ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 46-2078182 | |||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||
One PPG Place, | Pittsburgh, | Pennsylvania | 15222 | |
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of exchange on which registered |
Common stock, $0.01 par value | KHC | The |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
Majority Owned and Licensed Trademarks | ||
United States | Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Planters, Maxwell House, Capri Sun*, Kool-Aid, Ore-Ida, Jell-O | |
Canada | Kraft, Heinz, Philadelphia, Maxwell House, Classico, McCafe*, Tassimo* | |
EMEA | Heinz, Plasmon, Pudliszki, Honig, HP, Benedicta, Kraft, Karvan Cevitam | |
Rest of World | Heinz, ABC, Master, Kraft, Quero, Golden Circle, Wattie's |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | ||||||
Condiments and sauces | 26 | % | 32 | % | 50 | % | ||
Cheese and dairy | 21 | % | 15 | % | — | % | ||
Ambient meals | 9 | % | 10 | % | 14 | % | ||
Frozen and chilled meals | 8 | % | 12 | % | 18 | % | ||
Meats and seafood | 10 | % | 8 | % | 2 | % | ||
Infant and nutrition | 3 | % | 5 | % | 10 | % |
December 28, 2019 | December 29, 2018 | December 30, 2017 | ||||||
Condiments and sauces | 26 | % | 26 | % | 25 | % | ||
Cheese and dairy | 20 | % | 20 | % | 21 | % | ||
Ambient foods | 10 | % | 10 | % | 10 | % | ||
Meats and seafood | 10 | % | 10 | % | 10 | % | ||
Frozen and chilled foods | 9 | % | 10 | % | 10 | % |
Name | Age | Title | ||
Chief Executive Officer | ||||
Paulo Basilio | ||||
U.S. Zone President | ||||
Chief Growth Officer | ||||
Bruno Keller | 38 | Zone President | ||
Senior Vice President, Global General Counsel and Head of CSR and Government Affairs; Corporate Secretary | ||||
45 | Zone President International | |||
Flavio Torres | 50 |
Owned | Leased | Owned | Leased | ||||
United States | 43 | 2 | 40 | 1 | |||
Canada | 3 | — | 1 | 1 | |||
Europe | 11 | — | |||||
EMEA | 13 | — | |||||
Rest of World | 26 | 2 | 26 | 1 |
2016 Quarters | 2015 Quarters | ||||||||||||||||||||||||||
First | Second | Third | Fourth | First | Second | Third | Fourth | ||||||||||||||||||||
Market price-high | $ | 79.16 | $ | 89.40 | $ | 90.54 | $ | 90.15 | NA | NA | $ | 81.20 | $ | 79.94 | |||||||||||||
Market price-low | $ | 68.18 | $ | 76.64 | $ | 84.25 | $ | 79.69 | NA | NA | $ | 61.42 | $ | 68.65 | |||||||||||||
Dividends declared | $ | 0.575 | $ | 0.575 | $ | 0.60 | $ | 0.60 | NA | NA | $ | 0.55 | $ | 1.15 |
Kraft Heinz | S&P 500 | S&P Consumer Staples Food Products | |||
July 6, 2015 | $100.00 | $100.00 | $100.00 | ||
December 31, 2015 | $102.07 | $99.85 | $106.15 | ||
December 30, 2016 | $125.99 | $111.79 | $115.17 |
Kraft Heinz | S&P 500 | S&P Consumer Staples Food and Soft Drink Products | |||||||||
July 6, 2015 | $ | 100.00 | $ | 100.00 | $ | 100.00 | |||||
December 31, 2015 | 102.07 | 99.85 | 110.18 | ||||||||
December 30, 2016 | 125.99 | 111.79 | 114.98 | ||||||||
December 29, 2017 | 115.44 | 136.20 | 128.53 | ||||||||
December 28, 2018 | 67.49 | 129.11 | 121.93 | ||||||||
December 27, 2019 | 51.78 | 171.50 | 157.80 |
Total Number of Shares(a) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | Dollar Value of Shares that May Yet be Purchased Under the Plan or Program | |||||||||||
10/3/2016 - 11/6/2016 | 541,110 | $ | 88.82 | — | ||||||||||
11/7/2016 - 12/4/2016 | 459,117 | 83.16 | — | |||||||||||
12/5/2016 - 12/31/2016 | 455,602 | 84.64 | — | $ | — | |||||||||
For the Three Months Ended December 31, 2016 | 1,455,829 | — |
Total Number of Shares Purchased(a) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(b) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||||
9/29/2019 - 11/2/2019 | 15,166 | $ | 27.84 | — | $ | — | ||||||||
11/3/2019 - 11/30/2019 | 128,625 | 32.19 | — | — | ||||||||||
12/1/2019 - 12/28/2019 | 43,491 | 31.48 | — | — | ||||||||||
Total | 187,282 | — |
(a) | Includes the following types of share repurchase activity, when they occur: (1) shares repurchased in connection with the exercise of stock options (including periodic repurchases using |
(b) | We do not have any publicly announced share repurchase plans or programs. |
Successor | Predecessor (H. J. Heinz Company) | (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
December 31, 2016 (52 weeks)(a) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | February 8 - December 29, 2013 (29 weeks) | April 29 - June 7, 2013 (6 weeks) | April 28, 2013 (52 weeks) | April 29, 2012 (52 1/2 weeks)(e) | December 28, 2019 (52 weeks) | December 29, 2018 (52 weeks) | December 30, 2017 (52 weeks) | December 31, 2016 (52 weeks)(g) | January 3, 2016 (53 weeks) | |||||||||||||||||||||||||||||||||||
(in millions, except per share data) | (in millions, except per share data) | |||||||||||||||||||||||||||||||||||||||||||||
Period Ended: | ||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 26,487 | $ | 18,338 | $ | 10,922 | $ | 6,240 | $ | 1,113 | $ | 11,529 | $ | 11,508 | $ | 24,977 | $ | 26,268 | $ | 26,076 | $ | 26,300 | $ | 18,318 | ||||||||||||||||||||||
Income/(loss) from continuing operations(b) | 3,642 | 647 | 672 | (66 | ) | (191 | ) | 1,102 | 992 | |||||||||||||||||||||||||||||||||||||
Income/(loss) from continuing operations attributable to common shareholders(b) | 3,452 | (266 | ) | (63 | ) | (1,118 | ) | (194 | ) | 1,088 | 974 | |||||||||||||||||||||||||||||||||||
Income/(loss) from continuing operations per common share(b): | ||||||||||||||||||||||||||||||||||||||||||||||
Income/(loss)(b)(c)(d) | 1,933 | (10,254 | ) | 10,932 | 3,606 | 614 | ||||||||||||||||||||||||||||||||||||||||
Income/(loss) attributable to common shareholders(b)(c)(d) | $ | 1,935 | (10,192 | ) | 10,941 | 3,416 | (299 | ) | ||||||||||||||||||||||||||||||||||||||
Income/(loss) per common share: | ||||||||||||||||||||||||||||||||||||||||||||||
Basic | 2.84 | (0.34 | ) | (0.17 | ) | (2.97 | ) | (0.60 | ) | 3.39 | 3.03 | $ | 1.59 | (8.36 | ) | 8.98 | 2.81 | (0.38 | ) | |||||||||||||||||||||||||||
Diluted | 2.81 | (0.34 | ) | (0.17 | ) | (2.97 | ) | (0.60 | ) | 3.37 | 3.01 | 1.58 | (8.36 | ) | 8.91 | 2.78 | (0.38 | ) | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||
December 28, 2019 | December 29, 2018 | December 30, 2017 | December 31, 2016 | January 3, 2016 | ||||||||||||||||||||||||||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||||||||||||||||||||||||||||
As of: | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets(d) | 120,480 | 122,973 | 36,571 | 38,681 | NA | 12,920 | 11,960 | |||||||||||||||||||||||||||||||||||||||
Long-term debt(c)(d) | 29,713 | 25,151 | 13,358 | 14,326 | NA | 3,830 | 4,757 | |||||||||||||||||||||||||||||||||||||||
Redeemable preferred stock | — | 8,320 | 8,320 | 8,320 | NA | — | — | |||||||||||||||||||||||||||||||||||||||
Total assets(c) | 101,450 | 103,461 | 120,092 | 120,617 | 123,110 | |||||||||||||||||||||||||||||||||||||||||
Long-term debt(e) | 28,216 | 30,770 | 28,308 | 29,712 | 25,148 | |||||||||||||||||||||||||||||||||||||||||
Redeemable preferred stock(f) | — | — | — | — | 8,320 | |||||||||||||||||||||||||||||||||||||||||
Cash dividends per common share | 2.35 | 1.70 | — | — | — | 2.06 | 1.92 | 1.60 | 2.50 | 2.45 | 2.35 | 1.70 |
(a) | The increase in net sales in 2016 compared to the prior year was primarily driven by the 2015 Merger. |
(b) | The increases in income/(loss), income/(loss) attributable to common shareholders, and basic and diluted income/(loss) per common share in 2017 compared to 2016 were primarily driven by U.S. Tax Reform, which was enacted in December 2017. See Note 10, Income Taxes, in Item 8, Financial Statements and Supplementary Data, for additional information. |
(c) | The decreases in income/(loss), income/(loss) attributable to common shareholders, and basic and diluted income/(loss) per common share in 2018 compared to 2017, and the decrease in total assets from December 30, 2017 to December 29, 2018, were primarily driven by non-cash impairment losses in 2018. See Note 9, Goodwill and Intangible Assets, in Item 8, Financial Statements and Supplementary Data, for additional information. |
(d) | The increases in income/(loss), income/(loss) attributable to common shareholders, and basic and diluted income/(loss) per common share in 2019 compared to 2018, were primarily driven by higher non-cash impairment losses in 2018. See Note 9, Goodwill and Intangible Assets, in Item 8, Financial Statements and Supplementary Data, for additional information. |
(e) | Amounts exclude the current portion of long-term debt. |
(f) | On June 7, 2016, we redeemed all outstanding shares of our 9.00% cumulative compounding preferred stock, Series A. See Equity and Dividends in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, along with Note 19, Debt, and Note 20, Capital Stock, in Item 8, Financial Statements and Supplementary Data, in our Annual Report on Form 10-K for the year ended December 29, 2018 for additional information. |
(g) | On December 9, 2016, our Board of Directors approved a change to our fiscal year end from Sunday to Saturday. Effective December 31, 2016, we operate on a |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | % Change | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | % Change | December 28, 2019 | December 29, 2018 | % Change | |||||||||||||||||||||||
(in millions, except per share data) | (in millions, except per share data) | (in millions, except per share data) | |||||||||||||||||||||||||||||
Net sales | $ | 26,487 | $ | 18,338 | 44.4 | % | $ | 18,338 | $ | 10,922 | 67.9 | % | $ | 24,977 | $ | 26,268 | (4.9 | )% | |||||||||||||
Operating income | 6,142 | 2,639 | 132.7 | % | 2,639 | 1,568 | 68.3 | % | |||||||||||||||||||||||
Operating income/(loss) | 3,070 | (10,205 | ) | 130.1 | % | ||||||||||||||||||||||||||
Net income/(loss) attributable to common shareholders | 3,452 | (266 | ) | nm | (266 | ) | (63 | ) | nm | 1,935 | (10,192 | ) | 119.0 | % | |||||||||||||||||
Diluted earnings/(loss) per share | 2.81 | (0.34 | ) | nm | (0.34 | ) | (0.17 | ) | nm | ||||||||||||||||||||||
Diluted EPS | 1.58 | (8.36 | ) | 118.9 | % |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | % Change | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | % Change | ||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||
Net sales | $ | 26,487 | $ | 18,338 | 44.4 | % | $ | 18,338 | $ | 10,922 | 67.9 | % | |||||||||
Pro forma net sales(a) | 26,487 | 27,447 | (3.5 | )% | 27,447 | 29,122 | (5.8 | )% | |||||||||||||
Organic Net Sales(b) | 26,817 | 26,728 | 0.3 | % | 28,286 | 28,741 | (1.6 | )% |
December 28, 2019 | December 29, 2018 | % Change | ||||||||
(in millions) | ||||||||||
Net sales | $ | 24,977 | $ | 26,268 | (4.9 | )% | ||||
Organic Net Sales(a) | 24,961 | 25,393 | (1.7 | )% |
(a) |
Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item. |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | % Change | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | % Change | December 28, 2019 | December 29, 2018 | % Change | |||||||||||||||||||||||
(in millions, except per share data) | (in millions, except per share data) | (in millions) | |||||||||||||||||||||||||||||
Operating income | $ | 6,142 | $ | 2,639 | 132.7 | % | $ | 2,639 | $ | 1,568 | 68.3 | % | |||||||||||||||||||
Operating income/(loss) | $ | 3,070 | $ | (10,205 | ) | 130.1 | % | ||||||||||||||||||||||||
Net income/(loss) attributable to common shareholders | 3,452 | (266 | ) | nm | (266 | ) | (63 | ) | nm | 1,935 | (10,192 | ) | 119.0 | % | |||||||||||||||||
Adjusted EBITDA(a) | 7,778 | 6,739 | 15.4 | % | 6,739 | 6,526 | 3.3 | % | 6,064 | 7,024 | (13.7 | )% |
(a) | Adjusted EBITDA is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item. |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | % Change | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | % Change | December 28, 2019 | December 29, 2018 | % Change | |||||||||||||||||||
(in millions, except per share data) | (in millions, except per share data) | (in millions, except per share data) | |||||||||||||||||||||||||
Diluted EPS | 2.81 | (0.34 | ) | nm | (0.34 | ) | (0.17 | ) | nm | $ | 1.58 | $ | (8.36 | ) | 118.9 | % | |||||||||||
Adjusted EPS(a) | 3.33 | 2.19 | 52.1 | % | 2.19 | 1.98 | 10.6 | % | 2.85 | 3.51 | (18.8 | )% |
(a) | Adjusted EPS is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item. |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | $ Change | % Change | |||||||||||
Diluted EPS | $ | 2.81 | $ | (0.34 | ) | $ | 3.15 | nm | ||||||
Pro forma adjustments(a) | — | 1.04 | (1.04 | ) | ||||||||||
Pro forma diluted EPS | 2.81 | 0.70 | 2.11 | 301.4 | % | |||||||||
Integration and restructuring expenses | 0.57 | 0.61 | (0.04 | ) | ||||||||||
Merger costs | 0.02 | 0.49 | (0.47 | ) | ||||||||||
Unrealized losses/(gains) on commodity hedges | (0.02 | ) | (0.02 | ) | — | |||||||||
Impairment losses | 0.03 | 0.03 | — | |||||||||||
Losses/(gains) on sale of business | — | (0.01 | ) | 0.01 | ||||||||||
Nonmonetary currency devaluation | 0.02 | 0.24 | (0.22 | ) | ||||||||||
Preferred dividend adjustment | (0.10 | ) | 0.15 | (0.25 | ) | |||||||||
Adjusted EPS(b) | $ | 3.33 | $ | 2.19 | $ | 1.14 | 52.1 | % | ||||||
Key drivers of change in Adjusted EPS(b): | ||||||||||||||
Results of operations | $ | 0.77 | ||||||||||||
Change in preferred dividends | 0.34 | |||||||||||||
Change in interest expense | (0.04 | ) | ||||||||||||
Change in other expense/(income), net | (0.03 | ) | ||||||||||||
53rd week of shipments | (0.03 | ) | ||||||||||||
Change in effective tax rate and other | 0.13 | |||||||||||||
$ | 1.14 |
December 28, 2019 | December 29, 2018 | $ Change | % Change | |||||||||||
Diluted EPS | $ | 1.58 | $ | (8.36 | ) | $ | 9.94 | 118.9 | % | |||||
Integration and restructuring expenses | 0.07 | 0.32 | (0.25 | ) | ||||||||||
Deal costs | 0.02 | 0.02 | — | |||||||||||
Unrealized losses/(gains) on commodity hedges | (0.04 | ) | 0.01 | (0.05 | ) | |||||||||
Impairment losses | 1.38 | 11.28 | (9.90 | ) | ||||||||||
Losses/(gains) on sale of business | (0.23 | ) | 0.01 | (0.24 | ) | |||||||||
Other losses/(gains) related to acquisitions and divestitures | — | 0.02 | (0.02 | ) | ||||||||||
Nonmonetary currency devaluation | 0.01 | 0.12 | (0.11 | ) | ||||||||||
Debt prepayment and extinguishment costs | 0.06 | — | 0.06 | |||||||||||
U.S. Tax Reform discrete income tax expense/(benefit) | — | 0.09 | (0.09 | ) | ||||||||||
Adjusted EPS(a) | $ | 2.85 | $ | 3.51 | $ | (0.66 | ) | (18.8 | )% | |||||
Key drivers of change in Adjusted EPS(a): | ||||||||||||||
Results of operations | $ | (0.64 | ) | |||||||||||
Results of divested operations | (0.05 | ) | ||||||||||||
Interest expense | 0.01 | |||||||||||||
Other expense/(income) | 0.02 | |||||||||||||
$ | (0.66 | ) |
(a) |
Adjusted EPS is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item. |
January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | $ Change | % Change | |||||||||||
Diluted EPS | $ | (0.34 | ) | $ | (0.17 | ) | $ | (0.17 | ) | nm | ||||
Pro forma adjustments(a) | 1.04 | 1.48 | (0.44 | ) | ||||||||||
Pro forma diluted EPS | 0.70 | 1.31 | (0.61 | ) | (46.6 | )% | ||||||||
Integration and restructuring expenses | 0.61 | 0.47 | 0.14 | |||||||||||
Merger costs | 0.49 | 0.04 | 0.45 | |||||||||||
Unrealized losses/(gains) on commodity hedges | (0.02 | ) | 0.05 | (0.07 | ) | |||||||||
Impairment losses | 0.03 | 0.11 | (0.08 | ) | ||||||||||
Losses/(gains) on sale of business | (0.01 | ) | — | (0.01 | ) | |||||||||
Nonmonetary currency devaluation | 0.24 | — | 0.24 | |||||||||||
Preferred dividend adjustment | 0.15 | — | 0.15 | |||||||||||
Adjusted EPS(b) | $ | 2.19 | $ | 1.98 | $ | 0.21 | 10.6 | % | ||||||
Key drivers of change in Adjusted EPS(b): | ||||||||||||||
Results of operations | 0.21 | |||||||||||||
Change in other expense/(income), net | 0.07 | |||||||||||||
Change in interest expense | 0.03 | |||||||||||||
53rd week of shipments | 0.03 | |||||||||||||
Change in effective tax rate and other | (0.13 | ) | ||||||||||||
$ | 0.21 |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | December 28, 2019 | December 29, 2018 | ||||||||||||||
(in millions) | (in millions) | |||||||||||||||||
Net sales: | ||||||||||||||||||
United States | $ | 18,641 | $ | 10,943 | $ | 3,615 | $ | 17,756 | $ | 18,122 | ||||||||
Canada | 2,309 | 1,437 | 631 | 1,882 | 2,173 | |||||||||||||
Europe | 2,366 | 2,656 | 3,233 | |||||||||||||||
EMEA | 2,551 | 2,718 | ||||||||||||||||
Rest of World | 3,171 | 3,302 | 3,443 | 2,788 | 3,255 | |||||||||||||
Total net sales | $ | 26,487 | $ | 18,338 | $ | 10,922 | $ | 24,977 | $ | 26,268 |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | |||||||||
(in millions) | |||||||||||
Pro forma net sales(a): | |||||||||||
United States | $ | 18,641 | $ | 18,932 | $ | 19,346 | |||||
Canada | 2,309 | 2,386 | 2,811 | ||||||||
Europe | 2,366 | 2,657 | 3,233 | ||||||||
Rest of World | 3,171 | 3,472 | 3,732 | ||||||||
Total pro forma net sales | $ | 26,487 | $ | 27,447 | $ | 29,122 |
2016 Compared to 2015 | 2015 Compared to 2014 | |||||||||||||||||||||
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | December 28, 2019 | December 29, 2018 | |||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||
Organic Net Sales(a): | ||||||||||||||||||||||
United States | $ | 18,641 | $ | 18,699 | $ | 18,699 | $ | 19,346 | $ | 17,756 | $ | 18,122 | ||||||||||
Canada | 2,393 | 2,359 | 2,733 | 2,811 | 1,700 | 1,732 | ||||||||||||||||
Europe | 2,520 | 2,588 | 3,022 | 3,126 | ||||||||||||||||||
EMEA | 2,666 | 2,697 | ||||||||||||||||||||
Rest of World | 3,263 | 3,082 | 3,832 | 3,458 | 2,839 | 2,842 | ||||||||||||||||
Total Organic Net Sales | $ | 26,817 | $ | 26,728 | $ | 28,286 | $ | 28,741 | $ | 24,961 | $ | 25,393 |
(a) | Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item. |
Pro Forma Net Sales(a) | Impact of Currency | Impact of Divestitures | Impact of 53rd Week | Organic Net Sales | Price | Volume/Mix | Net Sales | Currency | Acquisitions and Divestitures | Organic Net Sales | Price | Volume/Mix | |||||||||||||||||||||
2016 Compared to 2015 | |||||||||||||||||||||||||||||||||
2019 Compared to 2018 | |||||||||||||||||||||||||||||||||
United States | (1.5 | )% | 0.0 | pp | 0.0 | pp | (1.2 | ) pp | (0.3 | )% | 0.2 | pp | (0.5 | ) pp | (2.0 | )% | 0.0 pp | 0.0 pp | (2.0 | )% | 0.4 pp | (2.4) pp | |||||||||||
Canada | (3.2 | )% | (3.5 | ) pp | 0.0 | pp | (1.1 | ) pp | 1.4 | % | 0.6 | pp | 0.8 | pp | (13.4 | )% | (2.1) pp | (9.4) pp | (1.9 | )% | (3.4) pp | 1.5 pp | |||||||||||
Europe | (11.0 | )% | (5.8 | ) pp | (1.6 | ) pp | (1.0 | ) pp | (2.6 | )% | (2.5 | ) pp | (0.1 | ) pp | |||||||||||||||||||
EMEA | (6.2 | )% | (4.3) pp | (0.7) pp | (1.2 | )% | 0.0 pp | (1.2) pp | |||||||||||||||||||||||||
Rest of World | (8.7 | )% | (13.2 | ) pp | 0.0 | pp | (1.4 | ) pp | 5.9 | % | 3.2 | pp | 2.7 | pp | (14.3 | )% | (10.3) pp | (3.9) pp | (0.1 | )% | 1.2 pp | (1.3) pp | |||||||||||
Kraft Heinz | (3.5 | )% | (2.5 | ) pp | (0.1 | ) pp | (1.2 | ) pp | 0.3 | % | 0.3 | pp | 0.0 | pp | (4.9 | )% | (1.9) pp | (1.3) pp | (1.7 | )% | 0.1 pp | (1.8) pp | |||||||||||
2015 Compared to 2014 | |||||||||||||||||||||||||||||||||
United States | (2.1 | )% | 0.0 | pp | 0.0 | pp | 1.2 | pp | (3.3 | )% | 0.0 | pp | (3.3 | ) pp | |||||||||||||||||||
Canada | (15.1 | )% | (13.4 | ) pp | 0.0 | pp | 1.1 | pp | (2.8 | )% | 2.2 | pp | (5.0 | ) pp | |||||||||||||||||||
Europe | (17.8 | )% | (13.6 | ) pp | (1.9 | ) pp | 1.0 | pp | (3.3 | )% | 1.6 | pp | (4.9 | ) pp | |||||||||||||||||||
Rest of World | (7.0 | )% | (19.1 | ) pp | 0.0 | pp | 1.3 | pp | 10.8 | % | 5.2 | pp | 5.6 | pp | |||||||||||||||||||
Kraft Heinz | (5.8 | )% | (5.2 | ) pp | (0.2 | ) pp | 1.2 | pp | (1.6 | )% | 1.0 | pp | (2.6 | ) pp |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | December 28, 2019 | December 29, 2018 | ||||||||||||||
(in millions) | (in millions) | |||||||||||||||||
Segment Adjusted EBITDA: | ||||||||||||||||||
United States | $ | 5,862 | $ | 4,690 | $ | 4,421 | $ | 4,809 | $ | 5,218 | ||||||||
Canada | 642 | 541 | 615 | 487 | 608 | |||||||||||||
Europe | 781 | 938 | 939 | |||||||||||||||
EMEA | 661 | 724 | ||||||||||||||||
Rest of World | 657 | 742 | 732 | 363 | 635 | |||||||||||||
General corporate expenses | (164 | ) | (172 | ) | (181 | ) | (256 | ) | (161 | ) | ||||||||
Depreciation and amortization (excluding integration and restructuring expenses) | (536 | ) | (779 | ) | (924 | ) | (985 | ) | (919 | ) | ||||||||
Integration and restructuring expenses | (1,012 | ) | (1,117 | ) | (743 | ) | (102 | ) | (297 | ) | ||||||||
Merger costs | (30 | ) | (194 | ) | (68 | ) | ||||||||||||
Amortization of inventory step-up | ��� | (347 | ) | — | ||||||||||||||
Deal costs | (19 | ) | (23 | ) | ||||||||||||||
Unrealized gains/(losses) on commodity hedges | 38 | 41 | (79 | ) | 57 | (21 | ) | |||||||||||
Impairment losses | (53 | ) | (58 | ) | (221 | ) | (1,899 | ) | (15,936 | ) | ||||||||
Gains/(losses) on sale of business | — | 21 | — | |||||||||||||||
Nonmonetary currency devaluation | (4 | ) | (57 | ) | — | |||||||||||||
Equity award compensation expense (excluding integration and restructuring expenses) | (39 | ) | (61 | ) | (108 | ) | (46 | ) | (33 | ) | ||||||||
Other pro forma adjustments | — | (1,549 | ) | (2,815 | ) | |||||||||||||
Operating income | 6,142 | 2,639 | 1,568 | 3,070 | (10,205 | ) | ||||||||||||
Interest expense | 1,134 | 1,321 | 686 | 1,361 | 1,284 | |||||||||||||
Other expense/(income), net | (15 | ) | 305 | 79 | ||||||||||||||
Other expense/(income) | (952 | ) | (168 | ) | ||||||||||||||
Income/(loss) before income taxes | $ | 5,023 | $ | 1,013 | $ | 803 | $ | 2,661 | $ | (11,321 | ) |
2016 Compared to 2015 | 2015 Compared to 2014 | ||||||||||||||||||||||||||||||
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | % Change | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | % Change | December 28, 2019 | December 29, 2018 | % Change | |||||||||||||||||||||||
(in millions) | (in millions) | (in millions) | |||||||||||||||||||||||||||||
Net sales | $ | 18,641 | $ | 10,943 | 70.3 | % | $ | 10,943 | $ | 3,615 | 202.7 | % | $ | 17,756 | $ | 18,122 | (2.0 | )% | |||||||||||||
Pro forma net sales(a) | 18,641 | 18,932 | (1.5 | )% | 18,932 | 19,346 | (2.1 | )% | |||||||||||||||||||||||
Organic Net Sales(b) | 18,641 | 18,699 | (0.3 | )% | 18,699 | 19,346 | (3.3 | )% | |||||||||||||||||||||||
Organic Net Sales(a) | 17,756 | 18,122 | (2.0 | )% | |||||||||||||||||||||||||||
Segment Adjusted EBITDA | 5,862 | 4,690 | 25.0 | % | 4,690 | 4,421 | 6.1 | % | 4,809 | 5,218 | (7.8 | )% |
(a) |
Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item. |
2016 Compared to 2015 | 2015 Compared to 2014 | ||||||||||||||||||||||||||||||
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | % Change | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | % Change | December 28, 2019 | December 29, 2018 | % Change | |||||||||||||||||||||||
(in millions) | (in millions) | (in millions) | |||||||||||||||||||||||||||||
Net sales | $ | 2,309 | $ | 1,437 | 60.7 | % | $ | 1,437 | $ | 631 | 127.7 | % | $ | 1,882 | $ | 2,173 | (13.4 | )% | |||||||||||||
Pro forma net sales(a) | 2,309 | 2,386 | (3.2 | )% | 2,386 | 2,811 | (15.1 | )% | |||||||||||||||||||||||
Organic Net Sales(b) | 2,393 | 2,359 | 1.4 | % | 2,733 | 2,811 | (2.8 | )% | |||||||||||||||||||||||
Organic Net Sales(a) | 1,700 | 1,732 | (1.9 | )% | |||||||||||||||||||||||||||
Segment Adjusted EBITDA | 642 | 541 | 18.7 | % | 541 | 615 | (12.0 | )% | 487 | 608 | (19.9 | )% |
(a) |
Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item. |
2016 Compared to 2015 | 2015 Compared to 2014 | ||||||||||||||||||||
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | % Change | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | % Change | ||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||
Net sales | $ | 2,366 | $ | 2,656 | (10.9 | )% | $ | 2,656 | $ | 3,233 | (17.8 | )% | |||||||||
Pro forma net sales(a) | 2,366 | 2,657 | (11.0 | )% | 2,657 | 3,233 | (17.8 | )% | |||||||||||||
Organic Net Sales(b) | 2,520 | 2,588 | (2.6 | )% | 3,022 | 3,126 | (3.3 | )% | |||||||||||||
Segment Adjusted EBITDA | 781 | 938 | (16.7 | )% | 938 | 939 | (0.1 | )% |
2016 Compared to 2015 | 2015 Compared to 2014 | ||||||||||||||||||||
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | % Change | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | % Change | ||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||
Net sales | $ | 3,171 | $ | 3,302 | (4.0 | )% | $ | 3,302 | $ | 3,443 | (4.1 | )% | |||||||||
Pro forma net sales(a) | 3,171 | 3,472 | (8.7 | )% | 3,472 | 3,732 | (7.0 | )% | |||||||||||||
Organic Net Sales(b) | 3,263 | 3,082 | 5.9 | % | 3,832 | 3,458 | 10.8 | % | |||||||||||||
Segment Adjusted EBITDA | 657 | 742 | (11.5 | )% | 742 | 732 | 1.4 | % |
December 28, 2019 | December 29, 2018 | % Change | ||||||||
(in millions) | ||||||||||
Net sales | $ | 2,551 | $ | 2,718 | (6.2 | )% | ||||
Organic Net Sales(a) | 2,666 | 2,697 | (1.2 | )% | ||||||
Segment Adjusted EBITDA | 661 | 724 | (8.7 | )% |
(a) | Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item. |
