Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 28, 2019 | Feb. 08, 2020 | Jun. 29, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 28, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-37482 | ||
Entity Registrant Name | Kraft Heinz Co | ||
Entity Incorporation, State | DE | ||
Entity Tax Identification Number | 46-2078182 | ||
Entity Address, Address Line | One PPG Place, | ||
Entity Address, City | Pittsburgh, | ||
Entity Address, State | PA | ||
Entity Address, Postal Zip Code | 15222 | ||
City Area Code | 412 | ||
Local Phone Number | 456-5700 | ||
Title of 12(b) Security | Common stock, $0.01 par value | ||
Trading Symbol | KHC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 19 | ||
Entity Common Stock, Shares Outstanding | 1,221,399,549 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive proxy statement to be filed with the Securities and Exchange Commission in connection with its annual meeting of shareholders expected to be held on May 7, 2020 are incorporated by reference into Part III hereof. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001637459 | ||
Current Fiscal Year End Date | --12-28 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 6,536 | $ 6,076 | $ 6,406 | $ 5,959 | $ 6,891 | $ 6,383 | $ 6,690 | $ 6,304 | $ 24,977 | $ 26,268 | $ 26,076 |
Cost of products sold | 16,830 | 17,347 | 17,043 | ||||||||
Gross profit | 2,107 | 1,947 | 2,082 | 2,011 | 2,216 | 2,094 | 2,347 | 2,264 | 8,147 | 8,921 | 9,033 |
Selling, general and administrative expenses, excluding impairment losses | 3,178 | 3,190 | 2,927 | ||||||||
Goodwill impairment losses | 6,900 | 1,197 | 7,008 | 0 | |||||||
Intangible asset impairment losses | 702 | 8,928 | 49 | ||||||||
Selling, general and administrative expenses | 5,077 | 19,126 | 2,976 | ||||||||
Operating income/(loss) | 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 | ||||||||
Provision for/(benefit from) income taxes | 728 | (1,067) | (5,482) | ||||||||
Net income/(loss) | $ 183 | $ 898 | $ 448 | $ 404 | $ (12,628) | $ 618 | $ 753 | $ 1,003 | 1,933 | (10,254) | 10,932 |
Net income/(loss) attributable to noncontrolling interest | (2) | (62) | (9) | ||||||||
Net income/(loss) attributable to common shareholders | $ 1,935 | $ (10,192) | $ 10,941 | ||||||||
Per share data applicable to common shareholders: | |||||||||||
Basic earnings/(loss) per share (in dollars per share) | $ 0.15 | $ 0.74 | $ 0.37 | $ 0.33 | $ (10.30) | $ 0.51 | $ 0.62 | $ 0.82 | $ 1.59 | $ (8.36) | $ 8.98 |
Diluted earnings/(loss) per share (in dollars per share) | $ 0.15 | $ 0.74 | $ 0.37 | $ 0.33 | $ (10.30) | $ 0.50 | $ 0.62 | $ 0.82 | $ 1.58 | $ (8.36) | $ 8.91 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income/(loss) | $ 1,933 | $ (10,254) | $ 10,932 |
Other comprehensive income/(loss), net of tax: | |||
Foreign currency translation adjustments | 246 | (1,187) | 1,185 |
Net deferred gains/(losses) on net investment hedges | 1 | 284 | (353) |
Amounts excluded from the effectiveness assessment of net investment hedges | 22 | 7 | 0 |
Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) | (16) | (7) | 0 |
Net deferred gains/(losses) on cash flow hedges | (10) | 99 | (113) |
Amounts excluded from the effectiveness assessment of cash flow hedges | 29 | 2 | 0 |
Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) | (41) | (44) | 85 |
Net actuarial gains/(losses) arising during the period | (70) | 58 | 69 |
Prior service credits/(costs) arising during the period | 1 | 3 | 17 |
Net postemployment benefit losses/(gains) reclassified to net income/(loss) | (234) | (118) | (309) |
Total other comprehensive income/(loss) | (72) | (903) | 581 |
Total comprehensive income/(loss) | 1,861 | (11,157) | 11,513 |
Comprehensive income/(loss) attributable to noncontrolling interest | 5 | (76) | (3) |
Comprehensive income/(loss) attributable to common shareholders | $ 1,856 | $ (11,081) | $ 11,516 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 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 | 0 | 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 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 33 | $ 24 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued | 1,224,000,000 | 1,224,000,000 |
Common stock, shares outstanding | 1,221,000,000 | 1,220,000,000 |
Treasury stock, shares | 3,000,000 | 4,000,000 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings/(Deficit) | Accumulated Other Comprehensive Income/(Losses) | Treasury Stock, at Cost | Noncontrolling Interest |
Beginning balance at Dec. 31, 2016 | $ 57,460 | $ 12 | $ 58,516 | $ 552 | $ (1,629) | $ (207) | $ 216 |
Total Shareholders' Equity [Roll forward] | |||||||
Net income/(loss) excluding redeemable noncontrolling interest | 10,936 | 10,941 | (5) | ||||
Other comprehensive income/(loss) | 581 | 575 | 6 | ||||
Dividends declared-common stock | (2,988) | (2,988) | |||||
Dividends declared-noncontrolling interest | (10) | (10) | |||||
Exercise of stock options, issuance of other stock awards, and other | (91) | (118) | (10) | (17) | |||
Ending balance at Dec. 30, 2017 | $ 66,070 | 12 | 58,634 | 8,495 | (1,054) | (224) | 207 |
Dividends Declared, Per Share [Abstract] | |||||||
Common stock dividends declared (in dollars per share) | $ 2.45 | ||||||
Noncontrolling interest dividends declared (in dollars per share) | $ 52.75 | ||||||
Net income/(loss) excluding redeemable noncontrolling interest | $ (10,242) | (10,192) | (50) | ||||
Other comprehensive income/(loss) | (903) | (889) | (14) | ||||
Dividends declared-common stock | (3,048) | (3,048) | |||||
Dividends declared-noncontrolling interest | (12) | (12) | |||||
Cumulative effect of accounting standards adopted in the period | (97) | (97) | |||||
Exercise of stock options, issuance of other stock awards, and other | 7 | 89 | (11) | (58) | (13) | ||
Ending balance at Dec. 29, 2018 | $ 51,775 | 12 | 58,723 | (4,853) | (1,943) | (282) | 118 |
Dividends Declared, Per Share [Abstract] | |||||||
Common stock dividends declared (in dollars per share) | $ 2.50 | ||||||
Noncontrolling interest dividends declared (in dollars per share) | $ 174.76 | ||||||
Net income/(loss) excluding redeemable noncontrolling interest | $ 1,941 | 1,935 | 6 | ||||
Other comprehensive income/(loss) | (72) | (79) | 7 | ||||
Dividends declared-common stock | (1,959) | (1,959) | |||||
Dividends declared-noncontrolling interest | (5) | (5) | |||||
Cumulative effect of accounting standards adopted in the period | 0 | (136) | 136 | ||||
Exercise of stock options, issuance of other stock awards, and other | 69 | 64 | (6) | 11 | |||
Ending balance at Dec. 28, 2019 | $ 51,749 | $ 12 | $ 56,828 | $ (3,060) | $ (1,886) | $ (271) | $ 126 |
Dividends Declared, Per Share [Abstract] | |||||||
Common stock dividends declared (in dollars per share) | $ 1.60 | ||||||
Noncontrolling interest dividends declared (in dollars per share) | $ 75.63 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income/(loss) | $ 1,933 | $ (10,254) | $ 10,932 |
Adjustments to reconcile net income/(loss) to operating cash flows: | |||
Depreciation and amortization | 994 | 983 | 1,031 |
Amortization of postretirement benefit plans prior service costs/(credits) | (306) | (339) | (328) |
Equity award compensation expense | 46 | 33 | 46 |
Deferred income tax provision/(benefit) | (293) | (1,967) | (6,495) |
Postemployment benefit plan contributions | (32) | (76) | (1,659) |
Goodwill and intangible asset impairment losses | 1,899 | 15,936 | 49 |
Nonmonetary currency devaluation | 10 | 146 | 36 |
Loss/(gain) on sale of business | (420) | 15 | 0 |
Other items, net | (46) | 160 | 253 |
Changes in current assets and liabilities: | |||
Trade receivables | 140 | (2,280) | (2,629) |
Inventories | (277) | (251) | (236) |
Accounts payable | (58) | (23) | 441 |
Other current assets | 52 | (146) | (64) |
Other current liabilities | (90) | 637 | (876) |
Net cash provided by/(used for) operating activities | 3,552 | 2,574 | 501 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Cash receipts on sold receivables | 0 | 1,296 | 2,286 |
Capital expenditures | (768) | (826) | (1,194) |
Payments to acquire business, net of cash acquired | (199) | (248) | 0 |
Proceeds from net investment hedges | 590 | 24 | 6 |
Proceeds from sale of business, net of cash disposed | 1,875 | 18 | 0 |
Other investing activities, net | 13 | 24 | 79 |
Net cash provided by/(used for) investing activities | 1,511 | 288 | 1,177 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayments of long-term debt | (4,795) | (2,713) | (2,641) |
Proceeds from issuance of long-term debt | 2,967 | 2,990 | 1,496 |
Debt prepayment and extinguishment costs | (99) | 0 | 0 |
Proceeds from issuance of commercial paper | 557 | 2,784 | 6,043 |
Repayments of commercial paper | (557) | (3,213) | (6,249) |
Dividends paid | (1,953) | (3,183) | (2,888) |
Other financing activities, net | (33) | (28) | 18 |
Net cash provided by/(used for) financing activities | (3,913) | (3,363) | (4,221) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (6) | (132) | 57 |
Cash, cash equivalents, and restricted cash | |||
Net increase/(decrease) | 1,144 | (633) | (2,486) |
Balance at beginning of period | 1,136 | 1,769 | 4,255 |
Balance at end of period | 2,280 | 1,136 | 1,769 |
NON-CASH INVESTING ACTIVITIES: | |||
Beneficial interest obtained in exchange for securitized trade receivables | 0 | 938 | 2,519 |
CASH PAID DURING THE PERIOD FOR: | |||
Interest paid during the period | 1,306 | 1,322 | 1,269 |
Income taxes paid during the period | $ 974 | $ 543 | $ 1,206 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | Basis of Presentation Organization On July 2, 2015 (the “2015 Merger Date”) through a series of transactions, we consummated the merger of Kraft Foods Group, Inc. (“Kraft”) with and into a wholly-owned subsidiary of H.J. Heinz Holding Corporation (“Heinz”) (the “2015 Merger”). At the closing of the 2015 Merger, Heinz was renamed The Kraft Heinz Company (“Kraft Heinz”). Before the consummation of the 2015 Merger, Heinz was controlled by Berkshire Hathaway Inc. and 3G Global Food Holdings, L.P. (“3G Capital”), following their acquisition of H. J. Heinz Company on June 7, 2013. Principles of Consolidation The consolidated financial statements include Kraft Heinz and all of our controlled subsidiaries. All intercompany transactions are eliminated. Reportable Segments We manage and report our operating results through four segments. We have three reportable segments defined by geographic region: United States, Canada, and Europe, Middle East, and Africa (“EMEA”). Our remaining businesses are combined and disclosed as “Rest of World.” Rest of World comprises two operating segments: Latin America and Asia Pacific (“APAC”). During the third quarter of 2019, certain organizational changes were announced that will impact our future internal reporting and reportable segments. As a result of these changes, we plan to combine our EMEA, Latin America, and APAC zones to form the International zone. The International zone will be a reportable segment along with the United States and Canada in 2020. We also plan to move our Puerto Rico business from the Latin America zone to the United States zone to consolidate and streamline the management of our product categories and supply chain. These changes will be effective in the first quarter of 2020. Use of Estimates We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which requires us to make accounting policy elections, estimates, and assumptions that affect the reported amount of assets, liabilities, reserves, and expenses. These policy elections, estimates, and assumptions are based on our best estimates and judgments. We evaluate our policy elections, estimates, and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. We believe these estimates to be reasonable given the current facts available. We adjust our policy elections, estimates, and assumptions when facts and circumstances dictate. Market volatility, including foreign currency exchange rates, increases the uncertainty inherent in our estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from estimates. If actual amounts differ from estimates, we include the revisions in our consolidated results of operations in the period the actual amounts become known. Historically, the aggregate differences, if any, between our estimates and actual amounts in any year have not had a material effect on our consolidated financial statements. Reclassifications We made reclassifications to certain previously reported financial information to conform to our current period presentation. Held for Sale At December 29, 2018 , we had classified certain assets and liabilities as held for sale in our consolidated balance sheet primarily relating to the previously announced divestiture of our equity interests in a subsidiary in India and our divestiture of certain assets and operations in Canada, which closed in 2019. At December 28, 2019 , the assets and liabilities identified as held for sale in our consolidated balance sheet primarily relate to a business in our Rest of World segment, as well as certain other assets that are held for sale globally. See Note 4, Acquisitions and Divestitures , for additional information. |
Significant Accounting Policies
Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Revenue Recognition: Our revenues are primarily derived from customer orders for the purchase of our products. We recognize revenues as performance obligations are fulfilled when control passes to our customers. We record revenues net of variable consideration, including consumer incentives and performance obligations related to trade promotions, excluding taxes, and including all shipping and handling charges billed to customers (accounting for shipping and handling charges that occur after the transfer of control as fulfillment costs). We also record a refund liability for estimated product returns and customer allowances as reductions to revenues within the same period that the revenue is recognized. We base these estimates principally on historical and current period experience factors. We recognize costs paid to third party brokers to obtain contracts as expenses as our contracts are generally less than one year. Advertising, Consumer Incentives, and Trade Promotions: We promote our products with advertising, consumer incentives, and performance obligations related to trade promotions. Consumer incentives and trade promotions include, but are not limited to, discounts, coupons, rebates, performance-based in-store display activities, and volume-based incentives. Variable consideration related to consumer incentive and trade promotion activities is recorded as a reduction to revenues based on amounts estimated as being due to customers and consumers at the end of a period. We base these estimates principally on historical utilization, redemption rates, and/or current period experience factors. We review and adjust these estimates at least quarterly based on actual experience and other information. Advertising expenses are recorded in selling, general and administrative expenses (“SG&A”) . For interim reporting purposes, we charge advertising to operations as a percentage of estimated full year sales activity and marketing costs. We then review and adjust these estimates each quarter based on actual experience and other information. We recorded advertising expenses of $534 million in 2019, $584 million in 2018, and $629 million in 2017, which represented costs to obtain physical advertisement spots in television, radio, print, digital, and social channels. We also incur other advertising and marketing costs such as shopper marketing, sponsorships, and agency advertisement conception, design, and public relations fees. Total advertising and marketing costs were $1.1 billion in 2019, 2018, and 2017. Research and Development Expense: We expense costs as incurred for product research and development within SG&A. Research and development expenses were approximately $112 million in 2019, $109 million in 2018, and $93 million in 2017. Stock-Based Compensation: We recognize compensation costs related to equity awards on a straight-line basis over the vesting period of the award, which is generally three to five years , or on a straight-line basis over the requisite service period for each separately vesting portion of the awards. These costs are primarily recognized within SG&A. We estimate expected forfeitures rather than recognizing forfeitures as they occur in determining our equity award compensation costs. We classify equity award compensation costs primarily within general corporate expenses. See Note 11, Employees’ Stock Incentive Plans , for additional information. Postemployment Benefit Plans: We maintain various retirement plans for the majority of our employees. These include pension benefits, postretirement health care benefits, and defined contribution benefits. The cost of these plans is charged to expense over an appropriate term based on, among other things, the cost component and whether the plan is active or inactive. Changes in the fair value of our plan assets result in net actuarial gains or losses. These net actuarial gains and losses are deferred into accumulated other comprehensive income/(losses) and amortized within other expense/(income) in future periods using the corridor approach. The corridor is 10% of the greater of the market-related value of the plan’s asset or projected benefit obligation. Any actuarial gains and losses in excess of the corridor are then amortized over an appropriate term based on whether the plan is active or inactive. See Note 12, Postemployment Benefits , for additional information. Income Taxes: We recognize income taxes based on amounts refundable or payable for the current year and record deferred tax assets or liabilities for any difference between the financial reporting and tax basis of our assets and liabilities. We also recognize deferred tax assets for temporary differences, operating loss carryforwards, and tax credit carryforwards. Inherent in determining our annual tax rate are judgments regarding business plans, planning opportunities, and expectations about future outcomes. Realization of certain deferred tax assets, primarily net operating loss and other carryforwards, is dependent upon generating sufficient taxable income in the appropriate jurisdiction prior to the expiration of the carryforward periods. We apply a more-likely-than-not threshold to the recognition and derecognition of uncertain tax positions. Accordingly, we recognize the amount of tax benefit that has a greater than 50 percent likelihood of being ultimately realized upon settlement. Future changes in judgment related to the expected ultimate resolution of uncertain tax positions will affect our results in the quarter of such change. We record valuation allowances to reduce deferred tax assets to the amount that is more likely than not to be realized. When assessing the need for valuation allowances, we consider future taxable income and ongoing prudent and feasible tax planning strategies. Should a change in circumstances lead to a change in judgment about the realizability of deferred tax assets in future years, we would adjust related valuation allowances in the period that the change in circumstances occurs, along with a corresponding adjustment to our provision for/(benefit from) income taxes. The resolution of tax reserves and changes in valuation allowances could be material to our results of operations for any period, but is not expected to be material to our financial position. Common Stock and Preferred Stock Dividends: Dividends are recorded as a reduction to retained earnings. When we have an accumulated deficit, dividends are recorded as a reduction of additional paid-in capital. Cash and Cash Equivalents: Cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. Cash and cash equivalents that are legally restricted as to withdrawal or usage is classified in other current assets or other non-current assets, as applicable, on the consolidated balance sheets. Inventories: Inventories are stated at the lower of cost or net realizable value. We value inventories primarily using the average cost method. Property, Plant and Equipment: Property, plant and equipment are stated at historical cost and depreciated on the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated over periods ranging from three years to 20 years and buildings and improvements over periods up to 40 years . Capitalized software costs are included in property, plant and equipment and amortized on a straight-line basis over the estimated useful lives of the software, which do not exceed seven years . We review long-lived assets for impairment when conditions exist that indicate the carrying amount of the assets may not be fully recoverable. Such conditions could include significant adverse changes in the business climate, current-period operating or cash flow losses, significant declines in forecasted operations, or a current expectation that an asset group will be disposed of before the end of its useful life. We perform undiscounted operating cash flow analyses to determine if an impairment exists. When testing for impairment of assets held for use, we group assets at the lowest level for which cash flows are separately identifiable. If an impairment is determined to exist, the loss is calculated based on estimated fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. Goodwill and Intangible Assets : We maintain 19 reporting units, 11 of which comprise our goodwill balance. Our indefinite-lived intangible asset balance primarily consists of a number of individual brands . We test our reporting units and brands for impairment annually as of the first day of our second quarter, or more frequently if events or circumstances indicate it is more likely than not that the fair value of a reporting unit or brand is less than its carrying amount. Such events and circumstances could include a sustained decrease in our market capitalization, increased competition or unexpected loss of market share, increased input costs beyond projections (for example due to regulatory or industry changes), disposals of significant brands or components of our business, unexpected business disruptions (for example due to a natural disaster or loss of a customer, supplier, or other significant business relationship), unexpected significant declines in operating results, significant adverse changes in the markets in which we operate, or changes in management strategy. We test reporting units for impairment by comparing the estimated fair value of each reporting unit with its carrying amount. We test brands for impairment by comparing the estimated fair value of each brand with its carrying amount. If the carrying amount of a reporting unit or brand exceeds its estimated fair value, we record an impairment loss based on the difference between fair value and carrying amount, in the case of reporting units, not to exceed the associated carrying amount of goodwill. Definite-lived intangible assets are amortized on a straight-line basis over the estimated periods benefited. We review definite-lived intangible assets for impairment when conditions exist that indicate the carrying amount of the assets may not be recoverable. Such conditions could include significant adverse changes in the business climate, current-period operating or cash flow losses, significant declines in forecasted operations, or a current expectation that an asset group will be disposed of before the end of its useful life. We perform undiscounted operating cash flow analyses to determine if an impairment exists. When testing for impairment of definite-lived intangible assets held for use, we group assets at the lowest level for which cash flows are separately identifiable. If an impairment is determined to exist, the loss is calculated based on estimated fair value. Impairment losses on definite-lived intangible assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. See Note 9, Goodwill and Intangible Assets , for additional information. Leases: We determine whether a contract is or contains a lease at contract inception based on the presence of identified assets and our right to obtain substantially all of the economic benefit from or to direct the use of such assets. When we determine a lease exists, we record a right-of-use (“ROU”) asset and corresponding lease liability on our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term. Lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets are recognized at commencement date at the value of the lease liability and are adjusted for any prepayments, lease incentives received, and initial direct costs incurred. Lease liabilities are recognized at lease commencement date based on the present value of remaining lease payments over the lease term. As the discount rate implicit in the lease is not readily determinable in most of our leases, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. We do not record lease contracts with a term of 12 months or less on our consolidated balance sheets. We recognize fixed lease expense for operating leases on a straight-line basis over the lease term. For finance leases, we recognize amortization expense on the ROU asset and interest expense on the lease liability over the lease term. We have lease agreements with non-lease components that relate to the lease components (e.g., common area maintenance such as cleaning or landscaping, insurance, etc.). We account for each lease and any non-lease components associated with that lease as a single lease component for all underlying asset classes. Accordingly, all costs associated with a lease contract are accounted for as lease costs. Certain leasing arrangements require variable payments that are dependent on usage or output or may vary for other reasons, such as insurance and tax payments. Variable lease payments that do not depend on an index or rate are excluded from lease payments in the measurement of the ROU asset and lease liability and are recognized as expense in the period in which the payment occurs. Our lease agreements do not include significant restrictions or covenants, and residual value guarantees are generally not included within our operating leases. Financial Instruments: As we source our commodities on global markets and periodically enter into financing or other arrangements abroad, we use a variety of risk management strategies and financial instruments to manage commodity price, foreign currency exchange rate, and interest rate risks. Our risk management program focuses on the unpredictability of financial markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on our operating results. One way we do this is through actively hedging our risks through the use of derivative instruments. As a matter of policy, we do not use highly leveraged derivative instruments, nor do we use financial instruments for speculative purposes. Derivatives are recorded on our consolidated balance sheets as assets or liabilities at fair value, which fluctuates based on changing market conditions. Certain derivatives are designated as cash flow hedges and qualify for hedge accounting treatment, while others are not designated as hedging instruments and are marked to market through net income/(loss). The gains and losses on cash flow hedges are deferred as a component of accumulated other comprehensive income/(losses) and are recognized in net income/(loss) at the time the hedged item affects net income/(loss), in the same line item as the underlying hedged item. The excluded component on cash flow hedges is recognized in net income/(loss) over the life of the hedging relationship in the same income statement line item as the underlying hedged item. We also designate certain derivatives and non-derivatives as net investment hedges to hedge the net assets of certain foreign subsidiaries which are exposed to volatility in foreign currency exchange rates. Changes in the value of these derivatives and remeasurements of our non-derivatives designated as net investment hedges are calculated each period using the spot method, with changes reported in foreign currency translation adjustment within accumulated other comprehensive income/(losses). Such amounts will remain in accumulated other comprehensive income/(losses) until the complete or substantially complete liquidation of our investment in the underlying foreign operations. The excluded component on derivatives designated as net investment hedges is recognized in net income/(loss) within interest expense. The income statement classification of gains and losses related to derivative instruments not designated as hedging instruments is determined based on the underlying intent of the contracts. Cash flows related to the settlement of derivative instruments designated as net investment hedges of foreign operations are classified in the consolidated statements of cash flows within investing activities. All other cash flows related to derivative instruments are classified in the same line item as the cash flows of the related hedged item, which is generally within operating activities. To qualify for hedge accounting, a specified level of hedging effectiveness between the hedging instrument and the item being hedged must be achieved at inception and maintained throughout the hedged period. When a hedging instrument no longer meets the specified level of hedging effectiveness, we reclassify the related hedge gains or losses previously deferred into other comprehensive income/(losses) to net income/(loss) within other expense/(income). We formally document our risk management objectives, our strategies for undertaking the various hedge transactions, the nature of and relationships between the hedging instruments and hedged items, and the method for assessing hedge effectiveness. Additionally, for qualified hedges of forecasted transactions, we specifically identify the significant characteristics and expected terms of the forecasted transactions. If it becomes probable that a forecasted transaction will not occur, the hedge will no longer be effective and all of the derivative gains or losses would be recognized in net income/(loss) in the current period. Unrealized gains and losses on our commodity derivatives not designated as hedging instruments are recorded in cost of products sold and are included within general corporate expenses until realized. Once realized, the gains and losses are included within the applicable segment operating results. See Note 13, Financial Instruments , for additional information. Our designated and undesignated derivative contracts include: • Net investment hedges. We have numerous investments in our foreign subsidiaries, the net assets of which are exposed to volatility in foreign currency exchange rates. We manage this risk by utilizing derivative and non-derivative instruments, including cross-currency swap contracts, foreign exchange contracts, and certain foreign denominated debt designated as net investment hedges. We exclude the interest accruals on cross-currency swap contracts and the forward points on foreign exchange forward contracts from the assessment and measurement of hedge effectiveness. We recognize the interest accruals on cross-currency swap contracts in net income/(loss) within interest expense. We amortize the forward points on foreign exchange contracts into net income/(loss) within interest expense over the life of the hedging relationship. • Foreign currency cash flow hedges. We use various financial instruments to mitigate our exposure to changes in exchange rates from third-party and intercompany actual and forecasted transactions. Our principal foreign currency exposures that are hedged include the British pound sterling, euro, and Canadian dollar. These instruments include cross-currency swap contracts and foreign exchange forward and option contracts. Substantially all of these derivative instruments are highly effective and qualify for hedge accounting treatment. We exclude the interest accruals on cross-currency swap contracts and the forward points and option premiums or discounts on foreign exchange contracts from the assessment and measurement of hedge effectiveness and amortize such amounts into net income/(loss) in the same line item as the underlying hedged item over the life of the hedging relationship. • Interest rate cash flow hedges. From time to time, we have used derivative instruments, including interest rate swaps, as part of our interest rate risk management strategy. We have primarily used interest rate swaps to hedge the variability of interest payment cash flows on a portion of our future debt obligations. • Commodity derivatives. We are exposed to price risk related to forecasted purchases of certain commodities that we primarily use as raw materials. We enter into commodity purchase contracts primarily for dairy products, meat products, coffee beans, sugar, vegetable oils, wheat products, corn products, and cocoa products. These commodity purchase contracts generally are not subject to the accounting requirements for derivative instruments and hedging activities under the normal purchases and normal sales exception. We also use commodity futures, options, and swaps to economically hedge the price of certain commodity costs, including the commodities noted above, as well as packaging products, diesel fuel, and natural gas. We do not designate these commodity contracts as hedging instruments. We also occasionally use futures to economically cross hedge a commodity exposure. Translation of Foreign Currencies: For all significant foreign operations, the functional currency is the local currency. Assets and liabilities of these operations are translated at the exchange rate in effect at each period end. Income statement accounts are translated at the average rate of exchange prevailing during the period. Translation adjustments arising from the use of differing exchange rates from period to period are included as a component of accumulated other comprehensive income/(losses) on the balance sheet. Gains and losses from foreign currency transactions are included in net income/(loss) for the period. Highly Inflationary Accounting: We apply highly inflationary accounting if the cumulative inflation rate in an economy for a three-year period meets or exceeds 100%. Under highly inflationary accounting, the financial statements of a subsidiary are remeasured into our reporting currency (U.S. dollars) based on the legally available exchange rate at which we expect to settle the underlying transactions. Exchange gains and losses from the remeasurement of monetary assets and liabilities are reflected in net income/(loss), rather than accumulated other comprehensive income/(losses) on the balance sheet, until such time as the economy is no longer considered highly inflationary. Certain non-monetary assets and liabilities are recorded at the applicable historical exchange rates. We apply highly inflationary accounting to the results of our subsidiaries in Venezuela and Argentina. The net monetary assets of our subsidiary in Argentina were approximately $1 million at December 28, 2019 . See Note 15, Venezuela - Foreign Currency and Inflation , for additional information related to our subsidiary in Venezuela. |
New Accounting Standards (Notes
