Goodwill and Other Intangible Assets

9 Months Ended

Aug. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

The following table displays intangible assets at August 31, 2017, August 31, 2016 and November 30, 2016 (in millions):



	August 31, 2017				August 31, 2016				November 30, 2016
	Gross carrying amount		Accumulated Amortization		Gross carrying amount		Accumulated Amortization		Gross carrying amount		Accumulated Amortization
Finite-lived intangible assets	$	336.7	$	61.5	$	166.5	$	48.6	$	161.1	$	48.4
Indefinite-lived intangible assets
Goodwill	4,503.3		—		1,813.3		—		1,771.4		—
Brand names and trademarks	2,816.3		—		315.7		—		312.2		—
	7,319.6		—		2,129.0		—		2,083.6		—
Total goodwill and intangible assets	$	7,656.3	$	61.5	$	2,295.5	$	48.6	$	2,244.7	$	48.4

Intangible asset amortization expense was $4.1 million and $11.1 million for the three and nine months ended August 31, 2017, respectively, and $4.1 million and $8.6 million for the three and nine months ended August 31, 2016, respectively. At August 31, 2017, finite-lived intangible assets had a weighted-average remaining life of approximately 12.7 years.

The changes in the carrying amount of goodwill by business segment for the nine months ended August 31, 2017 and 2016 were as follows (in millions):



	2017					2016
	Consumer			Industrial		Consumer			Industrial
Beginning of year	$	1,608.3		$	163.1	$	1,587.7		$	171.6
Changes in preliminary purchase price allocation	(7.7		)	—		(23.2		)	—
Increases in goodwill from acquisitions	1,702.6			926.2		61.3			—
Foreign currency fluctuations	96.4			14.4		20.1			(4.2		)
Balance as of end of August	$	3,399.6		$	1,103.7	$	1,645.9		$	167.4

A preliminary valuation of the acquired net assets of RB Foods in August 2017 (see note 2) resulted in the allocation of $1,702.6 million and $851.3 million of goodwill to the consumer segment and industrial segment, respectively. A preliminary valuation of the acquired net assets of Giotti in December 2016 (see note 2) resulted in the allocation of $74.9 million of goodwill to the industrial segment.

- 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