On January 31, 2013, the Company had previously acquired  the United States based  SKIPPY ®  peanut butter business from  Unilever United States Inc. for a purchase price of $665.4  million in cash. This acquisition included the Little Rock,  Arkansas manufacturing facility and all sales worldwide,  except sales in Mainland China. The purchase price was  funded by the Company with cash on hand generated from  operations and liquidating marketable securities. The acquisition was accounted for as a business combina- tion using the acquisition method. The Company estimated  the acquisition date fair values of the assets acquired and  liabilities assumed, using independent appraisals and other  analyses, and determined final working capital adjustments.  Therefore, an allocation of the final purchase price to the  acquired assets, liabilities, and goodwill is presented in the  table below. Goodwill is calculated as the excess of the purchase price  over the fair value of the net assets recognized. The goodwill  recorded as part of the acquisition primarily reflects the  value of the assembled workforce, cost synergies, and the  potential to integrate and expand existing product lines. The  goodwill balance is expected to be deductible for income  tax purposes. The goodwill and intangible assets have been  allocated to the Grocery Products and International & Other  reporting segments. The Company recognized approximately $7.7 million of trans- action costs in fiscal year 2013 (excluding transitional service  expenses) related to the acquisition and the charges were  reported in selling, general and administrative expense in the  Consolidated Statement of Operations. Operating results for both of these  SKIPPY ®  acquisitions have  been included in the Company’s Consolidated Statements  of Operations from the date of acquisition and are primarily  reflected in the Grocery Products and International & Other  reporting segments. The China based business contributed an  incremental $28.9 million of net sales for fiscal year 2014. The  United States based business contributed an incremental $86.5  million of net sales for the first quarter of fiscal year 2014, and  an incremental $272.8 million of net sales for fiscal year 2013. SKIPPY ®  is a well-established brand that allows the Company  to expand its presence in the center of the store with a non- meat protein product and reinforces the Company’s balanced  product portfolio. The acquisition also provides the opportunity  to strengthen the Company’s global presence and complements  the international sales strategy for the  SPAM ®  family of products. Pro forma results of operations are not presented, as no acquisi- tions in fiscal years 2014, 2013, or 2012 were considered material,  individually or in the aggregate, to the consolidated Company. Principal components of inventories are: The changes in the carrying amount of goodwill for the fiscal years ended October 26, 2014, and October 27, 2013, are presented  in the table below. The additions during the fiscal year ended October 26, 2014, are due to the acquisitions of CytoSport on  August 11, 2014, and the China based  SKIPPY ®  peanut butter business on November 26, 2013. The additions during the prior  fiscal year ended October 27, 2013, are entirely due to the acquisition of the United States based  SKIPPY ®  peanut butter business  on January 31, 2013. Grocery  Refrigerated  Specialty  International  (in thousands)  Products  Foods  JOTS  Foods  & Other  Total Balance as of October 28, 2012  $ 123,316  $96,643  $ 203,214  $ 207,028  $  674  $ 630,875 Goodwill acquired  199,626  –  –  –  103,971  303,597 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 45 Goodwill and Intangible Assets Note F  October 26,  October 27, (in thousands)  2014 2013 Finished products  $ 604,946 $544,858 Raw materials and work-in-process  274,105  248,411 Materials and supplies  175,501  174,708 Total  $1,054,552 $967,977 Note E Inventories (in thousands) Inventory  $ 49,156 Property, plant and equipment  48,461 Intangible assets   264,500 Goodwill   303,597 Current liabilities  (299) Purchase price  $665,415