PG · 10-K · 2026A · Full report

Gillette Intangible Impairment Risk

PROCTER & GAMBLE Co · 2026-08-04 · Importance 64 · Surprise 42 · No source text

Gillette’s indefinite-lived intangible asset had a $12.8 billion carrying value at June 30, 2026 and remained susceptible to impairment despite fair value exceeding carrying value by more than 10% at the December 31, 2025 testing date. Management identified foreign-currency devaluation, global inflation, recession-driven market contraction, geopolitical conflicts, and weaker grooming demand as potential factors reducing estimated cash flows. Sensitivity analysis showed that a 25-basis-point increase in the discount rate or a 25-basis-point decrease in short-term and residual growth rates would each reduce estimated fair value by approximately 5%; a 50-basis-point royalty-rate decrease would reduce it by approximately 4%.

Key facts

• As of June 30, 2026 the carrying value of the Gillette indefinite-lived intangible asset was $12.8 billion. source
• Sensitivity analysis during annual impairment testing showed a +25 basis-point increase in discount rate or a -25 basis-point decrease in growth rate each would reduce the Gillette estimated fair value by approximately 5%, while a -50 basis-point decrease in royalty rate would reduce it by approximately 4%. source
• During the fiscal year ended June 30, 2024, the Company recorded a $1.3 billion before tax non-cash impairment charge on an indefinite-lived intangible asset acquired as part of the 2005 acquisition of The Gillette Company ($1.0 billion after tax). source

Impact estimates