XML 24 R12.htm IDEA: XBRL DOCUMENT v3.25.0.1
Goodwill And Intangible Assets
 6 Months Ended
Jan. 26, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill
The following table shows the changes in the carrying amount of goodwill:
(Millions)Meals & BeveragesSnacksTotal
Net balance at July 28, 2024
$2,102 $2,975 $5,077 
Divestiture(1)
— (21)(21)
Amounts reclassified to Assets of business held for sale(2)
(65)— (65)
Foreign currency translation adjustment(3)— (3)
Net balance at January 26, 2025
$2,034 $2,954 $4,988 
____________________________________
(1)On August 26, 2024, we sold our Pop Secret popcorn business. See Note 4 for additional information.
(2)See Note 4 for additional information on our noosa yoghurt business.
Intangible Assets
The following table summarizes balance sheet information for intangible assets, excluding goodwill:
January 26, 2025July 28, 2024
(Millions)CostAccumulated Amortization
Amounts reclassified to Assets of business held for sale(1)
NetCostAccumulated AmortizationNet
Amortizable intangible assets
Customer relationships$1,060 $(338)$(17)$705 $1,060 $(300)$760 
Definite-lived trademarks76 (2)(72)2 76 (2)74 
Total amortizable intangible assets$1,136 $(340)$(89)$707 $1,136 $(302)$834 
Indefinite-lived trademarks
Rao's$1,470 $1,470 
Snyder's of Hanover620 620 
Lance350 350 
Kettle Brand318 318 
Pace292 292 
Pacific Foods280 280 
Cape Cod187 187 
Various other Snacks(2) (3)
311 365 
Total indefinite-lived trademarks$3,828 $3,882 
Total net intangible assets$4,535 $4,716 
____________________________________
(1)See Note 4 for additional information on our noosa yoghurt business.
(2)The carrying amount as of July 28, 2024 included the $28 million Pop Secret trademark, which was divested with the sale of the business in 2025. See Note 4 for additional information.
(3)Includes the Late July and Allied brands trademarks.
Amortization expense was $39 million for the six-month period ended January 26, 2025, and $34 million for the six-month period ended January 28, 2024. Amortization expense for both the six-month periods ended January 26, 2025 and January 28, 2024 included $14 million of accelerated amortization expense on customer relationships, which began in the fourth quarter of 2023 due to the loss of certain contract manufacturing customers. As of January 26, 2025, amortizable intangible assets had a weighted-average remaining useful life of 19 years. Amortization expense is estimated to be approximately $70 million in 2025 and $40 million per year for the following four years.
During the second quarter of 2025, we performed an interim impairment assessment 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 2025, sales performance was below expectations. In the second quarter of 2025, based on recent performance, we lowered our long-term outlook and recognized an impairment charge of $15 million on the Allied brands trademarks. As of January 26, 2025, the carrying value of the Allied brands trademarks was $28 million.
During the second quarter of 2025, we performed an interim impairment assessment on the Late July trademark within our Snacks segment. In 2025, sales performance was below expectations. In the second quarter of 2025, based on recent performance, we lowered our long-term outlook and recognized an impairment charge of $11 million on the trademark. As of January 26, 2025, the carrying value of the Late July trademark was $47 million.
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, based on the 2024 annual impairment testing and interim assessments described above, indefinite-lived trademarks with approximately 10% or less of excess coverage of fair value over carrying value had an aggregate carrying value of $1.267 billion as of January 26, 2025, and included the Snyder's of Hanover, Pace, Pacific Foods, Late July and Allied brands 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.