HORMEL FOODS CORP /DE/HRL
HORMEL FOODS CORP /DE/ Goodwill & Intangibles Disclosure
Goodwill and Intangible Assets
Goodwill: The change in the carrying amount of goodwill for the fiscal years ended October 26, 2025, and October 27, 2024, is:
| In thousands | Retail | Foodservice | International | Total | ||||||||||||||||||||||
Balance at October 29, 2023 | $ | 2,916,796 | $ | 1,750,594 | $ | 261,074 | $ | 4,928,464 | ||||||||||||||||||
Goodwill Sold | — | (2,239) | — | (2,239) | ||||||||||||||||||||||
| Foreign Currency Translation | — | — | (2,738) | (2,738) | ||||||||||||||||||||||
Balance at October 27, 2024 | $ | 2,916,796 | $ | 1,748,355 | $ | 258,336 | $ | 4,923,487 | ||||||||||||||||||
| Foreign Currency Translation | — | — | 600 | 600 | ||||||||||||||||||||||
Balance at October 26, 2025 | $ | 2,916,796 | $ | 1,748,355 | $ | 258,936 | $ | 4,924,087 | ||||||||||||||||||
The goodwill sold during fiscal 2024 was due to the divestiture of Hormel Health Labs.
Intangible Assets: The Company's intangible assets by type are:
| October 26, 2025 | October 27, 2024 | |||||||||||||||||||||||||||||||||||||
| In thousands | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||||
| Definite-lived Intangible Assets | ||||||||||||||||||||||||||||||||||||||
| Customer Relationships | $ | 134,328 | $ | (78,565) | $ | 55,763 | $ | 168,239 | $ | (93,536) | $ | 74,703 | ||||||||||||||||||||||||||
| Other Definite-lived Intangibles | 59,445 | (24,620) | 34,824 | 59,241 | (20,107) | 39,134 | ||||||||||||||||||||||||||||||||
| Trade Names/Trademarks | 6,210 | (6,210) | — | 6,210 | (5,996) | 214 | ||||||||||||||||||||||||||||||||
| Foreign Currency Translation | — | (4,476) | (4,476) | — | (4,458) | (4,458) | ||||||||||||||||||||||||||||||||
| Total Definite-lived Intangible Assets | $ | 199,982 | $ | (113,872) | $ | 86,111 | $ | 233,690 | $ | (124,097) | $ | 109,593 | ||||||||||||||||||||||||||
| Indefinite-lived Intangible Assets | ||||||||||||||||||||||||||||||||||||||
| Brands/Trade Names/Trademarks | $ | 1,567,623 | $ | 1,629,582 | ||||||||||||||||||||||||||||||||||
| Other Indefinite-lived Intangibles | — | 184 | ||||||||||||||||||||||||||||||||||||
| Foreign Currency Translation | (6,437) | (6,655) | ||||||||||||||||||||||||||||||||||||
| Total Indefinite-lived Intangible Assets | 1,561,186 | 1,623,112 | ||||||||||||||||||||||||||||||||||||
| Total Intangible Assets | $ | 1,647,297 | $ | 1,732,705 | ||||||||||||||||||||||||||||||||||
Amortization expense on intangible assets for the last three fiscal years is as follows:
| In thousands | Amortization Expense | |||||||
| 2025 | $ | 14,854 | ||||||
| 2024 | 16,366 | |||||||
| 2023 | 18,386 | |||||||
Estimated annual amortization expense on intangible assets for the five fiscal years after October 26, 2025, is as follows:
| In thousands | Amortization Expense | |||||||
| 2026 | $ | 12,428 | ||||||
| 2027 | 12,140 | |||||||
| 2028 | 11,219 | |||||||
| 2029 | 9,751 | |||||||
| 2030 | 9,326 | |||||||
Impairment Testing: During the fourth quarter of fiscal 2025, 2024, and 2023, the Company completed its annual impairment tests of goodwill, indefinite-lived intangible assets, and definite-lived intangible assets. Useful lives of intangible assets were also reviewed during this process with no material changes identified. See Note A - Summary of Significant Accounting Policies for additional information on the Company's impairment testing procedures.
Goodwill
During the fourth quarter of fiscal 2025, the Company elected to complete its annual goodwill impairment tests by performing quantitative assessments. No goodwill impairment was indicated in the annual assessments in fiscal 2025, 2024, and 2023.
Indefinite-lived Intangible Assets
During the fourth quarter of fiscal 2025, the Company elected to complete its annual indefinite-lived intangible impairment tests by performing quantitative assessments. The assessments indicated an impairment for the Planters® trade name, resulting in an impairment charge of $59.1 million in the Retail segment, which reduced the remaining carrying value to $615.9 million. Since the production disruption in fiscal 2024, the Company has monitored the brand’s impairment status through quarterly qualitative assessments. While the brand has shown signs of recovery, including operational stabilization and improved revenue, the updated projections provided in the fourth quarter of fiscal 2025 reflect long-term revenue growth lagging previous expectations leading to the impairment.
Additionally in the fourth quarter of fiscal 2025, impairment was indicated for the Chi-Chi's® trade name, resulting in an impairment charge of $2.9 million in the Retail segment, which reduced the remaining carrying value to $13.1 million. The impairment was driven by lower long-term forecasts influenced by recent performance trends.
In fiscal 2023, qualitative assessments indicated that the Justin’s® trade name was more likely than not impaired, prompting a quantitative impairment test. As a result of the quantitative impairment test, an impairment charge was recognized in the Retail segment of $28.4 million.
No other indefinite-lived intangible impairments were indicated in the fiscal 2025, 2024, and 2023 assessments.
Definite-lived Intangible Assets
During the fourth quarter of fiscal 2025, the Company completed its annual definite-lived intangible asset impairment tests by performing qualitative assessments. The assessment indicated impairment of a private label customer relationship acquired in the purchase of Columbus Manufacturing, Inc., which resulted in an impairment charge of $8.8 million in the Retail segment, and representing the full carrying value of the asset. The impairment was driven by recent performance results and the Company's intent to shift strategic focus to Columbus® branded products.
No other definite-lived intangible impairments were indicated in fiscal 2025, 2024, or 2023.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Dec 5, 2025 | Showing above |
| 2024 | Dec 5, 2024 | |
| 2023 | Dec 6, 2023 | |
| 2022 | Dec 6, 2022 | |
| 2021 | Dec 10, 2021 | |
| 2020 | Dec 4, 2020 | |
| 2019 | Dec 6, 2019 | |
| 2018 | Dec 7, 2018 | |
| 2017 | Dec 20, 2017 | |
| 2016 | Dec 21, 2016 | |
| 2015 | Dec 16, 2015 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.