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Goodwill and Intangible Assets (Notes) | 3 Months Ended
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Mar. 28, 2026
Intangible Asset, Goodwill and Other [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill: Changes in the carrying amount of goodwill, by segment, were (in millions):
| North America |  | International Developed Markets |  | Emerging Markets |  | Total
Balance at December 27, 2025 | $ | 20,392 |  |  | $ | 1,470 |  |  | $ | 317 |  |  | $ | 22,179 |
Translation adjustments and other | (1) |  |  | (29) |  |  | 4 |  |  | (26) |
Balance at March 28, 2026 | $ | 20,391 |  |  | $ | 1,441 |  |  | $ | 321 |  |  | $ | 22,153 |
As of March 28, 2026, we maintain 10 reporting units globally, six of which comprise our goodwill balance. These six reporting units had an aggregate goodwill carrying amount of $22.2 billion at March 28, 2026. Accumulated impairment losses to goodwill were $20.2 billion as of March 28, 2026 and December 27, 2025. No events occurred during the three months ended March 28, 2026 that indicated it was more likely than not that our goodwill was impaired. Additional Goodwill Considerations Following the 2025 annual impairment test, our Elevation, HDM, Western Europe, MCCS, and Canada reporting units had less than 5% fair value over carrying amount with an aggregate goodwill carrying amount of $21.9 billion. Our Asia reporting unit had less than 20% fair value over carrying amount with an aggregate goodwill carrying amount of $314 million as of the 2025 annual impairment test date. Accordingly, these reporting units have a heightened risk of future impairments if any assumptions, estimates, or market factors change in the future. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions, estimates, and market factors. Estimating the fair value of individual reporting units requires us to make assumptions and estimates regarding our future plans, as well as industry, economic, and regulatory conditions, and to consider the market multiples of certain peer and guideline companies. These assumptions and estimates include estimated future annual cash flows (including net sales, cost of products sold, SG&A, depreciation and amortization, working capital, and capital expenditures), income tax rates, discount rates, long-term growth rates, royalty rates, and other market factors. As part of our 2025 annual impairment test as of June 29, 2025, we used discount rates ranging from 7.3% to 14.8% and long-term growth rates ranging from 0.0% to 4.0%. If current expectations of future growth rates and margins are not met, if market factors outside of our control—such as discount rates, market capitalization, income tax rates, foreign currency exchange rates, or inflation—change, or if management’s expectations or plans otherwise change (including updates to our long-term operating plans), then one or more of our reporting units might become impaired in the future. Additionally, any decisions to divest certain non-strategic assets could lead to future goodwill impairments. Since our latest annual impairment test, our Company’s share price has been subject to significant volatility along with fluctuations experienced by other industry peers and much of the broader market. Our fair value determinations incorporate assumptions for future interest rates, stock market volatility, country risks and consideration of our market capitalization. Given the evolving nature and uncertainty in the market and the global economy due to the potential implications from geopolitical conflicts, including the ongoing conflicts in the Middle East, inflationary pressures, and other macroeconomic factors, we will continue to monitor these developments, as well as our response to these potential implications, to assess if their impacts are sustained. If we determine that these factors have an impact on our long-term financial forecast and/or result in a sustained decline in our share price, there is a heightened risk for impairments in the future due to the significant number of reporting units with low excess fair value over carrying amount as described above. Indefinite-lived intangible assets: Changes in the carrying amount of indefinite-lived intangible assets, which primarily consisted of trademarks, were (in millions):
Balance at December 27, 2025 | $ | 34,165 |
Translation adjustments and other | (70) |
Balance at March 28, 2026 | $ | 34,095 |
