CAG · 10-K · 2026A · Full report

Goodwill and Intangible Impairments

CONAGRA BRANDS INC. · 2026-07-15 · Importance 96 · Surprise 100 · In source text

As of May 31, 2026, Conagra reported goodwill of $8.12 billion, indefinite-lived intangibles of $1.25 billion and definite-lived intangibles of $577.4 million and recorded a $2.38 billion goodwill impairment in its Refrigerated & Frozen reporting unit in fiscal 2026, leaving approximately $4.7 billion carrying value in that unit. The company recorded indefinite-lived intangible impairments of $547.2 million in fiscal 2026 (and $72.1 million in 2025 and $430.2 million in 2024), primarily related to brands acquired as part of the Pinnacle acquisition (recorded at fair value in fiscal 2019). For the Refrigerated & Frozen reporting unit Conagra used a discount rate of 11.0% and a long-term growth rate of 1.5%; for domestic brands with 10% or less excess fair value it applied discount rate assumptions of 11.50%–13.50%, long-term growth of 0.0%–2.0% and royalty rate assumptions of 1.0%–11.0%. Management cautions it remains susceptible to further impairments if long-term sales forecasts, royalty rates, or economic conditions (including interest rates) deteriorate and provided sensitivity metrics (e.g., a 50-basis-point increase in discount rate would reduce the reporting unit fair value by ~$120 million while a 100-basis-point royalty-rate change could swing certain brands by +$226.9M/−$215.8M); management will monitor assumptions while pursuing gross margin improvement and long-term sales growth.

Key facts

• In fiscal 2026, 2025, and 2024, we recorded total indefinite-lived intangibles impairments of $547.2 million, $72.1 million, and $430.2 million, respectively. source
• Charges totaling $2.93 billion ($2.73 billion after-tax) related to the impairments of goodwill and certain brand intangible assets. source
• In fiscal 2026, we recorded goodwill impairments of $2.38 billion in our Refrigerated & Frozen reporting unit. source
• As of May 31, 2026, we have goodwill of $8.12 billion, indefinite-lived intangibles of $1.25 billion and definite-lived intangibles of $577.4 million. source
• The remaining carrying value in our Refrigerated & Frozen reporting unit was approximately $4.7 billion as of May 31, 2026. source
• Charges of $72.1 million ($55.4 million after-tax) related to the impairments of certain brand intangible assets in fiscal 2025. source
• A 50-basis-point increase in the discount rate would decrease the aggregate fair value of the reporting unit by $120.0 million and a 50-basis-point decrease would increase it by $133.4 million. source
• A 100-basis-point increase in the royalty rate would increase the aggregate fair value of Brands (<10% cushion) by $226.9 million and a 100-basis-point decrease would decrease it by $215.8 million. source

Impact estimates