HERSHEY COHSY

HERSHEY CO Goodwill & Intangibles Disclosure

10-KFiled Feb 17, 20262 min read
GOODWILL AND INTANGIBLE ASSETS
The changes in the carrying value of goodwill by segment for the years ended December 31, 2025 and 2024 are as follows:
North America ConfectioneryNorth America Salty SnacksInternationalTotal
Goodwill$2,025,804 $657,001 $375,593 $3,058,398 
Accumulated impairment loss(4,973)— (357,375)(362,348)
Balance at January 1, 2024
2,020,831 657,001 18,218 2,696,050 
Acquired during the period20,723 — — 20,723 
Foreign currency translation(8,697)— (2,323)(11,020)
Balance at December 31, 2024
2,032,857 657,001 15,895 2,705,753 
Acquired during the period (see Note 2)
— 289,142 — 289,142 
Measurement period adjustments1,382 — — 1,382 
Impairment loss— — (6,403)(6,403)
Foreign currency translation4,859 — 1,272 6,131 
Balance at December 31, 2025
$2,039,098 $946,143 $10,764 $2,996,005 

In 2025, we recognized an immaterial non-cash goodwill impairment charge related to a reporting unit within our International segment. We had no goodwill impairment charges in 2024 or 2023.
The following table provides the gross carrying amount and accumulated amortization for each major class of intangible asset:
December 31,20252024
Gross Carrying AmountAccumulated AmortizationGross Carrying AmountAccumulated Amortization
Intangible assets subject to amortization:
Trademarks
$1,803,973 $(335,974)$1,721,159 $(282,819)
Customer-related
855,556 (185,995)552,594 (151,409)
Patents
7,944 (7,944)7,579 (7,579)
Total
2,667,473 (529,913)2,281,332 (441,807)
Intangible assets not subject to amortization:
Trademarks
338,138 34,341 
Total other intangible assets
$2,475,698 $1,873,866 
In 2025, the gross carrying amount of our intangible assets and corresponding accumulated amortization increased as a result of the second quarter purchase of the Fulfil brand in North America and the fourth quarter acquisition of LesserEvil.
Total amortization expense for the years ended December 31, 2025, 2024 and 2023 was $85,398, $84,640 and $88,771, respectively.
Amortization expense for the next five years, based on current intangible asset balances, is estimated to be as follows:
Year ending December 31,20262027202820292030
Amortization expense$99,861 $98,769 $98,769 $97,598 $93,843 

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 18, 2025
2023Feb 20, 2024
2022Feb 17, 2023
2021Feb 18, 2022
2020Feb 17, 2021
2019Feb 20, 2020
2018Feb 22, 2019
2017Feb 27, 2018
2016Feb 21, 2017
2015Feb 26, 2016

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.

Other Available Disclosures

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