Company: KHC
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001637459-25-000166
Chunk: 209

Company: Kraft Heinz Co
Filing Date: 2025-10-29
Form: 10-Q
Item: Part I, Item 2
Chunk 209
---
 brand were as follows:

Goodwill Carrying Amount(in billions)Discount RateLong-Term Growth RateRoyalty RateMinimumMaximumMinimumMaximumMinimumMaximumReporting units$22.2 7.3 %11.8 %0.5 %4.0 %Brands(excess earnings method)11.3 8.5 %8.8 %0.5 %2.0 %Brands(relief from royalty method)3.7 8.8 %9.3 %0.5 %2.0 %7.0 %20.0 %

Assumptions used in impairment testing are made at a point in time and require significant judgment; therefore, they are subject to change based on the facts and circumstances present at each annual and interim impairment test date. Additionally, these assumptions are generally interdependent and do not change in isolation. However, as it is reasonably possible that changes in assumptions could occur, as a sensitivity measure, we have presented the estimated effects of isolated changes in discount rates, long-term growth rates, and royalty rates on the fair values of our reporting units and brands with 20% or less excess fair value over carrying amount. These estimated changes in fair value are not necessarily representative of the actual impairment that would be recorded in the event of a fair value decline.

If we had changed the assumptions used to estimate the fair value of our reporting units and brands with 20% or less excess fair value over carrying amount, as a result of the 2025 Annual Impairment Test for each of these reporting units and brands, these isolated changes, which are reasonably possible to occur, would have led to the following increase/(decrease) in the aggregate fair value of these reporting units and brands (in billions):

Discount RateLong-Term Growth RateRoyalty Rate50-Basis-Point25-Basis-Point100-Basis-PointIncreaseDecreaseIncreaseDecreaseIncreaseDecreaseReporting units$(3.5)$4.0 $1.7 $(1.6)Brands (excess earnings method)(0.8)1.0 0.4 (0.3)Brands (relief from royalty method)(0.3)0.3 0.1 (0.1)$0.4 $(0.4)

49

Definite-lived intangible assets are amortized on a straight-line basis over the estimated periods benefited. We review definite-lived intangible assets for impairment