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 ongoing integration and optimization initiatives.
• Divestitures of certain Sweet Baked Snacks value brands, Voortman, Canada condiment, and Sahale Snacks businesses.
• KDP is the primary supplier of single-serve pods and the single-source supplier of liquid coffee for the Away From Home business.
• Graham Packaging is the single-source supplier for packaging used in Folgers coffee products and primary supplier for packaging used in Jif peanut butter products.
• Walmart Inc. and subsidiaries accounted for 34% of net sales in 2026 and trade receivables from them were $187.4 million, or 29% of total trade receivables, as of April 30, 2026.April 30, 2026
• During 2025, extreme drought impact substantially reduced green coffee production in Brazil.2025
• In January 2024, a snow and ice storm in the south caused our cat food plant in Decatur, Alabama to be temporarily shut down.January 2024
• During third quarter 2026, Sweet Baked Snacks segment underperformed, resulting in a pre-tax impairment charge of $961.7 million, including $507.5 million for goodwill and $454.2 million for the Hostess brand indefinite-lived trademark.third quarter 2026
• As of April 30, 2026, goodwill and other intangible assets totaled $10.9 billion, with $5.2 billion in goodwill and $2.6 billion in indefinite-lived intangibles. U.S. Retail Coffee segment carried $2.1 billion in goodwill and $1.3 billion in indefinite-lived intangibles; U.S. Retail Pet Foods carried $1.6 billion in goodwill and $1.1 billion in indefinite-lived intangibles.April 30, 2026
• As of April 30, 2026, we had $7.0 billion of short-term borrowings and long-term debt.April 30, 2026
• In 2022, we established science-based targets for Scope 1, 2, and 3 greenhouse gas emissions.2022
• The Hostess brand was reclassified as a finite-lived intangible asset as of January 31, 2026.January 31, 2026
• As of February 1, 2026 annual assessment, the Pup-Peroni brand within U.S. Retail Pet Foods has a fair value exceeding carrying value by less than 10%.February 1, 2026
• Three collective bargaining agreements expire in 2027, covering approximately 5 percent of total employees.2027
• We are in the process of a multi-year implementation of a new ERP system through the use of Oracle Cloud Solutions.
• 21 percent of full-time employees are unionized, across eight manufacturing locations as of April 30, 2026.April 30, 2026
• As of April 30, 2026 and 2025, $325.1 and $340.4 of our outstanding payment obligations, respectively, were elected and sold to a financial institution by participating suppliers under a supplier financing program.April 30, 2026 and 2025