Goodwill and Intangible Assets

12 Months Ended

Oct. 25, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill: The changes in the carrying amount of goodwill for the fiscal years ended October 25, 2020, and October 27, 2019, are:


(in thousands)	Grocery Products		Refrigerated Foods		Jennie-O Turkey Store		International & Other		Total
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 at October 27, 2019	$	632,301	$	1,458,692	$	176,628	$	214,024	$	2,481,645
Goodwill Acquired	—		148,313		—		—		148,313


Foreign Currency Translation	—		—		—		(17,232)		(17,232)
Balance as of October 25, 2020	$	632,301	$	1,607,005	$	176,628	$	196,793	$	2,612,727

The increase to goodwill during fiscal 2020 is due to the acquisition of Sadler's. The reduction in goodwill during fiscal 2019 is due to the divestiture of CytoSport on April 15, 2019. See Note B - Acquisitions and Divestitures for additional information. Beginning balances for fiscal 2019 have been reclassified to present the current allocation between segments. See Note P - Segment Reporting for additional detail.

Intangible Assets: The carrying amounts for indefinite-lived intangible assets are:


	October 25,		October 27,
(in thousands)	2020		2019
Brands/Tradenames/Trademarks	$	953,190	$	959,400
Other Intangibles	184		184
Foreign Currency Translation	(6,923)		(3,803)
Total	$	946,452	$	955,781

The gross carrying amount and accumulated amortization for definite-lived intangible assets are:


	October 25, 2020					October 27, 2019
	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	$	117,239	$	(45,996)	12.2	$	113,739	$	(36,744)	12.7
Other Intangibles	60,631		(4,298)		13.8	6,957		(2,817)		6.3
Tradenames/Trademarks	10,536		(3,518)		4.9	—		—		—
Foreign Currency Translation	—		(4,760)		—	—		(3,054)		—
Total	$	188,406	$	(58,572)	12.3	$	120,696	$	(42,615)	12.2

The increase in gross carrying amount of other intangibles during fiscal 2020, is related to the acquisition of Sadler's. See Note B - Acquisitions and Divestitures for additional information.

Amortization expense for the last three fiscal years was:


(in thousands)
2020	$	14,251
2019	11,586
2018	12,653

Estimated annual amortization expense for the five fiscal years after October 25, 2020, is as follows:


(in thousands)
2021	$	16,477
2022	16,037
2023	15,132
2024	13,048
2025	11,432

During the fourth quarter of fiscal years 2020, 2019, and 2018, the Company completed the required annual impairment tests of indefinite-lived intangible assets and goodwill. In fiscal 2018, an impairment was indicated for the CytoSport trademark in the Grocery Products segment, resulting in a charge of $17.3 million. No other impairment was indicated. Useful lives of intangible assets were also reviewed during this process, with no material changes identified.