Goodwill and Other Intangible Assets

6 Months Ended

Nov. 28, 2021

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	Nov. 28, 2021		May 30, 2021
Goodwill	$	14,523.2	$	14,062.4
Other intangible assets:
Intangible assets not subject to amortization:
Brands and other indefinite-lived intangibles		6,529.1		6,628.1
Intangible assets subject to amortization:
Franchise agreements, customer relationships, and other finite-lived intangibles		402.5		823.4
Less accumulated amortization		(117.7)		(300.9)
Intangible assets subject to amortization, net		284.8		522.5
Other intangible assets		6,813.9		7,150.6
Total	$	21,337.1	$	21,213.0

Based on the carrying value of finite-lived intangible assets as of November 28, 2021, annual amortization expense for each of the next five fiscal years is estimated to be approximately $20 million.

The changes in the carrying amount of goodwill during the six-month period ended November 28, 2021, were as follows:

In Millions	North America Retail		Pet		Convenience Stores & Foodservice		Europe & Australia		Asia & Latin America		Joint Ventures		Total
Balance as of May 30, 2021	$	6,419.3	$	5,300.5	$	918.8	$	765.5	$	212.7	$	445.6	$	14,062.4
Acquisition		-		759.4		-		-		-		-		759.4
Reclassified to assets held for sale		-		-		-		(184.6)		(10.3)		-		(194.9)
Other activity, primarily foreign currency translation		(7.1)		-		-		(53.2)		(11.4)		(32.0)		(103.7)
Balance as of Nov. 28, 2021	$	6,412.2	$	6,059.9	$	918.8	$	527.7	$	191.0	$	413.6	$	14,523.2

The changes in the carrying amount of other intangible assets during the six-month period ended November 28, 2021, were as follows:

In Millions		Total
Balance as of May 30, 2021	$	7,150.6
Acquisition		370.0
Reclassified to assets held for sale		(621.8)
Other activity, primarily foreign currency translation		(84.9)
Balance as of Nov. 28, 2021	$	6,813.9

Our annual goodwill and indefinite-lived intangible assets impairment test was performed on the first day of the second quarter of fiscal 2022, 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 Uncle Toby’s brand intangible asset.

The excess fair value as of the fiscal 2022 test date of the Uncle Toby’s brand intangible asset is as follows:

In Millions		Carrying Value of Intangible Asset	Excess Fair Value as of Fiscal 2022 Test Date
Uncle Toby's	$	55.0	7%

In addition, while having significant coverage as of our fiscal 2022 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.