Goodwill And Intangible Assets

12 Months Ended

Jul. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

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


(Millions)	Meals & Beverages		Snacks		Total
Net balance at August 2, 2020	$	975	$	3,011	$	3,986

Divestiture(1)	(12)		—		(12)


Foreign currency translation adjustment	7		—		7
Net balance at August 1, 2021	$	970	$	3,011	$	3,981
Amounts reclassified due to segment change(2)	25		(25)		—


Foreign currency translation adjustment	(2)		—		(2)
Net balance at July 31, 2022	$	993	$	2,986	$	3,979

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(1)See Note 3 for additional information on the sale of the Plum baby and snack foods business.

(2)See Note 6 for additional information.

Intangible Assets

The following table summarizes balance sheet information for intangible assets, excluding goodwill:


	2022						2021
(Millions)	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Amortizable intangible assets
Customer relationships	$	830	$	(181)	$	649	$	830	$	(140)	$	690
Non-amortizable intangible assets
Trademarks					2,549						2,549
Total net intangible assets					$	3,198					$	3,239

Amortization of intangible assets in Earnings from continuing operations was $41 million for 2022, $42 million for 2021 and $43 million for 2020. As of July 31, 2022, amortizable intangible assets had a weighted-average remaining useful life of 16 years. Amortization expense for the next five years is estimated to be approximately $41 million per year.

The carrying values of indefinite-lived trademarks as of July 31, 2022 and August 1, 2021, are detailed below:


(Millions)
Snyder's of Hanover	$	620
Lance	350
Kettle Brand	318
Pace	292
Pacific Foods	280
Various other Snacks(1)	689
Total	$	2,549

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(1)Associated with the acquisition of Snyder's-Lance, Inc. (Snyder's-Lance).

As of the 2022 impairment testing, indefinite-lived trademarks with 10% or less of excess coverage of fair value over carrying value had an aggregate carrying value of $434 million and included Pacific Foods and certain other Snacks trademarks.

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.