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Goodwill and Intangible Assets | 12 Months Ended
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Oct. 25, 2015
Goodwill and Intangible Assets |
Goodwill and Intangible Assets | NOTE D Goodwill and Intangible Assets The changes in the carrying amount of goodwill for the fiscal years ended October 25, 2015, and October 26, 2014, are presented in the table below. Additions during fiscal year ended October 25, 2015 are entirely due to the acquisition of Applegate on July 13, 2015. The goodwill amounts are preliminary pending final purchase adjustments. The impairment charge is related to the Company’s assets held for sale. See additional discussion regarding the Company’s assets held for sale in Note E. Purchase adjustments during the year relate to the CytoSport acquisition. The additions during the prior fiscal year ended October 26, 2014, were due to the acquisitions of CytoSport on August 11, 2014, and the China based SKIPPY® peanut butter business on November 26, 2013.
| Grocery | Refrigerated |  | Specialty | International |
(in thousands) | Products | Foods | JOTS | Foods | & Other | Total
Balance as of October 27, 2013 | $ 322,942 | $ 96,643 | $ 203,214 | $ 207,028 | $ 104,645 | $ 934,472
Goodwill acquired | – | – | – | 263,829 | 28,105 | 291,934
Balance as of October 26, 2014 | $ 322,942 | $ 96,643 | $ 203,214 | $ 470,857 | $ 132,750 | $ 1,226,406
Goodwill acquired | – | 488,476 | – | – | – | 488,476
Purchase Adjustments | – | – | – | 7,096 | – | 7,096
Impairment charge | – | – | – | (21,537) | – | (21,537)
Product line Disposal | (521) | (435) | – | – | (1) | (957)
Balance as of October 25, 2015 | $ 322,421 | $ 584,684 | $ 203,214 | $ 456,416 | $ 132,749 | $ 1,699,484
The gross carrying amount and accumulated amortization for definite-lived intangible assets are presented in the table below. In fiscal year 2015, customer relationships of $25.1 million and non-compete agreements of $1.2 million were acquired during the third quarter related to Applegate. In fiscal year 2014, customer relationships of $21.6 million were acquired during the fourth quarter related to CytoSport and $2.6 million were acquired during the first quarter related to the China based SKIPPY® peanut butter business. Through the final purchase accounting valuation of CytoSport in fiscal year 2015, the value of the customer relationships was raised to $23.3 million.
| October 25, 2015 | October 26, 2014
| Gross |  | Weighted- | Gross |  | Weighted-
| Carrying | Accumulated | Avg Life | Carrying | Accumulated | Avg Life
(in thousands) | Amount | Amortization | (in Years) | Amount | Amortization | (in Years)
Customer lists/relationships | $ 83,190 | $ (13,939) | 12.1 | $ 67,540 | $ (19,336) | 11.0
Formulas and recipes | 7,490 | (6,865) | 7.2 | 17,854 | (15,955) | 8.8
Proprietary software and technology | 7,010 | (6,901) | 8.1 | 14,820 | (13,542) | 10.2
Other intangibles | 2,370 | (1,195) | 7.5 | 4,746 | (4,503) | 7.4
Total | $ 100,060 | $ (28,900) | 11.3 | $ 104,960 | $ (53,336) | 10.4
Amortization expense for the last three fiscal years was as follows:
(in millions) |
2015 | $ 8.1
2014 | 9.4
2013 | 9.5
Estimated annual amortization expense for the five fiscal years after October 25, 2015, is as follows:
(in millions) |
2016 | $ 8.2
2017 | 7.6
2018 | 7.0
2019 | 7.0
2020 | 6.8
The carrying amounts for indefinite-lived intangible assets are in the following table. The increase in fiscal year 2015 represents the fair value of the tradenames acquired with Applegate.
| October 25, | October 26,
(in thousands) | 2015 | 2014
Brand/tradename/trademarks | $ 748,075 | $ 495,282
Other intangibles | 7,984 | 7,984
Total | $ 756,059 | $ 503,266
During the fourth quarter of fiscal years 2015 and 2014, the Company completed the required annual impairment tests of indefinite-lived intangible assets and goodwill. The goodwill impairment charge referred to above was recorded in fiscal year 2015 and no impairment was indicated in fiscal year 2014. Useful lives of intangible assets were also reviewed during this process, with no changes identified.

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
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