Goodwill and Other Intangible Assets

9 Months Ended

Feb. 27, 2022

Goodwill and Other Intangible Assets [Abstract]

Goodwill and Other Intangible Assets

(4) Goodwill and Other Intangible Assets

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

In Millions	Feb. 27, 2022		May 30, 2021
Goodwill	$	14,546.7	$	14,062.4
Other intangible assets:
Intangible assets not subject to amortization:
Brands and other indefinite-lived intangibles		6,731.2		6,628.1
Intangible assets subject to amortization:
Franchise agreements, customer relationships, and other finite-lived intangibles		403.3		823.4
Less accumulated amortization		(123.6)		(300.9)
Intangible assets subject to amortization, net		279.7		522.5
Other intangible assets		7,010.9		7,150.6
Total	$	21,557.6	$	21,213.0

Based on the carrying value of finite-lived intangible assets as of February 27, 2022, annual amortization expense for each of the next five fiscal years is estimated to be approximately $20 million.

During the third quarter of fiscal 2022, we changed our organizational and management structure to streamline our global operations. As a result of these changes, we reassessed our operating segments as well as our reporting units. Under our new organizational structure, our chief operating decision maker assesses performance and makes decisions about resources to be allocated to our segments at the North America Retail, International, Pet, and North America Foodservice operating segment level. See Note 17 for additional information on our operating segments.

The changes in the carrying amount of goodwill during the nine-month period ended February 27, 2022, were as follows:

In Millions	North America Retail		Pet		North America Foodservice		International		Joint Ventures		Total
Balance as of May 30, 2021	$	6,689.3	$	5,300.5	$	648.8	$	978.2	$	445.6	$	14,062.4
Acquisition		-		762.3		-		-		-		762.3
Divestitures		-		-		-		(198.8)		-		(198.8)
Other activity, primarily foreign currency translation		(6.3)		-		-		(39.1)		(33.8)		(79.2)
Balance as of Feb. 27, 2022	$	6,683.0	$	6,062.8	$	648.8	$	740.3	$	411.8	$	14,546.7

The changes in the carrying amount of other intangible assets during the nine-month period ended February 27, 2022, were as follows:

In Millions		Total
Balance as of May 30, 2021	$	7,150.6
Acquisition		370.0
Divestitures		(621.8)
Intellectual property intangible asset		210.4
Other activity, primarily foreign currency translation		(98.3)
Balance as of Feb. 27, 2022	$	7,010.9

Our annual goodwill and indefinite-lived intangible assets impairment test was performed on the first day of the second quarter of fiscal 2022, and we determined there was no impairment of our intangible assets as their related fair values were substantially in excess of the carrying values, except for the Uncle Toby’s brand intangible asset.

The excess fair value as of the fiscal 2022 test date of the Uncle Toby’s brand intangible asset is as follows:

In Millions		Carrying Value of Intangible Asset	Excess Fair Value as of Fiscal 2022 Test Date
Uncle Toby's	$	55.0	7%

In addition, while having significant coverage as of our fiscal 2022 assessment date, the Progresso, Green Giant, and EPIC brand intangible assets had risk of decreasing coverage. We will continue to monitor these businesses for potential impairment.

The organizational changes also resulted in changes in certain reporting units, one level below the segment level, and were considered a triggering event that required a goodwill impairment test during the third quarter of fiscal 2022. We determined there was no impairment of the goodwill of the impacted reporting units as their related fair values were substantially in excess of the carrying values.