GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Oct. 26, 2014

Note F

Goodwill and Intangible Assets

The changes in the carrying amount of goodwill for the fiscal years ended October 26, 2014, and October 27, 2013, are presented in the table below. The additions during the fiscal year ended October 26, 2014, are due to the acquisitions of CytoSport on August 11, 2014, and the China based SKIPPY® peanut butter business on November 26, 2013. The additions during the prior fiscal year ended October 27, 2013, are entirely due to the acquisition of the United States based SKIPPY® peanut butter business on January 31, 2013.

(in thousands)	Grocery Products	Refrigerated Foods	JOTS	Specialty Foods	International & Other	Total
Balance as of October 28, 2012	$ 123,316	$ 96,643	$ 203,214	$ 207,028	$ 674	$ 630,875
Goodwill acquired	199,626	–	–	–	103,971	303,597
Balance as of October 27, 2013	$ 322,942	$ 96,643	$ 203,214	$ 207,028	$ 104,645	$ 934,472
Goodwill acquired	–	–	–	263,829	28,105	291,934
Balance as of October 26, 2014	$ 322,942	$ 96,643	$ 203,214	$ 470,857	$ 132,750	$ 1,226,406

The gross carrying amount and accumulated amortization for definite-lived intangible assets are presented in the table below. In fiscal 2014, customer relationships of $21.6 million were acquired during the fourth quarter related to CytoSport and $2.6 million were acquired during the first quarter related to the China based SKIPPY® peanut butter business. Customer relationships of $25.1 million were acquired during the second quarter of fiscal 2013 related to the United States based SKIPPY® peanut butter business.

	October 26, 2014				October 27, 2013
	Gross			Weighted-	Gross			Weighted-
	Carrying	Accumulated		Average Life	Carrying	Accumulated		Average Life
(in thousands)	Amount	Amortization		(in Years)	Amount	Amortization		(in Years)
Customer lists/relationships	$ 67,540	$ (19,336	)	11.0	$ 43,340	$ (14,719	)	11.0
Formulas & recipes	17,854	(15,955	)	8.8	17,854	(13,824	)	8.8
Proprietary software & technology	14,820	(13,542	)	10.2	14,820	(12,024	)	10.2
Other intangibles	4,746	(4,503	)	7.4	9,386	(7,999	)	7.7
Total	$ 104,960	$ (53,336	)	10.4	$ 85,400	$ (48,566	)	10.1

Amortization expense for the fiscal years ended October 26, 2014, October 27, 2013, and October 28, 2012, was $9.4 million, $9.5 million, and $9.0 million, respectively.

Estimated annual amortization expense for the five fiscal years after October 26, 2014, is as follows:

(in thousands)
2015		$ 7,554
2016		5,591
2017		5,118
2018		4,876
2019		4,833

The carrying amounts for indefinite-lived intangible assets are in the following table. The increase in fiscal 2014 represents the fair value of the tradenames and website/domain names acquired with CytoSport.

	October 26,		October 27,
(in thousands)	2014		2013
Brand/tradename/trademarks	$	495,282	$	333,275
Other intangibles	7,984		7,984
Total	$	503,266	$	341,259

During the fourth quarter of fiscal years 2014 and 2013, the Company completed the required annual impairment tests of indefinite-lived intangible assets and goodwill, with no impairment indicated. Useful lives of intangible assets were also reviewed during this process, with no changes identified.

- 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.

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