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Goodwill and Other Intangible Assets
 12 Months Ended
May 26, 2024
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 26, 2024
May 28, 2023
Goodwill
$
14,750.7
$
14,511.2
Other intangible assets:
Intangible assets not subject to amortization:
Brands and other indefinite-lived intangibles
6,728.6
6,712.4
Intangible assets subject to amortization:
Customer relationships and other finite-lived intangibles
402.2
386.3
Less accumulated amortization
(150.9)
(131.1)
Intangible assets subject to amortization
251.3
255.2
Other intangible assets
6,979.9
6,967.6
Total
$
21,730.6
$
21,478.8
Based on
 
the carrying
 
value of
 
finite-lived intangible
 
assets as of
 
May 26,
 
2024, 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 for fiscal 2022, 2023, and 2024
 
are as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In Millions
North
America
Retail
Pet
North
America
Foodservice
International
Corporate
and Joint
Ventures
Total
Balance as of May 30, 2021
$
6,689.3
$
5,300.5
$
648.8
$
978.2
$
445.6
$
14,062.4
Acquisition
-
762.3
-
-
-
762.3
Divestitures
-
-
-
(201.8)
-
(201.8)
Reclassified to assets held for sale
(130.0)
-
-
-
-
(130.0)
Other activity, primarily
 
foreign
 
currency translation
(6.4)
-
-
(54.8)
(53.2)
(114.4)
Balance as of May 29, 2022
6,552.9
6,062.8
648.8
721.6
392.4
14,378.5
Acquisition
-
-
156.8
-
-
156.8
Divestitures
(2.0)
-
-
(0.4)
-
(2.4)
Other activity, primarily
 
foreign
 
currency translation
(8.5)
-
-
(12.8)
(0.4)
(21.7)
Balance as of May 28, 2023
6,542.4
6,062.8
805.6
708.4
392.0
14,511.2
Acquisitions
-
-
-
318.1
26.9
345.0
Impairment charge
-
-
-
(117.1)
-
(117.1)
Other activity, primarily
 
foreign
 
currency translation
(0.5)
-
(0.1)
7.7
4.5
11.6
Balance as of May 26, 2024
$
6,541.9
$
6,062.8
$
805.5
$
917.1
$
423.4
$
14,750.7
The changes in the carrying amount of other intangible assets for fiscal 2022, 2023, and
 
2024 are as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In Millions
Total
Balance as of May 30, 2021
$
7,150.6
Acquisition
370.0
Divestitures
(621.8)
Intellectual property intangible asset
210.4
Other activity, primarily
 
amortization and foreign currency translation
(109.3)
Balance as of May 29, 2022
6,999.9
Acquisition
3.8
Divestiture
(3.6)
Other activity, primarily
 
amortization and foreign currency translation
(32.5)
Balance as of May 28, 2023
6,967.6
Acquisition
132.6
Impairment charges
(103.1)
Other activity, primarily
 
amortization and foreign currency translation
(17.2)
Balance as of May 26, 2024
$
6,979.9
 
 
 
 
 
Our
 
annual
 
goodwill
 
and
 
indefinite-lived
 
intangible
 
assets
 
impairment
 
test
 
was
 
performed
 
on
 
the
 
first
 
day
 
of
 
the
 
second
 
quarter
 
of
fiscal 2024. As a
 
result of lower future profitability
 
projections for our Latin
 
America reporting unit, we
 
determined that the fair
 
value
of the
 
reporting
 
unit was
 
less than
 
its book
 
value
 
and
 
recorded a
 
$
117.1
 
million non-cash
 
goodwill
 
impairment
 
charge.
 
In addition,
during the
 
fourth quarter
 
of fiscal
 
2024, we
 
executed our
 
fiscal 2025
 
planning process
 
and preliminary
 
long-range planning
 
process,
which resulted in
 
lower future sales and
 
profitability projections for
 
the businesses supporting
 
our
Top
 
Chews
,
True Chews
, and
EPIC
brand intangible assets.
 
As a result of
 
this triggering event,
 
we performed an
 
interim impairment assessment
 
of these assets
 
as of May
26, 2024,
 
and determined
 
that the
 
fair value
 
of these
 
brand intangible
 
assets no
 
longer exceeded
 
the carrying
 
values of
 
the respective
assets, resulting in $
103.1
 
million of non-cash impairment charges.
 
We recorded
 
impairment charges in restructuring,
 
impairment, and
other exit
 
costs in
 
our Consolidated
 
Statements
 
of Earnings.
 
Our estimates
 
of the
 
fair values
 
were determined
 
based on
 
a discounted
cash flow model
 
using inputs which
 
included our long-range
 
cash flow projections
 
for the businesses,
 
royalty rates, weighted
 
-average
cost of capital rates, and tax rates. These fair values are Level 3 assets in the fair value
 
hierarchy.
All other intangible
 
asset fair values
 
were substantially
 
in excess of
 
the carrying
 
values, except for
 
the
Uncle Toby’s
 
brand intangible
asset. In
 
addition,
 
while having
 
significant
 
coverage as
 
of our
 
fiscal 2024
 
assessment date,
 
the
Progresso
,
 
Nudges
,
and
 
True
 
Chews
brand intangible assets had risk of decreasing coverage. We
 
will continue to monitor applicable businesses for potential impairment.
We did not
 
identify any indicators of impairment for all other goodwill and indefinite-lived
 
intangible assets as of May 26, 2024.