December 28, 2019 | December 29, 2018 | % Change | ||||||||
(in millions) | ||||||||||
Net sales | $ | 2,788 | $ | 3,255 | (14.3 | )% | ||||
Organic Net Sales(a) | 2,839 | 2,842 | (0.1 | )% | ||||||
Segment Adjusted EBITDA | 363 | 635 | (42.8 | )% |
(a) | Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item. |
Goodwill or Brand Carrying Amount (in billions) | Discount Rate | Long-Term Growth Rate | Royalty Rate | ||||||||||||||||||
Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | ||||||||||||||||
Reporting units | $ | 32.4 | 6.8 | % | 10.3 | % | 1.0 | % | 4.0 | % | |||||||||||
Brands (excess earnings method) | 19.4 | 7.7 | % | 7.8 | % | 0.8 | % | 2.0 | % | ||||||||||||
Brands (relief from royalty method) | 6.8 | 7.0 | % | 10.7 | % | 0.5 | % | 3.5 | % | 7.0 | % | 20.0 | % |
Goodwill or Brand Carrying Amount (in billions) | Discount Rate | Long-Term Growth Rate | Royalty Rate | ||||||||||||||||||
Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | ||||||||||||||||
Reporting units | $ | 0.7 | 6.5 | % | 11.3 | % | 2.5 | % | 3.5 | % | |||||||||||
Brands (excess earnings method) | 3.3 | 7.8 | % | 7.8 | % | 1.0 | % | 1.0 | % | ||||||||||||
Brands (relief from royalty method) | 0.4 | 7.6 | % | 10.3 | % | 1.3 | % | 4.0 | % | 1.0 | % | 17.0 | % |
Discount Rate | Long-Term Growth Rate | Royalty Rate | |||||||||||||||||||||
50-Basis-Point | 25-Basis-Point | 100-Basis-Point | |||||||||||||||||||||
Increase | Decrease | Increase | Decrease | Increase | Decrease | ||||||||||||||||||
Reporting units | $ | (5.5 | ) | $ | 6.6 | $ | 2.7 | $ | (2.4 | ) | |||||||||||||
Brands (excess earnings method) | (1.4 | ) | 1.7 | 0.6 | (0.6 | ) | |||||||||||||||||
Brands (relief from royalty method) | (0.5 | ) | 0.6 | 0.2 | (0.2 | ) | $ | 0.6 | $ | (0.6 | ) |
Discount Rate | Long-Term Growth Rate | Royalty Rate | |||||||||||||||||||||
50-Basis-Point | 100-Basis-Point | ||||||||||||||||||||||
Increase | Decrease | Increase | Decrease | Increase | Decrease | ||||||||||||||||||
Reporting units | $ | (0.2 | ) | $ | 0.2 | $ | 0.1 | $ | (0.1 | ) | |||||||||||||
Brands (excess earnings method) | (0.3 | ) | 0.3 | 0.1 | (0.1 | ) | |||||||||||||||||
Brands (relief from royalty method) | — | — | — | — | $ | 0.1 | $ | (0.1 | ) |
One-Percentage-Point | One-Percentage-Point | |||||||||||||
Increase | Decrease | Increase | (Decrease) | |||||||||||
Effect on annual service and interest cost | $ | 6 | $ | (5 | ) | $ | 3 | $ | (2 | ) | ||||
Effect on postretirement benefit obligation | 74 | (63 | ) | 55 | (47 | ) |
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||||
100-Basis-Point | 100-Basis-Point | 100-Basis-Point | 100-Basis-Point | |||||||||||||||||||||||||||
Increase | Decrease | Increase | Decrease | Increase | Decrease | Increase | Decrease | |||||||||||||||||||||||
Effect of change in discount rate on pension costs | $ | 12 | $ | (13 | ) | $ | 7 | $ | (12 | ) | $ | 11 | $ | (27 | ) | $ | 8 | $ | (5 | ) | ||||||||||
Effect of change in expected rate of return on plan assets on pension costs | (46 | ) | 46 | (37 | ) | 37 | (47 | ) | 47 | (28 | ) | 28 | ||||||||||||||||||
Effect of change in discount rate on postretirement costs | (1 | ) | (10 | ) | — | 1 | (8 | ) | 6 | (1 | ) | (1 | ) | |||||||||||||||||
Effect of change in expected rate of return on plan assets on postretirement costs | (11 | ) | 11 | — | — |
Payments Due | Payments Due | |||||||||||||||||||||||||||
2017 | 2018-2019 | 2020-2021 | 2022 and Thereafter | Total | 2020 | 2021-2022 | 2023-2024 | 2025 and Thereafter | Total | |||||||||||||||||||
Long-term debt(a) | 3,251 | 5,015 | 5,138 | 36,872 | 50,276 | 2,222 | 5,394 | 4,434 | 35,773 | 47,823 | ||||||||||||||||||
Capital leases(b) | 27 | 18 | 19 | 58 | 122 | |||||||||||||||||||||||
Finance leases(b) | 33 | 96 | 17 | 80 | 226 | |||||||||||||||||||||||
Operating leases(c) | 94 | 169 | 104 | 107 | 474 | 163 | 210 | 108 | 156 | 637 | ||||||||||||||||||
Purchase obligations(d) | 1,861 | 1,039 | 377 | 366 | 3,643 | 1,324 | 1,038 | 493 | 89 | 2,944 | ||||||||||||||||||
Other long-term liabilities(e) | 187 | 322 | 287 | 597 | 1,393 | 47 | 87 | 125 | 155 | 414 | ||||||||||||||||||
Total | 5,420 | 6,563 | 5,925 | 38,000 | 55,908 | 3,789 | 6,825 | 5,177 | 36,253 | 52,044 |
(a) | Amounts represent the expected cash payments of our long-term debt, including interest on variable and fixed rate long-term debt. Interest on variable rate long-term debt is calculated based on interest rates at December |
(b) | Amounts represent the expected cash payments of our |
(c) | Operating leases represent the minimum rental commitments under |
(d) | We have purchase obligations for materials, supplies, property, plant and equipment, and co-packing, storage, and distribution services based on projected needs to be utilized in the normal course of business. Other purchase obligations include commitments for marketing, advertising, capital expenditures, information technology, and professional services. Arrangements are considered purchase obligations if a contract specifies all significant terms, including fixed or minimum quantities to be purchased, a pricing structure, and approximate timing of the transaction. |
(e) | Other long-term liabilities primarily consist of estimated payments for the one-time toll charge related to U.S. Tax Reform, as well as postretirement benefit commitments. |
January 3, 2016 | December 28, 2014 | ||||||
Net sales | $ | 27,447 | $ | 29,122 | |||
Cost of products sold | 18,299 | 20,146 | |||||
Gross profit | 9,148 | 8,976 | |||||
Selling, general and administrative expenses | 4,613 | 4,593 | |||||
Operating income | 4,535 | 4,383 | |||||
Interest expense | 1,528 | 1,113 | |||||
Other expense/(income), net | 289 | 57 | |||||
Income/(loss) before income taxes | 2,718 | 3,213 | |||||
Provision for/(benefit from) income taxes | 944 | 880 | |||||
Net income/(loss) | 1,774 | 2,333 | |||||
Net income/(loss) attributable to noncontrolling interest | 13 | 15 | |||||
Net income/(loss) attributable to Kraft Heinz | 1,761 | 2,318 | |||||
Preferred dividends | 900 | 720 | |||||
Net income/(loss) attributable to common shareholders | $ | 861 | $ | 1,598 | |||
Basic common shares outstanding | 1,202 | 1,192 | |||||
Diluted common shares outstanding | 1,222 | 1,222 | |||||
Per share data applicable to common shareholders: | |||||||
Basic earnings/(loss) | $ | 0.72 | $ | 1.34 | |||
Diluted earnings/(loss) | 0.70 | 1.31 |
Kraft Heinz | Historical Kraft | Pro Forma Adjustments | Pro Forma | ||||||||||||
Net sales | $ | 18,338 | $ | 9,109 | $ | — | $ | 27,447 | |||||||
Cost of products sold | 12,577 | 6,103 | (381 | ) | 18,299 | ||||||||||
Gross profit | 5,761 | 3,006 | 381 | 9,148 | |||||||||||
Selling, general and administrative expenses | 3,122 | 1,532 | (41 | ) | 4,613 | ||||||||||
Operating income | 2,639 | 1,474 | 422 | 4,535 | |||||||||||
Interest expense | 1,321 | 247 | (40 | ) | 1,528 | ||||||||||
Other expense/(income), net | 305 | (16 | ) | — | 289 | ||||||||||
Income/(loss) before income taxes | 1,013 | 1,243 | 462 | 2,718 | |||||||||||
Provision for/(benefit from) income taxes | 366 | 400 | 178 | 944 | |||||||||||
Net income/(loss) | 647 | 843 | 284 | 1,774 | |||||||||||
Net income/(loss) attributable to noncontrolling interest | 13 | — | — | 13 | |||||||||||
Net income/(loss) attributable to Kraft Heinz | 634 | 843 | 284 | 1,761 | |||||||||||
Preferred dividends | 900 | — | — | 900 | |||||||||||
Net income/(loss) attributable to common shareholders | $ | (266 | ) | $ | 843 | $ | 284 | $ | 861 | ||||||
Basic common shares outstanding | 786 | — | 416 | 1,202 | |||||||||||
Diluted common shares outstanding | 786 | — | 436 | 1,222 | |||||||||||
Per share data applicable to common shareholders: | |||||||||||||||
Basic earnings/(loss) | $ | (0.34 | ) | $ | — | $ | 1.06 | $ | 0.72 | ||||||
Diluted earnings/(loss) | (0.34 | ) | — | 1.04 | 0.70 |
Historical Heinz | Historical Kraft | Pro Forma Adjustments | Pro Forma | ||||||||||||
Net sales | $ | 10,922 | $ | 18,200 | $ | — | $ | 29,122 | |||||||
Cost of products sold | 7,645 | 13,248 | (747 | ) | 20,146 | ||||||||||
Gross profit | 3,277 | 4,952 | 747 | 8,976 | |||||||||||
Selling, general and administrative expenses | 1,709 | 3,062 | (178 | ) | 4,593 | ||||||||||
Operating income | 1,568 | 1,890 | 925 | 4,383 | |||||||||||
Interest expense | 686 | 507 | (80 | ) | 1,113 | ||||||||||
Other expense/(income), net | 79 | (22 | ) | — | 57 | ||||||||||
Income/(loss) before income taxes | 803 | 1,405 | 1,005 | 3,213 | |||||||||||
Provision for/(benefit from) income taxes | 131 | 363 | 386 | 880 | |||||||||||
Net income/(loss) | 672 | 1,042 | 619 | 2,333 | |||||||||||
Net income/(loss) attributable to noncontrolling interest | 15 | — | — | 15 | |||||||||||
Net income/(loss) attributable to Kraft Heinz | 657 | 1,042 | 619 | 2,318 | |||||||||||
Preferred dividends | 720 | — | — | 720 | |||||||||||
Net income/(loss) attributable to common shareholders | $ | (63 | ) | $ | 1,042 | $ | 619 | $ | 1,598 | ||||||
Basic common shares outstanding | 377 | 593 | 222 | 1,192 | |||||||||||
Diluted common shares outstanding | 377 | 600 | 245 | 1,222 | |||||||||||
Per share data applicable to common shareholders: | |||||||||||||||
Basic earnings/(loss) | $ | (0.17 | ) | $ | 1.76 | $ | (0.25 | ) | $ | 1.34 | |||||
Diluted earnings/(loss) | (0.17 | ) | 1.74 | (0.26 | ) | 1.31 |
January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | ||||||
Impact to cost of products sold: | |||||||
Postemployment benefit costs(a) | $ | (34 | ) | $ | (747 | ) | |
Inventory step-up(b) | (347 | ) | — | ||||
Impact to cost of products sold | $ | (381 | ) | $ | (747 | ) | |
Impact to selling, general and administrative expenses: | |||||||
Depreciation and amortization(c) | $ | 84 | $ | 168 | |||
Compensation expense(d) | 31 | 68 | |||||
Postemployment benefit costs(a) | 11 | (414 | ) | ||||
Deal costs(e) | (167 | ) | — | ||||
Impact to selling, general and administrative expenses | $ | (41 | ) | $ | (178 | ) | |
Impact to interest expense: | |||||||
Interest expense(f) | $ | (40 | ) | $ | (80 | ) | |
Impact to interest expense | $ | (40 | ) | $ | (80 | ) |
Pro Forma Net Sales(a) | Impact of Currency | Impact of Divestitures | Impact of 53rd Week | Organic Net Sales | Price | Volume/Mix | Net Sales | Currency | Acquisitions and Divestitures | Organic Net Sales | Price | Volume/Mix | ||||||||||||||||||||||||||||||
2016 (52 weeks) | ||||||||||||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||||||||||
United States | $ | 18,641 | $ | — | $ | — | $ | — | $ | 18,641 | $ | 17,756 | $ | — | $ | — | $ | 17,756 | ||||||||||||||||||||||||
Canada | 2,309 | (84 | ) | — | — | 2,393 | 1,882 | (45 | ) | 227 | 1,700 | |||||||||||||||||||||||||||||||
Europe | 2,366 | (154 | ) | — | — | 2,520 | ||||||||||||||||||||||||||||||||||||
EMEA | 2,551 | (115 | ) | — | 2,666 | |||||||||||||||||||||||||||||||||||||
Rest of World | 3,171 | (92 | ) | — | — | 3,263 | 2,788 | (102 | ) | 51 | 2,839 | |||||||||||||||||||||||||||||||
Kraft Heinz | $ | 24,977 | $ | (262 | ) | $ | 278 | $ | 24,961 | |||||||||||||||||||||||||||||||||
$ | 26,487 | $ | (330 | ) | $ | — | $ | — | $ | 26,817 | ||||||||||||||||||||||||||||||||
2015 (53 weeks) | ||||||||||||||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||||||
United States | $ | 18,932 | $ | — | $ | — | $ | 233 | $ | 18,699 | $ | 18,122 | $ | — | $ | — | $ | 18,122 | ||||||||||||||||||||||||
Canada | 2,386 | — | — | 27 | 2,359 | 2,173 | — | 441 | 1,732 | |||||||||||||||||||||||||||||||||
Europe | 2,657 | — | 42 | 27 | 2,588 | |||||||||||||||||||||||||||||||||||||
EMEA | 2,718 | — | 21 | 2,697 | ||||||||||||||||||||||||||||||||||||||
Rest of World | 3,472 | 351 | — | 39 | 3,082 | 3,255 | 243 | 170 | 2,842 | |||||||||||||||||||||||||||||||||
$ | 27,447 | $ | 351 | $ | 42 | $ | 326 | $ | 26,728 | |||||||||||||||||||||||||||||||||
Kraft Heinz | $ | 26,268 | $ | 243 | $ | 632 | $ | 25,393 |
Year-over-year growth rates | ||||||||||||||||||||
United States | (1.5 | )% | 0.0 | pp | 0.0 | pp | (1.2 | ) pp | (0.3 | )% | 0.2 | pp | (0.5 | ) pp | ||||||
Canada | (3.2 | )% | (3.5 | ) pp | 0.0 | pp | (1.1 | ) pp | 1.4 | % | 0.6 | pp | 0.8 | pp | ||||||
Europe | (11.0 | )% | (5.8 | ) pp | (1.6 | ) pp | (1.0 | ) pp | (2.6 | )% | (2.5 | ) pp | (0.1 | ) pp | ||||||
Rest of World | (8.7 | )% | (13.2 | ) pp | 0.0 | pp | (1.4 | ) pp | 5.9 | % | 3.2 | pp | 2.7 | pp | ||||||
Kraft Heinz | (3.5 | )% | (2.5 | ) pp | (0.1 | ) pp | (1.2 | ) pp | 0.3 | % | 0.3 | pp | 0.0 | pp |
Year-over-year growth rates | |||||||||||||
United States | (2.0 | )% | 0.0 pp | 0.0 pp | (2.0 | )% | 0.4 pp | (2.4) pp | |||||
Canada | (13.4 | )% | (2.1) pp | (9.4) pp | (1.9 | )% | (3.4) pp | 1.5 pp | |||||
EMEA | (6.2 | )% | (4.3) pp | (0.7) pp | (1.2 | )% | 0.0 pp | (1.2) pp | |||||
Rest of World | (14.3 | )% | (10.3) pp | (3.9) pp | (0.1 | )% | 1.2 pp | (1.3) pp | |||||
Kraft Heinz | (4.9 | )% | (1.9) pp | (1.3) pp | (1.7 | )% | 0.1 pp | (1.8) pp |
Pro Forma Net Sales(a) | Impact of Currency | Impact of Divestitures | Impact of 53rd Week | Organic Net Sales | Price | Volume/Mix | Net Sales | Currency | Acquisitions and Divestitures | Organic Net Sales | Price | Volume/Mix | ||||||||||||||||||||||||||||||
2015 (53 weeks) | ||||||||||||||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||||||
United States | $ | 18,932 | $ | — | $ | — | $ | 233 | $ | 18,699 | $ | 18,122 | $ | — | $ | — | $ | 18,122 | ||||||||||||||||||||||||
Canada | 2,386 | (378 | ) | — | 31 | 2,733 | 2,173 | (5 | ) | 443 | 1,735 | |||||||||||||||||||||||||||||||
Europe | 2,657 | (439 | ) | 42 | 32 | 3,022 | ||||||||||||||||||||||||||||||||||||
EMEA | 2,718 | 66 | 19 | 2,633 | ||||||||||||||||||||||||||||||||||||||
Rest of World | 3,472 | (404 | ) | — | 44 | 3,832 | 3,255 | (75 | ) | 334 | 2,996 | |||||||||||||||||||||||||||||||
Kraft Heinz | $ | 26,268 | $ | (14 | ) | $ | 796 | $ | 25,486 | |||||||||||||||||||||||||||||||||
$ | 27,447 | $ | (1,221 | ) | $ | 42 | $ | 340 | $ | 28,286 | ||||||||||||||||||||||||||||||||
2014 (52 weeks) | ||||||||||||||||||||||||||||||||||||||||||
2017 | ||||||||||||||||||||||||||||||||||||||||||
United States | $ | 19,346 | $ | — | $ | — | $ | — | $ | 19,346 | $ | 18,230 | $ | — | $ | — | $ | 18,230 | ||||||||||||||||||||||||
Canada | 2,811 | — | — | — | 2,811 | 2,177 | — | 430 | 1,747 | |||||||||||||||||||||||||||||||||
Europe | 3,233 | — | 107 | — | 3,126 | |||||||||||||||||||||||||||||||||||||
EMEA | 2,585 | — | 56 | 2,529 | ||||||||||||||||||||||||||||||||||||||
Rest of World | 3,732 | 274 | — | — | 3,458 | 3,084 | 144 | 165 | 2,775 | |||||||||||||||||||||||||||||||||
$ | 29,122 | $ | 274 | $ | 107 | $ | — | $ | 28,741 | |||||||||||||||||||||||||||||||||
Kraft Heinz | $ | 26,076 | $ | 144 | $ | 651 | $ | 25,281 |
Year-over-year growth rates | |||||||||||||||||||||||||||||||||
United States | (2.1 | )% | 0.0 | pp | 0.0 | pp | 1.2 | pp | (3.3 | )% | 0.0 | pp | (3.3 | ) pp | (0.6 | )% | 0.0 pp | 0.0 pp | (0.6 | )% | (0.9) pp | 0.3 pp | |||||||||||
Canada | (15.1 | )% | (13.4 | ) pp | 0.0 | pp | 1.1 | pp | (2.8 | )% | 2.2 | pp | (5.0 | ) pp | (0.2 | )% | (0.3) pp | 0.7 pp | (0.6 | )% | (0.4) pp | (0.2) pp | |||||||||||
Europe | (17.8 | )% | (13.6 | ) pp | (1.9 | ) pp | 1.0 | pp | (3.3 | )% | 1.6 | pp | (4.9 | ) pp | |||||||||||||||||||
EMEA | 5.1 | % | 2.5 pp | (1.5) pp | 4.1 | % | 0.9 pp | 3.2 pp | |||||||||||||||||||||||||
Rest of World | (7.0 | )% | (19.1 | ) pp | 0.0 | pp | 1.3 | pp | 10.8 | % | 5.2 | pp | 5.6 | pp | 5.6 | % | (7.6) pp | 5.2 pp | 8.0 | % | 6.1 pp | 1.9 pp | |||||||||||
Kraft Heinz | (5.8 | )% | (5.2 | ) pp | (0.2 | ) pp | 1.2 | pp | (1.6 | )% | 1.0 | pp | (2.6 | ) pp | 0.7 | % | (0.6) pp | 0.5 pp | 0.8 | % | 0.0 pp | 0.8 pp |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | |||||||||
Pro forma net income/(loss)(a) | $ | 3,642 | $ | 1,774 | $ | 2,333 | |||||
Interest expense | 1,134 | 1,528 | 1,113 | ||||||||
Other expense/(income), net | (15 | ) | 289 | 57 | |||||||
Provision for/(benefit from) income taxes | 1,381 | 944 | 880 | ||||||||
Operating income | 6,142 | 4,535 | 4,383 | ||||||||
Depreciation and amortization (excluding integration and restructuring expenses) | 536 | 779 | 924 | ||||||||
Integration and restructuring expenses | 1,012 | 1,117 | 743 | ||||||||
Merger costs | 30 | 194 | 68 | ||||||||
Unrealized losses/(gains) on commodity hedges | (38 | ) | (41 | ) | 79 | ||||||
Impairment losses | 53 | 58 | 221 | ||||||||
Losses/(gains) on sale of business | — | (21 | ) | — | |||||||
Nonmonetary currency devaluation | 4 | 57 | — | ||||||||
Equity award compensation expense (excluding integration and restructuring expenses) | 39 | 61 | 108 | ||||||||
Adjusted EBITDA | $ | 7,778 | $ | 6,739 | $ | 6,526 |
December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||
Net income/(loss) | $ | 1,933 | $ | (10,254 | ) | $ | 10,932 | ||||
Interest expense | 1,361 | 1,284 | 1,234 | ||||||||
Other expense/(income) | (952 | ) | (168 | ) | (627 | ) | |||||
Provision for/(benefit from) income taxes | 728 | (1,067 | ) | (5,482 | ) | ||||||
Operating income/(loss) | 3,070 | (10,205 | ) | 6,057 | |||||||
Depreciation and amortization (excluding integration and restructuring expenses) | 985 | 919 | 907 | ||||||||
Integration and restructuring expenses | 102 | 297 | 583 | ||||||||
Deal costs | 19 | 23 | — | ||||||||
Unrealized losses/(gains) on commodity hedges | (57 | ) | 21 | 19 | |||||||
Impairment losses | 1,899 | 15,936 | 49 | ||||||||
Equity award compensation expense (excluding integration and restructuring expenses) | 46 | 33 | 49 | ||||||||
Adjusted EBITDA | $ | 6,064 | $ | 7,024 | $ | 7,664 |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | |||||||||
Pro forma diluted EPS(a) | $ | 2.81 | $ | 0.70 | $ | 1.31 | |||||
Integration and restructuring expenses(b)(c) | 0.57 | 0.61 | 0.47 | ||||||||
Merger costs(b)(d) | 0.02 | 0.49 | 0.04 | ||||||||
Unrealized losses/(gains) on commodity hedges(b)(e) | (0.02 | ) | (0.02 | ) | 0.05 | ||||||
Impairment losses(b)(e) | 0.03 | 0.03 | 0.11 | ||||||||
Losses/(gains) on sale of business(b)(e) | — | (0.01 | ) | — | |||||||
Nonmonetary currency devaluation(b)(f) | 0.02 | 0.24 | — | ||||||||
Preferred dividend adjustment(g) | (0.10 | ) | 0.15 | — | |||||||
Adjusted EPS | $ | 3.33 | $ | 2.19 | $ | 1.98 |
December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||
Diluted EPS | $ | 1.58 | $ | (8.36 | ) | $ | 8.91 | ||||
Integration and restructuring expenses(a) | 0.07 | 0.32 | 0.24 | ||||||||
Deal costs(b) | 0.02 | 0.02 | — | ||||||||
Unrealized losses/(gains) on commodity hedges(c) | (0.04 | ) | 0.01 | 0.01 | |||||||
Impairment losses(d) | 1.38 | 11.28 | 0.03 | ||||||||
Losses/(gains) on sale of business(e) | (0.23 | ) | 0.01 | — | |||||||
Other losses/(gains) related to acquisitions and divestitures(f) | — | 0.02 | — | ||||||||
Nonmonetary currency devaluation(g) | 0.01 | 0.12 | 0.03 | ||||||||
Debt prepayment and extinguishment costs(h) | 0.06 | — | — | ||||||||
U.S. Tax Reform discrete income tax expense/(benefit)(i) | — | 0.09 | (5.72 | ) | |||||||
Adjusted EPS | $ | 2.85 | $ | 3.51 | $ | 3.50 |
(a) | Gross expenses included in integration and restructuring expenses were $108 million in 2019 ($83 million after-tax), $460 million in 2018 ($396 million after-tax) and $434 million in 2017 ($305 million after-tax) and were recorded in the following income statement line items: |
• |
(b) | Gross expenses included in deal costs were |
(c) | Gross expenses/(income) included in unrealized losses/(gains) on commodity hedges were income of $57 million in 2019 ($43 million after-tax) and expenses of $21 million in 2018 ($16 million after-tax) and $19 million in 2017 ($12 million after-tax) and were recorded in cost of products sold. |
(d) | Gross impairment losses, which were recorded in SG&A, included the |
• | Intangible asset impairment losses of |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | ||||||
Commodity contracts | $ | 39 | $ | 54 | |||
Foreign currency contracts | 179 | 194 | |||||
Cross-currency swap contracts | 306 | 447 |
December 28, 2019 | December 29, 2018 | ||||||
Commodity contracts | $ | 43 | $ | 38 | |||
Foreign currency contracts | 73 | 100 | |||||
Cross-currency swap contracts | 412 | 402 |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||||||||||
Net sales | $ | 26,487 | $ | 18,338 | $ | 10,922 | $ | 24,977 | $ | 26,268 | $ | 26,076 | ||||||||||
Cost of products sold | 16,901 | 12,577 | 7,645 | 16,830 | 17,347 | 17,043 | ||||||||||||||||
Gross profit | 9,586 | 5,761 | 3,277 | 8,147 | 8,921 | 9,033 | ||||||||||||||||
Selling, general and administrative expenses, excluding impairment losses | 3,178 | 3,190 | 2,927 | |||||||||||||||||||
Goodwill impairment losses | 1,197 | 7,008 | — | |||||||||||||||||||
Intangible asset impairment losses | 702 | 8,928 | 49 | |||||||||||||||||||
Selling, general and administrative expenses | 3,444 | 3,122 | 1,709 | 5,077 | 19,126 | 2,976 | ||||||||||||||||
Operating income | 6,142 | 2,639 | 1,568 | |||||||||||||||||||
Operating income/(loss) | 3,070 | (10,205 | ) | 6,057 | ||||||||||||||||||
Interest expense | 1,134 | 1,321 | 686 | 1,361 | 1,284 | 1,234 | ||||||||||||||||
Other expense/(income), net | (15 | ) | 305 | 79 | ||||||||||||||||||
Other expense/(income) | (952 | ) | (168 | ) | (627 | ) | ||||||||||||||||
Income/(loss) before income taxes | 5,023 | 1,013 | 803 | 2,661 | (11,321 | ) | 5,450 | |||||||||||||||
Provision for/(benefit from) income taxes | 1,381 | 366 | 131 | 728 | (1,067 | ) | (5,482 | ) | ||||||||||||||
Net income/(loss) | 3,642 | 647 | 672 | 1,933 | (10,254 | ) | 10,932 | |||||||||||||||
Net income/(loss) attributable to noncontrolling interest | 10 | 13 | 15 | (2 | ) | (62 | ) | (9 | ) | |||||||||||||
Net income/(loss) attributable to Kraft Heinz | 3,632 | 634 | 657 | |||||||||||||||||||
Preferred dividends | 180 | 900 | 720 | |||||||||||||||||||
Net income/(loss) attributable to common shareholders | $ | 3,452 | $ | (266 | ) | $ | (63 | ) | $ | 1,935 | $ | (10,192 | ) | $ | 10,941 | |||||||
Per share data applicable to common shareholders: | ||||||||||||||||||||||
Basic earnings/(loss) | $ | 2.84 | $ | (0.34 | ) | $ | (0.17 | ) | $ | 1.59 | $ | (8.36 | ) | $ | 8.98 | |||||||
Diluted earnings/(loss) | 2.81 | (0.34 | ) | (0.17 | ) | 1.58 | (8.36 | ) | 8.91 | |||||||||||||
Dividends declared | 2.35 | 1.70 | — |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||||||||||
Net income/(loss) | $ | 3,642 | $ | 647 | $ | 672 | $ | 1,933 | $ | (10,254 | ) | $ | 10,932 | |||||||||
Other comprehensive income/(loss), net of tax: | ||||||||||||||||||||||
Foreign currency translation adjustments | (986 | ) | (1,604 | ) | (939 | ) | 246 | (1,187 | ) | 1,185 | ||||||||||||
Net deferred gains/(losses) on net investment hedges | 226 | 506 | 336 | 1 | 284 | (353 | ) | |||||||||||||||
Amounts excluded from the effectiveness assessment of net investment hedges | 22 | 7 | — | |||||||||||||||||||
Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) | (16 | ) | (7 | ) | — | |||||||||||||||||
Net deferred gains/(losses) on cash flow hedges | (10 | ) | 99 | (113 | ) | |||||||||||||||||
Amounts excluded from the effectiveness assessment of cash flow hedges | 29 | 2 | — | |||||||||||||||||||
Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) | (41 | ) | (44 | ) | 85 | |||||||||||||||||
Net actuarial gains/(losses) arising during the period | (40 | ) | 23 | (34 | ) | (70 | ) | 58 | 69 | |||||||||||||
Prior service credits/(costs) arising during the period | 97 | 923 | — | 1 | 3 | 17 | ||||||||||||||||
Reclassification of net postemployment benefit losses/(gains) | (207 | ) | (85 | ) | (7 | ) | ||||||||||||||||
Net deferred gains/(losses) on cash flow hedges | 46 | (6 | ) | (173 | ) | |||||||||||||||||
Net deferred losses/(gains) on cash flow hedges reclassified to net income | (87 | ) | 120 | 4 | ||||||||||||||||||
Net postemployment benefit losses/(gains) reclassified to net income/(loss) | (234 | ) | (118 | ) | (309 | ) | ||||||||||||||||
Total other comprehensive income/(loss) | (951 | ) | (123 | ) | (813 | ) | (72 | ) | (903 | ) | 581 | |||||||||||
Total comprehensive income/(loss) | 2,691 | 524 | (141 | ) | 1,861 | (11,157 | ) | 11,513 | ||||||||||||||
Comprehensive income/(loss) attributable to noncontrolling interest | 16 | (13 | ) | 8 | 5 | (76 | ) | (3 | ) | |||||||||||||
Comprehensive income/(loss) attributable to Kraft Heinz | $ | 2,675 | $ | 537 | $ | (149 | ) | |||||||||||||||
Comprehensive income/(loss) attributable to common shareholders | $ | 1,856 | $ | (11,081 | ) | $ | 11,516 |
December 28, 2019 | December 29, 2018 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 2,279 | $ | 1,130 | |||
Trade receivables (net of allowances of $33 at December 28, 2019 and $24 at December 29, 2018) | 1,973 | 2,129 | |||||
Income taxes receivable | 173 | 152 | |||||
Inventories | 2,721 | 2,667 | |||||
Prepaid expenses | 384 | 400 | |||||
Other current assets | 445 | 1,221 | |||||
Assets held for sale | 122 | 1,376 | |||||
Total current assets | 8,097 | 9,075 | |||||
Property, plant and equipment, net | 7,055 | 7,078 | |||||
Goodwill | 35,546 | 36,503 | |||||
