Goodwill and Other Intangible Assets

6 Months Ended

Oct. 28, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill for the six months ended October 28, 2012 and fiscal year ended April 29, 2012, by reportable segment, are as follows:



	North American Consumer Products			Europe			Asia/Pacific			U.S. Foodservice			Rest of World			Total
	(In thousands)
Balance at April 27, 2011	$	1,111,737		$	1,221,240		$	392,080		$	257,674		$	315,710		$	3,298,441
Purchase accounting adjustments	—			(600		)	—			—			1,380			780
Disposals	—			(1,532		)	—			—			—			(1,532		)
Translation adjustments	(4,662		)	(73,820		)	3,119			—			(36,799		)	(112,162		)
Balance at April 29, 2012	1,107,075			1,145,288			395,199			257,674			280,291			3,185,527
Disposals	—			—			—			(899		)	—			(899		)
Translation adjustments	(2,387		)	(19,310		)	(855		)	—			(28,362		)	(50,914		)
Balance at October 28, 2012	$	1,104,688		$	1,125,978		$	394,344		$	256,775		$	251,929		$	3,133,714

Total goodwill accumulated impairment losses for the Company since Fiscal 2003 were $84.6 million consisting of $54.5 million for Europe, $2.7 million for Asia/Pacific and $27.4 million for Rest of World as of April 27, 2011, April 29, 2012 and October 28, 2012.

During the second quarter of Fiscal 2013, the Company changed its annual goodwill impairment testing date from the fourth quarter to the third quarter of each year. This change is being made to better align impairment testing procedures with the annual business planning and budgeting process, which commences during the third quarter of each year. Accordingly, management considers this accounting change preferable. This change does not accelerate, delay, avoid, or cause an impairment charge, nor does this change result in adjustments to previously issued financial statements.

Trademarks and other intangible assets at October 28, 2012 and April 29, 2012, subject to amortization expense, are as follows:



	October 28, 2012							April 29, 2012
	Gross		Accum Amort			Net		Gross		Accum Amort			Net
	(In thousands)
Trademarks	$	289,502	$	(90,890	)	$	198,612	$	282,937	$	(87,925	)	$	195,012
Licenses	208,186		(166,807		)	41,379		208,186		(163,945		)	44,241
Recipes/processes	88,743		(37,668		)	51,075		89,207		(35,811		)	53,396
Customer-related assets	212,963		(74,008		)	138,955		216,755		(69,244		)	147,511
Other	48,268		(25,766		)	22,502		48,643		(25,442		)	23,201
	$	847,662	$	(395,139	)	$	452,523	$	845,728	$	(382,367	)	$	463,361

Amortization expense for trademarks and other intangible assets was $7.7 million and $8.8 million for the second quarters ended October 28, 2012 and October 26, 2011, respectively and $15.4 million and $16.8 million for the six months ended October 28, 2012 and October 26, 2011, respectively. Based upon the amortizable intangible assets recorded on the balance sheet as of October 28, 2012, annual amortization expense for each of the next five fiscal years is estimated to be approximately $31 million.

Intangible assets not subject to amortization at October 28, 2012 totaled $1.00 billion and consisted of $864.2 million of trademarks, $118.2 million of recipes/processes, and $19.9 million of licenses. Intangible assets not subject to amortization at April 29, 2012 totaled $1.04 billion and consisted of $895.9 million of trademarks, $119.3 million of recipes/processes, and $20.1 million of licenses. The reduction in intangible assets, not subject to amortization expense, since April 29, 2012 is due primarily to translation adjustments.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References+ Details