GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Feb. 23, 2020

Goodwill and Other Intangible Assets [Abstract]

Goodwill and Other Intangible Assets

(4) Goodwill and Other Intangible Assets

The components of goodwill and other intangible assets are as follows:

In Millions		Feb. 23, 2020		May 26, 2019
Goodwill	$	13,950.8	$	13,995.8
Other intangible assets:
Intangible assets not subject to amortization:
Brands and other indefinite-lived intangibles		6,568.8		6,590.8
Intangible assets subject to amortization:
Franchise agreements, customer relationships, and other finite-lived intangibles		772.2		786.1
Less accumulated amortization		(232.6)		(210.1)
Intangible assets subject to amortization, net		539.6		576.0
Other intangible assets		7,108.4		7,166.8
Total	$	21,059.2	$	21,162.6

Based on the carrying value of finite-lived intangible assets as of February 23, 2020, annual amortization expense for each of the next five fiscal years is estimated to be approximately $40 million.The changes in the carrying amount of goodwill in fiscal 2020 were as follows:

In Millions	North America Retail		Pet		Convenience Stores & Foodservice		Europe & Australia		Asia & Latin America		Joint Ventures		Total
Balance as of May 26, 2019	$	6,406.5	$	5,300.5	$	918.8	$	700.4	$	260.2	$	409.4	$	13,995.8
Other activity, primarily foreign currency translation		1.9		-		-		(15.4)		(18.5)		(13.0)		(45.0)
Balance as of Feb. 23, 2020	$	6,408.4	$	5,300.5	$	918.8	$	685.0	$	241.7	$	396.4	$	13,950.8

The changes in the carrying amount of other intangible assets for the nine-month period ended February 23, 2020, were as follows:

In Millions		Total
Balance as of May 26, 2019	$	7,166.8
Other activity, primarily foreign currency translation		(58.4)
Balance as of Feb. 23, 2020	$	7,108.4

Our annual goodwill and indefinite-lived intangible assets impairment test was performed on the first day of the second quarter of fiscal 2020, and we determined there was no impairment of our intangible assets as their related fair values were substantially in excess of the carrying values, except for the Europe & Australia reporting unit and the Progresso brand intangible asset.

The excess fair value as of the fiscal 2020 test date of the Europe & Australia reporting unit and the Progresso brand intangible asset is as follows:

In Millions		Carrying Value of Intangible Asset	Excess Fair Value as of Fiscal 2020 Test Date
Europe & Australia	$	672.6	14%
Progresso	$	330.0	5%

In addition, while having significant coverage as of our fiscal 2020 assessment date, the Pillsbury brand intangible asset had risk of decreasing coverage. We will continue to monitor these businesses for potential impairment.