Intangible assets, net | 48,652 | 49,468 | |||||
Other non-current assets | 2,100 | 1,337 | |||||
TOTAL ASSETS | $ | 101,450 | $ | 103,461 | |||
LIABILITIES AND EQUITY | |||||||
Commercial paper and other short-term debt | $ | 6 | $ | 21 | |||
Current portion of long-term debt | 1,022 | 377 | |||||
Trade payables | 4,003 | 4,153 | |||||
Accrued marketing | 647 | 722 | |||||
Interest payable | 384 | 408 | |||||
Other current liabilities | 1,804 | 1,767 | |||||
Liabilities held for sale | 9 | 55 | |||||
Total current liabilities | 7,875 | 7,503 | |||||
Long-term debt | 28,216 | 30,770 | |||||
Deferred income taxes | 11,878 | 12,202 | |||||
Accrued postemployment costs | 273 | 306 | |||||
Other non-current liabilities | 1,459 | 902 | |||||
TOTAL LIABILITIES | 49,701 | 51,683 | |||||
Commitments and Contingencies (Note 17) | |||||||
Redeemable noncontrolling interest | — | 3 | |||||
Equity: | |||||||
Common stock, $0.01 par value (5,000 shares authorized; 1,224 shares issued and 1,221 shares outstanding at December 28, 2019; 1,224 shares issued and 1,220 shares outstanding at December 29, 2018) | 12 | 12 | |||||
Additional paid-in capital | 56,828 | 58,723 | |||||
Retained earnings/(deficit) | (3,060 | ) | (4,853 | ) | |||
Accumulated other comprehensive income/(losses) | (1,886 | ) | (1,943 | ) | |||
Treasury stock, at cost (3 shares at December 28, 2019 and 4 shares at December 29, 2018) | (271 | ) | (282 | ) | |||
Total shareholders' equity | 51,623 | 51,657 | |||||
Noncontrolling interest | 126 | 118 | |||||
TOTAL EQUITY | 51,749 | 51,775 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 101,450 | $ | 103,461 |
December 31, 2016 | January 3, 2016 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 4,204 | $ | 4,837 | |||
Trade receivables (net of allowances of $20 at December 31, 2016 and $32 at January 3, 2016) | 769 | 871 | |||||
Sold receivables | 129 | 583 | |||||
Inventories | 2,684 | 2,618 | |||||
Other current assets | 967 | 871 | |||||
Total current assets | 8,753 | 9,780 | |||||
Property, plant and equipment, net | 6,688 | 6,524 | |||||
Goodwill | 44,125 | 43,051 | |||||
Intangible assets, net | 59,297 | 62,120 | |||||
Other assets | 1,617 | 1,498 | |||||
TOTAL ASSETS | $ | 120,480 | $ | 122,973 | |||
LIABILITIES AND EQUITY | |||||||
Commercial paper and other short-term debt | $ | 645 | $ | 4 | |||
Current portion of long-term debt | 2,046 | 79 | |||||
Trade payables | 3,996 | 2,844 | |||||
Accrued marketing | 749 | 856 | |||||
Accrued postemployment costs | 157 | 328 | |||||
Income taxes payable | 255 | 417 | |||||
Interest payable | 415 | 401 | |||||
Dividends payable | 39 | 762 | |||||
Other current liabilities | 1,199 | 1,241 | |||||
Total current liabilities | 9,501 | 6,932 | |||||
Long-term debt | 29,713 | 25,151 | |||||
Deferred income taxes | 20,848 | 21,497 | |||||
Accrued postemployment costs | 2,038 | 2,405 | |||||
Other liabilities | 806 | 752 | |||||
TOTAL LIABILITIES | 62,906 | 56,737 | |||||
Commitments and Contingencies (Note 16) | |||||||
Redeemable noncontrolling interest | — | 23 | |||||
9.00% cumulative compounding preferred stock, Series A, no shares authorized and issued at December 31, 2016 and 80,000 authorized and issued shares at January 3, 2016, $0.01 par value | — | 8,320 | |||||
Equity: | |||||||
Common stock, $0.01 par value (5,000,000,000 shares authorized; 1,218,947,088 shares issued and 1,216,475,740 shares outstanding at December 31, 2016; 1,214,391,614 shares issued and 1,213,978,752 shares outstanding at January 3, 2016) | 12 | 12 | |||||
Additional paid-in capital | 58,593 | 58,375 | |||||
Retained earnings/(deficit) | 588 | — | |||||
Accumulated other comprehensive income/(losses) | (1,628 | ) | (671 | ) | |||
Treasury stock, at cost | (207 | ) | (31 | ) | |||
Total shareholders' equity | 57,358 | 57,685 | |||||
Noncontrolling interest | 216 | 208 | |||||
TOTAL EQUITY | 57,574 | 57,893 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 120,480 | $ | 122,973 |
Common Stock | Additional Paid-in Capital | Retained Earnings/(Deficit) | Accumulated Other Comprehensive Income/(Losses) | Treasury Stock, at Cost | Noncontrolling Interest | Total Equity | |||||||||||||||||||||
Balance at December 31, 2016 | $ | 12 | $ | 58,516 | $ | 552 | $ | (1,629 | ) | $ | (207 | ) | $ | 216 | $ | 57,460 | |||||||||||
Net income/(loss) excluding redeemable noncontrolling interest | — | — | 10,941 | — | — | (5 | ) | 10,936 | |||||||||||||||||||
Other comprehensive income/(loss) | — | — | — | 575 | — | 6 | 581 | ||||||||||||||||||||
Dividends declared-common stock ($2.45 per share) | — | — | (2,988 | ) | — | — | — | (2,988 | ) | ||||||||||||||||||
Dividends declared-noncontrolling interest ($52.75 per share) | — | — | — | — | — | (10 | ) | (10 | ) | ||||||||||||||||||
Exercise of stock options, issuance of other stock awards, and other | — | 118 | (10 | ) | — | (17 | ) | — | 91 | ||||||||||||||||||
Balance at December 30, 2017 | 12 | 58,634 | 8,495 | (1,054 | ) | (224 | ) | 207 | 66,070 | ||||||||||||||||||
Net income/(loss) excluding redeemable noncontrolling interest | — | — | (10,192 | ) | — | — | (50 | ) | (10,242 | ) | |||||||||||||||||
Other comprehensive income/(loss) | — | — | — | (889 | ) | — | (14 | ) | (903 | ) | |||||||||||||||||
Dividends declared-common stock ($2.50 per share) | — | — | (3,048 | ) | — | — | — | (3,048 | ) | ||||||||||||||||||
Dividends declared-noncontrolling interest ($174.76 per share) | — | — | — | — | — | (12 | ) | (12 | ) | ||||||||||||||||||
Cumulative effect of accounting standards adopted in the period | — | — | (97 | ) | — | — | — | (97 | ) | ||||||||||||||||||
Exercise of stock options, issuance of other stock awards, and other | — | 89 | (11 | ) | — | (58 | ) | (13 | ) | 7 | |||||||||||||||||
Balance at December 29, 2018 | 12 | 58,723 | (4,853 | ) | (1,943 | ) | (282 | ) | 118 | 51,775 | |||||||||||||||||
Net income/(loss) excluding redeemable noncontrolling interest | — | — | 1,935 | — | — | 6 | 1,941 | ||||||||||||||||||||
Other comprehensive income/(loss) | — | — | — | (79 | ) | — | 7 | (72 | ) | ||||||||||||||||||
Dividends declared-common stock ($1.60 per share) | — | (1,959 | ) | — | — | — | — | (1,959 | ) | ||||||||||||||||||
Dividends declared-noncontrolling interest ($75.63 per share) | — | — | — | — | — | (5 | ) | (5 | ) | ||||||||||||||||||
Cumulative effect of accounting standards adopted in the period | — | — | (136 | ) | 136 | — | — | — | |||||||||||||||||||
Exercise of stock options, issuance of other stock awards, and other | — | 64 | (6 | ) | — | 11 | — | 69 | |||||||||||||||||||
Balance at December 28, 2019 | $ | 12 | $ | 56,828 | $ | (3,060 | ) | $ | (1,886 | ) | $ | (271 | ) | $ | 126 | $ | 51,749 |
Common Stock | Warrants | Additional Paid-in Capital | Retained Earnings/ (Deficit) | Accumulated Other Comprehensive Income/(Losses) | Treasury Stock | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||
Balance at December 29, 2013 | $ | 4 | $ | 367 | $ | 7,450 | $ | (77 | ) | $ | 232 | $ | — | $ | 216 | $ | 8,192 | ||||||||||||||
Net income/(loss) excluding redeemable noncontrolling interest | — | — | — | 657 | — | — | 14 | 671 | |||||||||||||||||||||||
Other comprehensive income/(loss) excluding redeemable noncontrolling interest | — | — | — | — | (806 | ) | — | (4 | ) | (810 | ) | ||||||||||||||||||||
Dividends declared-Series A Preferred Stock | — | — | (142 | ) | (578 | ) | — | — | — | (720 | ) | ||||||||||||||||||||
Dividends declared-noncontrolling interest | — | — | — | — | — | — | (7 | ) | (7 | ) | |||||||||||||||||||||
Exercise of stock options, issuance of other stock awards, and other | — | — | 12 | (2 | ) | — | — | — | 10 | ||||||||||||||||||||||
Balance at December 28, 2014 | 4 | 367 | 7,320 | — | (574 | ) | — | 219 | 7,336 | ||||||||||||||||||||||
Net income/(loss) excluding redeemable noncontrolling interest | — | — | — | 634 | — | — | 13 | 647 | |||||||||||||||||||||||
Other comprehensive income/(loss) excluding redeemable noncontrolling interest | — | — | — | — | (97 | ) | — | (18 | ) | (115 | ) | ||||||||||||||||||||
Dividends declared-Series A Preferred Stock | — | — | (360 | ) | (540 | ) | — | — | — | (900 | ) | ||||||||||||||||||||
Dividends declared-common stock | — | — | (1,972 | ) | (92 | ) | — | — | — | (2,064 | ) | ||||||||||||||||||||
Dividends declared-noncontrolling interest | — | — | — | — | — | — | (6 | ) | (6 | ) | |||||||||||||||||||||
Exercise of warrants | — | (367 | ) | 367 | — | — | — | — | — | ||||||||||||||||||||||
Issuance of common stock to Sponsors | 2 | — | 9,998 | — | — | — | — | 10,000 | |||||||||||||||||||||||
Acquisition of Kraft Foods Group, Inc. | 6 | — | 42,849 | — | — | — | — | 42,855 | |||||||||||||||||||||||
Exercise of stock options, issuance of other stock awards, and other | — | — | 173 | (2 | ) | — | (31 | ) | — | 140 | |||||||||||||||||||||
Balance at January 3, 2016 | 12 | — | 58,375 | — | (671 | ) | (31 | ) | 208 | 57,893 | |||||||||||||||||||||
Net income/(loss) excluding redeemable noncontrolling interest | — | — | — | 3,632 | — | — | 10 | 3,642 | |||||||||||||||||||||||
Other comprehensive income/(loss) excluding redeemable noncontrolling interest | — | — | — | — | (957 | ) | — | 6 | (951 | ) | |||||||||||||||||||||
Dividends declared-Series A Preferred Stock | — | — | — | (180 | ) | — | — | — | (180 | ) | |||||||||||||||||||||
Dividends declared-common stock | — | — | — | (2,862 | ) | — | — | — | (2,862 | ) | |||||||||||||||||||||
Dividends declared-noncontrolling interest | — | — | — | — | — | — | (8 | ) | (8 | ) | |||||||||||||||||||||
Exercise of stock options, issuance of other stock awards, and other | — | — | 218 | (2 | ) | — | (176 | ) | — | 40 | |||||||||||||||||||||
Balance at December 31, 2016 | $ | 12 | — | $ | 58,593 | $ | 588 | $ | (1,628 | ) | $ | (207 | ) | $ | 216 | $ | 57,574 |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||||||||
Net income/(loss) | $ | 3,642 | $ | 647 | $ | 672 | $ | 1,933 | $ | (10,254 | ) | $ | 10,932 | |||||||||
Adjustments to reconcile net income/(loss) to operating cash flows: | ||||||||||||||||||||||
Depreciation and amortization | 1,337 | 740 | 530 | 994 | 983 | 1,031 | ||||||||||||||||
Amortization of postretirement benefit plans prior service credits | (333 | ) | (112 | ) | (6 | ) | ||||||||||||||||
Amortization of inventory step-up | — | 347 | — | |||||||||||||||||||
Amortization of postretirement benefit plans prior service costs/(credits) | (306 | ) | (339 | ) | (328 | ) | ||||||||||||||||
Equity award compensation expense | 46 | 133 | 8 | 46 | 33 | 46 | ||||||||||||||||
Deferred income tax provision | (29 | ) | (317 | ) | (174 | ) | ||||||||||||||||
Pension contributions | (344 | ) | (286 | ) | (102 | ) | ||||||||||||||||
Impairment losses on indefinite-lived intangible assets | — | 58 | 221 | |||||||||||||||||||
Deferred income tax provision/(benefit) | (293 | ) | (1,967 | ) | (6,495 | ) | ||||||||||||||||
Postemployment benefit plan contributions | (32 | ) | (76 | ) | (1,659 | ) | ||||||||||||||||
Goodwill and intangible asset impairment losses | 1,899 | 15,936 | 49 | |||||||||||||||||||
Nonmonetary currency devaluation | 24 | 234 | — | 10 | 146 | 36 | ||||||||||||||||
Write-off of debt issuance costs | — | 236 | — | |||||||||||||||||||
Loss/(gain) on sale of business | (420 | ) | 15 | — | ||||||||||||||||||
Other items, net | (134 | ) | 120 | 194 | (46 | ) | 160 | 253 | ||||||||||||||
Changes in current assets and liabilities: | ||||||||||||||||||||||
Trade receivables | 80 | 838 | 144 | 140 | (2,280 | ) | (2,629 | ) | ||||||||||||||
Sold receivables | 454 | (422 | ) | (129 | ) | |||||||||||||||||
Inventories | (130 | ) | 25 | 153 | (277 | ) | (251 | ) | (236 | ) | ||||||||||||
Accounts payable | 943 | (119 | ) | 562 | (58 | ) | (23 | ) | 441 | |||||||||||||
Other current assets | (42 | ) | 114 | (20 | ) | 52 | (146 | ) | (64 | ) | ||||||||||||
Other current liabilities | (276 | ) | 231 | 87 | (90 | ) | 637 | (876 | ) | |||||||||||||
Net cash provided by/(used for) operating activities | 5,238 | 2,467 | 2,140 | 3,552 | 2,574 | 501 | ||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||||
Cash receipts on sold receivables | — | 1,296 | 2,286 | |||||||||||||||||||
Capital expenditures | (1,247 | ) | (648 | ) | (399 | ) | (768 | ) | (826 | ) | (1,194 | ) | ||||||||||
Payments to acquire Kraft Foods Group, Inc., net of cash acquired | — | (9,468 | ) | — | ||||||||||||||||||
Payments to acquire business, net of cash acquired | (199 | ) | (248 | ) | — | |||||||||||||||||
Proceeds from net investment hedges | 91 | 488 | — | 590 | 24 | 6 | ||||||||||||||||
Proceeds from sale of business, net of cash disposed | 1,875 | 18 | — | |||||||||||||||||||
Other investing activities, net | 43 | (76 | ) | 50 | 13 | 24 | 79 | |||||||||||||||
Net cash provided by/(used for) investing activities | (1,113 | ) | (9,704 | ) | (349 | ) | 1,511 | 288 | 1,177 | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||||
Repayments of long-term debt | (86 | ) | (12,314 | ) | (1,103 | ) | (4,795 | ) | (2,713 | ) | (2,641 | ) | ||||||||||
Proceeds from issuance of long-term debt | 6,981 | 14,834 | — | 2,967 | 2,990 | 1,496 | ||||||||||||||||
Debt issuance costs | (53 | ) | (98 | ) | — | |||||||||||||||||
Debt prepayment and extinguishment costs | (99 | ) | — | — | ||||||||||||||||||
Proceeds from issuance of commercial paper | 6,680 | — | — | 557 | 2,784 | 6,043 | ||||||||||||||||
Repayments of commercial paper | (6,043 | ) | — | — | (557 | ) | (3,213 | ) | (6,249 | ) | ||||||||||||
Proceeds from issuance of common stock to Sponsors | — | 10,000 | — | |||||||||||||||||||
Dividends paid-Series A Preferred Stock | (180 | ) | (900 | ) | (720 | ) | ||||||||||||||||
Dividends paid-common stock | (3,584 | ) | (1,302 | ) | — | |||||||||||||||||
Redemption of Series A Preferred Stock | (8,320 | ) | — | — | ||||||||||||||||||
Dividends paid | (1,953 | ) | (3,183 | ) | (2,888 | ) | ||||||||||||||||
Other financing activities, net | (16 | ) | (37 | ) | 3 | (33 | ) | (28 | ) | 18 | ||||||||||||
Net cash provided by/(used for) financing activities | (4,621 | ) | 10,183 | (1,820 | ) | (3,913 | ) | (3,363 | ) | (4,221 | ) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | (137 | ) | (407 | ) | (132 | ) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (6 | ) | (132 | ) | 57 | |||||||||||||||||
Cash, cash equivalents, and restricted cash | ||||||||||||||||||||||
Net increase/(decrease) | (633 | ) | 2,539 | (161 | ) | 1,144 | (633 | ) | (2,486 | ) | ||||||||||||
Balance at beginning of period | 4,837 | 2,298 | 2,459 | 1,136 | 1,769 | 4,255 | ||||||||||||||||
Balance at end of period | $ | 4,204 | $ | 4,837 | $ | 2,298 | $ | 2,280 | $ | 1,136 | $ | 1,769 | ||||||||||
NON-CASH INVESTING ACTIVITIES: | ||||||||||||||||||||||
Beneficial interest obtained in exchange for securitized trade receivables | $ | — | $ | 938 | $ | 2,519 | ||||||||||||||||
CASH PAID DURING THE PERIOD FOR: | ||||||||||||||||||||||
Interest | $ | 1,306 | $ | 1,322 | $ | 1,269 | ||||||||||||||||
Income taxes | 974 | 543 | 1,206 |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | |||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | 1,176 | $ | 704 | $ | 620 | |||||
Income taxes | 1,619 | 577 | 86 |
• | Net investment hedges. We have numerous investments in our foreign subsidiaries, the net assets of which are exposed to volatility in foreign currency exchange rates. We manage this risk by utilizing derivative and non-derivative instruments, including cross-currency swap contracts, foreign exchange contracts, and certain foreign denominated debt designated as net investment hedges. We exclude the interest accruals on cross-currency swap contracts and the forward points on foreign exchange forward contracts from the assessment and measurement of hedge effectiveness. We recognize the interest accruals on cross-currency swap contracts in net income/(loss) within interest expense. We amortize the forward points on foreign exchange contracts into net income/(loss) within interest expense over the life of the hedging relationship. |
• | Foreign currency cash flow hedges. We use various financial instruments to mitigate our exposure to changes in exchange rates from third-party and intercompany actual and forecasted transactions. Our principal foreign currency exposures that are hedged include the British pound sterling, euro, and Canadian dollar. These instruments include cross-currency swap contracts and foreign exchange forward and option contracts. Substantially all of these derivative instruments are highly effective and qualify for hedge accounting treatment. We exclude the interest accruals on cross-currency swap contracts and the forward points and option premiums or discounts on foreign exchange contracts from the assessment and measurement of hedge effectiveness and amortize such amounts into net income/(loss) in the same line item as the underlying hedged item over the life of the hedging relationship. |
• | Interest rate cash flow hedges. From time to time, we have used derivative instruments, including interest rate swaps, as part of our interest rate risk management strategy. We have primarily used interest rate swaps to hedge the variability of interest payment cash flows on a portion of our future debt obligations. |
• | Commodity derivatives. We are exposed to price risk related to forecasted purchases of certain commodities that we primarily use as raw materials. We enter into commodity purchase contracts primarily for dairy products, meat products, coffee beans, sugar, vegetable oils, wheat products, corn products, and cocoa products. These commodity purchase contracts generally are not subject to the accounting requirements for derivative instruments and hedging activities under the normal purchases and normal sales exception. We also use commodity futures, options, and swaps to economically hedge the price of certain commodity costs, including the commodities noted above, as well as packaging products, diesel fuel, and natural gas. We do not designate these commodity contracts as hedging instruments. We also occasionally use futures to economically cross hedge a commodity exposure. |
Aggregate fair value of Kraft common stock | $ | 42,502 | |
$16.50 per share special cash dividend | 9,782 | ||
Fair value of replacement equity awards | 353 | ||
Total consideration exchanged | $ | 52,637 |
Cash | $ | 2 | |
Other current assets | 15 | ||
Identifiable intangible assets | 66 | ||
Current liabilities | (6 | ) | |
Net assets acquired | 77 | ||
Goodwill on acquisition | 124 | ||
Total consideration | $ | 201 |
Cash | $ | 314 | |
Other current assets | 3,423 | ||
Property, plant and equipment | 4,179 | ||
Identifiable intangible assets | 47,771 | ||
Other non-current assets | 214 | ||
Trade and other payables | (3,026 | ) | |
Long-term debt | (9,286 | ) | |
Net postemployment benefits and other non-current liabilities | (4,739 | ) | |
Deferred income tax liabilities | (16,675 | ) | |
Net assets acquired | 22,175 | ||
Goodwill on acquisition | 30,462 | ||
Total consideration | 52,637 | ||
Fair value of shares exchanged and equity awards | 42,855 | ||
Total cash consideration paid to Kraft shareholders | 9,782 | ||
Cash and cash equivalents of Kraft at the 2015 Merger Date | 314 | ||
Acquisition of business, net of cash on hand | $ | 9,468 |
Fair Value (in millions of dollars) | Weighted Average Life (in years) | ||||
Definite-lived trademarks | $ | 52.5 | 15 | ||
Customer-related assets | 13.5 | 20 | |||
Total | $ | 66.0 |
Fair Value | Weighted Average Life | ||||
(in millions of dollars) | (in years) | ||||
Indefinite-lived trademarks | $ | 43,104 | |||
Definite-lived trademarks | 1,690 | 24 | |||
Customer-related assets | 2,977 | 29 | |||
Total | $ | 47,771 |
Cash | $ | 23 | |
Other current assets | 65 | ||
Property, plant and equipment, net | 75 | ||
Identifiable intangible assets | 100 | ||
Trade and other payables | (41 | ) | |
Other non-current liabilities | (3 | ) | |
Net assets acquired | 219 | ||
Goodwill on acquisition | 25 | ||
Total consideration | $ | 244 |
Fair Value (in millions of dollars) | Weighted Average Life (in years) | ||||
Definite-lived trademarks | $ | 87 | 22 | ||
Customer-related assets | 13 | 12 | |||
Total | $ | 100 |
Proceeds | $ | 655 | |
Less investment in Heinz India | (355 | ) | |
Recognition of tax indemnification | (48 | ) | |
Other | (3 | ) | |
Pre-tax gain on sale of Heinz India | $ | 249 |
For the Year Ended | |||||||
January 3, 2016 | December 28, 2014 | ||||||
(in millions, except per share data) | |||||||
Net sales | $ | 27,447 | $ | 29,122 | |||
Net income | 1,761 | 2,003 | |||||
Basic earnings per share | 0.72 | 1.08 | |||||
Diluted earnings per share | 0.70 | 1.05 |
Proceeds | $ | 1,236 | |
Less carrying value of Canada Natural Cheese net assets | (995 | ) | |
Other | 1 | ||
Pre-tax gain resulting from Canada Natural Cheese Transaction | $ | 242 |
December 28, 2019 | December 29, 2018 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 27 | $ | — | |||
Inventories | 21 | 92 | |||||
Property, plant and equipment, net | 25 | 139 | |||||
Goodwill | — | 669 | |||||
Intangible assets, net | 23 | 437 | |||||
Other | 26 | 39 | |||||
Total assets held for sale | $ | 122 | $ | 1,376 | |||
LIABILITIES | |||||||
Trade payables | $ | 3 | $ | 16 | |||
Other | 6 | 39 | |||||
Total liabilities held for sale | $ | 9 | $ | 55 |
Severance and Employee Benefit Costs | Other Exit Costs(a) | Total | |||||||||
Balance at January 3, 2016 | $ | 185 | $ | 23 | $ | 208 | |||||
Charges | 119 | 40 | 159 | ||||||||
Cash payments | (182 | ) | (53 | ) | (235 | ) | |||||
Non-cash utilization | (23 | ) | — | (23 | ) | ||||||
Balance at December 31, 2016 | $ | 99 | $ | 10 | $ | 109 |
Severance and Employee Benefit Costs | Other Exit Costs | Total | |||||||||
Balance at December 29, 2018 | $ | 32 | $ | 33 | $ | 65 | |||||
Charges/(credits) | 15 | 1 | 16 | ||||||||
Cash payments | (21 | ) | (10 | ) | (31 | ) | |||||
Non-cash utilization | (4 | ) | — | (4 | ) | ||||||
Balance at December 28, 2019 | $ | 22 | $ | 24 | $ | 46 |
Severance and Employee Benefit Costs | Other Exit Costs(a) | Total | |||||||||
Balance at January 3, 2016 | $ | 25 | $ | 30 | $ | 55 | |||||
Charges | 38 | 2 | 40 | ||||||||
Cash payments | (44 | ) | (7 | ) | (51 | ) | |||||
Non-cash utilization | (7 | ) | — | (7 | ) | ||||||
Balance at December 31, 2016 | $ | 12 | $ | 25 | $ | 37 |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||||||||||
Severance and employee benefit costs - COGS | $ | 53 | $ | 119 | $ | 135 | $ | (3 | ) | $ | 12 | $ | 9 | |||||||||
Severance and employee benefit costs - SG&A | 104 | 519 | 67 | 14 | 32 | 26 | ||||||||||||||||
Severance and employee benefit costs - Other expense/(income) | 4 | 6 | (149 | ) | ||||||||||||||||||
Asset-related costs - COGS | 496 | 186 | 199 | 29 | 59 | 191 | ||||||||||||||||
Asset-related costs - SG&A | 41 | 7 | 9 | 8 | 36 | 26 | ||||||||||||||||
Other exit costs - COGS | 162 | 99 | 179 | |||||||||||||||||||
Other exit costs - SG&A | 156 | 93 | 48 | |||||||||||||||||||
Other costs - COGS | 22 | 123 | 264 | |||||||||||||||||||
Other costs - SG&A | 32 | 35 | 67 | |||||||||||||||||||
Other costs - Other expense/(income) | 2 | 157 | — | |||||||||||||||||||
$ | 1,012 | $ | 1,023 | $ | 637 | $ | 108 | $ | 460 | $ | 434 |
December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||
United States | $ | 37 | $ | 205 | $ | 270 | |||||
Canada | 18 | 176 | 34 | ||||||||
EMEA | 16 | 16 | 56 | ||||||||
Rest of World | 13 | 25 | 13 | ||||||||
General corporate expenses | 24 | 38 | 61 | ||||||||
$ | 108 | $ | 460 | $ | 434 |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | |||||||||
United States | $ | 759 | $ | 790 | $ | 227 | |||||
Canada | 45 | 47 | 101 | ||||||||
Europe | 85 | 142 | 228 | ||||||||
Rest of World | 6 | 12 | 58 | ||||||||
General corporate expenses | 117 | 32 | 23 | ||||||||
$ | 1,012 | $ | 1,023 | $ | 637 |
December 28, 2019 | December 29, 2018 | ||||||
Cash and cash equivalents | $ | 2,279 | $ | 1,130 | |||
Restricted cash included in other current assets | 1 | 1 | |||||
Restricted cash included in other non-current assets | — | 5 | |||||
Cash, cash equivalents, and restricted cash | $ | 2,280 | $ | 1,136 |
December 31, 2016 | January 3, 2016 | ||||||
Packaging and ingredients | $ | 542 | $ | 563 | |||
Work in process | 388 | 393 | |||||
Finished product | 1,754 | 1,662 | |||||
Inventories | $ | 2,684 | $ | 2,618 |
December 28, 2019 | December 29, 2018 | ||||||
Packaging and ingredients | $ | 511 | $ | 510 | |||
Work in process | 364 | 343 | |||||
Finished product | 1,846 | 1,814 | |||||
Inventories | $ | 2,721 | $ | 2,667 |
December 28, 2019 | December 29, 2018 | ||||||
Land | $ | 210 | $ | 218 | |||
Buildings and improvements | 2,447 | 2,375 | |||||
Equipment and other | 6,552 | 5,904 | |||||
Construction in progress | 1,033 | 1,165 | |||||
10,242 | 9,662 | ||||||
Accumulated depreciation | (3,187 | ) | (2,584 | ) | |||
Property, plant and equipment, net | $ | 7,055 | $ | 7,078 |
December 31, 2016 | January 3, 2016 | ||||||
