J M SMUCKER Co (SJM) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that J M SMUCKER Co surfaced in its latest filing.

• Acquisition of Hostess Brands and related integration and optimization initiatives
• Divestitures of certain Sweet Baked Snacks value brands, Voortman business, Canada condiment business, and Sahale Snacks business
• Impairment charges of $961.7 million in Q3 2026 related to Sweet Baked Snacks goodwill and Hostess brand trademarkQ3 2026
• Goodwill impairment charge of $507.5 million representing full remaining carrying value of Sweet Baked Snacks goodwillQ3 2026
• Hostess brand indefinite-lived trademark impairment charge of $454.2 millionQ3 2026
• Hostess brand indefinite-lived trademark reclassified as finite-lived intangible asset as of January 31, 2026January 31, 2026
• Sales to Walmart Inc. and subsidiaries amounted to 34 percent of net sales in 20262026
• Trade receivables from Walmart Inc. and subsidiaries were $187.4 million, 29 percent of total trade receivables at April 30, 2026April 30, 2026
• Top 10 customers accounted for approximately 60 percent of consolidated net sales in 20262026
• As of April 30, 2026, 21 percent of full-time employees at eight manufacturing locations are covered by collective bargaining agreementsApril 30, 2026
• Three collective bargaining agreements expire in 2027, representing approximately 5 percent of total employees2027
• As of April 30, 2026, we had $7.0 billion of short-term borrowings and long-term debtApril 30, 2026
• At April 30, 2026, goodwill and other intangible assets totaled $10.9 billion, compared to total assets of $16.2 billion and total shareholders' equity of $5.5 billionApril 30, 2026
• Goodwill and indefinite-lived intangible assets totaled $5.2 billion and $2.6 billion, respectively, as of April 30, 2026April 30, 2026
• Within the U.S. Retail Coffee reportable segment, goodwill and indefinite-lived intangible assets were $2.1 billion and $1.3 billion, respectivelyApril 30, 2026
• Within the U.S. Retail Pet Foods reportable segment, goodwill and indefinite-lived intangible assets were $1.6 billion and $1.1 billion, respectivelyApril 30, 2026
• As of April 30, 2026, $325.1 million of our outstanding payment obligations were sold to a financial institutionApril 30, 2026
• As of April 30, 2025, $340.4 million of our outstanding payment obligations were sold to a financial institutionApril 30, 2025
• Multi-year implementation of a new ERP system using Oracle Cloud Solutions
• Extreme drought in 2025 substantially reduced green coffee production in Brazil2025