		)
Foreign exchange and other	(0.5		)	—			(0.3		)	(0.8		)

Goodwill	$	64.8		$	284.8		$	74.7		$	424.3
Accumulated impairment losses	—			(22.0		)	—			(22.0		)
Balance at December 30, 2011	$	64.8		$	262.8		$	74.7		$	402.3

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. Based on the valuation of goodwill performed as of the first day of our fourth quarter in 2011 and 2010, the fair value of goodwill exceeded its carrying value and thus there was no impairment recorded. As of December 30, 2011, we are not aware of any items or events that would cause a further adjustment to the carrying value of goodwill.

As a result of the decision to discontinue planting certain melon varieties in Central America during the second quarter of 2011, which significantly reduced melon volumes in the future, we recognized a write-down of the melon goodwill of $3.3 million.

As a result of lower than expected sales volume and pricing in the United Kingdom, we recorded an impairment charge of $1.4 million and $2.0 million during third quarter of 2010 and the first quarter of 2009, respectively, related to the DEL MONTE^® indefinite-lived perpetual, royalty-free brand name license for U.K. beverage products. Based on the valuation of the trademarks performed as of the first day of our fourth quarter, the fair value of the trademarks exceeded their carrying value and thus there was no impairment recorded. As of December 30, 2011, we are not aware of any items or events that would cause a further adjustment to the carrying value of the trademarks.

The fair value of the prepared food unit’s goodwill and trademarks and the banana reporting unit's goodwill 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.

The following table highlights the sensitivities of the goodwill and indefinite-lived intangibles at risk as of December 30, 2011 (U.S. dollars in millions):



				Prepared Food Reporting Unit
	Banana Reporting Unit Goodwill			Goodwill			U.K. Beverage Trademarks			Remaining DEL MONTE^® Trademarks
Carrying Value	$	64.8		$	72.2		$	4.8		$	63.6

Approximate percentage by which the fair value exceeds the carrying value based on annual impairment test as of 1st day of fourth quarter	4.0		%	11.0		%	1.5		%	20.0		%

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 a fair valuation	$	64.8		$	26.1		$	0.5		$	—		⁽¹⁾


(1)	As of December 30, 2011, applying the sensitivities disclosed above does not result in the carrying value exceeding the fair value; however, after applying those sensitivities, the fair value exceeds the carrying value by approximately 5%.

See Note 3, “Asset Impairment and Other Charges, Net” and Note 19, "Fair Value Measurements" for further discussion related to impairments of intangible assets occurring during 2011 and 2010.

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):



2012	$	0.8
2013	0.8
2014	0.8
2015	0.8
2016	0.8

- 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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