Land | $ | 264 | $ | 297 | |||
Buildings and improvements | 1,884 | 1,700 | |||||
Equipment and other | 4,770 | 4,432 | |||||
Construction in progress | 1,600 | 1,001 | |||||
8,518 | 7,430 | ||||||
Accumulated depreciation | (1,830 | ) | (906 | ) | |||
Property, plant and equipment, net | $ | 6,688 | $ | 6,524 |
United States | Canada | EMEA | Rest of World | Total | |||||||||||||||
Balance at December 29, 2018 | $ | 29,597 | $ | 2,438 | $ | 3,074 | $ | 1,394 | $ | 36,503 | |||||||||
Impairment losses | (118 | ) | — | (292 | ) | (787 | ) | (1,197 | ) | ||||||||||
Acquisitions | 124 | — | 6 | — | 130 | ||||||||||||||
Translation adjustments and other | (2 | ) | 106 | 17 | (11 | ) | 110 | ||||||||||||
Balance at December 28, 2019 | $ | 29,601 | $ | 2,544 | $ | 2,805 | $ | 596 | $ | 35,546 |
United States | Canada | Europe | Rest of World | Total | |||||||||||||||
Balance at January 3, 2016 | $ | 32,290 | $ | 4,796 | $ | 3,227 | $ | 2,738 | $ | 43,051 | |||||||||
2015 Merger measurement period adjustments | 1,433 | — | — | — | 1,433 | ||||||||||||||
Translation adjustments and other | (27 | ) | 117 | (449 | ) | — | (359 | ) | |||||||||||
Balance at December 31, 2016 | $ | 33,696 | $ | 4,913 | $ | 2,778 | $ | 2,738 | $ | 44,125 |
Balance at December 29, 2018 | $ | 43,966 | |
Impairment losses | (687 | ) | |
Reclassified to assets held for sale | (9 | ) | |
Translation adjustments | 130 | ||
Balance at December 28, 2019 | $ | 43,400 |
Balance at January 3, 2016 | $ | 55,824 | |
2015 Merger measurement period adjustments | (1,978 | ) | |
Translation adjustments | (539 | ) | |
Balance at December 31, 2016 | $ | 53,307 |
December 31, 2016 | January 3, 2016 | December 28, 2019 | December 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||||||||||||||||||
Trademarks | $ | 2,337 | $ | (172 | ) | $ | 2,165 | $ | 2,346 | $ | (70 | ) | $ | 2,276 | $ | 2,443 | $ | (469 | ) | $ | 1,974 | $ | 2,474 | $ | (402 | ) | $ | 2,072 | ||||||||||||||||||
Customer-related assets | 4,184 | (369 | ) | 3,815 | 4,218 | (209 | ) | 4,009 | 4,113 | (845 | ) | 3,268 | 4,097 | (681 | ) | 3,416 | ||||||||||||||||||||||||||||||
Other | 13 | (3 | ) | 10 | 15 | (4 | ) | 11 | 14 | (4 | ) | 10 | 18 | (4 | ) | 14 | ||||||||||||||||||||||||||||||
$ | 6,534 | $ | (544 | ) | $ | 5,990 | $ | 6,579 | $ | (283 | ) | $ | 6,296 | $ | 6,570 | $ | (1,318 | ) | $ | 5,252 | $ | 6,589 | $ | (1,087 | ) | $ | 5,502 |
December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||
Income/(loss) before income taxes: | |||||||||||
United States | $ | 796 | $ | (10,305 | ) | $ | 3,811 | ||||
International | 1,865 | (1,016 | ) | 1,639 | |||||||
Total | $ | 2,661 | $ | (11,321 | ) | $ | 5,450 | ||||
Provision for/(benefit from) income taxes: | |||||||||||
Current: | |||||||||||
U.S. federal | $ | 466 | $ | 444 | $ | 765 | |||||
U.S. state and local | 116 | 134 | (47 | ) | |||||||
International | 439 | 322 | 295 | ||||||||
1,021 | 900 | 1,013 | |||||||||
Deferred: | |||||||||||
U.S. federal | (209 | ) | (1,843 | ) | (6,590 | ) | |||||
U.S. state and local | (7 | ) | (121 | ) | 97 | ||||||
International | (77 | ) | (3 | ) | (2 | ) | |||||
(293 | ) | (1,967 | ) | (6,495 | ) | ||||||
Total provision for/(benefit from) income taxes | $ | 728 | $ | (1,067 | ) | $ | (5,482 | ) |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | |||||||||
Income/(loss) before income taxes: | |||||||||||
United States | $ | 3,358 | $ | (13 | ) | $ | (207 | ) | |||
International | 1,665 | 1,026 | 1,010 | ||||||||
Total | $ | 5,023 | $ | 1,013 | $ | 803 | |||||
Provision for/(benefit from) income taxes: | |||||||||||
Current: | |||||||||||
U.S. federal | $ | 1,095 | $ | 427 | $ | 105 | |||||
U.S. state and local | 76 | 22 | 12 | ||||||||
International | 239 | 234 | 188 | ||||||||
1,410 | 683 | 305 | |||||||||
Deferred: | |||||||||||
U.S. federal | 31 | (173 | ) | (159 | ) | ||||||
U.S. state and local | (60 | ) | (70 | ) | (14 | ) | |||||
International | — | (74 | ) | (1 | ) | ||||||
(29 | ) | (317 | ) | (174 | ) | ||||||
Total provision for/(benefit from) income taxes | $ | 1,381 | $ | 366 | $ | 131 |
December 28, 2019 | December 29, 2018 | December 30, 2017 | ||||||
U.S. federal statutory tax rate | 21.0 | % | 21.0 | % | 35.0 | % | ||
Tax on income of foreign subsidiaries | (7.5 | )% | 3.4 | % | (4.8 | )% | ||
Domestic manufacturing deduction | — | % | — | % | (1.5 | )% | ||
U.S. state and local income taxes, net of federal tax benefit | 1.1 | % | 1.6 | % | 1.1 | % | ||
Audit settlements and changes in uncertain tax positions | 1.3 | % | (0.3 | )% | (0.2 | )% | ||
U.S. Tax Reform discrete income tax benefit | — | % | 0.5 | % | (129.0 | )% | ||
Global intangible low-taxed income | 1.8 | % | (0.5 | )% | — | % | ||
Goodwill impairment | 9.3 | % | (15.1 | )% | — | % | ||
Wind-up of non-U.S. pension plans | — | % | (0.4 | )% | — | % | ||
Losses/(gains) related to acquisitions and divestitures | 1.0 | % | 0.1 | % | — | % | ||
Movement of valuation allowance reserves | 1.3 | % | — | % | — | % | ||
Other | (1.9 | )% | (0.9 | )% | (1.2 | )% | ||
Effective tax rate | 27.4 | % | 9.4 | % | (100.6 | )% |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | ||||||
U.S. federal statutory tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
Increase/(decrease) resulting from: | ||||||||
Tax on income of foreign subsidiaries | (3.6 | )% | (11.8 | )% | (8.3 | )% | ||
Changes in valuation allowances | — | % | 1.4 | % | (1.3 | )% | ||
Domestic manufacturing deduction | (1.9 | )% | (2.9 | )% | (2.8 | )% | ||
U.S. state and local income taxes, net of federal tax benefit | 0.8 | % | (0.6 | )% | (0.9 | )% | ||
Earnings repatriation | 0.4 | % | 21.9 | % | 8.0 | % | ||
Tax exempt income | (3.3 | )% | (10.9 | )% | (12.3 | )% | ||
Deferred tax effect of statutory tax rate changes | (2.0 | )% | (10.4 | )% | (0.8 | )% | ||
Audit settlements and changes in uncertain tax positions | 1.8 | % | 6.2 | % | 2.2 | % | ||
Venezuela nondeductible devaluation loss | 0.2 | % | 9.9 | % | — | % | ||
Venezuela inflation adjustment | — | % | (1.7 | )% | (3.1 | )% | ||
Other | 0.1 | % | 0.1 | % | 0.6 | % | ||
Effective tax rate | 27.5 | % | 36.2 | % | 16.3 | % |
December 28, 2019 | December 29, 2018 | ||||||
Deferred income tax liabilities: | |||||||
Intangible assets, net | $ | 11,230 | $ | 11,571 | |||
Property, plant and equipment, net | 773 | 735 | |||||
Other | 252 | 410 | |||||
Deferred income tax liabilities | 12,255 | 12,716 | |||||
Deferred income tax assets: | |||||||
Benefit plans | (112 | ) | (172 | ) | |||
Other | (474 | ) | (470 | ) | |||
Deferred income tax assets | (586 | ) | (642 | ) | |||
Valuation allowance | 112 | 81 | |||||
Net deferred income tax liabilities | $ | 11,781 | $ | 12,155 |
December 31, 2016 | January 3, 2016 | ||||||
Deferred income tax liabilities: | |||||||
Intangible assets, net | $ | 20,946 | $ | 21,950 | |||
Property, plant and equipment | 1,035 | 1,233 | |||||
Other | 532 | 495 | |||||
Deferred income tax liabilities | 22,513 | 23,678 | |||||
Deferred income tax assets: | |||||||
Benefit plans | (1,025 | ) | (1,323 | ) | |||
Other | (782 | ) | (1,011 | ) | |||
Deferred income tax assets | (1,807 | ) | (2,334 | ) | |||
Valuation allowance | 89 | 83 | |||||
Net deferred income tax liabilities | $ | 20,795 | $ | 21,427 |
December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||
Balance at the beginning of the period | $ | 387 | $ | 408 | $ | 389 | |||||
Increases for tax positions of prior years | 28 | 9 | 2 | ||||||||
Decreases for tax positions of prior years | (39 | ) | (81 | ) | (35 | ) | |||||
Increases based on tax positions related to the current year | 60 | 74 | 135 | ||||||||
Decreases due to settlements with taxing authorities | (20 | ) | (3 | ) | (59 | ) | |||||
Decreases due to lapse of statute of limitations | (10 | ) | (10 | ) | (24 | ) | |||||
Reclassified to liabilities held for sale | — | (10 | ) | — | |||||||
Balance at the end of the period | $ | 406 | $ | 387 | $ | 408 |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | |||||||||
Balance at the beginning of the period | $ | 353 | $ | 71 | $ | 53 | |||||
Increases for tax positions of prior years | 59 | 25 | 5 | ||||||||
Decreases for tax positions of prior years | (18 | ) | (9 | ) | (5 | ) | |||||
Increases based on tax positions related to the current year | 62 | 33 | 21 | ||||||||
Increases due to acquisitions of businesses | — | 242 | — | ||||||||
Decreases due to settlements with taxing authorities | (62 | ) | — | (1 | ) | ||||||
Decreases due to lapse of statute of limitations | (5 | ) | (9 | ) | (2 | ) | |||||
Balance at the end of the period | $ | 389 | $ | 353 | $ | 71 |
December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||
Risk-free interest rate | 1.46 | % | 2.75 | % | 2.25 | % | |||||
Expected term | 6.5 years | 7.5 years | 7.5 years | ||||||||
Expected volatility | 31.2 | % | 21.3 | % | 19.6 | % | |||||
Expected dividend yield | 5.3 | % | 3.6 | % | 2.8 | % | |||||
Weighted average grant date fair value per share | $ | 4.11 | $ | 10.26 | $ | 14.24 |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | |||||||||
Risk-free interest rate | 1.63 | % | 1.70 | % | 1.49 | % | |||||
Expected term | 7.5 years | 6.3 years | 5 years | ||||||||
Expected volatility | 22.0 | % | 22.9 | % | 24.3 | % | |||||
Expected dividend yield | 3.1 | % | 1.5 | % | — | % | |||||
Weighted average grant date fair value per share | $ | 12.48 | $ | 9.60 | $ | 5.53 |
January 3, 2016 (53 weeks) | |||
Risk-free interest rate | 1.72 | % | |
Expected volatility | 20.10 | % | |
Expected dividend yield | 3.00 | % | |
Weighted average fair value on conversion date | $ | 35.65 |
Number of Stock Options | Weighted Average Exercise Price (per share) | Aggregate Intrinsic Value (in millions) | Average Remaining Contractual Term | |||||||||
Outstanding at December 29, 2018 | 18,259,965 | $ | 44.64 | |||||||||
Granted | 1,880,648 | 25.41 | ||||||||||
Forfeited | (1,771,653 | ) | 66.89 | |||||||||
Exercised | (730,460 | ) | 23.81 | |||||||||
Outstanding at December 28, 2019 | 17,638,500 | 41.22 | $ | 42 | 4 years | |||||||
Exercisable at December 28, 2019 | 11,539,568 | 33.89 | 51 | 3 years |
Number of Stock Options | Weighted Average Exercise Price | Aggregate Intrinsic Value (in millions) | Average Remaining Contractual Term | |||||||||
Outstanding at January 3, 2016 | 24,205,612 | $ | 34.86 | |||||||||
Granted | 1,466,626 | 79.78 | ||||||||||
Forfeited | (1,094,676 | ) | 46.93 | |||||||||
Exercised | (4,017,422 | ) | 35.02 | |||||||||
Outstanding at December 31, 2016 | 20,560,140 | 37.39 | $ | 1,027 | 6 years | |||||||
Exercisable at December 31, 2016 | 8,660,191 | 37.25 | 434 | 5 years |
Number of Stock Options | Weighted Average Grant Date Fair Value (per share) | |||||
Unvested options at December 29, 2018 | 7,767,917 | $ | 10.16 | |||
Granted | 1,880,648 | 4.11 | ||||
Vested | (2,140,396 | ) | 7.12 | |||
Forfeited | (1,409,237 | ) | 11.51 | |||
Unvested options at December 28, 2019 | 6,098,932 | 9.04 |
Number of Options | Weighted Average Grant Date Fair Value (per share) | |||||
Unvested options at January 3, 2016 | 13,492,010 | $ | 10.02 | |||
Granted | 1,466,626 | 12.48 | ||||
Vested | (2,010,210 | ) | 21.24 | |||
Forfeited | (1,048,477 | ) | 11.71 | |||
Unvested options at December 31, 2016 | 11,899,949 | 8.26 |
Number of Units | Weighted Average Grant Date Fair Value (per share) | |||||
Outstanding at December 29, 2018 | 2,338,958 | $ | 68.49 | |||
Granted | 8,091,999 | 25.77 | ||||
Forfeited | (959,485 | ) | 50.16 | |||
Vested | (75,563 | ) | 76.38 | |||
Outstanding at December 28, 2019 | 9,395,909 | 33.51 |
Number of Units | Weighted Average Grant Date Fair Value (per share) | |||||
RSUs at January 3, 2016 | 968,444 | $ | 70.14 | |||
Granted | 510,157 | 77.53 | ||||
Forfeited | (149,831 | ) | 75.29 | |||
Vested | (522,026 | ) | 72.96 | |||
RSUs at December 31, 2016 | 806,744 | 71.95 |
Number of Units | Weighted Average Grant Date Fair Value (per share) | |||||
Outstanding at December 29, 2018 | 3,252,056 | $ | 59.24 | |||
Granted | 4,832,626 | 25.31 | ||||
Forfeited | (1,271,023 | ) | 54.67 | |||
Outstanding at December 28, 2019 | 6,813,659 | 36.03 |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||||||||||
Pre-tax compensation cost | $ | 46 | $ | 133 | $ | 8 | $ | 46 | $ | 33 | $ | 46 | ||||||||||
Tax benefit | (15 | ) | (48 | ) | (3 | ) | ||||||||||||||||
Related tax benefit | (9 | ) | (7 | ) | (14 | ) | ||||||||||||||||
After-tax compensation cost | $ | 31 | $ | 85 | $ | 5 | $ | 37 | $ | 26 | $ | 32 |
U.S. Plans | Non-U.S. Plans | ||||||||||||||
December 28, 2019 | December 29, 2018 | December 28, 2019 | December 29, 2018 | ||||||||||||
Benefit obligation at beginning of year | $ | 4,060 | $ | 4,719 | $ | 1,930 | $ | 3,464 | |||||||
Service cost | 7 | 10 | 17 | 19 | |||||||||||
Interest cost | 163 | 158 | 51 | 67 | |||||||||||
Benefits paid | (331 | ) | (191 | ) | (122 | ) | (126 | ) | |||||||
Actuarial losses/(gains) | 602 | (447 | ) | 252 | (118 | ) | |||||||||
Plan amendments | — | 1 | — | 14 | |||||||||||
Currency | — | — | 59 | (175 | ) | ||||||||||
Settlements | — | (190 | ) | — | (1,221 | ) | |||||||||
Curtailments | — | — | — | (1 | ) | ||||||||||
Special/contractual termination benefits | — | — | 4 | 7 | |||||||||||
Other | — | — | (4 | ) | — | ||||||||||
Benefit obligation at end of year | 4,501 | 4,060 | 2,187 | 1,930 | |||||||||||
Fair value of plan assets at beginning of year | 4,219 | 4,785 | 2,689 | 4,156 | |||||||||||
Actual return on plan assets | 947 | (185 | ) | 177 | 49 | ||||||||||
Employer contributions | — | — | 19 | 57 | |||||||||||
Benefits paid | (331 | ) | (191 | ) | (122 | ) | (126 | ) | |||||||
Currency | — | — | 78 | (221 | ) | ||||||||||
Settlements | — | (190 | ) | — | (1,221 | ) | |||||||||
Other | — | — | — | (5 | ) | ||||||||||
Fair value of plan assets at end of year | 4,835 | 4,219 | 2,841 | 2,689 | |||||||||||
Net pension liability/(asset) recognized at end of year | $ | (334 | ) | $ | (159 | ) | $ | (654 | ) | $ | (759 | ) |
U.S. Plans | Non-U.S. Plans | ||||||||||||||
December 31, 2016 | January 3, 2016 | December 31, 2016 | January 3, 2016 | ||||||||||||
Benefit obligation at beginning of year | $ | 5,990 | $ | 540 | $ | 2,892 | $ | 2,611 | |||||||
Service cost | 13 | 45 | 25 | 26 | |||||||||||
Interest cost | 203 | 164 | 87 | 103 | |||||||||||
Participants' contributions | — | — | 3 | 2 | |||||||||||
Benefits paid | (268 | ) | (167 | ) | (158 | ) | (138 | ) | |||||||
Actuarial losses/(gains) | 195 | (121 | ) | 540 | 23 | ||||||||||
Plan amendments | — | 7 | — | — | |||||||||||
Currency | — | — | (281 | ) | (300 | ) | |||||||||
Settlements | (966 | ) | (977 | ) | (12 | ) | (655 | ) | |||||||
Curtailments | — | (148 | ) | — | (50 | ) | |||||||||
Special/contractual termination benefits | — | 4 | 3 | 6 | |||||||||||
Assumption of Kraft's benefit obligations | — | 6,645 | — | 1,264 | |||||||||||
Other | (10 | ) | (2 | ) | — | — | |||||||||
Benefit obligation at end of year | 5,157 | 5,990 | 3,099 | 2,892 | |||||||||||
Fair value of plan assets at beginning of year | 5,282 | 547 | 3,428 | 3,088 | |||||||||||
Actual return on plan assets | 435 | (34 | ) | 712 | 126 | ||||||||||
Participants' contributions | — | — | 3 | 2 | |||||||||||
Employer contributions | 311 | 227 | 33 | 59 | |||||||||||
Benefits paid | (268 | ) | (167 | ) | (158 | ) | (138 | ) | |||||||
Currency | — | — | (378 | ) | (331 | ) | |||||||||
Settlements | (966 | ) | (977 | ) | (12 | ) | (655 | ) | |||||||
Assumption of Kraft's plan assets | — | 5,686 | — | 1,277 | |||||||||||
Other | (6 | ) | — | — | — | ||||||||||
Fair value of plan assets at end of year | 4,788 | 5,282 | 3,628 | 3,428 | |||||||||||
Net pension liability/(asset) recognized at end of year | $ | 369 | $ | 708 | $ | (529 | ) | $ | (536 | ) |
December 28, 2019 | December 29, 2018 | ||||||
Other non-current assets | $ | 1,081 | $ | 999 | |||
Other current liabilities | (4 | ) | (4 | ) | |||
Accrued postemployment costs | (89 | ) | (77 | ) | |||
Net pension asset/(liability) recognized | $ | 988 | $ | 918 |
December 31, 2016 | January 3, 2016 | ||||||
Other assets (long-term assets) | $ | 641 | $ | 616 | |||
Accrued postemployment costs (current liabilities) | (3 | ) | (172 | ) | |||
Accrued postemployment costs (long-term liabilities) | (478 | ) | (616 | ) | |||
Net pension asset/(liability) recognized | $ | 160 | $ | (172 | ) |
U.S. Plans | Non-U.S. Plans | ||||||||||||||
December 28, 2019 | December 29, 2018 | December 28, 2019 | December 29, 2018 | ||||||||||||
Projected benefit obligation | $ | — | $ | — | $ | 162 | $ | 146 | |||||||
Accumulated benefit obligation | — | — | 156 | 139 | |||||||||||
Fair value of plan assets | — | — | 70 | 65 |
U.S. Plans | Non-U.S. Plans | ||||||||||||||
December 31, 2016 | January 3, 2016 | December 31, 2016 | January 3, 2016 | ||||||||||||
Projected benefit obligation | $ | 3,669 | $ | 5,990 | $ | 527 | $ | 72 | |||||||
Accumulated benefit obligation | 3,669 | 5,986 | 527 | 72 | |||||||||||
Fair value of plan assets | 3,282 | 5,282 | 437 | 15 |
U.S. Plans | Non-U.S. Plans | ||||||||||||||
December 28, 2019 | December 29, 2018 | December 28, 2019 | December 29, 2018 | ||||||||||||
Projected benefit obligation | $ | — | $ | — | $ | 162 | $ | 148 | |||||||
Accumulated benefit obligation | — | — | 156 | 141 | |||||||||||
Fair value of plan assets | — | — | 70 | 67 |
U.S. Plans | Non-U.S. Plans | ||||||||||||||
December 31, 2016 | January 3, 2016 | December 31, 2016 | January 3, 2016 | ||||||||||||
Projected benefit obligation | $ | 3,669 | $ | 5,990 | $ | 539 | $ | 119 | |||||||
Accumulated benefit obligation | 3,669 | 5,986 | 534 | 72 | |||||||||||
Fair value of plan assets | 3,282 | 5,282 | 445 | 43 |
U.S. Plans | Non-U.S. Plans | ||||||||||
December 28, 2019 | December 29, 2018 | December 28, 2019 | December 29, 2018 | ||||||||
Discount rate | 3.4 | % | 4.4 | % | 2.0 | % | 2.9 | % | |||
Rate of compensation increase | 4.1 | % | 4.1 | % | 3.7 | % | 3.9 | % |
U.S. Plans | Non-U.S. Plans | ||||||||||
December 31, 2016 | January 3, 2016 | December 31, 2016 | January 3, 2016 | ||||||||
Discount rate | 4.2 | % | 4.3 | % | 2.9 | % | 3.8 | % | |||
Rate of compensation increase | 4.1 | % | 4.2 | % | 4.0 | % | 3.4 | % |
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
December 28, 2019 | December 29, 2018 | December 30, 2017 | December 28, 2019 | December 29, 2018 | December 30, 2017 | ||||||||||||||||||
Service cost | $ | 7 | $ | 10 | $ | 11 | $ | 17 | $ | 19 | $ | 19 | |||||||||||
Interest cost | 163 | 158 | 178 | 51 | 67 | 66 | |||||||||||||||||
Expected return on plan assets | (229 | ) | (247 | ) | (262 | ) | (143 | ) | (175 | ) | (180 | ) | |||||||||||
Amortization of unrecognized losses/(gains) | — | — | — | 1 | 2 | 1 | |||||||||||||||||
Settlements | — | (4 | ) | 2 | 1 | 158 | — | ||||||||||||||||
Curtailments | — | — | — | — | (1 | ) | — | ||||||||||||||||
Special/contractual termination benefits | — | — | 19 | 4 | 7 | 9 | |||||||||||||||||
Other | — | — | 2 | — | — | (15 | ) | ||||||||||||||||
Net pension cost/(benefit) | $ | (59 | ) | $ | (83 | ) | $ | (50 | ) | $ | (69 | ) | $ | 77 | $ | (100 | ) |
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | ||||||||||||||||||
Service cost | $ | 13 | $ | 45 | $ | 4 | $ | 25 | $ | 26 | $ | 25 | |||||||||||
Interest cost | 203 | 164 | 29 | 87 | 103 | 107 | |||||||||||||||||
Expected return on plan assets | (290 | ) | (179 | ) | (46 | ) | (182 | ) | (194 | ) | (169 | ) | |||||||||||
Amortization of unrecognized losses/(gains) | — | 3 | — | — | — | — | |||||||||||||||||
Settlements | 23 | 102 | 10 | 2 | 17 | — | |||||||||||||||||
Curtailments | — | (96 | ) | — | — | (47 | ) | (6 | ) | ||||||||||||||
Special/contractual termination benefits | — | 4 | — | 3 | 6 | 8 | |||||||||||||||||
Net pension cost/(benefit) | $ | (51 | ) | $ | 43 | $ | (3 | ) | $ | (65 | ) | $ | (89 | ) | $ | (35 | ) |
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
December 28, 2019 | December 29, 2018 | December 30, 2017 | December 28, 2019 | December 29, 2018 | December 30, 2017 | ||||||||||||
Discount rate - Service cost | 4.6 | % | 3.8 | % | 4.2 | % | 3.3 | % | 3.0 | % | 3.2 | % | |||||
Discount rate - Interest cost | 4.1 | % | 3.6 | % | 3.6 | % | 2.6 | % | 2.9 | % | 2.1 | % | |||||
Expected rate of return on plan assets | 5.7 | % | 5.5 | % | 5.7 | % | 5.4 | % | 4.5 | % | 4.8 | % | |||||
Rate of compensation increase | 4.1 | % | 4.1 | % | 4.1 | % | 3.9 | % | 3.9 | % | 4.0 | % |
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | ||||||||||||
Discount rate - Service Cost | 4.5 | % | 4.4 | % | 4.8 | % | 4.2 | % | 3.7 | % | 4.5 | % | |||||
Discount rate - Interest Cost | 3.5 | % | 4.4 | % | 4.8 | % | 3.3 | % | 3.7 | % | 4.5 | % | |||||
Expected rate of return on plan assets | 5.7 | % | 5.6 | % | 6.5 | % | 5.6 | % | 6.4 | % | 6.1 | % | |||||
Rate of compensation increase | 4.1 | % | 4.0 | % | 4.5 | % | 3.4 | % | 3.3 | % | 3.6 | % |
U.S. Plans | Non-U.S. Plans | ||||||||||
December 28, 2019 | December 29, 2018 | December 28, 2019 | December 29, 2018 | ||||||||
Fixed-income securities | 83 | % | 84 | % | 43 | % | 45 | % | |||
Equity securities | 15 | % | 14 | % | 39 | % | 34 | % | |||
Cash and cash equivalents | 2 | % | 2 | % | 14 | % | 16 | % | |||
Real estate | — | % | — | % | 2 | % | 3 | % | |||
Certain insurance contracts | — | % | — | % | 2 | % | 2 | % | |||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
U.S. Plans | Non-U.S. Plans | ||||||||||
December 31, 2016 | January 3, 2016 | December 31, 2016 | January 3, 2016 | ||||||||
Fixed-income securities | 67 | % | 62 | % | 49 | % | 48 | % | |||
Equity securities | 30 | % | 27 | % | 31 | % | 31 | % | |||
Real estate | — | % | 5 | % | 7 | % | 9 | % | |||
Cash and cash equivalents | 3 | % | 5 | % | 8 | % | 7 | % | |||
Certain insurance contracts | — | % | 1 | % | 5 | % | 5 | % | |||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Asset Category | Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||
Corporate bonds and other fixed-income securities | $ | 3,642 | $ | — | $ | 3,639 | $ | 3 | ||||||||||||||||||||||
Government bonds | $ | 484 | $ | 410 | $ | 74 | $ | — | 358 | 358 | — | — | ||||||||||||||||||
Corporate bonds and other fixed-income securities | 2,952 | — | 2,952 | — | ||||||||||||||||||||||||||
Total fixed-income securities | 3,436 | 410 | 3,026 | — | 4,000 | 358 | 3,639 | 3 | ||||||||||||||||||||||
Equity securities | 765 | 765 | — | — | 775 | 775 | — | — | ||||||||||||||||||||||
Cash and cash equivalents | 414 | 413 | 1 | — | ||||||||||||||||||||||||||
Real estate | 234 | — | — | 234 | 45 | — | — | 45 | ||||||||||||||||||||||
Cash and cash equivalents | 49 | 31 | 18 | — | ||||||||||||||||||||||||||
Certain insurance contracts | 189 | — | — | 189 | 49 | — | — | 49 | ||||||||||||||||||||||
Fair value excluding investments measured at net asset value | 4,673 | 1,206 | 3,044 | 423 | 5,283 | 1,546 | 3,640 | 97 | ||||||||||||||||||||||
Investments measured at net asset value | 3,743 | 2,393 | ||||||||||||||||||||||||||||
Total fair value | $ | 8,416 | ||||||||||||||||||||||||||||
Total plan assets at fair value | $ | 7,676 |
(a) | Amount includes cash collateral of $226 million associated with our securities lending program, which is reflected as an asset, and a corresponding securities lending payable of $226 million, which is reflected as a liability. The net impact on total plan assets at fair value is 0. |
Asset Category | Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||
Corporate bonds and other fixed-income securities | $ | 3,089 | $ | — | $ | 3,089 | $ | — | ||||||||||||||||||||||
Government bonds | $ | 671 | $ | 671 | $ | — | $ | — | 366 | 366 | — | — | ||||||||||||||||||
Corporate bonds and other fixed-income securities | 2,994 | — | 2,994 | — | ||||||||||||||||||||||||||
Total fixed-income securities | 3,665 | 671 | 2,994 | — | 3,455 | 366 | 3,089 | — | ||||||||||||||||||||||
Equity securities | 322 | 321 | — | 1 | 665 | 665 | — | — | ||||||||||||||||||||||
Cash and cash equivalents | 422 | 419 | 3 | — | ||||||||||||||||||||||||||
Real estate | 288 | — | — | 288 | 79 | — | — | 79 | ||||||||||||||||||||||
Cash and cash equivalents | 148 | 14 | 134 | — | ||||||||||||||||||||||||||
Certain insurance contracts | 236 | — | — | 236 | 53 | — | — | 53 | ||||||||||||||||||||||
Fair value excluding investments measured at net asset value | 4,659 | 1,006 | 3,128 | 525 | 4,674 | 1,450 | 3,092 | 132 | ||||||||||||||||||||||
Investments measured at net asset value | 4,051 | 2,234 | ||||||||||||||||||||||||||||
Total fair value | $ | 8,710 | ||||||||||||||||||||||||||||
Total plan assets at fair value | $ | 6,908 |
(a) | Amount includes cash collateral of $269 million associated with our securities lending program, which is reflected as an asset, and a corresponding securities lending payable of $269 million, which is reflected as a liability. The net impact on total plan assets at fair value is 0. |
