Goodwill and Other Intangible Assets

12 Months Ended

Apr. 30, 2011

Goodwill and Other Intangible Assets [Abstract]

Note G: Goodwill and Other Intangible Assets

A summary of changes in the Company’s goodwill during the years ended April 30, 2011 and 2010, by reportable segment is as follows:


						International,
				U.S. Retail		Foodservice,
	U.S. Retail			Consumer		and Natural
	Coffee			Foods		Foods		Total

Balance at May 1, 2009	$	1,629,873		$	1,030,523	$	130,995	$	2,791,391
Acquisitions		5,540			289		265		6,094
Foreign currency translation adjustments		0			3,583		6,662		10,245

Balance at April 30, 2010	$	1,635,413		$	1,034,395	$	137,922	$	2,807,730
Foreign currency translation adjustments		(47	)		1,772		3,291		5,016

Balance at April 30, 2011	$	1,635,366		$	1,036,167	$	141,213	$	2,812,746

The Company’s other intangible assets and related accumulated amortization and impairment charges are as follows:


			April 30, 2011						April 30, 2010

			Accumulated						Accumulated
			Amortization /						Amortization /
	Acquisition		Impairment				Acquisition		Impairment
	Cost		Charges		Net		Cost		Charges		Net

Finite-lived intangible assets subject to amortization:
Customer and contractual relationships	$	1,180,000	$	168,125	$	1,011,875	$	1,180,000	$	95,722	$	1,084,278
Patents and technology		134,970		25,980		108,990		134,970		15,874		119,096
Trademarks		35,153		6,652		28,501		29,222		3,491		25,731

Total intangible assets subject to amortization	$	1,350,123	$	200,757	$	1,149,366	$	1,344,192	$	115,087	$	1,229,105

Indefinite-lived intangible assets not subject to amortization:
Trademarks	$	1,799,862	$	9,218	$	1,790,644	$	1,805,793	$	8,383	$	1,797,410

Total other intangible assets	$	3,149,985	$	209,975	$	2,940,010	$	3,149,985	$	123,470	$	3,026,515

Amortization expense for finite-lived intangible assets was $73,438, $72,417, and $38,094 in 2011, 2010, and 2009, respectively. The weighted-average useful life of the finite-lived intangible assets is 19 years. Based on the amount of intangible assets subject to amortization at April 30, 2011, the estimated amortization expense for each of the succeeding five years is approximately $73,000.

Pursuant to FASB ASC 350, the Company is required to review goodwill and other indefinite-lived intangible assets at least annually for impairment. The annual impairment review was performed as of February 1, 2011. Goodwill impairment is tested at the reporting unit level which is the Company’s operating segments. Impairment of $17,599, $11,658, and $1,491 was recognized related to certain intangible assets in 2011, 2010, and 2009, respectively.

The majority of the impairment recognized in 2011 was recognized in the third quarter when the Company became aware of a significant future reduction in its Europe’s Best frozen vegetable business with a customer in Canada. This was subsequent to declines in net sales and profit margins of the frozen fruit and vegetable business during 2011. The Company determined that these events constituted a potential indicator of impairment of the Europe’s Best indefinite-lived and finite-lived intangible assets recognized in its International, Foodservice, and Natural Foods segment under FASB ASC 350 and FASB ASC 360, respectively.

The Company determined the estimated fair value of the Europe’s Best indefinite-lived trademark based on an analysis of the projected cash flows for the brand, discounted at a rate developed using a risk-adjusted, weighted-average cost of capital methodology. As a result, an impairment charge of $3,621 was recognized in 2011 to reduce this trademark to its estimated fair value. During 2010, an impairment charge of $7,282 was recognized related to the Europe’s Best trademark after the Company became aware of a significant reduction in the frozen fruit business.

The Company determined that the carrying value of the finite-lived customer relationship intangible asset associated with the Europe’s Best business was not recoverable based on the undiscounted projected net cash flows expected to be generated from the asset. The estimated fair value of the customer relationship was then calculated based on a discounted cash flow model which utilized a forecast of future revenues and expenses related to the intangible asset. As a result, an impairment charge of $13,534 was recognized in 2011 to reduce the carrying value of the customer relationship to its estimated fair value. No additional impairment was recognized related to Europe’s Best as a result of the February 1, 2011, impairment test, and no further indicators of potential impairment have been identified subsequent to that date.

- Definition

Discloses 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 or 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. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.

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