Goodwill And Intangible Assets

12 Months Ended

Jul. 28, 2024

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 July 31, 2022	$	993	$	2,986	$	3,979

Divestiture(1)	—		(11)		(11)


Foreign currency translation adjustment	(3)		—		(3)
Net balance at July 30, 2023	$	990	$	2,975	$	3,965
Acquisition(2)	1,116		—		1,116



Foreign currency translation adjustment	(4)		—		(4)
Net balance at July 28, 2024	$	2,102	$	2,975	$	5,077

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(1)See Note 4 for additional information on the sale of the Emerald nuts business.

(2)See Note 3 for additional information on the acquisition of Sovos Brands.

Intangible Assets

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


	2024						2023
(Millions)	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Amortizable intangible assets
Customer relationships(1)	$	1,060	$	(300)	$	760	$	830	$	(229)	$	601
Definite-lived trademarks(1)	76		(2)		74		—		—		—
Total amortizable intangible assets	$	1,136	$	(302)	$	834	$	830	$	(229)	$	601
Indefinite-lived trademarks
Rao's(1)					$	1,470					$	—
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(2)					365						494
Total indefinite-lived trademarks					$	3,882					$	2,541
Total net intangible assets					$	4,716					$	3,142

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(1)As part of the Sovos Brands acquisition, we acquired the Rao's indefinite-lived trademark of $1.47 billion, customer relationships of $230 million and definite-lived trademarks of $76 million. See Note 3 for additional information.

(2)Associated with the acquisition of Snyder's-Lance, Inc. (Snyder's-Lance) and includes the Pop Secret and Allied brands trademarks.

Amortization expense was $73 million for 2024, $48 million for 2023 and $41 million for 2022. Amortization expense in 2024 and 2023 included accelerated amortization expense of $27 million and $7 million, respectively, on customer relationships which began in the fourth quarter of 2023 due to the loss of certain contract manufacturing customers. As of July 28, 2024, amortizable intangible assets had a weighted-average remaining useful life of 19 years. Amortization expense is estimated to be approximately $71 million in 2025 and $46 million per year for the following four years.

In the fourth quarter of 2024, we recognized an impairment charge of $53 million on certain salty snacks and cookie trademarks within our Snacks segment, including Tom’s, Jays, Kruncher’s, O-Ke-Doke, Stella D’oro and Archway, collectively referred to as our "Allied brands." In 2024, sales and operating performance were below expectations due in part to competitive pressure and reduced margins. In the fourth quarter of 2024, based on recent performance, we reevaluated the position of the

Allied brands within our portfolio and lowered our near-term and long-term outlook for future sales and operating performance. As of July 28, 2024, the carrying value of the Allied brands trademark was $43 million.

In the fourth quarter of 2024, we performed an assessment on the assets in our Pop Secret popcorn business within our Snacks segment as sales and operating performance were below expectations due in part to competitive pressure and reduced margins, and as we pursued divesting the business. As a result of these factors, in the fourth quarter of 2024, we reduced our long-term outlook for the business and recognized an impairment charge of $76 million on the trademark. As of July 28, 2024, the carrying value of the trademark was $28 million. The sale of the business was completed on August 26, 2024.

The impairment charges were recorded in Other expenses / (income) in the Consolidated Statement of Earnings.

The $1.47 billion carrying value of the Rao's trademark associated with the Sovos Brands acquisition approximates fair value. Excluding the carrying value of the Rao's trademark and the Pop Secret trademark, as of the 2024 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 $1.293 billion and included the Snyder's of Hanover, Pace, 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, assumed royalty rates, 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.