CAG · 10-K · 2026A · Full report

Pension and Postretirement Income

CONAGRA BRANDS INC. · 2026-07-15 · Importance 54 · Surprise 66 · In source text

Pension and postretirement non-service income was $45.9 million in fiscal 2026, an increase of $20.0 million versus fiscal 2025. Fiscal 2026 benefited from lower interest costs due to a partial transfer of U.S. defined benefit pension obligations via purchase of an annuity contract in Q4 fiscal 2025 and included a $22.5 million net benefit related primarily to year-end remeasurement of certain hourly pension plan liabilities. The company details discount rate and expected return assumptions and quantifies sensitivity (a 50 bps change impacts annual pension expense by $3.3–$3.7 million and expected return sensitivity by $9.3 million). These pension items materially impacted non-service income trends (>10% YoY change).

Key facts

• We expect to make payments totaling approximately $10.3 million to fund our pension plans and $6.1 million to fund postretirement plans in fiscal 2027. source
• Net benefit of $22.5 million ($17.1 million after-tax) primarily related to our year-end remeasurement of certain hourly pension plan liabilities. source
• A 50-basis point increase in discount rate as of end of fiscal 2026 would increase annual pension expense by $3.3 million; a 50-basis point decrease would decrease annual pension expense by $3.7 million. source
• Selected weighted-average expected long-term rate of return on plan assets of 5.89% for fiscal 2026 and 5.71% for fiscal 2027; a 50-basis point increase/decrease as of the beginning of fiscal 2027 would decrease/increase annual pension expense by $9.3 million. source
• Aggregate funded pension asset was $276.7 million and aggregate unfunded postretirement benefit obligation was $44.3 million as of May 31, 2026. source
• Pension and postretirement non-service income was $45.9 million in fiscal 2026, an increase of $20.0 million compared to fiscal 2025. source
• We contributed $11.4 million, $11.9 million, and $12.2 million to our pension plans in fiscal 2026, 2025, and 2024, respectively, and anticipate contributing approximately $10.3 million in fiscal 2027. source
• Weighted-average discount rate for interest cost component of pension expense was 5.41% for fiscal 2026 and 5.51% for fiscal 2025; service cost component rates were 6.17% for fiscal 2026 and 5.72% for fiscal 2025; selected rates for fiscal 2027 were 5.93% (service) and 5.20% (interest). source

Impact estimates