Goodwill And Intangible Assets

12 Months Ended

Aug. 02, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The following table shows the changes in the carrying amount of goodwill by business segment:


	Meals & Beverages		Snacks		Total
Net balance at July 29, 2018	$	978	$	2,886	$	3,864
Changes in preliminary purchase price allocation⁽¹⁾	—		140		140
Acquisitions⁽¹⁾	—		21		21

Foreign currency translation adjustment	(1)		(7)		(8)
Net balance at July 28, 2019	$	977	$	3,040	$	4,017

Divestiture⁽²⁾	—		(34)		(34)

Foreign currency translation adjustment	(2)		5		3
Net balance at August 2, 2020	$	975	$	3,011	$	3,986

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⁽¹⁾See Note 4 for additional information.

⁽²⁾See Note 3 for additional information.

Intangible Assets

The following table sets forth balance sheet information for intangible assets, excluding goodwill, subject to amortization and intangible assets not subject to amortization:


	2020										2019
Intangible Assets	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Amortizable intangible assets
Customer relationships	$	851	$	(112)	$	739	$	855	$	(70)	$	785
Other	14		(14)		—		14		(13)		1
Total amortizable intangible assets	$	865	$	(126)	$	739	$	869	$	(83)	$	786
Non-amortizable intangible assets
Trademarks					2,611						2,629
Total net intangible assets					$	3,350					$	3,415

Non-amortizable intangible assets consist of trademarks. As of August 2, 2020, trademarks primarily included $1,978 associated with Snyder's-Lance. Of the carrying value of all indefinite-lived trademarks, $620 related to the Snyder’s of Hanover trademark, $292 related to the Pace trademark and $280 related to the Pacific Foods trademark. Other amortizable intangible assets consist of recipes and non-compete agreements.

Amortization of intangible assets in Earnings from continuing operations was $43 for 2020, $48 for 2019 and $20 for 2018. As of August 2, 2020, amortizable intangible assets had a weighted-average remaining useful life of 18.1 years. Amortization expense for the next 5 years is estimated to be approximately $42 per year.

Amortization of intangible assets in discontinued operations was $9 for 2019 and $14 for 2018. See Note 3 to the Consolidated Financial Statements for additional information on discontinued operations.

In the fourth quarter of 2019, we performed an assessment on the assets within the European chips business and recorded an impairment charge of $16 on customer relationships intangible assets. This business was included in the Snacks segment.

The impairment charge was recorded in Other expenses / (income) in the Consolidated Statements of Earnings.

We also recorded impairment charges on goodwill and intangible assets included in the 2019 Noncurrent assets of discontinued operations. See Note 3 for additional information.

The estimates of future cash flows used in determining the fair value of goodwill and intangible assets involve significant management judgment and are based upon assumptions about expected future operating performance, economic conditions, market conditions and cost of capital. Inherent in estimating the future cash flows are uncertainties beyond our control, such as changes in capital markets. The actual cash flows could differ materially from management’s estimates due to changes in business conditions, operating performance and economic conditions.