Our indefinite-lived intangible asset balance primarily consists of a number of individual brands, which had an aggregate carrying amount of $34.1 billion at March 28, 2026. No events occurred during the three months ended March 28, 2026 or March 29, 2025 that indicated it was more likely than not that any brand was impaired. Additional Indefinite-Lived Intangible Asset Considerations As of the 2025 annual impairment test, brands with 20% or less fair value over carrying amount had an aggregate carrying amount after impairment of $15.0 billion, brands with 20%-50% fair value over carrying amount had an aggregate carrying amount of $17.0 billion, and brands that had over 50% fair value over carrying amount had an aggregate carrying amount of $2.2 billion. Our brands that had 20% or less excess fair value over carrying amount as of our 2025 annual impairment test have a heightened risk of future impairments if any assumptions, estimates, or market factors change in the future. Although our remaining brands had more than 20% excess fair value over carrying amount as of our 2025 annual impairment test, these amounts are also susceptible to impairments if any assumptions, estimates, or market factors significantly change in the future. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions, estimates, and market factors. Estimating the fair value of individual brands requires us to make assumptions and estimates regarding our future plans, as well as industry, economic, and regulatory conditions, and to consider the market multiples of certain peer and guideline companies. These assumptions and estimates include estimated future annual cash flows, income tax considerations, discount rates, long-term growth rates, royalty rates, contributory asset charges, and other market factors. As part of our 2025 annual impairment test as of June 29, 2025, we used discount rates ranging from 8.5% to 12.3%, long-term growth rates ranging from 0.0% to 4.0%, and royalty rates ranging from 5.0% to 20.0%. If current expectations of future growth rates, royalty rates, and margins are not met, if market factors outside of our control—such as discount rates, market capitalization, income tax rates, foreign currency exchange rates, or inflation—change, or if management’s expectations or plans otherwise change (including updates to our long-term operating plans), then one or more of our brands might become impaired in the future. Additionally, any decisions to divest certain non-strategic assets could lead to future intangible asset impairments. Since our latest annual impairment test, our Company’s share price has been subject to significant volatility along with fluctuations experienced by other industry peers and much of the broader market. Our fair value determinations incorporate assumptions for future interest rates, stock market volatility, country risks and consideration of our market capitalization. Given the evolving nature and uncertainty in the market and the global economy due to the potential implications from geopolitical conflicts, including the ongoing conflicts in the Middle East, inflationary pressures, and other macroeconomic factors, we will continue to monitor these developments, as well as our response to these potential implications, to assess if their impacts are sustained. If we determine that these factors have an impact on our long-term financial forecast and/or result in a sustained decline in our share price, there is a heightened risk for impairments in the future due to the significant number of brands with low excess fair value over carrying amount as described above. Definite-lived intangible assets: Definite-lived intangible assets were (in millions):
| March 28, 2026 |  | December 27, 2025
| Gross |  | Accumulated Amortization |  | Net |  | Gross |  | Accumulated Amortization |  | Net(a)
Trademarks | $ | 2,370 |  |  | $ | (1,040) |  |  | $ | 1,330 |  |  | $ | 2,369 |  |  | $ | (1,016) |  |  | $ | 1,353 |
Customer-related assets | 3,663 |  |  | (1,708) |  |  | 1,955 |  |  | 3,704 |  |  | (1,700) |  |  | 2,004 |
Other | 11 |  |  | (4) |  |  | 7 |  |  | 11 |  |  | (4) |  |  | 7 |
| $ | 6,044 |  |  | $ | (2,752) |  |  | $ | 3,292 |  |  | $ | 6,084 |  |  | $ | (2,720) |  |  | $ | 3,364 |
(a) At December 27, 2025, definite-lived intangible assets excluded amounts classified as held for sale due to the Italy Infant Transaction. See Note 4, Acquisitions and Divestitures, for additional information on amounts held for sale. Amortization expense for definite-lived intangible assets was $61 million for the three months ended March 28, 2026 and March 29, 2025. Aside from amortization expense and the impacts of foreign currency, the change in definite-lived intangible assets from December 27, 2025 to March 28, 2026 is primarily related to non-cash intangible asset impairment losses of $13 million related to one definite-lived intangible asset within our International Developed Markets segment. We estimate that amortization expense related to definite-lived intangible assets will be approximately $250 million in 2026, $240 million in 2027 and 2028, and $230 million in 2029, 2030, and 2031

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- Definition The entire disclosure for intangible asset and goodwill. Includes, but is not limited to, finite- and indefinite-lived intangible assets, capitalized cost for internal-use software and software to be sold, leased, or marketed. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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