• | Pooled funds. The fair values of participation units held in collective trusts are based on their net asset values, as reported by the managers of the collective trusts and as supported by the unit prices of actual purchase and sale transactions occurring as of or close to the financial statement date. The fair value of these investments measured at net asset value is excluded from the fair value hierarchy. Investments in the collective trusts can be redeemed on each business day based upon the applicable net asset value per unit. Investments in the international large/mid cap equity collective trust can be redeemed on the last business day of each month and at least one business day during the month. |
• | Short-term investments. Short-term investments largely consist of a money market fund, the fair value of which is based on the net asset value reported by the manager of the fund and supported by the unit prices of actual purchase and sale transactions. The fair value of these investments measured at net asset value is excluded from the fair value hierarchy. The money market fund is designed to provide safety of principal, daily liquidity, and a competitive yield by investing in high quality money market instruments. The investment objective of the money market fund is to provide the highest possible level of current income while still maintaining liquidity and preserving capital. |
• | Partnership/corporate feeder interests. Fair value estimates of the equity partnership are based on their net asset values, as reported by the manager of the partnership. The fair value of these investments measured at net asset value is excluded from the fair value hierarchy. Investments in the equity partnership may be redeemed once per month upon 10 days’ prior written notice to the General Partner, subject to the discretion of the General Partner. The investment objective of the equity partnership is to seek capital appreciation by investing primarily in equity securities. |
Asset Category | January 3, 2016 | Net Realized Gain/(Loss) | Net Unrealized Gain/(Loss) | Net Purchases, Issuances and Settlements | Transfers Into/(Out of) Level 3 | December 31, 2016 | December 29, 2018 | Additions | Net Realized Gain/(Loss) | Net Unrealized Gain/(Loss) | Net Purchases, Issuances and Settlements | Transfers Into/(Out of) Level 3 | December 28, 2019 | |||||||||||||||||||||||||||||||||||||
Equity securities | $ | 1 | $ | — | $ | — | $ | (1 | ) | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||
Real estate | 288 | 6 | (37 | ) | (23 | ) | — | 234 | $ | 79 | $ | — | $ | 2 | $ | 2 | $ | (38 | ) | $ | — | $ | 45 | |||||||||||||||||||||||||||
Corporate bonds and other fixed-income securities | — | — | — | — | — | 3 | 3 | |||||||||||||||||||||||||||||||||||||||||||
Certain insurance contracts | 236 | — | 13 | (49 | ) | (11 | ) | 189 | 53 | — | — | 1 | (5 | ) | — | 49 | ||||||||||||||||||||||||||||||||||
Total Level 3 investments | $ | 525 | $ | 6 | $ | (24 | ) | $ | (73 | ) | $ | (11 | ) | $ | 423 | $ | 132 | $ | — | $ | 2 | $ | 3 | $ | (43 | ) | $ | 3 | $ | 97 |
Asset Category | December 28, 2014 | 2015 Merger | Net Realized Gain/(Loss) | Net Unrealized Gain/(Loss) | Net Purchases, Issuances and Settlements | Transfers Into/(Out of) Level 3 | January 3, 2016 | December 30, 2017 | Additions | Net Realized Gain/(Loss) | Net Unrealized Gain/(Loss) | Net Purchases, Issuances and Settlements | Transfers Into/(Out of) Level 3 | December 29, 2018 | ||||||||||||||||||||||||||||||||||||||||
Equity securities | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | 1 | ||||||||||||||||||||||||||||||||||||||||
Real estate | 307 | — | 4 | 11 | (24 | ) | (10 | ) | 288 | $ | 262 | $ | — | $ | 49 | $ | (7 | ) | $ | (210 | ) | $ | (15 | ) | $ | 79 | ||||||||||||||||||||||||||||
Certain insurance contracts | 189 | 51 | 12 | (14 | ) | (2 | ) | — | 236 | 983 | — | (82 | ) | (3 | ) | (845 | ) | — | 53 | |||||||||||||||||||||||||||||||||||
Total Level 3 investments | $ | 496 | $ | 52 | $ | 16 | $ | (3 | ) | $ | (26 | ) | $ | (10 | ) | $ | 525 | $ | 1,245 | $ | — | $ | (33 | ) | $ | (10 | ) | $ | (1,055 | ) | $ | (15 | ) | $ | 132 |
U.S. Plans | Non-U.S. Plans | ||||||
2020 | $ | 343 | $ | 75 | |||
2021 | 340 | 75 | |||||
2022 | 331 | 80 | |||||
2023 | 323 | 79 | |||||
2024 | 314 | 80 | |||||
2025-2029 | 1,364 | 438 |
U.S. Plans | Non-U.S. Plans | ||||||
2017 | $ | 377 | $ | 524 | |||
2018 | 322 | 794 | |||||
2019 | 326 | 61 | |||||
2020 | 321 | 62 | |||||
2021 | 330 | 66 | |||||
2022-2026 | 1,651 | 386 |
December 28, 2019 | December 29, 2018 | ||||||
Benefit obligation at beginning of year | $ | 1,294 | $ | 1,553 | |||
Service cost | 6 | 8 | |||||
Interest cost | 46 | 45 | |||||
Benefits paid | (129 | ) | (136 | ) | |||
Actuarial losses/(gains) | 94 | (142 | ) | ||||
Plan amendments | (1 | ) | (21 | ) | |||
Currency | 6 | (13 | ) | ||||
Curtailments | (3 | ) | — | ||||
Benefit obligation at end of year | 1,313 | 1,294 | |||||
Fair value of plan assets at beginning of year | 1,044 | 1,188 | |||||
Actual return on plan assets | 187 | (26 | ) | ||||
Employer contributions | 13 | 19 | |||||
Benefits paid | (130 | ) | (137 | ) | |||
Fair value of plan assets at end of year | 1,114 | 1,044 | |||||
Net postretirement benefit liability/(asset) recognized at end of year | $ | 199 | $ | 250 |
December 31, 2016 | January 3, 2016 | ||||||
Accrued benefit obligations at beginning of year | $ | 1,945 | $ | 205 | |||
Service cost | 11 | 13 | |||||
Interest cost | 51 | 56 | |||||
Benefits paid | (150 | ) | (106 | ) | |||
Actuarial losses/(gains) | 5 | (7 | ) | ||||
Plan amendments | (158 | ) | (1,507 | ) | |||
Currency | 6 | (25 | ) | ||||
Curtailments | — | (55 | ) | ||||
Participant's contributions | — | — | |||||
Assumption of Kraft's benefit obligations | — | 3,371 | |||||
Other | 4 | — | |||||
Accrued benefit obligations at end of year | $ | 1,714 | $ | 1,945 |
December 28, 2019 | December 29, 2018 | ||||||
Other current liabilities | $ | (15 | ) | $ | (14 | ) | |
Accrued postemployment costs | (184 | ) | (236 | ) | |||
Net postretirement benefit asset/(liability) recognized | $ | (199 | ) | $ | (250 | ) |
December 28, 2019 | December 29, 2018 | ||||||
Accumulated benefit obligation | $ | 1,313 | $ | 1,294 | |||
Fair value of plan assets | 1,114 | 1,044 |
December 28, 2019 | December 29, 2018 | ||||
Discount rate | 3.1 | % | 4.2 | % | |
Health care cost trend rate assumed for next year | 6.5 | % | 6.7 | % | |
Ultimate trend rate | 4.9 | % | 4.9 | % |
December 31, 2016 | January 3, 2016 | ||||
Discount rate | 3.8 | % | 4.2 | % | |
Health care cost trend rate assumed for next year | 6.3 | % | 6.5 | % | |
Ultimate trend rate | 4.9 | % | 4.9 | % |
One-Percentage-Point | |||||||
Increase | (Decrease) | ||||||
Effect on annual service and interest cost | $ | 3 | $ | (2 | ) | ||
Effect on postretirement benefit obligation | 55 | (47 | ) |
One-Percentage-Point | |||||||
Increase | Decrease | ||||||
Effect on annual service and interest cost | $ | 6 | $ | (5 | ) | ||
Effect on postretirement benefit obligation | 74 | (63 | ) |
December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||
Service cost | $ | 6 | $ | 8 | $ | 10 | |||||
Interest cost | 46 | 45 | 49 | ||||||||
Expected return on plan assets | (53 | ) | (50 | ) | — | ||||||
Amortization of prior service costs/(credits) | (306 | ) | (311 | ) | (328 | ) | |||||
Amortization of unrecognized losses/(gains) | (8 | ) | — | — | |||||||
Curtailments | (5 | ) | — | (177 | ) | ||||||
Net postretirement cost/(benefit) | $ | (320 | ) | $ | (308 | ) | $ | (446 | ) |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | |||||||||
Service cost | $ | 11 | $ | 13 | $ | 5 | |||||
Interest cost | 51 | 56 | 9 | ||||||||
Amortization of prior service costs/(credits) | (362 | ) | (112 | ) | (6 | ) | |||||
Amortization of unrecognized losses/(gains) | (1 | ) | — | — | |||||||
Curtailments | — | 1 | (7 | ) | |||||||
Net postretirement cost/(benefit) | $ | (301 | ) | $ | (42 | ) | $ | 1 |
December 28, 2019 | December 29, 2018 | December 30, 2017 | ||||||
Discount rate - Service cost | 4.2 | % | 3.6 | % | 4.0 | % | ||
Discount rate - Interest cost | 3.8 | % | 3.0 | % | 3.0 | % | ||
Expected rate of return on plan assets | 5.4 | % | 4.4 | % | — | % | ||
Health care cost trend rate | 6.5 | % | 6.7 | % | 6.3 | % |
December 28, 2019 | December 29, 2018 | ||||
Fixed-income securities | 65 | % | 65 | % | |
Equity securities | 31 | % | 27 | % | |
Cash and cash equivalents | 4 | % | 8 | % |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | ||||||
Discount rate - Service Cost | 4.3 | % | 4.2 | % | 4.3 | % | ||
Discount rate - Interest Cost | 3.0 | % | 4.2 | % | 4.3 | % | ||
Health care cost trend rate | 6.5 | % | 6.7 | % | 6.0 | % |
Asset Category | Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Government bonds | $ | 33 | $ | 33 | $ | — | $ | — | |||||||
Corporate bonds and other fixed-income securities | 592 | — | 592 | — | |||||||||||
Total fixed-income securities | 625 | 33 | 592 | — | |||||||||||
Equity securities | 188 | 188 | — | — | |||||||||||
Fair value excluding investments measured at net asset value | 813 | 221 | 592 | — | |||||||||||
Investments measured at net asset value | 301 | ||||||||||||||
Total plan assets at fair value | $ | 1,114 |
Asset Category | Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Government bonds | $ | 26 | $ | 26 | $ | — | $ | — | |||||||
Corporate bonds and other fixed-income securities | 567 | — | 567 | — | |||||||||||
Total fixed-income securities | 593 | 26 | 567 | — | |||||||||||
Equity securities | 146 | 146 | — | — | |||||||||||
Fair value excluding investments measured at net asset value | 739 | 172 | 567 | — | |||||||||||
Investments measured at net asset value | 305 | ||||||||||||||
Total plan assets at fair value | $ | 1,044 |
• | Pooled funds. The fair values of participation units held in collective trusts are based on their net asset values, as reported by the managers of the collective trusts and as supported by the unit prices of actual purchase and sale transactions occurring as of or close to the financial statement date. The fair value of these investments measured at net asset value is excluded from the fair value hierarchy. Investments in the collective trusts can be redeemed on each business day based upon the applicable net asset value per unit. Investments in the international large/mid cap equity collective trust can be redeemed on the last business day of each month and at least one business day during the month. |
• | Short-term investments. Short-term investments largely consist of a money market fund, the fair value of which is based on the net asset value reported by the manager of the fund and supported by the unit prices of actual purchase and sale transactions. The fair value of these investments measured at net asset value is excluded from the fair value hierarchy. The money market fund is designed to provide safety of principal, daily liquidity, and a competitive yield by investing in high quality money market instruments. The investment objective of the money market fund is to provide the highest possible level of current income while still maintaining liquidity and preserving capital. |
2020 | $ | 125 | |
2021 | 114 | ||
2022 | 114 | ||
2023 | 107 | ||
2024 | 101 | ||
2025-2029 | 413 |
2017 | $ | 154 | |
2018 | 150 | ||
2019 | 144 | ||
2020 | 138 | ||
2021 | 132 | ||
2022-2026 | 570 |
Pension Benefits | Postretirement Benefits | Total | Pension Benefits | Postretirement Benefits | Total | |||||||||||||||||||||||||||||||||||||||||
December 31, 2016 | January 3, 2016 | December 31, 2016 | January 3, 2016 | December 31, 2016 | January 3, 2016 | December 28, 2019 | December 29, 2018 | December 28, 2019 | December 29, 2018 | December 28, 2019 | December 29, 2018 | |||||||||||||||||||||||||||||||||||
Net actuarial gain/(loss) | $ | (35 | ) | $ | 13 | $ | 64 | $ | 70 | $ | 29 | $ | 83 | $ | 74 | $ | 175 | $ | 209 | $ | 177 | $ | 283 | $ | 352 | |||||||||||||||||||||
Prior service credit/(cost) | — | — | 1,205 | 1,409 | 1,205 | 1,409 | (14 | ) | (14 | ) | 153 | 458 | 139 | 444 | ||||||||||||||||||||||||||||||||
$ | (35 | ) | $ | 13 | $ | 1,269 | $ | 1,479 | $ | 1,234 | $ | 1,492 | $ | 60 | $ | 161 | $ | 362 | $ | 635 | $ | 422 | $ | 796 |
December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||
Net postemployment benefit gains/(losses) arising during the period: | |||||||||||
Net actuarial gains/(losses) arising during the period - Pension Benefits | $ | (103 | ) | $ | 8 | $ | 45 | ||||
Net actuarial gains/(losses) arising during the period - Postretirement Benefits | 41 | 66 | 71 | ||||||||
Prior service credits/(costs) arising during the period - Pension Benefits | — | (15 | ) | 1 | |||||||
Prior service credits/(costs) arising during the period - Postretirement Benefits | 1 | 21 | 24 | ||||||||
(61 | ) | 80 | 141 | ||||||||
Tax benefit/(expense) | (5 | ) | (19 | ) | (55 | ) | |||||
$ | (66 | ) | $ | 61 | $ | 86 | |||||
Reclassification of net postemployment benefit losses/(gains) to net income/(loss): | |||||||||||
Amortization of unrecognized losses/(gains) - Pension Benefits | $ | 1 | $ | 2 | $ | 1 | |||||
Amortization of unrecognized losses/(gains) - Postretirement Benefits | (8 | ) | — | — | |||||||
Amortization of prior service costs/(credits) - Postretirement Benefits | (306 | ) | (311 | ) | (328 | ) | |||||
Net settlement and curtailment losses/(gains) - Pension Benefits | 1 | 153 | 2 | ||||||||
Net settlement and curtailment losses/(gains) - Postretirement Benefits | (1 | ) | — | (177 | ) | ||||||
Other losses/(gains) on postemployment benefits | 1 | — | — | ||||||||
(312 | ) | (156 | ) | (502 | ) | ||||||
Tax (benefit)/expense | 78 | 38 | 193 | ||||||||
$ | (234 | ) | $ | (118 | ) | $ | (309 | ) |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | |||||||||
Net postemployment benefit gains/(losses) arising during the period: | |||||||||||
Net actuarial gains/(losses) arising during the period - Pension Benefits | $ | (73 | ) | $ | 3 | $ | (75 | ) | |||
Net actuarial gains/(losses) arising during the period - Postretirement Benefits | (5 | ) | 62 | 1 | |||||||
Prior service credits/(costs) arising during the period - Pension Benefits | — | (7 | ) | — | |||||||
Prior service credits/(costs) arising during the period - Postretirement Benefits | 158 | 1,507 | — | ||||||||
80 | 1,565 | (74 | ) | ||||||||
Tax benefit/(expense) | (23 | ) | (619 | ) | 40 | ||||||
$ | 57 | $ | 946 | $ | (34 | ) | |||||
Reclassification of net postemployment benefit losses/(gains) to net income/(loss): | |||||||||||
Amortization of unrecognized losses/(gains) - Pension Benefits | $ | — | $ | 3 | $ | — | |||||
Amortization of unrecognized losses/(gains) - Postretirement Benefits | (1 | ) | — | — | |||||||
Amortization of prior service costs/(credits) - Pension Benefits | — | — | — | ||||||||
Amortization of prior service costs/(credits) - Postretirement Benefits | (362 | ) | (112 | ) | (6 | ) | |||||
Net settlement and curtailment losses/(gains) - Pension Benefits | 25 | (24 | ) | 4 | |||||||
Net settlement and curtailment losses/(gains) - Postretirement Benefits | — | 1 | (7 | ) | |||||||
(338 | ) | (132 | ) | (9 | ) | ||||||
Tax benefit/(expense) | 131 | 47 | 2 | ||||||||
$ | (207 | ) | $ | (85 | ) | $ | (7 | ) |
Notional Amount | |||||||
December 28, 2019 | December 29, 2018 | ||||||
Commodity contracts | $ | 475 | $ | 478 | |||
Foreign exchange contracts | 3,045 | 3,263 | |||||
Cross-currency contracts | 4,035 | 10,146 |
December 28, 2019 | |||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Total Fair Value | |||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Foreign exchange contracts(a) | $ | — | $ | — | $ | 7 | $ | 20 | $ | 7 | $ | 20 | |||||||||||
Cross-currency contracts(b) | — | — | 200 | 88 | 200 | 88 | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Commodity contracts(c) | 42 | 6 | — | 2 | 42 | 8 | |||||||||||||||||
Foreign exchange contracts(a) | — | — | 6 | 3 | 6 | 3 | |||||||||||||||||
Total fair value | $ | 42 | $ | 6 | $ | 213 | $ | 113 | $ | 255 | $ | 119 |
(a) | At December 28, 2019, the fair value of our derivative assets was recorded in other current assets ($12 million) and other non-current assets ($1 million), and the fair value of our derivative liabilities was recorded in other current liabilities. |
(b) | At December 28, 2019, the fair value of our derivative assets was recorded in other non-current assets and the fair value of our derivative liabilities was recorded in other non-current liabilities. |
(c) | At December 28, 2019, the fair value of our derivative assets was recorded in other current assets and the fair value of derivative liabilities was recorded in other current liabilities. |
December 29, 2018 | |||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Total Fair Value | |||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Foreign exchange contracts(a) | $ | — | $ | — | $ | 51 | $ | 26 | $ | 51 | $ | 26 | |||||||||||
Cross-currency contracts(b) | — | — | 139 | 3 | 139 | 3 | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Commodity contracts(a) | 5 | 27 | — | 2 | 5 | 29 | |||||||||||||||||
Foreign exchange contracts(a) | — | — | 5 | 42 | 5 | 42 | |||||||||||||||||
Cross-currency contracts(b) | — | — | 557 | 119 | 557 | 119 | |||||||||||||||||
Total fair value | $ | 5 | $ | 27 | $ | 752 | $ | 192 | $ | 757 | $ | 219 |
(a) | The fair value of derivative assets was recorded in other current assets and the fair value of derivative liabilities was recorded in other current liabilities. |
(b) | The fair value of derivative assets was recorded in other current assets ($557 million) and other non-current assets ($139 million), and the fair value of derivative liabilities was recorded within other current liabilities ($119 million) and other non-current liabilities ($3 million). |
Accumulated Other Comprehensive Income/(Losses) Component | Gains/(Losses) Recognized in Other Comprehensive Income/(Losses) Related to Derivatives Designated as Hedging Instruments | Location of Gains/(Losses) When Reclassified to Net Income/(Loss) | ||||||||||||
December 28, 2019 | December 29, 2018 | December 30, 2017 | ||||||||||||
Cash flow hedges: | ||||||||||||||
Foreign exchange contracts | $ | — | $ | — | $ | 1 | Net sales | |||||||
Foreign exchange contracts | (36 | ) | 64 | (42 | ) | Cost of products sold | ||||||||
Foreign exchange contracts (excluded component) | 2 | (2 | ) | — | Cost of products sold | |||||||||
Foreign exchange contracts | (23 | ) | 56 | (82 | ) | Other expense/(income) | ||||||||
Foreign exchange contracts (excluded component) | — | 3 | — | Other expense/(income) | ||||||||||
Cross-currency contracts | 43 | (4 | ) | — | Other expense/(income) | |||||||||
Cross-currency contracts (excluded component) | 28 | 1 | — | Other expense/(income) | ||||||||||
Net investment hedges: | ||||||||||||||
Foreign exchange contracts | 13 | (11 | ) | (23 | ) | Other expense/(income) | ||||||||
Foreign exchange contracts (excluded component) | (1 | ) | (3 | ) | — | Interest expense | ||||||||
Cross-currency contracts | (67 | ) | 214 | (184 | ) | Other expense/(income) | ||||||||
Cross-currency contracts (excluded component) | 30 | 13 | — | Interest expense | ||||||||||
Total gains/(losses) recognized in statements of comprehensive income | $ | (11 | ) | $ | 331 | $ | (330 | ) |
December 28, 2019 | December 29, 2018 | ||||||||||||||||||||||
Cost of products sold | Interest expense | Other expense/ (income) | Cost of products sold | Interest expense | Other expense/ (income) | ||||||||||||||||||
Total amounts presented in the consolidated statements of income in which the following effects were recorded | $ | 16,830 | $ | 1,361 | $ | (952 | ) | $ | 17,347 | $ | 1,284 | $ | (168 | ) | |||||||||
Gains/(losses) related to derivatives designated as hedging instruments: | |||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||
Foreign exchange contracts | $ | 23 | $ | — | $ | (22 | ) | $ | (2 | ) | $ | — | $ | 56 | |||||||||
Foreign exchange contracts (excluded component) | — | — | — | (2 | ) | — | 3 | ||||||||||||||||
Interest rate contracts | — | (4 | ) | — | — | (4 | ) | — | |||||||||||||||
Cross-currency contracts | — | — | 23 | — | — | (7 | ) | ||||||||||||||||
Cross-currency contracts (excluded component) | — | — | 28 | — | — | 1 | |||||||||||||||||
Net investment hedges: | |||||||||||||||||||||||
Foreign exchange contracts | — | — | (6 | ) | — | — | — | ||||||||||||||||
Foreign exchange contracts (excluded component) | — | (1 | ) | — | — | (3 | ) | — | |||||||||||||||
Cross-currency contracts (excluded component) | — | 30 | — | — | 13 | — | |||||||||||||||||
Gains/(losses) related to derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Commodity contracts | 43 | — | — | (44 | ) | — | — | ||||||||||||||||
Foreign exchange contracts | — | — | (1 | ) | — | — | (84 | ) | |||||||||||||||
Cross-currency contracts | — | — | 11 | — | — | 4 | |||||||||||||||||
Total gains/(losses) recognized in statements of income | $ | 66 | $ | 25 | $ | 33 | $ | (48 | ) | $ | 6 | $ | (27 | ) |
December 30, 2017 | |||||||||||
Cost of products sold | Interest expense | Other expense/ (income) | |||||||||
Total amounts presented in the consolidated statements of income in which the following effects were recorded | $ | 17,043 | $ | 1,234 | $ | (627 | ) | ||||
Gains/(losses) related to derivatives designated as hedging instruments: | |||||||||||
Cash flow hedges: | |||||||||||
Foreign exchange contracts | $ | — | $ | — | $ | (81 | ) | ||||
Interest rate contracts | — | (4 | ) | — | |||||||
Gains/(losses) related to derivatives not designated as hedging instruments: | |||||||||||
Commodity contracts | (37 | ) | — | — | |||||||
Foreign exchange contracts | — | — | 54 | ||||||||
Cross-currency contracts | — | — | (2 | ) | |||||||
Total gains/(losses) recognized in statements of income | $ | (37 | ) | $ | (4 | ) | $ | (29 | ) |
Foreign Currency Translation Adjustments | Net Postemployment Benefit Plan Adjustments | Net Cash Flow Hedge Adjustments | Total | ||||||||||||
Balance as of December 31, 2016 | $ | (2,413 | ) | $ | 772 | $ | 12 | $ | (1,629 | ) | |||||
Foreign currency translation adjustments | 1,179 | — | — | 1,179 | |||||||||||
Net deferred gains/(losses) on net investment hedges | (353 | ) | — | — | (353 | ) | |||||||||
Net deferred gains/(losses) on cash flow hedges | — | — | (113 | ) | (113 | ) | |||||||||
Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) | — | — | 85 | 85 | |||||||||||
Net postemployment benefit gains/(losses) arising during the period | — | 86 | — | 86 | |||||||||||
Net postemployment benefit losses/(gains) reclassified to net income/(loss) | — | (309 | ) | — | (309 | ) | |||||||||
Total other comprehensive income/(loss) | 826 | (223 | ) | (28 | ) | 575 | |||||||||
Balance as of December 30, 2017 | (1,587 | ) | 549 | (16 | ) | (1,054 | ) | ||||||||
Foreign currency translation adjustments | (1,173 | ) | — | — | (1,173 | ) | |||||||||
Net deferred gains/(losses) on net investment hedges | 284 | — | — | 284 | |||||||||||
Amounts excluded from the effectiveness assessment of net investment hedges | 7 | — | — | 7 | |||||||||||
Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) | (7 | ) | — | — | (7 | ) | |||||||||
Net deferred gains/(losses) on cash flow hedges | — | — | 99 | 99 | |||||||||||
Amounts excluded from the effectiveness assessment of cash flow hedges | — | — | 2 | 2 | |||||||||||
Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) | — | — | (44 | ) | (44 | ) | |||||||||
Net postemployment benefit gains/(losses) arising during the period | — | 61 | — | 61 | |||||||||||
Net postemployment benefit losses/(gains) reclassified to net income/(loss) | — | (118 | ) | — | (118 | ) | |||||||||
Total other comprehensive income/(loss) | (889 | ) | (57 | ) | 57 | (889 | ) | ||||||||
Balance as of December 29, 2018 | (2,476 | ) | 492 | 41 | (1,943 | ) | |||||||||
Foreign currency translation adjustments | 239 | — | — | 239 | |||||||||||
Net deferred gains/(losses) on net investment hedges | 1 | — | — | 1 | |||||||||||
Amounts excluded from the effectiveness assessment of net investment hedges | 22 | — | — | 22 | |||||||||||
Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) | (16 | ) | — | — | (16 | ) | |||||||||
Net deferred gains/(losses) on cash flow hedges | — | — | (10 | ) | (10 | ) | |||||||||
Amounts excluded from the effectiveness assessment of cash flow hedges | — | — | 29 | 29 | |||||||||||
Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) | — | — | (41 | ) | (41 | ) | |||||||||
Net postemployment benefit gains/(losses) arising during the period | — | (69 | ) | — | (69 | ) | |||||||||
Net postemployment benefit losses/(gains) reclassified to net income/(loss) | — | (234 | ) | — | (234 | ) | |||||||||
Cumulative effect of accounting standards adopted in the period(a) | — | 114 | 22 | 136 | |||||||||||
Total other comprehensive income/(loss) | 246 | (189 | ) | — | 57 | ||||||||||
Balance at December 28, 2019 | $ | (2,230 | ) | $ | 303 | $ | 41 | $ | (1,886 | ) |
