Note 5 - Goodwill and Other Identifiable Intangible Assets

3 Months Ended

Aug. 27, 2023

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

5. GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS

The change in the carrying amount of goodwill for the first quarter of fiscal 2024 was as follows:

	Grocery & Snacks		Refrigerated & Frozen		International		Foodservice		Total
Balance as of May 28, 2023	$	4,692.4	$	5,469.5	$	283.5	$	732.8	$	11,178.2
Currency translation		—		—		—		—		—
Balance as of August 27, 2023	$	4,692.4	$	5,469.5	$	283.5	$	732.8	$	11,178.2

Other identifiable intangible assets were as follows:

	August 27, 2023				May 28, 2023
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Non-amortizing intangible assets
Brands and trademarks	$	2,470.6	$	—	$	2,470.6	$	—
Amortizing intangible assets
Customer relationships and intellectual property		1,232.2		510.4		1,232.2		496.9
	$	3,702.8	$	510.4	$	3,702.8	$	496.9

During the first quarter of fiscal 2023, management reorganized its reporting structure for certain brands within two reporting units in our Refrigerated & Frozen segment. The change in management reporting required us to reassign assets and liabilities, including goodwill, between the reporting units, complete a goodwill impairment test both prior to and subsequent to the change, and evaluate other assets in the reporting units for impairment, including indefinite-lived intangibles (brand names and trademarks). The fair value of our indefinite-lived intangibles was determined using the "relief from royalty" methodology. As a result of our impairment tests, we recognized goodwill impairment charges within SG&A expenses of $141.7 million within our Sides, Components, Enhancers reporting unit in the first quarter of fiscal 2023. In addition, we recognized an impairment charge within SG&A expenses of $244.0 million related to our Birds Eye^® brand name in the first quarter of fiscal 2023.

 Amortizing intangible assets carry a remaining weighted average life of approximately 17 years. Amortization expense was $13.5 million and $14.8 million for the first quarter of fiscal 2024 and 2023, respectively. Based on amortizing assets recognized in our Condensed Consolidated Balance Sheet as of August 27, 2023, amortization expense is estimated to average $46.2 million for each of the next five years.