PG · 10-K · 2026A · Full report

Macroeconomic Factors Impact

PROCTER & GAMBLE Co · 2026-08-04 · Importance 56 · Surprise 24

P&G identified foreign-currency devaluation, increasing global inflation, economic recession and geopolitical conflict as macroeconomic conditions that could reduce cash flows supporting the Gillette indefinite-lived intangible asset. The Gillette 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 annual test. A 25-basis-point increase in the discount rate or a 25-basis-point reduction in short-term and residual growth rates would each reduce estimated fair value by approximately 5%.

Key facts

• The Company believes its current portfolio of advance rulings reduces tax uncertainty with respect to over 70% of its global earnings. source
• The Company believes that resolution of its tax audits, based on currently available information, will not have a material adverse effect on its financial position, results of operations or cash flows. source