New Accounting Standards (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Standards | New Accounting Standards Accounting Standards Adopted in the Current Year Leases: In February 2016, the Financial Accounting Standards Board (the “FASB”) issued accounting standards update (“ASU”) 2016-02 to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The updated guidance requires lessees to reflect the majority of leases on their balance sheets as assets and obligations. This ASU became effective beginning in the first quarter of our fiscal year 2019. We adopted this ASU in the first quarter of 2019 using a modified retrospective transition method and elected the following practical expedients: (i) the optional transition method that allows us to apply the guidance at the adoption date and recognize any adjustments that result from applying Accounting Standards Codification (“ASC”) Topic 842, Leases , to existing leases as a cumulative-effect adjustment to the opening balance of retained earnings/(deficit) in the period of adoption (i.e., the effective date); (ii) the package of practical expedients that allows us to carry forward our determination of whether a lease exists, the classification of a lease, and whether initial direct lease costs exist for purposes of transition to the new standard; (iii) the land easement option, which allows us to continue to use prior accounting conclusions reached in our accounting for land easements; and (iv) the short-term lease exemption whereby we will not record an asset or liability for short-term leases. The most significant impact of adoption on our consolidated financial statements was the recognition of ROU assets and lease liabilities for operating leases. Our accounting for finance leases remained substantially unchanged. Upon adoption, we had total lease assets of $821 million and total lease liabilities of $887 million . The adoption of this ASU did not result in a cumulative-effect adjustment to the opening balance of retained earnings/(deficit) and did not impact our consolidated statements of income or our cash flows. See Note 2, Significant Accounting Policies , for our lease accounting policy and Note 19, Leases , for additional information related to our lease arrangements. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income: In February 2018, the FASB issued ASU 2018-02 related to reclassifying tax effects stranded in accumulated other comprehensive income/(losses) because of the Tax Cuts and Jobs Act (“U.S. Tax Reform”) enacted on December 22, 2017. U.S. Tax Reform reduced the U.S. federal corporate tax rate from 35.0% to 21.0%. ASC Topic 740, Income Taxes , requires the remeasurement of deferred tax assets and liabilities as a result of such changes in tax laws or rates to be presented in net income/(loss) from continuing operations. However, the related tax effects of such deferred tax assets and liabilities may have been originally recorded in other comprehensive income/(loss). This ASU allows companies to reclassify such stranded tax effects from accumulated other comprehensive income/(losses) to retained earnings/(deficit). This reclassification adjustment is optional, and if elected, may be applied either to the period of adoption or retrospectively to the period(s) impacted by U.S. Tax Reform. Additionally, this ASU requires companies to disclose the policy election for stranded tax effects as well as the general accounting policy for releasing income tax effects from accumulated other comprehensive income/(losses). This ASU became effective beginning in the first quarter of our fiscal year 2019. We adopted this ASU on the first day of our fiscal year 2019 and made the policy election to reclassify stranded tax effects from accumulated other comprehensive income/(losses) to retained earnings/(deficit) in the period of adoption. The impact of this policy election was an increase to retained earnings/(deficit) and a corresponding decrease to accumulated other comprehensive income/(losses) of $136 million . We generally release income tax effects from accumulated other comprehensive income/(losses) when the entire portfolio of the item giving rise to the tax effect is disposed of, liquidated, or terminated. Accounting Standards Not Yet Adopted Measurement of Current Expected Credit Losses: In June 2016, the FASB issued ASU 2016-13 to update the methodology used to measure current expected credit losses (“CECL”). This ASU applies to financial assets measured at amortized cost, including loans, held-to-maturity debt securities, net investments in leases, and trade accounts receivable as well as certain off-balance sheet credit exposures, such as loan commitments. This ASU replaces the current incurred loss impairment methodology with a methodology to reflect CECL and requires consideration of a broader range of reasonable and supportable information to explain credit loss estimates. The guidance must be adopted using a modified retrospective transition method through a cumulative-effect adjustment to retained earnings/(deficit) in the period of adoption. This ASU will be effective beginning in the first quarter of our fiscal year 2020. We do not expect this guidance to have a significant impact on our financial statements and related disclosures. Fair Value Measurement Disclosures: In August 2018, the FASB issued ASU 2018-13 related to fair value measurement disclosures. This ASU removes the requirement to disclose the amount of and reasons for transfers between Levels 1 and 2 of the fair value hierarchy, the policy for determining that a transfer has occurred, and valuation processes for Level 3 fair value measurements. Additionally, this ASU modifies the disclosures related to the measurement uncertainty for recurring Level 3 fair value measurements (by removing the requirement to disclose sensitivity to future changes) and the timing of liquidation of investee assets (by removing the timing requirement in certain instances). The guidance also requires new disclosures for Level 3 financial assets and liabilities, including the amount and location of unrealized gains and losses recognized in other comprehensive income/(loss) and additional information related to significant unobservable inputs used in determining Level 3 fair value measurements. This ASU will be effective beginning in the first quarter of our fiscal year 2020. Early adoption of the guidance in whole is permitted. Alternatively, companies may early adopt removed or modified disclosures and delay adoption of the additional disclosures until their effective date. Certain of the amendments in this ASU must be applied prospectively upon adoption, while other amendments must be applied retrospectively upon adoption. We elected to early adopt the provisions related to removing disclosures in the fourth quarter of our fiscal year 2018 on a retrospective basis. Accordingly, we removed certain disclosures from Note 12, Postemployment Benefits and Note 13, Financial Instruments . There was no other impact to our financial statement disclosures as a result of early adopting the provisions related to removing disclosures. Disclosure Requirements for Certain Employer-Sponsored Benefit Plans: In August 2018, the FASB issued ASU 2018-14 related to the disclosure requirements for employers that sponsor defined benefit pension and other postretirement benefit plans. The guidance requires sponsors of these plans to provide additional disclosures, including weighted-average interest rates used in the company’s cash balance plans and a narrative description of reasons for any significant gains or losses impacting the benefit obligation for the period. Additionally, this guidance eliminates certain previous disclosure requirements. This ASU will be effective beginning with our Annual Report on Form 10-K for the year ended December 26, 2020. This guidance must be applied on a retrospective basis to all periods presented. Implementation Costs Incurred in Hosted Cloud Computing Service Arrangements: In August 2018, the FASB issued ASU 2018-15 related to accounting for implementation costs incurred in hosted cloud computing service arrangements. Under the new guidance, implementation costs incurred in a hosting arrangement that is a service contract should be expensed or capitalized based on the nature of the costs and the project stage during which such costs are incurred. If the implementation costs qualify for capitalization, they must be amortized over the term of the hosting arrangement and assessed for impairment. Companies must disclose the nature of any hosted cloud computing service arrangements. This ASU also provides guidance for balance sheet and income statement presentation of capitalized implementation costs and statement of cash flows presentation for the related payments. This ASU will be effective beginning in the first quarter of our fiscal year 2020. This guidance may be adopted either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We will prospectively adopt this guidance and do not expect that it will have a significant impact on our financial statements and related disclosures. Simplifying the Accounting for Income Taxes: In December 2019, the FASB issued ASU 2019-12 to simplify the accounting in ASC 740, Income Taxes . This guidance removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC 740. This ASU will be effective beginning in the first quarter of our fiscal year 2021. Early adoption is permitted. Certain amendments in this update must be applied on a prospective basis, certain amendments must be applied on a retrospective basis, and certain amendments must be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings/(deficit) in the period of adoption. We are currently evaluating the impact this ASU will have on our financial statements and related disclosures as well as the timing of adoption. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions Primal Acquisition: On January 3, 2019 (the “Primal Acquisition Date”), we acquired 100% of the outstanding equity interests in Primal Nutrition, LLC (“Primal Nutrition”) (the “Primal Acquisition”), a better-for-you brand primarily focused on condiments, sauces, and dressings, with growing product lines in healthy snacks and other categories . The Primal Kitchen brand holds leading positions in the e-commerce and natural channels. The results of Primal Nutrition have been included in our consolidated financial statements for the year ended December 28, 2019. We have not included unaudited pro forma results as it would not yield significantly different results. The Primal Acquisition was accounted for under the acquisition method of accounting for business combinations. The total cash consideration paid for Primal Nutrition was $201 million . We utilized estimated fair values at the Primal Acquisition Date to allocate the total consideration exchanged to the net tangible and intangible assets acquired and liabilities assumed. The fair value estimates of the assets acquired and liabilities assumed were subject to adjustment during the measurement period (up to one year from the Primal Acquisition Date). The purchase price allocation for the Primal Acquisition was final as of September 28, 2019. The final purchase price allocation to assets acquired and liabilities assumed in the Primal Acquisition was (in millions): Cash $ 2 Other current assets 15 Identifiable intangible assets 66 Current liabilities (6 ) Net assets acquired 77 Goodwill on acquisition 124 Total consideration $ 201 The Primal Acquisition resulted in $124 million of non tax deductible goodwill relating principally to planned expansion of the Primal Kitchen brand into new channels and categories. This goodwill was allocated to the United States segment as shown in Note 9, Goodwill and Intangible Assets . The purchase price allocation to identifiable intangible assets acquired in the Primal Acquisition was: 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 We valued trademarks using the relief from royalty method and customer-related assets using the distributor method. Some of the more significant assumptions inherent in developing the valuations included the estimated annual net cash flows for each definite-lived intangible asset (including net sales, cost of products sold, selling and marketing costs, and working capital/contributory asset charges), the discount rate that appropriately reflects the risk inherent in each future cash flow stream, the assessment of each asset’s life cycle, and competitive trends, as well as other factors. We determined the assumptions used in the financial forecasts using historical data, supplemented by current and anticipated market conditions, estimated product category growth rates, management’s plans, and market comparables. We used carrying values as of the Primal Acquisition Date to value certain current and non-current assets and liabilities, as we determined that they represented the fair value of those items at the Primal Acquisition Date. Cerebos Acquisition: On March 9, 2018 (the “Cerebos Acquisition Date”), we acquired 100% of the outstanding equity interests in Cerebos Pacific Limited (“Cerebos”) (the “Cerebos Acquisition”), an Australian food and beverage company. The Cerebos Acquisition was accounted for under the acquisition method of accounting for business combinations. The total cash consideration paid for Cerebos was $244 million . We utilized estimated fair values at the Cerebos Acquisition Date to allocate the total consideration exchanged to the net tangible and intangible assets acquired and liabilities assumed. Such allocation was final as of December 29, 2018 . The final purchase price allocation to assets acquired and liabilities assumed in the Cerebos Acquisition was (in millions): 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 The Cerebos Acquisition resulted in $25 million of non tax deductible goodwill relating principally to planned expansion of Cerebos brands into new categories and markets. This goodwill was allocated to Rest of World as shown in Note 9, Goodwill and Intangible Assets . The final purchase price allocation to identifiable intangible assets acquired in the Cerebos Acquisition was: Fair Value (in millions of dollars) Weighted Average Life (in years) Definite-lived trademarks $ 87 22 Customer-related assets 13 12 Total $ 100 We valued trademarks using the relief from royalty method and customer-related assets using the distributor method. Some of the more significant assumptions inherent in developing the valuations included the estimated annual net cash flows for each definite-lived intangible asset (including net sales, cost of products sold, selling and marketing costs, and working capital/contributory asset charges), the discount rate that appropriately reflects the risk inherent in each future cash flow stream, the assessment of each asset’s life cycle, and competitive trends, as well as other factors. We determined the assumptions used in the financial forecasts using historical data, supplemented by current and anticipated market conditions, estimated product category growth rates, management’s plans, and market comparables. We used carrying values as of the Acquisition Date to value trade receivables and payables, as well as certain other current and non-current assets and liabilities, as we determined that they represented the fair value of those items at the Acquisition Date. We valued finished goods and work-in-process inventory using a net realizable value approach. Raw materials and packaging inventory was valued using the replacement cost approach. We valued property, plant and equipment using a combination of the income approach, the market approach, and the cost approach, which is based on the current replacement and/or reproduction cost of the asset as new, less depreciation attributable to physical, functional, and economic factors. Other Acquisitions: In the third quarter of 2018, we had two additional acquisitions of businesses, including The Ethical Bean Coffee Company Ltd., a Canadian-based coffee roaster, and Wellio, Inc., a full-service meal planning and preparation technology start-up in the U.S. The aggregate consideration paid related to these acquisitions was $27 million . Deal Costs: Related to our acquisitions, we incurred aggregate deal costs of $2 million in 2019 and $20 million in 2018. We recognized these deal costs primarily in SG&A. We did no t incur any deal costs in 2017. Divestitures Potential Disposition: As of December 28, 2019, we were in negotiations with a prospective buyer for 100% of the equity interests in a subsidiary within our Rest of World segment for cash of approximately $55 million . This subsidiary generated approximately $1 million of net income in 2019. The aggregate carrying value of net assets to be transferred and accumulated foreign currency losses to be released is expected to be approximately $126 million . As a result, we recorded a loss of approximately $71 million in 2019 related to this transaction. This loss was included in other expense/(income). In addition, we have classified the related assets and liabilities as held for sale on the consolidated balance sheet at December 28, 2019. We expect this transaction to close in the first half of 2020. Heinz India Transaction: In October 2018, we entered into a definitive agreement with two third-parties, Zydus Wellness Limited and Cadila Healthcare Limited (collectively, the “Buyers”), to sell 100% of our equity interests in Heinz India Private Limited (“Heinz India”) for approximately 46 billion Indian rupees (approximately $655 million at January 30, 2019 ) (the “Heinz India Transaction”). In connection with the Heinz India Transaction, we transferred to the Buyers, among other assets and operations, our global intellectual property rights to several brands, including Complan , Glucon-D , Nycil , and Sampriti . Our core brands (i.e., Heinz and Kraft ) were not transferred. The Heinz India Transaction closed on January 30, 2019 (the “Heinz India Closing Date”). We recognized a pre-tax gain of $246 million in the first quarter of 2019. Additionally, in the third quarter of 2019, we recognized a recovery of local India taxes of $3 million , which was classified as gain on sale of business. As a result, we recognized pre-tax gains of $249 million in 2019. These pre-tax gains were included in other expense/(income). The components of the pre-tax gain were as follows (in millions): Proceeds $ 655 Less investment in Heinz India (355 ) Recognition of tax indemnification (48 ) Other (3 ) Pre-tax gain on sale of Heinz India $ 249 In connection with the Heinz India Transaction we agreed to indemnify the Buyers from and against any tax losses for any taxable period prior to the Heinz India Closing Date, including taxes for which we are liable as a result of any transaction that occurred on or before such date. To determine the fair value of our tax indemnity we made various assumptions, including the range of potential dates the tax matters will be resolved, the range of potential future cash flows, the probabilities associated with potential resolution dates and potential future cash flows, and the discount rate. We recorded tax indemnity liabilities related to the Heinz India Transaction totaling approximately $48 million , including $18 million in other current liabilities and $30 million in other non-current liabilities on our consolidated balance sheet as of the Heinz India Closing Date. We also recorded a corresponding $48 million reduction of the gain on the Heinz India Transaction within other expense/(income) in our consolidated statement of income in the first quarter of 2019. Future changes to the fair value of these tax indemnity liabilities will continue to impact other expense/(income) throughout the life of the exposures as a component of the gain on sale for the Heinz India Transaction. The other component of the pre-tax gain on the sale of Heinz India in the table above primarily related to losses on net investment hedges of our investment in Heinz India, which were settled in the first quarter of 2019, and were partially offset by the local India tax recovery in the third quarter of 2019. Canada Natural Cheese Transaction: In November 2018, we entered into a definitive agreement with a third-party, Parmalat SpA (“Parmalat”), to sell certain assets in our natural cheese business in Canada for approximately 1.6 billion Canadian dollars (approximately $1.2 billion at July 2, 2019) (the “Canada Natural Cheese Transaction”). In connection with the Canada Natural Cheese Transaction, we transferred certain assets to Parmalat, including the intellectual property rights to Cracker Barrel in Canada and P’Tit Quebec globally. The Canada Natural Cheese Transaction closed on July 2, 2019. We recognized a pre-tax gain of $242 million , which was included in other expense/(income) in 2019. The components of the pre-tax gain were as follows (in millions): 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 South Africa Transaction: In May 2018, we sold our 50.1% interest in our South African subsidiary to our minority interest partner. This transaction included proceeds of $18 million . We recorded a pre-tax loss on the sale of a business of approximately $15 million , which was included in other expense/(income) on the consolidated statement of income for 2018. Deal Costs: Related to our divestitures, we incurred aggregate deal costs of $17 million in 2019 and $3 million in 2018. We recognized these deal costs in SG&A. We did no t incur any deal costs in 2017. Held for Sale Our assets and liabilities held for sale, by major class, were (in millions): 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 The change in assets and liabilities held for sale in 2019 was primarily related to the Heinz India Transaction closing on January 30, 2019 and the Canada Natural Cheese Transaction closing on July 2, 2019. The balances held for sale at December 28, 2019 primarily relate to a business in our Rest of World segment, as well as certain manufacturing equipment and land use rights across the globe. |
Restructuring Activities (Notes
Restructuring Activities (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Activities As part of our restructuring activities, we incur expenses that qualify as exit and disposal costs under U.S. GAAP. These include severance and employee benefit costs and other exit costs. Severance and employee benefit costs primarily relate to cash severance, non-cash severance, including accelerated equity award compensation expense, and pension and other termination benefits. Other exit costs primarily relate to lease and contract terminations. We also incur expenses that are an integral component of, and directly attributable to, our restructuring activities, which do not qualify as exit and disposal costs under U.S. GAAP. These include asset-related costs and other implementation costs. Asset-related costs primarily relate to accelerated depreciation and asset impairment charges. Other implementation costs primarily relate to start-up costs of new facilities, professional fees, asset relocation costs, costs to exit facilities, and costs associated with restructuring benefit plans. Employee severance and other termination benefit packages are primarily determined based on established benefit arrangements, local statutory requirements, or historical benefit practices. We recognize the contractual component of these benefits when payment is probable and estimable; additional elements of severance and termination benefits associated with non-recurring benefits are recognized ratably over each employee’s required future service period. Charges for accelerated depreciation are recognized on long-lived assets that will be taken out of service before the end of their normal service, in which case depreciation estimates are revised to reflect the use of the asset over its shortened useful life. Asset impairments establish a new fair value basis for assets held for disposal or sale, and those assets are written down to expected net realizable value if carrying value exceeds fair value. All other costs are recognized as incurred. Restructuring Activities: We have restructuring programs globally, which are focused primarily on workforce reduction and factory closure and consolidation. In 2019, we eliminated approximately 400 positions related to these programs. As of December 28, 2019 , we expect to eliminate approximately 550 additional positions related to these programs primarily outside the U.S. due to the planned formation of the International zone in 2020. These programs resulted in expenses of $108 million in 2019, including $15 million of severance and employee benefit costs, $37 million of non-cash asset-related costs, and $55 million of other implementation costs, and $1 million of other exit costs. Restructuring expenses totaled $368 million in 2018 and $118 million in 2017. Our net liability balance for restructuring project costs that qualify as exit and disposal costs under U.S. GAAP (i.e., severance and employee benefit costs and other exit costs) was (in millions): 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 We expect the liability for severance and employee benefit costs as of December 28, 2019 to be paid by the end of 2020. The liability for other exit costs primarily relates to lease obligations. The cash impact of these obligations will continue for the duration of the lease terms, which expire between 2020 and 2026. Integration Program: At the end of 2017, we had substantially completed our multi-year program announced following the 2015 Merger (the “Integration Program”), which was designed to reduce costs and integrate and optimize our combined organization, primarily in the U.S. and Canada reportable segments. We incurred pre-tax costs related to the Integration Program of $92 million in 2018 and $316 million in 2017. No such expenses were incurred in 2019. Total Expenses: Total expense/(income) related to restructuring activities, including the Integration Program, by income statement caption, were (in millions): 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 We do not include our restructuring activities, including the Integration Program, within Segment Adjusted EBITDA (as defined in Note 22, Segment Reporting ). The pre-tax impact of allocating such expenses to our segments would have been (in millions): 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 |
Restricted Cash (Notes)
Restricted Cash (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Restricted Cash | Restricted Cash The following table provides a reconciliation of cash and cash equivalents, as reported on our consolidated balance sheets, to cash, cash equivalents, and restricted cash, as reported on our consolidated statements of cash flows (in millions): 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 At December 28, 2019 , cash and cash equivalents excluded amounts classified as held for sale. See Note 4, Acquisitions and Divestitures , for additional information. |
Inventories (Notes)
Inventories (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in millions): 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 At December 28, 2019 and December 29, 2018 , inventories excluded amounts classified as held for sale. See Note 4, Acquisitions and Divestitures , for additional information. |
Property, Plant and Equipment (
Property, Plant and Equipment (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Property, Plant and Equipment Property, plant and equipment consisted of the following (in millions): 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 At December 28, 2019 and December 29, 2018 , property, plant and equipment, net, excluded amounts classified as held for sale. See Note 4, Acquisitions and Divestitures , for additional information. Depreciation expense was $708 million in 2019, $693 million in 2018, and $753 million in 2017. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill: Changes in the carrying amount of goodwill, by segment, were (in millions): 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 In the first quarter of 2019, we completed the acquisition of Primal Nutrition. Additionally, at December 29, 2018 , goodwill excluded amounts classified as held for sale. See Note 4, Acquisitions and Divestitures , for additional information related to this acquisition, as well as amounts held for sale. We maintain 19 reporting units, 11 of which comprise our goodwill balance. These 11 reporting units had an aggregate carrying amount of $35.5 billion as of December 28, 2019 . We test our reporting units for impairment annually as of the first day of our second quarter, or more frequently if events or circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In connection with the preparation of the first quarter financial statements, which occurred concurrently with the preparation of the second quarter financial statements due to the delay in the filing of our Annual Report on Form 10-K for the year ended December 29, 2018, we concluded that it was more likely than not that the fair values of three of our 19 reporting units (EMEA East, Brazil and Latin America Exports) were below their carrying amounts. The factors that led to this conclusion included: (i) changes in management structure which triggered the reorganization of the EMEA East and Latin America Exports reporting units in the first quarter; (ii) new management in certain of these reporting units coupled with the development of our five-year operating plan assumptions for each of these reporting units in the first quarter, which established revised expectations and priorities for the coming years in response to current market factors, such as lower revenue growth and margin expectations; (iii) increases in discount rates used to value reporting units in these regions due to expectations of increased risk in these emerging markets; and (iv) fluctuations in forecasted foreign exchange rates in certain countries. We recognized a non-cash impairment loss of $620 million in SG&A in the first quarter of 2019 related to the three reporting units noted above that are contained within our EMEA and Rest of World segments. We determined the factors contributing to the impairment loss were the result of circumstances that arose during the first quarter of 2019. We recognized a $286 million impairment loss in our EMEA East reporting unit within our EMEA segment. In the first quarter of 2019, we reorganized our reporting units to combine Russia, Poland, Middle East, and Distributors operations into the EMEA East reporting unit as a result of changing our management structure. Following this reorganization, we established a new management team in the region at the beginning of 2019 that developed a new five-year operating plan for the region, which established a revised downward outlook for net sales, margin, and cash flows in response to lower expectations for margin and revenue growth opportunities in the region. As a result of this planning process, management revised its expectations downward in relation to the anticipated long-term impact of white space growth opportunities in Middle East and Africa and the impact of discounter store growth in Russia. Additionally, there were declines in forecasted foreign exchange rates in the region. After the impairment, the goodwill carrying amount of the EMEA East reporting unit was approximately $144 million . We recognized a $205 million impairment loss in our Brazil reporting unit within our Rest of World segment. During the first quarter, we observed lower than expected performance in launches of new products coupled with the de-listing of certain existing products as well as higher costs due to changes in our sourcing approach to support revenue growth plans. We developed a new five-year operating plan for the region in the first quarter of 2019, which produced a revised outlook for net sales and margins in contemplation of these events and after considering their potential long-term impacts. Additionally, there were declines in forecasted foreign exchange rates in the region. The impairment of the Brazil reporting unit represents all of the goodwill of that reporting unit. We recognized a $129 million impairment loss in our Latin America Exports reporting unit within our Rest of World segment. In the first quarter of 2019, we reorganized our reporting units to combine Puerto Rico and our Other Latin America Exports business with Costa Rica, Panama, Colombia, Argentina, and Andinos operations (which were part of the previously fully impaired Other Latin America reporting unit and thus had previously been identified as having a fair value less than carrying amount) into the Latin America Exports reporting unit as a result of changing our management structure. We developed a new five-year operating plan for the region in the first quarter of 2019, which produced a revised downward outlook for net sales and margins and adjusted cash flow forecasts to reflect lower expectations in the market, higher costs associated with changes in our sourcing approach, and increased investments in the business to support growth in these emerging markets. After the impairment, the goodwill carrying amount of the Latin America Exports reporting unit was approximately $297 million . We performed our 2019 annual impairment test as of March 31, 2019, which is the first day of our second quarter in 2019 (this was performed concurrently with the preparation of the first and second quarter 2019 financial statements due to the delay in the filing of our Annual Report on Form 10-K for the year ended December 29, 2018). We utilized the discounted cash flow method under the income approach to estimate the fair value of our reporting units. Through the performance of the 2019 annual impairment test, we identified an impairment related to the U.S. Refrigerated reporting unit. This impairment was primarily due to an increase in the discount rate assumption used for the fair value estimation. The increase in the discount rate was applied to reflect a market participants’ perceived risk in the valuation implied by the sustained reduction in our stock price and, hence, market capitalization (which decreased approximately 25% from December 29, 2018 to the March 31, 2019 annual impairment test date and sustained this decline through June 29, 2019). Since this valuation assumption change was made in connection with the annual impairment test in the second quarter of 2019 and was not indicative of events or conditions that would have constituted a triggering event during the first quarter of 2019, we recorded a non-cash impairment loss of $118 million in SG&A in the second quarter of 2019 within our United States segment. The goodwill carrying amount of this reporting unit was $7.0 billion after the impairment. The goodwill carrying amounts associated with an additional six reporting units, which each had excess fair value over its carrying amount of 10% or less based on the results of our 2019 annual impairment assessment, were $18.6 billion for U.S. Grocery, $3.9 billion for U.S. Foodservice, $2.1 billion for Canada Retail, $370 million for Australia and New Zealand, $368 million for Canada Foodservice, and $83 million for Northeast Asia as of the annual impairment test date. The goodwill carrying amount associated with one additional reporting unit, which had excess fair value over its carrying amount between 10 - 20% , was $593 million for Continental Europe as of the annual impairment test date. The aggregate goodwill carrying amount of reporting units with fair value over carrying amount between 20 - 50% was $2.4 billion as of the annual impairment test date, and there were no reporting units with fair value over carrying amount in excess of 50% . In the fourth quarter of 2019, in connection with the preparation of our year-end financial statements, we determined that it was more likely than not that the fair values of three of our 19 reporting units (Australia and New Zealand, Latin America Exports, and Northeast Asia) were below their carrying amounts. The factors that led to this determination included: (i) the completion of our fourth quarter 2019 results, which were below management’s expectations in these regions due to higher supply chain costs and reduced revenue growth; and (ii) new management of these reporting units coupled with the development and approval of our 2020 annual operating plan, which established revised expectations and priorities for the coming years in response to current market factors, such as lower revenue growth and margin expectations. We recognized a non-cash impairment loss of $453 million in SG&A in the fourth quarter of 2019 related to two of the reporting units noted above that are contained within our Rest of World segment. We determined the factors contributing to the impairment loss were the result of circumstances described below that arose during the fourth quarter of 2019. We recognized a $357 million non-cash impairment loss in our Australia and New Zealand reporting unit within our Rest of World segment. During the fourth quarter, we observed lower than expected revenue and profitability driven by increased operational costs, portfolio rationalization projects, declines in sales categories within Australia and New Zealand, and reduced market share realization for specific categories in New Zealand. Additionally, we established a new management team in the region that developed a 2020 annual operating plan, which set lower expectations for revenue growth and profit margins in the coming years in response to current market factors. The impairment of the Australia and New Zealand reporting unit represents all of the goodwill of that reporting unit. We recognized a $96 million non-cash impairment loss in our Latin America Exports reporting unit within our Rest of World segment. During the fourth quarter, we observed lower than expected revenue and profitability due to higher supply chain costs along with less favorable expansion into new channels and loss of certain significant customers. Additionally, we established a new management team in the region that developed a 2020 annual operating plan, which set lower expectations for revenue growth and profit margins in the coming years in response to current market factors. After the impairment, the goodwill carrying amount of the Latin America Exports reporting unit was approximately $195 million . We concluded that an impairment charge was not required for our Northeast Asia reporting unit since declines in expectations for 2020, which were partially offset by lower discount rates, were not substantial enough to cause the fair value of the reporting unit to be below its carrying amount. The goodwill carrying amount of the Northeast Asia reporting unit is approximately $83 million and the fair value is between 10 - 20% over carrying amount. The decline in forecasted cash flows of Australia and New Zealand, Latin America Exports, and Northeast Asia were all partially offset by lower market driven discount rates that limited the declines in fair value. Should market interest rates increase in future periods, the likelihood for further impairment will rise. During the third quarter of 2019, certain organizational changes were announced that will impact our future internal reporting and reportable segments. As a result of these changes, we plan to combine our EMEA, Latin America, and APAC zones to form the International zone. The International zone will be a reportable segment along with the United States and Canada in 2020. We also plan to move our Puerto Rico business from the Latin America zone to the United States zone to consolidate and streamline the management of our product categories and supply chain. These changes will be effective in the first quarter of 2020. As a result of the transition, we expect to perform impairment testing immediately before and after reorganizing our reporting unit structure. When we perform the transition impairment test associated with the reorganization in the first quarter of 2020, we anticipate that a substantial portion of the remaining goodwill carrying amounts for the Latin America Exports and Northeast Asia reporting units (with carrying amounts of $195 million and $83 million , respectively) may be subject to additional impairments. As a result of our 2018 annual impairment test, we recognized a non-cash impairment loss of $133 million in SG&A related to our Australia and New Zealand reporting unit within our Rest of World segment in the second quarter of 2018. This impairment loss was primarily due to margin declines in the region. For the fourth quarter of 2018, in connection with the preparation of our year-end financial statements, we assessed the changes in circumstances that occurred during the quarter to determine if it was more likely than not that the fair values of any reporting units were below their carrying amounts. As we determined that it was more likely than not that the fair values of seven reporting units were below their carrying amounts, we performed an interim impairment test on these reporting units as of December 29, 2018 . As a result of our interim test, we recognized a non-cash impairment loss of $6.9 billion in SG&A related to five reporting units, including U.S. Refrigerated, Canada Retail, Southeast Asia, Northeast Asia, and Other Latin America. The other two reporting units we tested were determined to not be impaired. See Note 10, Goodwill and Intangible Assets , in our Annual Report on Form 10-K for the year ended December 29, 2018 for additional information on these impairment losses. Accumulated impairment losses to goodwill were $8.2 billion at December 28, 2019 . Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions, estimates, and market factors. Estimating the fair value of individual reporting units requires us to make assumptions and estimates regarding our future plans, as well as industry, economic, and regulatory conditions. These assumptions and estimates include estimated future annual net cash flows, income tax rates, discount rates, growth rates , and other market factors. If current expectations of future growth rates and margins are not met, if market factors outside of our control, such as discount rates, change, or if management’s expectations or plans otherwise change, including as a result of updates to our global five-year operating plan, then one or more of our reporting units might become impaired in the future . We are currently actively reviewing the enterprise strategy for the Company. As part of this strategic review, we expect to develop updates to the five-year operating plan in 2020, which could impact the allocation of investments among reporting units and impact growth expectations and fair value estimates. Additionally, as a result of this strategic review process, we could decide to divest certain non-strategic assets. As a result, the ongoing development of the enterprise strategy and underlying detailed business plans could lead to the impairment of one or more of our reporting units in the future . Our reporting units that were impaired in 2018 and 2019 were written down to their respective fair values resulting in zero excess fair value over carrying amount as of the applicable impairment test dates. Accordingly, these and other individual reporting units that have 20% or less excess fair value over carrying amount as of their latest 2019 impairment testing date have a heightened risk of future impairments if any assumptions, estimates, or market factors change in the future. Although the remaining reporting units have more than 20% excess fair value over carrying amount as of their latest 2019 impairment testing date, these amounts are also associated with the 2013 Heinz acquisition and the 2015 Merger and are recorded on the balance sheet at their estimated acquisition date fair values. Therefore, if any estimates, market factors, or assumptions, including those related to our enterprise strategy or business plans, change in the future, these amounts are also susceptible to impairments. Indefinite-lived intangible assets: Changes in the carrying amount of indefinite-lived intangible assets, which primarily consisted of trademarks, were (in millions): 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 At December 28, 2019 and December 29, 2018 , indefinite-lived intangible assets excluded amounts classified as held for sale. See Note 4, Acquisitions and Divestitures , for additional information on amounts held for sale. Our indefinite-lived intangible asset balance primarily consists of a number of individual brands , which had an aggregate carrying amount of $43.4 billion as of December 28, 2019 . We test our brands for impairment annually as of the first day of our second quarter, or more frequently if events or circumstances indicate it is more likely than not that the fair value of a brand is less than its carrying amount. We performed our 2019 annual impairment test as of March 31, 2019, which is the first day of our second quarter in 2019. As a result of our 2019 annual impairment test, we recognized a non-cash impairment loss of $474 million in SG&A in the second quarter of 2019 primarily related to six brands ( Miracle Whip , Velveeta , Lunchables , Maxwell House , Philadelphia, and Cool Whip) . This impairment loss was recorded in our United States segment, consistent with the ownership of the trademarks. The impairment for these brands was largely due to an increase in the discount rate assumptions used for the fair value estimations. The increase in the discount rate was applied to reflect a market participants’ perceived risk in the valuation implied by the sustained reduction in our stock price and, hence, market capitalization (which decreased approximately 25% from December 29, 2018 to the March 31, 2019 annual impairment test date and sustained this decline through June 29, 2019). For Miracle Whip and Maxwell House , the reduction in fair value was also driven by lower expectations of near and long-term net sales growth that were adjusted in the second quarter of 2019 due to anticipated trends in consumer preferences. For Lunchables , the reduction in fair value was also due to lower forecasted net sales and royalty rate assumptions associated with lower profit margin expectations driven by pricing actions at certain customers. For Velveeta , Philadelphia , and Cool Whip , no assumption changes other than the discount rate had a meaningful impact on the estimated fair value of brands. Since these valuation assumption changes were made in connection with the annual impairment test in the second quarter of 2019 and were not indicative of events or conditions that would have constituted a triggering event during the first quarter of 2019, we recorded the non-cash impairment loss in the second quarter of 2019. These brands had an aggregate carrying value of $13.5 billion prior to this impairment and $13.0 billion after impairment. The aggregate carrying amount associated with an additional three brands ( Kraft , Planters , and ABC ), which each had excess fair value over its carrying amount of 10% or less, was $13.4 billion as of the annual impairment test date. The aggregate carrying amount of an additional three brands ( Oscar Mayer , Jet Puffed , and Quero ), which each had fair value over its carrying amount of between 10-20%, was $3.6 billion as of the annual impairment test date. The aggregate carrying amount of brands with fair value over carrying amount between 20 - 50% was $4.2 billion , and the aggregate carrying amount of brands with fair value over carrying amount in excess of 50% was $9.3 billion as of the annual impairment test date. In the fourth quarter of 2019, in connection with the preparation of our year-end financial statements, we determined that it was more likely than not that the fair values of two of our brands, Maxwell House and Wattie’s , were below their carrying amounts. The factors that led us to the determination to test for impairment were the same fourth quarter considerations outlined in the goodwill impairment discussion above. As we determined that it was more likely than not that the fair values of these two brands were below their carrying amounts, we performed an interim impairment test on these brands as of December 28, 2019. We recognized a non-cash impairment loss of $213 million in SG&A in our United States segment, consistent with the ownership of the Maxwell House trademark. The reduction in fair value of the Maxwell House trademark was driven by expectations of near-term net sales and profitability declines outlined in the 2020 annual operating plan in response to consumer shifts from mainstream coffee brands to premium coffee brands. These shifts in expectations were partially offset by declines in market driven discount rates observed in the fourth quarter of 2019. Should market interest rates increase in future periods, the likelihood for further impairment will increase. We determined the factors contributing to the impairment loss were the result of circumstances that arose during the fourth quarter of 2019. This brand had a carrying value of approximately $823 million after the recorded impairment. The Wattie’s brand was determined to not be impaired. The carrying amount of the Wattie’s brand is approximately $94 million and the fair value is between 10-20% over the carrying amount. As a result of our 2018 annual impairment test, we recognized a non-cash impairment loss of $101 million in SG&A in the second quarter of 2018. This impairment loss was due to net sales and margin declines related to the Quero brand in Brazil. The impairment loss was recorded in our Rest of World segment, consistent with the ownership of the trademark. In the third quarter of 2018, we recognized a non-cash impairment loss of $215 million in SG&A related to the Smart Ones brand. This impairment loss was primarily due to reduced future investment expectations and continued sales declines in the third quarter of 2018. This impairment loss was recorded in our United States segment, consistent with the ownership of the trademark. We transferred the remaining carrying value of Smart Ones to definite-lived intangible assets. For the fourth quarter of 2018, in connection with the preparation of our year-end financial statements, we assessed the changes in circumstances that occurred during the quarter to determine if it was more likely than not that the fair values of any brands were below their carrying amounts. As we determined that it was more likely than not that the fair values of six brands were below their carrying amounts, we performed an interim impairment test on these brands as of December 29, 2018 . As a result of our interim test, we recognized a non-cash impairment loss of $8.6 billion in SG&A related to five brands, including three that were valued using the excess earnings method ( Kraft , Oscar Mayer , and Philadelphia ) and two that were valued using the relief from royalty method ( Velveeta and ABC ). The other brand we tested was determined to not be impaired. The impairment losses for Kraft , Oscar Mayer , Philadelphia, and Velveeta were recorded in our United States segment, and the ABC impairment loss was recorded in our Rest of World segment, consistent with the ownership of each trademark. See Note 10, Goodwill and Intangible Assets , in our Annual Report on Form 10-K for the year ended December 29, 2018 for additional information on these impairment losses. As a result of our 2017 annual impairment testing, we recognized a non-cash impairment loss of $49 million in SG&A in the second quarter of 2017. This loss was due to continued declines in nutritional beverages in India. The loss was recorded in our EMEA segment as the related trademark is owned by an Italian subsidiary. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions, estimates, and market factors. Estimating the fair value of individual brands requires us to make assumptions and estimates regarding our future plans, as well as industry, economic, and regulatory conditions. These assumptions and estimates include estimated future annual net cash flows, income tax considerations, discount rates, growth rates, royalty rates, contributory asset charges , and other market factors. If current expectations of future growth rates and margins are not met, if market factors outside of our control, such as discount rates, change, or if management’s expectations or plans otherwise change, including as a result of updates to our global five-year operating plan, then one or more of our brands might become impaired in the future . We are currently actively reviewing the enterprise strategy for the Company. As part of this strategic review, we expect to develop updates to the five-year operating plan in 2020, which could impact the allocation of investments among brands and impact growth expectations and fair value estimates. Additionally, as a result of this strategic review process, we could decide to divest certain non-strategic assets. As a result, the ongoing development of the enterprise strategy and underlying detailed business plans could lead to the impairment of one or more of our brands in the future . Our brands that were impaired in 2018 and 2019 were written down to their respective fair values resulting in zero excess fair value over carrying amount as of the applicable impairment test dates. Accordingly, these and other individual brands that have 20% or less excess fair value over carrying amount as of their latest 2019 impairment testing date have a heightened risk of future impairments if any assumptions, estimates, or market factors change in the future. Although the remaining brands have more than 20% excess fair value over carrying amount as of their latest 2019 impairment testing date, these amounts are also associated with the 2013 Heinz acquisition and the 2015 Merger and are recorded on the balance sheet at their estimated acquisition date fair values. Therefore, if any estimates, market factors, or assumptions, including those related to our enterprise strategy or business plans, change in the future, these amounts are also susceptible to impairments. Definite-lived intangible assets: Definite-lived intangible assets were (in millions): 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 Amortization expense for definite-lived intangible assets was $286 million in 2019, $290 million in 2018, and $278 million in 2017. Aside from amortization expense, the changes in definite-lived intangible assets from December 29, 2018 to December 28, 2019 primarily reflect additions of $66 million related to purchase accounting for Primal Nutrition , impairment losses of $15 million , and foreign currency. At December 28, 2019 and December 29, 2018 , definite-lived intangible assets excluded amounts classified as held for sale. See Note 4, Acquisitions and Divestitures , for additional information related to our acquisition of Primal Nutrition, as well as amounts held for sale. We estimate that amortization expense related to definite-lived intangible assets will be approximately $277 million in 2020 and approximately $277 million in each of the four years thereafter. |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes U.S. Tax Reform: On December 22, 2017, U.S. Tax Reform legislation was enacted by the federal government. The legislation significantly changed U.S. tax laws by, among other things, lowering the federal corporate tax rate from 35.0% to 21.0% , effective January 1, 2018 and imposing a one-time toll charge on deemed repatriated earnings of foreign subsidiaries as of December 30, 2017. In addition, there were many new provisions, including changes to bonus depreciation, revised deductions for executive compensation and interest expense, a tax on global intangible low-taxed income (“GILTI”), the base erosion anti-abuse tax (“BEAT”), and a deduction for foreign-derived intangible income (“FDII”). While the corporate tax rate reduction was effective January 1, 2018, we accounted for this anticipated rate change in 2017, the period of enactment. Staff Accounting Bulletin No. 118 issued by the Securities and Exchange Commission (the “SEC”) in December 2017 provided us with up to one year to finalize accounting for the impacts of U.S. Tax Reform and allowed for provisional estimates when actual amounts could not be determined. As of December 30, 2017, we had made estimates of our deferred income tax benefit related to the corporate rate change, the toll charge, certain components of the revaluation of deferred tax assets and liabilities, including depreciation and executive compensation, and a change in our indefinite reinvestment assertion. In connection with U.S. Tax Reform, we reassessed our international investment assertion and no longer consider the historic earnings of our foreign subsidiaries as of December 30, 2017 to be indefinitely reinvested. We made an estimate of local country withholding taxes that would be owed when our historic earnings are distributed. Additionally, we elected to account for the tax on GILTI as a period cost and thus did not adjust any of the deferred tax assets and liabilities of our foreign subsidiaries for U.S. Tax Reform. As of December 29, 2018 , we had finalized our accounting for U.S. Tax Reform. The final impact (the majority of which was recorded in 2017, the period of enactment) was a net tax benefit of approximately $7.1 billion , including a deferred tax benefit of approximately $7.5 billion related to the corporate rate change, partially offset by tax expense of $224 million related to the toll charge and $120 million for other tax expenses, including the deferred tax liability recorded for changing our indefinite reinvestment assertion. As of December 28, 2019 , we have recorded a deferred tax liability of $20 million on approximately $300 million of historic earnings related to local withholding taxes that will be owed when this cash is distributed. As of December 29, 2018 , we had recorded a deferred tax liability of $78 million on $1.2 billion of historic earnings. The decreases in our deferred tax liability and historic earnings are primarily due to repatriation. Related to these distributions, we reduced our historic earnings by approximately $700 million and recorded tax expenses of approximately $40 million and reduced the deferred tax liability accordingly. Additionally, we reduced our historic earnings by approximately $110 million following the ratification of the U.S. tax treaty with Spain which eliminated withholding tax on Spanish distributions and resulted in a tax benefit of approximately $11 million and a corresponding decrease in our deferred tax liability. Finally, we reduced our historic earnings by approximately $30 million related to a held for sale business in our Rest of World segment, which resulted in a tax benefit of approximately $6 million . Subsequent to January 1, 2018, we consider the unremitted earnings of certain international subsidiaries that impose local country taxes on dividends to be indefinitely reinvested. For those undistributed earnings considered to be indefinitely reinvested, our intent is to reinvest these funds in our international operations, and our current plans do not demonstrate a need to repatriate the accumulated earnings to fund our U.S. cash requirements. The amount of unrecognized deferred tax liabilities for local country withholding taxes that would be owed related to our 2018 and 2019 earnings of certain international subsidiaries is approximately $70 million . Provision for/(Benefit from) Income Taxes: Income/(loss) before income taxes and the provision for/(benefit from) income taxes, consisted of the following (in millions): 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 ) In the first quarter of 2017, we prospectively adopted ASU 2016-09. We now record tax benefits related to the exercise of stock options and other equity instruments within our tax provision, rather than within equity. Accordingly, we recognized a tax benefit in our statements of income of $12 million in 2019, $12 million in 2018, and $22 million in 2017 related to tax benefits upon the exercise of stock options and other equity instruments. Effective Tax Rate: The effective tax rate on income/(loss) before income taxes differed from the U.S. federal statutory tax rate for the following reasons: 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 )% The provision for income taxes consists of provisions for federal, state, and foreign income taxes. We operate in an international environment; accordingly, the consolidated effective tax rate is a composite rate reflecting the earnings in various locations and the applicable tax rates. Additionally, the calculation of the percentage point impact of U.S. Tax Reform, goodwill impairment, and other items on the effective tax rate shown in the table above are affected by income/(loss) before income taxes. Fluctuations in the amount of income generated across locations around the world could impact comparability of reconciling items between periods. Additionally, small movements in tax rates due to a change in tax law or a change in tax rates that causes us to revalue our deferred tax balances produces volatility in our effective tax rate. The 2019 effective tax rate was higher primarily driven by lower non-deductible goodwill impairments, partially offset by a more favorable geographic mix of pre-tax income in various non-U.S. jurisdictions and a decrease in unfavorable rate reconciling items. Current year unfavorable impacts primarily related to non-deductible goodwill impairments, the impact of the federal tax on GILTI , an increase in uncertain tax position reserves, the establishment of certain state valuation allowance reserves, and the tax impacts from the Heinz India and Canada Natural Cheese Transactions. These impacts were partially offset by the reversal of certain withholding tax obligations and changes in estimates of certain 2018 U.S. income and deductions. In the prior year, we had an unfavorable impact from rate reconciling items, primarily related to non-deductible goodwill impairments, the revaluation of our deferred tax balances due to changes in state tax laws, non-deductible currency devaluation losses, and the wind-up of non-U.S. pension plans, which were partially offset by changes in estimates of certain 2017 U.S. income and deductions. The 2018 effective tax rate was lower, primarily due to a decrease in the U.S. federal statutory rate, non-deductible items (including goodwill impairments, nonmonetary currency devaluation losses, and the wind-up of non-U.S. pension plans), the impact of the federal tax on GILTI, and the revaluation of our deferred tax balances due to changes in state tax laws following U.S. Tax Reform, which were partially offset by the benefit from intangible asset impairment losses in the fourth quarter of 2018. See Note 9, Goodwill and Intangible Assets , for additional information related to our impairment losses in the fourth quarter of 2018. The tax provision for the 2017 tax year benefited from U.S. Tax Reform enacted on December 22, 2017. The related income tax benefit of 129.0% in 2017 primarily reflects adjustments to our deferred tax positions for the lower federal income tax rate, partially offset by our provision for the one-time toll charge. Deferred Income Tax Assets and Liabilities: The tax effects of temporary differences and carryforwards that gave rise to deferred income tax assets and liabilities consisted of the following (in millions): 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 At December 28, 2019 and December 29, 2018 , deferred income tax liabilities excluded amounts classified as held for sale. See Note 4, Acquisitions and Divestitures , for additional information. The decrease in deferred tax liabilities from December 29, 2018 to December 28, 2019 was primarily driven by intangible asset impairment losses recorded in 2019. See Note 9, Goodwill and Intangible Assets , for additional information. At December 28, 2019 , foreign operating loss carryforwards totaled $364 million . Of that amount, $35 million expire between 2020 and 2039; the other $329 million do not expire. We have recorded $104 million of deferred tax assets related to these foreign operating loss carryforwards. Deferred tax assets of $73 million have been recorded for U.S. state and local operating loss carryforwards. These losses expire between 2020 and 2039. Uncertain Tax Positions: At December 28, 2019 , our unrecognized tax benefits for uncertain tax positions were $406 million . If we had recognized all of these benefits, the impact on our effective tax rate would have been $369 million . It is reasonably possible that our unrecognized tax benefits will decrease by as much as $24 million in the next 12 months primarily due to the progression of federal, state, and foreign audits in process. Our unrecognized tax benefits for uncertain tax positions are included in income taxes payable and other non-current liabilities on our consolidated balance sheets. The changes in our unrecognized tax benefits were (in millions): 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 Our unrecognized tax benefits increased during 2019 mainly as a result of a net increase for tax positions related to the current and prior years in the U.S. and certain state and foreign jurisdictions which were partially offset by decreases related to audit settlements with federal, state, and foreign taxing authorities and statute of limitations expirations. Our unrecognized tax benefits decreased during 2018 mainly as a result of audit settlements with federal, state, and foreign taxing authorities and statute of limitations expirations. We include interest and penalties related to uncertain tax positions in our tax provision. Our provision for/(benefit from) income taxes included a $5 million expense in 2018 and a $24 million benefit in 2017 related to interest and penalties. The expense related to interest and penalties in 2019 was insignificant. Accrued interest and penalties were $62 million as of December 28, 2019 and December 29, 2018 . Other Income Tax Matters: In the normal course of business, we are subject to examination by taxing authorities throughout the world, including such major jurisdictions as Australia, Canada, Italy, the Netherlands, the United Kingdom, and the United States. As of December 28, 2019, we have substantially concluded all national income tax matters through 2016 for the Netherlands, through 2015 for the United States, through 2014 for Australia, through 2012 for the United Kingdom, and through 2011 for Canada and Italy. We have substantially concluded all state income tax matters through 2007. |
Employees' Stock Incentive Plan
Employees' Stock Incentive Plans (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Employees' Stock Incentive Plans | Employees’ Stock Incentive Plans We grant equity awards, including stock options, restricted stock units (“RSUs”), and performance share units (“PSUs”), to select employees to provide long-term performance incentives to our employees. Stock Plans We had activity related to equity awards from the following plans in 2019, 2018, and 2017: 2016 Omnibus Incentive Plan: In April 2016, our Board of Directors approved the 2016 Omnibus Incentive Plan (“2016 Omnibus Plan”), which authorized grants of options, stock appreciation rights, RSUs, deferred stock, performance awards, investment rights, other stock-based awards, and cash-based awards. This plan authorizes the issuance of up to 18 million shares of our common stock. Equity awards granted under the 2016 Omnibus Plan prior to 2019 generally have a five-year cliff vest period. Equity awards granted under the 2016 Omnibus Plan in 2019 include three-year and five-year cliff vest periods as well as awards that become exercisable in annual installments over three to four years beginning on the second anniversary of the original grant date. Non-qualified stock options have a maximum exercise term of 10 years . Equity awards granted under the 2016 Omnibus Plan since inception include non-qualified stock options, RSUs, and PSUs. 2013 Omnibus Incentive Plan: Prior to approval of the 2016 Omnibus Plan, we issued non-qualified stock options to select employees under the 2013 Omnibus Incentive Plan (“2013 Omnibus Plan”). As a result of the 2015 Merger, each outstanding Heinz stock option was converted into 0.443332 of a Kraft Heinz stock option. Following this conversion, the 2013 Omnibus Plan authorized the issuance of up to 17,555,947 shares of our common stock. Non-qualified stock options awarded under the 2013 Omnibus Plan have a five-year cliff vest period and a maximum exercise term of 10 years . These non-qualified stock options will continue to vest and become exercisable in accordance with the terms and conditions of the 2013 Omnibus Plan and the relevant award agreements. Kraft 2012 Performance Incentive Plan: Prior to the 2015 Merger, Kraft issued equity-based awards, including stock options and RSUs, under its 2012 Performance Incentive Plan. As a result of the 2015 Merger, each outstanding Kraft stock option was converted into an option to purchase a number of shares of our common stock based upon an option adjustment ratio, and each outstanding Kraft RSU was converted into one Kraft Heinz RSU. These Kraft Heinz equity awards will continue to vest and become exercisable in accordance with the terms and conditions that were applicable immediately prior to the completion of the 2015 Merger. These options generally become exercisable in three annual installments beginning on the first anniversary of the original grant date, and have a maximum exercise term of 10 years . RSUs generally cliff vest on the third anniversary of the original grant date. In accordance with the terms of the 2012 Performance Incentive Plan, vesting generally accelerates for holders of Kraft awards who are terminated without cause within 2 years of the 2015 Merger Date. In addition, prior to the 2015 Merger, Kraft issued performance-based, long-term incentive awards (“Performance Shares”), which vested based on varying performance, market, and service conditions. In connection with the 2015 Merger, all outstanding Performance Shares were converted into cash awards, payable in two installments: (i) a 2015 pro-rata payment based upon the portion of the Performance Share cycle completed prior to the 2015 Merger and (ii) the remaining value of the award to be paid on the earlier of the first anniversary of the closing of the 2015 Merger and a participant's termination without cause. Stock Options We use the Black-Scholes model to estimate the fair value of stock option grants. Our weighted average Black-Scholes fair value assumptions were: 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 The risk-free interest rate represented the constant maturity U.S. Treasury rate in effect at the grant date, with a remaining term equal to the expected life of the options. The expected life is the period over which our employees are expected to hold their options. Due to the lack of historical data, we calculated expected life using the weighted average vesting period and the contractual term of the options. In 2019 and 2018, we estimated volatility using a blended volatility approach of term-matched historical volatility from our daily stock prices and weighted average implied volatility. In 2017, we estimated volatility using a blended approach of implied volatility and peer volatility. We calculated peer volatility as the average of the term-matched, leverage-adjusted historical volatilities of Colgate-Palmolive Co., The Coca-Cola Company, Mondelēz International, Altria Group, Inc., PepsiCo, Inc., and Unilever plc. We estimated the expected dividend yield using the quarterly dividend divided by the three-month average stock price, annualized and continuously compounded. Our stock option activity and related information was: Number of Stock Options Weighted Average Exercise Price Aggregate Intrinsic Value 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 The aggregate intrinsic value of stock options exercised during the period was $10 million in 2019, $67 million in 2018, and $124 million in 2017 . Cash received from options exercised was $17 million in 2019, $56 million in 2018, and $66 million in 2017. The tax benefit realized from stock options exercised was $18 million in 2019, $23 million in 2018, and $44 million in 2017. Our unvested stock options and related information was: Number of Stock Options Weighted Average Grant Date Fair Value 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 Restricted Stock Units RSUs represent a right to receive one share or the value of one share upon the terms and conditions set forth in the plan and the applicable award agreement. We used the stock price on the grant date to estimate the fair value of our RSUs. Certain of our RSUs are not dividend-eligible. We discounted the fair value of these RSUs based on the dividend yield. Dividend yield was estimated using the quarterly dividend divided by the three-month average stock price, annualized and continuously compounded. The grant date fair value of RSUs is amortized to expense over the vesting period. The weighted average grant date fair value per share of our RSUs granted during the year was $25.77 in 2019, $58.59 in 2018, and $91.25 in 2017. Our expected dividend yield was 5.39% in 2019 and 3.31% in 2018. All RSUs granted in 2017 were dividend-eligible. Our RSU activity and related information was: 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 The aggregate fair value of RSUs that vested during the period was $2 million in 2019, $9 million in 2018, and $12 million in 2017. Performance Share Units PSUs represent a right to receive one share or the value of one share upon the terms and conditions set forth in the plan and the applicable award agreement and are subject to achievement or satisfaction of performance or market conditions specified by the Compensation Committee of our Board of Directors. For our PSUs that are tied to performance conditions, we used the stock price on the grant date to estimate the fair value. The PSUs are not dividend-eligible; therefore, we discounted the fair value of the PSUs based on the dividend yield. Dividend yield was estimated using the quarterly dividend divided by the three-month average stock price, annualized and continuously compounded. The grant date fair value of PSUs is amortized to expense on a straight-line basis over the requisite service period for each separately vesting portion of the awards. We adjust the expense based on the likelihood of future achievement of performance metrics. In 2019, in addition to the performance-based PSUs granted, we granted PSUs to our Chief Executive Officer that are tied to market-based conditions. The grant date fair value of these PSUs was determined based on a Monte Carlo simulation model. A discount was applied to the Monte Carlo valuation to reflect the lack of marketability during a mandatory post-vest holding period of three years. The related compensation expense is recognized regardless of whether the market condition is satisfied, provided that the requisite service has been provided. The number of PSUs that ultimately vest is based on achievement of the market-based components. The weighted average grant date fair value per share of our PSUs granted during the year was $25.31 in 2019, $56.31 in 2018, and $79.85 in 2017. Our expected dividend yield was 5.39% in 2019, 3.31% in 2018, and 2.73% in 2017. Our PSU activity and related information was: 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 Total Equity Awards Equity award compensation cost and the related tax benefit was (in millions): 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 Unrecognized compensation cost related to unvested equity awards was $365 million at December 28, 2019 and is expected to be recognized over a weighted average period of three years . |
Postemployment Benefits (Notes)
Postemployment Benefits (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Retirement Benefits [Abstract] | |
Postemployment Benefits | Postemployment Benefits We maintain various retirement plans for the majority of our employees. Current defined benefit pension plans are provided primarily for certain domestic union and foreign employees. Local statutory requirements govern many of these plans. The pension benefits of our unionized workers are in accordance with the applicable collective bargaining agreement covering their employment. Defined contribution plans are provided for certain domestic unionized, non-union hourly, and salaried employees as well as certain employees in foreign locations. We provide health care and other postretirement benefits to certain of our eligible retired employees and their eligible dependents. Certain of our U.S. and Canadian employees may become eligible for such benefits. We may modify plan provisions or terminate plans at our discretion. The postretirement benefits of our unionized workers are in accordance with the applicable collective bargaining agreement covering their employment. We remeasure our postemployment benefit plans at least annually. We capitalize a portion of net pension and postretirement cost/(benefit) into inventory based on our production activities. Beginning January 1, 2018, only the service cost component of net pension and postretirement cost/(benefit) is capitalized into inventory. As part of the adoption of ASU 2017-07 in the first quarter of 2018, we recognized a one-time favorable credit of $42 million within cost of products sold related to amounts that were previously capitalized into inventory. Included in this credit was $28 million related to prior service credits that were previously capitalized to inventory. Pension Plans In 2018, we settled our Canadian salaried and Canadian hourly defined benefit pension plans , which resulted in settlement charges of $162 million for the year ended December 29, 2018. Additionally, the settlement of these plans impacted the projected benefit obligation, accumulated benefit obligation, fair value of plan assets, and service costs associated with our non-U.S. pension plans. Obligations and Funded Status: The projected benefit obligations, fair value of plan assets, and funded status of our pension plans were (in millions): 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 ) The accumulated benefit obligation, which represents benefits earned to the measurement date, was $4.5 billion at December 28, 2019 and $4.1 billion at December 29, 2018 for the U.S. pension plans. The accumulated benefit obligation for the non-U.S. pension plans was $2.1 billion at December 28, 2019 and $1.7 billion at December 29, 2018 . The combined U.S. and non-U.S. pension plans resulted in net pension assets of $988 million at December 28, 2019 and $918 million at December 29, 2018 . We recognized these amounts on our consolidated balance sheets as follows (in millions): 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 For certain of our U.S. and non-U.S. plans that were underfunded based on accumulated benefit obligations in excess of plan assets, the projected benefit obligations, accumulated benefit obligations, and the fair value of plan assets were (in millions): 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 All of our U.S. plans were overfunded based on plan assets in excess of accumulated benefit obligations as of December 28, 2019 and December 29, 2018 . For certain of our U.S. and non-U.S. plans that were underfunded based on projected benefit obligations in excess of plan assets, the projected benefit obligations, accumulated benefit obligations, and the fair value of plan assets were (in millions): 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 All of our U.S. plans were overfunded based on plan assets in excess of projected benefit obligations as of December 28, 2019 and December 29, 2018 . We used the following weighted average assumptions to determine our projected benefit obligations under the pension plans: 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 % Discount rates for our U.S. and non-U.S. plans were developed from a model portfolio of high quality, fixed-income debt instruments with durations that match the expected future cash flows of the plans. Components of Net Pension Cost/(Benefit): Net pension cost/(benefit) consisted of the following (in millions): 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 ) We present all non-service cost components of net pension cost/(benefit) within other expense/(income) on our consolidated statements of income. We used the following weighted average assumptions to determine our net pension costs for the years ended: 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 % Discount rates for our U.S. and non-U.S. plans were developed from a model portfolio of high quality, fixed-income debt instruments with durations that match the expected future cash flows of the plans. We determine our expected rate of return on plan assets from the plan assets' historical long-term investment performance, target asset allocation, and estimates of future long-term returns by asset class. Plan Assets: The underlying basis of the investment strategy of our defined benefit plans is to ensure that pension funds are available to meet the plans’ benefit obligations when they are due. Our investment objectives include: investing plan assets in a high-quality, diversified manner in order to maintain the security of the funds; achieving an optimal return on plan assets within specified risk tolerances; and investing according to local regulations and requirements specific to each country in which a defined benefit plan operates. The investment strategy expects equity investments to yield a higher return over the long term than fixed-income securities, while fixed-income securities are expected to provide certain matching characteristics to the plans’ benefit payment cash flow requirements. Our investment policy specifies the type of investment vehicles appropriate for the applicable plan, asset allocation guidelines, criteria for the selection of investment managers, procedures to monitor overall investment performance as well as investment manager performance. It also provides guidelines enabling the applicable plan fiduciaries to fulfill their responsibilities. Our weighted average asset allocations were: 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 % Our pension investment strategy for U.S. plans is designed to align our pension assets with our projected benefit obligation to reduce volatility by targeting an investment of approximately 85% of our U.S. plan assets in fixed-income securities and approximately 15% in return-seeking assets, primarily equity securities. For pension plans outside the United States, our investment strategy is subject to local regulations and the asset/liability profiles of the plans in each individual country. In aggregate, the long-term asset allocation targets of our non-U.S. plans are broadly characterized as a mix of approximately 78% fixed-income securities and annuity contracts, and approximately 22% in return-seeking assets, primarily equity securities and real estate. The fair value of pension plan assets at December 28, 2019 was determined using the following fair value measurements (in millions): Asset Category Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs 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 (a) Amount includes cash collateral of $226 million associated with our securities lending program, which is reflected as an asset, and a corresponding securities lending payable of $226 million , which is reflected as a liability. The net impact on total plan assets at fair value is zero . The fair value of pension plan assets at December 29, 2018 was determined using the following fair value measurements (in millions): Asset Category Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs 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 (a) Amount includes cash collateral of $269 million associated with our securities lending program, which is reflected as an asset, and a corresponding securities lending payable of $269 million , which is reflected as a liability. The net impact on total plan assets at fair value is zero . The following section describes the valuation methodologies used to measure the fair value of pension plan assets, including an indication of the level in the fair value hierarchy in which each type of asset is generally classified. Corporate Bonds and Other Fixed-Income Securities. These securities consist of publicly traded U.S. and non-U.S. fixed interest obligations (principally corporate bonds). Such investments are valued through consultation and evaluation with brokers in the institutional market using quoted prices and other observable market data. As such, these securities are included in Level 2. A limited number of these securities are in default and included in Level 3. Government Bonds. These securities consist of direct investments in publicly traded U.S. fixed interest obligations (principally debentures). Such investments are valued using quoted prices in active markets. These securities are included in Level 1. Equity Securities. These securities consist of direct investments in the stock of publicly traded companies. Such investments are valued based on the closing price reported in an active market on which the individual securities are traded. As such, the direct investments are classified as Level 1. Cash and Cash Equivalents. This consists of direct cash holdings and institutional short-term investment vehicles. Direct cash holdings are valued based on cost, which approximates fair value and are classified as Level 1. Certain institutional short-term investment vehicles are valued daily and are classified as Level 1. Other cash equivalents that are not traded on an active exchange, such as bank deposits, are classified as Level 2. Real Estate. These holdings consist of real estate investments and are generally classified as Level 3. Certain Insurance Contracts. This category consists of group annuity contracts that