(a) | In the first quarter of 2019, we adopted ASU 2018-02 related to reclassifying tax effects stranded in accumulated other comprehensive income/(losses). See Note 3, New Accounting Standards, for additional information. |
Foreign Currency Translation Adjustments | Net Postemployment Benefit Plan Adjustments | Net Cash Flow Hedge Adjustments | Total | ||||||||||||
(in millions) | |||||||||||||||
Balance as of December 29, 2013 | $ | 22 | $ | 102 | $ | 108 | $ | 232 | |||||||
Foreign currency translation adjustments | (932 | ) | — | — | (932 | ) | |||||||||
Net deferred gains/(losses) on net investment hedges | 336 | — | — | 336 | |||||||||||
Net postemployment benefit gains/(losses) arising during the period | — | (34 | ) | — | (34 | ) | |||||||||
Reclassification of net postemployment benefit losses/(gains) | — | (7 | ) | — | (7 | ) | |||||||||
Net deferred gains/(losses) on cash flow hedges | — | — | (173 | ) | (173 | ) | |||||||||
Net deferred losses/(gains) on cash flow hedges reclassified to net income | — | — | 4 | 4 | |||||||||||
Total other comprehensive income/(loss) | (596 | ) | (41 | ) | (169 | ) | (806 | ) | |||||||
Balance as of December 28, 2014 | (574 | ) | 61 | (61 | ) | (574 | ) | ||||||||
Foreign currency translation adjustments | (1,578 | ) | — | — | (1,578 | ) | |||||||||
Net deferred gains/(losses) on net investment hedges | 506 | — | — | 506 | |||||||||||
Net postemployment benefit gains/(losses) arising during the period | — | 946 | — | 946 | |||||||||||
Reclassification of net postemployment benefit losses/(gains) | — | (85 | ) | — | (85 | ) | |||||||||
Net deferred gains/(losses) on cash flow hedges | — | — | (6 | ) | (6 | ) | |||||||||
Net deferred losses/(gains) on cash flow hedges reclassified to net income | — | — | 120 | 120 | |||||||||||
Total other comprehensive income/(loss) | (1,072 | ) | 861 | 114 | (97 | ) | |||||||||
Balance as of January 3, 2016 | (1,646 | ) | 922 | 53 | (671 | ) | |||||||||
Foreign currency translation adjustments | (992 | ) | — | — | (992 | ) | |||||||||
Net deferred gains/(losses) on net investment hedges | 226 | — | — | 226 | |||||||||||
Net postemployment benefit gains/(losses) arising during the period | — | 57 | — | 57 | |||||||||||
Reclassification of net postemployment benefit losses/(gains) | — | (207 | ) | — | (207 | ) | |||||||||
Net deferred gains/(losses) on cash flow hedges | — | — | 46 | 46 | |||||||||||
Net deferred losses/(gains) on cash flow hedges reclassified to net income | — | — | (87 | ) | (87 | ) | |||||||||
Total other comprehensive income/(loss) | (766 | ) | (150 | ) | (41 | ) | (957 | ) | |||||||
Balance as of December 31, 2016 | $ | (2,412 | ) | $ | 772 | $ | 12 | $ | (1,628 | ) |
December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||||||||||||||||||||||||||
Before Tax Amount | Tax | Net of Tax Amount | Before Tax Amount | Tax | Net of Tax Amount | Before Tax Amount | Tax | Net of Tax Amount | |||||||||||||||||||||||||||
Foreign currency translation adjustments | $ | 239 | $ | — | $ | 239 | $ | (1,173 | ) | $ | — | $ | (1,173 | ) | $ | 1,179 | $ | — | $ | 1,179 | |||||||||||||||
Net deferred gains/(losses) on net investment hedges | (2 | ) | 3 | 1 | 377 | (93 | ) | 284 | (632 | ) | 279 | (353 | ) | ||||||||||||||||||||||
Amounts excluded from the effectiveness assessment of net investment hedges | 29 | (7 | ) | 22 | 10 | (3 | ) | 7 | — | — | — | ||||||||||||||||||||||||
Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) | (23 | ) | 7 | (16 | ) | (10 | ) | 3 | (7 | ) | — | — | — | ||||||||||||||||||||||
Net deferred gains/(losses) on cash flow hedges | (16 | ) | 6 | (10 | ) | 116 | (17 | ) | 99 | (123 | ) | 10 | (113 | ) | |||||||||||||||||||||
Amounts excluded from the effectiveness assessment of cash flow hedges | 30 | (1 | ) | 29 | 2 | — | 2 | — | — | — | |||||||||||||||||||||||||
Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) | (48 | ) | 7 | (41 | ) | (45 | ) | 1 | (44 | ) | 85 | — | 85 | ||||||||||||||||||||||
Net actuarial gains/(losses) arising during the period | (65 | ) | (5 | ) | (70 | ) | 74 | (16 | ) | 58 | 116 | (47 | ) | 69 | |||||||||||||||||||||
Prior service credits/(costs) arising during the period | 1 | — | 1 | 6 | (3 | ) | 3 | 25 | (8 | ) | 17 | ||||||||||||||||||||||||
Net postemployment benefit losses/(gains) reclassified to net income/(loss) | (312 | ) | 78 | (234 | ) | (156 | ) | 38 | (118 | ) | (502 | ) | 193 | (309 | ) |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | |||||||||||||||||||||||||||||||||
Before Tax Amount | Tax | Net of Tax Amount | Before Tax Amount | Tax | Net of Tax Amount | Before Tax Amount | Tax | Net of Tax Amount | |||||||||||||||||||||||||||
Foreign currency translation adjustments | $ | (992 | ) | $ | — | $ | (992 | ) | $ | (1,578 | ) | $ | — | $ | (1,578 | ) | $ | (932 | ) | $ | — | $ | (932 | ) | |||||||||||
Net deferred gains/(losses) on net investment hedges | 426 | (200 | ) | 226 | 801 | (295 | ) | 506 | 545 | (209 | ) | 336 | |||||||||||||||||||||||
Net actuarial gains/(losses) arising during the period | (78 | ) | 38 | (40 | ) | 65 | (42 | ) | 23 | (74 | ) | 40 | (34 | ) | |||||||||||||||||||||
Prior service credits/(costs) arising during the period | 158 | (61 | ) | 97 | 1,500 | (577 | ) | 923 | — | — | — | ||||||||||||||||||||||||
Reclassification of net postemployment benefit losses/(gains) | (338 | ) | 131 | (207 | ) | (132 | ) | 47 | (85 | ) | (9 | ) | 2 | (7 | ) | ||||||||||||||||||||
Net deferred gains/(losses) on cash flow hedges | 40 | 6 | 46 | (38 | ) | 32 | (6 | ) | (268 | ) | 95 | (173 | ) | ||||||||||||||||||||||
Net deferred losses/(gains) on cash flow hedges reclassified to net income | (81 | ) | (6 | ) | (87 | ) | 195 | (75 | ) | 120 | (5 | ) | 9 | 4 |
Accumulated Other Comprehensive Income/(Losses) Component | Reclassified from Accumulated Other Comprehensive Income/(Losses) to Net Income/(Loss) | Affected Line Item in the Statements of Income | ||||||||||||
December 28, 2019 | December 29, 2018 | December 30, 2017 | ||||||||||||
Losses/(gains) on net investment hedges: | ||||||||||||||
Foreign exchange contracts(a) | $ | 6 | $ | — | $ | — | Other expense/(income) | |||||||
Foreign exchange contracts(b) | 1 | 3 | — | Interest expense | ||||||||||
Cross-currency contracts(b) | (30 | ) | (13 | ) | — | Interest expense | ||||||||
Losses/(gains) on cash flow hedges: | ||||||||||||||
Foreign exchange contracts(c) | (23 | ) | 4 | — | Cost of products sold | |||||||||
Foreign exchange contracts(c) | 22 | (59 | ) | 81 | Other expense/(income) | |||||||||
Cross-currency contracts(b) | (51 | ) | 6 | — | Other expense/(income) | |||||||||
Interest rate contracts(d) | 4 | 4 | 4 | Interest expense | ||||||||||
Losses/(gains) on hedges before income taxes | (71 | ) | (55 | ) | 85 | |||||||||
Losses/(gains) on hedges, income taxes | 14 | 4 | — | |||||||||||
Losses/(gains) on hedges | $ | (57 | ) | $ | (51 | ) | $ | 85 | ||||||
Losses/(gains) on postemployment benefits: | ||||||||||||||
Amortization of unrecognized losses/(gains)(e) | $ | (7 | ) | $ | 2 | $ | 1 | |||||||
Amortization of prior service costs/(credits)(e) | (306 | ) | (311 | ) | (328 | ) | ||||||||
Settlement and curtailment losses/(gains)(e) | — | 153 | (175 | ) | ||||||||||
Other losses/(gains) on postemployment benefits | 1 | — | — | |||||||||||
Losses/(gains) on postemployment benefits before income taxes | (312 | ) | (156 | ) | (502 | ) | ||||||||
Losses/(gains) on postemployment benefits, income taxes | 78 | 38 | 193 | |||||||||||
Losses/(gains) on postemployment benefits | $ | (234 | ) | $ | (118 | ) | $ | (309 | ) |
Accumulated Other Comprehensive Income/(Losses) Component | Reclassified from Accumulated Other Comprehensive Income/(Losses) | Affected Line Item in the Statement Where Net Income is Presented | ||||||||||||
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | ||||||||||||
Losses/(gains) on cash flow hedges: | ||||||||||||||
Foreign exchange contracts | $ | (6 | ) | $ | 2 | $ | 1 | Net sales | ||||||
Foreign exchange contracts | (41 | ) | (45 | ) | (5 | ) | Cost of products sold | |||||||
Foreign exchange contracts | (38 | ) | (1 | ) | (1 | ) | Other expense/(income), net | |||||||
Interest rate contracts | 4 | 239 | — | Interest expense | ||||||||||
Losses/(gains) on cash flow hedges before income taxes | (81 | ) | 195 | (5 | ) | |||||||||
Losses/(gains) on cash flow hedges income taxes | (6 | ) | (75 | ) | 9 | |||||||||
Losses/(gains) on cash flow hedges | $ | (87 | ) | $ | 120 | $ | 4 | |||||||
Losses/(gains) on postemployment benefits: | ||||||||||||||
Amortization of unrecognized losses/(gains) | $ | (1 | ) | $ | 3 | $ | — | (a) | ||||||
Amortization of prior service costs/(credits) | (362 | ) | (112 | ) | (6 | ) | (a) | |||||||
Settlement and curtailments losses/(gains) | 25 | (23 | ) | (3 | ) | (a) | ||||||||
Losses/(gains) on postemployment benefits before income taxes | (338 | ) | (132 | ) | (9 | ) | ||||||||
Losses/(gains) on postemployment benefits income taxes | 131 | 47 | 2 | |||||||||||
Losses/(gains) on postemployment benefits | $ | (207 | ) | $ | (85 | ) | $ | (7 | ) |
(a) | Represents the reclassification of hedge losses/(gains) resulting from the complete or substantially complete liquidation of our investment in the underlying foreign operations. |
(b) | Represents recognition of the excluded component in net income/(loss). |
(c) | Includes amortization of the excluded component and the effective portion of the related hedges. |
(d) | Represents amortization of realized hedge losses that were deferred into accumulated other comprehensive income/(losses) through the maturity of the related long-term debt instruments. |
(e) | These components are included in the computation of net periodic postemployment benefit costs. See Note |
Priority 1 | Maturity Dates | Interest Rates 2 | Carrying Values | |||||||||||
December 31, 2016 | January 3, 2016 | |||||||||||||
(in millions) | ||||||||||||||
U.S. dollar notes: | ||||||||||||||
2025 Notes(a) | Senior Secured Notes | February 15, 2025 | 4.875% | $ | 1,191 | $ | 1,190 | |||||||
Other U.S. dollar notes(b)(c)(d) | Senior Notes | 2017-2046 | 1.500% - 7.125% | 25,761 | 20,957 | |||||||||
Euro notes(b)(c) | Senior Notes | 2023-2028 | 1.500% - 2.250% | 2,656 | 803 | |||||||||
Canadian dollar notes(b) | Senior Notes | 2018-2020 | 1.697% - 2.700% | 743 | 720 | |||||||||
British pound sterling notes(b)(d) | Senior Notes | 2027-2030 | 4.125% - 6.250% | 650 | 778 | |||||||||
Term Loan Facility | Senior Unsecured Loan | July 6, 2022 | 2.114% | 596 | 596 | |||||||||
Other long-term debt | Various | 2017-2035 | 0.500% - 5.800% | 54 | 57 | |||||||||
Capital lease obligations | 108 | 129 | ||||||||||||
Total long-term debt | 31,759 | 25,230 | ||||||||||||
Current portion of long-term debt | 2,046 | 79 | ||||||||||||
Long-term debt, excluding current portion | $ | 29,713 | $ | 25,151 |
2017 | $ | 2,019 | |
2018 | 2,685 | ||
2019 | 3 | ||
2020 | 2,999 | ||
2021 | 38 | ||
Thereafter | 23,446 |
Shares Issued | Treasury Shares | Shares Outstanding | ||||||
Balance at December 29, 2013 | 376,832 | — | 376,832 | |||||
Exercise of stock options, issuance of other stock awards, and other | 178 | — | 178 | |||||
Balance at December 28, 2014 | 377,010 | — | 377,010 | |||||
Exercise of warrants | 20,480 | — | 20,480 | |||||
Issuance of common stock to Sponsors | 221,666 | — | 221,666 | |||||
Acquisition of Kraft Foods Group, Inc. | 592,898 | — | 592,898 | |||||
Exercise of stock options, issuance of other stock awards, and other | 2,338 | (413 | ) | 1,925 | ||||
Balance at January 3, 2016 | 1,214,392 | (413 | ) | 1,213,979 | ||||
Exercise of stock options, issuance of other stock awards, and other | 4,555 | (2,058 | ) | 2,497 | ||||
Balance at December 31, 2016 | 1,218,947 | (2,471 | ) | 1,216,476 |
Notional Amount | |||||||
December 31, 2016 | January 3, 2016 | ||||||
Commodity contracts | $ | 459 | $ | 787 | |||
Foreign exchange contracts | 2,997 | 3,458 | |||||
Cross-currency contracts | 3,173 | 4,328 |
December 31, 2016 | |||||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | ||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | — | $ | — | $ | 69 | $ | 13 | $ | — | $ | — | $ | 69 | $ | 13 | |||||||||||||||
Cross-currency contracts | — | — | 580 | 36 | — | — | 580 | 36 | |||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||
Commodity contracts | 28 | 7 | — | — | — | — | 28 | 7 | |||||||||||||||||||||||
Foreign exchange contracts | — | — | 35 | 30 | — | — | 35 | 30 | |||||||||||||||||||||||
Cross-currency contracts | — | — | 44 | — | — | — | 44 | — | |||||||||||||||||||||||
Total fair value | $ | 28 | $ | 7 | $ | 728 | $ | 79 | $ | — | $ | — | $ | 756 | $ | 86 |
January 3, 2016 | |||||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | ||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | — | $ | — | $ | 46 | $ | 6 | $ | — | $ | — | $ | 46 | $ | 6 | |||||||||||||||
Cross-currency contracts | — | — | 605 | — | — | — | 605 | — | |||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||
Commodity contracts | 24 | 29 | 1 | 7 | — | — | 25 | 36 | |||||||||||||||||||||||
Foreign exchange contracts | — | — | 88 | 13 | — | — | 88 | 13 | |||||||||||||||||||||||
Cross-currency contracts | — | — | 47 | — | — | — | 47 | — | |||||||||||||||||||||||
Total fair value | $ | 24 | $ | 29 | $ | 787 | $ | 26 | $ | — | $ | — | $ | 811 | $ | 55 |
Instrument | Notional (local) (in billions) | Notional (USD) (in billions) | Maturity | |||||||
Cross-currency swap | £ | 0.8 | $ | 1.4 | October 2019 | |||||
Cross-currency swap | C$ | 1.8 | 1.6 | December 2019 |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | ||||||||||||||||||||||||||||||
Commodity Contracts | Foreign Exchange Contracts | Cross-Currency Contracts | Interest Rate Contracts | Commodity Contracts | Foreign Exchange Contracts | Cross-Currency Contracts | Interest Rate Contracts | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||||
Gains/(losses) recognized in other comprehensive income (effective portion) | $ | — | $ | 48 | $ | — | $ | (8 | ) | $ | — | $ | 73 | $ | — | $ | (111 | ) | |||||||||||||
Net investment hedges: | |||||||||||||||||||||||||||||||
Gains/(losses) recognized in other comprehensive income (effective portion) | — | 45 | 147 | — | — | — | 736 | — | |||||||||||||||||||||||
Total gains/(losses) recognized in other comprehensive income (effective portion) | $ | — | $ | 93 | $ | 147 | $ | (8 | ) | $ | — | $ | 73 | $ | 736 | $ | (111 | ) | |||||||||||||
Cash flow hedges reclassified to net income/(loss): | |||||||||||||||||||||||||||||||
Net sales | $ | — | $ | 6 | $ | — | $ | — | $ | — | $ | (2 | ) | $ | — | $ | — | ||||||||||||||
Cost of products sold (effective portion) | — | 41 | — | — | — | 45 | — | — | |||||||||||||||||||||||
Other expense/(income), net | — | 38 | — | — | — | 1 | — | — | |||||||||||||||||||||||
Interest expense | — | — | — | (4 | ) | — | — | — | (239 | ) | |||||||||||||||||||||
— | 85 | — | (4 | ) | — | 44 | — | (239 | ) | ||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||
Gains/(losses) on derivatives recognized in cost of products sold | 9 | — | — | — | (57 | ) | — | — | — | ||||||||||||||||||||||
Gains/(losses) on derivatives recognized in other expense/(income), net | — | (63 | ) | (3 | ) | — | — | 92 | 53 | 8 | |||||||||||||||||||||
9 | (63 | ) | (3 | ) | — | (57 | ) | 92 | 53 | 8 | |||||||||||||||||||||
Total gains/(losses) recognized in statements of income | $ | 9 | $ | 22 | $ | (3 | ) | $ | (4 | ) | $ | (57 | ) | $ | 136 | $ | 53 | $ | (231 | ) |
December 28, 2014 (52 weeks) | |||||||||||||||
Commodity Contracts | Foreign Exchange Contracts | Cross-Currency Contracts | Interest Rate Contracts | ||||||||||||
(in millions) | |||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Cash flow hedges: | |||||||||||||||
Gains/(losses) recognized in other comprehensive income (effective portion) | $ | — | $ | 21 | $ | — | $ | (289 | ) | ||||||
Net investment hedges: | |||||||||||||||
Gains/(losses) recognized in other comprehensive income (effective portion) | — | — | 545 | — | |||||||||||
Total gains/(losses) recognized in other comprehensive income (effective portion) | $ | — | $ | 21 | $ | 545 | $ | (289 | ) | ||||||
Cash flow hedges reclassified to net income/(loss): | |||||||||||||||
Net sales | $ | — | $ | (1 | ) | $ | — | $ | — | ||||||
Cost of products sold (effective portion) | — | 5 | — | — | |||||||||||
Other expense/(income), net | — | 1 | — | — | |||||||||||
Interest expense | — | — | — | — | |||||||||||
— | 5 | — | — | ||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Gains/(losses) on derivatives recognized in cost of products sold | — | — | — | — | |||||||||||
Gains/(losses) on derivatives recognized in other expense/(income), net | — | 151 | — | — | |||||||||||
— | 151 | — | — | ||||||||||||
Total gains/(losses) recognized in statements of income | $ | — | $ | 156 | $ | — | $ | — |
2017 | $ | 94 | |
2018 | 92 | ||
2019 | 77 | ||
2020 | 61 | ||
2021 | 43 | ||
Thereafter | 107 | ||
Total | $ | 474 |
2020 | $ | 1,324 | |
2021 | 590 | ||
2022 | 448 | ||
2023 | 306 | ||
2024 | 187 | ||
Thereafter | 89 | ||
Total | $ | 2,944 |
2017 | $ | 1,861 | |
2018 | 670 | ||
2019 | 369 | ||
2020 | 252 | ||
2021 | 125 | ||
Thereafter | 366 | ||
Total | $ | 3,643 |
Priority (a) | Maturity Dates | Interest Rates (b) | Carrying Values | |||||||||||
December 28, 2019 | December 29, 2018 | |||||||||||||
(in millions) | ||||||||||||||
U.S. dollar notes: | ||||||||||||||
2025 Notes(c) | Senior Secured Notes | February 15, 2025 | 4.875% | $ | 971 | $ | 1,193 | |||||||
Other U.S. dollar notes(d)(e) | Senior Notes | 2020-2049 | 2.471% - 7.125% | 24,127 | 25,551 | |||||||||
Euro notes(d) | Senior Notes | 2023-2028 | 1.500% - 2.250% | 2,834 | 2,899 | |||||||||
Canadian dollar notes(f) | Senior Notes | July 6, 2020 | 3.020% | 382 | 586 | |||||||||
British pound sterling notes: | ||||||||||||||
2030 Notes(g) | Senior Secured Notes | February 18, 2030 | 6.250% | 170 | 165 | |||||||||
Other British pound sterling notes(d) | Senior Notes | July 1, 2027 | 4.125% | 519 | 504 | |||||||||
Other long-term debt | Various | 2020-2035 | 0.500% - 5.500% | 48 | 50 | |||||||||
Finance lease obligations | 187 | 199 | ||||||||||||
Total long-term debt | 29,238 | 31,147 | ||||||||||||
Current portion of long-term debt | 1,022 | 377 | ||||||||||||
Long-term debt, excluding current portion | $ | 28,216 | $ | 30,770 |
(a) | Priority of debt indicates the order which debt would be paid if all debt obligations were due on the same day. Senior secured debt takes priority over unsecured debt. Senior debt has greater seniority than subordinated debt. |
(b) | Floating interest rates are stated as of December 28, 2019. |
(c) | The 4.875% Second Lien Senior Secured Notes due February 15, 2025 (the “2025 Notes”) are senior in right of payment of existing and future unsecured and subordinated indebtedness. Kraft Heinz fully and unconditionally guarantees these notes. |
(d) | Kraft Heinz fully and unconditionally guarantees these notes, which were issued by KHFC. |
(e) | Includes current year issuances (the “2019 Notes”) described below. |
(f) | Kraft Heinz fully and unconditionally guarantees these notes, which were issued by Kraft Heinz Canada ULC (formerly Kraft Canada Inc.). |
(g) | The 6.250% Pound Sterling Senior Secured Notes due February 18, 2030 (the “2030 Notes”) were issued by H.J. Heinz Finance UK Plc. Kraft Heinz and KHFC fully and unconditionally guarantee the 2030 Notes. This guarantee is secured and senior in right of payment of existing and future unsecured and subordinated indebtedness. Kraft Heinz became guarantor of the 2030 Notes in connection with the 2015 Merger. The 2030 Notes were previously only guaranteed by KHFC. |
2020 | $ | 995 | |
2021 | 990 | ||
2022 | 2,073 | ||
2023 | 1,678 | ||
2024 | 617 | ||
Thereafter | 22,460 |
Aggregate Principal Amount Outstanding Before Tender Offers | Amount Validly Tendered | Aggregate Principal Amount Outstanding After Tender Offers | |||||||||
5.375% senior notes due February 2020 | $ | 900 | $ | 495 | $ | 405 | |||||
3.500% senior notes due June 2022 | 2,000 | 881 | 1,119 | ||||||||
3.500% senior notes due July 2022 | 1,000 | 554 | 446 | ||||||||
4.000% senior notes due June 2023 | 1,600 | 762 | 838 | ||||||||
4.875% second lien senior secured notes due February 2025 | 1,200 | 224 | 976 |
Aggregate Principal Amount Outstanding Before Redemptions | Amount Redeemed | Aggregate Principal Amount Outstanding After Redemptions | |||||||||
2.700% Canadian dollar senior notes due July 2020 | C$ | 300 | C$ | 300 | C$ | — | |||||
2.800% senior notes due July 2020 | $ | 1,500 | $ | 1,300 | $ | 200 |
Aggregate Principal Amount | ||||
(in millions) | ||||
3.750% senior notes due April 2030 | $ | 1,000 | ||
4.625% senior notes due October 2039 | 500 | |||
4.875% senior notes due October 2049 | 1,500 | |||
Total senior notes issued | $ | 3,000 |
December 28, 2019 | |||
Operating lease costs | $ | 191 | |
Finance lease costs: | |||
Amortization of right-of-use assets | 27 | ||
Interest on lease liabilities | 6 | ||
Short-term lease costs | 13 | ||
Variable lease costs | 1,270 | ||
Sublease income | (14 | ) | |
Total lease costs | $ | 1,493 |
December 28, 2019 | |||||||
Operating Leases | Finance Leases | ||||||
Right-of-use assets | $ | 542 | $ | 185 | |||
Lease liabilities (current) | 147 | 28 | |||||
Lease liabilities (non-current) | 454 | 158 | |||||
Weighted average remaining lease term | 6 years | 9 years | |||||
Weighted average discount rate | 4.0 | % | 3.4 | % |
December 28, 2019 | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash inflows/(outflows) from operating leases | $ | (196 | ) |
Operating cash inflows/(outflows) from finance leases | (6 | ) | |
Financing cash inflows/(outflows) from finance leases | (28 | ) | |
Right-of-use assets obtained in exchange for lease liabilities: | |||
Operating leases | 42 | ||
Finance leases | 12 |
Operating Leases | Finance Leases | ||||||
2020 | $ | 168 | $ | 33 | |||
2021 | 131 | 74 | |||||
2022 | 96 | 22 | |||||
2023 | 69 | 10 | |||||
2024 | 53 | 7 | |||||
Thereafter | 167 | 80 | |||||
Total future undiscounted lease payments | 684 | 226 | |||||
Less imputed interest | (83 | ) | (40 | ) | |||
Total lease liability | $ | 601 | $ | 186 |
2019 | $ | 185 | |
2020 | 137 | ||
2021 | 105 | ||
2022 | 70 | ||
2023 | 49 | ||
Thereafter | 148 | ||
Total | $ | 694 |
Shares Issued | Treasury Shares | Shares Outstanding | ||||||
Balance at December 31, 2016 | 1,219 | (2 | ) | 1,217 | ||||
Exercise of stock options, issuance of other stock awards, and other | 2 | — | 2 | |||||
Balance at December 30, 2017 | 1,221 | (2 | ) | 1,219 | ||||
Exercise of stock options, issuance of other stock awards, and other | 3 | (2 | ) | 1 | ||||
Balance at December 29, 2018 | 1,224 | (4 | ) | 1,220 | ||||
Exercise of stock options, issuance of other stock awards, and other | — | 1 | 1 | |||||
Balance at December 28, 2019 | 1,224 | (3 | ) | 1,221 |
December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||
(in millions, except per share data) | |||||||||||
Basic Earnings Per Common Share: | |||||||||||
Net income/(loss) attributable to common shareholders | $ | 1,935 | $ | (10,192 | ) | $ | 10,941 | ||||
Weighted average shares of common stock outstanding | 1,221 | 1,219 | 1,218 | ||||||||
Net earnings/(loss) | $ | 1.59 | $ | (8.36 | ) | $ | 8.98 | ||||
Diluted Earnings Per Common Share: | |||||||||||
Net income/(loss) attributable to common shareholders | $ | 1,935 | $ | (10,192 | ) | $ | 10,941 | ||||
Weighted average shares of common stock outstanding | 1,221 | 1,219 | 1,218 | ||||||||
Effect of dilutive equity awards | 3 | — | 10 | ||||||||
Weighted average shares of common stock outstanding, including dilutive effect | 1,224 | 1,219 | 1,228 | ||||||||
Net earnings/(loss) | $ | 1.58 | $ | (8.36 | ) | $ | 8.91 |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | |||||||||
(in millions, except per share amounts) | |||||||||||
Basic Earnings Per Common Share: | |||||||||||
Net income/(loss) attributable to common shareholders | $ | 3,452 | $ | (266 | ) | $ | (63 | ) | |||
Weighted average shares of common stock outstanding | 1,217 | 786 | 377 | ||||||||
Net earnings/(loss) | $ | 2.84 | $ | (0.34 | ) | $ | (0.17 | ) | |||
Diluted Earnings Per Common Share: | |||||||||||
Net income/(loss) attributable to common shareholders | $ | 3,452 | $ | (266 | ) | $ | (63 | ) | |||
Weighted average shares of common stock outstanding | 1,217 | 786 | 377 | ||||||||
Effect of dilutive securities: | |||||||||||
Equity awards | 9 | — | — | ||||||||
Weighted average shares of common stock outstanding, including dilutive effect | 1,226 | 786 | 377 | ||||||||
Net earnings/(loss) | $ | 2.81 | $ | (0.34 | ) | $ | (0.17 | ) |
December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||
Net sales: | |||||||||||
United States | $ | 17,756 | $ | 18,122 | $ | 18,230 | |||||
Canada | 1,882 | 2,173 | 2,177 | ||||||||
EMEA | 2,551 | 2,718 | 2,585 | ||||||||
Rest of World | 2,788 | 3,255 | 3,084 | ||||||||
Total net sales | $ | 24,977 | $ | 26,268 | $ | 26,076 |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | |||||||||
