Goodwill and Other Intangible Assets

12 Months Ended

May 30, 2021

Goodwill and Other Intangible Assets [Abstract]

Goodwill and Other Intangible Assets

NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS

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

In Millions		May 30, 2021		May 31, 2020
Goodwill	$	14,062.4	$	13,923.2
Other intangible assets:
Intangible assets not subject to amortization:
Brands and other indefinite-lived intangibles		6,628.1		6,561.4
Intangible assets subject to amortization:
Franchise agreements, customer relationships, and other finite-lived intangibles		823.4		777.8
Less accumulated amortization		(300.9)		(243.4)
Intangible assets subject to amortization		522.5		534.4
Other intangible assets		7,150.6		7,095.8
Total	$	21,213.0	$	21,019.0

Based on the carrying value of finite-lived intangible assets as of May 30, 2021, 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 for fiscal 2019, 2020, and 2021 are as follows:

In Millions	North America Retail		Pet		Convenience Stores & Foodservice		Europe & Australia		Asia & Latin America		Joint Ventures		Total
Balance as of May 27, 2018	$	6,410.6	$	5,294.9	$	918.8	$	729.9	$	285.0	$	425.8	$	14,065.0
Divestitures		-		-		-		-		(0.5)		-		(0.5)
Purchase accounting adjustment		-		5.6		-		-		-		-		5.6
Other activity, primarily foreign currency translation		(4.1)		-		-		(29.5)		(24.3)		(16.4)		(74.3)
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		(2.8)		-		-		(9.7)		(56.4)		(3.7)		(72.6)
Balance as of May 31, 2020		6,403.7		5,300.5		918.8		690.7		203.8		405.7		13,923.2
Divestiture		-		-		-		-		(1.2)		-		(1.2)
Other activity, primarily foreign currency translation		15.6		-		-		74.8		10.1		39.9		140.4
Balance as of May 30, 2021	$	6,419.3	$	5,300.5	$	918.8	$	765.5	$	212.7	$	445.6	$	14,062.4

The changes in the carrying amount of other intangible assets for fiscal 2019, 2020, and 2021 are as follows:

In Millions		Total
Balance as of May 27, 2018	$	7,445.1
Impairment charge		(192.6)
Other activity, primarily amortization and foreign currency translation		(85.7)
Balance as of May 26, 2019		7,166.8
Other activity, primarily amortization and foreign currency translation		(71.0)
Balance as of May 31, 2020		7,095.8
Divestiture		(5.3)
Other activity, primarily amortization and foreign currency translation		60.1
Balance as of May 30, 2021	$	7,150.6

Our annual goodwill and indefinite-lived intangible assets impairment test was performed on the first day of the second quarter of fiscal 2021, and we determined there was no impairment of our intangible assets as their related fair values were substantially in excess of the carrying values.

While having significant coverage as of our fiscal 2021 assessment date, the Europe & Australia reporting unit and the Progresso, Green Giant, and EPIC brand intangible assets had risk of decreasing coverage. We will continue to monitor these businesses for potential impairment.

We did not identify any indicators of impairment for any goodwill or indefinite-lived intangible assets as of May 30, 2021.

In fiscal 2019, as a result of lower sales projections in our long-range plans for the businesses supporting the Progresso, Food Should Taste Good, and Mountain High brand intangible assets, we recorded a $192.6 million impairment charge in restructuring, impairment, and other exit costs. Significant assumptions used in these assessments included our long-range cash flow projections for the businesses, royalty rates, weighted-average cost of capital rates, and tax rates.