have been purchased to cover a portion of the plan members and have been classified as Level 3. Investments Measured at Net Asset Value . This category consists of pooled funds, short-term investments and partnership/corporate feeder interests. • 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. The mutual fund investments are not traded on an exchange, and a majority of these funds are held in a separate account managed by a fixed income manager. The fair values of these investments are based on their net asset values, as reported by the managers 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. The objective of the account is to provide superior return with reasonable risk, where performance is expected to exceed Barclays Long U.S. Credit Index. Investments in this account can be redeemed with a written notice to the investment manager. • 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. The fair values of the corporate feeder are based upon the net asset values of the equity master fund in which it invests. The fair value of these investments measured at net asset value is excluded from the fair value hierarchy. Investments in the corporate feeder can be redeemed quarterly with at least 90 days’ notice. The investment objective of the corporate feeder is to generate long-term returns by investing in large, liquid equity securities with attractive fundamentals. Changes in our Level 3 plan assets for the year ended December 28, 2019 included (in millions): 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 Real estate $ 79 $ — $ 2 $ 2 $ (38 ) $ — $ 45 Corporate bonds and other fixed-income securities — — — — — 3 3 Certain insurance contracts 53 — — 1 (5 ) — 49 Total Level 3 investments $ 132 $ — $ 2 $ 3 $ (43 ) $ 3 $ 97 Changes in our Level 3 plan assets for the year ended December 29, 2018 included (in millions): 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 Net purchases, issuances and settlements of $845 million principally related to insurance contract settlements in Canada in connection with the wind-up of our Canadian salaried and hourly defined benefit pension plans. Employer Contributions: In 2019, we contributed $19 million to our non-U.S. pension plans. We did no t contribute to our U.S. pension plans. We estimate that 2020 pension contributions will be approximately $19 million to our non-U.S. pension plans. We do no t plan to make contributions to our U.S. pension plans in 2020. Our actual contributions and plans may change due to many factors, including changes in tax, employee benefit, or other laws and regulations, tax deductibility, significant differences between expected and actual pension asset performance or interest rates, or other factors. Future Benefit Payments: The estimated future benefit payments from our pension plans at December 28, 2019 were (in millions): 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 Postretirement Plans Obligations and Funded Status: The accumulated benefit obligation, fair value of plan assets, and funded status of our postretirement benefit plans were (in millions): 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 We recognized the net postretirement benefit asset/(liability) on our consolidated balance sheets as follows (in millions): December 28, 2019 December 29, 2018 Other current liabilities $ (15 ) $ (14 ) Accrued postemployment costs (184 ) (236 ) Net postretirement benefit asset/(liability) recognized $ (199 ) $ (250 ) All of our postretirement benefit plans were underfunded based on accumulated postretirement benefit obligations in excess of plan assets. The accumulated benefit obligations and the fair value of plan assets were (in millions): December 28, 2019 December 29, 2018 Accumulated benefit obligation $ 1,313 $ 1,294 Fair value of plan assets 1,114 1,044 We used the following weighted average assumptions to determine our postretirement benefit obligations: 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 % Discount rates for our plans were developed from a model portfolio of high-quality, fixed-income debt instruments with durations that match the expected future cash flows of the plans. Our expected health care cost trend rate is based on historical costs and our expectation for health care cost trend rates going forward. The year that the health care cost trend rate reaches the ultimate trend rate varies by plan and ranges between 2020 and 2030 as of December 28, 2019 . Assumed health care costs trend rates have a significant impact on the amounts reported for the postretirement benefit plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects, increase/(decrease) in cost and obligation, as of December 28, 2019 (in millions): One-Percentage-Point Increase (Decrease) Effect on annual service and interest cost $ 3 $ (2 ) Effect on postretirement benefit obligation 55 (47 ) Components of Net Postretirement Cost/(Benefit): Net postretirement cost/(benefit) consisted of the following (in millions): 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 ) We present all non-service cost components of net postretirement cost/(benefit) within other expense/(income) on our consolidated statements of income. The amortization of prior service credits was primarily driven by plan amendments in 2015 and 2016. We estimate that amortization of prior service credits will be approximately $123 million in 2020, $8 million in 2021, $6 million in 2022, $6 million in 2023, and $2 million in 2024. In 2017, we remeasured certain of our postretirement plans and recognized a curtailment gain of $177 million . The curtailment was triggered by the number of cumulative headcount reductions after the closure of certain U.S. factories during the year. The resulting gain is attributed to accelerating a portion of the previously deferred actuarial gains and prior service credits. The headcount reductions and factory closures were part of our Integration Program. See Note 5, Restructuring Activities , for additional information. We used the following weighted average assumptions to determine our net postretirement benefit plans cost for the years ended: 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 % Discount rates for our plans were developed from a model portfolio of high-quality, fixed-income debt instruments with durations that match the expected future cash flows of the plans. We determine our expected rate of return on plan assets from the plan assets' target asset allocation and estimates of future long-term returns by asset class. Our expected health care cost trend rate is based on historical costs and our expectation for health care cost trend rates going forward. Plan Assets: In December 2017, we made a cash contribution of approximately $1.2 billion to pre-fund a portion of our U.S. postretirement plan benefits following enactment of U.S. Tax Reform on December 22, 2017. The underlying basis of the investment strategy of our U.S. postretirement plans is to ensure that funds are available to meet the plans’ benefit obligations when they are due by investing plan assets in a high-quality, diversified manner in order to maintain the security of the funds. The investment strategy expects equity investments to yield a higher return over the long term than fixed-income securities, while fixed-income securities are expected to provide certain matching characteristics to the plans’ benefit payment cash flow requirements. Our weighted average asset allocations were: December 28, 2019 December 29, 2018 Fixed-income securities 65 % 65 % Equity securities 31 % 27 % Cash and cash equivalents 4 % 8 % Our postretirement benefit plan investment strategy is subject to local regulations and the asset/liability profiles of the plans in each individual country. Our investment strategy is designed to align our postretirement benefit plan assets with our postretirement benefit obligation to reduce volatility. In aggregate, our long-term asset allocation targets are broadly characterized as a mix of approximately 70% in fixed-income securities and approximately 30% in return-seeking assets, primarily equity securities. The fair value of postretirement benefit plan assets at December 28, 2019 was determined using the following fair value measurements (in millions): Asset Category Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs 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 The fair value of postretirement benefit plan assets at December 29, 2018 was determined using the following fair value measurements (in millions): Asset Category Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs 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 The following section describes the valuation methodologies used to measure the fair value of postretirement benefit plan assets, including an indication of the level in the fair value hierarchy in which each type of asset is generally classified. Corporate Bonds and Other Fixed-Income Securities. These securities consist of publicly traded U.S. and non-U.S. fixed interest obligations (principally corporate bonds an tax-exempt municipal bonds). Such investments are valued through consultation and evaluation with brokers in the institutional market using quoted prices and other observable market data. As such, these securities are included in Level 2. Government Bonds. These securities consist of direct investments in publicly traded U.S. fixed interest obligations (principally debentures). Such investments are valued using quoted prices in active markets. These securities are included in Level 1. Equity Securities. These securities consist of direct investments in the stock of publicly traded companies. Such investments are valued based on the closing price reported in an active market on which the individual securities are traded. As such, the direct investments are classified as Level 1. Investments Measured at Net Asset Value . This category consists of pooled funds and short-term investments. • 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. The mutual fund investments are not traded on an exchange. The fair values of the mutual fund investments that are not traded on an exchange are based on their net asset values, as reported by the managers 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. • 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. Employer Contributions: In 2019, we contributed $12 million to our postretirement benefit plans. We estimate that 2020 postretirement benefit plan contributions will be approximately $15 million . Our actual contributions and plans may change due to many factors, including changes in tax, employee benefit, or other laws and regulations, tax deductibility, significant differences between expected and actual postretirement plan asset performance or interest rates, or other factors. Future Benefit Payments: Our estimated future benefit payments for our postretirement plans at December 28, 2019 were (in millions): 2020 $ 125 2021 114 2022 114 2023 107 2024 101 2025-2029 413 Other Plans We sponsor and contribute to employee savings plans that cover eligible salaried, non-union, and union employees. Our contributions and costs are determined by the matching of employee contributions, as defined by the plans. Amounts charged to expense for defined contribution plans totaled $88 million in 2019, $85 million in 2018, and $78 million in 2017. Accumulated Other Comprehensive Income/(Losses) Our accumulated other comprehensive income/(losses) pension and postretirement benefit plans balances, before tax, consisted of the following (in millions): 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 The net postemployment benefits recognized in other comprehensive income/(loss), consisted of the following (in millions): 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) |
Financial Instruments (Notes)
Financial Instruments (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments We maintain a policy of requiring that all significant, non-exchange traded derivative contracts be governed by an International Swaps and Derivatives Association master agreement, and these master agreements and their schedules contain certain obligations regarding the delivery of certain financial information upon demand. Derivative Volume: The notional values of our outstanding derivative instruments were (in millions): 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 The decrease in our derivative volume for cross-currency contracts was primarily driven by the settlement of Canadian dollar and British pound sterling cross-currency swaps in the fourth quarter of 2019. Fair Value of Derivative Instruments: Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair values and the levels within the fair value hierarchy of derivative instruments recorded on the consolidated balance sheets were (in millions): December 28, 2019 Quoted Prices in Active Markets for Identical Assets and Liabilities Significant Other Observable Inputs Total Fair Value Assets Liabilities Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments: Foreign exchange contracts (a) $ — $ — $ 7 $ 20 $ 7 $ 20 Cross-currency contracts (b) — — 200 88 200 88 Derivatives not designated as hedging instruments: Commodity contracts (c) 42 6 — 2 42 8 Foreign exchange contracts (a) — — 6 3 6 3 Total fair value $ 42 $ 6 $ 213 $ 113 $ 255 $ 119 (a) At December 28, 2019 , the fair value of our derivative assets was recorded in other current assets ( $12 million ) and other non-current assets ( $1 million ), and the fair value of our derivative liabilities was recorded in other current liabilities. (b) At December 28, 2019 , the fair value of our derivative assets was recorded in other non-current assets and the fair value of our derivative liabilities was recorded in other non-current liabilities. (c) At December 28, 2019 , the fair value of our derivative assets was recorded in other current assets and the fair value of derivative liabilities was recorded in other current liabilities. December 29, 2018 Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Total Fair Value Assets Liabilities Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments: Foreign exchange contracts (a) $ — $ — $ 51 $ 26 $ 51 $ 26 Cross-currency contracts (b) — — 139 3 139 3 Derivatives not designated as hedging instruments: Commodity contracts (a) 5 27 — 2 5 29 Foreign exchange contracts (a) — — 5 42 5 42 Cross-currency contracts (b) — — 557 119 557 119 Total fair value $ 5 $ 27 $ 752 $ 192 $ 757 $ 219 (a) The fair value of derivative assets was recorded in other current assets and the fair value of derivative liabilities was recorded in other current liabilities. (b) The fair value of derivative assets was recorded in other current assets ( $557 million ) and other non-current assets ( $139 million ), and the fair value of derivative liabilities was recorded within other current liabilities ( $119 million ) and other non-current liabilities ( $3 million ). Our derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. We elect to record the gross assets and liabilities of our derivative financial instruments on the consolidated balance sheets. If the derivative financial instruments had been netted on the consolidated balance sheets, the asset and liability positions each would have been reduced by $108 million at December 28, 2019 and $124 million at December 29, 2018 . At December 28, 2019 , we had collected collateral of $25 million related to commodity derivative margin requirements. This was included in other current liabilities on our consolidated balance sheet at December 28, 2019 . At December 29, 2018 , collateral of $32 million was posted related to commodity derivative margin requirements. This was included in prepaid expenses on our consolidated balance sheet at December 29, 2018 . Level 1 financial assets and liabilities consist of commodity future and options contracts and are valued using quoted prices in active markets for identical assets and liabilities. Level 2 financial assets and liabilities consist of commodity swaps, foreign exchange forwards, options, and swaps, and cross-currency swaps. Commodity swaps are valued using an income approach based on the observable market commodity index prices less the contract rate multiplied by the notional amount. Foreign exchange forwards and swaps are valued using an income approach based on observable market forward rates less the contract rate multiplied by the notional amount. Foreign exchange options are valued using an income approach based on a Black-Scholes-Merton formula. This formula uses present value techniques and reflects the time value and intrinsic value based on observable market rates. Cross-currency swaps are valued based on observable market spot and swap rates. We did not have any Level 3 financial assets or liabilities in any period presented. Our calculation of the fair value of financial instruments takes into consideration the risk of nonperformance, including counterparty credit risk. Net Investment Hedging: At December 28, 2019 , we had the following items designated as net investment hedges: • Non-derivative foreign denominated debt with principal amounts of €2,550 million and £400 million ; • Cross-currency contracts with notional amounts of £1.0 billion ( $1.4 billion ), C$2.1 billion ( $1.6 billion ), and ¥9.6 billion ( $85 million ); and • Foreign exchange contracts denominated in Chinese renminbi with an aggregate notional amount of $162 million . We periodically use non-derivative instruments such as non-U.S. dollar financing transactions or non-U.S. dollar assets or liabilities, including intercompany loans, to hedge the exposure of changes in underlying foreign currency denominated subsidiary net assets, and they are designated as net investment hedges. At December 28, 2019 , we had a euro intercompany loan with aggregate notional amount of $76 million . The component of the gains and losses on our net investment in these designated foreign operations, driven by changes in foreign exchange rates, are economically offset by fair value movements on the effective portion of our cross-currency contracts and foreign exchange contracts and remeasurements of our foreign denominated debt. Interest Rate Hedging: From time to time we have had derivatives designated as interest rate hedges, including interest rate swaps. We no longer have any outstanding interest rate swaps. We continue to amortize the realized hedge losses that were deferred into accumulated other comprehensive income/(losses) into interest expense through the original maturity of the related long-term debt instruments. Cash Flow Hedge Coverage: At December 28, 2019 , we had entered into foreign exchange contracts designated as cash flow hedges for periods not exceeding the next 25 months and into cross-currency contracts designated as cash flow hedges for periods not exceeding the next four years . Deferred Hedging Gains and Losses on Cash Flow Hedges: Based on our valuation at December 28, 2019 and assuming market rates remain constant through contract maturities, we expect transfers to net income/(loss) of unrealized gains on cross-currency cash flow hedges and unrealized losses on interest rate cash flow hedges during the next 12 months to be insignificant. Additionally, we expect transfers to net income/(loss) of unrealized losses on foreign currency cash flow hedges during the next 12 months to be approximately $12 million . Concentration of Credit Risk: Counterparties to our foreign exchange derivatives consist of major international financial institutions. We continually monitor our positions and the credit ratings of the counterparties involved and, by policy, limit the amount of our credit exposure to any one party. While we may be exposed to potential losses due to the credit risk of non-performance by these counterparties, losses are not anticipated. We closely monitor the credit risk associated with our counterparties and customers and to date have not experienced material losses. Economic Hedging: We enter into certain derivative contracts not designated as hedging instruments in accordance with our risk management strategy which have an economic impact of largely mitigating commodity price risk and foreign currency exposures. Gains and losses are recorded in net income/(loss) as a component of cost of products sold for our commodity contracts and other expense/(income) for our cross currency and foreign exchange contracts. Divestiture Hedging: We entered into foreign exchange derivative contracts to economically hedge the foreign currency exposure related to the Heinz India Transaction. In 2018, the related derivative losses were $20 million , including $17 million recorded within other expense/(income) and $3 million recorded within interest expense. These derivative contracts settled in the first quarter of 2019 resulting in a gain of $5 million , including a gain of $6 million recorded within other expense/(income) and a loss of $1 million recorded within interest expense. These losses are classified as other losses/(gains) related to acquisitions and divestitures. Additionally, we entered into foreign exchange contracts which were designated as net investment hedges related to our investment in Heinz India. Related to these net investment hedges, we had unrealized hedge losses of $10 million as of December 29, 2018 , which were recognized in accumulated other comprehensive income/(losses). In 2019, these net investment hedges settled at a loss of $6 million . This loss was subsequently reclassified from accumulated other comprehensive income/(losses) to other expense/(income) in the consolidated statement of income in the first quarter of 2019 when the Heinz India Transaction closed. These losses are classified as losses/(gains) on the sale of a business. See Note 4, Acquisitions and Divestitures , for additional information related to the Heinz India Transaction. Derivative Impact on the Statements of Comprehensive Income: The following table presents the pre-tax amounts of derivative gains/(losses) deferred into accumulated other comprehensive income/(losses) and the income statement line item that will be affected when reclassified to net income/(loss) (in millions): 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 ) Derivative Impact on the Statements of Income: The following tables present the pre-tax amounts of derivative gains/(losses) reclassified from accumulated other comprehensive income/(losses) to net income/(loss) and the affected income statement line items (in millions): 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 ) Non-Derivative Impact on Statements of Comprehensive Income: Related to our non-derivative, foreign denominated debt instruments designated as net investment hedges, we recognized pre-tax gains of $52 million in 2019 and $174 million in 2018 and pre-tax losses of $425 million in 2017. These amounts were recognized in other comprehensive income/(loss). |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income/(Losses) (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income/(Losses) | Accumulated Other Comprehensive Income/(Losses) The components of, and changes in, accumulated other comprehensive income/(losses), net of tax, were as follows (in millions): Foreign Currency Translation Adjustments Net Postemployment Benefit Plan Adjustments Net Cash Flow Hedge Adjustments Total Balance as of December 31, 2016 $ (2,413 ) $ 772 $ 12 $ (1,629 ) Foreign currency translation adjustments 1,179 — — 1,179 Net deferred gains/(losses) on net investment hedges (353 ) — — (353 ) Net deferred gains/(losses) on cash flow hedges — — (113 ) (113 ) Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) — — 85 85 Net postemployment benefit gains/(losses) arising during the period — 86 — 86 Net postemployment benefit losses/(gains) reclassified to net income/(loss) — (309 ) — (309 ) Total other comprehensive income/(loss) 826 (223 ) (28 ) 575 Balance as of December 30, 2017 (1,587 ) 549 (16 ) (1,054 ) Foreign currency translation adjustments (1,173 ) — — (1,173 ) Net deferred gains/(losses) on net investment hedges 284 — — 284 Amounts excluded from the effectiveness assessment of net investment hedges 7 — — 7 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (7 ) — — (7 ) Net deferred gains/(losses) on cash flow hedges — — 99 99 Amounts excluded from the effectiveness assessment of cash flow hedges — — 2 2 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) — — (44 ) (44 ) Net postemployment benefit gains/(losses) arising during the period — 61 — 61 Net postemployment benefit losses/(gains) reclassified to net income/(loss) — (118 ) — (118 ) Total other comprehensive income/(loss) (889 ) (57 ) 57 (889 ) Balance as of December 29, 2018 (2,476 ) 492 41 (1,943 ) Foreign currency translation adjustments 239 — — 239 Net deferred gains/(losses) on net investment hedges 1 — — 1 Amounts excluded from the effectiveness assessment of net investment hedges 22 — — 22 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (16 ) — — (16 ) Net deferred gains/(losses) on cash flow hedges — — (10 ) (10 ) Amounts excluded from the effectiveness assessment of cash flow hedges — — 29 29 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) — — (41 ) (41 ) Net postemployment benefit gains/(losses) arising during the period — (69 ) — (69 ) Net postemployment benefit losses/(gains) reclassified to net income/(loss) — (234 ) — (234 ) Cumulative effect of accounting standards adopted in the period (a) — 114 22 136 Total other comprehensive income/(loss) 246 (189 ) — 57 Balance at December 28, 2019 $ (2,230 ) $ 303 $ 41 $ (1,886 ) (a) In the first quarter of 2019, we adopted ASU 2018-02 related to reclassifying tax effects stranded in accumulated other comprehensive income/(losses). See Note 3, New Accounting Standards , for additional information. Reclassification of net postemployment benefit losses/(gains) included amounts reclassified to net income and amounts reclassified into inventory (consistent with our capitalization policy). The gross amount and related tax benefit/(expense) recorded in, and associated with, each component of other comprehensive income/(loss) were as follows (in millions): 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 ) The amounts reclassified from accumulated other comprehensive income/(losses) were as follows (in millions): 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 ) (a) Represents the reclassification of hedge losses/(gains) resulting from the complete or substantially complete liquidation of our investment in the underlying foreign operations. (b) Represents recognition of the excluded component in net income/(loss). (c) Includes amortization of the excluded component and the effective portion of the related hedges. (d) Represents amortization of realized hedge losses that were deferred into accumulated other comprehensive income/(losses) through the maturity of the related long-term debt instruments. (e) These components are included in the computation of net periodic postemployment benefit costs. See Note 12, Postemployment Benefits , for additional information. In this note we have excluded activity and balances related to noncontrolling interest due to its insignificance. This activity was primarily related to foreign currency translation adjustments. |
Venezuela - Foreign Currency an
Venezuela - Foreign Currency and Inflation (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Foreign Currency [Abstract] | |
Venezuela - Foreign Currency and Inflation | Venezuela - Foreign Currency and Inflation We have a subsidiary in Venezuela that manufactures and sells a variety of products, primarily in the condiments and sauces and infant and nutrition categories. We apply highly inflationary accounting to the results of our Venezuelan subsidiary and include these results in our consolidated financial statements. Under highly inflationary accounting, the functional currency of our Venezuelan subsidiary is the U.S. dollar (the reporting currency of Kraft Heinz), although the majority of its transactions are in Venezuelan bolivars. As a result, we must revalue the results of our Venezuelan subsidiary to U.S. dollars. As of December 28, 2019 , companies and individuals are allowed to use an auction-based system at private and public banks to obtain foreign currency. This is the only foreign currency exchange mechanism legally available to us for converting Venezuelan bolivars to U.S. dollars. Published daily by the Banco Central de Venezuela, the exchange rate (“BCV Rate”) is calculated as the weighted average rate of participating banking institutions with active exchange operations. We believe the BCV Rate is the most appropriate legally available rate at which to translate the results of our Venezuelan subsidiary. Therefore, we revalue the income statement using the weighted average BCV Rates, and we revalue the bolivar-denominated monetary assets and liabilities at the period-end BCV Rate. The resulting revaluation gains and losses are recorded in current net income/(loss), rather than accumulated other comprehensive income/(losses). These gains and losses are classified within other expense/(income) as nonmonetary currency devaluation on our consolidated statements of income. The BCV Rate at December 28, 2019 was BsS 45,874.81 per U.S. dollar compared to BsS 638.18 at December 29, 2018 . The weighted average rate was BsS 13,955.68 for 2019, BsS 25.06 for 2018, and BsS 0.02 for 2017. Remeasurements of the bolivar-denominated monetary assets and liabilities and operating results of our Venezuelan subsidiary at BCV Rates resulted in nonmonetary currency devaluation losses of $10 million in 2019, $146 million in 2018, and $36 million in 2017. These losses were recorded in other expense/(income) in the consolidated statements of income. Our Venezuelan subsidiary obtains U.S. dollars through private and public bank auctions, royalty payments, and exports. These U.S. dollars are primarily used for purchases of tomato paste and spare parts for manufacturing, as well as a limited amount of other operating costs. As of December 28, 2019 , our Venezuelan subsidiary had sufficient U.S. dollars to fund these operational needs in the foreseeable future. However, further deterioration of the economic environment or regulation changes could jeopardize our export business. In addition to the bank auctions described above, there is an unofficial market for obtaining U.S. dollars with Venezuelan bolivars. The exact exchange rate is widely debated but is generally accepted to be substantially higher than the latest published BCV Rate. We have not transacted at any unofficial market rates and have no plans to transact at unofficial market rates in the foreseeable future. Our results of operations in Venezuela reflect a controlled subsidiary. However, the continuing economic uncertainty, strict labor laws, and evolving government controls over imports, prices, currency exchange, and payments present a challenging operating environment. Increased restrictions imposed by the Venezuelan government along with further deterioration of the economic environment could impact our ability to control our Venezuelan operations and could lead us to deconsolidate our Venezuelan subsidiary in the future. |
Financing Arrangements (Notes)
Financing Arrangements (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Transfers and Servicing [Abstract] | |
Financing Arrangements | Financing Arrangements We enter into various structured payable and product financing arrangements to facilitate supply from our vendors. Balance sheet classification is based on the nature of the arrangements. For certain arrangements, we have concluded that our obligations to our suppliers, including amounts due and scheduled payment terms, are impacted by their participation in the program and therefore we classify amounts outstanding within other current liabilities on our consolidated balance sheets. We had approximately $253 million at December 28, 2019 and approximately $267 million at December 29, 2018 on our consolidated balance sheets related to these arrangements. We have utilized accounts receivable securitization and factoring programs (the “Programs”) globally for our working capital needs and to provide efficient liquidity. During 2018, we had Programs in place in various countries across the globe. In the second quarter of 2018, we unwound our U.S. securitization program, which represented the majority of our Programs, using proceeds from the issuance of long-term debt in June 2018. As of December 29, 2018 , we had unwound all of our Programs. As a result, there were no related amounts on our consolidated balance sheets at December 28, 2019 or December 29, 2018 . We operated the Programs such that we generally utilized the majority of the available aggregate cash consideration limits. We accounted for transfers of receivables pursuant to the Programs as a sale and removed them from our consolidated balance sheets. Under the Programs, we generally received cash consideration up to a certain limit and recorded a non-cash exchange for sold receivables for the remainder of the purchase price. We maintained a “beneficial interest,” or a right to collect cash, in the sold receivables. Cash receipts from the payments on sold receivables (which are cash receipts on the underlying trade receivables that have already been securitized in these Programs) were classified as investing activities and presented as cash receipts on sold receivables on our consolidated statements of cash flows. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings We are involved in legal proceedings, claims, and governmental inquiries, inspections, or investigations (“Legal Matters”) arising in the ordinary course of our business. While we cannot predict with certainty the results of Legal Matters in which we are currently involved or may in the future be involved, we do not expect that the ultimate costs to resolve the Legal Matters that are currently pending will have a material adverse effect on our financial condition, results of operations, or cash flows. Class Actions and Stockholder Derivative Actions: We and certain of our current and former officers and directors are currently defendants in three securities class action lawsuits filed in February, March, and April 2019 . The first filed action, Hedick v. The Kraft Heinz Company , was filed on February 24, 2019 against the Company and three of its officers (the “Hedick Action”). The second filed action, Iron Workers District Council (Philadelphia and Vicinity) Retirement and Pension Plan v. The Kraft Heinz Company , was filed on March 15, 2019 against, among others, the Company and six of its current and former officers (the “Iron Workers Action”). The third filed action, Timber Hill LLC v. The Kraft Heinz Company , was filed on April 25, 2019 against, among others, the Company and seven of its current and former officers and directors (the “Timber Hill Action”). All of these securities class action lawsuits were filed in the United States District Court for the Northern District of Illinois. Another securities class action lawsuit, Walling v. Kraft Heinz Company , was filed on February 26, 2019 in the United States District Court for the Western District of Pennsylvania against, among others, the Company and six of its current and former officers (the “Walling Action”). Plaintiff in the Walling Action filed a notice of voluntary dismissal of his complaint, without prejudice, on April 26, 2019. On October 8, 2019, the court entered an order consolidating these lawsuits into one proceeding and appointing lead plaintiffs and lead plaintiffs’ counsel. Lead plaintiffs, Union Asset Management Holding AG and Sjunde AP-Fonden, filed a consolidated amended complaint on January 6, 2020, adding 3G Capital, Inc. and several of its subsidiaries and affiliates (the “3G Entities”) as party defendants. The consolidated amended complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 promulgated thereunder, based on allegedly materially false or misleading statements and omissions in public statements, press releases, investor presentations, earnings calls, and SEC filings regarding the Company’s business, financial results, and internal controls, and further alleges the 3G Entities engaged in insider trading and misappropriated the Company’s material, non-public information. The plaintiffs seek damages in an unspecified amount, attorneys’ fees and other relief. In addition, our Employee Benefits Administration Board and certain of our current and former officers and employees are currently defendants in one class action lawsuit, Osborne v. Employee Benefits Administration Board of Kraft Heinz , which was filed on March 19, 2019 in the United States District Court for the Western District of Pennsylvania. Plaintiffs in the lawsuit purport to represent a class of current and former employees who were participants in and beneficiaries of various retirement plans which were co-invested in a commingled investment fund known as the Kraft Foods Savings Plan Master Trust (the “Master Trust”) during the period of May 4, 2017 through February 21, 2019. An amended complaint was filed on June 28, 2019. The amended complaint alleges violations of Section 502 of the Employee Retirement Income Security Act (“ERISA”) based on alleged breaches of obligations as fiduciaries subject to ERISA by allowing the Master Trust to continue investing in our common stock, and alleges additional breaches of fiduciary duties by current and former officers for their purported failure to monitor Master Trust fiduciaries. The plaintiffs seek damages in an unspecified amount, attorneys’ fees, and other relief. Certain of our current and former officers and directors, among others, were also named as defendants in three stockholder derivative actions pending in the United States District Court for the Western District of Pennsylvania: Vladimir Gusinsky Revocable Trust v. Hees filed on May 8, 2019, Silverman v. Behring filed on May 15, 2019, and Green v. Behring filed on May 23, 2019, with the Company named as a nominal defendant. On June 14, 2019, plaintiffs in two other stockholder derivative actions, DeFabiis v. Hees and Kailas v. Hees , which were filed on April 16, 2019 and May 13, 2019, respectively, in the United States District Court for the Western District of Pennsylvania, filed notices of voluntary dismissal of their complaints, without prejudice. The three remaining lawsuits were consolidated, styled as In re Kraft Heinz Shareholder Derivative Litigation , and a consolidated amended complaint was filed on July 31, 2019. The consolidated amended complaint asserts claims under the common law and statutory law of Delaware for alleged breaches of fiduciary duties, unjust enrichment, and contribution for alleged violations of Sections 10(b) and 21D of the Exchange Act and Rule 10b-5 promulgated thereunder, based on allegedly materially false or misleading statements and omissions in public statements and SEC filings, and for implementing cost cutting measures that allegedly damaged the company. The plaintiffs seek damages in an unspecific amount, attorneys’ fees, and other relief. The two plaintiffs who voluntarily dismissed their derivative lawsuits against certain of the Company’s current and former officers and directors subsequently filed new derivative actions in the Delaware Court of Chancery against the 3G Entities, with the Company named as a nominal defendant. The first action, DeFabiis v 3G Capital, Inc. , was filed on June 14, 2019, and the second action, Kailas v. 3G Capital, Inc. , was filed on October 9, 2019. The complaints allege that the defendant 3G Entities were controlling shareholders who owed fiduciary duties to the Company, and that they breached those duties by allegedly engaging in insider trading and misappropriating the Company’s material, non-public information. The complaints seek relief against the 3G Entities in the form of disgorgement of all profits obtained from alleged insider trading plus an award of attorneys’ fees and costs. Six additional derivative lawsuits, Mary Nell Legg Family Trust v. 3G Capital Inc., General Retirement System of the City of Detroit v. Abel , Gilbert v. Behring, Erste Asset Management GMBH v. 3G Capital, Inc. , Hill v. Abel , and Police & Fire Retirement System of the City of Detroit v. Hees , were filed on October 29, 2019, December 11, 2019, January 14, 2020, January 21, 2020, January 31, 2020, and February 7, 2020, respectively, in the Delaware Court of Chancery against certain of the Company’s current and former officers and directors, in addition to the 3G Entities, with the Company named as a nominal defendant. The complaints allege that the defendant 3G Entities were controlling shareholders who owed fiduciary duties to the Company, and that they breached those duties by allegedly engaging in insider trading and misappropriating the Company’s material, non-public information. The complaints allege the remaining defendants breached their fiduciary duties to the Company by purportedly making materially misleading statements and omissions regarding the Company’s financial performance and the impairment of its goodwill and intangible assets, and by purportedly approving or allowing the 3G Entities’ alleged insider trading. The complaints seek relief against the defendants in the form of damages, disgorgement of all profits obtained from the alleged insider trading, and an award of attorneys’ fees and costs. We intend to vigorously defend against these lawsuits; however, we cannot reasonably estimate the potential range of loss, if any, due to the early stage of these proceedings. United States Government Investigations: As previously disclosed on February 21, 2019, we received a subpoena in October 2018 from the SEC related to our procurement area, specifically the accounting policies, procedures, and internal controls related to our procurement function, including, but not limited to, agreements, side agreements, and changes or modifications to agreements with our suppliers. Following the receipt of this subpoena, we, together with external counsel and forensic accountants, and subsequently, under the oversight of the Audit Committee, conducted an internal investigation into our procurement area and related matters. The SEC has issued additional subpoenas seeking information related to our financial reporting, internal controls, disclosures, our assessment of goodwill and intangible asset impairments, our communications with certain shareholders, and other procurement-related information and materials in connection with its investigation. The United States Attorney’s Office for the Northern District of Illinois (“USAO”) is also reviewing this matter . We cannot predict the eventual scope, duration or outcome of any potential SEC legal action or other action or whether it could have a material impact on our financial condition, results of operations, or cash flows. We have been responsive to the ongoing subpoenas and other document requests and will continue to cooperate fully with any governmental or regulatory inquiry or investigation. Other Commitments and Contingencies Purchase Obligations: We have purchase obligations for materials, supplies, property, plant and equipment, and co-packing, storage, and distribution services based on projected needs to be utilized in the normal course of business. Other purchase obligations include commitments for marketing, advertising, capital expenditures, information technology, and professional services. As of December 28, 2019 , our take-or-pay purchase obligations were as follows (in millions): 2020 $ 1,324 2021 590 2022 448 2023 306 2024 187 Thereafter 89 Total $ 2,944 Redeemable Noncontrolling Interest: We have a joint venture with a minority partner to manufacture, package, market, and distribute food products. We control operations and include this business in our consolidated results. Our minority partner has put options that, if it chooses to exercise, would require us to purchase portions of its equity interest at a future date. These put options will become exercisable beginning in 2025 (on the eighth anniversary of the product launch date) at a price to be determined at that time based upon an independent third party valuation. The minority partner’s put options are reflected on our consolidated balance sheets as a redeemable noncontrolling interest. We accrete the redeemable noncontrolling interest to its estimated redemption value over the term of the put options. At December 28, 2019 , we estimate the redemption value to be insignificant. |
