Goodwill And Other Intangible Assets

12 Months Ended

Oct. 01, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

The following table reflects goodwill activity for fiscal 2016 and 2015:



in millions
	Chicken			Beef			Pork		Prepared Foods		Other^(a)			Unallocated			Consolidated
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
Fiscal 2015 Activity:
Measurement period adjustments	—			—			—		—		—			(14		)	(14		)
Allocation of acquired goodwill	658			113			106		3,913		—			(4,790		)	—
Impairment losses	—			—			—		—		(23		)	—			(23		)
Currency translation and other	(2		)	—			—		—		—			—			(2		)
Balance at October 3, 2015
Goodwill	1,563			1,236			423		4,005		57			—			7,284
Accumulated impairment losses	—			(560		)	—		—		(57		)	—			(617		)
	$	1,563		$	676		$	423	$	4,005	$	—		$	—		$	6,667

Fiscal 2016 Activity:
Currency translation and other	2			—			—		—		—			—			2
Balance at October 1, 2016
Goodwill	1,565			1,236			423		4,005		57			—			7,286
Accumulated impairment losses	—			(560		)	—		—		(57		)	—			(617		)
	$	1,565		$	676		$	423	$	4,005	$	—		$	—		$	6,669

(a) Other included the goodwill from our foreign chicken operation.

On August 28, 2014, we acquired and consolidated Hillshire Brands. The unallocated portion of goodwill at September 27, 2014, is attributable to our acquisition of Hillshire Brands. During fiscal 2015, we recorded measurement period adjustments, which reduced goodwill by $14 million and completed the allocation of goodwill to our segments (see Note 3: Acquisitions and Dispositions).

The following table reflects intangible assets by type at October 1, 2016, and October 3, 2015:



in millions
	2016		2015
Amortizable intangible assets:
Brands and trademarks	$	590	$	594
Customer relationships	564		564
Patents, intellectual property and other	114		115
Land use rights	9		9
Total gross amortizable intangible assets	$	1,277	$	1,282
Less accumulated amortization	271		192
Total net amortizable intangible assets	$	1,006	$	1,090
Brands and trademarks not subject to amortization	4,078		4,078
Total intangible assets	$	5,084	$	5,168

Amortization expense of $80 million, $92 million and $26 million was recognized during fiscal 2016, 2015 and 2014, respectively. We estimate amortization expense on intangible assets for the next five fiscal years subsequent to October 1, 2016, will be: 2017 - $78 million; 2018 - $76 million; 2019 - $72 million; 2020 - $69 million; 2021 - $66 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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