Goodwill and Intangible Assets

12 Months Ended

Oct. 27, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Goodwill: The changes in the carrying amount of goodwill for the fiscal years ended October 27, 2019, and October 28, 2018, are presented in the table below. Beginning balances for fiscal 2019 have been reclassified to conform to the current year presentation between segments. See Note P - Segment Reporting and Note C - Acquisitions and Divestitures for additional information. The reduction in goodwill during fiscal 2019 is due to the divestiture of CytoSport on April 15, 2019. Additions in fiscal 2018 relate to the acquisition of Columbus.

(in thousands)	Grocery Products			Refrigerated Foods		Jennie-O Turkey Store			International & Other			Total
Balance at October 29, 2017	$	882,582		$	795,699	$	203,214		$	238,318		$	2,119,813
Goodwill Acquired	—			610,602		—			—			610,602
Foreign Currency Translation	—			—		—			(20,224		)	(20,224		)
Purchase Adjustments	—			596		—			3,329			3,925
Reported Balance at October 28, 2018	$	882,582		$	1,406,897	$	203,214		$	221,423		$	2,714,116
Segment Reclassification	(25,209		)	51,795		(26,586		)	—			—
Adjusted Balance at October 28, 2018	$	857,373		$	1,458,692	$	176,628		$	221,423		$	2,714,116
Goodwill Sold	(225,072		)	—		—			(4,945		)	(230,017		)
Foreign Currency Translation	—			—		—			(2,454		)	(2,454		)
Balance as of October 27, 2019	$	632,301		$	1,458,692	$	176,628		$	214,024		$	2,481,645

Intangible Assets: The carrying amounts for indefinite-lived intangible assets are presented in the table below. The decrease primarily represents the fair value of trademarks sold as part of the CytoSport divestiture of $147.9 million in fiscal 2019.

	October 27,			October 28,
(in thousands)	2019			2018
Brands/Tradenames/Trademarks	$	959,400		$	1,108,122
Other Intangibles	184			184
Foreign Currency Translation	(3,803		)	(3,484		)
Total	$	955,781		$	1,104,822

The gross carrying amount and accumulated amortization for definite-lived intangible assets are presented in the table below. In fiscal 2019, customer relationships of $13.4 million were sold as part of the divestiture of CytoSport. In fiscal 2018, customer relationships of $29.4 million were acquired related to Columbus. 

	October 27, 2019						October 28, 2018
	Gross					Weighted-	Gross					Weighted-
	Carrying		Accumulated			Avg Life	Carrying		Accumulated			Avg Life
(in thousands)	Amount		Amortization			(in Years)	Amount		Amortization			(in Years)
Customer Lists/Relationships	$	113,739	$	(36,744	)	12.7	$	137,039	$	(36,367	)	12.4
Other Intangibles	6,957		(2,817		)	6.3	6,155		(1,547		)	6.4
Foreign Currency Translation	—		(3,054		)	—	—		(2,883		)	—
Total	$	120,696	$	(42,615	)	12.3	$	143,194	$	(40,797	)	12.2

Amortization expense for the last three fiscal years was as follows:

(in millions)
2019	$	11.6
2018	12.7
2017	8.4

Estimated annual amortization expense for the five fiscal years after October 27, 2019, is as follows: 

(in millions)
2020	$	10.7
2021	10.7
2022	10.4
2023	9.5
2024	7.4

During the fourth quarter of fiscal years 2019, 2018, and 2017, the Company completed the required annual impairment tests of indefinite-lived intangible assets and goodwill. An impairment was indicated for the CytoSport trademark in the Grocery Products segment, resulting in a charge of $17.3 million in fiscal 2018. No other impairment was indicated. Useful lives of intangible assets were also reviewed during this process, with no material changes identified.