Debt (Notes)
Debt (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Borrowing Arrangements: On July 6, 2015, together with Kraft Heinz Foods Company (“KHFC”), our 100% owned operating subsidiary, we entered into a credit agreement (as amended, the “Credit Agreement”), which provides for a $4.0 billion senior unsecured revolving credit facility (the “Senior Credit Facility”). In June 2018, we entered into an agreement that became effective on July 6, 2018 to extend the maturity date of our Senior Credit Facility from July 6, 2021 to July 6, 2023 and to establish a $400 million euro equivalent swing line facility, which is available under the $4.0 billion revolving credit facility limit for short-term loans denominated in euros on a same-day basis. No amounts were drawn on our Senior Credit Facility at December 28, 2019 , at December 29, 2018 , or during the years ended December 28, 2019 , December 29, 2018 , and December 30, 2017 . The Senior Credit Facility includes a $1.0 billion sub-limit for borrowings in alternative currencies (i.e., euro, British pound sterling, Canadian dollars, or other lawful currencies readily available and freely transferable and convertible into U.S. dollars), as well as a letter of credit sub-facility of up to $300 million . Subject to certain conditions, we may increase the amount of revolving commitments and/or add additional tranches of term loans in a combined aggregate amount of up to $1.0 billion . Any committed borrowings under the Senior Credit Facility bear interest at a variable annual rate based on LIBOR/EURIBOR/CDOR loans or an alternate base rate/Canadian prime rate, in each case subject to an applicable margin based upon the long-term senior unsecured, non-credit enhanced debt rating assigned to us. The borrowings under the Senior Credit Facility have interest rates based on, at our election, base rate, LIBOR, EURIBOR, CDOR, or Canadian prime rate plus a spread ranging from 87.5 to 175 basis points for LIBOR, EURIBOR, and CDOR loans, and 0 to 75 basis points for base rate or Canadian prime rate loans. The Senior Credit Facility contains representations, warranties, and covenants that are typical for these types of facilities and could upon the occurrence of certain events of default restrict our ability to access our Senior Credit Facility. Our Senior Credit Facility requires us to maintain a minimum shareholders’ equity (excluding accumulated other comprehensive income/(losses)) of at least $35 billion . We were in compliance with this covenant as of December 28, 2019 . The obligations under the Credit Agreement are guaranteed by KHFC in the case of indebtedness and other liabilities of any subsidiary borrower and by Kraft Heinz in the case of indebtedness and other liabilities of any subsidiary borrower and KHFC. In August 2017, we repaid $600 million aggregate principal amount of our previously outstanding senior unsecured loan facility (the “Term Loan Facility”). Accordingly, there were no amounts outstanding on the Term Loan Facility at December 28, 2019 or December 29, 2018 . We obtain funding through our U.S. and European commercial paper programs. We had no commercial paper outstanding at December 28, 2019 or at December 29, 2018 . The maximum amount of commercial paper outstanding during the year ended December 28, 2019 was $200 million . Long-Term Debt: The following table summarizes our long-term debt obligations. Priority (a) Maturity Dates Interest Rates (b) Carrying Values December 28, 2019 December 29, 2018 (in millions) U.S. dollar notes: 2025 Notes (c) Senior Secured Notes February 15, 2025 4.875% $ 971 $ 1,193 Other U.S. dollar notes (d)(e) Senior Notes 2020-2049 2.471% - 7.125% 24,127 25,551 Euro notes (d) Senior Notes 2023-2028 1.500% - 2.250% 2,834 2,899 Canadian dollar notes (f) Senior Notes July 6, 2020 3.020% 382 586 British pound sterling notes: 2030 Notes (g) Senior Secured Notes February 18, 2030 6.250% 170 165 Other British pound sterling notes (d) Senior Notes July 1, 2027 4.125% 519 504 Other long-term debt Various 2020-2035 0.500% - 5.500% 48 50 Finance lease obligations 187 199 Total long-term debt 29,238 31,147 Current portion of long-term debt 1,022 377 Long-term debt, excluding current portion $ 28,216 $ 30,770 (a) Priority of debt indicates the order which debt would be paid if all debt obligations were due on the same day. Senior secured debt takes priority over unsecured debt. Senior debt has greater seniority than subordinated debt. (b) Floating interest rates are stated as of December 28, 2019 . (c) The 4.875% Second Lien Senior Secured Notes due February 15, 2025 (the “2025 Notes”) are senior in right of payment of existing and future unsecured and subordinated indebtedness. Kraft Heinz fully and unconditionally guarantees these notes. (d) Kraft Heinz fully and unconditionally guarantees these notes, which were issued by KHFC. (e) Includes current year issuances (the “2019 Notes”) described below. (f) Kraft Heinz fully and unconditionally guarantees these notes, which were issued by Kraft Heinz Canada ULC (formerly Kraft Canada Inc.). (g) The 6.250% Pound Sterling Senior Secured Notes due February 18, 2030 (the “2030 Notes”) were issued by H.J. Heinz Finance UK Plc. Kraft Heinz and KHFC fully and unconditionally guarantee the 2030 Notes. This guarantee is secured and senior in right of payment of existing and future unsecured and subordinated indebtedness. Kraft Heinz became guarantor of the 2030 Notes in connection with the 2015 Merger. The 2030 Notes were previously only guaranteed by KHFC. Our long-term debt contains customary representations, covenants, and events of default. We were in compliance with all such covenants at December 28, 2019 . At December 29, 2018 , our long-term debt excluded amounts classified as held for sale. See Note 4, Acquisitions and Divestitures , for additional information. At December 28, 2019 , aggregate principal maturities of our long-term debt excluding finance leases were (in millions): 2020 $ 995 2021 990 2022 2,073 2023 1,678 2024 617 Thereafter 22,460 Tender Offers: On September 3, 2019, KHFC commenced an offer to purchase for cash any and all of its outstanding 5.375% senior notes due February 2020 (the “First Tender Offer”). The First Tender Offer expired on September 9, 2019 with a settlement date of September 10, 2019. Additionally, on September 11, 2019, KHFC commenced an offer to purchase for cash up to the maximum combined aggregate purchase price of $2.5 billion , excluding accrued and unpaid interest, of its outstanding 3.500% senior notes due June 2022, 3.500% senior notes due July 2022, 4.000% senior notes due June 2023, and 4.875% second lien senior secured notes due February 2025 (the “Second Tender Offer”) (collectively with the First Tender Offer, the “Tender Offers”). The Second Tender Offer settled on September 26, 2019. The aggregate principal amounts of senior notes and second lien senior secured notes before and after the Tender Offers and the amounts validly tendered pursuant to the Tender Offers were (in millions): 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 In connection with the Tender Offers, we recognized a loss on extinguishment of debt of $88 million . This loss primarily reflects the payment of early tender premiums and fees associated with the Tender Offers as well as the write-off of unamortized debt issuance costs, premiums, and discounts. We recognized this loss on extinguishment of debt within interest expense on the consolidated statement of income. The cash payments related to the debt extinguishment are classified as cash outflows from financing activities on the consolidated statement of cash flows. In 2019, debt prepayment and extinguishment costs per the consolidated statement of cash flows related to the Tender Offers were $91 million , which reflect the $88 million loss on extinguishment of debt adjusted for the non-cash write-off of unamortized premiums of $10 million , unamortized debt issuance costs of $5 million , and unamortized discounts of $2 million . Debt Redemptions: Concurrently with the commencement of the First Tender Offer, we issued a notice of redemption by Kraft Heinz Canada ULC, our 100% owned subsidiary, of all of Kraft Heinz Canada ULC’s outstanding 2.700% Canadian dollar senior notes due July 2020, of which 300 million Canadian dollar aggregate principal amount was outstanding, and a notice of partial redemption by KHFC of $800 million of KHFC’s 2.800% senior notes due July 2020, of which $1.5 billion aggregate principal amount was outstanding (the “First Debt Redemptions”). The effective date of the First Debt Redemptions was October 3, 2019. Concurrently with the commencement of the Second Tender Offer, we issued a second notice of partial redemption providing for the redemption of $500 million aggregate principal amount of KHFC’s remaining 2.800% senior notes due July 2020 (the “Second Debt Redemption”) (collectively with the First Debt Redemptions, the “2019 Debt Redemptions”). The effective date of the Second Debt Redemption was October 11, 2019. The aggregate principal amounts of senior notes before and after the 2019 Debt Redemptions were (in millions): Aggregate Principal Amount Outstanding Before Redemptions Amount Redeemed Aggregate Principal Amount Outstanding After Redemptions 2.700% Canadian dollar senior notes due July 2020 C$ 300 C$ 300 C$ — 2.800% senior notes due July 2020 $ 1,500 $ 1,300 $ 200 In connection with the 2019 Debt Redemptions we recognized a loss on extinguishment of debt of $10 million . This loss primarily reflects the payment of premiums and fees associated with the 2019 Debt Redemptions as well as the write-off of unamortized debt issuance costs. We recognized this loss on extinguishment of debt within interest expense on the consolidated statement of income. The cash payments related to the debt extinguishment are classified as cash outflows from financing activities on the consolidated statement of cash flows. In 2019, debt prepayment and extinguishment costs per the consolidated statement of cash flows related to the 2019 Debt Redemptions were $8 million , which reflect the $10 million loss on extinguishment of debt adjusted for the non-cash write-off of unamortized debt issuance costs of $2 million . Debt Issuances: In September 2019, KHFC issued $1.0 billion aggregate principal amount of 3.750% senior notes due April 2030, $500 million aggregate principal amount of 4.625% senior notes due October 2039, and $1.5 billion aggregate principal amount of 4.875% senior notes due October 2049 (collectively, the “2019 Notes”). The 2019 Notes are fully and unconditionally guaranteed by Kraft Heinz as to payment of principal, premium, and interest on a senior unsecured basis. We used the proceeds from the 2019 Notes to fund the Second Tender Offer and to pay fees and expenses in connection therewith and to fund the Second Debt Redemption. A tabular summary of the 2019 Notes is included below. 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 In June 2018, KHFC issued $300 million aggregate principal amount of 3.375% senior notes due June 2021, $1.6 billion aggregate principal amount of 4.000% senior notes due June 2023, and $1.1 billion aggregate principal amount of 4.625% senior notes due January 2029 (collectively, the “2018 Notes”). The 2018 Notes are fully and unconditionally guaranteed by Kraft Heinz as to payment of principal, premium, and interest on a senior unsecured basis. We used approximately $500 million of the proceeds from the 2018 Notes in connection with the wind-down of our U.S. securitization program in the second quarter of 2018. We also used proceeds from the 2018 Notes to refinance a portion of our commercial paper borrowings in the second quarter of 2018, to repay certain notes that matured in July and August 2018, and for other general corporate purposes. In August 2017, KHFC issued $350 million aggregate principal amount of floating rate senior notes due 2019, $650 million aggregate principal amount of floating rate senior notes due 2021, and $500 million aggregate principal amount of floating rate senior notes due 2022 (collectively, the “2017 Notes”). The 2017 Notes are fully and unconditionally guaranteed by Kraft Heinz as to payment of principal, premium, and interest on a senior unsecured basis. We used the net proceeds from the 2017 Notes primarily to repay all amounts outstanding under our $600 million Term Loan Facility together with accrued interest thereon, to refinance a portion of our commercial paper programs, and for other general corporate purposes. Debt Issuance Costs: Debt issuance costs are reflected as a direct deduction of our long-term debt balance on the consolidated balance sheets. We incurred debt issuance costs of $25 million in 2019 and $15 million in 2018. Debt issuance costs in 2017 were insignificant. Unamortized debt issuance costs were $119 million at December 28, 2019 and $115 million at December 29, 2018 . Amortization of debt issuance costs was $15 million in 2019, $16 million in 2018, and $16 million in 2017. Debt Premium: Unamortized debt premiums are presented on the consolidated balance sheets as a direct addition to the carrying amount of debt. Unamortized debt premium, net, was $358 million at December 28, 2019 and $430 million at December 29, 2018 . Amortization of our debt premium, net, was $34 million in 2019, $65 million in 2018, and $81 million in 2017. Debt Repayments: In August 2019, we repaid $350 million aggregate principal amount of senior notes that matured in the period. In July and August 2018, we repaid $2.7 billion aggregate principal amount of senior notes that matured in the period. We funded these long-term debt repayments primarily with proceeds from the 2018 Notes issued in June 2018. Additionally, in June 2017, we repaid $2.0 billion aggregate principal amount of senior notes that matured in the period. We funded these long-term debt repayments primarily with cash on hand and our commercial paper programs. Fair Value of Debt: At December 28, 2019 , the aggregate fair value of our total debt was $31.1 billion as compared with a carrying value of $29.2 billion . At December 29, 2018 , the aggregate fair value of our total debt was $30.1 billion as compared with a carrying value of $31.2 billion . Our short-term debt and commercial paper had carrying values that approximated their fair values at December 28, 2019 and December 29, 2018 . We determined the fair value of our long-term debt using Level 2 inputs. Fair values are generally estimated based on quoted market prices for identical or similar instruments. Subsequent Event: We repaid approximately $405 million aggregate principal amount of senior notes on February 10, 2020. |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Leases | Leases We have operating and finance leases, primarily for warehouse, production, and office facilities and equipment. Our lease contracts have remaining contractual lease terms of up to 14 years , some of which include options to extend the term by up to 10 years . We include renewal options that are reasonably certain to be exercised as part of the lease term. Additionally, some lease contracts include termination options. We do not expect to exercise the majority of our termination options and generally exclude such options when determining the term of our leases. See Note 2, Significant Accounting Policies , for our lease accounting policy. The components of our lease costs were (in millions): 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 Our variable lease costs primarily consist of inventory related costs, such as materials, labor, and overhead components in our manufacturing and distribution arrangements that also contain a fixed component related to an embedded lease. These variable lease costs are determined based on usage or output or may vary for other reasons such as changes in material prices, taxes, or insurance. Certain of our variable lease costs are based on fluctuating indices or rates. These leases are included in our ROU assets and lease liabilities based on the index or rate at the lease commencement date. The future variability in these indices and rates is unknown; therefore, it is excluded from our future minimum lease payments and is not a component of our ROU assets or lease liabilities. Losses/(gains) on sale and leaseback transactions, net, were insignificant for 2019. Supplemental balance sheet information related to our leases was (in millions, except lease term and discount rate): December 28, 2019 Operating Finance 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 % Operating lease ROU assets are included in other non-current assets and finance lease ROU assets are included in property, plant and equipment, net, on our consolidated balance sheets. The current portion of operating lease liabilities is included in other current liabilities, and the current portion of finance lease liabilities is included in the current portion of long-term debt on our consolidated balance sheets. The non-current portion of operating lease liabilities is included in other non-current liabilities, and the non-current portion of finance lease liabilities is included in long-term debt on our consolidated balance sheets. At December 28, 2019 , operating lease ROU assets, the current portion of operating lease liabilities, and the non-current portion of operating lease liabilities excluded amounts classified as held for sale. See Note 4, Acquisitions and Divestitures , for additional information. Cash flows arising from lease transactions were (in millions): 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 Future minimum lease payments for leases in effect at December 28, 2019 were (in millions): Operating Finance 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 Minimum rental commitments under non-cancelable operating leases in effect at December 29, 2018 under the previous lease standard, ASC 840, were (in millions): 2019 $ 185 2020 137 2021 105 2022 70 2023 49 Thereafter 148 Total $ 694 At December 28, 2019 , our operating and finance leases that had not yet commenced were insignificant. |
Leases | Leases We have operating and finance leases, primarily for warehouse, production, and office facilities and equipment. Our lease contracts have remaining contractual lease terms of up to 14 years , some of which include options to extend the term by up to 10 years . We include renewal options that are reasonably certain to be exercised as part of the lease term. Additionally, some lease contracts include termination options. We do not expect to exercise the majority of our termination options and generally exclude such options when determining the term of our leases. See Note 2, Significant Accounting Policies , for our lease accounting policy. The components of our lease costs were (in millions): 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 Our variable lease costs primarily consist of inventory related costs, such as materials, labor, and overhead components in our manufacturing and distribution arrangements that also contain a fixed component related to an embedded lease. These variable lease costs are determined based on usage or output or may vary for other reasons such as changes in material prices, taxes, or insurance. Certain of our variable lease costs are based on fluctuating indices or rates. These leases are included in our ROU assets and lease liabilities based on the index or rate at the lease commencement date. The future variability in these indices and rates is unknown; therefore, it is excluded from our future minimum lease payments and is not a component of our ROU assets or lease liabilities. Losses/(gains) on sale and leaseback transactions, net, were insignificant for 2019. Supplemental balance sheet information related to our leases was (in millions, except lease term and discount rate): December 28, 2019 Operating Finance 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 % Operating lease ROU assets are included in other non-current assets and finance lease ROU assets are included in property, plant and equipment, net, on our consolidated balance sheets. The current portion of operating lease liabilities is included in other current liabilities, and the current portion of finance lease liabilities is included in the current portion of long-term debt on our consolidated balance sheets. The non-current portion of operating lease liabilities is included in other non-current liabilities, and the non-current portion of finance lease liabilities is included in long-term debt on our consolidated balance sheets. At December 28, 2019 , operating lease ROU assets, the current portion of operating lease liabilities, and the non-current portion of operating lease liabilities excluded amounts classified as held for sale. See Note 4, Acquisitions and Divestitures , for additional information. Cash flows arising from lease transactions were (in millions): 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 Future minimum lease payments for leases in effect at December 28, 2019 were (in millions): Operating Finance 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 Minimum rental commitments under non-cancelable operating leases in effect at December 29, 2018 under the previous lease standard, ASC 840, were (in millions): 2019 $ 185 2020 137 2021 105 2022 70 2023 49 Thereafter 148 Total $ 694 At December 28, 2019 , our operating and finance leases that had not yet commenced were insignificant. |
Capital Stock (Notes)
Capital Stock (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Common Stock Our Second Amended and Restated Certificate of Incorporation authorizes the issuance of up to 5.0 billion shares of common stock. Shares of common stock issued, in treasury, and outstanding were (in millions of shares): 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 |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Our earnings per common share (“EPS”) were: 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 We use the treasury stock method to calculate the dilutive effect of outstanding equity awards in the denominator for diluted EPS. We had net losses attributable to common shareholders in 2018. Therefore, we excluded the dilutive effects of equity awards in 2018 as their inclusion would have had an anti-dilutive effect on EPS. Anti-dilutive shares were 10 million in 2019, 13 million in 2018, and 2 million in 2017. |
Segment Reporting (Notes)
Segment Reporting (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Management evaluates segment performance based on several factors, including net sales and Segment Adjusted EBITDA. Segment Adjusted EBITDA is defined as net income/(loss) from continuing operations before interest expense, other expense/(income), provision for/(benefit from) income taxes, and depreciation and amortization (excluding integration and restructuring expenses); in addition to these adjustments, we exclude, when they occur, the impacts of integration and restructuring expenses, deal costs, unrealized gains/(losses) on commodity hedges (the unrealized gains and losses are recorded in general corporate expenses until realized; once realized, the gains and losses are recorded in the applicable segment’s operating results), impairment losses, and equity award compensation expense (excluding integration and restructuring expenses). Segment Adjusted EBITDA is a tool that can assist management and investors in comparing our performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our underlying operations. Management uses Segment Adjusted EBITDA to evaluate segment performance and allocate resources. Management does not use assets by segment to evaluate performance or allocate resources. Therefore, we do not disclose assets by segment. Net sales by segment were (in millions): 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 Segment Adjusted EBITDA was (in millions): 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 Total depreciation and amortization expense by segment was (in millions): 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 Total capital expenditures by segment were (in millions): 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 Net sales by product category were (in millions): 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 Concentration of Risk: Our largest customer, Walmart Inc., represented approximately 21% of our net sales in 2019, 2018, and 2017. All of our segments have sales to Walmart Inc. Geographic Financial Information: We had significant sales in the United States, Canada, and the United Kingdom. Our net sales by geography were (in millions): 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 We had significant long-lived assets in the United States. Long-lived assets are comprised of property, plant and equipment, net of related accumulated depreciation. Our long-lived assets by geography were (in millions): 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 At December 28, 2019 and December 29, 2018 , long-lived assets by geography excluded amounts classified as held for sale. See Note 4, Acquisitions and Divestitures, for additional information. |
Other Financial Data (Notes)
Other Financial Data (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Other Income and Expenses [Abstract] | |
Other Financial Data | Other Financial Data Consolidated Statements of Income Information Other expense/(income) Other expense/(income) consists of the following (in millions): December 28, 2019 December 29, 2018 December 30, 2017 Amortization of prior service costs/(credits) $ (306 ) $ (311 ) $ (328 ) Net pension and postretirement non-service cost/(benefit) (a) (172 ) (40 ) (308 ) Loss/(gain) on sale of business (420 ) 15 — Interest income (36 ) (35 ) (43 ) Foreign exchange loss/(gain) 10 166 13 Other miscellaneous expense/(income) (28 ) 37 39 Other expense/(income) $ (952 ) $ (168 ) $ (627 ) (a) Excludes amortization of prior service costs/(credits). We present all non-service cost components of net pension cost/(benefit) and net postretirement cost/(benefit) within other expense/(income) on our consolidated statements of income. See Note 12, Postemployment Benefits , for additional information on these components, including any curtailments and settlements, as well as information on our prior service credit amortization. See Note 4, Acquisitions and Divestitures , for additional information related to our loss/(gain) on sale of business. See Note 15, Venezuela - Foreign Currency and Inflation , for information related to our nonmonetary currency devaluation losses. See Note 13, Financial Instruments , for information related to our derivative impacts. Other expense/(income) was $952 million of income in 2019 compared to $168 million of income in 2018. This increase was primarily driven by a $420 million net gain on sales of businesses in 2019 compared to a $15 million loss on sale of business in 2018, a $162 million non-cash settlement charge in the prior year related to the wind-up of our Canadian salaried and Canadian hourly defined benefit pension plans , and a $136 million decrease in nonmonetary currency devaluation losses related to our Venezuelan operations as compared to the prior year period. The increase also reflects a $28 million gain related to the excluded component on our cross-currency contracts designated as cash flow hedges as compared to the prior period gain of $1 million . Other expense/(income) was $168 million of income in 2018 compared to $627 million of income in 2017. This decrease was primarily due to a $162 million non-cash settlement charge in 2018 related to the wind-up of our Canadian salaried and Canadian hourly defined benefit pension plans compared to a $177 million non-cash curtailment gain from postretirement plan remeasurements in 2017. This decrease was also driven by a $110 million increase in nonmonetary currency devaluation losses related to our Venezuelan operations. There was also a $15 million loss on sale of business in 2018. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Our quarterly financial data for 2019 and 2018 is summarized as follows: 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 |
Supplemental Guarantor Informat
Supplemental Guarantor Information (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Guarantor Information | Supplemental Guarantor Information Kraft Heinz fully and unconditionally guarantees the notes issued by our 100% owned operating subsidiary, Kraft Heinz Foods Company. See Note 18, Debt , for additional descriptions of these guarantees. None of our other subsidiaries guarantee such notes. Set forth below are the condensed consolidating financial statements presenting the results of operations, financial position, and cash flows of Kraft Heinz (as parent guarantor), Kraft Heinz Foods Company (as subsidiary issuer of the notes), and the non-guarantor subsidiaries on a combined basis and eliminations necessary to arrive at the total reported information on a consolidated basis. This condensed consolidating financial information has been prepared and presented pursuant to the SEC Regulation S-X Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or being Registered.” This information is not intended to present the financial position, results of operations, and cash flows of the individual companies or groups of companies in accordance with U.S. GAAP. Eliminations represent adjustments to eliminate investments in subsidiaries and intercompany balances and transactions between or among the parent guarantor, subsidiary issuer, and the non-guarantor subsidiaries. The Kraft Heinz Company Condensed Consolidating Statements of Income For the Year Ended December 28, 2019 (in millions) 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 The Kraft Heinz Company Condensed Consolidating Statements of Income For the Year Ended December 29, 2018 (in millions) 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 ) The Kraft Heinz Company Condensed Consolidating Statements of Income For the Year Ended December 30, 2017 (in millions) 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 The Kraft Heinz Company Condensed Consolidating Balance Sheets As of December 28, 2019 (in millions) 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 The Kraft Heinz Company Condensed Consolidating Balance Sheets As of December 29, 2018 (in millions) 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 The Kraft Heinz Company Condensed Consolidating Statements of Cash Flows For the Year Ended December 28, 2019 (in millions) 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 The Kraft Heinz Company Condensed Consolidating Statements of Cash Flows For the Year Ended December 29, 2018 (in millions) 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 The Kraft Heinz Company Condensed Consolidating Statements of Cash Flows For the Year Ended December 30, 2017 (in millions) 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 The following tables provide a reconciliation of cash and cash equivalents, as reported on our condensed consolidating balance sheets, to cash, cash equivalents, and restricted cash, as reported on our condensed consolidating statements of cash flows (in millions): 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 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation, Policy | Principles of Consolidation The consolidated financial statements include Kraft Heinz and all of our controlled subsidiaries. All intercompany transactions are eliminated. |
Reportable Segments, Policy | Reportable Segments We manage and report our operating results through four segments. We have three reportable segments defined by geographic region: United States, Canada, and Europe, Middle East, and Africa (“EMEA”). Our remaining businesses are combined and disclosed as “Rest of World.” Rest of World comprises two operating segments: Latin America and Asia Pacific (“APAC”). During the third quarter of 2019, certain organizational changes were announced that will impact our future internal reporting and reportable segments. As a result of these changes, we plan to combine our EMEA, Latin America, and APAC zones to form the International zone. The International zone will be a reportable segment along with the United States and Canada in 2020. We also plan to move our Puerto Rico business from the Latin America zone to the United States zone to consolidate and streamline the management of our product categories and supply chain. These changes will be effective in the first quarter of 2020. |
Use of Estimates, Policy | Use of Estimates We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which requires us to make accounting policy elections, estimates, and assumptions that affect the reported amount of assets, liabilities, reserves, and expenses. These policy elections, estimates, and assumptions are based on our best estimates and judgments. We evaluate our policy elections, estimates, and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. We believe these estimates to be reasonable given the current facts available. We adjust our policy elections, estimates, and assumptions when facts and circumstances dictate. Market volatility, including foreign currency exchange rates, increases the uncertainty inherent in our estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from estimates. If actual amounts differ from estimates, we include the revisions in our consolidated results of operations in the period the actual amounts become known. Historically, the aggregate differences, if any, between our estimates and actual amounts in any year have not had a material effect on our consolidated financial statements. |
Reclassifications, Policy | Reclassifications We made reclassifications to certain previously reported financial information to conform to our current period presentation. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Revenue Recognition, Policy | Revenue Recognition: Our revenues are primarily derived from customer orders for the purchase of our products. We recognize revenues as performance obligations are fulfilled when control passes to our customers. We record revenues net of variable consideration, including consumer incentives and performance obligations related to trade promotions, excluding taxes, and including all shipping and handling charges billed to customers (accounting for shipping and handling charges that occur after the transfer of control as fulfillment costs). We also record a refund liability for estimated product returns and customer allowances as reductions to revenues within the same period that the revenue is recognized. We base these estimates principally on historical and current period experience factors. We recognize costs paid to third party brokers to obtain contracts as expenses as our contracts are generally less than one year. |
Advertising, Consumer Incentives, and Trade Promotions, Policy | Advertising, Consumer Incentives, and Trade Promotions: We promote our products with advertising, consumer incentives, and performance obligations related to trade promotions. Consumer incentives and trade promotions include, but are not limited to, discounts, coupons, rebates, performance-based in-store display activities, and volume-based incentives. Variable consideration related to consumer incentive and trade promotion activities is recorded as a reduction to revenues based on amounts estimated as being due to customers and consumers at the end of a period. We base these estimates principally on historical utilization, redemption rates, and/or current period experience factors. We review and adjust these estimates at least quarterly based on actual experience and other information. Advertising expenses are recorded in selling, general and administrative expenses (“SG&A”) . For interim reporting purposes, we charge advertising to operations as a percentage of estimated full year sales activity and marketing costs. We then review and adjust these estimates each quarter based on actual experience and other information. We recorded advertising expenses of $534 million in 2019, $584 million in 2018, and $629 million in 2017, which represented costs to obtain physical advertisement spots in television, radio, print, digital, and social channels. We also incur other advertising and marketing costs such as shopper marketing, sponsorships, and agency advertisement conception, design, and public relations fees. Total advertising and marketing costs were $1.1 billion in 2019, 2018, and 2017. |
