What does specialty foods — goodwill impairment mean?

A write-down of the value of acquired intangible assets due to poor performance or market changes in the Specialty Foods segment.

How do you interpret specialty foods — goodwill impairment?

An increase is a negative signal indicating that previous acquisitions are underperforming or that the segment's market outlook has deteriorated.

How does specialty foods — goodwill impairment compare across companies?

Comparable to impairment charges in any segment-reporting entity; indicates potential strategic missteps in M&A.

Hormel Foods HRL Specialty Foods — Goodwill Impairment

Discontinued — last reported Q2 '16

Similar metrics at other companies

HSICGlobal Specialty Products — Goodwill Impairment

$2.75M—

TSNPrepared Foods — Goodwill, Impairment Loss

$0—

SJMU.S.Retail Consumer Foods — Goodwill impairment charges

$24.48M—

GISNorth America Foodservice — Goodwill Impairment

$0—

RPMSpecialty Products Group — Goodwill Impairment

$2.85M—

AIZSpecialty Property — Goodwill Impairment

$1.8M—

Other financials

Income statement

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Revenue$3.0B+2.5%

Gross profit$518.5M+7.0%

Operating income$217.1M-12.6%

Net income$157.5M-12.5%

EPS (diluted)$0.29-12.1%

Balance sheet

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Cash & equivalents$826.8M+23.5%

Total debt$2.9B-0.2%

Total equity$7.9B-1.0%

Total assets$13.3B-0.6%

Cash flow

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Operating cash flow$178.9M+217%

CapEx$82.2M+9.4%

Free cash flow$96.8M—

Valuation

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Market cap$13.3B—

Enterprise value$15.35B—

P/E18.9×—

P/S1.1×—

Profitability

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Gross margin15.7%-0.8pp

Operating margin5.8%-2.7pp

Net margin6.3%-0.3pp

FCF margin5.7%-0.3pp

Returns & leverage

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Return on equity9.5%-0.6pp

Debt / equity0.4×0.0×

Current ratio1.9×-0.5×

Where this comes from

Reported directly by Hormel Foods in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: Hormel Foods’s 10-Q, filed June 3, 2016, on SEC EDGAR. View the filing →

Questions, answered.

What does specialty foods — goodwill impairment mean?: A write-down of the value of acquired intangible assets due to poor performance or market changes in the Specialty Foods segment.
How do you interpret specialty foods — goodwill impairment?: An increase is a negative signal indicating that previous acquisitions are underperforming or that the segment's market outlook has deteriorated.
How does specialty foods — goodwill impairment compare across companies?: Comparable to impairment charges in any segment-reporting entity; indicates potential strategic missteps in M&A.