☒ | 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 Nasdaq Stock Market LLC |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
S- |
Majority Owned and Licensed Trademarks | ||||||||
United States | Kraft, Oscar Mayer, Heinz, Velveeta, Philadelphia, Lunchables, | |||||||
Heinz, ABC, Master, Kraft, | ||||||||
Canada | Kraft, Philadelphia, Heinz, Classico, Maxwell House |
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 | % |
December 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
Taste Elevation | 28 | % | 26 | % | 26 | % | |||||||||||
Fast Fresh Meals | 25 | % | 26 | % | 25 | % | |||||||||||
Easy Meals Made Better | 19 | % | 19 | % | 17 | % | |||||||||||
Real Food Snacking | 7 | % | 9 | % | 9 | % | |||||||||||
Flavorful Hydration | 7 | % | 6 | % | 6 | % | |||||||||||
Easy Indulgent Desserts | 4 | % | 4 | % | 4 | % | |||||||||||
Other | 10 | % | 10 | % | 13 | % |
December 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
Condiments and sauces | 28 | % | 26 | % | 26 | % | |||||||||||
Cheese and dairy | 19 | % | 20 | % | 20 | % | |||||||||||
Ambient foods | 11 | % | 11 | % | 10 | % | |||||||||||
Frozen and chilled foods | 10 | % | 10 | % | 9 | % | |||||||||||
Meats and seafood | 10 | % | 10 | % | 10 | % |
Name and Title | Age | |||||||||||||||||
Miguel Patricio, | Chief Executive Officer and Director | 55 | Chief Executive Officer (since June 2019) and Director (since May 2021). Chief of Special Global Projects–Marketing (January 2019 to June 2019) and Chief Marketing Officer (2012 to December 2018) at Anheuser-Busch InBev SA/NV (“AB InBev”), a multinational drink and brewing holdings company. | |||||||||||||||
Paulo Basilio, | Executive Vice President and Global Chief Financial Officer | 47 | Executive Vice President (since December 2021) and Global Chief Financial Officer (since September 2019); Chief Business Planning and Development Officer (July 2019 to September 2019); President of the U.S. Commercial Business (October 2017 to June 2019); and Executive Vice President and Chief Financial Officer (2015 to October 2017). Partner (since 2012) of 3G Capital. | |||||||||||||||
Carlos Abrams-Rivera, Executive Vice President and President, North America | Executive Vice President and President, North America (since December 2021); and U.S. Zone President (February 2020 to December 2021). Executive Vice President and President, Campbell Snacks (May 2019 to February 2020), President, Campbell Snacks (March 2018 to May 2019), and President, Pepperidge Farm (2015 to March 2018) at Campbell Soup Company, a food and beverage company. | |||||||||||||||||
Kathy Krenger, Senior Vice President and Global Chief Communications Officer | Senior Vice President (since December 2021) and Global Chief | |||||||||||||||||
Rashida La Lande, | Executive Vice President, Global General Counsel, and Chief Sustainability and Corporate Affairs Officer; Corporate Secretary | 48 | Executive Vice President, Global General Counsel, and Chief Sustainability and Corporate Affairs Officer (since December 2021); Corporate Secretary (since January 2018); Head of | |||||||||||||||
Marcos Eloi Lima, Executive Vice President and Global Chief Procurement Officer | 44 | Executive Vice President (since December 2021) and Chief Procurement Officer (since October 2019); and Advisor in the area of procurement (July 2019 to October 2019). Vice President Procurement & Sustainability Middle Americas Zone (2016 to July 2019) at AB InBev. | ||||||||||||||||
Rafael Oliveira, Executive Vice President and President, International Markets | Executive Vice President and President, International Markets (since December 2021); International Zone President | |||||||||||||||||
Flavio Torres, Executive Vice President and Global Chief Supply Chain Officer | Executive Vice President and Global Chief Supply Chain Officer (since December 2021); and Head of Global Operations (January 2020 to December 2021). Global Operations Vice President (2017 to 2019) at AB InBev. | |||||||||||||||||
Melissa Werneck, Executive Vice President and Global Chief People Officer | 49 | Executive Vice President (since December 2021) and Global Chief People Officer (since 2016); and Head of Global Human Resources, Performance and Information Technology (2015 to 2016). |
Owned | Leased | Owned | Leased | |||||||||||
United States | 40 | 1 | United States | 33 | 1 | |||||||||
International | International | 40 | 2 | |||||||||||
Canada | 1 | 1 | Canada | 1 | 2 | |||||||||
EMEA | 13 | — | ||||||||||||
Rest of World | 26 | 1 |
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 |
Kraft Heinz | S&P 500 | S&P Consumer Staples Food and Soft Drink Products | |||||||||||||||
December 30, 2016 | $ | 100.00 | $ | 100.00 | $ | 100.00 | |||||||||||
December 29, 2017 | 91.60 | 121.83 | 111.74 | ||||||||||||||
December 28, 2018 | 53.54 | 115.49 | 106.04 | ||||||||||||||
December 27, 2019 | 41.08 | 153.57 | 137.25 | ||||||||||||||
December 24, 2020 | 48.08 | 178.76 | 143.96 | ||||||||||||||
December 23, 2021 | 50.53 | 231.39 | 163.58 |
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 | — |
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 | |||||||||||||||||||||||
9/26/2021 — 10/30/2021 | 1,888,532 | $ | 36.85 | — | $ | — | ||||||||||||||||||||
10/31/2021 — 11/27/2021 | 1,421,051 | 36.97 | — | — | ||||||||||||||||||||||
11/28/2021 — 12/25/2021 | 53,208 | 34.56 | — | — | ||||||||||||||||||||||
Total | 3,362,791 | — |
(a) Includes (1) shares repurchased to offset the dilutive effect of the exercise of stock options using option exercise proceeds and the vesting restricted stock units (“RSUs”) and performance share units (“PSUs”) and (2) shares withheld for tax liabilities associated with the vesting of RSUs and PSUs. (b) We do not have any publicly-announced share repurchase plans or programs. |
(Unaudited) | |||||||||||||||||||
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) | |||||||||||||||||||
Period Ended: | |||||||||||||||||||
Net sales(a) | $ | 24,977 | $ | 26,268 | $ | 26,076 | $ | 26,300 | $ | 18,318 | |||||||||
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(b)(c)(d) | $ | 1.59 | (8.36 | ) | 8.98 | 2.81 | (0.38 | ) | |||||||||||
Diluted(b)(c)(d) | 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(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 | 1.60 | 2.50 | 2.45 | 2.35 | 1.70 |
December 28, 2019 | December 29, 2018 | % Change | ||||||||
(in millions, except per share data) | ||||||||||
Net sales | $ | 24,977 | $ | 26,268 | (4.9 | )% | ||||
Operating income/(loss) | 3,070 | (10,205 | ) | 130.1 | % | |||||
Net income/(loss) attributable to common shareholders | 1,935 | (10,192 | ) | 119.0 | % | |||||
Diluted EPS | 1.58 | (8.36 | ) | 118.9 | % |
December 25, 2021 | December 26, 2020 | % Change | |||||||||||||||
(in millions, except per share data) | |||||||||||||||||
Net sales | $ | 26,042 | $ | 26,185 | (0.5) | % | |||||||||||
Operating income/(loss) | 3,460 | 2,128 | 62.6 | % | |||||||||||||
Net income/(loss) | 1,024 | 361 | 183.7 | % | |||||||||||||
Net income/(loss) attributable to common shareholders | 1,012 | 356 | 184.5 | % | |||||||||||||
Diluted EPS | 0.82 | 0.29 | 182.8 | % |
December 25, 2021 | December 26, 2020 | % Change | |||||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | 26,042 | $ | 26,185 | (0.5) | % | |||||||||||
Organic Net Sales(a) | 23,714 | 23,293 | 1.8 | % |
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 25, 2021 | December 26, 2020 | % Change | |||||||||||||||
(in millions) | |||||||||||||||||
Operating income/(loss) | $ | 3,460 | $ | 2,128 | 62.6 | % | |||||||||||
Net income/(loss) | 1,024 | 361 | 183.7 | % | |||||||||||||
Net income/(loss) attributable to common shareholders | 1,012 | 356 | 184.5 | % | |||||||||||||
Adjusted EBITDA(a) | 6,371 | 6,669 | (4.5) | % |
December 28, 2019 | December 29, 2018 | % Change | ||||||||
(in millions) | ||||||||||
Operating income/(loss) | $ | 3,070 | $ | (10,205 | ) | 130.1 | % | |||
Net income/(loss) attributable to common shareholders | 1,935 | (10,192 | ) | 119.0 | % | |||||
Adjusted EBITDA(a) | 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 25, 2021 | December 26, 2020 | % Change | |||||||||||||||
(in millions, except per share data) | |||||||||||||||||
Diluted EPS | $ | 0.82 | $ | 0.29 | 182.8 | % | |||||||||||
Adjusted EPS(a) | 2.93 | 2.88 | 1.7 | % |
December 28, 2019 | December 29, 2018 | % Change | ||||||||
(in millions, except per share data) | ||||||||||
Diluted EPS | $ | 1.58 | $ | (8.36 | ) | 118.9 | % | |||
Adjusted EPS(a) | 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 25, 2021 | December 26, 2020 | $ Change | % Change | ||||||||||||||||||||
Diluted EPS | $ | 0.82 | $ | 0.29 | $ | 0.53 | 182.8 | % | |||||||||||||||
Restructuring activities | 0.05 | — | 0.05 | ||||||||||||||||||||
Unrealized losses/(gains) on commodity hedges | 0.01 | — | 0.01 | ||||||||||||||||||||
Impairment losses | 1.07 | 2.59 | (1.52) | ||||||||||||||||||||
Certain non-ordinary course legal and regulatory matters | 0.05 | — | 0.05 | ||||||||||||||||||||
Losses/(gains) on sale of business(a) | 0.15 | (0.01) | 0.16 | ||||||||||||||||||||
Debt prepayment and extinguishment costs | 0.59 | 0.08 | 0.51 | ||||||||||||||||||||
Certain significant discrete income tax items | 0.19 | (0.07) | 0.26 | ||||||||||||||||||||
Adjusted EPS(b) | $ | 2.93 | $ | 2.88 | $ | 0.05 | 1.7 | % | |||||||||||||||
Key drivers of change in Adjusted EPS(b): | |||||||||||||||||||||||
Results of operations | $ | (0.08) | |||||||||||||||||||||
Results of divested operations | (0.10) | ||||||||||||||||||||||
Interest expense | 0.09 | ||||||||||||||||||||||
Other expense/(income) | (0.02) | ||||||||||||||||||||||
Effective tax rate | 0.18 | ||||||||||||||||||||||
Effect of dilutive equity awards(c) | (0.02) | ||||||||||||||||||||||
$ | 0.05 |
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 | ) |
December 28, 2019 | December 29, 2018 | December 25, 2021 | December 26, 2020 | |||||||||||||||
(in millions) | (in millions) | |||||||||||||||||
Net sales: | Net sales: | |||||||||||||||||
United States | $ | 17,756 | $ | 18,122 | United States | $ | 18,604 | $ | 19,204 | |||||||||
International | International | 5,691 | 5,341 | |||||||||||||||
Canada | 1,882 | 2,173 | Canada | 1,747 | 1,640 | |||||||||||||
EMEA | 2,551 | 2,718 | ||||||||||||||||
Rest of World | 2,788 | 3,255 | ||||||||||||||||
Total net sales | $ | 24,977 | $ | 26,268 | Total net sales | $ | 26,042 | $ | 26,185 |
2021 Compared to 2020 | |||||||||||
December 25, 2021 | December 26, 2020 | ||||||||||
(in millions) | |||||||||||
Organic Net Sales(a): | |||||||||||
United States | $ | 16,667 | $ | 16,403 | |||||||
International | 5,463 | 5,299 | |||||||||
Canada | 1,584 | 1,591 | |||||||||
Total Organic Net Sales | $ | 23,714 | $ | 23,293 |
December 28, 2019 | December 29, 2018 | ||||||
(in millions) | |||||||
Organic Net Sales(a): | |||||||
United States | $ | 17,756 | $ | 18,122 | |||
Canada | 1,700 | 1,732 | |||||
EMEA | 2,666 | 2,697 | |||||
Rest of World | 2,839 | 2,842 | |||||
Total Organic Net Sales | $ | 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. |
Net Sales | Currency | Acquisitions and Divestitures | Organic Net Sales | Price | Volume/Mix | ||||||||||||||||||||||||||||||
2021 Compared to 2020 | |||||||||||||||||||||||||||||||||||
United States | (3.1) | % | 0.0 pp | (4.7) pp | 1.6 | % | 2.1 pp | (0.5) pp | |||||||||||||||||||||||||||
International | 6.5 | % | 3.4 pp | 0.0 pp | 3.1 | % | 2.6 pp | 0.5 pp | |||||||||||||||||||||||||||
Canada | 6.5 | % | 7.0 pp | (0.1) pp | (0.4) | % | 2.9 pp | (3.3) pp | |||||||||||||||||||||||||||
Kraft Heinz | (0.5) | % | 1.2 pp | (3.5) pp | 1.8 | % | 2.3 pp | (0.5) pp |
Net Sales | Currency | Acquisitions and Divestitures | Organic Net Sales | Price | Volume/Mix | ||||||||
2019 Compared to 2018 | |||||||||||||
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 |
December 28, 2019 | December 29, 2018 | December 25, 2021 | December 26, 2020 | |||||||||||||||
(in millions) | (in millions) | |||||||||||||||||
Segment Adjusted EBITDA: | Segment Adjusted EBITDA: | |||||||||||||||||
United States | $ | 4,809 | $ | 5,218 | United States | $ | 5,157 | $ | 5,557 | |||||||||
International | International | 1,066 | 1,058 | |||||||||||||||
Canada | 487 | 608 | Canada | 419 | 389 | |||||||||||||
EMEA | 661 | 724 | ||||||||||||||||
Rest of World | 363 | 635 | ||||||||||||||||
General corporate expenses | (256 | ) | (161 | ) | General corporate expenses | (271) | (335) | |||||||||||
Depreciation and amortization (excluding integration and restructuring expenses) | (985 | ) | (919 | ) | ||||||||||||||
Integration and restructuring expenses | (102 | ) | (297 | ) | ||||||||||||||
Depreciation and amortization (excluding restructuring activities) | Depreciation and amortization (excluding restructuring activities) | (910) | (955) | |||||||||||||||
Divestiture-related license income | Divestiture-related license income | 4 | — | |||||||||||||||
Restructuring activities | Restructuring activities | (84) | (15) | |||||||||||||||
Deal costs | (19 | ) | (23 | ) | Deal costs | (11) | (8) | |||||||||||
Unrealized gains/(losses) on commodity hedges | 57 | (21 | ) | Unrealized gains/(losses) on commodity hedges | (17) | 6 | ||||||||||||
Impairment losses | (1,899 | ) | (15,936 | ) | Impairment losses | (1,634) | (3,413) | |||||||||||
Equity award compensation expense (excluding integration and restructuring expenses) | (46 | ) | (33 | ) | ||||||||||||||
Operating income | 3,070 | (10,205 | ) | |||||||||||||||
Certain non-ordinary course legal and regulatory matters | Certain non-ordinary course legal and regulatory matters | (62) | — | |||||||||||||||
Equity award compensation expense (excluding restructuring activities) | Equity award compensation expense (excluding restructuring activities) | (197) | (156) | |||||||||||||||
Operating income/(loss) | Operating income/(loss) | 3,460 | 2,128 | |||||||||||||||
Interest expense | 1,361 | 1,284 | Interest expense | 2,047 | 1,394 | |||||||||||||
Other expense/(income) | (952 | ) | (168 | ) | Other expense/(income) | (295) | (296) | |||||||||||
Income/(loss) before income taxes | $ | 2,661 | $ | (11,321 | ) | Income/(loss) before income taxes | $ | 1,708 | $ | 1,030 |
2021 Compared to 2020 | |||||||||||||||||
