GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Jul. 26, 2015

NOTE DGOODWILL AND INTANGIBLE ASSETS

The carrying amounts of goodwill for the third quarter and nine months ended July 26, 2015, are presented in the table below. The additions during the third quarter are entirely due to the acquisition of Applegate on July 13, 2015. The goodwill amounts are preliminary pending final working capital adjustments. Purchase adjustments during the third quarter relate to the CytoSport acquisition. The reduction in the first nine months is entirely due to the sale of an immaterial product line.

(in thousands)	Grocery Products		Refrigerated Foods		JOTS		Specialty Foods		International & Other		Total
Balance as of April 26, 2015	$	322,421	$	96,208	$	203,214	$	474,341	$	132,749	$	1,228,933
Goodwill acquired	-		743,058		-		-		-		743,058
Purchase adjustments	-		-		-		6,916		-		6,916

Balance as of July 26, 2015	$	322,421	$	839,266	$	203,214	$	481,257	$	132,749	$	1,978,907

(in thousands)	Grocery Products		Refrigerated Foods		JOTS		Specialty Foods		International & Other		Total
Balance as of October 26, 2014	$	322,942	$	96,643	$	203,214	$	470,857	$	132,750	$	1,226,406
Goodwill acquired	-		743,058		-		-		-		743,058
Purchase adjustments	-		-		-		10,400		-		10,400
Disposal	(521)		(435)		-		-		(1)		(957)

Balance as of July 26, 2015	$	322,421	$	839,266	$	203,214	$	481,257	$	132,749	$	1,978,907

The gross carrying amount and accumulated amortization for definite-lived intangible assets are presented in the table below.

(in thousands)	July 26, 2015				October 26, 2014
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer lists/relationships	$	56,390	$	(11,893)	$	67,540	$	(19,336)
Proprietary software & technology	14,820		(14,596)		14,820		(13,542)
Formulas & recipes	7,490		(6,654)		17,854		(15,955)
Other intangibles	1,170		(1,026)		4,746		(4,503)

Total	$	79,870	$	(34,169)	$	104,960	$	(53,336)

Amortization expense was $2.3 million and $6.3 million for the third quarter and nine months ended July 26, 2015, respectively, compared to $2.3 million and $6.9 million for the third quarter and nine months ended July 27, 2014.

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

(in thousands)
2015		$ 7,919
2016		5,591
2017		5,118
2018		4,876
2019		4,833

The carrying amounts for indefinite-lived intangible assets are presented in the table below.

(in thousands)	July 26, 2015		October 26, 2014
Brands/tradenames/trademarks	$	495,282	$	495,282
Other intangibles	7,984		7,984


Total	$	503,266	$	503,266

- 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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