Market and investment · Investment portfolio performance
We sponsor a number of defined benefit plans for employees in the United States, Canada, and various foreign locations. Changes in interest rates, mortality rates, health care costs, early retirement rates, investment returns, and the market value of plan assets can affect the funded status of our defined benefit plans and cause volatility in the net periodic benefit cost and future funding requirements of the plans.
Credit and liquidity · Access to capital and financing
We depend on stable, liquid and well-functioning capital and credit markets to fund our operations. Our financial performance, our credit ratings, interest rates, the stability of financial institutions with which we partner, and the liquidity of the overall global capital markets could affect our access to, and the availability, terms and conditions, and cost of capital.
International and currency · Foreign exchange and currency exposure
Our financial performance on a U.S. dollar denominated basis is subject to fluctuations in currency exchange rates. A strengthening in the U.S. dollar relative to other currencies in the countries in which we operate would negatively affect our reported results of operations and financial results due to currency translation losses and currency transaction losses.
Capital structure and performance · Debt management and refinancing
As of May 25, 2025, we had total debt and noncontrolling interests of $14.9 billion. Our level of indebtedness may limit our ability to obtain additional financing for working capital, capital expenditures, or general corporate purposes, and may limit our flexibility to adjust to changing business and market conditions.
Credit and liquidity · Debt service and covenant compliance
There are various financial covenants and other restrictions in our debt instruments and noncontrolling interests. If we fail to comply with any of these requirements, the related indebtedness, and other unrelated indebtedness, could become due and payable prior to its stated maturity.
Market and investment · Asset valuation and impairment
As of May 25, 2025, we had $22.4 billion of goodwill and indefinite-lived intangible assets. If current expectations for growth rates for sales and profits are not met, or other market factors and macroeconomic conditions were to change, then our reporting units could become significantly impaired.