December 25, 2021 | December 26, 2020 | % Change | |||||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | 18,604 | $ | 19,204 | (3.1) | % | |||||||||||
Organic Net Sales(a) | 16,667 | 16,403 | 1.6 | % | |||||||||||||
Segment Adjusted EBITDA | 5,157 | 5,557 | (7.2) | % |
December 28, 2019 | December 29, 2018 | % Change | ||||||||
(in millions) | ||||||||||
Net sales | $ | 17,756 | $ | 18,122 | (2.0 | )% | ||||
Organic Net Sales(a) | 17,756 | 18,122 | (2.0 | )% | ||||||
Segment Adjusted EBITDA | 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. |
2021 Compared to 2020 | |||||||||||||||||
December 25, 2021 | December 26, 2020 | % Change | |||||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | 5,691 | $ | 5,341 | 6.5 | % | |||||||||||
Organic Net Sales(a) | 5,463 | 5,299 | 3.1 | % | |||||||||||||
Segment Adjusted EBITDA | 1,066 | 1,058 | 0.7 | % |
December 28, 2019 | December 29, 2018 | % Change | ||||||||
(in millions) | ||||||||||
Net sales | $ | 1,882 | $ | 2,173 | (13.4 | )% | ||||
Organic Net Sales(a) | 1,700 | 1,732 | (1.9 | )% | ||||||
Segment Adjusted EBITDA | 487 | 608 | (19.9 | )% |
2021 Compared to 2020 | |||||||||||||||||
December 25, 2021 | December 26, 2020 | % Change | |||||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | 1,747 | $ | 1,640 | 6.5 | % | |||||||||||
Organic Net Sales(a) | 1,584 | 1,591 | (0.4) | % | |||||||||||||
Segment Adjusted EBITDA | 419 | 389 | 7.8 | % |
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 | )% |
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 | )% |
Material Cash Requirements | |||||||||||||||||||||||||||||
2022 | 2023-2024 | 2025-2026 | 2027 and Thereafter | Total | |||||||||||||||||||||||||
Long-term debt(a) | $ | 1,640 | $ | 3,305 | $ | 3,644 | $ | 28,645 | $ | 37,234 | |||||||||||||||||||
Finance leases(b) | 46 | 56 | 34 | 169 | 305 | ||||||||||||||||||||||||
Operating leases(c) | 155 | 214 | 150 | 229 | 748 | ||||||||||||||||||||||||
Purchase obligations(d) | 541 | 772 | 401 | 282 | 1,996 | ||||||||||||||||||||||||
Other long-term liabilities(e) | 39 | 125 | 98 | 167 | 429 | ||||||||||||||||||||||||
Total | $ | 2,421 | $ | 4,472 | $ | 4,327 | $ | 29,492 | $ | 40,712 |
For the Year Ended | |||||
December 25, 2021 | |||||
Net sales | $ | 17,374 | |||
Gross profit(a) | 6,270 | ||||
Goodwill impairment losses | 230 | ||||
Intercompany service fees and other recharges | 3,813 | ||||
Operating income/(loss) | 1,254 | ||||
Equity in earnings/(losses) of subsidiaries | 1,360 | ||||
Net income/(loss) | 1,012 | ||||
Net income/(loss) attributable to common shareholders | 1,012 |
December 25, 2021 | |||||
ASSETS | |||||
Current assets | $ | 6,484 | |||
Current assets due from affiliates(a) | 2,890 | ||||
Non-current assets | 5,709 | ||||
Goodwill | 8,860 | ||||
Intangible assets, net | 2,222 | ||||
Non-current assets due from affiliates(b) | 207 | ||||
LIABILITIES | |||||
Current liabilities | $ | 5,091 | |||
Current liabilities due to affiliates(a) | 5,922 | ||||
Non-current liabilities | 23,120 | ||||
Non-current liabilities due to affiliates(b) | 600 |
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 | Goodwill or Brand Carrying Amount (in billions) | Discount Rate | Long-Term Growth Rate | Royalty Rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | |||||||||||||||||||||||||||||||||||||||||||||||||||
Reporting units | $ | 0.7 | 6.5 | % | 11.3 | % | 2.5 | % | 3.5 | % | Reporting units | $ | 28.3 | 6.5 | % | 7.0 | % | 1.0 | % | 1.5 | % | |||||||||||||||||||||||||||||||||||||||||
Brands (excess earnings method) | 3.3 | 7.8 | % | 7.8 | % | 1.0 | % | 1.0 | % | Brands (excess earnings method) | 15.0 | 7.0 | % | 7.2 | % | 0.8 | % | 1.5 | % | |||||||||||||||||||||||||||||||||||||||||||
Brands (relief from royalty method) | 0.4 | 7.6 | % | 10.3 | % | 1.3 | % | 4.0 | % | 1.0 | % | 17.0 | % | Brands (relief from royalty method) | 6.2 | 7.0 | % | 7.5 | % | 0.5 | % | 2.0 | % | 5.0 | % | 20.0 | % |
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 | ) |
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 | $ | (5.6) | $ | 6.8 | $ | 3.2 | $ | (2.9) | |||||||||||||||||||||||||||
Brands (excess earnings method) | (1.2) | 1.4 | 0.5 | (0.5) | |||||||||||||||||||||||||||||||
Brands (relief from royalty method) | (0.5) | 0.7 | 0.2 | (0.2) | $ | 0.6 | $ | (0.6) |
One-Percentage-Point | |||||||
Increase | (Decrease) | ||||||
Effect on annual service and interest cost | $ | 3 | $ | (2 | ) | ||
Effect on postretirement benefit obligation | 55 | (47 | ) |
U.S. Plans | Non-U.S. Plans | ||||||||||||||
100-Basis-Point | 100-Basis-Point | ||||||||||||||
Increase | Decrease | Increase | Decrease | ||||||||||||
Effect of change in discount rate on pension costs | $ | 11 | $ | (27 | ) | $ | 8 | $ | (5 | ) | |||||
Effect of change in expected rate of return on plan assets on pension costs | (47 | ) | 47 | (28 | ) | 28 | |||||||||
Effect of change in discount rate on postretirement costs | (8 | ) | 6 | (1 | ) | (1 | ) | ||||||||
Effect of change in expected rate of return on plan assets on postretirement costs | (11 | ) | 11 | — | — |
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
100-Basis-Point | 100-Basis-Point | ||||||||||||||||||||||
Increase | Decrease | Increase | Decrease | ||||||||||||||||||||
Effect of change in discount rate on pension costs | $ | 9 | $ | (25) | $ | 10 | $ | (2) | |||||||||||||||
Effect of change in expected rate of return on plan assets on pension costs | (43) | 43 | (29) | 29 | |||||||||||||||||||
Effect of change in discount rate on postretirement costs | 1 | (1) | (1) | 1 | |||||||||||||||||||
Effect of change in expected rate of return on plan assets on postretirement costs | (11) | 11 | — | — |
Payments Due | ||||||||||||||
2020 | 2021-2022 | 2023-2024 | 2025 and Thereafter | Total | ||||||||||
Long-term debt(a) | 2,222 | 5,394 | 4,434 | 35,773 | 47,823 | |||||||||
Finance leases(b) | 33 | 96 | 17 | 80 | 226 | |||||||||
Operating leases(c) | 163 | 210 | 108 | 156 | 637 | |||||||||
Purchase obligations(d) | 1,324 | 1,038 | 493 | 89 | 2,944 | |||||||||
Other long-term liabilities(e) | 47 | 87 | 125 | 155 | 414 | |||||||||
Total | 3,789 | 6,825 | 5,177 | 36,253 | 52,044 |
Net Sales | Currency | Acquisitions and Divestitures | Organic Net Sales | Price | Volume/Mix | ||||||||||||||||||||||||||||||
2021 | |||||||||||||||||||||||||||||||||||
United States | $ | 18,604 | $ | — | $ | 1,937 | $ | 16,667 | |||||||||||||||||||||||||||
International | 5,691 | 205 | 23 | 5,463 | |||||||||||||||||||||||||||||||
Canada | 1,747 | 114 | 49 | 1,584 | |||||||||||||||||||||||||||||||
Kraft Heinz | $ | 26,042 | $ | 319 | $ | 2,009 | $ | 23,714 | |||||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||||||||
United States | $ | 19,204 | $ | — | $ | 2,801 | $ | 16,403 | |||||||||||||||||||||||||||
International | 5,341 | 22 | 20 | 5,299 | |||||||||||||||||||||||||||||||
Canada | 1,640 | — | 49 | 1,591 | |||||||||||||||||||||||||||||||
Kraft Heinz | $ | 26,185 | $ | 22 | $ | 2,870 | $ | 23,293 |
Net Sales | Currency | Acquisitions and Divestitures | Organic Net Sales | Price | Volume/Mix | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year-over-year growth rates | Year-over-year growth rates | |||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 17,756 | $ | — | $ | — | $ | 17,756 | United States | (3.1) | % | 0.0 pp | (4.7) pp | 1.6 | % | 2.1 pp | (0.5) pp | |||||||||||||||||||||||||||||||||||||
International | International | 6.5 | % | 3.4 pp | 0.0 pp | 3.1 | % | 2.6 pp | 0.5 pp | |||||||||||||||||||||||||||||||||||||||||||||
Canada | 1,882 | (45 | ) | 227 | 1,700 | Canada | 6.5 | % | 7.0 pp | (0.1) pp | (0.4) | % | 2.9 pp | (3.3) pp | ||||||||||||||||||||||||||||||||||||||||
EMEA | 2,551 | (115 | ) | — | 2,666 | |||||||||||||||||||||||||||||||||||||||||||||||||
Rest of World | 2,788 | (102 | ) | 51 | 2,839 | |||||||||||||||||||||||||||||||||||||||||||||||||
Kraft Heinz | $ | 24,977 | $ | (262 | ) | $ | 278 | $ | 24,961 | Kraft Heinz | (0.5) | % | 1.2 pp | (3.5) pp | 1.8 | % | 2.3 pp | (0.5) pp | ||||||||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 18,122 | $ | — | $ | — | $ | 18,122 | ||||||||||||||||||||||||||||||||||||||||||||||
Canada | 2,173 | — | 441 | 1,732 | ||||||||||||||||||||||||||||||||||||||||||||||||||
EMEA | 2,718 | — | 21 | 2,697 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Rest of World | 3,255 | 243 | 170 | 2,842 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Kraft Heinz | $ | 26,268 | $ | 243 | $ | 632 | $ | 25,393 |
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 |
Net Sales | Currency | Acquisitions and Divestitures | Organic Net Sales | Price | Volume/Mix | ||||||||||||||
2018 | |||||||||||||||||||
United States | $ | 18,122 | $ | — | $ | — | $ | 18,122 | |||||||||||
Canada | 2,173 | (5 | ) | 443 | 1,735 | ||||||||||||||
EMEA | 2,718 | 66 | 19 | 2,633 | |||||||||||||||
Rest of World | 3,255 | (75 | ) | 334 | 2,996 | ||||||||||||||
Kraft Heinz | $ | 26,268 | $ | (14 | ) | $ | 796 | $ | 25,486 | ||||||||||
2017 | |||||||||||||||||||
United States | $ | 18,230 | $ | — | $ | — | $ | 18,230 | |||||||||||
Canada | 2,177 | — | 430 | 1,747 | |||||||||||||||
EMEA | 2,585 | — | 56 | 2,529 | |||||||||||||||
Rest of World | 3,084 | 144 | 165 | 2,775 | |||||||||||||||
Kraft Heinz | $ | 26,076 | $ | 144 | $ | 651 | $ | 25,281 |
Year-over-year growth rates | |||||||||||||
United States | (0.6 | )% | 0.0 pp | 0.0 pp | (0.6 | )% | (0.9) pp | 0.3 pp | |||||
Canada | (0.2 | )% | (0.3) pp | 0.7 pp | (0.6 | )% | (0.4) pp | (0.2) pp | |||||
EMEA | 5.1 | % | 2.5 pp | (1.5) pp | 4.1 | % | 0.9 pp | 3.2 pp | |||||
Rest of World | 5.6 | % | (7.6) pp | 5.2 pp | 8.0 | % | 6.1 pp | 1.9 pp | |||||
Kraft Heinz | 0.7 | % | (0.6) pp | 0.5 pp | 0.8 | % | 0.0 pp | 0.8 pp |
December 25, 2021 | December 26, 2020 | ||||||||||
Net income/(loss) | $ | 1,024 | $ | 361 | |||||||
Interest expense | 2,047 | 1,394 | |||||||||
Other expense/(income) | (295) | (296) | |||||||||
Provision for/(benefit from) income taxes | 684 | 669 | |||||||||
Operating income/(loss) | 3,460 | 2,128 | |||||||||
Depreciation and amortization (excluding restructuring activities) | 910 | 955 | |||||||||
Divestiture-related license income | (4) | — | |||||||||
Restructuring activities | 84 | 15 | |||||||||
Deal costs | 11 | 8 | |||||||||
Unrealized losses/(gains) on commodity hedges | 17 | (6) | |||||||||
Impairment losses | 1,634 | 3,413 | |||||||||
Certain non-ordinary course legal and regulatory matters | 62 | — | |||||||||
Equity award compensation expense (excluding restructuring activities) | 197 | 156 | |||||||||
Adjusted EBITDA | $ | 6,371 | $ | 6,669 |
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 25, 2021 | December 26, 2020 | ||||||||||
Diluted EPS | $ | 0.82 | $ | 0.29 | |||||||
Restructuring activities(a) | 0.05 | — | |||||||||
Unrealized losses/(gains) on commodity hedges(b) | 0.01 | — | |||||||||
Impairment losses(c) | 1.07 | 2.59 | |||||||||
Certain non-ordinary course legal and regulatory matters(d) | 0.05 | — | |||||||||
Losses/(gains) on sale of business(e) | 0.15 | (0.01) | |||||||||
Debt prepayment and extinguishment costs(f) | 0.59 | 0.08 | |||||||||
Certain significant discrete income tax items(g) | 0.19 | (0.07) | |||||||||
Adjusted EPS | $ | 2.93 | $ | 2.88 |
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 |
•Property, plant and equipment asset impairment losses of $14 million ($1 million after-tax) in 2020, which were recorded in cost of products sold. (d) Gross expenses included in certain non-ordinary course legal and regulatory matters were $62 million ($62 million after-tax) in 2021 and were recorded in SG&A. These expenses relate to the settlement of the previously disclosed SEC investigation. (e) Gross expenses/ |
December 28, 2019 | December 29, 2018 | December 25, 2021 | December 26, 2020 | |||||||||||||||
Commodity contracts | $ | 43 | $ | 38 | Commodity contracts | $ | 56 | $ | 39 | |||||||||
Foreign currency contracts | 73 | 100 | Foreign currency contracts | 130 | 141 | |||||||||||||
Cross-currency swap contracts | 412 | 402 | Cross-currency swap contracts | 318 | 433 |
December 28, 2019 | December 29, 2018 | December 30, 2017 | December 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||||||||||
Net sales | $ | 24,977 | $ | 26,268 | $ | 26,076 | Net sales | $ | 26,042 | $ | 26,185 | $ | 24,977 | |||||||||||||||
Cost of products sold | 16,830 | 17,347 | 17,043 | Cost of products sold | 17,360 | 17,008 | 16,830 | |||||||||||||||||||||
Gross profit | 8,147 | 8,921 | 9,033 | Gross profit | 8,682 | 9,177 | 8,147 | |||||||||||||||||||||
Selling, general and administrative expenses, excluding impairment losses | 3,178 | 3,190 | 2,927 | Selling, general and administrative expenses, excluding impairment losses | 3,588 | 3,650 | 3,178 | |||||||||||||||||||||
Goodwill impairment losses | 1,197 | 7,008 | — | Goodwill impairment losses | 318 | 2,343 | 1,197 | |||||||||||||||||||||
Intangible asset impairment losses | 702 | 8,928 | 49 | Intangible asset impairment losses | 1,316 | 1,056 | 702 | |||||||||||||||||||||
Selling, general and administrative expenses | 5,077 | 19,126 | 2,976 | Selling, general and administrative expenses | 5,222 | 7,049 | 5,077 | |||||||||||||||||||||
Operating income/(loss) | 3,070 | (10,205 | ) | 6,057 | Operating income/(loss) | 3,460 | 2,128 | 3,070 | ||||||||||||||||||||
Interest expense | 1,361 | 1,284 | 1,234 | Interest expense | 2,047 | 1,394 | 1,361 | |||||||||||||||||||||
Other expense/(income) | (952 | ) | (168 | ) | (627 | ) | Other expense/(income) | (295) | (296) | (952) | ||||||||||||||||||
Income/(loss) before income taxes | 2,661 | (11,321 | ) | 5,450 | Income/(loss) before income taxes | 1,708 | 1,030 | 2,661 | ||||||||||||||||||||
Provision for/(benefit from) income taxes | 728 | (1,067 | ) | (5,482 | ) | Provision for/(benefit from) income taxes | 684 | 669 | 728 | |||||||||||||||||||
Net income/(loss) | 1,933 | (10,254 | ) | 10,932 | Net income/(loss) | 1,024 | 361 | 1,933 | ||||||||||||||||||||
Net income/(loss) attributable to noncontrolling interest | (2 | ) | (62 | ) | (9 | ) | Net income/(loss) attributable to noncontrolling interest | 12 | 5 | (2) | ||||||||||||||||||
Net income/(loss) attributable to common shareholders | $ | 1,935 | $ | (10,192 | ) | $ | 10,941 | Net income/(loss) attributable to common shareholders | $ | 1,012 | $ | 356 | $ | 1,935 | ||||||||||||||
