KHC · 10-Q · 2026Q3 · Full report
Goodwill and Brand Impairments
Kraft Heinz Co · 2026-11-04 · Importance 65 · Surprise 60 · From source text
Kraft Heinz recorded $7.4 billion of impairment losses during the nine months ended September 26, 2026, comprising $2.5 billion of goodwill impairments and $4.9 billion of intangible-asset impairments. The impaired reporting units and brands were written down to fair value, leaving zero excess fair value over carrying amount at their impairment-test dates. Reporting units with 10% or less excess fair value had $19.4 billion of aggregate carrying value, including $18.2 billion of goodwill in TE, HDM, Europe, and AFH. Brands with 20% or less excess fair value had $12.8 billion of carrying value; the brands with 10% or less included Kraft, Miracle Whip, Oscar Mayer, Kool-Aid, Lunchables, Cool Whip, ABC, Claussen, Bagel Bites, and Wattie’s.
Key facts
- Kraft Heinz recognized $4.902 billion of indefinite-lived intangible asset impairment losses through September 26, 2026. source
- Kraft Heinz recognized $1.7 billion of non-cash goodwill impairment losses in SG&A in Q2 2026. source
- Kraft Heinz recognized $4.9 billion of non-cash intangible asset impairment losses in SG&A in Q2 2026, including $3.4 billion related to Kraft. source
- Kraft Heinz Co’s reporting units with 10% or less excess fair value over carrying amount had an aggregate carrying amount of $19.4 billion and were considered at heightened risk of future impairments. source
- Kraft Heinz Co’s brands with 20% or less excess fair value over carrying amount had an aggregate carrying amount of $12.8 billion and were considered at heightened risk of future impairments. source
- Kraft Heinz reported goodwill of $19.649 billion at September 26, 2026, compared with $22.179 billion at December 27, 2025. source
- Kraft Heinz reported net intangible assets of $32.328 billion at September 26, 2026, compared with $37.529 billion at December 27, 2025. source
- Kraft Heinz’s accumulated goodwill impairment losses were $22.7 billion at September 26, 2026, compared with $20.2 billion at December 27, 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -80.2% | Kraft Heinz recognized $4.902 billion of indefinite-lived intangible asset impairment losses through September 26, 2026. |
| operating_income | negative | realized | -40.9% | Kraft Heinz Co recorded goodwill impairment losses of $69 million for the three months and $2.5 billion for the nine months ended… |
| operating_income | negative | realized | -27.8% | Kraft Heinz recognized $1.7 billion of non-cash goodwill impairment losses in SG&A in Q2 2026. |
| assets | negative | realized | -7.2% | Kraft Heinz reported net intangible assets of $32.328 billion at September 26, 2026, compared with $37.529 billion at December 27, 2025. |
| assets | negative | realized | -3.5% | Kraft Heinz reported goodwill of $19.649 billion at September 26, 2026, compared with $22.179 billion at December 27, 2025. |
| assets | negative | contingent | — | Kraft Heinz Co’s reporting units with 10% or less excess fair value over carrying amount had an aggregate carrying amount of $19.4 billion… |
| assets | negative | contingent | — | Kraft Heinz Co’s brands with 20% or less excess fair value over carrying amount had an aggregate carrying amount of $12.8 billion and were… |