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Goodwill And Other Intangible Assets
 3 Months Ended
Aug. 25, 2024
Goodwill And Other Intangible Assets [Abstract]  
Goodwill And Other Intangible Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In Millions
Aug. 25, 2024
May 26, 2024
Goodwill
$
14,787.7
$
14,750.7
Other intangible assets:
Intangible assets not subject to amortization:
Brands and other indefinite-lived intangibles
6,735.9
6,728.6
Intangible assets subject to amortization:
Customer relationships and other finite-lived intangibles
402.9
402.2
Less accumulated amortization
(156.0)
(150.9)
Intangible assets subject to amortization, net
246.9
251.3
Other intangible assets
6,982.8
6,979.9
Total
$
21,770.5
$
21,730.6
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In Millions
North
America
Retail
North
America
Pet
North
America
Foodservice
International
(a)
Corporate
and Joint
Ventures
Total
Balance as of May 26, 2024
$
6,541.9
$
6,062.8
$
805.5
$
917.1
$
423.4
$
14,750.7
Other activity, primarily
 
 
foreign currency translation
1.4
-
-
23.0
12.6
37.0
Balance as of Aug. 25, 2024
$
6,543.3
$
6,062.8
$
805.5
$
940.1
$
436.0
$
14,787.7
 
 
 
 
 
 
In Millions
Total
Balance as of May 26, 2024
$
6,979.9
Foreign currency translation, net of amortization
2.9
Balance as of Aug. 25, 2024
$
6,982.8
 
(4) Goodwill and Other Intangible Assets
The components of goodwill and other intangible assets are as follows:
Based on
 
the carrying
 
value of
 
finite-lived intangible
 
assets as
 
of August
 
25, 2024,
 
annual amortization
 
expense for
 
each of
 
the next
five fiscal years is estimated to be approximately $
20
 
million.
The changes in the carrying amount of goodwill during the first quarter of fiscal 2025
 
were as follows:
The changes in the carrying amount of other intangible assets during the first quarter
 
of fiscal 2025 were as follows:
Our
 
annual
 
goodwill
 
and
 
indefinite-lived
 
intangible
 
assets
 
impairment
 
test
 
was
 
performed
 
on
 
the
 
first
 
day
 
of
 
the
 
second
 
quarter
 
of
fiscal 2024. As a
 
result of lower future profitability
 
projections for our Latin
 
America reporting unit, we
 
determined that the
 
fair value
of the
 
reporting
 
unit was
 
less than
 
its book
 
value
 
and
 
recorded a
 
$
117.1
 
million non-cash
 
goodwill
 
impairment
 
charge.
 
In addition,
during the
 
fourth quarter
 
of fiscal
 
2024, we
 
executed our
 
fiscal 2025
 
planning process
 
and preliminary
 
long-range planning
 
process,
which resulted in
 
lower future sales and
 
profitability projections for
 
the businesses supporting
 
our
Top
 
Chews
,
True Chews
, and
EPIC
brand intangible assets.
 
As a result of
 
this triggering event,
 
we performed an
 
interim impairment assessment
 
of these assets
 
as of May
26, 2024,
 
and determined
 
that the
 
fair value
 
of these
 
brand intangible
 
assets no
 
longer exceeded
 
the carrying
 
values of
 
the respective
assets, resulting in $
103.1
 
million of non-cash impairment charges.
 
We recorded
 
impairment charges in restructuring,
 
impairment, and
other exit
 
costs in
 
our Consolidated
 
Statements of
 
Earnings. Our
 
estimates of
 
the fair
 
values were
 
determined based
 
on a
 
discounted
cash flow model
 
using inputs which
 
included our long-range
 
cash flow projections
 
for the businesses,
 
royalty rates, weighted
 
-average
cost of capital rates, and tax rates. These fair values are Level 3 assets in the fair value hierarchy.
All other intangible
 
asset fair values
 
were substantially
 
in excess of
 
the carrying
 
values, except for
 
the
Uncle Toby’s
 
brand intangible
asset. In
 
addition,
 
while having
 
significant
 
coverage as
 
of our
 
fiscal 2024
 
assessment date,
 
the
Progresso
,
Nudges
, and
True
 
Chews
brand intangible assets had risk of decreasing coverage. We
 
will continue to monitor these businesses for potential impairment.
The carrying amounts of goodwill within the International segment as of
 
May 26, 2024, and August 25, 2024, were net of
accumulated impairment losses of $
117.1
 
million.