Goodwill and Other Identifiable Intangible Assets

12 Months Ended

May 29, 2011

Goodwill and Other Identifiable Intangible Assets [Abstract]

GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS


8.	GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS

The change in the carrying amount of goodwill for fiscal 2011 and 2010 was as follows:


	Consumer		Commercial
	Foods		Foods			Total

Balance as of May 31, 2009	$	3,352.1	$	129.3		$	3,481.4
Acquisitions		66.4		—			66.4
Translation and other		2.8		(0.7	)		2.1

Balance as of May 30, 2010	$	3,421.3	$	128.6		$	3,549.9

Acquisitions		51.5		—			51.5
Translation and other		6.9		1.1			8.0

Balance as of May 29, 2011	$	3,479.7	$	129.7		$	3,609.4

Other identifiable intangible assets were as follows:


	2011				2010
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization

Non-amortizing intangible assets	$	771.2	$	—	$	771.2	$	—
Amortizing intangible assets		213.9		48.8		134.8		31.2

Total	$	985.1	$	48.8	$	906.0	$	31.2

Non-amortizing intangible assets are comprised of brands and trademarks.

Amortizing intangible assets, carrying a weighted average life of approximately 13 years, are principally composed of licensing arrangements and customer relationships. For fiscal 2011, 2010, and 2009, we recognized amortization expense of $17.8 million, $7.8 million, and $6.6 million, respectively. Based on amortizing assets recognized in our balance sheet as of May 29, 2011, amortization expense is estimated to average approximately $16.5 million for each of the next five years, with a high expense of $18.3 million in fiscal year 2012 and decreasing to a low expense of $14.4 million in fiscal year 2016.

In connection with the acquisition of American Pie LLC in fiscal 2011, we allocated approximately $51.5 million of the purchase price to deductible goodwill and approximately $61.3 million to intangible assets (all of which is presented in the Consumer Foods segment). In fiscal 2011, we also acquired $18.0 million of intangible assets in support of manufacturing reliability and other process technologies.

In connection with the acquisition of Elan in fiscal 2010, we allocated approximately $66.4 million of the purchase price to non-deductible goodwill and approximately $33.6 million to intangible assets (all of which is presented in the Consumer Foods segment).

In connection with the acquisition of Lamb Weston BSW in fiscal 2009, we allocated approximately $18.8 million of the purchase price to deductible goodwill and approximately $11.1 million to intangible assets (all of which is presented in the Commercial Foods 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.

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