Per share data applicable to common shareholders: | Per share data applicable to common shareholders: | |||||||||||||||||||||||||||
Basic earnings/(loss) | $ | 1.59 | $ | (8.36 | ) | $ | 8.98 | Basic earnings/(loss) | $ | 0.83 | $ | 0.29 | $ | 1.59 | ||||||||||||||
Diluted earnings/(loss) | 1.58 | (8.36 | ) | 8.91 | Diluted earnings/(loss) | 0.82 | 0.29 | 1.58 |
December 28, 2019 | December 29, 2018 | December 30, 2017 | December 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||||||||||
Net income/(loss) | $ | 1,933 | $ | (10,254 | ) | $ | 10,932 | Net income/(loss) | $ | 1,024 | $ | 361 | $ | 1,933 | ||||||||||||||
Other comprehensive income/(loss), net of tax: | Other comprehensive income/(loss), net of tax: | |||||||||||||||||||||||||||
Foreign currency translation adjustments | 246 | (1,187 | ) | 1,185 | Foreign currency translation adjustments | (236) | 327 | 246 | ||||||||||||||||||||
Net deferred gains/(losses) on net investment hedges | 1 | 284 | (353 | ) | Net deferred gains/(losses) on net investment hedges | 169 | (321) | 1 | ||||||||||||||||||||
Amounts excluded from the effectiveness assessment of net investment hedges | 22 | 7 | — | Amounts excluded from the effectiveness assessment of net investment hedges | 35 | 26 | 22 | |||||||||||||||||||||
Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) | (16 | ) | (7 | ) | — | Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) | (29) | (17) | (16) | |||||||||||||||||||
Net deferred gains/(losses) on cash flow hedges | (10 | ) | 99 | (113 | ) | Net deferred gains/(losses) on cash flow hedges | (91) | 144 | (10) | |||||||||||||||||||
Amounts excluded from the effectiveness assessment of cash flow hedges | 29 | 2 | — | Amounts excluded from the effectiveness assessment of cash flow hedges | 27 | 24 | 29 | |||||||||||||||||||||
Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) | (41 | ) | (44 | ) | 85 | Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) | 68 | (116) | (41) | |||||||||||||||||||
Net actuarial gains/(losses) arising during the period | (70 | ) | 58 | 69 | Net actuarial gains/(losses) arising during the period | 232 | (27) | (70) | ||||||||||||||||||||
Prior service credits/(costs) arising during the period | 1 | 3 | 17 | Prior service credits/(costs) arising during the period | — | — | 1 | |||||||||||||||||||||
Net postemployment benefit losses/(gains) reclassified to net income/(loss) | (234 | ) | (118 | ) | (309 | ) | Net postemployment benefit losses/(gains) reclassified to net income/(loss) | (26) | (118) | (234) | ||||||||||||||||||
Total other comprehensive income/(loss) | (72 | ) | (903 | ) | 581 | Total other comprehensive income/(loss) | 149 | (78) | (72) | |||||||||||||||||||
Total comprehensive income/(loss) | 1,861 | (11,157 | ) | 11,513 | Total comprehensive income/(loss) | 1,173 | 283 | 1,861 | ||||||||||||||||||||
Comprehensive income/(loss) attributable to noncontrolling interest | 5 | (76 | ) | (3 | ) | Comprehensive income/(loss) attributable to noncontrolling interest | 18 | 8 | 5 | |||||||||||||||||||
Comprehensive income/(loss) attributable to common shareholders | $ | 1,856 | $ | (11,081 | ) | $ | 11,516 | Comprehensive income/(loss) attributable to common shareholders | $ | 1,155 | $ | 275 | $ | 1,856 |
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 25, 2021 | December 26, 2020 | ||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 3,445 | $ | 3,417 | |||||||
Trade receivables (net of allowances of $48 at December 25, 2021 and $48 at December 26, 2020) | 1,957 | 2,063 | |||||||||
Inventories | 2,729 | 2,773 | |||||||||
Prepaid expenses | 136 | 132 | |||||||||
Other current assets | 716 | 574 | |||||||||
Assets held for sale | 11 | 1,863 | |||||||||
Total current assets | 8,994 | 10,822 | |||||||||
Property, plant and equipment, net | 6,806 | 6,876 | |||||||||
Goodwill | 31,296 | 33,089 | |||||||||
Intangible assets, net | 43,542 | 46,667 | |||||||||
Other non-current assets | 2,756 | 2,376 | |||||||||
TOTAL ASSETS | $ | 93,394 | $ | 99,830 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Commercial paper and other short-term debt | $ | 14 | $ | 6 | |||||||
Current portion of long-term debt | 740 | 230 | |||||||||
Trade payables | 4,753 | 4,304 | |||||||||
Accrued marketing | 804 | 946 | |||||||||
Interest payable | 268 | 358 | |||||||||
Income taxes payable | 541 | 114 | |||||||||
Other current liabilities | 1,944 | 2,086 | |||||||||
Liabilities held for sale | — | 17 | |||||||||
Total current liabilities | 9,064 | 8,061 | |||||||||
Long-term debt | 21,061 | 28,070 | |||||||||
Deferred income taxes | 10,536 | 11,462 | |||||||||
Accrued postemployment costs | 205 | 243 | |||||||||
Long-term deferred income | 1,534 | 6 | |||||||||
Other non-current liabilities | 1,542 | 1,745 | |||||||||
TOTAL LIABILITIES | 43,942 | 49,587 | |||||||||
Commitments and Contingencies (Note 16) | 0 | 0 | |||||||||
Redeemable noncontrolling interest | 4 | — | |||||||||
Equity: | |||||||||||
Common stock, $0.01 par value (5,000 shares authorized; 1,235 shares issued and 1,224 shares outstanding at December 25, 2021; 1,228 shares issued and 1,223 shares outstanding at December 26, 2020) | 12 | 12 | |||||||||
Additional paid-in capital | 53,379 | 55,096 | |||||||||
Retained earnings/(deficit) | (1,682) | (2,694) | |||||||||
Accumulated other comprehensive income/(losses) | (1,824) | (1,967) | |||||||||
Treasury stock, at cost (11 shares at December 25, 2021 and 5 shares at December 26, 2020) | (587) | (344) | |||||||||
Total shareholders' equity | 49,298 | 50,103 | |||||||||
Noncontrolling interest | 150 | 140 | |||||||||
TOTAL EQUITY | 49,448 | 50,243 | |||||||||
TOTAL LIABILITIES AND EQUITY | $ | 93,394 | $ | 99,830 |
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 | Additional Paid-in Capital | Retained Earnings/(Deficit) | Accumulated Other Comprehensive Income/(Losses) | Treasury Stock, at Cost | Noncontrolling Interest | Total Equity | |||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
Net income/(loss) excluding redeemable noncontrolling interest | — | — | 356 | — | — | 15 | 371 | ||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | — | — | — | (81) | — | 3 | (78) | ||||||||||||||||||||||||||||||||||
Dividends declared-common stock ($1.60 per share) | — | (1,973) | — | — | — | — | (1,973) | ||||||||||||||||||||||||||||||||||
Dividends declared-noncontrolling interest ($75.32 per share) | — | — | — | — | — | (4) | (4) | ||||||||||||||||||||||||||||||||||
Exercise of stock options, issuance of other stock awards, and other | — | 241 | 10 | — | (73) | — | 178 | ||||||||||||||||||||||||||||||||||
Balance at December 26, 2020 | 12 | 55,096 | (2,694) | (1,967) | (344) | 140 | 50,243 | ||||||||||||||||||||||||||||||||||
Net income/(loss) excluding redeemable noncontrolling interest | — | — | 1,012 | — | — | 12 | 1,024 | ||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | — | — | — | 143 | — | 6 | 149 | ||||||||||||||||||||||||||||||||||
Dividends declared-common stock ($1.60 per share) | — | (1,979) | — | — | — | — | (1,979) | ||||||||||||||||||||||||||||||||||
Dividends declared-noncontrolling interest ($108.71 per share) | — | — | — | — | — | (8) | (8) | ||||||||||||||||||||||||||||||||||
Exercise of stock options, issuance of other stock awards, and other | — | 262 | — | — | (243) | — | 19 | ||||||||||||||||||||||||||||||||||
Balance at December 25, 2021 | $ | 12 | $ | 53,379 | $ | (1,682) | $ | (1,824) | $ | (587) | $ | 150 | $ | 49,448 |
December 28, 2019 | December 29, 2018 | December 30, 2017 | December 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||||||||||
Net income/(loss) | $ | 1,933 | $ | (10,254 | ) | $ | 10,932 | Net income/(loss) | $ | 1,024 | $ | 361 | $ | 1,933 | ||||||||||||||
Adjustments to reconcile net income/(loss) to operating cash flows: | Adjustments to reconcile net income/(loss) to operating cash flows: | |||||||||||||||||||||||||||
Depreciation and amortization | 994 | 983 | 1,031 | Depreciation and amortization | 910 | 969 | 994 | |||||||||||||||||||||
Amortization of postretirement benefit plans prior service costs/(credits) | (306 | ) | (339 | ) | (328 | ) | ||||||||||||||||||||||
Amortization of postemployment benefit plans prior service costs/(credits) | Amortization of postemployment benefit plans prior service costs/(credits) | (7) | (122) | (306) | ||||||||||||||||||||||||
Divestiture-related license income | Divestiture-related license income | (4) | — | — | ||||||||||||||||||||||||
Equity award compensation expense | 46 | 33 | 46 | Equity award compensation expense | 197 | 156 | 46 | |||||||||||||||||||||
Deferred income tax provision/(benefit) | (293 | ) | (1,967 | ) | (6,495 | ) | Deferred income tax provision/(benefit) | (1,042) | (343) | (293) | ||||||||||||||||||
Postemployment benefit plan contributions | (32 | ) | (76 | ) | (1,659 | ) | Postemployment benefit plan contributions | (27) | (27) | (32) | ||||||||||||||||||
Goodwill and intangible asset impairment losses | 1,899 | 15,936 | 49 | Goodwill and intangible asset impairment losses | 1,634 | 3,399 | 1,899 | |||||||||||||||||||||
Nonmonetary currency devaluation | 10 | 146 | 36 | Nonmonetary currency devaluation | — | 6 | 10 | |||||||||||||||||||||
Loss/(gain) on sale of business | (420 | ) | 15 | — | Loss/(gain) on sale of business | (44) | 2 | (420) | ||||||||||||||||||||
Proceeds from sale of license | Proceeds from sale of license | 1,587 | — | — | ||||||||||||||||||||||||
Loss on extinguishment of debt | Loss on extinguishment of debt | 917 | 124 | 98 | ||||||||||||||||||||||||
Other items, net | (46 | ) | 160 | 253 | Other items, net | (187) | (54) | (142) | ||||||||||||||||||||
Changes in current assets and liabilities: | Changes in current assets and liabilities: | |||||||||||||||||||||||||||
Trade receivables | 140 | (2,280 | ) | (2,629 | ) | Trade receivables | 87 | (26) | 140 | |||||||||||||||||||
Inventories | (277 | ) | (251 | ) | (236 | ) | Inventories | (144) | (249) | (307) | ||||||||||||||||||
Accounts payable | (58 | ) | (23 | ) | 441 | Accounts payable | 408 | 207 | (58) | |||||||||||||||||||
Other current assets | 52 | (146 | ) | (64 | ) | Other current assets | (32) | 40 | 80 | |||||||||||||||||||
Other current liabilities | (90 | ) | 637 | (876 | ) | Other current liabilities | 87 | 486 | (90) | |||||||||||||||||||
Net cash provided by/(used for) operating activities | 3,552 | 2,574 | 501 | Net cash provided by/(used for) operating activities | 5,364 | 4,929 | 3,552 | |||||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||||||
Cash receipts on sold receivables | — | 1,296 | 2,286 | |||||||||||||||||||||||||
Capital expenditures | (768 | ) | (826 | ) | (1,194 | ) | Capital expenditures | (905) | (596) | (768) | ||||||||||||||||||
Payments to acquire business, net of cash acquired | (199 | ) | (248 | ) | — | Payments to acquire business, net of cash acquired | (74) | — | (199) | |||||||||||||||||||
Proceeds from net investment hedges | 590 | 24 | 6 | |||||||||||||||||||||||||
Settlement of net investment hedges | Settlement of net investment hedges | (28) | 25 | 590 | ||||||||||||||||||||||||
Proceeds from sale of business, net of cash disposed | 1,875 | 18 | — | Proceeds from sale of business, net of cash disposed | 5,014 | — | 1,875 | |||||||||||||||||||||
Other investing activities, net | 13 | 24 | 79 | Other investing activities, net | 31 | 49 | 13 | |||||||||||||||||||||
Net cash provided by/(used for) investing activities | 1,511 | 288 | 1,177 | Net cash provided by/(used for) investing activities | 4,038 | (522) | 1,511 | |||||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||||||||
Repayments of long-term debt | (4,795 | ) | (2,713 | ) | (2,641 | ) | Repayments of long-term debt | (6,202) | (4,697) | (4,795) | ||||||||||||||||||
Proceeds from issuance of long-term debt | 2,967 | 2,990 | 1,496 | Proceeds from issuance of long-term debt | — | 3,500 | 2,967 | |||||||||||||||||||||
Debt prepayment and extinguishment costs | (99 | ) | — | — | Debt prepayment and extinguishment costs | (924) | (116) | (99) | ||||||||||||||||||||
Proceeds from revolving credit facility | Proceeds from revolving credit facility | — | 4,000 | — | ||||||||||||||||||||||||
Repayments of revolving credit facility | Repayments of revolving credit facility | — | (4,000) | — | ||||||||||||||||||||||||
Proceeds from issuance of commercial paper | 557 | 2,784 | 6,043 | Proceeds from issuance of commercial paper | — | — | 557 | |||||||||||||||||||||
Repayments of commercial paper | (557 | ) | (3,213 | ) | (6,249 | ) | Repayments of commercial paper | — | — | (557) | ||||||||||||||||||
Dividends paid | (1,953 | ) | (3,183 | ) | (2,888 | ) | Dividends paid | (1,959) | (1,958) | (1,953) | ||||||||||||||||||
Other financing activities, net | (33 | ) | (28 | ) | 18 | Other financing activities, net | (259) | (60) | (33) | |||||||||||||||||||
Net cash provided by/(used for) financing activities | (3,913 | ) | (3,363 | ) | (4,221 | ) | Net cash provided by/(used for) financing activities | (9,344) | (3,331) | (3,913) | ||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (6 | ) | (132 | ) | 57 | Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (30) | 62 | (6) | |||||||||||||||||||
Cash, cash equivalents, and restricted cash | Cash, cash equivalents, and restricted cash | |||||||||||||||||||||||||||
Net increase/(decrease) | 1,144 | (633 | ) | (2,486 | ) | Net increase/(decrease) | 28 | 1,138 | 1,144 | |||||||||||||||||||
Balance at beginning of period | 1,136 | 1,769 | 4,255 | Balance at beginning of period | 3,418 | 2,280 | 1,136 | |||||||||||||||||||||
Balance at end of period | $ | 2,280 | $ | 1,136 | $ | 1,769 | Balance at end of period | $ | 3,446 | $ | 3,418 | $ | 2,280 | |||||||||||||||
NON-CASH INVESTING ACTIVITIES: | ||||||||||||||||||||||||||||
Beneficial interest obtained in exchange for securitized trade receivables | $ | — | $ | 938 | $ | 2,519 | ||||||||||||||||||||||
CASH PAID DURING THE PERIOD FOR: | CASH PAID DURING THE PERIOD FOR: | |||||||||||||||||||||||||||
Interest | $ | 1,306 | $ | 1,322 | $ | 1,269 | Interest | $ | 1,196 | $ | 1,286 | $ | 1,306 | |||||||||||||||
Income taxes | 974 | 543 | 1,206 | |||||||||||||||||||||||||
Income taxes, net of refunds | Income taxes, net of refunds | 1,295 | 1,027 | 974 |
