Goodwill And Intangible Assets

12 Months Ended

Jul. 30, 2023

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 1, 2021	$	970	$	3,011	$	3,981
Amounts reclassified due to segment change(1)	25		(25)		—



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

Divestiture(2)	—		(11)		(11)

Foreign currency translation adjustment	(3)		—		(3)
Net balance at July 30, 2023	$	990	$	2,975	$	3,965

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(1)See Note 6 for additional information.

(2)See Note 3 for additional information on the sale of the Emerald nuts business.

Intangible Assets

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


	2023						2022
(Millions)	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Amortizable intangible assets
Customer relationships	$	830	$	(229)	$	601	$	830	$	(181)	$	649
Indefinite-lived trademarks
Snyder's of Hanover					$	620					$	620
Lance					350						350
Kettle Brand					318						318
Pace					292						292
Pacific Foods					280						280
Cape Cod					187						187
Various other Snacks(1),(2)					494						502
Total indefinite-lived trademarks					$	2,541					$	2,549
Total net intangible assets					$	3,142					$	3,198

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

(2)An $8 million trademark was divested with the sale of the Emerald nuts business in 2023. See Note 3 for additional information.

Amortization expense was $48 million for 2023, $41 million for 2022 and $42 million for 2021. The increase in amortization expense in 2023 was a result of $7 million of accelerated amortization expense on customer relationships in the fourth quarter due to the loss of certain contract manufacturing customers. As of July 30, 2023, amortizable intangible assets had a weighted-average remaining useful life of 15 years. Amortization expense is estimated to be approximately $68 million in 2024, $59 million in 2025 and $34 million per year for the following three years.

As of the 2023 annual impairment testing, indefinite-lived trademarks with approximately 10% or less of excess coverage of fair value over carrying value had an aggregate carrying value of $434 million and included the 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.