Research and Development Expense, Policy | Research and Development Expense: We expense costs as incurred for product research and development within SG&A. Research and development expenses were approximately $112 million in 2019, $109 million in 2018, and $93 million |
Stock-Based Compensation, Policy | Stock-Based Compensation: We recognize compensation costs related to equity awards on a straight-line basis over the vesting period of the award, which is generally three to five years , or on a straight-line basis over the requisite service period for each separately vesting portion of the awards. These costs are primarily recognized within SG&A. We estimate expected forfeitures rather than recognizing forfeitures as they occur in determining our equity award compensation costs. We classify equity award compensation costs primarily within general corporate expenses. See Note 11, Employees’ Stock Incentive Plans , for additional information. |
Postemployment Benefit Plans, Policy | Postemployment Benefit Plans: We maintain various retirement plans for the majority of our employees. These include pension benefits, postretirement health care benefits, and defined contribution benefits. The cost of these plans is charged to expense over an appropriate term based on, among other things, the cost component and whether the plan is active or inactive. Changes in the fair value of our plan assets result in net actuarial gains or losses. These net actuarial gains and losses are deferred into accumulated other comprehensive income/(losses) and amortized within other expense/(income) in future periods using the corridor approach. The corridor is 10% of the greater of the market-related value of the plan’s asset or projected benefit obligation. Any actuarial gains and losses in excess of the corridor are then amortized over an appropriate term based on whether the plan is active or inactive. See Note 12, Postemployment Benefits , for additional information. |
Income Taxes, Policy | Income Taxes: We recognize income taxes based on amounts refundable or payable for the current year and record deferred tax assets or liabilities for any difference between the financial reporting and tax basis of our assets and liabilities. We also recognize deferred tax assets for temporary differences, operating loss carryforwards, and tax credit carryforwards. Inherent in determining our annual tax rate are judgments regarding business plans, planning opportunities, and expectations about future outcomes. Realization of certain deferred tax assets, primarily net operating loss and other carryforwards, is dependent upon generating sufficient taxable income in the appropriate jurisdiction prior to the expiration of the carryforward periods. We apply a more-likely-than-not threshold to the recognition and derecognition of uncertain tax positions. Accordingly, we recognize the amount of tax benefit that has a greater than 50 percent likelihood of being ultimately realized upon settlement. Future changes in judgment related to the expected ultimate resolution of uncertain tax positions will affect our results in the quarter of such change. We record valuation allowances to reduce deferred tax assets to the amount that is more likely than not to be realized. When assessing the need for valuation allowances, we consider future taxable income and ongoing prudent and feasible tax planning strategies. Should a change in circumstances lead to a change in judgment about the realizability of deferred tax assets in future years, we would adjust related valuation allowances in the period that the change in circumstances occurs, along with a corresponding adjustment to our provision for/(benefit from) income taxes. The resolution of tax reserves and changes in valuation allowances could be material to our results of operations for any period, but is not expected to be material to our financial position. |
Common Stock and Preferred Stock Dividends, Policy | Common Stock and Preferred Stock Dividends: Dividends are recorded as a reduction to retained earnings. When we have an accumulated deficit, dividends are recorded as a reduction of additional paid-in capital. |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents: Cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. Cash and cash equivalents that are legally restricted as to withdrawal or usage is classified in other current assets or other non-current assets, as applicable, on the consolidated balance sheets. |
Inventories, Policy | Inventories: Inventories are stated at the lower of cost or net realizable value. We value inventories primarily using the average cost method. |
Property, Plant and Equipment, Policy | Property, Plant and Equipment: Property, plant and equipment are stated at historical cost and depreciated on the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated over periods ranging from three years to 20 years and buildings and improvements over periods up to 40 years . Capitalized software costs are included in property, plant and equipment and amortized on a straight-line basis over the estimated useful lives of the software, which do not exceed seven years . We review long-lived assets for impairment when conditions exist that indicate the carrying amount of the assets may not be fully recoverable. Such conditions could include significant adverse changes in the business climate, current-period operating or cash flow losses, significant declines in forecasted operations, or a current expectation that an asset group will be disposed of before the end of its useful life. We perform undiscounted operating cash flow analyses to determine if an impairment exists. When testing for impairment of assets held for use, we group assets at the lowest level for which cash flows are separately identifiable. If an impairment is determined to exist, the loss is calculated based on estimated fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. |
Goodwill and Intangible Assets, Policy | Goodwill and Intangible Assets : We maintain 19 reporting units, 11 of which comprise our goodwill balance. Our indefinite-lived intangible asset balance primarily consists of a number of individual brands . We test our reporting units and brands for impairment annually as of the first day of our second quarter, or more frequently if events or circumstances indicate it is more likely than not that the fair value of a reporting unit or brand is less than its carrying amount. Such events and circumstances could include a sustained decrease in our market capitalization, increased competition or unexpected loss of market share, increased input costs beyond projections (for example due to regulatory or industry changes), disposals of significant brands or components of our business, unexpected business disruptions (for example due to a natural disaster or loss of a customer, supplier, or other significant business relationship), unexpected significant declines in operating results, significant adverse changes in the markets in which we operate, or changes in management strategy. We test reporting units for impairment by comparing the estimated fair value of each reporting unit with its carrying amount. We test brands for impairment by comparing the estimated fair value of each brand with its carrying amount. If the carrying amount of a reporting unit or brand exceeds its estimated fair value, we record an impairment loss based on the difference between fair value and carrying amount, in the case of reporting units, not to exceed the associated carrying amount of goodwill. Definite-lived intangible assets are amortized on a straight-line basis over the estimated periods benefited. We review definite-lived intangible assets for impairment when conditions exist that indicate the carrying amount of the assets may not be recoverable. Such conditions could include significant adverse changes in the business climate, current-period operating or cash flow losses, significant declines in forecasted operations, or a current expectation that an asset group will be disposed of before the end of its useful life. We perform undiscounted operating cash flow analyses to determine if an impairment exists. When testing for impairment of definite-lived intangible assets held for use, we group assets at the lowest level for which cash flows are separately identifiable. If an impairment is determined to exist, the loss is calculated based on estimated fair value. Impairment losses on definite-lived intangible assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. See Note 9, Goodwill and Intangible Assets , for additional information. |
Leases, Policy | Leases: We determine whether a contract is or contains a lease at contract inception based on the presence of identified assets and our right to obtain substantially all of the economic benefit from or to direct the use of such assets. When we determine a lease exists, we record a right-of-use (“ROU”) asset and corresponding lease liability on our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term. Lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets are recognized at commencement date at the value of the lease liability and are adjusted for any prepayments, lease incentives received, and initial direct costs incurred. Lease liabilities are recognized at lease commencement date based on the present value of remaining lease payments over the lease term. As the discount rate implicit in the lease is not readily determinable in most of our leases, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. We do not record lease contracts with a term of 12 months or less on our consolidated balance sheets. We recognize fixed lease expense for operating leases on a straight-line basis over the lease term. For finance leases, we recognize amortization expense on the ROU asset and interest expense on the lease liability over the lease term. We have lease agreements with non-lease components that relate to the lease components (e.g., common area maintenance such as cleaning or landscaping, insurance, etc.). We account for each lease and any non-lease components associated with that lease as a single lease component for all underlying asset classes. Accordingly, all costs associated with a lease contract are accounted for as lease costs. Certain leasing arrangements require variable payments that are dependent on usage or output or may vary for other reasons, such as insurance and tax payments. Variable lease payments that do not depend on an index or rate are excluded from lease payments in the measurement of the ROU asset and lease liability and are recognized as expense in the period in which the payment occurs. Our lease agreements do not include significant restrictions or covenants, and residual value guarantees are generally not included within our operating leases. |
Financial Instruments, Policy | Financial Instruments: As we source our commodities on global markets and periodically enter into financing or other arrangements abroad, we use a variety of risk management strategies and financial instruments to manage commodity price, foreign currency exchange rate, and interest rate risks. Our risk management program focuses on the unpredictability of financial markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on our operating results. One way we do this is through actively hedging our risks through the use of derivative instruments. As a matter of policy, we do not use highly leveraged derivative instruments, nor do we use financial instruments for speculative purposes. Derivatives are recorded on our consolidated balance sheets as assets or liabilities at fair value, which fluctuates based on changing market conditions. Certain derivatives are designated as cash flow hedges and qualify for hedge accounting treatment, while others are not designated as hedging instruments and are marked to market through net income/(loss). The gains and losses on cash flow hedges are deferred as a component of accumulated other comprehensive income/(losses) and are recognized in net income/(loss) at the time the hedged item affects net income/(loss), in the same line item as the underlying hedged item. The excluded component on cash flow hedges is recognized in net income/(loss) over the life of the hedging relationship in the same income statement line item as the underlying hedged item. We also designate certain derivatives and non-derivatives as net investment hedges to hedge the net assets of certain foreign subsidiaries which are exposed to volatility in foreign currency exchange rates. Changes in the value of these derivatives and remeasurements of our non-derivatives designated as net investment hedges are calculated each period using the spot method, with changes reported in foreign currency translation adjustment within accumulated other comprehensive income/(losses). Such amounts will remain in accumulated other comprehensive income/(losses) until the complete or substantially complete liquidation of our investment in the underlying foreign operations. The excluded component on derivatives designated as net investment hedges is recognized in net income/(loss) within interest expense. The income statement classification of gains and losses related to derivative instruments not designated as hedging instruments is determined based on the underlying intent of the contracts. Cash flows related to the settlement of derivative instruments designated as net investment hedges of foreign operations are classified in the consolidated statements of cash flows within investing activities. All other cash flows related to derivative instruments are classified in the same line item as the cash flows of the related hedged item, which is generally within operating activities. To qualify for hedge accounting, a specified level of hedging effectiveness between the hedging instrument and the item being hedged must be achieved at inception and maintained throughout the hedged period. When a hedging instrument no longer meets the specified level of hedging effectiveness, we reclassify the related hedge gains or losses previously deferred into other comprehensive income/(losses) to net income/(loss) within other expense/(income). We formally document our risk management objectives, our strategies for undertaking the various hedge transactions, the nature of and relationships between the hedging instruments and hedged items, and the method for assessing hedge effectiveness. Additionally, for qualified hedges of forecasted transactions, we specifically identify the significant characteristics and expected terms of the forecasted transactions. If it becomes probable that a forecasted transaction will not occur, the hedge will no longer be effective and all of the derivative gains or losses would be recognized in net income/(loss) in the current period. Unrealized gains and losses on our commodity derivatives not designated as hedging instruments are recorded in cost of products sold and are included within general corporate expenses until realized. Once realized, the gains and losses are included within the applicable segment operating results. See Note 13, Financial Instruments , for additional information. Our designated and undesignated derivative contracts include: • Net investment hedges. We have numerous investments in our foreign subsidiaries, the net assets of which are exposed to volatility in foreign currency exchange rates. We manage this risk by utilizing derivative and non-derivative instruments, including cross-currency swap contracts, foreign exchange contracts, and certain foreign denominated debt designated as net investment hedges. We exclude the interest accruals on cross-currency swap contracts and the forward points on foreign exchange forward contracts from the assessment and measurement of hedge effectiveness. We recognize the interest accruals on cross-currency swap contracts in net income/(loss) within interest expense. We amortize the forward points on foreign exchange contracts into net income/(loss) within interest expense over the life of the hedging relationship. • Foreign currency cash flow hedges. We use various financial instruments to mitigate our exposure to changes in exchange rates from third-party and intercompany actual and forecasted transactions. Our principal foreign currency exposures that are hedged include the British pound sterling, euro, and Canadian dollar. These instruments include cross-currency swap contracts and foreign exchange forward and option contracts. Substantially all of these derivative instruments are highly effective and qualify for hedge accounting treatment. We exclude the interest accruals on cross-currency swap contracts and the forward points and option premiums or discounts on foreign exchange contracts from the assessment and measurement of hedge effectiveness and amortize such amounts into net income/(loss) in the same line item as the underlying hedged item over the life of the hedging relationship. • Interest rate cash flow hedges. From time to time, we have used derivative instruments, including interest rate swaps, as part of our interest rate risk management strategy. We have primarily used interest rate swaps to hedge the variability of interest payment cash flows on a portion of our future debt obligations. • Commodity derivatives. We are exposed to price risk related to forecasted purchases of certain commodities that we primarily use as raw materials. We enter into commodity purchase contracts primarily for dairy products, meat products, coffee beans, sugar, vegetable oils, wheat products, corn products, and cocoa products. These commodity purchase contracts generally are not subject to the accounting requirements for derivative instruments and hedging activities under the normal purchases and normal sales exception. We also use commodity futures, options, and swaps to economically hedge the price of certain commodity costs, including the commodities noted above, as well as packaging products, diesel fuel, and natural gas. We do not designate these commodity contracts as hedging instruments. We also occasionally use futures to economically cross hedge a commodity exposure. |
Translation of Foreign Currencies, Policy | Translation of Foreign Currencies: For all significant foreign operations, the functional currency is the local currency. Assets and liabilities of these operations are translated at the exchange rate in effect at each period end. Income statement accounts are translated at the average rate of exchange prevailing during the period. Translation adjustments arising from the use of differing exchange rates from period to period are included as a component of accumulated other comprehensive income/(losses) on the balance sheet. Gains and losses from foreign currency transactions are included in net income/(loss) for the period. |
Highly Inflationary Accounting, Policy | Highly Inflationary Accounting: We apply highly inflationary accounting if the cumulative inflation rate in an economy for a three-year period meets or exceeds 100%. Under highly inflationary accounting, the financial statements of a subsidiary are remeasured into our reporting currency (U.S. dollars) based on the legally available exchange rate at which we expect to settle the underlying transactions. Exchange gains and losses from the remeasurement of monetary assets and liabilities are reflected in net income/(loss), rather than accumulated other comprehensive income/(losses) on the balance sheet, until such time as the economy is no longer considered highly inflationary. Certain non-monetary assets and liabilities are recorded at the applicable historical exchange rates. We apply highly inflationary accounting to the results of our subsidiaries in Venezuela and Argentina. The net monetary assets of our subsidiary in Argentina were approximately $1 million at December 28, 2019 . See Note 15, Venezuela - Foreign Currency and Inflation , for additional information related to our subsidiary in Venezuela. |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Standards, Policy | Accounting Standards Adopted in the Current Year Leases: In February 2016, the Financial Accounting Standards Board (the “FASB”) issued accounting standards update (“ASU”) 2016-02 to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The updated guidance requires lessees to reflect the majority of leases on their balance sheets as assets and obligations. This ASU became effective beginning in the first quarter of our fiscal year 2019. We adopted this ASU in the first quarter of 2019 using a modified retrospective transition method and elected the following practical expedients: (i) the optional transition method that allows us to apply the guidance at the adoption date and recognize any adjustments that result from applying Accounting Standards Codification (“ASC”) Topic 842, Leases , to existing leases as a cumulative-effect adjustment to the opening balance of retained earnings/(deficit) in the period of adoption (i.e., the effective date); (ii) the package of practical expedients that allows us to carry forward our determination of whether a lease exists, the classification of a lease, and whether initial direct lease costs exist for purposes of transition to the new standard; (iii) the land easement option, which allows us to continue to use prior accounting conclusions reached in our accounting for land easements; and (iv) the short-term lease exemption whereby we will not record an asset or liability for short-term leases. The most significant impact of adoption on our consolidated financial statements was the recognition of ROU assets and lease liabilities for operating leases. Our accounting for finance leases remained substantially unchanged. Upon adoption, we had total lease assets of $821 million and total lease liabilities of $887 million . The adoption of this ASU did not result in a cumulative-effect adjustment to the opening balance of retained earnings/(deficit) and did not impact our consolidated statements of income or our cash flows. See Note 2, Significant Accounting Policies , for our lease accounting policy and Note 19, Leases , for additional information related to our lease arrangements. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income: In February 2018, the FASB issued ASU 2018-02 related to reclassifying tax effects stranded in accumulated other comprehensive income/(losses) because of the Tax Cuts and Jobs Act (“U.S. Tax Reform”) enacted on December 22, 2017. U.S. Tax Reform reduced the U.S. federal corporate tax rate from 35.0% to 21.0%. ASC Topic 740, Income Taxes , requires the remeasurement of deferred tax assets and liabilities as a result of such changes in tax laws or rates to be presented in net income/(loss) from continuing operations. However, the related tax effects of such deferred tax assets and liabilities may have been originally recorded in other comprehensive income/(loss). This ASU allows companies to reclassify such stranded tax effects from accumulated other comprehensive income/(losses) to retained earnings/(deficit). This reclassification adjustment is optional, and if elected, may be applied either to the period of adoption or retrospectively to the period(s) impacted by U.S. Tax Reform. Additionally, this ASU requires companies to disclose the policy election for stranded tax effects as well as the general accounting policy for releasing income tax effects from accumulated other comprehensive income/(losses). This ASU became effective beginning in the first quarter of our fiscal year 2019. We adopted this ASU on the first day of our fiscal year 2019 and made the policy election to reclassify stranded tax effects from accumulated other comprehensive income/(losses) to retained earnings/(deficit) in the period of adoption. The impact of this policy election was an increase to retained earnings/(deficit) and a corresponding decrease to accumulated other comprehensive income/(losses) of $136 million . We generally release income tax effects from accumulated other comprehensive income/(losses) when the entire portfolio of the item giving rise to the tax effect is disposed of, liquidated, or terminated. Accounting Standards Not Yet Adopted Measurement of Current Expected Credit Losses: In June 2016, the FASB issued ASU 2016-13 to update the methodology used to measure current expected credit losses (“CECL”). This ASU applies to financial assets measured at amortized cost, including loans, held-to-maturity debt securities, net investments in leases, and trade accounts receivable as well as certain off-balance sheet credit exposures, such as loan commitments. This ASU replaces the current incurred loss impairment methodology with a methodology to reflect CECL and requires consideration of a broader range of reasonable and supportable information to explain credit loss estimates. The guidance must be adopted using a modified retrospective transition method through a cumulative-effect adjustment to retained earnings/(deficit) in the period of adoption. This ASU will be effective beginning in the first quarter of our fiscal year 2020. We do not expect this guidance to have a significant impact on our financial statements and related disclosures. Fair Value Measurement Disclosures: In August 2018, the FASB issued ASU 2018-13 related to fair value measurement disclosures. This ASU removes the requirement to disclose the amount of and reasons for transfers between Levels 1 and 2 of the fair value hierarchy, the policy for determining that a transfer has occurred, and valuation processes for Level 3 fair value measurements. Additionally, this ASU modifies the disclosures related to the measurement uncertainty for recurring Level 3 fair value measurements (by removing the requirement to disclose sensitivity to future changes) and the timing of liquidation of investee assets (by removing the timing requirement in certain instances). The guidance also requires new disclosures for Level 3 financial assets and liabilities, including the amount and location of unrealized gains and losses recognized in other comprehensive income/(loss) and additional information related to significant unobservable inputs used in determining Level 3 fair value measurements. This ASU will be effective beginning in the first quarter of our fiscal year 2020. Early adoption of the guidance in whole is permitted. Alternatively, companies may early adopt removed or modified disclosures and delay adoption of the additional disclosures until their effective date. Certain of the amendments in this ASU must be applied prospectively upon adoption, while other amendments must be applied retrospectively upon adoption. We elected to early adopt the provisions related to removing disclosures in the fourth quarter of our fiscal year 2018 on a retrospective basis. Accordingly, we removed certain disclosures from Note 12, Postemployment Benefits and Note 13, Financial Instruments . There was no other impact to our financial statement disclosures as a result of early adopting the provisions related to removing disclosures. Disclosure Requirements for Certain Employer-Sponsored Benefit Plans: In August 2018, the FASB issued ASU 2018-14 related to the disclosure requirements for employers that sponsor defined benefit pension and other postretirement benefit plans. The guidance requires sponsors of these plans to provide additional disclosures, including weighted-average interest rates used in the company’s cash balance plans and a narrative description of reasons for any significant gains or losses impacting the benefit obligation for the period. Additionally, this guidance eliminates certain previous disclosure requirements. This ASU will be effective beginning with our Annual Report on Form 10-K for the year ended December 26, 2020. This guidance must be applied on a retrospective basis to all periods presented. Implementation Costs Incurred in Hosted Cloud Computing Service Arrangements: In August 2018, the FASB issued ASU 2018-15 related to accounting for implementation costs incurred in hosted cloud computing service arrangements. Under the new guidance, implementation costs incurred in a hosting arrangement that is a service contract should be expensed or capitalized based on the nature of the costs and the project stage during which such costs are incurred. If the implementation costs qualify for capitalization, they must be amortized over the term of the hosting arrangement and assessed for impairment. Companies must disclose the nature of any hosted cloud computing service arrangements. This ASU also provides guidance for balance sheet and income statement presentation of capitalized implementation costs and statement of cash flows presentation for the related payments. This ASU will be effective beginning in the first quarter of our fiscal year 2020. This guidance may be adopted either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We will prospectively adopt this guidance and do not expect that it will have a significant impact on our financial statements and related disclosures. Simplifying the Accounting for Income Taxes: In December 2019, the FASB issued ASU 2019-12 to simplify the accounting in ASC 740, Income Taxes . This guidance removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC 740. This ASU will be effective beginning in the first quarter of our fiscal year 2021. Early adoption is permitted. Certain amendments in this update must be applied on a prospective basis, certain amendments must be applied on a retrospective basis, and certain amendments must be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings/(deficit) in the period of adoption. We are currently evaluating the impact this ASU will have on our financial statements and related disclosures as well as the timing of adoption. |
Acquisitions and Divestitures_2
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Business Acquisition [Line Items] | |
Assets and Liabilities Held for Sale by Major Class | Our assets and liabilities held for sale, by major class, were (in millions): 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 |
Primal Nutrition | |
Business Acquisition [Line Items] | |
Purchase Price Allocation to Assets Acquired and Liabilities Assumed | The final purchase price allocation to assets acquired and liabilities assumed in the Primal Acquisition was (in millions): Cash $ 2 Other current assets 15 Identifiable intangible assets 66 Current liabilities (6 ) Net assets acquired 77 Goodwill on acquisition 124 Total consideration $ 201 |
Purchase Price Allocation to Identifiable Intangible Assets Acquired | The purchase price allocation to identifiable intangible assets acquired in the Primal Acquisition was: 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 |
Cerebos | |
Business Acquisition [Line Items] | |
Purchase Price Allocation to Assets Acquired and Liabilities Assumed | The final purchase price allocation to assets acquired and liabilities assumed in the Cerebos Acquisition was (in millions): 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 |
Purchase Price Allocation to Identifiable Intangible Assets Acquired | The final purchase price allocation to identifiable intangible assets acquired in the Cerebos Acquisition was: Fair Value (in millions of dollars) Weighted Average Life (in years) Definite-lived trademarks $ 87 22 Customer-related assets 13 12 Total $ 100 |
Heinz India | |
Business Acquisition [Line Items] | |
Assets and Liabilities Held for Sale by Major Class | The components of the pre-tax gain were as follows (in millions): Proceeds $ 655 Less investment in Heinz India (355 ) Recognition of tax indemnification (48 ) Other (3 ) Pre-tax gain on sale of Heinz India $ 249 |
Canada Natural Cheese | |
Business Acquisition [Line Items] | |
Assets and Liabilities Held for Sale by Major Class | The components of the pre-tax gain were as follows (in millions): 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 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | Our net liability balance for restructuring project costs that qualify as exit and disposal costs under U.S. GAAP (i.e., severance and employee benefit costs and other exit costs) was (in millions): 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 |
Restructuring Costs by Type and Income Statement Location | Total expense/(income) related to restructuring activities, including the Integration Program, by income statement caption, were (in millions): 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 |
Restructuring Costs Excluded from Segments | The pre-tax impact of allocating such expenses to our segments would have been (in millions): 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 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Reconciliation from Cash and Cash Equivalents to Cash, Cash Equivalents, and Restricted Cash | The following table provides a reconciliation of cash and cash equivalents, as reported on our consolidated balance sheets, to cash, cash equivalents, and restricted cash, as reported on our consolidated statements of cash flows (in millions): 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 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following (in millions): 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 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Property, plant and equipment consisted of the following (in millions): 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 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill by Segment | Changes in the carrying amount of goodwill, by segment, were (in millions): 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 |
Changes in the Carrying Amount of Indefinite-Lived Intangible Assets | Changes in the carrying amount of indefinite-lived intangible assets, which primarily consisted of trademarks, were (in millions): 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 |
Schedule of Definite-Lived Intangible Assets By Major Asset Class | Definite-lived intangible assets were (in millions): 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 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income/(loss) before income taxes and the provision for/(benefit from) income taxes, consisted of the following (in millions): 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 ) |
Schedule of Effective Income Tax Rate Reconciliation | The effective tax rate on income/(loss) before income taxes differed from the U.S. federal statutory tax rate for the following reasons: 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 )% |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences and carryforwards that gave rise to deferred income tax assets and liabilities consisted of the following (in millions): 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 |
Schedule of Unrecognized Tax Benefits Roll Forward | The changes in our unrecognized tax benefits were (in millions): 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 |
Employees' Stock Incentive Pl_2
Employees' Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Weighted Average Black-Scholes Fair Value Assumptions | We use the Black-Scholes model to estimate the fair value of stock option grants. Our weighted average Black-Scholes fair value assumptions were: 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 |
Schedule of Stock Option Activity and Related Information | Our stock option activity and related information was: Number of Stock Options Weighted Average Exercise Price Aggregate Intrinsic Value 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 |
Schedule of Unvested Stock Options and Related Information | Our unvested stock options and related information was: Number of Stock Options Weighted Average Grant Date Fair Value 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 |
Schedule of RSU Activity and Related Information | Our RSU activity and related information was: 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 |
Schedule of PSU Activity and Related Information | Our PSU activity and related information was: 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 |
Schedule of Compensation Costs Related to Equity Plans | Equity award compensation cost and the related tax benefit was (in millions): 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 |
Postemployment Benefits (Tables
Postemployment Benefits (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |
Changes in Level 3 Plan Assets | Changes in our Level 3 plan assets for the year ended December 28, 2019 included (in millions): 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 Real estate $ 79 $ — $ 2 $ 2 $ (38 ) $ — $ 45 Corporate bonds and other fixed-income securities — — — — — 3 3 Certain insurance contracts 53 — — 1 (5 ) — 49 Total Level 3 investments $ 132 $ — $ 2 $ 3 $ (43 ) $ 3 $ 97 Changes in our Level 3 plan assets for the year ended December 29, 2018 included (in millions): 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 Net purchases, issuances and settlements of $845 million principally related to insurance contract settlements in Canada in connection with the wind-up of our Canadian salaried and hourly defined benefit pension plans. |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status | The projected benefit obligations, fair value of plan assets, and funded status of our pension plans were (in millions): 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 ) |
Amounts Recognized in Balance Sheet | We recognized these amounts on our consolidated balance sheets as follows (in millions): 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 |
Schedule of Accumulated Benefit Obligation in Excess of Fair Value of Plan Assets | For certain of our U.S. and non-U.S. plans that were underfunded based on accumulated benefit obligations in excess of plan assets, the projected benefit obligations, accumulated benefit obligations, and the fair value of plan assets were (in millions): 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 |
Schedule of Projected Benefit Obligations in Excess of Fair Value of Plan Assets | For certain of our U.S. and non-U.S. plans that were underfunded based on projected benefit obligations in excess of plan assets, the projected benefit obligations, accumulated benefit obligations, and the fair value of plan assets were (in millions): 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 |
Net Cost/(Benefit) | Net pension cost/(benefit) consisted of the following (in millions): 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 ) |
Weighted Average Asset Allocation of Plan Assets | Our weighted average asset allocations were: 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 % |
Fair Value of Plan Assets | The fair value of pension plan assets at December 28, 2019 was determined using the following fair value measurements (in millions): Asset Category Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs 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 (a) Amount includes cash collateral of $226 million associated with our securities lending program, which is reflected as an asset, and a corresponding securities lending payable of $226 million , which is reflected as a liability. The net impact on total plan assets at fair value is zero . The fair value of pension plan assets at December 29, 2018 was determined using the following fair value measurements (in millions): Asset Category Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs 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 (a) Amount includes cash collateral of $269 million associated with our securities lending program, which is reflected as an asset, and a corresponding securities lending payable of $269 million , which is reflected as a liability. The net impact on total plan assets at fair value is zero . |
Estimated Future Benefit Payments | The estimated future benefit payments from our pension plans at December 28, 2019 were (in millions): 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 |
Postretirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Amounts Recognized in Balance Sheet | We recognized the net postretirement benefit asset/(liability) on our consolidated balance sheets as follows (in millions): December 28, 2019 December 29, 2018 Other current liabilities $ (15 ) $ (14 ) Accrued postemployment costs (184 ) (236 ) Net postretirement benefit asset/(liability) recognized $ (199 ) $ (250 ) |
Schedule of Accumulated Benefit Obligation in Excess of Fair Value of Plan Assets | The accumulated benefit obligations and the fair value of plan assets were (in millions): December 28, 2019 December 29, 2018 Accumulated benefit obligation $ 1,313 $ 1,294 Fair value of plan assets 1,114 1,044 |