•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 and any off-market values 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 and any amortization of off-market values 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 euro, British pound sterling, 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 (when interest is not a hedged item) 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 vegetable oils, corn products, sugar, coffee beans, wheat products, meat products, dairy |
Cash | $ | 4 | |||
Trade receivables | 24 | ||||
Inventories | 26 | ||||
Other current assets | 2 | ||||
Property, plant and equipment, net | 12 | ||||
Other non-current assets | 4 | ||||
Short-term debt | (21) | ||||
Current portion of long-term debt | (5) | ||||
Trade payables | (25) | ||||
Other current liabilities | (2) | ||||
Long-term debt | (4) | ||||
Net assets acquired | 15 | ||||
Goodwill on acquisition | 64 | ||||
Total consideration | $ | 79 |
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 | $ | 2 | |||
Other current assets | 15 | ||||
Identifiable intangible assets | 66 | ||||
Current liabilities | (6) | ||||
Net assets acquired | 77 | ||||
Goodwill on acquisition | 124 | ||||
Total consideration | $ | 201 |
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 |
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 |
Proceeds | $ | 655 | |
Less investment in Heinz India | (355 | ) | |
Recognition of tax indemnification | (48 | ) | |
Other | (3 | ) | |
Pre-tax gain on sale of Heinz India | $ | 249 |
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 |
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 |
December 25, 2021 | December 26, 2020 | ||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | — | $ | 33 | |||||||
Inventories | 5 | 385 | |||||||||
Property, plant and equipment, net | 5 | 257 | |||||||||
Goodwill (net of impairment of $300 at December 26, 2020) | — | 281 | |||||||||
Intangible assets, net | 1 | 873 | |||||||||
Other | — | 34 | |||||||||
Total assets held for sale | $ | 11 | $ | 1,863 | |||||||
LIABILITIES | |||||||||||
Other | — | 17 | |||||||||
Total liabilities held for sale | $ | — | $ | 17 |
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 | Total | |||||||||||||||
Balance at December 26, 2020 | $ | 10 | $ | 20 | $ | 30 | |||||||||||
Charges/(credits) | 34 | — | 34 | ||||||||||||||
Cash payments | (17) | (4) | (21) | ||||||||||||||
Balance at December 25, 2021 | $ | 27 | $ | 16 | $ | 43 |
December 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||
Severance and employee benefit costs - COGS | $ | (3 | ) | $ | 12 | $ | 9 | ||||
Severance and employee benefit costs - SG&A | 14 | 32 | 26 | ||||||||
Severance and employee benefit costs - Other expense/(income) | 4 | 6 | (149 | ) | |||||||
Asset-related costs - COGS | 29 | 59 | 191 | ||||||||
Asset-related costs - SG&A | 8 | 36 | 26 | ||||||||
Other costs - COGS | 22 | 123 | 264 | ||||||||
Other costs - SG&A | 32 | 35 | 67 | ||||||||
Other costs - Other expense/(income) | 2 | 157 | — | ||||||||
$ | 108 | $ | 460 | $ | 434 |
December 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
Severance and employee benefit costs - Cost of products sold | $ | 12 | $ | — | $ | (3) | |||||||||||
Severance and employee benefit costs - SG&A | 21 | 1 | 14 | ||||||||||||||
Severance and employee benefit costs - Other expense/(income) | 1 | — | 4 | ||||||||||||||
Asset-related costs - Cost of products sold | — | 13 | 29 | ||||||||||||||
Asset-related costs - SG&A | — | — | 8 | ||||||||||||||
Other costs - Cost of products sold | 1 | (33) | 22 | ||||||||||||||
Other costs - SG&A | 49 | 34 | 32 | ||||||||||||||
Other costs - Other expense/(income) | — | (17) | 2 | ||||||||||||||
$ | 84 | $ | (2) | $ | 108 |
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 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
United States | $ | 9 | $ | (10) | $ | 37 | |||||||||||
International | 22 | (15) | 29 | ||||||||||||||
Canada | 6 | 14 | 18 | ||||||||||||||
General corporate expenses | 47 | 9 | 24 | ||||||||||||||
$ | 84 | $ | (2) | $ | 108 |
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 25, 2021 | December 26, 2020 | ||||||||||
Cash and cash equivalents | $ | 3,445 | $ | 3,417 | |||||||
Restricted cash included in other non-current assets | 1 | 1 | |||||||||
Cash, cash equivalents, and restricted cash | $ | 3,446 | $ | 3,418 |
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 25, 2021 | December 26, 2020 | ||||||||||
Packaging and ingredients | $ | 571 | $ | 482 | |||||||
Spare parts | 208 | 219 | |||||||||
Work in process | 268 | 268 | |||||||||
Finished product | 1,682 | 1,804 | |||||||||
Inventories | $ | 2,729 | $ | 2,773 |
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 25, 2021 | December 26, 2020 | ||||||||||
Land | $ | 207 | $ | 219 | |||||||
Buildings and improvements | 2,508 | 2,514 | |||||||||
Equipment and other | 6,957 | 6,914 | |||||||||
Construction in progress | 1,002 | 792 | |||||||||
10,674 | 10,439 | ||||||||||
Accumulated depreciation | (3,868) | (3,563) | |||||||||
Property, plant and equipment, net | $ | 6,806 | $ | 6,876 |
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 | International | Canada | Total | ||||||||||||||||||||
Balance at December 26, 2020 | $ | 28,429 | $ | 3,160 | $ | 1,500 | $ | 33,089 | |||||||||||||||
Impairment losses | (35) | (53) | — | (88) | |||||||||||||||||||
Acquisitions | — | 74 | — | 74 | |||||||||||||||||||
Divestitures | (1,653) | — | (9) | (1,662) | |||||||||||||||||||
Translation adjustments and other | 4 | (127) | 6 | (117) | |||||||||||||||||||
Balance at December 25, 2021 | $ | 26,745 | $ | 3,054 | $ | 1,497 | $ | 31,296 |
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 December 26, 2020 | $ | 42,267 | |||
Impairment losses | (1,307) | ||||
Divestitures | (1,487) | ||||
Translation adjustments | (54) | ||||
Balance at December 25, 2021 | $ | 39,419 |
December 28, 2019 | December 29, 2018 | ||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||
Trademarks | $ | 2,443 | $ | (469 | ) | $ | 1,974 | $ | 2,474 | $ | (402 | ) | $ | 2,072 | |||||||||
Customer-related assets | 4,113 | (845 | ) | 3,268 | 4,097 | (681 | ) | 3,416 | |||||||||||||||
Other | 14 | (4 | ) | 10 | 18 | (4 | ) | 14 | |||||||||||||||
$ | 6,570 | $ | (1,318 | ) | $ | 5,252 | $ | 6,589 | $ | (1,087 | ) | $ | 5,502 |
December 25, 2021 | December 26, 2020 | ||||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
Trademarks | $ | 2,091 | $ | (556) | $ | 1,535 | $ | 2,000 | $ | (478) | $ | 1,522 | |||||||||||||||||||||||
Customer-related assets | 3,617 | (1,040) | 2,577 | 3,808 | (942) | 2,866 | |||||||||||||||||||||||||||||
Other | 17 | (6) | 11 | 15 | (3) | 12 | |||||||||||||||||||||||||||||
$ | 5,725 | $ | (1,602) | $ | 4,123 | $ | 5,823 | $ | (1,423) | $ | 4,400 |
December 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
Income/(loss) before income taxes: | |||||||||||||||||
United States | $ | (215) | $ | 363 | $ | 796 | |||||||||||
Non-U.S. | 1,923 | 667 | 1,865 | ||||||||||||||
Total | $ | 1,708 | $ | 1,030 | $ | 2,661 | |||||||||||
Provision for/(benefit from) income taxes: | |||||||||||||||||
Current: | |||||||||||||||||
U.S. federal | $ | 1,421 | $ | 634 | $ | 466 | |||||||||||
U.S. state and local | 120 | 91 | 116 | ||||||||||||||
Non-U.S. | 185 | 287 | 439 | ||||||||||||||
1,726 | 1,012 | 1,021 | |||||||||||||||
Deferred: | |||||||||||||||||
U.S. federal | (1,086) | (232) | (209) | ||||||||||||||
U.S. state and local | (211) | (109) | (7) | ||||||||||||||
Non-U.S. | 255 | (2) | (77) | ||||||||||||||
(1,042) | (343) | (293) | |||||||||||||||
Total provision for/(benefit from) income taxes | $ | 684 | $ | 669 | $ | 728 |
December 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
U.S. federal statutory tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
Tax on income of foreign subsidiaries | (12.9) | % | (26.1) | % | (7.5) | % | |||||||||||
U.S. state and local income taxes, net of federal tax benefit | (0.5) | % | 0.6 | % | 1.1 | % | |||||||||||
Audit settlements and changes in uncertain tax positions | 0.4 | % | 3.7 | % | 1.3 | % | |||||||||||
Global intangible low-taxed income | 5.5 | % | 6.5 | % | 1.8 | % | |||||||||||
Goodwill impairment | 4.7 | % | 57.2 | % | 9.3 | % | |||||||||||
(Losses)/gains related to acquisitions and divestitures | 12.9 | % | 0.1 | % | 1.0 | % | |||||||||||
Movement of valuation allowance reserves | 0.1 | % | (0.4) | % | 1.3 | % | |||||||||||
Deferred tax effect of tax law changes | 9.8 | % | (2.1) | % | (0.5) | % | |||||||||||
Other | (0.9) | % | 4.5 | % | (1.4) | % | |||||||||||
Effective tax rate | 40.1 | % | 65.0 | % | 27.4 | % |
December 25, 2021 | December 26, 2020 | ||||||||||
Deferred income tax liabilities: | |||||||||||
Intangible assets, net | $ | 10,215 | $ | 11,041 | |||||||
Property, plant and equipment, net | 765 | 764 | |||||||||
Other | 335 | 183 | |||||||||
Deferred income tax liabilities | 11,315 | 11,988 | |||||||||
Deferred income tax assets: | |||||||||||
Benefit plans | (84) | (177) | |||||||||
Deferred income | (373) | (29) | |||||||||
Other | (557) | (552) | |||||||||
Deferred income tax assets | (1,014) | (758) | |||||||||
Valuation allowance | 101 | 105 | |||||||||
Net deferred income tax liabilities | $ | 10,402 | $ | 11,335 |
December 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
Balance at the beginning of the period | $ | 421 | $ | 406 | $ | 387 | |||||||||||
Increases for tax positions of prior years | 13 | 13 | 28 | ||||||||||||||
Decreases for tax positions of prior years | (51) | (34) | (39) | ||||||||||||||
Increases based on tax positions related to the current year | 75 | 57 | 60 | ||||||||||||||
Decreases due to settlements with taxing authorities | (1) | (8) | (20) | ||||||||||||||
Decreases due to lapse of statute of limitations | (16) | (13) | (10) | ||||||||||||||
Balance at the end of the period | $ | 441 | $ | 421 | $ | 406 |
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 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 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 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 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 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
Risk-free interest rate | 1.03 | % | 0.45 | % | 1.46 | % | |||||||||||
Expected term | 6.5 years | 6.5 years | 6.5 years | ||||||||||||||
Expected volatility | 32.1 | % | 33.6 | % | 31.2 | % | |||||||||||
Expected dividend yield | 4.6 | % | 5.7 | % | 5.3 | % | |||||||||||
Weighted average grant date fair value per share | $ | 6.63 | $ | 4.77 | $ | 4.11 |
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 (per share) | Aggregate Intrinsic Value (in millions) | Average Remaining Contractual Term | ||||||||||||||||||||
Outstanding at December 26, 2020 | 13,479,668 | $ | 43.71 | ||||||||||||||||||||
Granted | 1,021,901 | 37.05 | |||||||||||||||||||||
Forfeited | (733,998) | 53.02 | |||||||||||||||||||||
Exercised | (1,989,503) | 26.63 | |||||||||||||||||||||
Outstanding at December 25, 2021 | 11,778,068 | 45.43 | $ | 36 | 4 years | ||||||||||||||||||
Exercisable at December 25, 2021 | 7,369,931 | 45.04 | 21 | 3 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 Stock Options | Weighted Average Grant Date Fair Value (per share) | ||||||||||
Unvested options at December 26, 2020 | 4,919,593 | $ | 8.37 | ||||||||
Granted | 1,021,901 | 6.63 | |||||||||
Forfeited | (93,249) | 5.95 | |||||||||
Vested | (1,440,108) | 9.89 | |||||||||
Unvested options at December 25, 2021 | 4,408,137 | 7.52 |
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) | ||||||||||
Outstanding at December 26, 2020 | 14,235,922 | $ | 31.32 | ||||||||
Granted | 3,370,438 | 36.36 | |||||||||
Forfeited | (1,564,027) | 31.06 | |||||||||
Vested | (3,565,943) | 30.03 | |||||||||
Outstanding at December 25, 2021 | 12,476,390 | 33.08 |
Number of Units | Weighted Average Grant Date Fair Value (per share) | ||||||||||
Outstanding at December 26, 2020 | 7,778,710 | $ | 33.16 | ||||||||
Granted | 1,571,066 | 35.03 | |||||||||
Forfeited | (2,213,616) | 52.03 | |||||||||
Vested | (1,816,180) | 29.16 | |||||||||
Outstanding at December 25, 2021 | 5,319,980 | 27.24 |
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 28, 2019 | December 29, 2018 | December 30, 2017 | |||||||||
Pre-tax compensation cost | $ | 46 | $ | 33 | $ | 46 | |||||
Related tax benefit | (9 | ) | (7 | ) | (14 | ) | |||||
After-tax compensation cost | $ | 37 | $ | 26 | $ | 32 |
December 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
Pre-tax compensation cost | $ | 197 | $ | 156 | $ | 46 | |||||||||||
Related tax benefit | (43) | (33) | (9) | ||||||||||||||
After-tax compensation cost | $ | 154 | $ | 123 | $ | 37 |
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
December 25, 2021 | December 26, 2020 | December 25, 2021 | December 26, 2020 | ||||||||||||||||||||
Benefit obligation at beginning of year | $ | 4,191 | $ | 4,501 | $ | 2,359 | $ | 2,187 | |||||||||||||||
Service cost | 5 | 6 | 16 | 16 | |||||||||||||||||||
Interest cost | 90 | 123 | 29 | 38 | |||||||||||||||||||
Benefits paid | (132) | (189) | (116) | (115) | |||||||||||||||||||
Actuarial losses/(gains)(a) | (125) | 421 | (35) | 144 | |||||||||||||||||||
Plan amendments | — | — | — | 5 | |||||||||||||||||||
Currency | — | — | (28) | 84 | |||||||||||||||||||
Settlements(b) | (180) | (671) | (2) | — | |||||||||||||||||||
Special/contractual termination benefits | 3 | — | 1 | — | |||||||||||||||||||
Other | — | — | — | — | |||||||||||||||||||
Benefit obligation at end of year | 3,852 | 4,191 | 2,224 | 2,359 | |||||||||||||||||||
Fair value of plan assets at beginning of year | 4,627 | 4,835 | 3,023 | 2,841 | |||||||||||||||||||
Actual return on plan assets | 130 | 652 | 28 | 176 | |||||||||||||||||||
Employer contributions | — | — | 15 | 15 | |||||||||||||||||||
Benefits paid | (132) | (189) | (117) | (114) | |||||||||||||||||||
Currency | — | — | (37) | 108 | |||||||||||||||||||
Settlements(b) | (180) | (671) | (2) | — | |||||||||||||||||||
Other | — | — | — | (3) | |||||||||||||||||||
Fair value of plan assets at end of year | 4,445 | 4,627 | 2,910 | 3,023 | |||||||||||||||||||
Net pension liability/(asset) recognized at end of year | $ | (593) | $ | (436) | $ | (686) | $ | (664) |
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 | ) |
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 25, 2021 | December 26, 2020 | ||||||||||
