Hormel Foods 2011 Annual Report Download - page 45

4
3
Hormel Foods Corporation
No
t
e
E
INVENT
O
R
I
E
S
P
rincipal components o
f
inventories are:
O
ctober
30,
O
c
tober 31,
(
in thousands
)
20
11
20
1
0
F
inished
p
roducts
$
463,491 $431,285
R
aw materials and work-in-
p
roces
s
251,324
2
05,355
M
aterials and su
pp
lie
s
171,008
1
57,131
T
o
ta
l
$
885,823 $793,771
No
t
e
F
GOO
DW
I
LL AND INTAN
G
I
BLE
A
SS
ET
S
T
he chan
g
es in the carryin
g
amount o
f
g
oodwill
f
or the
fi
s
-
cal years ended
O
c
tober
3
0
,
2011
,
and
O
ctober
3
1
,
2010
,
are
presented in the table below.
T
h
e additions durin
g
fiscal
20
1
0
primarily relate to the
C
ountr
y
C
rock
®
acqu
i
s
i
t
i
on.
T
h
e carrying amounts
f
or inde
fi
nite-lived intangible assets
a
re as
f
ollows
.
October 30
,
O
ctober
3
1,
(
in thousands
)
2
0
1
1
2
0
1
0
B
rand/tradename/trademark
s
$
9
4
,081
$
9
4
,3
7
3
O
t
her
i
ntang
i
bles
7,98
4
7,98
4
T
o
t
al
$
102,0
65
$
1
02
,3
5
7
D
u
rin
g
the fourth quarter of fiscal years
20
11 and
20
1
0
, the
C
ompany completed the required annual impairment tests
of indefinite-lived intan
g
ible assets and
g
oodwill, with no
material impairment indicated. Useful lives of intan
g
ible
a
ssets were also reviewed durin
g
this process, with no
c
hanges identified
.
A
mortization ex
p
ense for the fiscal years ended
O
ctober
3
0,
20
11
,
O
c
tober
3
1, 2010, and
O
ctober 25, 2009, was
$
9.5 mi
l
-
lion,
$
10.5 million, and
$
10.4 million, res
p
ectively.
E
stimated annual amortization ex
p
ense
(
in thousands
)
for the
fi
ve
fi
scal years a
f
ter October 30
,
2011
,
is as follows:
2
0
1
2
$8,90
6
201
3
7,69
9
2
0
1
4
6
,
3
0
3
2015
3
,192
2
0
1
6
1
,02
3
G
rocery
R
e
f
rigerate
d
(
in thousands
)
P
roducts Food
s
J
O
T
S
S
p
ecialty Foods
A
ll
O
ther
T
o
tal
B
a
lance as o
f
O
ctober 25, 2009
$
123,316
$
85,923
$
203,21
4
$
207,02
8
$
67
4
$
620,15
5
Goodwill ac
q
uired
–
8
,86
8
–
–
–
8,86
8
B
a
lance as o
f
O
ctober 31, 2010
$
123,316
$
94,79
1
$
203,21
4
$
207,02
8
$
67
4
$
629,023
Goodwill ac
q
uired
–
1,86
1
–
–
–
1,86
1
Balance as o
f
October 30, 2011
$
1
23,316
$
9
6,65
2
$
203,21
4
$
2
07,028
$
6
74
$
6
30,88
4
T
h
e gross carrying amount and accumulated amortization for definite-lived intangible assets are presented in the table below
.
O
ctober
30
,
20
1
1
O
ctober
3
1
,
201
0
G
r
oss
We
ig
hted
-
G
r
oss
W
e
ig
hted-
C
arryin
g
A
ccumulate
d
Avera
ge
C
arrying
A
c
cumulated
A
v
erage
(
in thousands
)
A
moun
t
Amortization Life
(
in Years
)
A
moun
t
A
m
ortizatio
n
L
i
fe
(
in Years
)
Customer lists
/
relationshi
p
s
$
22,37
8
$
(12,556)
1
0.9
$
22,378
$
(
10,194) 10.9
Proprietary software & technolo
g
y22,00
0
(14,822)
9
.3 23,650
(
13,974) 9.0
Formulas & reci
p
es
1
8,35
4
(10,047) 8.
8
22,40
4
(
11,914)
8
.
5
Non-com
p
ete covenant
s
5
,37
0
(5,124)
4
.6
7
,200
(
6,275)
4
.
4
D
i
stribution network
4
,12
0
(3,371)
1
0.
0
4
,120
(
2,959) 10.
0
O
t
her intan
g
ibles 8,66
0
(4,981) 7.
4
9,740
(
5,011) 6.8
T
o
tal
$
80,882
$
(50,901)
9
.1
$
8
9,49
2
$
(
50,327)
8
.8