Goodwill And Other Intangible Assets

12 Months Ended

Sep. 27, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

The following table reflects goodwill activity for fiscal 2014 and 2013:



in millions
	Chicken			Beef			Pork		Prepared Foods			International			Unallocated		Consolidated
Balance at September 29, 2012
Goodwill	$	909		$	1,123		$	317	$	63		$	68		$	—	$	2,480
Accumulated impairment losses	—			(560		)	—		—			(29		)	—		(589		)
	909			563			317		63			39			—		1,891
Fiscal 2013 Activity:
Acquisition	—			—			—		12			—			—		12
Impairment losses	—			—			—		—			—			—		—
Currency translation and other	(1		)	—			—		—			—			—		(1		)
Balance at September 28, 2013
Goodwill	908			1,123			317		75			68			—		2,491
Accumulated impairment losses	—			(560		)	—		—			(29		)	—		(589		)
	$	908		$	563		$	317	$	75		$	39		$	—	$	1,902

Fiscal 2014 Activity:
Acquisition	$	—		$	—		$	—	$	18		$	5		$	4,804	$	4,827
Reclass to assets held for sale	—			—			—		—			(16		)	—		(16		)
Impairment losses	—			—			—		—			(5		)	—		(5		)
Currency translation and other	(1		)	—			—		(1		)	—			—		(2		)
Balance at September 27, 2014
Goodwill	907			1,123			317		92			57			4,804		7,300
Accumulated impairment losses	—			(560		)	—		—			(34		)	—		(594		)
	$	907		$	563		$	317	$	92		$	23		$	4,804	$	6,706

On August 28, 2014, we acquired and consolidated Hillshire Brands. The unallocated portion of goodwill is attributable to our acquisition of Hillshire Brands. The allocation of goodwill to our reportable segments is pending finalization of the expected synergies and the impact of the synergies to our reporting units.

The following table reflects other intangible assets by type at September 27, 2014, and September 28, 2013:



in millions
	2014		2013
Amortizable intangible assets:
Brands and trademarks	$	611	$	69
Customer relationships	570		12
Patents, intellectual property and other	136		140
Non-compete agreements	6		—
Land use rights	8		8
Total gross amortizable intangible assets	$	1,331	$	229
Less accumulated amortization	133		107
Total net amortizable intangible assets	$	1,198	$	122
Brands and trademarks not subject to amortization	4,078		16
Total intangible assets	$	5,276	$	138

Beginning with the date benefits are realized, amortizable intangible assets are generally amortized using the straight-line method over their estimated period of benefit of 20 years or less. Amortization expense of $26 million, $17 million and $16 million was recognized during fiscal 2014, 2013 and 2012, respectively. We estimate amortization expense on intangible assets for the next five fiscal years subsequent to September 27, 2014, will be: 2015 - $94 million; 2016 - $85 million; 2017 - $80 million; 2018 - $79 million; 2019 - $75 million.

- 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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