Other non-current assets | $ | 1,366 | $ | 1,205 | |||||||
Other current liabilities | (5) | (6) | |||||||||
Accrued postemployment costs | (82) | (99) | |||||||||
Net pension asset/(liability) recognized | $ | 1,279 | $ | 1,100 |
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 25, 2021 | December 26, 2020 | December 25, 2021 | December 26, 2020 | ||||||||||||||||||||
Projected benefit obligation | $ | — | $ | — | $ | 162 | $ | 181 | |||||||||||||||
Accumulated benefit obligation | — | — | 155 | 174 | |||||||||||||||||||
Fair value of plan assets | — | — | 75 | 76 |
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 25, 2021 | December 26, 2020 | December 25, 2021 | December 26, 2020 | ||||||||||||||||||||
Projected benefit obligation | $ | — | $ | — | $ | 162 | $ | 181 | |||||||||||||||
Accumulated benefit obligation | — | — | 155 | 174 | |||||||||||||||||||
Fair value of plan assets | — | — | 75 | 76 |
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 25, 2021 | December 26, 2020 | December 25, 2021 | December 26, 2020 | ||||||||||||||||||||
Discount rate | 3.1 | % | 2.8 | % | 1.9 | % | 1.5 | % | |||||||||||||||
Rate of compensation increase | 4.0 | % | 4.0 | % | 3.8 | % | 3.5 | % |
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 25, 2021 | December 26, 2020 | December 28, 2019 | December 25, 2021 | December 26, 2020 | December 28, 2019 | ||||||||||||||||||||||||||||||
Service cost | $ | 5 | $ | 6 | $ | 7 | $ | 16 | $ | 16 | $ | 17 | |||||||||||||||||||||||
Interest cost | 90 | 123 | 163 | 29 | 38 | 51 | |||||||||||||||||||||||||||||
Expected return on plan assets | (186) | (206) | (229) | (94) | (103) | (143) | |||||||||||||||||||||||||||||
Amortization of prior service costs/(credits) | — | — | — | 1 | — | — | |||||||||||||||||||||||||||||
Amortization of unrecognized losses/(gains) | — | — | — | 2 | 1 | 1 | |||||||||||||||||||||||||||||
Settlements | (11) | (24) | — | 1 | — | 1 | |||||||||||||||||||||||||||||
Curtailments | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Special/contractual termination benefits | 3 | — | — | 1 | — | 4 | |||||||||||||||||||||||||||||
Net pension cost/(benefit) | $ | (99) | $ | (101) | $ | (59) | $ | (44) | $ | (48) | $ | (69) |
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 25, 2021 | December 26, 2020 | December 28, 2019 | December 25, 2021 | December 26, 2020 | December 28, 2019 | ||||||||||||||||||||||||||||||
Discount rate - Service cost | 3.1 | % | 3.5 | % | 4.6 | % | 2.1 | % | 2.5 | % | 3.3 | % | |||||||||||||||||||||||
Discount rate - Interest cost | 2.3 | % | 2.8 | % | 4.1 | % | 1.2 | % | 1.8 | % | 2.6 | % | |||||||||||||||||||||||
Expected rate of return on plan assets | 4.2 | % | 4.4 | % | 5.7 | % | 3.1 | % | 3.8 | % | 5.4 | % | |||||||||||||||||||||||
Rate of compensation increase | 4.0 | % | 4.1 | % | 4.1 | % | 3.5 | % | 3.7 | % | 3.9 | % |
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 25, 2021 | December 26, 2020 | December 25, 2021 | December 26, 2020 | ||||||||||||||||||||
Fixed-income securities | 83 | % | 81 | % | 53 | % | 57 | % | |||||||||||||||
Equity securities | 16 | % | 16 | % | 21 | % | 23 | % | |||||||||||||||
Cash and cash equivalents | 1 | % | 3 | % | 9 | % | 18 | % | |||||||||||||||
Real estate | — | % | — | % | — | % | 1 | % | |||||||||||||||
Certain insurance contracts | — | % | — | % | 17 | % | 1 | % | |||||||||||||||
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) | |||||||||||||||||||
Government bonds | $ | 316 | $ | 316 | $ | — | $ | — | |||||||||||||||
Corporate bonds and other fixed-income securities | 4,092 | — | 4,092 | — | |||||||||||||||||||
Total fixed-income securities | 4,408 | 316 | 4,092 | — | |||||||||||||||||||
Equity securities | 171 | 171 | — | — | |||||||||||||||||||
Cash and cash equivalents | 247 | 245 | 2 | — | |||||||||||||||||||
Real estate | 6 | — | — | 6 | |||||||||||||||||||
Certain insurance contracts | 488 | — | — | 488 | |||||||||||||||||||
Fair value excluding investments measured at net asset value | 5,320 | 732 | 4,094 | 494 | |||||||||||||||||||
Investments measured at net asset value(a) | 2,035 | ||||||||||||||||||||||
Total plan assets at fair value | $ | 7,355 |
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) | |||||||||||
Corporate bonds and other fixed-income securities | $ | 3,642 | $ | — | $ | 3,639 | $ | 3 | |||||||
Government bonds | 358 | 358 | — | — | |||||||||||
Total fixed-income securities | 4,000 | 358 | 3,639 | 3 | |||||||||||
Equity securities | 775 | 775 | — | — | |||||||||||
Cash and cash equivalents | 414 | 413 | 1 | — | |||||||||||
Real estate | 45 | — | — | 45 | |||||||||||
Certain insurance contracts | 49 | — | — | 49 | |||||||||||
Fair value excluding investments measured at net asset value | 5,283 | 1,546 | 3,640 | 97 | |||||||||||
Investments measured at net asset value(a) | 2,393 | ||||||||||||||
Total plan assets at fair value | $ | 7,676 |
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 | $ | 320 | $ | 320 | $ | — | $ | — | |||||||||||||||
Corporate bonds and other fixed-income securities | 3,532 | — | 3,531 | 1 | |||||||||||||||||||
Total fixed-income securities | 3,852 | 320 | 3,531 | 1 | |||||||||||||||||||
Equity securities | 232 | 232 | — | — | |||||||||||||||||||
Cash and cash equivalents | 545 | 542 | 3 | — | |||||||||||||||||||
Real estate | 35 | — | — | 35 | |||||||||||||||||||
Certain insurance contracts | 47 | — | — | 47 | |||||||||||||||||||
Fair value excluding investments measured at net asset value | 4,711 | 1,094 | 3,534 | 83 | |||||||||||||||||||
Investments measured at net asset value(a) | 2,939 | ||||||||||||||||||||||
Total plan assets at fair value | $ | 7,650 |
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) | |||||||||||
Corporate bonds and other fixed-income securities | $ | 3,089 | $ | — | $ | 3,089 | $ | — | |||||||
Government bonds | 366 | 366 | — | — | |||||||||||
Total fixed-income securities | 3,455 | 366 | 3,089 | — | |||||||||||
Equity securities | 665 | 665 | — | — | |||||||||||
Cash and cash equivalents | 422 | 419 | 3 | — | |||||||||||
Real estate | 79 | — | — | 79 | |||||||||||
Certain insurance contracts | 53 | — | — | 53 | |||||||||||
Fair value excluding investments measured at net asset value | 4,674 | 1,450 | 3,092 | 132 | |||||||||||
Investments measured at net asset value(a) | 2,234 | ||||||||||||||
Total plan assets at fair value | $ | 6,908 |
•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. |
84 •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 | 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 | Asset Category | December 26, 2020 | Additions | Net Realized Gain/(Loss) | Net Unrealized Gain/(Loss) | Net Purchases, Issuances and Settlements | Transfers Into/(Out of) Level 3 | December 25, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | $ | 79 | $ | — | $ | 2 | $ | 2 | $ | (38 | ) | $ | — | $ | 45 | Real estate | $ | 35 | $ | — | $ | (1) | $ | (1) | $ | (27) | $ | — | $ | 6 | ||||||||||||||||||||||||||||||||||||||
Corporate bonds and other fixed-income securities | — | — | — | — | — | 3 | 3 | Corporate bonds and other fixed-income securities | 1 | — | — | — | — | (1) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Certain insurance contracts | 53 | — | — | 1 | (5 | ) | — | 49 | Certain insurance contracts | 47 | 464 | — | (13) | (10) | — | 488 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Level 3 investments | $ | 132 | $ | — | $ | 2 | $ | 3 | $ | (43 | ) | $ | 3 | $ | 97 | Total Level 3 investments | $ | 83 | $ | 464 | $ | (1) | $ | (14) | $ | (37) | $ | (1) | $ | 494 |
Asset Category | 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 | ||||||||||||||||||||
Real estate | $ | 262 | $ | — | $ | 49 | $ | (7 | ) | $ | (210 | ) | $ | (15 | ) | $ | 79 | ||||||||||
Certain insurance contracts | 983 | — | (82 | ) | (3 | ) | (845 | ) | — | 53 | |||||||||||||||||
Total Level 3 investments | $ | 1,245 | $ | — | $ | (33 | ) | $ | (10 | ) | $ | (1,055 | ) | $ | (15 | ) | $ | 132 |
Asset Category | December 28, 2019 | Additions | Net Realized Gain/(Loss) | Net Unrealized Gain/(Loss) | Net Purchases, Issuances and Settlements | Transfers Into/(Out of) Level 3 | December 26, 2020 | ||||||||||||||||||||||||||||||||||
Real estate | $ | 45 | $ | — | $ | (1) | $ | (6) | $ | — | $ | (3) | $ | 35 | |||||||||||||||||||||||||||
Corporate bonds and other fixed-income securities | 3 | — | — | — | — | (2) | 1 | ||||||||||||||||||||||||||||||||||
Certain insurance contracts | 49 | — | — | 3 | (5) | — | 47 | ||||||||||||||||||||||||||||||||||
Total Level 3 investments | $ | 97 | $ | — | $ | (1) | $ | (3) | $ | (5) | $ | (5) | $ | 83 |
U.S. Plans | Non-U.S. Plans | ||||||||||
2022 | $ | 331 | $ | 87 | |||||||
2023 | 314 | 83 | |||||||||
2024 | 304 | 84 | |||||||||
2025 | 294 | 87 | |||||||||
2026 | 271 | 90 | |||||||||
2027-2031 | 1,124 | 477 |
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 |
December 25, 2021 | December 26, 2020 | ||||||||||
Benefit obligation at beginning of year | $ | 1,302 | $ | 1,313 | |||||||
Service cost | 6 | 6 | |||||||||
Interest cost | 20 | 33 | |||||||||
Benefits paid | (94) | (108) | |||||||||
Actuarial losses/(gains)(a) | (121) | 56 | |||||||||
Plan amendments(b) | (116) | — | |||||||||
Currency | 1 | 2 | |||||||||
Curtailments | (3) | — | |||||||||
Benefit obligation at end of year | 995 | 1,302 | |||||||||
Fair value of plan assets at beginning of year | 1,153 | 1,114 | |||||||||
Actual return on plan assets | 80 | 134 | |||||||||
Employer contributions | 13 | 13 | |||||||||
Benefits paid | (95) | (108) | |||||||||
Fair value of plan assets at end of year | 1,151 | 1,153 | |||||||||
Net postretirement benefit liability/(asset) recognized at end of year | $ | (156) | $ | 149 |
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 28, 2019 | December 29, 2018 | ||||||
Other current liabilities | $ | (15 | ) | $ | (14 | ) | |
Accrued postemployment costs | (184 | ) | (236 | ) | |||
Net postretirement benefit asset/(liability) recognized | $ | (199 | ) | $ | (250 | ) |
December 25, 2021 | December 26, 2020 | ||||||||||
Other non-current assets | $ | 287 | $ | 4 | |||||||
Other current liabilities | (8) | (8) | |||||||||
Accrued postemployment costs | (123) | (145) | |||||||||
Net postretirement benefit asset/(liability) recognized | $ | 156 | $ | (149) |
December 28, 2019 | December 29, 2018 | ||||||
Accumulated benefit obligation | $ | 1,313 | $ | 1,294 | |||
Fair value of plan assets | 1,114 | 1,044 |
December 25, 2021 | December 26, 2020 | ||||||||||
Accumulated benefit obligation | $ | 131 | $ | 153 | |||||||
Fair value of plan assets | — | — |
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 25, 2021 | December 26, 2020 | ||||||||||
Discount rate | 2.8 | % | 2.3 | % | |||||||
Health care cost trend rate assumed for next year | 5.9 | % | 6.2 | % | |||||||
Ultimate trend rate | 4.8 | % | 4.8 | % |
One-Percentage-Point | |||||||
Increase | (Decrease) | ||||||
Effect on annual service and interest cost | $ | 3 | $ | (2 | ) | ||
Effect on postretirement benefit obligation | 55 | (47 | ) |
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 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
Service cost | $ | 6 | $ | 6 | $ | 6 | |||||||||||
Interest cost | 20 | 33 | 46 | ||||||||||||||
Expected return on plan assets | (49) | (49) | (53) | ||||||||||||||
Amortization of prior service costs/(credits) | (8) | (122) | (306) | ||||||||||||||
Amortization of unrecognized losses/(gains) | (16) | (14) | (8) | ||||||||||||||
Curtailments | (4) | — | (5) | ||||||||||||||
Net postretirement cost/(benefit) | $ | (51) | $ | (146) | $ | (320) |
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 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
Discount rate - Service cost | 2.7 | % | 3.3 | % | 4.2 | % | |||||||||||
Discount rate - Interest cost | 1.6 | % | 2.7 | % | 3.8 | % | |||||||||||
Expected rate of return on plan assets | 4.4 | % | 4.7 | % | 5.4 | % | |||||||||||
Health care cost trend rate | 5.9 | % | 6.2 | % | 6.5 | % |
December 28, 2019 | December 29, 2018 | ||||
Fixed-income securities | 65 | % | 65 | % | |
Equity securities | 31 | % | 27 | % | |
Cash and cash equivalents | 4 | % | 8 | % |
December 25, 2021 | December 26, 2020 | ||||||||||
Fixed-income securities | 61 | % | 62 | % | |||||||
Equity securities | 36 | % | 34 | % | |||||||
Cash and cash equivalents | 3 | % | 4 | % |
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 | $ | 112 | $ | 112 | $ | — | $ | — | |||||||||||||||
Corporate bonds and other fixed-income securities | 590 | — | 590 | — | |||||||||||||||||||
Total fixed-income securities | 702 | 112 | 590 | — | |||||||||||||||||||
Equity securities | 236 | 236 | — | — | |||||||||||||||||||
Fair value excluding investments measured at net asset value | 938 | 348 | 590 | — | |||||||||||||||||||
Investments measured at net asset value | 213 | ||||||||||||||||||||||
Total plan assets at fair value | $ | 1,151 |
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 |
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 | $ | 121 | $ | 121 | $ | — | $ | — | |||||||||||||||
Corporate bonds and other fixed-income securities | 596 | — | 596 | — | |||||||||||||||||||
Total fixed-income securities | 717 | 121 | 596 | — | |||||||||||||||||||
Equity securities | 218 | 218 | — | — | |||||||||||||||||||
Fair value excluding investments measured at net asset value | 935 | 339 | 596 | — | |||||||||||||||||||
Investments measured at net asset value | 218 | ||||||||||||||||||||||
Total plan assets at fair value | $ | 1,153 |
•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. |
88 •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 |
2022 | $ | 93 | |||
2023 | 89 | ||||
2024 | 84 | ||||
2025 | 80 | ||||
2026 | 76 | ||||
2027-2031 | 318 |
Pension Benefits | Postretirement Benefits | Total | |||||||||||||||||||||||||||||||||
December 25, 2021 | December 26, 2020 | December 25, 2021 | December 26, 2020 | December 25, 2021 | December 26, 2020 | ||||||||||||||||||||||||||||||
Net actuarial gain/(loss) | $ | 28 | $ | (3) | $ | 475 | $ | 224 | $ | 503 | $ | 221 | |||||||||||||||||||||||
Prior service credit/(cost) | (14) | (14) | 23 | 31 | 9 | 17 | |||||||||||||||||||||||||||||
$ | 14 | $ | (17) | $ | 498 | $ | 255 | $ | 512 | $ | 238 |
Pension Benefits | Postretirement Benefits | Total | |||||||||||||||||||||