Net sales: | |||||||||||
United States | $ | 18,641 | $ | 10,943 | $ | 3,615 | |||||
Canada | 2,309 | 1,437 | 631 | ||||||||
Europe | 2,366 | 2,656 | 3,233 | ||||||||
Rest of World | 3,171 | 3,302 | 3,443 | ||||||||
Total net sales | $ | 26,487 | $ | 18,338 | $ | 10,922 |
December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||
Segment Adjusted EBITDA: | |||||||||||
United States | $ | 4,809 | $ | 5,218 | $ | 5,873 | |||||
Canada | 487 | 608 | 636 | ||||||||
EMEA | 661 | 724 | 673 | ||||||||
Rest of World | 363 | 635 | 590 | ||||||||
General corporate expenses | (256 | ) | (161 | ) | (108 | ) | |||||
Depreciation and amortization (excluding integration and restructuring expenses) | (985 | ) | (919 | ) | (907 | ) | |||||
Integration and restructuring expenses | (102 | ) | (297 | ) | (583 | ) | |||||
Deal costs | (19 | ) | (23 | ) | — | ||||||
Unrealized gains/(losses) on commodity hedges | 57 | (21 | ) | (19 | ) | ||||||
Impairment losses | (1,899 | ) | (15,936 | ) | (49 | ) | |||||
Equity award compensation expense (excluding integration and restructuring expenses) | (46 | ) | (33 | ) | (49 | ) | |||||
Operating income | 3,070 | (10,205 | ) | 6,057 | |||||||
Interest expense | 1,361 | 1,284 | 1,234 | ||||||||
Other expense/(income) | (952 | ) | (168 | ) | (627 | ) | |||||
Income/(loss) before income taxes | $ | 2,661 | $ | (11,321 | ) | $ | 5,450 |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | |||||||||
(in millions) | |||||||||||
Segment Adjusted EBITDA: | |||||||||||
United States | $ | 5,862 | $ | 4,690 | $ | 4,421 | |||||
Canada | 642 | 541 | 615 | ||||||||
Europe | 781 | 938 | 939 | ||||||||
Rest of World | 657 | 742 | 732 | ||||||||
General corporate expenses | (164 | ) | (172 | ) | (181 | ) | |||||
Depreciation and amortization (excluding integration and restructuring expenses) | (536 | ) | (779 | ) | (924 | ) | |||||
Integration and restructuring expenses | (1,012 | ) | (1,117 | ) | (743 | ) | |||||
Merger costs | (30 | ) | (194 | ) | (68 | ) | |||||
Amortization of inventory step-up | — | (347 | ) | — | |||||||
Unrealized gains/(losses) on commodity hedges | 38 | 41 | (79 | ) | |||||||
Impairment losses | (53 | ) | (58 | ) | (221 | ) | |||||
Gains/(losses) on sale of business | — | 21 | — | ||||||||
Nonmonetary currency devaluation | (4 | ) | (57 | ) | — | ||||||
Equity award compensation expense (excluding integration and restructuring expenses) | (39 | ) | (61 | ) | (108 | ) | |||||
Other pro forma adjustments | — | (1,549 | ) | (2,815 | ) | ||||||
Operating income | 6,142 | 2,639 | 1,568 | ||||||||
Interest expense | 1,134 | 1,321 | 686 | ||||||||
Other expense/(income), net | (15 | ) | 305 | 79 | |||||||
Income/(loss) before income taxes | $ | 5,023 | $ | 1,013 | $ | 803 |
December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||
Depreciation and amortization expense: | |||||||||||
United States | $ | 609 | $ | 626 | $ | 658 | |||||
Canada | 35 | 39 | 48 | ||||||||
EMEA | 107 | 102 | 99 | ||||||||
Rest of World | 124 | 119 | 98 | ||||||||
General corporate expenses | 119 | 97 | 128 | ||||||||
Total depreciation and amortization expense | $ | 994 | $ | 983 | $ | 1,031 |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | |||||||||
Depreciation and amortization expense: | |||||||||||
United States | $ | 966 | $ | 484 | $ | 191 | |||||
Canada | 56 | 36 | 83 | ||||||||
Europe | 84 | 86 | 124 | ||||||||
Rest of World | 87 | 85 | 100 | ||||||||
General corporate expenses | 144 | 49 | 32 | ||||||||
Total depreciation and amortization expense | $ | 1,337 | $ | 740 | $ | 530 |
December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||
Capital expenditures: | |||||||||||
United States | $ | 393 | $ | 388 | $ | 764 | |||||
Canada | 27 | 21 | 42 | ||||||||
EMEA | 134 | 124 | 127 | ||||||||
Rest of World | 149 | 236 | 184 | ||||||||
General corporate expenses | 65 | 57 | 77 | ||||||||
Total capital expenditures | $ | 768 | $ | 826 | $ | 1,194 |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | |||||||||
Capital expenditures: | |||||||||||
United States | $ | 843 | $ | 377 | $ | 146 | |||||
Canada | 30 | 19 | 2 | ||||||||
Europe | 109 | 106 | 102 | ||||||||
Rest of World | 102 | 99 | 86 | ||||||||
General corporate expenses | 163 | 47 | 63 | ||||||||
Total capital expenditures | $ | 1,247 | $ | 648 | $ | 399 |
December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||
Condiments and sauces | $ | 6,406 | $ | 6,752 | $ | 6,429 | |||||
Cheese and dairy | 4,890 | 5,287 | 5,409 | ||||||||
Ambient foods | 2,475 | 2,576 | 2,564 | ||||||||
Meats and seafood | 2,406 | 2,505 | 2,567 | ||||||||
Frozen and chilled foods | 2,371 | 2,548 | 2,578 | ||||||||
Refreshment beverages | 1,504 | 1,507 | 1,506 | ||||||||
Coffee | 1,271 | 1,438 | 1,422 | ||||||||
Infant and nutrition | 512 | 756 | 755 | ||||||||
Desserts, toppings and baking | 1,032 | 1,038 | 1,033 | ||||||||
Nuts and salted snacks | 966 | 967 | 970 | ||||||||
Other | 1,144 | 894 | 843 | ||||||||
Total net sales | $ | 24,977 | $ | 26,268 | $ | 26,076 |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | |||||||||
Condiments and sauces | $ | 6,781 | $ | 5,877 | $ | 5,502 | |||||
Cheese and dairy | 5,661 | 2,795 | — | ||||||||
Ambient meals | 2,283 | 1,859 | 1,543 | ||||||||
Frozen and chilled meals | 2,251 | 2,179 | 1,975 | ||||||||
Meats and seafood | 2,710 | 1,480 | 199 | ||||||||
Refreshment beverages | 1,529 | 665 | — | ||||||||
Coffee | 1,496 | 710 | — | ||||||||
Infant and nutrition | 762 | 902 | 1,116 | ||||||||
Desserts, toppings and baking | 980 | 521 | — | ||||||||
Nuts and salted snacks | 1,051 | 562 | — | ||||||||
Other | 983 | 788 | 587 | ||||||||
Total net sales | $ | 26,487 | $ | 18,338 | $ | 10,922 |
December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||
Net sales: | |||||||||||
United States | $ | 17,844 | $ | 18,218 | $ | 18,324 | |||||
Canada | 1,882 | 2,173 | 2,177 | ||||||||
United Kingdom | 1,007 | 1,071 | 1,018 | ||||||||
Other | 4,244 | 4,806 | 4,557 | ||||||||
Total net sales | $ | 24,977 | $ | 26,268 | $ | 26,076 |
December 31, 2016 (52 weeks) | January 3, 2016 (53 weeks) | December 28, 2014 (52 weeks) | |||||||||
Net sales: | |||||||||||
United States | $ | 18,641 | $ | 10,943 | $ | 3,615 | |||||
Canada | 2,309 | 1,437 | 631 | ||||||||
United Kingdom | 1,055 | 1,334 | 1,549 | ||||||||
Other | 4,482 | 4,624 | 5,127 | ||||||||
Total net sales | $ | 26,487 | $ | 18,338 | $ | 10,922 |
December 28, 2019 | December 29, 2018 | ||||||
Long-lived assets: | |||||||
United States | $ | 5,004 | $ | 5,103 | |||
Other | 2,051 | 1,975 | |||||
Total long-lived assets | $ | 7,055 | $ | 7,078 |
December 31, 2016 | January 3, 2016 | ||||||
Long-lived assets: | |||||||
United States | $ | 92,243 | $ | 92,881 | |||
United Kingdom | 5,669 | 6,756 | |||||
Canada | 6,172 | 6,021 | |||||
Other | 6,026 | 6,037 | |||||
Total long-lived assets | $ | 110,110 | $ | 111,695 |
December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||
Amortization of prior service costs/(credits) | $ | (306 | ) | $ | (311 | ) | $ | (328 | ) | ||
Net pension and postretirement non-service cost/(benefit)(a) | (172 | ) | (40 | ) | (308 | ) | |||||
Loss/(gain) on sale of business | (420 | ) | 15 | — | |||||||
Interest income | (36 | ) | (35 | ) | (43 | ) | |||||
Foreign exchange loss/(gain) | 10 | 166 | 13 | ||||||||
Other miscellaneous expense/(income) | (28 | ) | 37 | 39 | |||||||
Other expense/(income) | $ | (952 | ) | $ | (168 | ) | $ | (627 | ) |
(a) | Excludes amortization of prior service costs/(credits). |
2016 Quarters | |||||||||||||||
First | Second | Third | Fourth | ||||||||||||
(in millions, except per share data) | |||||||||||||||
Net sales | $ | 6,570 | $ | 6,793 | $ | 6,267 | $ | 6,857 | |||||||
Gross profit | 2,378 | 2,531 | 2,218 | 2,459 | |||||||||||
Net income/(loss) | 900 | 955 | 843 | 944 | |||||||||||
Net income/(loss) attributable to Kraft Heinz | 896 | 950 | 842 | 944 | |||||||||||
Net income/(loss) attributable to common shareholders | 896 | 770 | 842 | 944 | |||||||||||
Per share data applicable to common shareholders: | |||||||||||||||
Basic earnings/(loss) | 0.74 | 0.63 | 0.69 | 0.78 | |||||||||||
Diluted earnings/(loss) | 0.73 | 0.63 | 0.69 | 0.77 |
2015 Quarters | 2019 Quarters | |||||||||||||||||||||||||||||
First | Second | Third | Fourth | Fourth | Third | Second | First | |||||||||||||||||||||||
(in millions, except per share data) | (in millions, except per share data) | |||||||||||||||||||||||||||||
Net sales | $ | 2,478 | $ | 2,616 | $ | 6,120 | $ | 7,124 | $ | 6,536 | $ | 6,076 | $ | 6,406 | $ | 5,959 | ||||||||||||||
Gross profit | 847 | 882 | 1,628 | 2,404 | 2,107 | 1,947 | 2,082 | 2,011 | ||||||||||||||||||||||
Net income/(loss) | 279 | (160 | ) | (120 | ) | 648 | 183 | 898 | 448 | 404 | ||||||||||||||||||||
Net income/(loss) attributable to Kraft Heinz | 276 | (164 | ) | (123 | ) | 645 | ||||||||||||||||||||||||
Net income/(loss) attributable to common shareholders | 96 | (344 | ) | (303 | ) | 285 | 182 | 899 | 449 | 405 | ||||||||||||||||||||
Per share data applicable to common shareholders: | ||||||||||||||||||||||||||||||
Basic earnings/(loss) | 0.26 | (0.91 | ) | (0.27 | ) | 0.23 | 0.15 | 0.74 | 0.37 | 0.33 | ||||||||||||||||||||
Diluted earnings/(loss) | 0.24 | (0.91 | ) | (0.27 | ) | 0.23 | 0.15 | 0.74 | 0.37 | 0.33 |
2018 Quarters | |||||||||||||||
Fourth | Third | Second | First | ||||||||||||
(in millions, except per share data) | |||||||||||||||
Net sales | $ | 6,891 | $ | 6,383 | $ | 6,690 | $ | 6,304 | |||||||
Gross profit | 2,216 | 2,094 | 2,347 | 2,264 | |||||||||||
Net income/(loss) | (12,628 | ) | 618 | 753 | 1,003 | ||||||||||
Net income/(loss) attributable to common shareholders | (12,568 | ) | 619 | 754 | 1,003 | ||||||||||
Per share data applicable to common shareholders: | |||||||||||||||
Basic earnings/(loss) | (10.30 | ) | 0.51 | 0.62 | 0.82 | ||||||||||
Diluted earnings/(loss) | (10.30 | ) | 0.50 | 0.62 | 0.82 |
Parent Guarantor | Subsidiary Issuer | Non-Guarantor Subsidiaries | Eliminations | Consolidated | Parent Guarantor | Subsidiary Issuer | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||||||||||||||
Net sales | $ | — | $ | 17,809 | $ | 9,310 | $ | (632 | ) | $ | 26,487 | $ | — | $ | 16,852 | $ | 8,588 | $ | (463 | ) | $ | 24,977 | ||||||||||||||||
Cost of products sold | — | 11,156 | 6,377 | (632 | ) | 16,901 | — | 11,042 | 6,251 | (463 | ) | 16,830 | ||||||||||||||||||||||||||
Gross profit | — | 6,653 | 2,933 | — | 9,586 | — | 5,810 | 2,337 | — | 8,147 | ||||||||||||||||||||||||||||
Selling, general and administrative expenses, excluding impairment losses | — | 798 | 2,380 | — | 3,178 | |||||||||||||||||||||||||||||||||
Goodwill impairment losses | — | — | 1,197 | — | 1,197 | |||||||||||||||||||||||||||||||||
Intangible asset impairment losses | — | — | 702 | — | 702 | |||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | — | 970 | 2,474 | — | 3,444 | — | 798 | 4,279 | — | 5,077 | ||||||||||||||||||||||||||||
Intercompany service fees and other recharges | — | 4,624 | (4,624 | ) | — | — | — | 3,377 | (3,377 | ) | — | — | ||||||||||||||||||||||||||
Operating income | — | 1,059 | 5,083 | — | 6,142 | |||||||||||||||||||||||||||||||||
Operating income/(loss) | — | 1,635 | 1,435 | — | 3,070 | |||||||||||||||||||||||||||||||||
Interest expense | — | 1,076 | 58 | — | 1,134 | — | 1,283 | 78 | — | 1,361 | ||||||||||||||||||||||||||||
Other expense/(income), net | — | 144 | (159 | ) | — | (15 | ) | |||||||||||||||||||||||||||||||
Other expense/(income) | — | (128 | ) | (824 | ) | — | (952 | ) | ||||||||||||||||||||||||||||||
Income/(loss) before income taxes | — | (161 | ) | 5,184 | — | 5,023 | — | 480 | 2,181 | — | 2,661 | |||||||||||||||||||||||||||
Provision for/(benefit from) income taxes | — | (372 | ) | 1,753 | — | 1,381 | — | 1 | 727 | — | 728 | |||||||||||||||||||||||||||
Equity in earnings of subsidiaries | 3,632 | 3,421 | — | (7,053 | ) | — | ||||||||||||||||||||||||||||||||
Equity in earnings/(losses) of subsidiaries | 1,935 | 1,456 | — | (3,391 | ) | — | ||||||||||||||||||||||||||||||||
Net income/(loss) | 3,632 | 3,632 | 3,431 | (7,053 | ) | 3,642 | 1,935 | 1,935 | 1,454 | (3,391 | ) | 1,933 | ||||||||||||||||||||||||||
Net income/(loss) attributable to noncontrolling interest | — | — | 10 | — | 10 | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||||||||||||
Net income/(loss) excluding noncontrolling interest | $ | 3,632 | $ | 3,632 | $ | 3,421 | $ | (7,053 | ) | $ | 3,632 | $ | 1,935 | $ | 1,935 | $ | 1,456 | $ | (3,391 | ) | $ | 1,935 | ||||||||||||||||
Comprehensive income/(loss) excluding noncontrolling interest | $ | 2,675 | $ | 2,675 | $ | 5,717 | $ | (8,392 | ) | $ | 2,675 | $ | 1,856 | $ | 1,856 | $ | 1,379 | $ | (3,235 | ) | $ | 1,856 |
Parent Guarantor | Subsidiary Issuer | Non-Guarantor Subsidiaries | Eliminations | Consolidated | Parent Guarantor | Subsidiary Issuer | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||||||||||||||
Net sales | $ | — | $ | 10,580 | $ | 8,145 | $ | (387 | ) | $ | 18,338 | $ | — | $ | 17,317 | $ | 9,481 | $ | (530 | ) | $ | 26,268 | ||||||||||||||||
Cost of products sold | — | 7,298 | 5,666 | (387 | ) | 12,577 | — | 11,290 | 6,587 | (530 | ) | 17,347 | ||||||||||||||||||||||||||
Gross profit | — | 3,282 | 2,479 | — | 5,761 | — | 6,027 | 2,894 | — | 8,921 | ||||||||||||||||||||||||||||
Selling, general and administrative expenses, excluding impairment losses | — | 803 | 2,387 | — | 3,190 | |||||||||||||||||||||||||||||||||
Goodwill impairment losses | — | — | 7,008 | — | 7,008 | |||||||||||||||||||||||||||||||||
Intangible asset impairment losses | — | — | 8,928 | — | 8,928 | |||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | — | 1,449 | 1,673 | — | 3,122 | — | 803 | 18,323 | — | 19,126 | ||||||||||||||||||||||||||||
Intercompany service fees and other recharges | — | 929 | (929 | ) | — | — | — | 3,865 | (3,865 | ) | — | — | ||||||||||||||||||||||||||
Operating income | — | 904 | 1,735 | — | 2,639 | |||||||||||||||||||||||||||||||||
Operating income/(loss) | — | 1,359 | (11,564 | ) | — | (10,205 | ) | |||||||||||||||||||||||||||||||
Interest expense | — | 1,221 | 100 | — | 1,321 | — | 1,212 | 72 | — | 1,284 | ||||||||||||||||||||||||||||
Other expense/(income), net | — | 140 | 165 | — | 305 | |||||||||||||||||||||||||||||||||
Other expense/(income) | — | (359 | ) | 191 | — | (168 | ) | |||||||||||||||||||||||||||||||
Income/(loss) before income taxes | — | (457 | ) | 1,470 | — | 1,013 | — | 506 | (11,827 | ) | — | (11,321 | ) | |||||||||||||||||||||||||
Provision for/(benefit from) income taxes | — | (192 | ) | 558 | — | 366 | — | 112 | (1,179 | ) | — | (1,067 | ) | |||||||||||||||||||||||||
Equity in earnings of subsidiaries | 634 | 899 | — | (1,533 | ) | — | ||||||||||||||||||||||||||||||||
Equity in earnings/(losses) of subsidiaries | (10,192 | ) | (10,586 | ) | — | 20,778 | — | |||||||||||||||||||||||||||||||
Net income/(loss) | 634 | 634 | 912 | (1,533 | ) | 647 | (10,192 | ) | (10,192 | ) | (10,648 | ) | 20,778 | (10,254 | ) | |||||||||||||||||||||||
Net income/(loss) attributable to noncontrolling interest | — | — | 13 | — | 13 | — | — | (62 | ) | — | (62 | ) | ||||||||||||||||||||||||||
Net income/(loss) excluding noncontrolling interest | $ | 634 | $ | 634 | $ | 899 | $ | (1,533 | ) | $ | 634 | $ | (10,192 | ) | $ | (10,192 | ) | $ | (10,586 | ) | $ | 20,778 | $ | (10,192 | ) | |||||||||||||
Comprehensive income/(loss) excluding noncontrolling interest | $ | 537 | $ | 537 | $ | (734 | ) | $ | 197 | $ | 537 | $ | (11,081 | ) | $ | (11,081 | ) | $ | (11,550 | ) | $ | 22,631 | $ | (11,081 | ) |
Parent Guarantor | Subsidiary Issuer | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 17,397 | $ | 9,247 | $ | (568 | ) | $ | 26,076 | ||||||||
Cost of products sold | — | 11,147 | 6,464 | (568 | ) | 17,043 | |||||||||||||
Gross profit | — | 6,250 | 2,783 | — | 9,033 | ||||||||||||||
Selling, general and administrative expenses, excluding impairment losses | — | 695 | 2,232 | — | 2,927 | ||||||||||||||
Goodwill impairment losses | — | — | — | — | — | ||||||||||||||
Intangible asset impairment losses | — | — | 49 | — | 49 | ||||||||||||||
Selling, general and administrative expenses | — | 695 | 2,281 | — | 2,976 | ||||||||||||||
Intercompany service fees and other recharges | — | 4,307 | (4,307 | ) | — | — | |||||||||||||
Operating income/(loss) | — | 1,248 | 4,809 | — | 6,057 | ||||||||||||||
Interest expense | — | 1,189 | 45 | — | 1,234 | ||||||||||||||
Other expense/(income) | — | (535 | ) | (92 | ) | — | (627 | ) | |||||||||||
Income/(loss) before income taxes | — | 594 | 4,856 | — | 5,450 | ||||||||||||||
Provision for/(benefit from) income taxes | — | (243 | ) | (5,239 | ) | — | (5,482 | ) | |||||||||||
Equity in earnings/(losses) of subsidiaries | 10,941 | 10,104 | — | (21,045 | ) | — | |||||||||||||
Net income/(loss) | 10,941 | 10,941 | 10,095 | (21,045 | ) | 10,932 | |||||||||||||
Net income/(loss) attributable to noncontrolling interest | — | — | (9 | ) | — | (9 | ) | ||||||||||||
Net income/(loss) excluding noncontrolling interest | $ | 10,941 | $ | 10,941 | $ | 10,104 | $ | (21,045 | ) | $ | 10,941 | ||||||||
Comprehensive income/(loss) excluding noncontrolling interest | $ | 11,516 | $ | 11,516 | $ | 7,711 | $ | (19,227 | ) | $ | 11,516 |
Parent Guarantor | Subsidiary Issuer | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 3,740 | $ | 7,325 | $ | (143 | ) | $ | 10,922 | ||||||||
Cost of products sold | — | 2,663 | 5,125 | (143 | ) | 7,645 | |||||||||||||
Gross profit | — | 1,077 | 2,200 | — | 3,277 | ||||||||||||||
Selling, general and administrative expenses | — | 633 | 1,076 | — | 1,709 | ||||||||||||||
Intercompany service fees and other recharges | — | (23 | ) | 23 | — | — | |||||||||||||
Operating income | — | 467 | 1,101 | — | 1,568 | ||||||||||||||
Interest expense | — | 556 | 130 | — | 686 | ||||||||||||||
Other expense/(income), net | — | 104 | (25 | ) | — | 79 | |||||||||||||
Income/(loss) before income taxes | — | (193 | ) | 996 | — | 803 | |||||||||||||
Provision for/(benefit from) income taxes | — | (156 | ) | 287 | — | 131 | |||||||||||||
Equity in earnings of subsidiaries | 657 | 694 | — | (1,351 | ) | — | |||||||||||||
Net income/(loss) | 657 | 657 | 709 | (1,351 | ) | 672 | |||||||||||||
Net income/(loss) attributable to noncontrolling interest | — | — | 15 | — | 15 | ||||||||||||||
Net income/(loss) excluding noncontrolling interest | $ | 657 | $ | 657 | $ | 694 | $ | (1,351 | ) | $ | 657 | ||||||||
Comprehensive income/(loss) excluding noncontrolling interest | $ | (149 | ) | $ | (149 | ) | $ | (180 | ) | $ | 329 | $ | (149 | ) |
Parent Guarantor | Subsidiary Issuer | Non-Guarantor Subsidiaries | Eliminations | Consolidated | Parent Guarantor | Subsidiary Issuer | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 2,830 | $ | 1,374 | $ | — | $ | 4,204 | $ | — | $ | 1,404 | $ | 875 | $ | — | $ | 2,279 | ||||||||||||||||||
Trade receivables | — | 12 | 757 | — | 769 | |||||||||||||||||||||||||||||||||
Trade receivables, net | — | 836 | 1,137 | — | 1,973 | |||||||||||||||||||||||||||||||||
Receivables due from affiliates | — | 712 | 111 | (823 | ) | — | — | 633 | 793 | (1,426 | ) | — | ||||||||||||||||||||||||||
Dividends due from affiliates | 39 | — | — | (39 | ) | — | ||||||||||||||||||||||||||||||||
Sold receivables | — | — | 129 | — | 129 | |||||||||||||||||||||||||||||||||
Income taxes receivable | — | 714 | 160 | (701 | ) | 173 | ||||||||||||||||||||||||||||||||
Inventories | — | 1,759 | 925 | — | 2,684 | — | 1,832 | 889 | — | 2,721 | ||||||||||||||||||||||||||||
Short-term lending due from affiliates | — | 1,722 | 2,956 | (4,678 | ) | — | — | 1,399 | 4,645 | (6,044 | ) | — | ||||||||||||||||||||||||||
Prepaid expenses | — | 193 | 191 | — | 384 | |||||||||||||||||||||||||||||||||
Other current assets | — | 2,229 | 447 | (1,709 | ) | 967 | — | 269 | 176 | — | 445 | |||||||||||||||||||||||||||
Assets held for sale | — | 13 | 109 | — | 122 | |||||||||||||||||||||||||||||||||
Total current assets | 39 | 9,264 | 6,699 | (7,249 | ) | 8,753 | — | 7,293 | 8,975 | (8,171 | ) | 8,097 | ||||||||||||||||||||||||||
Property, plant and equipment, net | — | 4,447 | 2,241 | — | 6,688 | — | 4,420 | 2,635 | — | 7,055 | ||||||||||||||||||||||||||||
Goodwill | — | 11,067 | 33,058 | — | 44,125 | — | 11,066 | 24,480 | — | 35,546 | ||||||||||||||||||||||||||||
Investments in subsidiaries | 57,358 | 70,877 | — | (128,235 | ) | — | 51,623 | 66,492 | — | (118,115 | ) | — | ||||||||||||||||||||||||||
Intangible assets, net | — | 3,364 | 55,933 | — | 59,297 | — | 2,860 | 45,792 | — | 48,652 | ||||||||||||||||||||||||||||
Long-term lending due from affiliates | — | 1,700 | 2,000 | (3,700 | ) | — | — | 207 | 2,000 | (2,207 | ) | — | ||||||||||||||||||||||||||
Other assets | — | 501 | 1,116 | — | 1,617 | |||||||||||||||||||||||||||||||||
Other non-current assets | — | 850 | 1,250 | — | 2,100 | |||||||||||||||||||||||||||||||||
TOTAL ASSETS | $ | 57,397 | $ | 101,220 | $ | 101,047 | $ | (139,184 | ) | $ | 120,480 | $ | 51,623 | $ | 93,188 | $ | 85,132 | $ | (128,493 | ) | $ | 101,450 | ||||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||||||||
Commercial paper and other short-term debt | $ | — | $ | 642 | $ | 3 | $ | — | $ | 645 | $ | — | $ | 5 | $ | 1 | $ | — | $ | 6 | ||||||||||||||||||
Current portion of long-term debt | — | 2,032 | 14 | — | 2,046 | — | 626 | 396 | — | 1,022 | ||||||||||||||||||||||||||||
Short-term lending due to affiliates | — | 2,956 | 1,722 | (4,678 | ) | — | — | 4,645 | 1,399 | (6,044 | ) | — | ||||||||||||||||||||||||||
Trade payables | — | 2,376 | 1,620 | — | 3,996 | — | 2,445 | 1,558 | — | 4,003 | ||||||||||||||||||||||||||||
Payables due to affiliates | — | 111 | 712 | (823 | ) | — | — | 793 | 633 | (1,426 | ) | — | ||||||||||||||||||||||||||
Accrued marketing | — | 277 | 472 | — | 749 | — | 249 | 398 | — | 647 | ||||||||||||||||||||||||||||
Accrued postemployment costs | — | 144 | 13 | — | 157 | |||||||||||||||||||||||||||||||||
Income taxes payable | — | — | 1,964 | (1,709 | ) | 255 | ||||||||||||||||||||||||||||||||
Interest payable | — | 401 | 14 | — | 415 | — | 372 | 12 | — | 384 | ||||||||||||||||||||||||||||
Dividends payable | 39 | — | — | — | 39 | |||||||||||||||||||||||||||||||||
Dividends due to affiliates | — | 39 | — | (39 | ) | — | ||||||||||||||||||||||||||||||||
Other current liabilities | — | 588 | 611 | — | 1,199 | — | 266 | 2,239 | (701 | ) | 1,804 | |||||||||||||||||||||||||||
Liabilities held for sale | — | — | 9 | — | 9 | |||||||||||||||||||||||||||||||||
Total current liabilities | 39 | 9,566 | 7,145 | (7,249 | ) | 9,501 | — | 9,401 | 6,645 | (8,171 | ) | 7,875 | ||||||||||||||||||||||||||
Long-term debt | — | 28,736 | 977 | — | 29,713 | — | 27,912 | 304 | — | 28,216 | ||||||||||||||||||||||||||||
Long-term borrowings due to affiliates | — | 2,000 | 1,902 | (3,902 | ) | — | — | 2,000 | 207 | (2,207 | ) | — | ||||||||||||||||||||||||||
Deferred income taxes | — | 1,382 | 19,466 | — | 20,848 | — | 1,307 | 10,571 | — | 11,878 | ||||||||||||||||||||||||||||
Accrued postemployment costs | — | 1,754 | 284 | — | 2,038 | — | 34 | 239 | — | 273 | ||||||||||||||||||||||||||||
Other liabilities | — | 424 | 382 | — | 806 | |||||||||||||||||||||||||||||||||
Other non-current liabilities | — | 911 | 548 | — | 1,459 | |||||||||||||||||||||||||||||||||
TOTAL LIABILITIES | 39 | 43,862 | 30,156 | (11,151 | ) | 62,906 | — | 41,565 | 18,514 | (10,378 | ) | 49,701 | ||||||||||||||||||||||||||
Redeemable noncontrolling interest | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Total shareholders’ equity | 57,358 | 57,358 | 70,675 | (128,033 | ) | 57,358 | 51,623 | 51,623 | 66,492 | (118,115 | ) | 51,623 | ||||||||||||||||||||||||||
Noncontrolling interest | — | — | 216 | — | 216 | — | — | 126 | — | 126 | ||||||||||||||||||||||||||||
TOTAL EQUITY | 57,358 | 57,358 | 70,891 | (128,033 | ) | 57,574 | 51,623 | 51,623 | 66,618 | (118,115 | ) | 51,749 | ||||||||||||||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 57,397 | $ | 101,220 | $ | 101,047 | $ | (139,184 | ) | $ | 120,480 | $ | 51,623 | $ | 93,188 | $ | 85,132 | $ | (128,493 | ) | $ | 101,450 |
Parent Guarantor | Subsidiary Issuer | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 202 | $ | 928 | $ | — | $ | 1,130 | |||||||||
Trade receivables, net | — | 933 | 1,196 | — | 2,129 | ||||||||||||||
Receivables due from affiliates | — | 870 | 341 | (1,211 | ) | — | |||||||||||||
Income taxes receivable | — | 701 | 9 | (558 | ) | 152 | |||||||||||||
Inventories | — | 1,783 | 884 | — | 2,667 | ||||||||||||||
Short-term lending due from affiliates | — | 1,787 | 3,753 | (5,540 | ) | — | |||||||||||||
Prepaid expenses | — | 198 | 202 | — | 400 | ||||||||||||||
Other current assets | — | 776 | 445 | — | 1,221 | ||||||||||||||
Assets held for sale | — | 75 | 1,301 | — | 1,376 | ||||||||||||||
Total current assets | — | 7,325 | 9,059 | (7,309 | ) | 9,075 | |||||||||||||
Property, plant and equipment, net | — | 4,524 | 2,554 | — | 7,078 | ||||||||||||||
Goodwill | — | 11,067 | 25,436 | — | 36,503 | ||||||||||||||
