CAG · 10-K · 2026A · Full report

Marketing Costs

CONAGRA BRANDS INC. · 2026-07-15 · Importance 19 · Surprise 6 · In source text

Conagra recognizes advertising, trade promotions and consumer incentives primarily as a reduction of revenue and records these liabilities based on estimated redemption and customer practices. The company had trade promotion and advertising liabilities of $116.0 million as of May 31, 2026, and uses historical data and local customer pricing practices to estimate accruals. Differences between estimated and actual redemptions are adjusted prospectively, and management states changes in any individual program would not be material to results. This reflects meaningful working-capital and gross-to-net revenue dynamics across retail and consumer channels.

Key facts

• SG&A expenses totaled $1.44 billion for fiscal 2026, a decrease of $97.9 million compared to fiscal 2025. source
• SG&A increased short-term incentive expense by $41.6 million and advertising and promotion expense by $16.2 million in fiscal 2026 vs fiscal 2025. source
• We have recognized trade promotion and advertising liabilities of $116.0 million as of May 31, 2026. source
• SG&A for fiscal 2026 included net charges of $33.8 million for restructuring, net benefit of $37.4 million related to legacy legal matters, $8.1 million separation of CEO charges, and $5.4 million environmental charges. source

Impact estimates