December 28, 2019 | December 29, 2018 | December 28, 2019 | December 29, 2018 | December 28, 2019 | December 29, 2018 | ||||||||||||||||||
Net actuarial gain/(loss) | $ | 74 | $ | 175 | $ | 209 | $ | 177 | $ | 283 | $ | 352 | |||||||||||
Prior service credit/(cost) | (14 | ) | (14 | ) | 153 | 458 | 139 | 444 | |||||||||||||||
$ | 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 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
Net postemployment benefit gains/(losses) arising during the period: | |||||||||||||||||
Net actuarial gains/(losses) arising during the period - Pension Benefits | $ | 39 | $ | (55) | $ | (103) | |||||||||||
Net actuarial gains/(losses) arising during the period - Postretirement Benefits | 267 | 29 | 41 | ||||||||||||||
Prior service credits/(costs) arising during the period - Postretirement Benefits | — | — | 1 | ||||||||||||||
306 | (26) | (61) | |||||||||||||||
Tax benefit/(expense) | (77) | 4 | (5) | ||||||||||||||
$ | 229 | $ | (22) | $ | (66) | ||||||||||||
Reclassification of net postemployment benefit losses/(gains) to net income/(loss): | |||||||||||||||||
Amortization of unrecognized losses/(gains) - Pension Benefits | $ | 3 | $ | 2 | $ | 1 | |||||||||||
Amortization of unrecognized losses/(gains) - Postretirement Benefits | (16) | (14) | (8) | ||||||||||||||
Amortization of prior service costs/(credits) - Postretirement Benefits | (8) | (122) | (306) | ||||||||||||||
Net settlement and curtailment losses/(gains) - Pension Benefits | (11) | (24) | 1 | ||||||||||||||
Net settlement and curtailment losses/(gains) - Postretirement Benefits | — | — | (1) | ||||||||||||||
Other losses/(gains) on postemployment benefits | — | — | 1 | ||||||||||||||
(32) | (158) | (312) | |||||||||||||||
Tax (benefit)/expense | 6 | 40 | 78 | ||||||||||||||
$ | (26) | $ | (118) | $ | (234) |
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 |
Notional Amount | |||||||||||
December 25, 2021 | December 26, 2020 | ||||||||||
Commodity contracts | $ | 592 | $ | 384 | |||||||
Foreign exchange contracts | 3,359 | 3,658 | |||||||||
Cross-currency contracts | 7,239 | 8,189 |
December 25, 2021 | |||||||||||||||||||||||||||||||||||
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) | $ | — | $ | — | $ | 24 | $ | 19 | $ | 24 | $ | 19 | |||||||||||||||||||||||
Cross-currency contracts(b) | — | — | 247 | 212 | 247 | 212 | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||
Commodity contracts(c) | 41 | 17 | 2 | 5 | 43 | 22 | |||||||||||||||||||||||||||||
Foreign exchange contracts(a) | — | — | 15 | 18 | 15 | 18 | |||||||||||||||||||||||||||||
Total fair value | $ | 41 | $ | 17 | $ | 288 | $ | 254 | $ | 329 | $ | 271 |
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 |
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 |
December 26, 2020 | |||||||||||||||||||||||||||||||||||
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) | $ | — | $ | — | $ | 9 | $ | 46 | $ | 9 | $ | 46 | |||||||||||||||||||||||
Cross-currency contracts(b) | — | — | 298 | 333 | 298 | 333 | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||
Commodity contracts(c) | 50 | 14 | 3 | 1 | 53 | 15 | |||||||||||||||||||||||||||||
Foreign exchange contracts(a) | — | — | 20 | 9 | 20 | 9 | |||||||||||||||||||||||||||||
Total fair value | $ | 50 | $ | 14 | $ | 330 | $ | 389 | $ | 380 | $ | 403 |
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 25, 2021 | December 26, 2020 | December 28, 2019 | ||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||
Foreign exchange contracts | $ | (1) | $ | 1 | $ | — | Net sales | |||||||||||||||||||
Foreign exchange contracts | (11) | (2) | (36) | Cost of products sold | ||||||||||||||||||||||
Foreign exchange contracts (excluded component) | — | (2) | 2 | Cost of products sold | ||||||||||||||||||||||
Foreign exchange contracts | 1 | — | — | SG&A | ||||||||||||||||||||||
Foreign exchange contracts | — | — | (23) | Other expense/(income) | ||||||||||||||||||||||
Cross-currency contracts | (119) | 221 | 43 | Other expense/(income) | ||||||||||||||||||||||
Cross-currency contracts (excluded component) | 28 | 26 | 28 | Other expense/(income) | ||||||||||||||||||||||
Cross-currency contracts | (22) | (11) | — | Interest expense | ||||||||||||||||||||||
Net investment hedges: | ||||||||||||||||||||||||||
Foreign exchange contracts | 1 | 1 | 13 | Other expense/(income) | ||||||||||||||||||||||
Foreign exchange contracts (excluded component) | 2 | (2) | (1) | Interest expense | ||||||||||||||||||||||
Cross-currency contracts | 144 | (370) | (67) | Other expense/(income) | ||||||||||||||||||||||
Cross-currency contracts (excluded component) | 44 | 30 | 30 | Interest expense | ||||||||||||||||||||||
Total gains/(losses) recognized in statements of comprehensive income | $ | 67 | $ | (108) | $ | (11) |
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 25, 2021 | December 26, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Net sales | Cost of products sold | SG&A | 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 | $ | 26,042 | $ | 17,360 | $ | 5,222 | $ | 2,047 | $ | (295) | $ | 17,008 | $ | 1,394 | $ | (296) | |||||||||||||||||||||||||||||||
Gains/(losses) related to derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | (1) | $ | (46) | $ | (1) | $ | — | $ | — | $ | 19 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Foreign exchange contracts (excluded component) | — | (3) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Interest rate contracts | — | — | — | — | — | — | (2) | — | |||||||||||||||||||||||||||||||||||||||
Cross-currency contracts | — | — | — | (23) | (91) | — | (11) | 143 | |||||||||||||||||||||||||||||||||||||||
Cross-currency contracts (excluded component) | — | — | — | — | 27 | — | — | 26 | |||||||||||||||||||||||||||||||||||||||
Net investment hedges: | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts (excluded component) | — | — | — | 2 | — | — | (2) | — | |||||||||||||||||||||||||||||||||||||||
Cross-currency contracts (excluded component) | — | — | — | 36 | — | — | 25 | — | |||||||||||||||||||||||||||||||||||||||
Gains/(losses) related to derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||||||||||||
Commodity contracts | — | 158 | — | — | — | (69) | — | — | |||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | — | — | — | — | (31) | — | — | (15) | |||||||||||||||||||||||||||||||||||||||
Cross-currency contracts | — | — | — | — | 9 | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total gains/(losses) recognized in statements of income | $ | (1) | $ | 109 | $ | (1) | $ | 15 | $ | (86) | $ | (50) | $ | 10 | $ | 154 |
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 | ) |
December 28, 2019 | |||||||||||||||||
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) | |||||||||||
Gains/(losses) related to derivatives designated as hedging instruments: | |||||||||||||||||
Cash flow hedges: | |||||||||||||||||
Foreign exchange contracts | $ | 23 | $ | — | $ | (22) | |||||||||||
Foreign exchange contracts (excluded component) | — | — | — | ||||||||||||||
Interest rate contracts | — | (4) | — | ||||||||||||||
Cross-currency contracts | — | — | 23 | ||||||||||||||
Cross-currency contracts (excluded component) | — | — | 28 | ||||||||||||||
Net investment hedges: | |||||||||||||||||
Foreign exchange contracts | — | — | (6) | ||||||||||||||
Foreign exchange contracts (excluded component) | — | (1) | — | ||||||||||||||
Cross-currency contracts (excluded component) | — | 30 | — | ||||||||||||||
Gains/(losses) related to derivatives not designated as hedging instruments: | |||||||||||||||||
Commodity contracts | 43 | — | — | ||||||||||||||
Foreign exchange contracts | — | — | (1) | ||||||||||||||
Cross-currency contracts | — | — | 11 | ||||||||||||||
Total gains/(losses) recognized in statements of income | $ | 66 | $ | 25 | $ | 33 |
Foreign Currency Translation Adjustments | Net Postemployment Benefit Plan Adjustments | Net Cash Flow Hedge Adjustments | Total | ||||||||||||||||||||
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 actuarial gains/(losses) arising during the period | — | (70) | — | (70) | |||||||||||||||||||
Prior service credits/(costs) arising during the period | — | 1 | — | 1 | |||||||||||||||||||
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) | |||||||||||||||||||
Foreign currency translation adjustments | 324 | — | — | 324 | |||||||||||||||||||
Net deferred gains/(losses) on net investment hedges | (321) | — | — | (321) | |||||||||||||||||||
Amounts excluded from the effectiveness assessment of net investment hedges | 26 | — | — | 26 | |||||||||||||||||||
Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) | (17) | — | — | (17) | |||||||||||||||||||
Net deferred gains/(losses) on cash flow hedges | — | — | 144 | 144 | |||||||||||||||||||
Amounts excluded from the effectiveness assessment of cash flow hedges | — | — | 24 | 24 | |||||||||||||||||||
Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) | — | — | (116) | (116) | |||||||||||||||||||
Net actuarial gains/(losses) arising during the period | — | (27) | — | (27) | |||||||||||||||||||
Net postemployment benefit losses/(gains) reclassified to net income/(loss) | — | (118) | — | (118) | |||||||||||||||||||
Total other comprehensive income/(loss) | 12 | (145) | 52 | (81) | |||||||||||||||||||
Balance at December 26, 2020 | (2,218) | 158 | 93 | (1,967) | |||||||||||||||||||
Foreign currency translation adjustments | (242) | — | — | (242) | |||||||||||||||||||
Net deferred gains/(losses) on net investment hedges | 169 | — | — | 169 | |||||||||||||||||||
Amounts excluded from the effectiveness assessment of net investment hedges | 35 | — | — | 35 | |||||||||||||||||||
Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) | (29) | — | — | (29) | |||||||||||||||||||
Net deferred gains/(losses) on cash flow hedges | — | — | (91) | (91) | |||||||||||||||||||
Amounts excluded from the effectiveness assessment of cash flow hedges | — | — | 27 | 27 | |||||||||||||||||||
Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) | — | — | 68 | 68 | |||||||||||||||||||
Net actuarial gains/(losses) arising during the period | — | 232 | — | 232 | |||||||||||||||||||
Net postemployment benefit losses/(gains) reclassified to net income/(loss) | — | (26) | — | (26) | |||||||||||||||||||
Total other comprehensive income/(loss) | (67) | 206 | 4 | 143 | |||||||||||||||||||
Balance at December 25, 2021 | $ | (2,285) | $ | 364 | $ | 97 | $ | (1,824) |
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 | ) |
December 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | (242) | $ | — | $ | (242) | $ | 324 | $ | — | $ | 324 | $ | 239 | $ | — | $ | 239 | |||||||||||||||||||||||||||||||||||
Net deferred gains/(losses) on net investment hedges | 220 | (51) | 169 | (426) | 105 | (321) | (2) | 3 | 1 | ||||||||||||||||||||||||||||||||||||||||||||
Amounts excluded from the effectiveness assessment of net investment hedges | 46 | (11) | 35 | 28 | (2) | 26 | 29 | (7) | 22 | ||||||||||||||||||||||||||||||||||||||||||||
Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) | (38) | 9 | (29) | (23) | 6 | (17) | (23) | 7 | (16) | ||||||||||||||||||||||||||||||||||||||||||||
Net deferred gains/(losses) on cash flow hedges | (152) | 61 | (91) | 209 | (65) | 144 | (16) | 6 | (10) | ||||||||||||||||||||||||||||||||||||||||||||
Amounts excluded from the effectiveness assessment of cash flow hedges | 28 | (1) | 27 | 24 | — | 24 | 30 | (1) | 29 | ||||||||||||||||||||||||||||||||||||||||||||
Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) | 138 | (70) | 68 | (175) | 59 | (116) | (48) | 7 | (41) | ||||||||||||||||||||||||||||||||||||||||||||
Net actuarial gains/(losses) arising during the period | 308 | (76) | 232 | (30) | 3 | (27) | (65) | (5) | (70) | ||||||||||||||||||||||||||||||||||||||||||||
Prior service credits/(costs) arising during the period | — | — | — | — | — | — | 1 | — | 1 | ||||||||||||||||||||||||||||||||||||||||||||
Net postemployment benefit losses/(gains) reclassified to net income/(loss) | (32) | 6 | (26) | (158) | 40 | (118) | (312) | 78 | (234) |
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 | ) |
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 25, 2021 | December 26, 2020 | December 28, 2019 | ||||||||||||||||||||||||
Losses/(gains) on net investment hedges: | ||||||||||||||||||||||||||
Foreign exchange contracts(a) | $ | — | $ | — | $ | 6 | Other expense/(income) | |||||||||||||||||||
Foreign exchange contracts(b) | (2) | 2 | 1 | Interest expense | ||||||||||||||||||||||
Cross-currency contracts(b) | (36) | (25) | (30) | Interest expense | ||||||||||||||||||||||
Losses/(gains) on cash flow hedges: | ||||||||||||||||||||||||||
Foreign exchange contracts(c) | 1 | — | — | Net sales | ||||||||||||||||||||||
Foreign exchange contracts(c) | 49 | (19) | (23) | Cost of products sold | ||||||||||||||||||||||
Foreign exchange contracts(c) | 1 | — | — | SG&A | ||||||||||||||||||||||
Foreign exchange contracts(c) | — | — | 22 | Other expense/(income) | ||||||||||||||||||||||
Cross-currency contracts(c) | 64 | (169) | (51) | Other expense/(income) | ||||||||||||||||||||||
Cross-currency contracts(c) | 22 | 11 | — | Interest expense | ||||||||||||||||||||||
Interest rate contracts(d) | 1 | 2 | 4 | Interest expense | ||||||||||||||||||||||
Losses/(gains) on hedges before income taxes | 100 | (198) | (71) | |||||||||||||||||||||||
Losses/(gains) on hedges, income taxes | (61) | 65 | 14 | |||||||||||||||||||||||
Losses/(gains) on hedges | $ | 39 | $ | (133) | $ | (57) | ||||||||||||||||||||
Losses/(gains) on postemployment benefits: | ||||||||||||||||||||||||||
Amortization of unrecognized losses/(gains)(e) | $ | (13) | $ | (12) | $ | (7) | ||||||||||||||||||||
Amortization of prior service costs/(credits)(e) | (8) | (122) | (306) | |||||||||||||||||||||||
Settlement and curtailment losses/(gains)(e) | (11) | (24) | — | |||||||||||||||||||||||
Other losses/(gains) on postemployment benefits | — | — | 1 | |||||||||||||||||||||||
Losses/(gains) on postemployment benefits before income taxes | (32) | (158) | (312) | |||||||||||||||||||||||
Losses/(gains) on postemployment benefits, income taxes | 6 | 40 | 78 | |||||||||||||||||||||||
Losses/(gains) on postemployment benefits | $ | (26) | $ | (118) | $ | (234) |