Investments in subsidiaries | 51,657 | 67,867 | — | (119,524 | ) | — | |||||||||||||
Intangible assets, net | — | 3,010 | 46,458 | — | 49,468 | ||||||||||||||
Long-term lending due from affiliates | — | — | 2,000 | (2,000 | ) | — | |||||||||||||
Other non-current assets | — | 316 | 1,021 | — | 1,337 | ||||||||||||||
TOTAL ASSETS | $ | 51,657 | $ | 94,109 | $ | 86,528 | $ | (128,833 | ) | $ | 103,461 | ||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Commercial paper and other short-term debt | $ | — | $ | — | $ | 21 | $ | — | $ | 21 | |||||||||
Current portion of long-term debt | — | 363 | 14 | — | 377 | ||||||||||||||
Short-term lending due to affiliates | — | 3,753 | 1,787 | (5,540 | ) | — | |||||||||||||
Trade payables | — | 2,563 | 1,590 | — | 4,153 | ||||||||||||||
Payables due to affiliates | — | 341 | 870 | (1,211 | ) | — | |||||||||||||
Accrued marketing | — | 282 | 440 | — | 722 | ||||||||||||||
Interest payable | — | 394 | 14 | — | 408 | ||||||||||||||
Other current liabilities | — | 888 | 1,437 | (558 | ) | 1,767 | |||||||||||||
Liabilities held for sale | — | — | 55 | — | 55 | ||||||||||||||
Total current liabilities | — | 8,584 | 6,228 | (7,309 | ) | 7,503 | |||||||||||||
Long-term debt | — | 29,872 | 898 | — | 30,770 | ||||||||||||||
Long-term borrowings due to affiliates | — | 2,000 | 12 | (2,012 | ) | — | |||||||||||||
Deferred income taxes | — | 1,314 | 10,888 | — | 12,202 | ||||||||||||||
Accrued postemployment costs | — | 89 | 217 | — | 306 | ||||||||||||||
Other non-current liabilities | — | 593 | 309 | — | 902 | ||||||||||||||
TOTAL LIABILITIES | — | 42,452 | 18,552 | (9,321 | ) | 51,683 | |||||||||||||
Redeemable noncontrolling interest | — | — | 3 | — | 3 | ||||||||||||||
Total shareholders’ equity | 51,657 | 51,657 | 67,855 | (119,512 | ) | 51,657 | |||||||||||||
Noncontrolling interest | — | — | 118 | — | 118 | ||||||||||||||
TOTAL EQUITY | 51,657 | 51,657 | 67,973 | (119,512 | ) | 51,775 | |||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 51,657 | $ | 94,109 | $ | 86,528 | $ | (128,833 | ) | $ | 103,461 |
Parent Guarantor | Subsidiary Issuer | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 3,189 | $ | 1,648 | $ | — | $ | 4,837 | |||||||||
Trade receivables | — | 62 | 809 | — | 871 | ||||||||||||||
Receivables due from affiliates | — | 555 | 319 | (874 | ) | — | |||||||||||||
Sold receivables | — | 554 | 29 | 583 | |||||||||||||||
Inventories | — | 1,741 | 877 | — | 2,618 | ||||||||||||||
Short-term lending due from affiliates | — | 3,657 | 4,353 | (8,010 | ) | — | |||||||||||||
Other current assets | — | 645 | 443 | (217 | ) | 871 | |||||||||||||
Total current assets | — | 10,403 | 8,478 | (9,101 | ) | 9,780 | |||||||||||||
Property, plant and equipment, net | — | 4,518 | 2,006 | — | 6,524 | ||||||||||||||
Goodwill | — | 10,976 | 32,075 | — | 43,051 | ||||||||||||||
Investments in subsidiaries | 66,005 | 73,105 | — | (139,110 | ) | — | |||||||||||||
Intangible assets, net | — | 3,838 | 58,282 | — | 62,120 | ||||||||||||||
Long-term lending due from affiliates | — | 1,700 | 2,000 | (3,700 | ) | — | |||||||||||||
Other assets | — | 534 | 964 | — | 1,498 | ||||||||||||||
TOTAL ASSETS | $ | 66,005 | $ | 105,074 | $ | 103,805 | $ | (151,911 | ) | $ | 122,973 | ||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Commercial paper and other short-term debt | $ | — | $ | — | $ | 4 | $ | — | $ | 4 | |||||||||
Current portion of long-term debt | — | 65 | 14 | — | 79 | ||||||||||||||
Short-term lending due to affiliates | — | 4,353 | 3,657 | (8,010 | ) | — | |||||||||||||
Trade payables | — | 1,612 | 1,232 | — | 2,844 | ||||||||||||||
Payables due to affiliates | — | 319 | 555 | (874 | ) | — | |||||||||||||
Accrued marketing | — | 359 | 497 | — | 856 | ||||||||||||||
Accrued postemployment costs | — | 316 | 12 | — | 328 | ||||||||||||||
Income taxes payable | — | 71 | 563 | (217 | ) | 417 | |||||||||||||
Interest payable | — | 386 | 15 | — | 401 | ||||||||||||||
Dividends payable | — | 762 | — | — | 762 | ||||||||||||||
Other current liabilities | — | 988 | 253 | — | 1,241 | ||||||||||||||
Total current liabilities | — | 9,231 | 6,802 | (9,101 | ) | 6,932 | |||||||||||||
Long-term debt | — | 24,143 | 1,008 | — | 25,151 | ||||||||||||||
Long-term borrowings due to affiliates | — | 2,000 | 1,905 | (3,905 | ) | — | |||||||||||||
Deferred income taxes | — | 1,278 | 20,219 | — | 21,497 | ||||||||||||||
Accrued postemployment costs | — | 2,147 | 258 | — | 2,405 | ||||||||||||||
Other liabilities | — | 270 | 482 | — | 752 | ||||||||||||||
TOTAL LIABILITIES | — | 39,069 | 30,674 | (13,006 | ) | 56,737 | |||||||||||||
Redeemable noncontrolling interest | — | — | 23 | — | 23 | ||||||||||||||
9.00% cumulative compounding preferred stock, Series A | 8,320 | — | — | — | 8,320 | ||||||||||||||
Total shareholders’ equity | 57,685 | 66,005 | 72,900 | (138,905 | ) | 57,685 | |||||||||||||
Noncontrolling interest | — | — | 208 | — | 208 | ||||||||||||||
TOTAL EQUITY | 57,685 | 66,005 | 73,108 | (138,905 | ) | 57,893 | |||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 66,005 | $ | 105,074 | $ | 103,805 | $ | (151,911 | ) | $ | 122,973 |
Parent Guarantor | Subsidiary Issuer | Non-Guarantor Subsidiaries | Eliminations | Consolidated | Parent Guarantor | Subsidiary Issuer | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||||||||||||||||||||
Net cash provided by/(used for) operating activities | $ | 3,097 | $ | 4,369 | $ | 884 | $ | (3,112 | ) | $ | 5,238 | $ | 1,953 | $ | 3,308 | $ | 244 | $ | (1,953 | ) | $ | 3,552 | ||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||||||||||||||||||||
Capital expenditures | — | (923 | ) | (324 | ) | — | (1,247 | ) | — | (365 | ) | (403 | ) | — | (768 | ) | ||||||||||||||||||||||
Proceeds from net investment hedges | — | 104 | (13 | ) | — | 91 | ||||||||||||||||||||||||||||||||
Payments to acquire business, net of cash acquired | — | (199 | ) | — | — | (199 | ) | |||||||||||||||||||||||||||||||
Net proceeds from/(payments on) intercompany lending activities | — | 690 | 37 | (727 | ) | — | — | 2,248 | 723 | (2,971 | ) | — | ||||||||||||||||||||||||||
Additional investments in subsidiaries | 55 | (10 | ) | — | (45 | ) | — | (20 | ) | (51 | ) | — | 71 | — | ||||||||||||||||||||||||
Return of capital | 8,987 | — | — | (8,987 | ) | — | ||||||||||||||||||||||||||||||||
Proceeds from net investment hedges | — | 604 | (14 | ) | — | 590 | ||||||||||||||||||||||||||||||||
Proceeds from sale of business, net of cash disposed | — | — | 1,875 | — | 1,875 | |||||||||||||||||||||||||||||||||
Other investing activities, net | — | 49 | (6 | ) | — | 43 | — | 52 | (39 | ) | — | 13 | ||||||||||||||||||||||||||
Net cash provided by/(used for) investing activities | 9,042 | (90 | ) | (306 | ) | (9,759 | ) | (1,113 | ) | (20 | ) | 2,289 | 2,142 | (2,900 | ) | 1,511 | ||||||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||||||||||||||||||||||||
Repayments of long-term debt | — | (72 | ) | (14 | ) | — | (86 | ) | — | (4,568 | ) | (227 | ) | — | (4,795 | ) | ||||||||||||||||||||||
Proceeds from issuance of long-term debt | — | 6,978 | 3 | — | 6,981 | — | 2,969 | (2 | ) | — | 2,967 | |||||||||||||||||||||||||||
Debt issuance costs | — | (53 | ) | — | — | (53 | ) | |||||||||||||||||||||||||||||||
Debt prepayment and extinguishment costs | — | (99 | ) | — | — | (99 | ) | |||||||||||||||||||||||||||||||
Proceeds from issuance of commercial paper | — | 6,680 | — | — | 6,680 | — | 557 | — | — | 557 | ||||||||||||||||||||||||||||
Repayments of commercial paper | — | (6,043 | ) | — | — | (6,043 | ) | — | (557 | ) | — | — | (557 | ) | ||||||||||||||||||||||||
Net proceeds from/(payments on) intercompany borrowing activities | — | (37 | ) | (690 | ) | 727 | — | — | (723 | ) | (2,248 | ) | 2,971 | — | ||||||||||||||||||||||||
Dividends paid-Series A Preferred Stock | (180 | ) | — | — | — | (180 | ) | |||||||||||||||||||||||||||||||
Dividends paid-common stock | (3,584 | ) | (3,764 | ) | (16 | ) | 3,780 | (3,584 | ) | |||||||||||||||||||||||||||||
Redemption of Series A Preferred Stock | (8,320 | ) | — | — | — | (8,320 | ) | |||||||||||||||||||||||||||||||
Dividends paid | (1,953 | ) | (1,953 | ) | — | 1,953 | (1,953 | ) | ||||||||||||||||||||||||||||||
Other intercompany capital stock transactions | — | (8,374 | ) | 10 | 8,364 | — | — | 20 | 51 | (71 | ) | — | ||||||||||||||||||||||||||
Other financing activities, net | (55 | ) | 47 | (8 | ) | — | (16 | ) | 20 | (41 | ) | (12 | ) | — | (33 | ) | ||||||||||||||||||||||
Net cash provided by/(used for) financing activities | (12,139 | ) | (4,638 | ) | (715 | ) | 12,871 | (4,621 | ) | (1,933 | ) | (4,395 | ) | (2,438 | ) | 4,853 | (3,913 | ) | ||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (137 | ) | — | (137 | ) | |||||||||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | — | — | (6 | ) | — | (6 | ) | |||||||||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash: | ||||||||||||||||||||||||||||||||||||||
Net increase/(decrease) | — | (359 | ) | (274 | ) | — | (633 | ) | — | 1,202 | (58 | ) | — | 1,144 | ||||||||||||||||||||||||
Balance at beginning of period | — | 3,189 | 1,648 | — | 4,837 | — | 202 | 934 | — | 1,136 | ||||||||||||||||||||||||||||
Balance at end of period | $ | — | $ | 2,830 | $ | 1,374 | $ | — | $ | 4,204 | $ | — | $ | 1,404 | $ | 876 | $ | — | $ | 2,280 |
Parent Guarantor | Subsidiary Issuer | Non-Guarantor Subsidiaries | Eliminations | Consolidated | Parent Guarantor | Subsidiary Issuer | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||||||||||||||||||||
Net cash provided by/(used for) operating activities | $ | 632 | $ | 1,227 | $ | 1,395 | $ | (787 | ) | $ | 2,467 | $ | 3,183 | $ | 1,928 | $ | 656 | $ | (3,193 | ) | $ | 2,574 | ||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||||||||||||||||||||
Cash receipts on sold receivables | — | — | 1,296 | — | 1,296 | |||||||||||||||||||||||||||||||||
Capital expenditures | — | (400 | ) | (248 | ) | — | (648 | ) | — | (339 | ) | (487 | ) | — | (826 | ) | ||||||||||||||||||||||
Payments to acquire business, net of cash acquired | — | (245 | ) | (3 | ) | — | (248 | ) | ||||||||||||||||||||||||||||||
Net proceeds from/(payments on) intercompany lending activities | — | 1,626 | 206 | (1,832 | ) | — | ||||||||||||||||||||||||||||||||
Additional investments in subsidiaries | — | (41 | ) | — | 41 | — | ||||||||||||||||||||||||||||||||
Proceeds from net investment hedges | — | 488 | — | — | 488 | — | 24 | — | — | 24 | ||||||||||||||||||||||||||||
Net proceeds from/(payments on) intercompany lending activities | — | 737 | (721 | ) | (16 | ) | — | |||||||||||||||||||||||||||||||
Payments to acquire Kraft Foods Group, Inc., net of cash acquired | — | (9,535 | ) | 67 | — | (9,468 | ) | |||||||||||||||||||||||||||||||
Additional investments in subsidiaries | (10,000 | ) | — | — | 10,000 | — | ||||||||||||||||||||||||||||||||
Return of capital | 1,570 | 5 | — | (1,575 | ) | — | 7 | — | — | (7 | ) | — | ||||||||||||||||||||||||||
Proceeds from sale of business, net of cash disposed | — | — | 18 | — | 18 | |||||||||||||||||||||||||||||||||
Other investing activities, net | — | (66 | ) | (10 | ) | — | (76 | ) | — | 7 | 17 | — | 24 | |||||||||||||||||||||||||
Net cash provided by/(used for) investing activities | (8,430 | ) | (8,771 | ) | (912 | ) | 8,409 | (9,704 | ) | 7 | 1,032 | 1,047 | (1,798 | ) | 288 | |||||||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||||||||||||||||||||||||
Repayments of long-term debt | — | (12,284 | ) | (30 | ) | — | (12,314 | ) | — | (2,550 | ) | (163 | ) | — | (2,713 | ) | ||||||||||||||||||||||
Proceeds from issuance of long-term debt | — | 14,032 | 802 | — | 14,834 | — | 2,990 | — | — | 2,990 | ||||||||||||||||||||||||||||
Debt issuance costs | — | (94 | ) | (4 | ) | — | (98 | ) | ||||||||||||||||||||||||||||||
Proceeds from issuance of commercial paper | — | 2,784 | — | — | 2,784 | |||||||||||||||||||||||||||||||||
Repayments of commercial paper | — | (3,213 | ) | — | — | (3,213 | ) | |||||||||||||||||||||||||||||||
Net proceeds from/(payments on) intercompany borrowing activities | — | 721 | (737 | ) | 16 | — | — | (206 | ) | (1,626 | ) | 1,832 | — | |||||||||||||||||||||||||
Proceeds from issuance of common stock to Sponsors | 10,000 | — | — | — | 10,000 | |||||||||||||||||||||||||||||||||
Dividends paid-Series A Preferred Stock | (900 | ) | — | — | — | (900 | ) | |||||||||||||||||||||||||||||||
Dividends paid-common stock | (1,302 | ) | (2,202 | ) | (155 | ) | 2,357 | (1,302 | ) | |||||||||||||||||||||||||||||
Dividends paid | (3,183 | ) | (3,183 | ) | (10 | ) | 3,193 | (3,183 | ) | |||||||||||||||||||||||||||||
Other intercompany capital stock transactions | — | 10,000 | (5 | ) | (9,995 | ) | — | — | (7 | ) | 41 | (34 | ) | — | ||||||||||||||||||||||||
Other financing activities, net | — | 19 | (56 | ) | — | (37 | ) | (7 | ) | (17 | ) | (4 | ) | — | (28 | ) | ||||||||||||||||||||||
Net cash provided by/(used for) financing activities | 7,798 | 10,192 | (185 | ) | (7,622 | ) | 10,183 | (3,190 | ) | (3,402 | ) | (1,762 | ) | 4,991 | (3,363 | ) | ||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (407 | ) | — | (407 | ) | |||||||||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | — | — | (132 | ) | — | (132 | ) | |||||||||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash: | ||||||||||||||||||||||||||||||||||||||
Net increase/(decrease) | — | 2,648 | (109 | ) | — | 2,539 | — | (442 | ) | (191 | ) | — | (633 | ) | ||||||||||||||||||||||||
Balance at beginning of period | — | 541 | 1,757 | — | 2,298 | — | 644 | 1,125 | — | 1,769 | ||||||||||||||||||||||||||||
Balance at end of period | $ | — | $ | 3,189 | $ | 1,648 | $ | — | $ | 4,837 | $ | — | $ | 202 | $ | 934 | $ | — | $ | 1,136 |
Parent Guarantor | Subsidiary Issuer | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||
Net cash provided by/(used for) operating activities | $ | 2,888 | $ | 1,497 | $ | (996 | ) | $ | (2,888 | ) | $ | 501 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||
Cash receipts on sold receivables | — | — | 2,286 | — | 2,286 | ||||||||||||||
Capital expenditures | — | (757 | ) | (437 | ) | — | (1,194 | ) | |||||||||||
Net proceeds from/(payments on) intercompany lending activities | — | 641 | (542 | ) | (99 | ) | — | ||||||||||||
Additional investments in subsidiaries | (21 | ) | — | — | 21 | — | |||||||||||||
Proceeds from net investment hedges | — | 6 | — | — | 6 | ||||||||||||||
Other investing activities, net | — | 56 | 23 | — | 79 | ||||||||||||||
Net cash provided by/(used for) investing activities | (21 | ) | (54 | ) | 1,330 | (78 | ) | 1,177 | |||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||
Repayments of long-term debt | — | (2,628 | ) | (13 | ) | — | (2,641 | ) | |||||||||||
Proceeds from issuance of long-term debt | — | 1,496 | — | — | 1,496 | ||||||||||||||
Proceeds from issuance of commercial paper | — | 6,043 | — | — | 6,043 | ||||||||||||||
Repayments of commercial paper | — | (6,249 | ) | — | — | (6,249 | ) | ||||||||||||
Net proceeds from/(payments on) intercompany borrowing activities | — | 542 | (641 | ) | 99 | — | |||||||||||||
Dividends paid-common stock | (2,888 | ) | (2,888 | ) | — | 2,888 | (2,888 | ) | |||||||||||
Other intercompany capital stock transactions | — | 21 | — | (21 | ) | — | |||||||||||||
Other financing activities, net | 21 | (5 | ) | 2 | — | 18 | |||||||||||||
Net cash provided by/(used for) financing activities | (2,867 | ) | (3,668 | ) | (652 | ) | 2,966 | (4,221 | ) | ||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | — | — | 57 | — | 57 | ||||||||||||||
Cash, cash equivalents, and restricted cash: | |||||||||||||||||||
Net increase/(decrease) | — | (2,225 | ) | (261 | ) | — | (2,486 | ) | |||||||||||
Balance at beginning of period | — | 2,869 | 1,386 | — | 4,255 | ||||||||||||||
Balance at end of period | $ | — | $ | 644 | $ | 1,125 | $ | — | $ | 1,769 |
Parent Guarantor | Subsidiary Issuer | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||
Net cash provided by/(used for) operating activities | $ | 578 | $ | 669 | $ | 1,556 | $ | (663 | ) | $ | 2,140 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||
Capital expenditures | — | (211 | ) | (188 | ) | — | (399 | ) | |||||||||||
Net proceeds from/(payments on) intercompany lending activities | — | (802 | ) | (2,479 | ) | 3,281 | — | ||||||||||||
Return of capital | 142 | — | — | (142 | ) | — | |||||||||||||
Other investing activities, net | — | 23 | 27 | — | 50 | ||||||||||||||
Net cash provided by/(used for) investing activities | 142 | (990 | ) | (2,640 | ) | 3,139 | (349 | ) | |||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||
Repayments of long-term debt | — | (1,096 | ) | (7 | ) | — | (1,103 | ) | |||||||||||
Net proceeds from/(payments on) intercompany borrowing activities | — | 2,479 | 802 | (3,281 | ) | — | |||||||||||||
Dividends paid-Series A Preferred Stock | (720 | ) | — | — | — | (720 | ) | ||||||||||||
Dividends paid-common stock | — | (720 | ) | (85 | ) | 805 | — | ||||||||||||
Other financing activities, net | — | 12 | (9 | ) | — | 3 | |||||||||||||
Net cash provided by/(used for) financing activities | (720 | ) | 675 | 701 | (2,476 | ) | (1,820 | ) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (132 | ) | — | (132 | ) | ||||||||||||
Cash and cash equivalents: | |||||||||||||||||||
Net increase/(decrease) | — | 354 | (515 | ) | — | (161 | ) | ||||||||||||
Balance at beginning of period | — | 187 | 2,272 | — | 2,459 | ||||||||||||||
Balance at end of period | $ | — | $ | 541 | $ | 1,757 | $ | — | $ | 2,298 |
December 28, 2019 | |||||||||||||||||||
Parent Guarantor | Subsidiary Issuer | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Cash and cash equivalents | $ | — | $ | 1,404 | $ | 875 | $ | — | $ | 2,279 | |||||||||
Restricted cash included in other current assets | — | — | 1 | — | 1 | ||||||||||||||
Restricted cash included in other non-current assets | — | — | — | — | — | ||||||||||||||
Cash, cash equivalents, and restricted cash | $ | — | $ | 1,404 | $ | 876 | $ | — | $ | 2,280 |
December 29, 2018 | |||||||||||||||||||
Parent Guarantor | Subsidiary Issuer | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Cash and cash equivalents | $ | — | $ | 202 | $ | 928 | $ | — | $ | 1,130 | |||||||||
Restricted cash included in other current assets | — | — | 1 | — | 1 | ||||||||||||||
Restricted cash included in other non-current assets | — | — | 5 | — | 5 | ||||||||||||||
Cash, cash equivalents, and restricted cash | $ | — | $ | 202 | $ | 934 | $ | — | $ | 1,136 |
• | Supplier Contracts and Related Arrangements: We did not design and maintain effective controls over the accounting for supplier contracts and related arrangements. Specifically, certain employees in our procurement organization engaged in misconduct and circumvented controls that included withholding information or directing others to withhold information related to supplier contracts that affected the accounting for certain supplier rebates, incentives, and pricing arrangements, in an attempt to influence the achievement of internal financial targets that became or were perceived to have become increasingly difficult to attain due to changes in our business environment. Additionally, in certain instances, we did not have a sufficient understanding or maintain sufficient documentation of the transaction to determine the appropriate accounting for certain cost and rebate elements and embedded leases. This material weakness resulted in misstatements that were corrected in the restatement included in our Annual Report on Form 10-K for the year ended December 29, 2018. |
• | We have enhanced the level of precision at which our internal controls over financial reporting relating to goodwill and indefinite-lived intangible asset impairment assessments are performed. Specifically, we implemented and executed additional procedures to (i) enhance our analysis of forecasted cash flows used in the impairment assessment and (ii) test the accuracy of forecasted cash flow allocations to specific brands. |
Number of securities to be issued upon exercise of outstanding options, warrants and rights(1) | Weighted average exercise price per share of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | Number of securities to be issued upon exercise of outstanding options, warrants and rights(1) | Weighted average exercise price per share of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))(2) | |||||||||||||
Plan Category | (a) | (b) | (c) | (a) | (b) | (c) | ||||||||||||
Equity compensation plans approved by security holders | 21,374,026 | $ | 37.39 | 51,175,265 | 33,855,210 | $ | 41.22 | — | ||||||||||
Equity compensation plans not approved by security holders | — | — | — | — | — | — | ||||||||||||
Total | 21,374,026 | 51,175,265 | 33,855,210 | — |
(1) | Includes the vesting of RSUs. |
(2) | Excludes shares that are no longer available to be issued as awards under the Kraft Foods Group 2012 Incentive Performance Plan and the HJ Heinz Holding Corp 2013 Omnibus Incentive Plan. We have not issued new awards from these plans since fiscal year ended December 31, 2016. |
Page No. | |
Exhibit No. | Descriptions | |
2.1 | ||
2.2 | ||
2.3 | ||
2.4 | ||
2.5 | ||
2.6 | ||
2.7 | ||
2.8 |
2.9 | ||
2.10 | ||
3.1 | ||
3.2 |
3.3 | ||
4.1 | ||
4.2 | ||
4.3 | ||
4.4 | ||
4.5 | ||
4.6 | ||
4.7 | ||
4.12 | ||
4.27 | ||
4.28 | ||
4.29 | ||
4.30 | ||
4.31 | ||
4.32 | ||
4.33 | ||
4.34 | ||
4.35 | ||
10.1 | ||
10.2 | ||
10.3 | ||
10.4 |
10.5 | for the fiscal year ended January 3, 2016 (File No. 1-37482), filed on March 3, 2016).+ | |
10.6 | ||
10.7 | ||
10.8 | ||
10.9 |
10.10 | ||
10.11 | ||
10.12 | ||
10.13 | ||
10.15 | ||
10.16 | ||
10.17 | ||
10.18 | ||
10.19 | ||
10.20 | ||
10.21 | ||
10.22 | ||
10.23 | ||
10.25 | ||
21.1 |
23.1 | ||
24.1 | ||
31.1 | ||
31.2 | ||
32.1 | ||
32.2 |
101.1 | The following materials from The Kraft Heinz Company’s Annual Report on Form 10-K for the | |
104.1 | The cover page from The Kraft Heinz Company’s Annual Report on Form 10-K for the period ended December 28, 2019, formatted in inline XBRL.* | |
Indicates a management contract or compensatory plan or arrangement. | ||
* | Filed herewith. |
The Kraft Heinz Company | |||
Date: | February | ||
By: | /s/ Paulo Basilio | ||
Paulo Basilio | |||
(Principal Financial Officer) |
Signature | Title | Date | ||
/s/ | Chief Executive Officer | February | ||
(Principal Executive Officer) | ||||
/s/ Paulo Basilio | February | |||
Paulo Basilio | (Duly Authorized Officer and Principal Financial Officer) | |||
/s/ | Vice President, Global Controller | February | ||
(Principal Accounting Officer) |
Alexandre Behring* | Chairman of the Board | |
John T. Cahill* | Vice Chairman of the Board | |
Gregory E. Abel* | Director | |
Director | ||
Feroz Dewan* | Director | |
Jeanne P. Jackson* | Director | |
Director | ||
Director | ||
John C. Pope* | Director | |
Director | ||
George Zoghbi* | Director |
*By: | /s/ Paulo Basilio |
Paulo Basilio | |
Attorney-In-Fact | |
February 14, 2020 |
Additions | Deductions | Additions | Deductions | ||||||||||||||||||||||||||||||||||||
Description | Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Other Accounts(a) | Write-offs and Reclassifications | Balance at End of Period | Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Other Accounts(a) | Write-offs and Reclassifications | Balance at End of Period | |||||||||||||||||||||||||||||
Year ended December 31, 2016 | |||||||||||||||||||||||||||||||||||||||
Year ended December 28, 2019 | |||||||||||||||||||||||||||||||||||||||
Allowances related to trade accounts receivable | $ | 32 | $ | 6 | $ | (4 | ) | $ | 14 | $ | 20 | $ | 24 | $ | 11 | $ | — | $ | (2 | ) | $ | 33 | |||||||||||||||||
Allowances related to deferred taxes | 83 | 6 | — | — | 89 | 81 | 31 | — | — | 112 | |||||||||||||||||||||||||||||
$ | 115 | $ | 12 | $ | (4 | ) | $ | 14 | $ | 109 | $ | 105 | $ | 42 | $ | — | $ | (2 | ) | $ | 145 | ||||||||||||||||||
Year ended January 3, 2016 | |||||||||||||||||||||||||||||||||||||||
Year ended December 29, 2018 | |||||||||||||||||||||||||||||||||||||||
Allowances related to trade accounts receivable | $ | 8 | $ | 5 | $ | 20 | $ | 1 | $ | 32 | $ | 23 | $ | 8 | $ | — | $ | (7 | ) | $ | 24 | ||||||||||||||||||
Allowances related to deferred taxes | 64 | 10 | 12 | 3 | 83 | 80 | 1 | — | — | 81 | |||||||||||||||||||||||||||||
$ | 72 | $ | 15 | $ | 32 | $ | 4 | $ | 115 | $ | 103 | $ | 9 | $ | — | $ | (7 | ) | $ | 105 | |||||||||||||||||||
Year ended December 28, 2014 | |||||||||||||||||||||||||||||||||||||||
Year ended December 30, 2017 | |||||||||||||||||||||||||||||||||||||||
Allowances related to trade accounts receivable | $ | 1 | $ | 9 | $ | (1 | ) | $ | 1 | 8 | $ | 20 | $ | 8 | $ | 1 | $ | (6 | ) | $ | 23 | ||||||||||||||||||
Allowances related to deferred taxes | 78 | 1 | (15 | ) | — | $ | 64 | 89 | (9 | ) | — | — | 80 | ||||||||||||||||||||||||||
$ | 79 | $ | 10 | $ | (16 | ) | $ | 1 | $ | 72 | $ | 109 | $ | (1 | ) | $ | 1 | $ | (6 | ) | $ | 103 |
(a) | Primarily relates to acquisitions and currency translation. |