GOODWILL AND INTANGIBLE ASSETS, NET

12 Months Ended

Jul. 29, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 6—GOODWILL AND INTANGIBLE ASSETS, NET

The Company has five goodwill reporting units: two of which represent separate operating segments and are aggregated within the Wholesale reportable segment (U.S. Wholesale and Canada Wholesale); one of which is a separate Retail operating and reportable segment and two of which are separate operating segments (Woodstock Farms and Blue Marble Brands) that do not meet the criteria for being disclosed as separate reportable segments and are included in the Other segment. The Canada Wholesale operating segment, which is aggregated with U.S. Wholesale, would not meet the quantitative thresholds for separate reporting if it did not meet the aggregation criteria.

In the fourth quarter of fiscal 2023, 2022 and 2021 the Company performed its annual goodwill qualitative impairment review and determined that a quantitative impairment test was not required for any of its reporting units.

Goodwill and Intangible Assets Changes

Changes in the carrying value of Goodwill by reportable segment that have goodwill consisted of the following:


(in millions)	Wholesale		Other		Total
Goodwill as of July 31, 2021(1)(2)	$	10	$	10	$	20


Change in foreign exchange rates	—		—		—
Goodwill as of July 30, 2022(1)(2)	10		10		20
Change in foreign exchange rates	—		—		—
Goodwill as of July 29, 2023(1)(2)	$	10	$	10	$	20

(1) Wholesale amounts are net of accumulated goodwill impairment charges of $717 million for fiscal 2021, 2022 and 2023.

(2) Other amounts are net of accumulated goodwill impairment charges of $10 million for fiscal 2021, 2022 and 2023.

Identifiable intangible assets, net consisted of the following:


	2023						2022
(in millions)	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Amortizing intangible assets:
Customer relationships	$	1,007	$	354	$	653	$	1,007	$	294	$	713
Pharmacy prescription files	33		22		11		33		18		15

Operating lease intangibles	6		5		1		6		4		2
Trademarks and tradenames	89		57		32		84		51		33
Total amortizing intangible assets	1,135		438		697		1,130		367		763
Indefinite lived intangible assets:
Trademarks and tradenames	25		—		25		56		—		56
Intangibles assets, net	$	1,160	$	438	$	722	$	1,186	$	367	$	819

The Company performed annual qualitative reviews of its indefinite lived trademarks and tradenames in fiscal 2022 and 2021, which indicated a quantitative assessment was not required.

In the fourth quarter of fiscal 2023, the Company decided to rationalize certain of its brands within its Blue Marble Brands portfolio, resulting in an abandonment of certain brands and a shortened life of remaining brand-related intangible assets. These changes are part of an effort for the Company to focus on its core private brand offerings. As a result, the Company recorded a $25 million intangible asset impairment charge in fiscal 2023 and began amortizing the remaining intangible assets associated with its Blue Marble Brands portfolio. The fair values utilized in the Company’s quantitative assessment were determined using the income approach, discounting projected future net cash flows based on management’s expectations of the current and future operating environment for each brand. The impairment charge is recorded within Loss (gain) on sale of assets and other asset charges in the Consolidated Statements of Operations.

Amortization expense was $72 million, $72 million and $78 million for fiscal 2023, 2022 and 2021, respectively. The estimated future amortization expense for each of the next five fiscal years and thereafter on amortizing intangible assets existing as of July 29, 2023 is as shown below:


Fiscal Year:	(in millions)
2024	$	74
2025	71
2026	67
2027	64
2028	62
Thereafter	359
	$	697