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 | ) |
(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 12, Postemployment Benefits, for additional information. |
2020 | $ | 1,324 | |
2021 | 590 | ||
2022 | 448 | ||
2023 | 306 | ||
2024 | 187 | ||
Thereafter | 89 | ||
Total | $ | 2,944 |
2022 | $ | 541 | |||
2023 | 457 | ||||
2024 | 315 | ||||
2025 | 221 | ||||
2026 | 180 | ||||
Thereafter | 282 | ||||
Total | $ | 1,996 |
Priority (a) | Maturity Dates | Interest Rates (b) | Carrying Values | |||||||||||||||||||||||||||||
December 25, 2021 | December 26, 2020 | |||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
U.S. dollar notes(c) | Senior Notes | 2022–2050 | 0.776%–7.125% | $ | 18,049 | $ | 24,251 | |||||||||||||||||||||||||
Euro notes(c) | Senior Notes | 2023–2028 | 1.500%–2.250% | 2,877 | 3,100 | |||||||||||||||||||||||||||
British pound sterling notes: | ||||||||||||||||||||||||||||||||
2030 Notes(d) | Senior Notes | February 18, 2030 | 6.250% | 172 | 175 | |||||||||||||||||||||||||||
Other British pound sterling notes(c) | Senior Notes | July 1, 2027 | 4.125% | 533 | 539 | |||||||||||||||||||||||||||
Other long-term debt | Various | 2022–2035 | 0.500%–13.350% | 42 | 41 | |||||||||||||||||||||||||||
Finance lease obligations | 128 | 194 | ||||||||||||||||||||||||||||||
Total long-term debt | 21,801 | 28,300 | ||||||||||||||||||||||||||||||
Current portion of long-term debt | 740 | 230 | ||||||||||||||||||||||||||||||
Long-term debt, excluding current portion | $ | 21,061 | $ | 28,070 |
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 |
Aggregate Principal Amount Outstanding as of December 26, 2020 | Tender Offers | Open Market Debt Repurchases | Debt Redemptions | Debt Repayments | Aggregate Principal Amount Outstanding as of December 25, 2021 | ||||||||||||||||||||||||||||||
3.500% senior notes due June 2022(c) | $ | 631 | $ | 250 | $ | — | $ | — | $ | — | $ | 381 | |||||||||||||||||||||||
4.000% senior notes due June 2023(e) | 447 | — | — | 447 | — | — | |||||||||||||||||||||||||||||
3.950% senior notes due July 2025(a)(g) | 1,609 | 812 | — | 797 | — | — | |||||||||||||||||||||||||||||
3.000% senior notes due June 2026(a)(d) | 2,000 | 88 | 36 | — | — | 1,876 | |||||||||||||||||||||||||||||
6.375% senior notes due July 2028(b) | 235 | 17 | — | — | — | 218 | |||||||||||||||||||||||||||||
4.625% senior notes due January 2029(b)(c)(d)(f)(h) | 1,100 | 701 | 30 | — | — | 369 | |||||||||||||||||||||||||||||
3.750% senior notes due April 2030(b)(d) | 1,000 | 254 | 3 | — | — | 743 | |||||||||||||||||||||||||||||
4.250% senior notes due March 2031(c) | 1,350 | 966 | — | — | — | 384 | |||||||||||||||||||||||||||||
6.750% senior notes due March 2032(b)(c) | 437 | 132 | — | — | — | 305 | |||||||||||||||||||||||||||||
5.000% senior notes due July 2035(b)(c)(d)(f)(h) | 1,000 | 285 | 29 | — | — | 686 | |||||||||||||||||||||||||||||
6.875% senior notes due January 2039(b)(d)(f)(h) | 878 | 29 | 38 | — | — | 811 | |||||||||||||||||||||||||||||
7.125% senior notes due August 2039(b)(d)(h) | 931 | 51 | 21 | — | — | 859 | |||||||||||||||||||||||||||||
4.625% senior notes due October 2039(b)(f)(h) | 500 | 101 | 1 | — | — | 398 | |||||||||||||||||||||||||||||
6.500% senior notes due February 2040(b)(d)(f)(h) | 788 | 39 | 43 | — | — | 706 | |||||||||||||||||||||||||||||
5.000% senior notes due June 2042(b)(d)(f)(h) | 2,000 | 334 | 134 | — | — | 1,532 | |||||||||||||||||||||||||||||
5.200% senior notes due July 2045(d)(f)(h) | 2,000 | — | 189 | — | — | 1,811 | |||||||||||||||||||||||||||||
4.375% senior notes due June 2046(d)(f)(h) | 3,000 | — | 214 | — | — | 2,786 | |||||||||||||||||||||||||||||
Floating rate senior notes due February 2021(i) | 111 | — | — | — | 111 | — | |||||||||||||||||||||||||||||
3.125% senior notes due September 2021(i) | 34 | — | — | — | 34 | — | |||||||||||||||||||||||||||||
Other long-term debt(j) | 7,842 | — | — | — | — | 7,606 | |||||||||||||||||||||||||||||
Total | $ | 27,893 | $ | 4,059 | $ | 738 | $ | 1,244 | $ | 145 | $ | 21,471 |
2020 | $ | 995 | |
2021 | 990 | ||
2022 | 2,073 | ||
2023 | 1,678 | ||
2024 | 617 | ||
Thereafter | 22,460 |
2022 | $ | 709 | |||
2023 | 852 | ||||
2024 | 626 | ||||
2025 | 3 | ||||
2026 | 1,879 | ||||
Thereafter | 17,402 |
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 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
Operating lease costs | $ | 176 | $ | 173 | $ | 191 | |||||||||||
Finance lease costs: | |||||||||||||||||
Amortization of right-of-use assets | 34 | 31 | 27 | ||||||||||||||
Interest on lease liabilities | 6 | 7 | 6 | ||||||||||||||
Short-term lease costs | 17 | 20 | 13 | ||||||||||||||
Variable lease costs | 1,192 | 1,313 | 1,270 | ||||||||||||||
Sublease income | (9) | (11) | (14) | ||||||||||||||
Total lease costs | $ | 1,416 | $ | 1,533 | $ | 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 25, 2021 | December 26, 2020 | ||||||||||||||||||||||
Operating Leases | Finance Leases | Operating Leases | Finance Leases | ||||||||||||||||||||
Right-of-use assets | $ | 569 | $ | 126 | $ | 562 | $ | 195 | |||||||||||||||
Lease liabilities (current) | 133 | 30 | 135 | 78 | |||||||||||||||||||
Lease liabilities (non-current) | 484 | 98 | 475 | 116 | |||||||||||||||||||
Weighted average remaining lease term | 7 years | 12 years | 7 years | 9 years | |||||||||||||||||||
Weighted average discount rate | 3.5 | % | 4.1 | % | 3.8 | % | 3.7 | % |
December 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
Operating cash inflows/(outflows) from operating leases | $ | (179) | $ | (191) | $ | (196) | |||||||||||
Operating cash inflows/(outflows) from finance leases | (6) | (7) | (6) | ||||||||||||||
Financing cash inflows/(outflows) from finance leases | (33) | (35) | (28) | ||||||||||||||
Right-of-use assets obtained in exchange for lease liabilities: | |||||||||||||||||
Operating leases | 41 | 147 | 42 | ||||||||||||||
Finance leases | 14 | 39 | 12 |
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 |
Operating Leases | Finance Leases | ||||||||||
2022 | $ | 152 | $ | 34 | |||||||
2023 | 116 | 20 | |||||||||
2024 | 90 | 14 | |||||||||
2025 | 79 | 10 | |||||||||
2026 | 63 | 8 | |||||||||
Thereafter | 196 | 79 | |||||||||
Total future undiscounted lease payments | 696 | 165 | |||||||||
Less imputed interest | (79) | (37) | |||||||||
Total lease liability | $ | 617 | $ | 128 |
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 |
Shares Issued | Treasury Shares | Shares Outstanding | |||||||||||||||
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 | ||||||||||||||
Exercise of stock options, issuance of other stock awards, and other | 4 | (2) | 2 | ||||||||||||||
Balance at December 26, 2020 | 1,228 | (5) | 1,223 | ||||||||||||||
Exercise of stock options, issuance of other stock awards, and other | 7 | (6) | 1 | ||||||||||||||
Balance at December 25, 2021 | 1,235 | (11) | 1,224 |
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 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
(in millions, except per share data) | |||||||||||||||||
Basic Earnings Per Common Share: | |||||||||||||||||
Net income/(loss) attributable to common shareholders | $ | 1,012 | $ | 356 | $ | 1,935 | |||||||||||
Weighted average shares of common stock outstanding | 1,224 | 1,223 | 1,221 | ||||||||||||||
Net earnings/(loss) | $ | 0.83 | $ | 0.29 | $ | 1.59 | |||||||||||
Diluted Earnings Per Common Share: | |||||||||||||||||
Net income/(loss) attributable to common shareholders | $ | 1,012 | $ | 356 | $ | 1,935 | |||||||||||
Weighted average shares of common stock outstanding | 1,224 | 1,223 | 1,221 | ||||||||||||||
Effect of dilutive equity awards | 12 | 5 | 3 | ||||||||||||||
Weighted average shares of common stock outstanding, including dilutive effect | 1,236 | 1,228 | 1,224 | ||||||||||||||
Net earnings/(loss) | $ | 0.82 | $ | 0.29 | $ | 1.58 |
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 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
Net sales: | |||||||||||||||||
United States | $ | 18,604 | $ | 19,204 | $ | 17,844 | |||||||||||
International | 5,691 | 5,341 | 5,251 | ||||||||||||||
Canada | 1,747 | 1,640 | 1,882 | ||||||||||||||
Total net sales | $ | 26,042 | $ | 26,185 | $ | 24,977 |
December 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
Segment Adjusted EBITDA: | |||||||||||||||||
United States | $ | 5,157 | $ | 5,557 | $ | 4,829 | |||||||||||
International | 1,066 | 1,058 | 1,004 | ||||||||||||||
Canada | 419 | 389 | 487 | ||||||||||||||
General corporate expenses | (271) | (335) | (256) | ||||||||||||||
Depreciation and amortization (excluding restructuring activities) | (910) | (955) | (985) | ||||||||||||||
Divestiture-related license income | 4 | — | — | ||||||||||||||
Restructuring activities | (84) | (15) | (102) | ||||||||||||||
Deal costs | (11) | (8) | (19) | ||||||||||||||
Unrealized gains/(losses) on commodity hedges | (17) | 6 | 57 | ||||||||||||||
Impairment losses | (1,634) | (3,413) | (1,899) | ||||||||||||||
Certain non-ordinary course legal and regulatory matters | (62) | — | — | ||||||||||||||
Equity award compensation expense (excluding restructuring activities) | (197) | (156) | (46) | ||||||||||||||
Operating income/(loss) | 3,460 | 2,128 | 3,070 | ||||||||||||||
Interest expense | 2,047 | 1,394 | 1,361 | ||||||||||||||
Other expense/(income) | (295) | (296) | (952) | ||||||||||||||
Income/(loss) before income taxes | $ | 1,708 | $ | 1,030 | $ | 2,661 |
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 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 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
Depreciation and amortization expense: | |||||||||||||||||
United States | $ | 542 | $ | 609 | $ | 609 | |||||||||||
International | 234 | 221 | 231 | ||||||||||||||
Canada | 38 | 35 | 35 | ||||||||||||||
General corporate expenses | 96 | 104 | 119 | ||||||||||||||
Total depreciation and amortization expense | $ | 910 | $ | 969 | $ | 994 |
December 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
Capital expenditures: | |||||||||||||||||
United States | $ | 433 | $ | 318 | $ | 393 | |||||||||||
International | 348 | 212 | 283 | ||||||||||||||
Canada | 44 | 29 | 27 | ||||||||||||||
General corporate expenses | 80 | 37 | 65 | ||||||||||||||
Total capital expenditures | $ | 905 | $ | 596 | $ | 768 |
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 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
Taste Elevation | $ | 7,267 | $ | 6,808 | $ | 6,581 | |||||||||||
Fast Fresh Meals | 6,665 | 6,819 | 6,298 | ||||||||||||||
Easy Meals Made Better | 4,927 | 4,909 | 4,314 | ||||||||||||||
Real Food Snacking | 1,808 | 2,296 | 2,201 | ||||||||||||||
Flavorful Hydration | 1,777 | 1,648 | 1,495 | ||||||||||||||
Easy Indulgent Desserts | 1,034 | 999 | 919 | ||||||||||||||
Other | 2,564 | 2,706 | 3,169 | ||||||||||||||
Total net sales | $ | 26,042 | $ | 26,185 | $ | 24,977 |
December 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
Condiments and sauces | $ | 7,302 | $ | 6,813 | $ | 6,406 | |||||||||||
Cheese and dairy | 4,922 | 5,131 | 4,890 | ||||||||||||||
Ambient foods | 2,896 | 2,954 | 2,475 | ||||||||||||||
Frozen and chilled foods | 2,698 | 2,599 | 2,371 | ||||||||||||||
Meats and seafood | 2,613 | 2,515 | 2,406 | ||||||||||||||
Refreshment beverages | 1,786 | 1,655 | 1,504 | ||||||||||||||
Coffee | 847 | 1,062 | 1,271 | ||||||||||||||
Infant and nutrition | 441 | 433 | 512 | ||||||||||||||
Desserts, toppings and baking | 1,157 | 1,121 | 1,032 | ||||||||||||||
Nuts and salted snacks | 464 | 1,047 | 966 | ||||||||||||||
Other | 916 | 855 | 1,144 | ||||||||||||||
Total net sales | $ | 26,042 | $ | 26,185 | $ | 24,977 |
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 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 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
Net sales: | |||||||||||||||||
United States | $ | 18,604 | $ | 19,204 | $ | 17,844 | |||||||||||
Canada | 1,747 | 1,640 | 1,882 | ||||||||||||||
United Kingdom | 1,147 | 1,103 | 1,007 | ||||||||||||||
Other | 4,544 | 4,238 | 4,244 | ||||||||||||||
Total net sales | $ | 26,042 | $ | 26,185 | $ | 24,977 |
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 25, 2021 | December 26, 2020 | ||||||||||
Long-lived assets: | |||||||||||
United States | $ | 4,547 | $ | 4,705 | |||||||
Other | 2,259 | 2,171 | |||||||||
Total long-lived assets | $ | 6,806 | $ | 6,876 |
December 25, 2021 | December 26, 2020 | December 28, 2019 | |||||||||||||||
Amortization of postemployment benefit plans prior service costs/(credits) | $ | (7) | $ | (122) | $ | (306) | |||||||||||
Net pension and postretirement non-service cost/(benefit)(a) | (214) | (201) | (172) | ||||||||||||||
Loss/(gain) on sale of business(b) | (44) | 2 | (420) | ||||||||||||||
Interest income | (15) | (27) | (36) | ||||||||||||||
Foreign exchange losses/(gains) | (101) | 162 | 10 | ||||||||||||||
Derivative losses/(gains) | 86 | (154) | (39) | ||||||||||||||
Other miscellaneous expense/(income) | — | 44 | 11 | ||||||||||||||
Other expense/(income) | $ | (295) | $ | (296) | $ | (952) |
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 | ) |
2019 Quarters | |||||||||||||||
Fourth | Third | Second | First | ||||||||||||
(in millions, except per share data) | |||||||||||||||
Net sales | $ | 6,536 | $ | 6,076 | $ | 6,406 | $ | 5,959 | |||||||
Gross profit | 2,107 | 1,947 | 2,082 | 2,011 | |||||||||||
Net income/(loss) | 183 | 898 | 448 | 404 | |||||||||||
Net income/(loss) attributable to common shareholders | 182 | 899 | 449 | 405 | |||||||||||
Per share data applicable to common shareholders: | |||||||||||||||
Basic earnings/(loss) | 0.15 | 0.74 | 0.37 | 0.33 | |||||||||||
Diluted earnings/(loss) | 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 | |||||||||||||||
Net sales | $ | — | $ | 16,852 | $ | 8,588 | $ | (463 | ) | $ | 24,977 | ||||||||
Cost of products sold | — | 11,042 | 6,251 | (463 | ) | 16,830 | |||||||||||||
Gross profit | — | 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 | — | 798 | 4,279 | — | 5,077 | ||||||||||||||
Intercompany service fees and other recharges | — | 3,377 | (3,377 | ) | — | — | |||||||||||||
Operating income/(loss) | — | 1,635 | 1,435 | — | 3,070 | ||||||||||||||
Interest expense | — | 1,283 | 78 | — | 1,361 | ||||||||||||||
Other expense/(income) | — | (128 | ) | (824 | ) | — | (952 | ) | |||||||||||
