Goodwill and Other Intangible Assets

9 Months Ended

Jan. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

The following table summarizes our other intangible assets and related accumulated amortization and impairment charges including foreign currency exchange adjustments.


	January 31, 2020										April 30, 2019
	Acquisition Cost		Accumulated Amortization/Impairment Charges/Foreign Currency Exchange		Net		Acquisition Cost		Accumulated Amortization/Impairment Charges/Foreign Currency Exchange		Net
Finite-lived intangible assets subject to amortization:
Customer and contractual relationships	$	4,471.1	$	1,302.8	$	3,168.3	$	4,471.1	$	1,156.8	$	3,314.3
Patents and technology	168.5		135.6		32.9		168.5		127.4		41.1
Trademarks	502.0		188.0		314.0		499.9		166.9		333.0
Total intangible assets subject to amortization	$	5,141.6	$	1,626.4	$	3,515.2	$	5,139.5	$	1,451.1	$	3,688.4
Indefinite-lived intangible assets not subject to amortization:
Trademarks	$	3,319.0	$	342.8	$	2,976.2	$	3,321.1	$	290.7	$	3,030.4
Total other intangible assets	$	8,460.6	$	1,969.2	$	6,491.4	$	8,460.6	$	1,741.8	$	6,718.8

We review goodwill and other indefinite-lived intangible assets at least annually on February 1 for impairment, and more often if indicators of impairment exist.

During the third quarter of 2020, we began our annual planning cycle, which was not complete as of January 31, 2020; however, certain brand-level decisions were made during the quarter that we evaluated to determine whether the carrying value of certain indefinite-lived intangible assets more likely than not exceeded fair value. As a result, we recognized an impairment charge of $52.4 related to the Natural Balance brand within the U.S. Retail Pet Foods segment due to a decline in current year and long-term net sales expectations and the royalty rate used in the interim analysis, primarily driven by the market environment and re-positioning of this brand within the Pet Foods brand portfolio. This charge was included as a noncash charge in our Condensed Statement of Consolidated Income. Additionally, we reassessed the long-term strategic expectations for the Natural Balance brand and will reclassify this brand as a finite-lived intangible asset as of February 1, 2020, resulting in annual amortization expense of $4.5.

As of January 31, 2020, there were no other indicators of impairment, and as a result, we do not believe that our reporting units or any of our remaining indefinite-lived intangible assets are more likely than not impaired. However, the goodwill and indefinite-lived trademarks within the U.S. Retail Pet Foods segment, inclusive of the recently acquired Ainsworth business, remain susceptible to future impairment charges due to the narrow differences between fair value and carrying value. Any significant adverse change in our near or long-term projections or macroeconomic conditions could result in future impairment charges. The carrying values of the goodwill and indefinite-lived intangible assets within the U.S. Retail Pet Foods segment were $2.4 billion and $1.4 billion, respectively, as of January 31, 2020.

During the third quarter of 2019, we recognized a noncash impairment charge of $107.2 related to certain indefinite-lived intangible assets within the U.S. Retail Pet Foods segment.