Net Cost/(Benefit) | Net postretirement cost/(benefit) consisted of the following (in millions): 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 ) |
Weighted Average Asset Allocation of Plan Assets | Our weighted average asset allocations were: December 28, 2019 December 29, 2018 Fixed-income securities 65 % 65 % Equity securities 31 % 27 % Cash and cash equivalents 4 % 8 % |
Fair Value of Plan Assets | The fair value of postretirement benefit plan assets at December 28, 2019 was determined using the following fair value measurements (in millions): Asset Category Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs 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 The fair value of postretirement benefit plan assets at December 29, 2018 was determined using the following fair value measurements (in millions): Asset Category Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs 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 |
Estimated Future Benefit Payments | Our estimated future benefit payments for our postretirement plans at December 28, 2019 were (in millions): 2020 $ 125 2021 114 2022 114 2023 107 2024 101 2025-2029 413 |
Changes in Accumulated Benefit Obligation, Fair Value of Plan Assets, and Funded Status | The accumulated benefit obligation, fair value of plan assets, and funded status of our postretirement benefit plans were (in millions): 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 |
Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rate | A one-percentage-point change in assumed health care cost trend rates would have the following effects, increase/(decrease) in cost and obligation, as of December 28, 2019 (in millions): One-Percentage-Point Increase (Decrease) Effect on annual service and interest cost $ 3 $ (2 ) Effect on postretirement benefit obligation 55 (47 ) |
Accumulated Other Comprehensive Income/(Loss) | Our accumulated other comprehensive income/(losses) pension and postretirement benefit plans balances, before tax, consisted of the following (in millions): 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 |
Amounts Recognized in Other Comprehensive Income/(Loss) | The net postemployment benefits recognized in other comprehensive income/(loss), consisted of the following (in millions): 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 ) |
Pension Benefit Obligation | Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Weighted Average Assumptions Used | We used the following weighted average assumptions to determine our projected benefit obligations under the pension plans: 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 % |
Net Pension Cost | Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Weighted Average Assumptions Used | We used the following weighted average assumptions to determine our net pension costs for the years ended: 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 % |
Postretirement Benefit Obligation | Postretirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Weighted Average Assumptions Used | We used the following weighted average assumptions to determine our postretirement benefit obligations: 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 % |
Net Postretirement Cost | Postretirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Weighted Average Assumptions Used | We used the following weighted average assumptions to determine our net postretirement benefit plans cost for the years ended: 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 % |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Values of Outstanding Derivatives | The notional values of our outstanding derivative instruments were (in millions): 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 |
Schedule of Derivative Fair Values | The fair values and the levels within the fair value hierarchy of derivative instruments recorded on the consolidated balance sheets were (in millions): December 28, 2019 Quoted Prices in Active Markets for Identical Assets and Liabilities Significant Other Observable Inputs Total Fair Value Assets Liabilities Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments: Foreign exchange contracts (a) $ — $ — $ 7 $ 20 $ 7 $ 20 Cross-currency contracts (b) — — 200 88 200 88 Derivatives not designated as hedging instruments: Commodity contracts (c) 42 6 — 2 42 8 Foreign exchange contracts (a) — — 6 3 6 3 Total fair value $ 42 $ 6 $ 213 $ 113 $ 255 $ 119 (a) At December 28, 2019 , the fair value of our derivative assets was recorded in other current assets ( $12 million ) and other non-current assets ( $1 million ), and the fair value of our derivative liabilities was recorded in other current liabilities. (b) At December 28, 2019 , the fair value of our derivative assets was recorded in other non-current assets and the fair value of our derivative liabilities was recorded in other non-current liabilities. (c) At December 28, 2019 , the fair value of our derivative assets was recorded in other current assets and the fair value of derivative liabilities was recorded in other current liabilities. December 29, 2018 Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Total Fair Value Assets Liabilities Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments: Foreign exchange contracts (a) $ — $ — $ 51 $ 26 $ 51 $ 26 Cross-currency contracts (b) — — 139 3 139 3 Derivatives not designated as hedging instruments: Commodity contracts (a) 5 27 — 2 5 29 Foreign exchange contracts (a) — — 5 42 5 42 Cross-currency contracts (b) — — 557 119 557 119 Total fair value $ 5 $ 27 $ 752 $ 192 $ 757 $ 219 (a) The fair value of derivative assets was recorded in other current assets and the fair value of derivative liabilities was recorded in other current liabilities. (b) The fair value of derivative assets was recorded in other current assets ( $557 million ) and other non-current assets ( $139 million ), and the fair value of derivative liabilities was recorded within other current liabilities ( $119 million ) and other non-current liabilities ( $3 million ). |
Derivative Impact on Statements of Other Comprehensive Income | The following table presents the pre-tax amounts of derivative gains/(losses) deferred into accumulated other comprehensive income/(losses) and the income statement line item that will be affected when reclassified to net income/(loss) (in millions): 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 ) |
Derivative Impact on Statements of Income | The following tables present the pre-tax amounts of derivative gains/(losses) reclassified from accumulated other comprehensive income/(losses) to net income/(loss) and the affected income statement line items (in millions): 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 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income/(Losses) (Tables) - AOCI Attributable to Parent | 12 Months Ended |
Dec. 28, 2019 | |
Accumulated Other Comprehensive Income/(Loss) [Line Items] | |
Components of and Changes in Accumulated Other Comprehensive Income/(Losses) | The components of, and changes in, accumulated other comprehensive income/(losses), net of tax, were as follows (in millions): Foreign Currency Translation Adjustments Net Postemployment Benefit Plan Adjustments Net Cash Flow Hedge Adjustments Total Balance as of December 31, 2016 $ (2,413 ) $ 772 $ 12 $ (1,629 ) Foreign currency translation adjustments 1,179 — — 1,179 Net deferred gains/(losses) on net investment hedges (353 ) — — (353 ) Net deferred gains/(losses) on cash flow hedges — — (113 ) (113 ) Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) — — 85 85 Net postemployment benefit gains/(losses) arising during the period — 86 — 86 Net postemployment benefit losses/(gains) reclassified to net income/(loss) — (309 ) — (309 ) Total other comprehensive income/(loss) 826 (223 ) (28 ) 575 Balance as of December 30, 2017 (1,587 ) 549 (16 ) (1,054 ) Foreign currency translation adjustments (1,173 ) — — (1,173 ) Net deferred gains/(losses) on net investment hedges 284 — — 284 Amounts excluded from the effectiveness assessment of net investment hedges 7 — — 7 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (7 ) — — (7 ) Net deferred gains/(losses) on cash flow hedges — — 99 99 Amounts excluded from the effectiveness assessment of cash flow hedges — — 2 2 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) — — (44 ) (44 ) Net postemployment benefit gains/(losses) arising during the period — 61 — 61 Net postemployment benefit losses/(gains) reclassified to net income/(loss) — (118 ) — (118 ) Total other comprehensive income/(loss) (889 ) (57 ) 57 (889 ) Balance as of December 29, 2018 (2,476 ) 492 41 (1,943 ) Foreign currency translation adjustments 239 — — 239 Net deferred gains/(losses) on net investment hedges 1 — — 1 Amounts excluded from the effectiveness assessment of net investment hedges 22 — — 22 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (16 ) — — (16 ) Net deferred gains/(losses) on cash flow hedges — — (10 ) (10 ) Amounts excluded from the effectiveness assessment of cash flow hedges — — 29 29 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) — — (41 ) (41 ) Net postemployment benefit gains/(losses) arising during the period — (69 ) — (69 ) Net postemployment benefit losses/(gains) reclassified to net income/(loss) — (234 ) — (234 ) Cumulative effect of accounting standards adopted in the period (a) — 114 22 136 Total other comprehensive income/(loss) 246 (189 ) — 57 Balance at December 28, 2019 $ (2,230 ) $ 303 $ 41 $ (1,886 ) (a) In the first quarter of 2019, we adopted ASU 2018-02 related to reclassifying tax effects stranded in accumulated other comprehensive income/(losses). See Note 3, New Accounting Standards , for additional information. |
Gross Amount and Related Tax Benefit/(Expense) Recorded in and Associated with each Component of Other Comprehensive Income/(Loss) | The gross amount and related tax benefit/(expense) recorded in, and associated with, each component of other comprehensive income/(loss) were as follows (in millions): 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 ) |
Amounts Reclassified From Accumulated Other Comprehensive Income/(Losses) | The amounts reclassified from accumulated other comprehensive income/(losses) were as follows (in millions): 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 ) (a) Represents the reclassification of hedge losses/(gains) resulting from the complete or substantially complete liquidation of our investment in the underlying foreign operations. (b) Represents recognition of the excluded component in net income/(loss). (c) Includes amortization of the excluded component and the effective portion of the related hedges. (d) Represents amortization of realized hedge losses that were deferred into accumulated other comprehensive income/(losses) through the maturity of the related long-term debt instruments. (e) These components are included in the computation of net periodic postemployment benefit costs. See Note 12, Postemployment Benefits , for additional information. |
Commitments and Contingencies_2
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Future Purchase Obligations | As of December 28, 2019 , our take-or-pay purchase obligations were as follows (in millions): 2020 $ 1,324 2021 590 2022 448 2023 306 2024 187 Thereafter 89 Total $ 2,944 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | A tabular summary of the 2019 Notes is included below. 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 The following table summarizes our long-term debt obligations. Priority (a) Maturity Dates Interest Rates (b) Carrying Values December 28, 2019 December 29, 2018 (in millions) U.S. dollar notes: 2025 Notes (c) Senior Secured Notes February 15, 2025 4.875% $ 971 $ 1,193 Other U.S. dollar notes (d)(e) Senior Notes 2020-2049 2.471% - 7.125% 24,127 25,551 Euro notes (d) Senior Notes 2023-2028 1.500% - 2.250% 2,834 2,899 Canadian dollar notes (f) Senior Notes July 6, 2020 3.020% 382 586 British pound sterling notes: 2030 Notes (g) Senior Secured Notes February 18, 2030 6.250% 170 165 Other British pound sterling notes (d) Senior Notes July 1, 2027 4.125% 519 504 Other long-term debt Various 2020-2035 0.500% - 5.500% 48 50 Finance lease obligations 187 199 Total long-term debt 29,238 31,147 Current portion of long-term debt 1,022 377 Long-term debt, excluding current portion $ 28,216 $ 30,770 (a) Priority of debt indicates the order which debt would be paid if all debt obligations were due on the same day. Senior secured debt takes priority over unsecured debt. Senior debt has greater seniority than subordinated debt. (b) Floating interest rates are stated as of December 28, 2019 . (c) The 4.875% Second Lien Senior Secured Notes due February 15, 2025 (the “2025 Notes”) are senior in right of payment of existing and future unsecured and subordinated indebtedness. Kraft Heinz fully and unconditionally guarantees these notes. (d) Kraft Heinz fully and unconditionally guarantees these notes, which were issued by KHFC. (e) Includes current year issuances (the “2019 Notes”) described below. (f) Kraft Heinz fully and unconditionally guarantees these notes, which were issued by Kraft Heinz Canada ULC (formerly Kraft Canada Inc.). (g) The 6.250% Pound Sterling Senior Secured Notes due February 18, 2030 (the “2030 Notes”) were issued by H.J. Heinz Finance UK Plc. Kraft Heinz and KHFC fully and unconditionally guarantee the 2030 Notes. This guarantee is secured and senior in right of payment of existing and future unsecured and subordinated indebtedness. Kraft Heinz became guarantor of the 2030 Notes in connection with the 2015 Merger. The 2030 Notes were previously only guaranteed by KHFC. |
Schedule of Maturities of Long-term Debt | At December 28, 2019 , aggregate principal maturities of our long-term debt excluding finance leases were (in millions): 2020 $ 995 2021 990 2022 2,073 2023 1,678 2024 617 Thereafter 22,460 |
Schedule of Extinguishment of Debt | The aggregate principal amounts of senior notes before and after the 2019 Debt Redemptions were (in millions): 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 The aggregate principal amounts of senior notes and second lien senior secured notes before and after the Tender Offers and the amounts validly tendered pursuant to the Tender Offers were (in millions): 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 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Components of Lease Costs and Supplemental Information | The components of our lease costs were (in millions): 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 Supplemental balance sheet information related to our leases was (in millions, except lease term and discount rate): December 28, 2019 Operating Finance 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 % Cash flows arising from lease transactions were (in millions): 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 |
Schedule of Future Minimum Lease Payments for Operating Leases | Future minimum lease payments for leases in effect at December 28, 2019 were (in millions): Operating Finance 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 |
Schedule of Future Minimum Lease Payments for Finance Leases | Future minimum lease payments for leases in effect at December 28, 2019 were (in millions): Operating Finance 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 |
Schedule of Future Minimum Rental Payments for Operating Leases | Minimum rental commitments under non-cancelable operating leases in effect at December 29, 2018 under the previous lease standard, ASC 840, were (in millions): 2019 $ 185 2020 137 2021 105 2022 70 2023 49 Thereafter 148 Total $ 694 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
Common Stock Issued, in Treasury, and Outstanding | Shares of common stock issued, in treasury, and outstanding were (in millions of shares): 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 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Common Share, Basic and Diluted | Our earnings per common share (“EPS”) were: 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 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Net Sales by Segment | Net sales by segment were (in millions): 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 |
Segment Adjusted EBITDA | Segment Adjusted EBITDA was (in millions): 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 |
Depreciation and Amortization Expense by Segment | Total depreciation and amortization expense by segment was (in millions): 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 |
Capital Expenditures by Segment | Total capital expenditures by segment were (in millions): 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 |
Net Sales by Product Category | Net sales by product category were (in millions): 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 |
Net Sales by Geography | We had significant sales in the United States, Canada, and the United Kingdom. Our net sales by geography were (in millions): 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 |
Long-lived Assets by Geography | Our long-lived assets by geography were (in millions): 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 |
Other Financial Data (Tables)
Other Financial Data (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of of Other Expense/(Income) | Other expense/(income) Other expense/(income) consists of the following (in millions): December 28, 2019 December 29, 2018 December 30, 2017 Amortization of prior service costs/(credits) $ (306 ) $ (311 ) $ (328 ) Net pension and postretirement non-service cost/(benefit) (a) (172 ) (40 ) (308 ) Loss/(gain) on sale of business (420 ) 15 — Interest income (36 ) (35 ) (43 ) Foreign exchange loss/(gain) 10 166 13 Other miscellaneous expense/(income) (28 ) 37 39 Other expense/(income) $ (952 ) $ (168 ) $ (627 ) (a) Excludes amortization of prior service costs/(credits). |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Our quarterly financial data for 2019 and 2018 is summarized as follows: 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 |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Statements of Income | The Kraft Heinz Company Condensed Consolidating Statements of Income For the Year Ended December 28, 2019 (in millions) 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 The Kraft Heinz Company Condensed Consolidating Statements of Income For the Year Ended December 29, 2018 (in millions) 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 ) The Kraft Heinz Company Condensed Consolidating Statements of Income For the Year Ended December 30, 2017 (in millions) 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 |
Condensed Consolidating Balance Sheets | The Kraft Heinz Company Condensed Consolidating Balance Sheets As of December 28, 2019 (in millions) 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 The Kraft Heinz Company Condensed Consolidating Balance Sheets As of December 29, 2018 (in millions) 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 |
Condensed Consolidating Statements of Cash Flows | The Kraft Heinz Company Condensed Consolidating Statements of Cash Flows For the Year Ended December 28, 2019 (in millions) 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 The Kraft Heinz Company Condensed Consolidating Statements of Cash Flows For the Year Ended December 29, 2018 (in millions) 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 The Kraft Heinz Company Condensed Consolidating Statements of Cash Flows For the Year Ended December 30, 2017 (in millions) 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 |
Reconciliation from Cash and Cash Equivalents to Cash, Cash Equivalents, and Restricted Cash | The following tables provide a reconciliation of cash and cash equivalents, as reported on our condensed consolidating balance sheets, to cash, cash equivalents, and restricted cash, as reported on our condensed consolidating statements of cash flows (in millions): 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 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 12 Months Ended |
Dec. 28, 2019segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Operating Segments | 4 |
Number of Reportable Segments | 3 |
Number of Operating Segments in Rest of World Reportable Segment | 2 |
Significant Accounting Polici_3
Significant Accounting Policies Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Advertising expense | $ 534 | $ 584 | $ 629 |
Advertising and marketing costs | 1,100 | 1,100 | 1,100 |
Research and development expense | 112 | $ 109 | $ 93 |
Net monetary assets | $ 1 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years |
Significant Accounting Polici_4
Significant Accounting Policies Additional Information - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 28, 2019 | |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 20 years |
Building and building improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Software and software development costs | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Significant Accounting Polici_5
Significant Accounting Policies Additional Information - Goodwill and Intangible Assets (Details) - goodwill_reporting_unit | 3 Months Ended | 12 Months Ended |
Mar. 30, 2019 | Dec. 28, 2019 | |
Goodwill [Line Items] | ||
Number of reporting units | 19 | 19 |
Reporting Unit, Goodwill Balance Held | ||
Goodwill [Line Items] | ||
Number of reporting units | 11 |
New Accounting Standards Additi
New Accounting Standards Additional Information (Details) - USD ($) $ in Millions | Dec. 30, 2018 | Dec. 28, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Tax cuts and jobs act, reclassification from AOCI to retained earnings, tax effect | $ 136 | |
Accounting Standards Update 2016-02 | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Total lease assets | $ 821 | |
Total lease liabilities | 887 | |
Accounting Standards Update 2018-02 | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Tax cuts and jobs act, reclassification from AOCI to retained earnings, tax effect | $ 136 |
Acquisitions and Divestitures A
Acquisitions and Divestitures Additional Information (Details) $ in Millions, ₨ in Billions, $ in Billions | Jul. 02, 2019USD ($) | Jan. 30, 2019USD ($) | Jan. 03, 2019USD ($) | Mar. 09, 2018USD ($) | Nov. 30, 2018CAD ($) | Oct. 31, 2018INR (₨)third-party | Dec. 28, 2019USD ($) | Sep. 28, 2019USD ($) | Mar. 30, 2019USD ($) | Sep. 29, 2018USD ($) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | May 31, 2018 |
Business Acquisition [Line Items] | ||||||||||||||
Goodwill | $ 35,546 | $ 35,546 | $ 36,503 | |||||||||||
Deal costs | 19 | 23 | $ 0 | |||||||||||
Gains/(losses) on sale of business | (420) | 15 | 0 | |||||||||||
Potential Disposition | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Proceeds from sale of business | 55 | |||||||||||||
Potential disposition net income | 1 | |||||||||||||
Disposal group, expected net assets to be transferred and accumulated foreign currency to be released | 126 | 126 | ||||||||||||
Gains/(losses) on sale of business | $ 71 | |||||||||||||
Heinz India | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Number of third-parties | third-party | 2 | |||||||||||||
Sale of stock, percentage of ownership before transaction | 100.00% | |||||||||||||
Proceeds from sale of business | $ 655 | ₨ 46 | ||||||||||||
Disposal group, expected net assets to be transferred and accumulated foreign currency to be released | 355 | |||||||||||||
Gains/(losses) on sale of business | (249) | $ (246) | (249) | |||||||||||
Other adjustments | 3 | $ 3 | ||||||||||||
Tax indemnity liabilities | 48 | |||||||||||||
Heinz India | Other expense/(income) | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Gains/(losses) on sale of business | $ 48 | |||||||||||||
Heinz India | Other current liabilities | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Tax indemnity liabilities | 18 | |||||||||||||
Heinz India | Other non-current liabilities | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Tax indemnity liabilities | $ 30 | |||||||||||||
Canada Natural Cheese | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Proceeds from sale of business | $ 1,236 | $ 1.6 | ||||||||||||
Gains/(losses) on sale of business | (242) | |||||||||||||
Other adjustments | $ (1) | |||||||||||||
South Africa Subsidiary | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Proceeds from sale of business | 18 | |||||||||||||
Gains/(losses) on sale of business | 15 | |||||||||||||
Noncontrolling interest, ownership percentage | 50.10% | |||||||||||||
Primal Nutrition | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Percent acquired | 100.00% | |||||||||||||
Total consideration paid | $ 201 | |||||||||||||
Goodwill | $ 124 | |||||||||||||
Deal costs | 2 | |||||||||||||
Cerebos | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Percent acquired | 100.00% | |||||||||||||
Total consideration paid | $ 244 | |||||||||||||
Goodwill | $ 25 | |||||||||||||
Deal costs | 20 | |||||||||||||
Other Acquisitions | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total consideration paid | $ 27 | |||||||||||||
Divestitures | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Deal costs | $ 17 | $ 3 | $ 0 |
Acquisitions and Divestitures P
Acquisitions and Divestitures Primal Nutrition Purchase Price Allocation to Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Jan. 03, 2019 | Dec. 29, 2018 |
Business Acquisition [Line Items] | |||
Goodwill on acquisition | $ 35,546 | $ 36,503 | |
Primal Nutrition | |||
Business Acquisition [Line Items] | |||
Cash | $ 2 | ||
Other current assets | 15 | ||
Identifiable intangible assets | 66 | ||
Current liabilities | (6) | ||
Net assets acquired | 77 | ||
Goodwill on acquisition | 124 | ||
Total consideration | $ 201 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures Primal Nutrition Purchase Price Allocation to Identifiable Intangible Assets Acquired (Details) - Primal Nutrition $ in Millions | Jan. 03, 2019USD ($) |
Business Acquisition [Line Items] | |
Identifiable intangible assets | $ 66 |
Trademarks | |
Business Acquisition [Line Items] | |
Identifiable intangible assets | $ 52.5 |
Definite-lived intangible asset, weighted average life | 15 years |
Customer-related assets | |
Business Acquisition [Line Items] | |
Identifiable intangible assets | $ 13.5 |
Definite-lived intangible asset, weighted average life | 20 years |
Acquisitions and Divestitures C
Acquisitions and Divestitures Cerebos Purchase Price Allocation to Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 | Mar. 09, 2018 |
Business Acquisition [Line Items] | |||
Goodwill on acquisition | $ 35,546 | $ 36,503 | |
Cerebos | |||
Business Acquisition [Line Items] | |||
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 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures Cerebos Purchase Price Allocation to Indefinite Lived Assets (Details) - Cerebos $ in Millions | Mar. 09, 2018USD ($) |
Business Acquisition [Line Items] | |
Identifiable intangible assets | $ 100 |
Trademarks | |
Business Acquisition [Line Items] | |
Identifiable intangible assets | $ 87 |
Definite-lived intangible asset, weighted average life | 22 years |
Customer-related assets | |
Business Acquisition [Line Items] | |
Identifiable intangible assets | $ 13 |
Definite-lived intangible asset, weighted average life | 12 years |
Acquisitions and Divestitures_5
Acquisitions and Divestitures Components of Gain on Heinz India Sale (Details) $ in Millions, ₨ in Billions | Jan. 30, 2019USD ($) | Oct. 31, 2018INR (₨) | Sep. 28, 2019USD ($) | Mar. 30, 2019USD ($) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Pre-tax gain on sale of Heinz India | $ 420 | $ (15) | $ 0 | ||||
Heinz India | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from sale of business | $ 655 | ₨ 46 | |||||
Less investment in Heinz India | (355) | ||||||
Recognition of tax indemnification | (48) | ||||||
Other | (3) | $ (3) | |||||
Pre-tax gain on sale of Heinz India | $ 249 | $ 246 | $ 249 |
Acquisitions and Divestitures_6
Acquisitions and Divestitures Components of Gain on Canada Natural Cheese Sale (Details) $ in Millions, $ in Billions | Jul. 02, 2019USD ($) | Nov. 30, 2018CAD ($) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Pre-tax gain resulting from Canada Natural Cheese Transaction | $ 420 | $ (15) | $ 0 | ||
Canada Natural Cheese | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of business | $ 1,236 | $ 1.6 | |||
Carrying value of Canada Natural Cheese net assets | (995) | ||||
Other | $ 1 | ||||
Pre-tax gain resulting from Canada Natural Cheese Transaction | $ 242 |
Acquisitions and Divestitures_7
Acquisitions and Divestitures Assets and Liabilities Held for Sale by Major Class (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | ||
Cash and cash equivalents | $ 27 | $ 0 |
Inventories | 21 | 92 |
Property, plant and equipment, net | 25 | 139 |
Goodwill | 0 | 669 |
Intangible assets, net | 23 | 437 |
Other | 26 | 39 |
Total assets held for sale | 122 | 1,376 |
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | ||
Trade payables | 3 | 16 |
Other | 6 | 39 |
Total liabilities held for sale | $ 9 | $ 55 |
Restructuring Activities Additi
Restructuring Activities Additional Information (Details) | 12 Months Ended | ||
Dec. 28, 2019USD ($)employee | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | $ 108,000,000 | $ 460,000,000 | $ 434,000,000 |
Restructuring Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected number of positions eliminated | employee | 550 | ||
Restructuring and related cost, number of positions eliminated | employee | 400 | ||
Restructuring and related cost, incurred cost (credit) | $ 108,000,000 | 368,000,000 | 118,000,000 |
Restructuring Activities | Severance and Employee Benefit Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 15,000,000 | ||
Restructuring Activities | Asset-Related Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 37,000,000 | ||
Restructuring Activities | Other Implementation Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 55,000,000 | ||
Restructuring Activities | Other Exit Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 1,000,000 | ||
Integration Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | $ 0 | $ 92,000,000 | $ 316,000,000 |
Restructuring Activities Restru
Restructuring Activities Restructuring Reserve Roll-forward (Details) - Restructuring Activities $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 65 |
Charges/(credits) | 16 |
Cash payments | (31) |
Non-cash utilization | 4 |
Ending balance | 46 |
Severance and Employee Benefit Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 32 |
Charges/(credits) | 15 |
Cash payments | (21) |
Non-cash utilization | 4 |
Ending balance | 22 |
Other Exit Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 33 |
Charges/(credits) | 1 |
Cash payments | (10) |
Non-cash utilization | 0 |
Ending balance | $ 24 |
Restructuring Activities Rest_2
Restructuring Activities Restructuring Costs by Type and Income Statement Location (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | $ 108 | $ 460 | $ 434 |
Severance and Employee Benefit Costs | Cost of products sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | (3) | 12 | 9 |
Severance and Employee Benefit Costs | Selling, general and administrative expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 14 | 32 | 26 |
Severance and Employee Benefit Costs | Other expense/(income) | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 4 | 6 | (149) |
Asset-Related Costs | Cost of products sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 29 | 59 | 191 |
Asset-Related Costs | Selling, general and administrative expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 8 | 36 | 26 |
Other Costs | Cost of products sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 22 | 123 | 264 |
Other Costs | Selling, general and administrative expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 32 | 35 | 67 |
Other Costs | Other expense/(income) | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | $ 2 | $ 157 | $ 0 |
Restructuring Activities Rest_3
Restructuring Activities Restructuring Costs Excluded from Segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting Information [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | $ 108 | $ 460 | $ 434 |
United States | |||
Segment Reporting Information [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 37 | 205 | 270 |
Canada | |||
Segment Reporting Information [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 18 | 176 | 34 |
EMEA | |||
Segment Reporting Information [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 16 | 16 | 56 |
Rest of World | |||
Segment Reporting Information [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 13 | 25 | 13 |
General corporate expenses | |||
Segment Reporting Information [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | $ 24 | $ 38 | $ 61 |
Restricted Cash Reconciliation
Restricted Cash Reconciliation from Cash and Cash Equivalents to Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
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 | 0 | 5 | ||
Cash, cash equivalents, and restricted cash | $ 2,280 | $ 1,136 | $ 1,769 | $ 4,255 |
Inventories Components of Inven
Inventories Components of Inventories (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Inventory Disclosure [Abstract] | ||
Packaging and ingredients | $ 511 | $ 510 |
Work in process | 364 | 343 |
Finished product | 1,846 | 1,814 |
Inventories | $ 2,721 | $ 2,667 |
Property, Plant and Equipment P
Property, Plant and Equipment Property, plant and equipment (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 210 | $ 218 |
Buildings and improvements | 2,447 | 2,375 |
Equipment and other | 6,552 | 5,904 |
Construction in progress | 1,033 | 1,165 |
Property, plant and equipment, gross | 10,242 | 9,662 |
Accumulated depreciation | (3,187) | (2,584) |
Property, plant and equipment, net | $ 7,055 | $ 7,078 |
Property, Plant and Equipment A
Property, Plant and Equipment Additional information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 708 | $ 693 | $ 753 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets Changes in the Carrying Amount of Goodwill by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 29, 2018 | Jul. 01, 2017 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Goodwill [Roll Forward] | |||||
Beginning balance | $ 36,503 | ||||
Impairment losses | $ (6,900) | (1,197) | $ (7,008) | $ 0 | |
Acquisitions | 130 | ||||
Translation adjustments and other | 110 | ||||
Ending balance | 36,503 | 35,546 | 36,503 | ||
United States | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 29,597 | ||||
Impairment losses | (118) | ||||
Acquisitions | 124 | ||||
Translation adjustments and other | (2) | ||||
Ending balance | 29,597 | 29,601 | 29,597 | ||
Canada | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 2,438 | ||||
Impairment losses | 0 | ||||
Acquisitions | 0 | ||||
Translation adjustments and other | 106 | ||||
Ending balance | 2,438 | 2,544 | 2,438 | ||
EMEA | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 3,074 | ||||
Impairment losses | $ (49) | (292) | |||
Acquisitions | 6 | ||||
Translation adjustments and other | 17 | ||||
Ending balance | 3,074 | 2,805 | 3,074 | ||
Rest of World | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 1,394 | ||||
Impairment losses | (787) | ||||
Acquisitions | 0 | ||||
Translation adjustments and other | (11) | ||||
Ending balance | $ 1,394 | $ 596 | $ 1,394 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets Goodwill - Additional Information (Details) $ in Millions | Mar. 31, 2019USD ($)goodwill_reporting_unit | Dec. 28, 2019USD ($)goodwill_reporting_unit | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($)goodwill_reporting_unit | Dec. 29, 2018USD ($)goodwill_reporting_unit | Jun. 30, 2018USD ($) | Jul. 01, 2017USD ($) | Jun. 29, 2019 | Dec. 28, 2019USD ($)goodwill_reporting_unit | Dec. 29, 2018USD ($)goodwill_reporting_unit | Dec. 30, 2017USD ($) |
Goodwill [Line Items] | |||||||||||
Number of reporting units | goodwill_reporting_unit | 19 | 19 | |||||||||
Goodwill | $ 35,546 | $ 36,503 | $ 35,546 | $ 36,503 | |||||||
Impairment losses | $ 6,900 | 1,197 | $ 7,008 | $ 0 | |||||||
Number of reporting units, impairment recognized | goodwill_reporting_unit | 5 | 5 | |||||||||
Number of reporting units, no impairment recognized | goodwill_reporting_unit | 2 | 2 | |||||||||
Goodwill, impaired, accumulated impairment loss | (8,200) | (8,200) | |||||||||
EMEA | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill | 2,805 | $ 3,074 | 2,805 | $ 3,074 | |||||||
Impairment losses | $ 49 | 292 | |||||||||
Rest of World | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill | 596 | 1,394 | 596 | 1,394 | |||||||
Impairment losses | 787 | ||||||||||
United States | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill | $ 29,601 | $ 29,597 | 29,601 | $ 29,597 | |||||||
Impairment losses | $ 118 | ||||||||||
Reporting Unit, Goodwill Balance Held | |||||||||||
Goodwill [Line Items] | |||||||||||
Number of reporting units | goodwill_reporting_unit | 11 | ||||||||||
Reporting Unit, Fair Value Below Carrying Amount | |||||||||||
Goodwill [Line Items] | |||||||||||
Number of reporting units | goodwill_reporting_unit | 3 | 3 | 7 | ||||||||
Impairment losses | $ 453 | $ 620 | |||||||||
EMEA East | EMEA | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill | 144 | ||||||||||
Impairment losses | 286 | ||||||||||
BRAZIL | Rest of World | |||||||||||
Goodwill [Line Items] | |||||||||||
Impairment losses | 205 | ||||||||||
Latin America Exports | Rest of World | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill | 195 | 297 | $ 195 | ||||||||
Impairment losses | 96 | $ 129 | |||||||||
U.S. Refrigerated | United States | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill | $ 7,000 | ||||||||||
Decrease in market capitalization | 25.00% | ||||||||||
Impairment losses | $ 118 | ||||||||||
Australia and New Zealand | |||||||||||
Goodwill [Line Items] | |||||||||||
Impairment losses | $ 133 | ||||||||||
Australia and New Zealand | Rest of World | |||||||||||
Goodwill [Line Items] | |||||||||||
Impairment losses | 357 | ||||||||||
10% or Less | |||||||||||
Goodwill [Line Items] | |||||||||||
Number of reporting units | goodwill_reporting_unit | 6 | ||||||||||
10% or Less | U.S. Grocery | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill | $ 18,600 | ||||||||||
10% or Less | U.S. Foodservice | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill | 3,900 | ||||||||||
10% or Less | Canada Retail | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill | 2,100 | ||||||||||
10% or Less | Australia and New Zealand | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill | 370 | ||||||||||
10% or Less | Canada Food Service | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill | 368 | ||||||||||
10% or Less | Northeast Asia | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill | $ 83 | $ 83 | $ 83 | ||||||||
10 to 20% | Continental Europe | |||||||||||
Goodwill [Line Items] | |||||||||||
Number of reporting units | goodwill_reporting_unit | 1 | ||||||||||
Goodwill | $ 593 | ||||||||||
20 to 50% | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill | $ 2,400 | ||||||||||
In Excess of 50% | |||||||||||
Goodwill [Line Items] | |||||||||||
Number of reporting units | goodwill_reporting_unit | 0 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets Changes in the Carrying Amount of Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 29, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Dec. 28, 2019 | |
Indefinite-lived Intangible Assets [Roll Forward] | |||||
Beginning balance | $ 43,966 | ||||
Impairment losses | $ (474) | $ (8,600) | $ (215) | $ (101) | (687) |
Reclassified to assets held for sale | (9) | ||||
Translation adjustments | 130 | ||||
Ending balance | $ 43,966 | $ 43,400 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets Indefinite-Lived Intangible Assets - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 28, 2019USD ($)Brand | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Dec. 29, 2018USD ($)Brand | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 28, 2019USD ($)Brand | Mar. 31, 2019USD ($)Brand | |
Indefinite-lived Intangible Assets [Line Items] | ||||||||
Indefinite-lived intangible assets | $ 43,400 | $ 43,966 | $ 43,400 | |||||
Impairment losses | $ 474 | $ 8,600 | $ 215 | $ 101 | $ 687 | |||