Income/(loss) before income taxes | — | 480 | 2,181 | — | 2,661 | ||||||||||||||
Provision for/(benefit from) income taxes | — | 1 | 727 | — | 728 | ||||||||||||||
Equity in earnings/(losses) of subsidiaries | 1,935 | 1,456 | — | (3,391 | ) | — | |||||||||||||
Net income/(loss) | 1,935 | 1,935 | 1,454 | (3,391 | ) | 1,933 | |||||||||||||
Net income/(loss) attributable to noncontrolling interest | — | — | (2 | ) | — | (2 | ) | ||||||||||||
Net income/(loss) excluding noncontrolling interest | $ | 1,935 | $ | 1,935 | $ | 1,456 | $ | (3,391 | ) | $ | 1,935 | ||||||||
Comprehensive income/(loss) excluding noncontrolling interest | $ | 1,856 | $ | 1,856 | $ | 1,379 | $ | (3,235 | ) | $ | 1,856 |
Parent Guarantor | Subsidiary Issuer | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 17,317 | $ | 9,481 | $ | (530 | ) | $ | 26,268 | ||||||||
Cost of products sold | — | 11,290 | 6,587 | (530 | ) | 17,347 | |||||||||||||
Gross profit | — | 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 | — | 803 | 18,323 | — | 19,126 | ||||||||||||||
Intercompany service fees and other recharges | — | 3,865 | (3,865 | ) | — | — | |||||||||||||
Operating income/(loss) | — | 1,359 | (11,564 | ) | — | (10,205 | ) | ||||||||||||
Interest expense | — | 1,212 | 72 | — | 1,284 | ||||||||||||||
Other expense/(income) | — | (359 | ) | 191 | — | (168 | ) | ||||||||||||
Income/(loss) before income taxes | — | 506 | (11,827 | ) | — | (11,321 | ) | ||||||||||||
Provision for/(benefit from) income taxes | — | 112 | (1,179 | ) | — | (1,067 | ) | ||||||||||||
Equity in earnings/(losses) of subsidiaries | (10,192 | ) | (10,586 | ) | — | 20,778 | — | ||||||||||||
Net income/(loss) | (10,192 | ) | (10,192 | ) | (10,648 | ) | 20,778 | (10,254 | ) | ||||||||||
Net income/(loss) attributable to noncontrolling interest | — | — | (62 | ) | — | (62 | ) | ||||||||||||
Net income/(loss) excluding noncontrolling interest | $ | (10,192 | ) | $ | (10,192 | ) | $ | (10,586 | ) | $ | 20,778 | $ | (10,192 | ) | |||||
Comprehensive income/(loss) excluding noncontrolling interest | $ | (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 | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 1,404 | $ | 875 | $ | — | $ | 2,279 | |||||||||
Trade receivables, net | — | 836 | 1,137 | — | 1,973 | ||||||||||||||
Receivables due from affiliates | — | 633 | 793 | (1,426 | ) | — | |||||||||||||
Income taxes receivable | — | 714 | 160 | (701 | ) | 173 | |||||||||||||
Inventories | — | 1,832 | 889 | — | 2,721 | ||||||||||||||
Short-term lending due from affiliates | — | 1,399 | 4,645 | (6,044 | ) | — | |||||||||||||
Prepaid expenses | — | 193 | 191 | — | 384 | ||||||||||||||
Other current assets | — | 269 | 176 | — | 445 | ||||||||||||||
Assets held for sale | — | 13 | 109 | — | 122 | ||||||||||||||
Total current assets | — | 7,293 | 8,975 | (8,171 | ) | 8,097 | |||||||||||||
Property, plant and equipment, net | — | 4,420 | 2,635 | — | 7,055 | ||||||||||||||
Goodwill | — | 11,066 | 24,480 | — | 35,546 | ||||||||||||||
Investments in subsidiaries | 51,623 | 66,492 | — | (118,115 | ) | — | |||||||||||||
Intangible assets, net | — | 2,860 | 45,792 | — | 48,652 | ||||||||||||||
Long-term lending due from affiliates | — | 207 | 2,000 | (2,207 | ) | — | |||||||||||||
Other non-current assets | — | 850 | 1,250 | — | 2,100 | ||||||||||||||
TOTAL ASSETS | $ | 51,623 | $ | 93,188 | $ | 85,132 | $ | (128,493 | ) | $ | 101,450 | ||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Commercial paper and other short-term debt | $ | — | $ | 5 | $ | 1 | $ | — | $ | 6 | |||||||||
Current portion of long-term debt | — | 626 | 396 | — | 1,022 | ||||||||||||||
Short-term lending due to affiliates | — | 4,645 | 1,399 | (6,044 | ) | — | |||||||||||||
Trade payables | — | 2,445 | 1,558 | — | 4,003 | ||||||||||||||
Payables due to affiliates | — | 793 | 633 | (1,426 | ) | — | |||||||||||||
Accrued marketing | — | 249 | 398 | — | 647 | ||||||||||||||
Interest payable | — | 372 | 12 | — | 384 | ||||||||||||||
Other current liabilities | — | 266 | 2,239 | (701 | ) | 1,804 | |||||||||||||
Liabilities held for sale | — | — | 9 | — | 9 | ||||||||||||||
Total current liabilities | — | 9,401 | 6,645 | (8,171 | ) | 7,875 | |||||||||||||
Long-term debt | — | 27,912 | 304 | — | 28,216 | ||||||||||||||
Long-term borrowings due to affiliates | — | 2,000 | 207 | (2,207 | ) | — | |||||||||||||
Deferred income taxes | — | 1,307 | 10,571 | — | 11,878 | ||||||||||||||
Accrued postemployment costs | — | 34 | 239 | — | 273 | ||||||||||||||
Other non-current liabilities | — | 911 | 548 | — | 1,459 | ||||||||||||||
TOTAL LIABILITIES | — | 41,565 | 18,514 | (10,378 | ) | 49,701 | |||||||||||||
Redeemable noncontrolling interest | — | — | — | — | — | ||||||||||||||
Total shareholders’ equity | 51,623 | 51,623 | 66,492 | (118,115 | ) | 51,623 | |||||||||||||
Noncontrolling interest | — | — | 126 | — | 126 | ||||||||||||||
TOTAL EQUITY | 51,623 | 51,623 | 66,618 | (118,115 | ) | 51,749 | |||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 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 | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||
Net cash provided by/(used for) operating activities | $ | 1,953 | $ | 3,308 | $ | 244 | $ | (1,953 | ) | $ | 3,552 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||
Capital expenditures | — | (365 | ) | (403 | ) | — | (768 | ) | |||||||||||
Payments to acquire business, net of cash acquired | — | (199 | ) | — | — | (199 | ) | ||||||||||||
Net proceeds from/(payments on) intercompany lending activities | — | 2,248 | 723 | (2,971 | ) | — | |||||||||||||
Additional investments in subsidiaries | (20 | ) | (51 | ) | — | 71 | — | ||||||||||||
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 | — | 52 | (39 | ) | — | 13 | |||||||||||||
Net cash provided by/(used for) investing activities | (20 | ) | 2,289 | 2,142 | (2,900 | ) | 1,511 | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||
Repayments of long-term debt | — | (4,568 | ) | (227 | ) | — | (4,795 | ) | |||||||||||
Proceeds from issuance of long-term debt | — | 2,969 | (2 | ) | — | 2,967 | |||||||||||||
Debt prepayment and extinguishment costs | — | (99 | ) | — | — | (99 | ) | ||||||||||||
Proceeds from issuance of commercial paper | — | 557 | — | — | 557 | ||||||||||||||
Repayments of commercial paper | — | (557 | ) | — | — | (557 | ) | ||||||||||||
Net proceeds from/(payments on) intercompany borrowing activities | — | (723 | ) | (2,248 | ) | 2,971 | — | ||||||||||||
Dividends paid | (1,953 | ) | (1,953 | ) | — | 1,953 | (1,953 | ) | |||||||||||
Other intercompany capital stock transactions | — | 20 | 51 | (71 | ) | — | |||||||||||||
Other financing activities, net | 20 | (41 | ) | (12 | ) | — | (33 | ) | |||||||||||
Net cash provided by/(used for) financing activities | (1,933 | ) | (4,395 | ) | (2,438 | ) | 4,853 | (3,913 | ) | ||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | — | — | (6 | ) | — | (6 | ) | ||||||||||||
Cash, cash equivalents, and restricted cash: | |||||||||||||||||||
Net increase/(decrease) | — | 1,202 | (58 | ) | — | 1,144 | |||||||||||||
Balance at beginning of period | — | 202 | 934 | — | 1,136 | ||||||||||||||
Balance at end of period | $ | — | $ | 1,404 | $ | 876 | $ | — | $ | 2,280 |
Parent Guarantor | Subsidiary Issuer | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||
Net cash provided by/(used for) operating activities | $ | 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 | — | (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 | — | 24 | — | — | 24 | ||||||||||||||
Return of capital | 7 | — | — | (7 | ) | — | |||||||||||||
Proceeds from sale of business, net of cash disposed | — | — | 18 | — | 18 | ||||||||||||||
Other investing activities, net | — | 7 | 17 | — | 24 | ||||||||||||||
Net cash provided by/(used for) investing activities | 7 | 1,032 | 1,047 | (1,798 | ) | 288 | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||
Repayments of long-term debt | — | (2,550 | ) | (163 | ) | — | (2,713 | ) | |||||||||||
Proceeds from issuance of long-term debt | — | 2,990 | — | — | 2,990 | ||||||||||||||
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 | — | (206 | ) | (1,626 | ) | 1,832 | — | ||||||||||||
Dividends paid | (3,183 | ) | (3,183 | ) | (10 | ) | 3,193 | (3,183 | ) | ||||||||||
Other intercompany capital stock transactions | — | (7 | ) | 41 | (34 | ) | — | ||||||||||||
Other financing activities, net | (7 | ) | (17 | ) | (4 | ) | — | (28 | ) | ||||||||||
Net cash provided by/(used for) financing activities | (3,190 | ) | (3,402 | ) | (1,762 | ) | 4,991 | (3,363 | ) | ||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | — | — | (132 | ) | — | (132 | ) | ||||||||||||
Cash, cash equivalents, and restricted cash: | |||||||||||||||||||
Net increase/(decrease) | — | (442 | ) | (191 | ) | — | (633 | ) | |||||||||||
Balance at beginning of period | — | 644 | 1,125 | — | 1,769 | ||||||||||||||
Balance at end of period | $ | — | $ | 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 |
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 |
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)) | |||||||||||||||
Plan Category | (a) | (b) | (c) | ||||||||||||||
Equity compensation plans approved by security holders | 29,577,435 | $ | 45.43 | 25,590,076 | |||||||||||||
Equity compensation plans not approved by security holders | — | — | — | ||||||||||||||
Total | 29,577,435 | 25,590,076 |
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) | ||||||
Equity compensation plans approved by security holders | 33,855,210 | $ | 41.22 | — | |||||
Equity compensation plans not approved by security holders | — | — | — | ||||||
Total | 33,855,210 | — |
Page No. | |||||
Report of Independent Registered Public Accounting Firm (PCAOB ID 238) | |||||
S- |
Exhibit No. | Descriptions | |||||||
2.1 | ||||||||
2.2 | ||||||||
2.3 | ||||||||
2.4 | ||||||||
2.5 | ||||||||
2.6 | ||||||||
2.7 | ||||||||
2.8 |
2.10 | ||||||||
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
4.1 | ||||||||
4.2 | ||||||||
4.3 | ||||||||
4.4 | ||||||||
4.5 | ||||||||
4.6 | ||||||||
4.7 | ||||||||
4.15 | ||||||||
4.20 | ||||||||
4.22 | ||||||||
4.23 | ||||||||
4.30 |
4.31 | ||||||||
10.1 | ||||||||
10.2 | ||||||||
10.3 | ||||||||
10.4 | ||||||||
10.5 | ||||||||
10.6 | ||||||||
10.7 | ||||||||
10.8 | ||||||||
10.9 |
10.10 | ||||||||
10.11 | ||||||||
10.12 | ||||||||
10.13 | ||||||||
10.14 | ||||||||
10.15 | ||||||||
10.16 | ||||||||
10.17 | ||||||||
10.18 |
10.19 | ||||||||
10.20 | ||||||||
10.21 | ||||||||
10.22 | ||||||||
10.23 | ||||||||
10.24 | ||||||||
10.25 | ||||||||
10.26 | ||||||||
10.27 | ||||||||
10.28 | ||||||||
10.29 | ||||||||
10.30 | ||||||||
10.31 | ||||||||
10.32 | ||||||||
10.33 | ||||||||
10.34 | ||||||||
10.35 | ||||||||
22.1 | ||||||||
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 period ended December | |||||||
104.1 | The cover page from The Kraft Heinz Company’s Annual Report on Form 10-K for the period ended December | |||||||
+ | Indicates a management contract or compensatory plan or arrangement. | |||||||
* | Filed herewith. | |||||||
** | Furnished herewith. |
The Kraft Heinz Company | |||||||||||
Date: | February | ||||||||||
By: | /s/ Paulo Basilio | ||||||||||
Paulo Basilio | |||||||||||
Executive Vice President and Global Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
Signature | Title | Date | ||||||||||||
/s/ Miguel Patricio | Chief Executive Officer and Director | February 17, 2022 | ||||||||||||
Miguel Patricio | (Principal Executive Officer) | |||||||||||||
/s/ Paulo Basilio | Executive Vice President and Global Chief Financial Officer | February | ||||||||||||
Paulo Basilio | (Duly Authorized Officer and Principal Financial Officer) | |||||||||||||
/s/ Vince Garlati | Vice President, Global Controller | February | ||||||||||||
Vince Garlati | (Principal Accounting Officer) |
Alexandre Behring* | Chair of the Board | |||||||
John T. Cahill* | Vice Chair of the Board | |||||||
John C. Pope* | Lead Director | |||||||
Gregory E. Abel* | Director | |||||||
João M. Castro-Neves* | Director | |||||||
Lori Dickerson Fouché* | Director | |||||||
Timothy Kenesey* | Director | |||||||
Elio Leoni Sceti* | Director | |||||||
Susan Mulder* | Director | |||||||
Alexandre | ||||||||
Director | ||||||||
*By: | /s/ Paulo Basilio | ||||
Paulo Basilio | |||||
Attorney-In-Fact | |||||
February |
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 | ||||||||||||||||||||||||
Year ended December 25, 2021 | |||||||||||||||||||||||||||||
Allowances related to trade accounts receivable | $ | 48 | $ | 5 | $ | 1 | $ | (6) | $ | 48 | |||||||||||||||||||
Allowances related to deferred taxes | 105 | 1 | — | (5) | 101 | ||||||||||||||||||||||||
$ | 153 | $ | 6 | $ | 1 | $ | (11) | $ | 149 | ||||||||||||||||||||
Year ended December 26, 2020 | |||||||||||||||||||||||||||||
Allowances related to trade accounts receivable | $ | 33 | $ | 21 | $ | — | $ | (6) | $ | 48 | |||||||||||||||||||
Allowances related to deferred taxes | 112 | (3) | — | (4) | 105 | ||||||||||||||||||||||||
$ | 145 | $ | 18 | $ | — | $ | (10) | $ | 153 | ||||||||||||||||||||
Year ended December 28, 2019 | |||||||||||||||||||||||||||||
Allowances related to trade accounts receivable | $ | 24 | $ | 11 | $ | — | $ | (2) | $ | 33 | |||||||||||||||||||
Allowances related to deferred taxes | 81 | 31 | — | — | 112 | ||||||||||||||||||||||||
$ | 105 | $ | 42 | $ | — | $ | (2) | $ | 145 |
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 | ||||||||||||||
Year ended December 28, 2019 | |||||||||||||||||||
Allowances related to trade accounts receivable | $ | 24 | $ | 11 | $ | — | $ | (2 | ) | $ | 33 | ||||||||
Allowances related to deferred taxes | 81 | 31 | — | — | 112 | ||||||||||||||
$ | 105 | $ | 42 | $ | — | $ | (2 | ) | $ | 145 | |||||||||
Year ended December 29, 2018 | |||||||||||||||||||
Allowances related to trade accounts receivable | $ | 23 | $ | 8 | $ | — | $ | (7 | ) | $ | 24 | ||||||||
Allowances related to deferred taxes | 80 | 1 | — | — | 81 | ||||||||||||||
$ | 103 | $ | 9 | $ | — | $ | (7 | ) | $ | 105 | |||||||||
Year ended December 30, 2017 | |||||||||||||||||||
Allowances related to trade accounts receivable | $ | 20 | $ | 8 | $ | 1 | $ | (6 | ) | $ | 23 | ||||||||
Allowances related to deferred taxes | 89 | (9 | ) | — | — | 80 | |||||||||||||
$ | 109 | $ | (1 | ) | $ | 1 | $ | (6 | ) | $ | 103 |