KHC · 10-Q · 2026Q2 · Full report
Goodwill and Brand Impairments
Kraft Heinz Co · 2026-08-05 · Importance 71 · Surprise 60 · Contradicted
Kraft Heinz recorded $7.4 billion of impairment losses in the six months ended June 27, 2026, comprising $2.4 billion of goodwill impairments and $4.9 billion of indefinite-lived intangible-asset impairments. The impairments reduced reported operating income to a $5.3 billion loss and were recorded in SG&A, while adjusted operating income was $2.1 billion compared with $2.5 billion in the prior-year period. Goodwill carrying amounts totaling $19.7 billion were considered at heightened future-impairment risk, including $18.2 billion in reporting units with less than 5% excess fair value and brands totaling $12.8 billion with 20% or less excess fair value over carrying amounts. A 50-basis-point increase in discount rates would reduce the aggregate fair value of at-risk reporting units by $3.1 billion and brands by $0.9 billion.
Key facts
- Impairment losses were $(7,352) million for the three months ended June 27, 2026 and $(7,365) million for the six months ended June 27, 2026. source
- Impairment losses recorded: $(7,352) million for the three months ended June 27, 2026 and $(9,266) million for the three months ended June 28, 2025 source
- For the six months ended June 27, 2026 impairment losses recorded $(7,365) million and for six months ended June 28, 2025 $(9,266) million source
- If discount rates decreased by 50 basis points the aggregate fair value of reporting units with 20% or less excess fair value over carrying amount would increase by $3.6 billion. source
- If discount rates increased by 50 basis points the aggregate fair value of reporting units with 20% or less excess fair value over carrying amount would decrease by $3.1 billion. source
- In Q2 2026 the company recognized non-cash intangible asset impairment losses of $4.9 billion in SG&A, of which $3.4 billion related to Kraft. source
- Accumulated impairment losses to goodwill were $22.6 billion as of June 27, 2026 and $20.2 billion as of December 27, 2025. source
- Accumulated impairment losses to goodwill increased to $22.6 billion as of June 27, 2026 from $20.2 billion as of December 27, 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -117.6% | Impairment losses were $(7,352) million for the three months ended June 27, 2026 and $(7,365) million for the six months ended June 27,… |
| operating_income | negative | realized | -78.4% | In Q2 2026 the company recognized non-cash intangible asset impairment losses of $4.9 billion in SG&A, of which $3.4 billion related to… |
| net_income | negative | realized | -78.4% | In Q2 2026 the company recognized non-cash intangible asset impairment losses of $4.9 billion in SG&A, of which $3.4 billion related to… |
| operating_income | negative | realized | -39.0% | Goodwill impairment losses recorded for the three months ended June 27, 2026: $2,441 million. |
| net_income | negative | realized | -39.0% | Goodwill impairment losses recorded for the three months ended June 27, 2026: $2,441 million. |
| operating_income | negative | realized | -27.1% | During the second quarter of 2026 the company recognized non-cash goodwill impairment losses of $1.7 billion in SG&A. |
| net_income | negative | realized | -27.1% | During the second quarter of 2026 the company recognized non-cash goodwill impairment losses of $1.7 billion in SG&A. |
| assets | negative | realized | -10.1% | Impairment losses were $(7,352) million for the three months ended June 27, 2026 and $(7,365) million for the six months ended June 27,… |
| assets | negative | realized | -6.9% | Balance of indefinite-lived intangible assets at December 27, 2025: $34,165 million; impairment losses $(4,902) million; balance at June… |
| assets | negative | realized | -6.7% | In Q2 2026 the company recognized non-cash intangible asset impairment losses of $4.9 billion in SG&A, of which $3.4 billion related to… |
| assets | negative | realized | -3.3% | Goodwill impairment losses recorded for the three months ended June 27, 2026: $2,441 million. |
| assets | negative | realized | -3.3% | Accumulated impairment losses to goodwill were $22.6 billion as of June 27, 2026 and $20.2 billion as of December 27, 2025. |