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GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Nov. 29, 2015

Goodwill and Other Intangible Assets [Abstract]

(4) Goodwill and Other Intangible Assets

The components of goodwill and other intangible assets are as follows:

In Millions		Nov. 29, 2015		May 31, 2015
Goodwill	$	8,602.1	$	8,874.9
Other intangible assets:
Intangible assets not subject to amortization:
Brands and other indefinite-lived intangibles		4,083.0		4,262.1
Intangible assets subject to amortization:
Franchise agreements, customer relationships, and other finite-lived intangibles		524.8		544.0
Less accumulated amortization		(136.8)		(129.1)
Intangible assets subject to amortization, net		388.0		414.9
Other intangible assets		4,471.0		4,677.0
Total	$	13,073.1	$	13,551.9

Based on the carrying value of finite-lived intangible assets as of November 29, 2015, annual amortization expense for each of the next five fiscal years is estimated to be approximately $27 million.

The changes in the carrying amount of goodwill during fiscal 2016 were as follows:

In Millions		U.S. Retail		International		Convenience Stores and Foodservice		Joint Ventures		Total
Balance as of May 31, 2015	$	6,419.0	$	1,133.3	$	921.1	$	401.5	$	8,874.9
Divestiture		(180.2)		(4.3)		-		-		(184.5)
Other activity, primarily foreign
currency translation		-		(74.0)		-		(14.3)		(88.3)
Balance as of Nov. 29, 2015	$	6,238.8	$	1,055.0	$	921.1	$	387.2	$	8,602.1

The changes in the carrying amount of other intangible assets during fiscal 2016 were as follows:

In Millions		U.S. Retail		International		Joint Ventures		Total
Balance as of May 31, 2015	$	3,311.9	$	1,301.5	$	63.6	$	4,677.0
Divestiture		(119.4)		-		-		(119.4)
Other activity, primarily foreign currency translation		(1.8)		(84.7)		(0.1)		(86.6)
Balance as of Nov. 29, 2015	$	3,190.7	$	1,216.8	$	63.5	$	4,471.0

During the second quarter of fiscal 2016, we changed the date of our annual goodwill and indefinite-lived intangible asset impairment assessment from the first day of the third quarter to the first day of the second quarter to more closely align with the timing of our annual long range planning process. As of our fiscal 2016 assessment date, there was no impairment of any of our goodwill or indefinite-lived intangible assets as their related fair values were substantially in excess of the carrying values, except for the Mountain High and Uncle Toby's brand assets. The excess fair value above the carrying value of these brand assets is as follows:

In Millions		Carrying Value	Excess Fair Value Above Carrying Value
Mountain High	$	35.4	20%
Uncle Toby's	$	52.2	11%

We will continue to monitor these businesses for potential impairment.

- 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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