Goodwill and Other Intangible Assets
Changes in the carrying amount of goodwill for the fiscal year ended April 28, 2013, by reportable segment, are as follows:
|
| | | | | | | | | | | | | | | | | | | | | | | |
| North American Consumer Products | | Europe | | Asia/ Pacific | | U.S. Foodservice | | Rest of World | | Total |
| | | | | (In thousands) | | | | |
Balance at April 27, 2011 | $ | 1,111,737 |
| | $ | 1,221,240 |
| | $ | 392,080 |
| | $ | 257,674 |
| | $ | 315,710 |
| | $ | 3,298,441 |
|
Purchase accounting adjustments | — |
| | (600 | ) | | — |
| | — |
| | 1,380 |
| | 780 |
|
Disposals | — |
| | (1,532 | ) | | — |
| | — |
| | — |
| | (1,532 | ) |
Translation adjustments | (4,662 | ) | | (73,820 | ) | | 3,119 |
| | — |
| | (36,799 | ) | | (112,162 | ) |
Balance at April 29, 2012 | 1,107,075 |
| | 1,145,288 |
| | 395,199 |
| | 257,674 |
| | 280,291 |
| | 3,185,527 |
|
Disposals | — |
| | (527 | ) | | — |
| | (899 | ) | | — |
| | (1,426 | ) |
Impairment loss | — |
| | — |
| | (36,000 | ) | | — |
| | — |
| | (36,000 | ) |
Goodwill allocated to discontinued operations | — |
| | — |
| | (4,952 | ) | | — |
| | — |
| | (4,952 | ) |
Translation adjustments | (5,148 | ) | | (39,300 | ) | | 5,595 |
| | — |
| | (25,046 | ) | | (63,899 | ) |
Balance at April 28, 2013 | $ | 1,101,927 |
| | $ | 1,105,461 |
| | $ | 359,842 |
| | $ | 256,775 |
| | $ | 255,245 |
| | $ | 3,079,250 |
|
As a result of classifying the LongFong business as held for sale, the Company took a non-cash impairment charge of $36.0 million to goodwill based on the fair value of the business based on the anticipated sale. During the second quarter of Fiscal 2013, the Company changed its annual goodwill impairment testing date from the fourth quarter to the third quarter of each year. As such, the Company completed its annual impairment assessment of goodwill during the third quarter of Fiscal 2013. No additional impairments were identified during the Company's annual assessment of goodwill. Total goodwill accumulated impairment losses for the Company since Fiscal 2003 were $120.6 million consisting of $54.5 million for Europe, $38.7 million for Asia/Pacific and $27.4 million for Rest of World as of April 28, 2013. Total goodwill accumulated impairment losses for the Company since Fiscal 2003 were $84.7 million consisting of $54.5 million for Europe, $2.7 million for Asia/Pacific and $27.4 million for Rest of World as of April 29, 2012 and April 27, 2011.
During the fourth quarter of Fiscal 2013, the Company completed its annual review of indefinite-lived intangible assets. No impairments were identified during the Company’s annual assessment of indefinite-lived intangible assets.
During the second quarter of Fiscal 2012, the Company finalized the purchase price allocation for the Coniexpress acquisition in Brazil resulting primarily in immaterial adjustments between goodwill, income taxes and non-pension postretirement benefits.
Trademarks and other intangible assets at April 28, 2013 and April 29, 2012, subject to amortization expense, are as follows:
|
| | | | | | | | | | | | | | | | | | | | | | | |
| April 28, 2013 | | April 29, 2012 |
| Gross | | Accum Amort | | Net | | Gross | | Accum Amort | | Net |
| | | | | (In thousands) | | | | |
Trademarks | $ | 282,350 |
| | $ | (91,923 | ) | | $ | 190,427 |
| | $ | 282,937 |
| | $ | (87,925 | ) | | $ | 195,012 |
|
Licenses | 208,186 |
| | (169,666 | ) | | 38,520 |
| | 208,186 |
| | (163,945 | ) | | 44,241 |
|
Recipes/processes | 86,686 |
| | (37,907 | ) | | 48,779 |
| | 89,207 |
| | (35,811 | ) | | 53,396 |
|
Customer-related assets | 209,428 |
| | (77,310 | ) | | 132,118 |
| | 216,755 |
| | (69,244 | ) | | 147,511 |
|
Other | 50,606 |
| | (26,202 | ) | | 24,404 |
| | 48,643 |
| | (25,442 | ) | | 23,201 |
|
| $ | 837,256 |
| | $ | (403,008 | ) | | $ | 434,248 |
| | $ | 845,728 |
| | $ | (382,367 | ) | | $ | 463,361 |
|
Amortization expense for trademarks and other intangible assets was $30.9 million, $31.8 million and $29.0 million for the fiscal years ended April 28, 2013, April 29, 2012 and April 27, 2011, respectively. Based upon the amortizable intangible assets recorded on the balance sheet as of April 28, 2013, amortization expense for each of the next five fiscal years is estimated to be approximately $31 million.
Intangible assets not subject to amortization at April 28, 2013 totaled $981.3 million and consisted of $846.9 million of trademarks, $115.0 million of recipes/processes, and $19.4 million of licenses. Intangible assets not subject to amortization at April 29, 2012 totaled $1,035.3 million and consisted of $895.9 million of trademarks, $119.3 million of recipes/processes, and $20.1 million of licenses. The reduction in intangible assets, not subject to amortization expense, since April 29, 2012 is primarily due to translation adjustments and $14.6 million of intangible assets allocated to discontinued operations.