Number of brands, impairment recognized | Brand | 5 | |||||||
Number of brands, more likely than not fair value below carrying amount | Brand | 6 | |||||||
Number of brands, valued using the excess earnings method | Brand | 3 | |||||||
Number of brands, valued using the relief from royalty method | Brand | 2 | |||||||
Brand, percentage of fair value in excess of carrying value | 20.00% | 20.00% | ||||||
Impaired Brand | ||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||
Indefinite-lived intangible assets | $ 13,500 | $ 13,000 | ||||||
Number of brands, impairment recognized | Brand | 6 | |||||||
Decrease in market capitalization | 25.00% | |||||||
Maxwell House | ||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||
Indefinite-lived intangible assets | $ 823 | $ 823 | ||||||
Impairment losses | 213 | |||||||
Wattie's | ||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||
Indefinite-lived intangible assets | $ 94 | $ 94 | ||||||
10% or Less | Impaired Brand | ||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||
Indefinite-lived intangible assets | $ 13,400 | |||||||
Number of brands, impairment recognized | Brand | 2 | 2 | 3 | |||||
10 to 20% | Impaired Brand | ||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||
Indefinite-lived intangible assets | $ 3,600 | |||||||
Number of brands, impairment recognized | Brand | 3 | |||||||
20 to 50% | Impaired Brand | ||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||
Indefinite-lived intangible assets | $ 4,200 | |||||||
In Excess of 50% | Impaired Brand | ||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||
Indefinite-lived intangible assets | $ 9,300 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets Definite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross | $ 6,570 | $ 6,589 |
Accumulated amortization | (1,318) | (1,087) |
Net | 5,252 | 5,502 |
Trademarks | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross | 2,443 | 2,474 |
Accumulated amortization | (469) | (402) |
Net | 1,974 | 2,072 |
Customer-related assets | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross | 4,113 | 4,097 |
Accumulated amortization | (845) | (681) |
Net | 3,268 | 3,416 |
Other | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross | 14 | 18 |
Accumulated amortization | (4) | (4) |
Net | $ 10 | $ 14 |
Goodwill and Intangible Asset_8
Goodwill and Intangible Assets Definite-Lived Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 286 | $ 290 | $ 278 |
Definite-lived intangible assets, preliminary purchase accounting adjustments | 66 | ||
Definite-lived intangible assets, impairment | (15) | ||
Amortization of definite-lived intangible assets, next twelve months | 277 | ||
Amortization of definite-lived intangible assets, year two | 277 | ||
Amortization of definite-lived intangible assets, year three | 277 | ||
Amortization of definite-lived intangible assets, year four | 277 | ||
Amortization of definite-lived intangible assets, year five | $ 277 |
Income Taxes Additional Informa
Income Taxes Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | ||||
U.S. federal statutory tax rate | 21.00% | 21.00% | 35.00% | |
U.S. Tax Reform final expense (benefit) | $ 7,100 | |||
U.S. Tax Reform, change in tax rate, income tax expense (benefit) | 7,500 | |||
U.S. Tax Reform, transition tax for accumulated foreign earnings, income tax expense | 224 | |||
U.S. Tax Reform, change in tax rate, deferred tax liability, income tax benefit | 120 | |||
U.S. Tax Reform, transition tax for accumulated foreign earnings, liability | $ 20 | 78 | ||
Undistributed earnings of foreign subsidiaries | 300 | 1,200 | ||
Foreign earnings repatriated | 700 | |||
Tax expense (benefit) | 40 | |||
Deferred tax liability not recognized, amount of unrecognized deferred tax liability, undistributed earnings of foreign subsidiaries | 70 | |||
Income tax expense (benefit) | $ (728) | $ 1,067 | $ 5,482 | |
U.S. Tax Reform discrete income tax benefit | 0 | 0.005 | (1.290) | |
Operating loss carryforwards | $ 364 | |||
Deferred tax assets, operating loss carryforwards, subject to expiration | 35 | |||
Deferred tax assets, operating loss carryforwards, not subject to expiration | 329 | |||
Deferred tax assets, operating loss carryforwards, foreign | 104 | |||
Deferred tax assets, operating loss carryforwards, state and local | 73 | |||
Unrecognized tax benefits | 406 | $ 387 | $ 408 | $ 389 |
Unrecognized tax benefits that would impact effective tax rate | 369 | |||
Decrease in unrecognized tax benefits is reasonably possible | 24 | |||
Unrecognized tax benefits, income tax penalties and interest expense | 5 | (24) | ||
Unrecognized tax benefits, income tax penalties and interest accrued | 62 | 62 | ||
Accounting Standards Update 2016-09 | ||||
Income Taxes [Line Items] | ||||
Income tax expense (benefit) | 12 | $ 12 | $ 22 | |
Tax Authority, Spain | ||||
Income Taxes [Line Items] | ||||
Foreign earnings repatriated | 110 | |||
Tax expense (benefit) | (11) | |||
Rest of World | ||||
Income Taxes [Line Items] | ||||
Foreign earnings repatriated | 30 | |||
Tax expense (benefit) | $ (6) |
Income Taxes Income before inco
Income Taxes Income before income taxes and provision for income taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | |||
Income (Loss) before Income Taxes, United States | $ 796 | $ (10,305) | $ 3,811 |
Income (Loss) before Income Taxes, International | 1,865 | (1,016) | 1,639 |
Income/(loss) before income taxes | 2,661 | (11,321) | 5,450 |
Current Federal, State and Local, Tax Expense (Benefit) [Abstract] | |||
Current U.S. Federal Tax Expense (Benefit) | 466 | 444 | 765 |
Current U.S. State and Local Tax Expense (Benefit) | 116 | 134 | (47) |
Current International Tax Expense (Benefit) | 439 | 322 | 295 |
Current Income Tax Expense (Benefit) | 1,021 | 900 | 1,013 |
Deferred Federal, State and Local, Tax Expense (Benefit) [Abstract] | |||
Deferred U.S. Federal Income Tax Expense (Benefit) | (209) | (1,843) | (6,590) |
Deferred U.S. State and Local Income Tax Expense (Benefit) | (7) | (121) | 97 |
Deferred International Income Tax Expense (Benefit) | (77) | (3) | (2) |
Deferred Income Tax Expense (Benefit) | (293) | (1,967) | (6,495) |
Income Tax Expense (Benefit) | $ 728 | $ (1,067) | $ (5,482) |
Income Taxes Effective Tax Rate
Income Taxes Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
U.S. federal statutory tax rate | 21.00% | 21.00% | 35.00% |
Tax on income of foreign subsidiaries | (7.50%) | 3.40% | (4.80%) |
Domestic manufacturing deduction | 0.00% | 0.00% | (1.50%) |
U.S. state and local income taxes, net of federal tax benefit | 1.10% | 1.60% | 1.10% |
Audit settlements and changes in uncertain tax positions | 1.30% | (0.30%) | (0.20%) |
U.S. Tax Reform discrete income tax benefit | 0 | 0.005 | (1.290) |
Global intangible low-taxed income | 1.80% | (0.50%) | 0.00% |
Goodwill impairment | 9.30% | (15.10%) | 0.00% |
Wind-up of non-U.S. pension plans | 0.00% | (0.40%) | 0.00% |
Losses/(gains) related to acquisitions and divestitures | 1.00% | 0.10% | 0.00% |
Movement of valuation allowance reserves | 1.30% | 0.00% | 0.00% |
Other | (1.90%) | (0.90%) | (1.20%) |
Effective tax rate | 27.40% | 9.40% | (100.60%) |
Income Taxes Deferred Income Ta
Income Taxes Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Deferred Tax Liabilities, Gross [Abstract] | ||
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 Tax Assets, Gross [Abstract] | ||
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 |
Income Taxes Changes in Unrecog
Income Taxes Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
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 | 0 | (10) | 0 |
Balance at the end of the period | $ 406 | $ 387 | $ 408 |
Employees' Stock Incentive Pl_3
Employees' Stock Incentive Plans Additional Information (Details) $ / shares in Units, $ in Millions | Jul. 02, 2015shares | Dec. 28, 2019USD ($)annual_installment$ / sharesshares | Dec. 29, 2018USD ($)$ / shares | Dec. 30, 2017USD ($)$ / shares | Apr. 30, 2016shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options, exercises in period, intrinsic value | $ | $ 10 | $ 67 | $ 124 | ||
Proceeds from stock options exercised | $ | 17 | 56 | 66 | ||
Tax benefit upon the exercise of stock options | $ | $ 18 | $ 23 | $ 44 | ||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected dividend yield | 5.30% | 3.60% | 2.80% | ||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Conversion of stock, shares issued | 1 | ||||
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 25.77 | $ 58.59 | $ 91.25 | ||
Expected dividend yield | 5.39% | 3.31% | |||
Equity instruments other than options, vested in period, fair value | $ | $ 2 | $ 9 | $ 12 | ||
PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Conversion of stock, shares issued | 1 | ||||
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 25.31 | $ 56.31 | $ 79.85 | ||
Expected dividend yield | 5.39% | 3.31% | 2.73% | ||
All Equity Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Nonvested awards, compensation cost not yet recognized | $ | $ 365 | ||||
Nonvested awards, compensation cost not yet recognized, period for recognition | 3 years | ||||
2016 Omnibus Incentive Plan | Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized | 18,000,000 | ||||
Vesting period | 5 years | ||||
Expiration period | 10 years | ||||
2013 Omnibus Incentive Plan | Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized | 17,555,947 | ||||
Vesting period | 5 years | ||||
Expiration period | 10 years | ||||
Business acquisition, common stock of parent, conversion ration to common stock of successor company | 0.443332 | ||||
2012 Performance Incentive Plan | Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period | 10 years | ||||
Award vesting, number of annual installments | annual_installment | 3 | ||||
2012 Performance Incentive Plan | Stock Options | Involuntary termination without cause | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Accelerated vesting for terminated employees after acquisition, termination period | 2 years | ||||
2012 Performance Incentive Plan | Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting, number of annual installments | annual_installment | 2 | ||||
2012 Performance Incentive Plan | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Business acquisition, restricted stock units acquiree, converted to restricted stock units of successor company, number of shares | 1 | ||||
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Minimum | 2016 Omnibus Incentive Plan | Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Award vesting, number of annual installments | annual_installment | 3 | ||||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Maximum | 2016 Omnibus Incentive Plan | Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Award vesting, number of annual installments | annual_installment | 4 |
Employees' Stock Incentive Pl_4
Employees' Stock Incentive Plans Schedule of Weighted Average Black-Scholes Fair Value Assumptions (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 1.46% | 2.75% | 2.25% |
Expected term | 6 years 6 months | 7 years 6 months | 7 years 6 months |
Expected volatility | 31.20% | 21.30% | 19.60% |
Expected dividend yield | 5.30% | 3.60% | 2.80% |
Weighted average grant date fair value per share | $ 4.11 | $ 10.26 | $ 14.24 |
Employees' Stock Incentive Pl_5
Employees' Stock Incentive Plans Schedule of Stock Option Activity and Related Information (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($)$ / sharesshares | |
Roll-forward of Stock Option Activity (in shares) | |
Beginning balance | shares | 18,259,965 |
Granted | shares | 1,880,648 |
Forfeited | shares | (1,771,653) |
Exercised | shares | (730,460) |
Ending balance | shares | 17,638,500 |
Exercisable | shares | 11,539,568 |
Stock Option Activity, Weighted Average Exercise Price [Abstract] | |
Options outstanding at period start, weighted average exercise price (in dollars per share) | $ / shares | $ 44.64 |
Options granted, weighted average exercise price (in dollars per share) | $ / shares | 25.41 |
Options forfeited, weighted average exercise price (in dollars per share) | $ / shares | 66.89 |
Options exercised, weighted average exercise price (in dollars per share) | $ / shares | 23.81 |
Options outstanding at period end, weighted average exercise price (in dollars per share) | $ / shares | 41.22 |
Options exercisable, weighed average exercise price (in dollars per share) | $ / shares | $ 33.89 |
Options outstanding, intrinsic value | $ | $ 42 |
Options exercisable, intrinsic value | $ | $ 51 |
Options outstanding, weighted average remaining contractual term | 4 years |
Options exercisable, weighted average remaining contractual term | 3 years |
Employees' Stock Incentive Pl_6
Employees' Stock Incentive Plans Schedule of Unvested Stock Options and Related Information (Details) | 12 Months Ended |
Dec. 28, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance | shares | 7,767,917 |
Granted | shares | 1,880,648 |
Vested | shares | (2,140,396) |
Forfeited | shares | (1,409,237) |
Ending balance | shares | 6,098,932 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Options unvested at period start, weighted average grant date fair value (in dollars per share) | $ / shares | $ 10.16 |
Options granted, weighted average grant date fair value (in dollars per share) | $ / shares | 4.11 |
Options vested, weighted average grant date fair value (in dollars per share) | $ / shares | 7.12 |
Options forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 11.51 |
Options unvested at period end, weighted average grant date fair value (in dollars per share) | $ / shares | $ 9.04 |
Employees' Stock Incentive Pl_7
Employees' Stock Incentive Plans Schedule of RSU Activity and Related Information (Details) - RSUs - $ / shares | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Roll-forward of RSU Activity (in shares) | |||
Beginning balance | 2,338,958 | ||
Granted | 8,091,999 | ||
Forfeited | (959,485) | ||
Vested | (75,563) | ||
Ending balance | 9,395,909 | 2,338,958 | |
Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding at period start, weighted average grant date fair value (in dollars per share) | $ 68.49 | ||
Granted, weighted average grant date fair value (in dollars per share) | 25.77 | $ 58.59 | $ 91.25 |
Forfeited, weighted average grant date fair value (in dollars per share) | 50.16 | ||
Vested, weighted average grant date fair value (in dollars per share) | 76.38 | ||
Outstanding at period end, weighted average grant date fair value (in dollars per share) | $ 33.51 | $ 68.49 |
Employees' Stock Incentive Pl_8
Employees' Stock Incentive Plans Schedule of PSU Activity and Related Information (Details) - PSUs - $ / shares | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Roll-forward of PSU Activity (in shares) | |||
Beginning balance | 3,252,056 | ||
Granted | 4,832,626 | ||
Forfeited | (1,271,023) | ||
Ending balance | 6,813,659 | 3,252,056 | |
Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding at period start, weighted average grant date fair value (in dollars per share) | $ 59.24 | ||
Granted, weighted average grant date fair value (in dollars per share) | 25.31 | $ 56.31 | $ 79.85 |
Forfeited, weighted average grant date fair value (in dollars per share) | 54.67 | ||
Outstanding at period end, weighted average grant date fair value (in dollars per share) | $ 36.03 | $ 59.24 |
Employees' Stock Incentive Pl_9
Employees' Stock Incentive Plans Schedule of Compensation Costs Related to Equity Plans (Details) - All Equity Awards - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pre-tax compensation cost | $ 46 | $ 33 | $ 46 |
Related tax benefit | 9 | 7 | 14 |
After-tax compensation cost | $ 37 | $ 26 | $ 32 |
Postemployment Benefits Benefit
Postemployment Benefits Benefit Plans - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, net periodic benefit cost/(credit) reversal | $ 42,000,000 | |||
Defined benefit plan, amortization of prior service cost/(credit) reversal | $ 28,000,000 | |||
Defined contribution plans, cost | $ 88,000,000 | $ 85,000,000 | $ 78,000,000 | |
U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation | 4,500,000,000 | 4,100,000,000 | ||
Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation | 2,100,000,000 | 1,700,000,000 | ||
Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net asset/(liability) recognized | 988,000,000 | 918,000,000 | ||
Pension Plans | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlements | 0 | 190,000,000 | ||
Employer contributions | 0 | 0 | ||
Estimated future employer contributions in 2020 | 0 | |||
Curtailments | 0 | 0 | 0 | |
Pension Plans | Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlements | 0 | 1,221,000,000 | ||
Employer contributions | 19,000,000 | 57,000,000 | ||
Estimated future employer contributions in 2020 | 19,000,000 | |||
Curtailments | 0 | 1,000,000 | 0 | |
Pension Plans | Canadian Salaried and Hourly Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlements | 162,000,000 | |||
Postretirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net asset/(liability) recognized | (199,000,000) | (250,000,000) | ||
Employer contributions | 13,000,000 | 19,000,000 | 1,200,000,000 | |
Estimated future employer contributions in 2020 | 15,000,000 | |||
Future amortization of prior service credits, 2020 | 123,000,000 | |||
Future amortization of prior service credits, 2021 | 8,000,000 | |||
Future amortization of prior service credits, 2022 | 6,000,000 | |||
Future amortization of prior service credits, 2023 | 6,000,000 | |||
Future amortization of prior service credits, 2024 | 2,000,000 | |||
Curtailments | 5,000,000 | $ 0 | $ 177,000,000 | |
Employer contributions excluding Medicare D subsidy | $ 12,000,000 | |||
Fixed income securities | Pension Plans | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 85.00% | |||
Fixed income securities | Pension Plans | Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 78.00% | |||
Fixed income securities | Postretirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 70.00% | |||
Return seeking assets | Pension Plans | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 15.00% | |||
Return seeking assets | Pension Plans | Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 22.00% | |||
Return seeking assets | Postretirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 30.00% | |||
Minimum | Postretirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Year that health care cost trend rate reaches the ultimate trend rate | 2020 | |||
Maximum | Postretirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Year that health care cost trend rate reaches the ultimate trend rate | 2030 |
Postemployment Benefits Pension
Postemployment Benefits Pension Plans - Changes in Benefit Obligations, Fair Value of Plan Assets, and Funded Status (Details) - Pension Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | $ 6,908 | ||
Fair value of plan assets at end of year | 7,676 | $ 6,908 | |
U.S. Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 4,060 | 4,719 | |
Service cost | 7 | 10 | $ 11 |
Interest cost | 163 | 158 | 178 |
Benefits paid | (331) | (191) | |
Actuarial losses/(gains) | 602 | (447) | |
Plan amendments | 0 | 1 | |
Currency | 0 | 0 | |
Settlements | 0 | (190) | |
Curtailments | 0 | 0 | 0 |
Special/contractual termination benefits | 0 | 0 | |
Other | 0 | 0 | |
Benefit obligation at end of year | 4,501 | 4,060 | 4,719 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 4,219 | 4,785 | |
Actual return on plan assets | 947 | (185) | |
Employer contributions | 0 | 0 | |
Benefits paid | (331) | (191) | |
Currency | 0 | 0 | |
Settlements | 0 | (190) | |
Other | 0 | 0 | |
Fair value of plan assets at end of year | 4,835 | 4,219 | 4,785 |
Net pension liability/(asset) recognized at end of year | 334 | 159 | |
Non-U.S. Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 1,930 | 3,464 | |
Service cost | 17 | 19 | 19 |
Interest cost | 51 | 67 | 66 |
Benefits paid | (122) | (126) | |
Actuarial losses/(gains) | 252 | (118) | |
Plan amendments | 0 | 14 | |
Currency | 59 | (175) | |
Settlements | 0 | (1,221) | |
Curtailments | 0 | (1) | 0 |
Special/contractual termination benefits | 4 | 7 | |
Other | (4) | 0 | |
Benefit obligation at end of year | 2,187 | 1,930 | 3,464 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 2,689 | 4,156 | |
Actual return on plan assets | 177 | 49 | |
Employer contributions | 19 | 57 | |
Benefits paid | (122) | (126) | |
Currency | 78 | (221) | |
Settlements | 0 | (1,221) | |
Other | 0 | (5) | |
Fair value of plan assets at end of year | 2,841 | 2,689 | $ 4,156 |
Net pension liability/(asset) recognized at end of year | $ 654 | $ 759 |
Postemployment Benefits Pensi_2
Postemployment Benefits Pension Plans - Amounts Recognized in Balance Sheet (Details) - Pension Plans - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Other non-current assets | $ 1,081 | $ 999 |
Other current liabilities | (4) | (4) |
Accrued postemployment costs | (89) | (77) |
Net asset/(liability) recognized | $ 988 | $ 918 |
Postemployment Benefits Pensi_3
Postemployment Benefits Pension Plans - Schedule of Accumulated Benefit Obligation in Excess of Fair Value of Plan Assets (Details) - Pension Plans - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 0 | $ 0 |
Accumulated benefit obligation | 0 | 0 |
Fair value of plan assets | 0 | 0 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 162 | 146 |
Accumulated benefit obligation | 156 | 139 |
Fair value of plan assets | $ 70 | $ 65 |
Postemployment Benefits Pensi_4
Postemployment Benefits Pension Plans - Schedule of Projected Benefit Obligation in Excess of Fair Value of Plan Assets (Details) - Pension Plans - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 0 | $ 0 |
Accumulated benefit obligation | 0 | 0 |
Fair value of plan assets | 0 | 0 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 162 | 148 |
Accumulated benefit obligation | 156 | 141 |
Fair value of plan assets | $ 70 | $ 67 |
Postemployment Benefits Pensi_5
Postemployment Benefits Pension Plans - Weighted Average Assumptions Used, Pension Benefit Obligation (Details) - Pension Plans | Dec. 28, 2019 | Dec. 29, 2018 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.40% | 4.40% |
Rate of compensation increase | 4.10% | 4.10% |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.00% | 2.90% |
Rate of compensation increase | 3.70% | 3.90% |
Postemployment Benefits Pensi_6
Postemployment Benefits Pension Plans - Net Cost/(Benefit) (Details) - Pension Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 7 | $ 10 | $ 11 |
Interest cost | 163 | 158 | 178 |
Expected return on plan assets | (229) | (247) | (262) |
Amortization of unrecognized losses/(gains) | 0 | 0 | 0 |
Settlements | 0 | (4) | 2 |
Curtailments | 0 | 0 | 0 |
Special/contractual termination benefits | 0 | 0 | 19 |
Other | 0 | 0 | 2 |
Net cost/(benefit) | (59) | (83) | (50) |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 17 | 19 | 19 |
Interest cost | 51 | 67 | 66 |
Expected return on plan assets | (143) | (175) | (180) |
Amortization of unrecognized losses/(gains) | 1 | 2 | 1 |
Settlements | 1 | 158 | 0 |
Curtailments | 0 | (1) | 0 |
Special/contractual termination benefits | 4 | 7 | 9 |
Other | 0 | 0 | (15) |
Net cost/(benefit) | $ (69) | $ 77 | $ (100) |
Postemployment Benefits Pensi_7
Postemployment Benefits Pension Plans - Weighted Average Assumptions Used, Net Pension Cost (Details) - Pension Plans | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - Service cost | 4.60% | 3.80% | 4.20% |
Discount rate - Interest cost | 4.10% | 3.60% | 3.60% |
Expected rate of return on plan assets | 5.70% | 5.50% | 5.70% |
Rate of compensation increase | 4.10% | 4.10% | 4.10% |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - Service cost | 3.30% | 3.00% | 3.20% |
Discount rate - Interest cost | 2.60% | 2.90% | 2.10% |
Expected rate of return on plan assets | 5.40% | 4.50% | 4.80% |
Rate of compensation increase | 3.90% | 3.90% | 4.00% |
Postemployment Benefits Pensi_8
Postemployment Benefits Pension Plans - Weighted Average Asset Allocation of Plan Assets (Details) - Pension Plans | Dec. 28, 2019 | Dec. 29, 2018 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 100.00% | 100.00% |
U.S. Plans | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 83.00% | 84.00% |
U.S. Plans | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 15.00% | 14.00% |
U.S. Plans | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 2.00% | 2.00% |
U.S. Plans | Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 0.00% | 0.00% |
U.S. Plans | Certain insurance contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 0.00% | 0.00% |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 100.00% | 100.00% |
Non-U.S. Plans | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 43.00% | 45.00% |
Non-U.S. Plans | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 39.00% | 34.00% |
Non-U.S. Plans | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 14.00% | 16.00% |
Non-U.S. Plans | Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 2.00% | 3.00% |
Non-U.S. Plans | Certain insurance contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 2.00% | 2.00% |
Postemployment Benefits Pensi_9
Postemployment Benefits Pension Plans - Fair Value of Plan Assets (Details) - Pension Plans - USD ($) | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | $ 7,676,000,000 | $ 6,908,000,000 | |
Cash collateral | 226,000,000 | 269,000,000 | |
Securities lending payable | 226,000,000 | 269,000,000 | |
Net impact on total plan assets at fair value | 0 | 0 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 97,000,000 | 132,000,000 | $ 1,245,000,000 |
Corporate bonds and other fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 3,642,000,000 | 3,089,000,000 | |
Corporate bonds and other fixed-income securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Corporate bonds and other fixed-income securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 3,639,000,000 | 3,089,000,000 | |
Corporate bonds and other fixed-income securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 3,000,000 | 0 | |
Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 358,000,000 | 366,000,000 | |
Government bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 358,000,000 | 366,000,000 | |
Government bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Government bonds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 4,000,000,000 | 3,455,000,000 | |
Fixed income securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 358,000,000 | 366,000,000 | |
Fixed income securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 3,639,000,000 | 3,089,000,000 | |
Fixed income securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 3,000,000 | 0 | |
Equity securities (other than mutual and pooled funds) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 775,000,000 | 665,000,000 | |
Equity securities (other than mutual and pooled funds) | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 775,000,000 | 665,000,000 | |
Equity securities (other than mutual and pooled funds) | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Equity securities (other than mutual and pooled funds) | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 414,000,000 | 422,000,000 | |
Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 413,000,000 | 419,000,000 | |
Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 1,000,000 | 3,000,000 | |
Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 45,000,000 | 79,000,000 | |
Real estate | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Real estate | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Real estate | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 45,000,000 | 79,000,000 | 262,000,000 |
Certain insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 49,000,000 | 53,000,000 | |
Certain insurance contracts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Certain insurance contracts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Certain insurance contracts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 49,000,000 | 53,000,000 | $ 983,000,000 |
Fair value excluding investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 5,283,000,000 | 4,674,000,000 | |
Fair value excluding investments measured at net asset value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 1,546,000,000 | 1,450,000,000 | |
Fair value excluding investments measured at net asset value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 3,640,000,000 | 3,092,000,000 | |
Fair value excluding investments measured at net asset value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 97,000,000 | 132,000,000 | |
Investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | $ 2,393,000,000 | $ 2,234,000,000 |
Postemployment Benefits Pens_10
Postemployment Benefits Pension Plans - Changes in Level 3 Plan Assets (Details) - Pension Plans - USD ($) $ in Millions | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 6,908 | |
Fair value of plan assets at end of year | 7,676 | $ 6,908 |
Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | 132 | 1,245 |
Additions | 0 | 0 |
Net realized gain/(loss) | 2 | (33) |
Net unrealized gain/(loss) | 3 | (10) |
Net purchases, issuances and settlements | (43) | (1,055) |
Transfers into/(out of) level 3 | 3 | (15) |
Fair value of plan assets at end of year | 97 | 132 |
Real estate | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | 79 | |
Fair value of plan assets at end of year | 45 | 79 |
Real estate | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | 79 | 262 |
Additions | 0 | 0 |
Net realized gain/(loss) | 2 | 49 |
Net unrealized gain/(loss) | 2 | (7) |
Net purchases, issuances and settlements | (38) | (210) |
Transfers into/(out of) level 3 | 0 | (15) |
Fair value of plan assets at end of year | 45 | 79 |
Corporate bonds and other fixed-income securities | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | 3,089 | |
Fair value of plan assets at end of year | 3,642 | 3,089 |
Corporate bonds and other fixed-income securities | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | |
Additions | 0 | |
Net realized gain/(loss) | 0 | |
Net unrealized gain/(loss) | 0 | |
Net purchases, issuances and settlements | 0 | |
Transfers into/(out of) level 3 | 3 | |
Fair value of plan assets at end of year | 3 | 0 |
Certain insurance contracts | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | 53 | |
Fair value of plan assets at end of year | 49 | 53 |
Certain insurance contracts | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | 53 | 983 |
Additions | 0 | 0 |
Net realized gain/(loss) | 0 | (82) |
Net unrealized gain/(loss) | 1 | (3) |
Net purchases, issuances and settlements | (5) | (845) |
Transfers into/(out of) level 3 | 0 | 0 |
Fair value of plan assets at end of year | $ 49 | $ 53 |
Postemployment Benefits Pens_11
Postemployment Benefits Pension Plans - Expected Future Benefit Payments (Details) - Pension Plans $ in Millions | Dec. 28, 2019USD ($) |
U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 343 |
2021 | 340 |
2022 | 331 |
2023 | 323 |
2024 | 314 |
2025-2029 | 1,364 |
Non-U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 75 |
2021 | 75 |
2022 | 80 |
2023 | 79 |
2024 | 80 |
2025-2029 | $ 438 |
Postemployment Benefits Postret
Postemployment Benefits Postretirement Benefit Plans - Changes in Accumulated Benefit Obligation, Fair Value of Plan Assets, and Funded Status (Details) - Postretirement Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 1,294 | $ 1,553 | |
Service cost | 6 | 8 | $ 10 |
Interest cost | 46 | 45 | 49 |
Benefits paid | (129) | (136) | |
Actuarial losses/(gains) | 94 | (142) | |
Plan amendments | (1) | (21) | |
Currency | 6 | (13) | |
Other | (3) | 0 | |
Benefit obligation at end of year | 1,313 | 1,294 | 1,553 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 1,044 | 1,188 | |
Actual return on plan assets | 187 | (26) | |
Employer contributions | 13 | 19 | 1,200 |
Benefits paid | (130) | (137) | |
Fair value of plan assets at end of year | 1,114 | 1,044 | $ 1,188 |
Net postretirement benefit liability/(asset) recognized at end of year | $ (199) | $ (250) |
Postemployment Benefits Postr_2
Postemployment Benefits Postretirement Benefit Plans - Amounts Recognized on Balance Sheet (Details) - Postretirement Plans - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Other current liabilities | $ (15) | $ (14) |
Accrued postemployment costs | (184) | (236) |
Net asset/(liability) recognized | $ (199) | $ (250) |
Postemployment Benefits Postr_3
Postemployment Benefits Postretirement Benefit Plans - Schedule of Accumulated Benefit Obligation in Excess of Fair Value of Plan Assets (Details) - Postretirement Plans - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 1,313 | $ 1,294 |
Fair value of plan assets | $ 1,114 | $ 1,044 |
Postemployment Benefits Postr_4
Postemployment Benefits Postretirement Benefit Plans - Weighted Average Assumptions Used, Postretirement Benefit Obligation (Details) - Postretirement Plans | Dec. 28, 2019 | Dec. 29, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.10% | 4.20% |
Health care cost trend rate assumed for next year | 6.50% | 6.70% |
Ultimate trend rate | 4.90% | 4.90% |
Postemployment Benefits Postr_5
Postemployment Benefits Postretirement Benefit Plans - Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Details) - Postretirement Plans $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Increase effect on annual service and interest cost | $ 3 |
Decrease on annual service and interest cost | (2) |
Increase effect on postretirement benefit obligation | 55 |
Decrease effect on postretirement benefit obligation | $ (47) |
Postemployment Benefits Postr_6
Postemployment Benefits Postretirement Benefit Plans - Net Cost/(Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of prior service costs/(credits) | $ (306) | $ (339) | $ (328) |
Postretirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 6 | 8 | 10 |
Interest cost | 46 | 45 | 49 |
Expected return on plan assets | (53) | (50) | 0 |
Amortization of prior service costs/(credits) | (306) | (311) | (328) |
Amortization of unrecognized losses/(gains) | (8) | 0 | 0 |
Curtailments | (5) | 0 | (177) |
Net cost/(benefit) | $ (320) | $ (308) | $ (446) |
Postemployment Benefits Postr_7
Postemployment Benefits Postretirement Benefit Plans - Weighted Average Assumptions Used, Net Postretirement Cost (Details) - Postretirement Plans | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - Service cost | 4.20% | 3.60% | 4.00% |
Discount rate - Interest cost | 3.80% | 3.00% | 3.00% |
Expected rate of return on plan assets | 5.40% | 4.40% | 0.00% |
Health care cost trend rate | 6.50% | 6.70% | 6.30% |
Postemployment Benefits Postr_8
Postemployment Benefits Postretirement Benefit Plans - Weighted Average Asset Allocation of Plan Assets (Details) - Postretirement Plans | Dec. 28, 2019 | Dec. 29, 2018 |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 65.00% | 65.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 31.00% | 27.00% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 4.00% | 8.00% |
Postemployment Benefits Postr_9
Postemployment Benefits Postretirement Benefit Plans - Fair Value of Plan Assets (Details) - Postretirement Plans - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | $ 1,114 | $ 1,044 | $ 1,188 |
Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 33 | 26 | |
Government bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 33 | 26 | |
Government bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Government bonds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Corporate bonds and other fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 592 | 567 | |
Corporate bonds and other fixed-income securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Corporate bonds and other fixed-income securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 592 | 567 | |
Corporate bonds and other fixed-income securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 625 | 593 | |
Fixed income securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 33 | 26 | |
Fixed income securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 592 | 567 | |
Fixed income securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Equity securities (other than mutual and pooled funds) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 188 | 146 | |
Equity securities (other than mutual and pooled funds) | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 188 | 146 | |
Equity securities (other than mutual and pooled funds) | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Equity securities (other than mutual and pooled funds) | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Fair value excluding investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 813 | 739 | |
Fair value excluding investments measured at net asset value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 221 | 172 | |
Fair value excluding investments measured at net asset value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 592 | 567 | |
Fair value excluding investments measured at net asset value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | $ 301 | $ 305 |
Postemployment Benefits Post_10
Postemployment Benefits Postretirement Benefit Plans - Expected Future Benefit Payments (Details) - Postretirement Plans $ in Millions | Dec. 28, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 125 |
2021 | 114 |
2022 | 114 |
2023 | 107 |
2024 | 101 |
2025-2029 | $ 413 |
Postemployment Benefits Post_11
Postemployment Benefits Postretirement Benefit Plans - Benefit Balances in Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial gain/(loss) | $ 283 | $ 352 |
Prior service credit/(cost) | 139 | 444 |
Pension and postretirement benefit plans, accumulated other comprehensive income/(loss), before tax | (422) | (796) |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial gain/(loss) | 74 | 175 |
Prior service credit/(cost) | (14) | (14) |
Pension and postretirement benefit plans, accumulated other comprehensive income/(loss), before tax | (60) | (161) |
Postretirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial gain/(loss) | 209 | 177 |
Prior service credit/(cost) | 153 | 458 |
Pension and postretirement benefit plans, accumulated other comprehensive income/(loss), before tax | $ (362) | $ (635) |
Postemployment Benefits Post_12
Postemployment Benefits Postretirement Benefit Plans - Benefits Recognized Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net postemployment benefit gains/(losses), before tax | $ (61) | $ 80 | $ 141 |
Net postemployment benefit gains/(losses), tax | (5) | (19) | (55) |
Net postemployment benefit gains/(losses), after tax | (66) | 61 | 86 |
Losses/(gains) on postemployment benefits before income taxes | (312) | (156) | (502) |
Reclassification of net postemployment benefit losses/(gains), tax | 78 | 38 | 193 |
Net postemployment benefit losses/(gains) reclassified to net income, after tax | (234) | (118) | (309) |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial gains/(losses) arising during the period, before tax | (103) | 8 | 45 |
Prior service credits/(costs) arising during the period, before tax | 0 | (15) | 1 |
Amortization of unrecognized losses/(gains) | 1 | 2 | 1 |
Settlement and curtailment losses/(gains) | 1 | 153 | 2 |
Postretirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial gains/(losses) arising during the period, before tax | 41 | 66 | 71 |
Prior service credits/(costs) arising during the period, before tax | 1 | 21 | 24 |
Amortization of unrecognized losses/(gains) | (8) | 0 | 0 |
Amortization of prior service costs/(credits) | (306) | (311) | (328) |
Settlement and curtailment losses/(gains) | (1) | 0 | (177) |
Other comprehensive income (loss), defined benefit plan, other losses (gains) on postemployment benefits, before tax | $ 1 | $ 0 | $ 0 |
Financial Instruments Schedule
Financial Instruments Schedule of Notional Values of Outstanding Derivatives (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Commodity contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 475 | $ 478 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 3,045 | 3,263 |
Cross-currency contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 4,035 | $ 10,146 |
Financial Instruments Schedul_2
Financial Instruments Schedule of Derivative Fair Values (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | $ 255 | $ 757 |
Derivative liability, fair value, gross liability | 119 | 219 |
Foreign exchange contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 7 | 51 |
Derivative liability, fair value, gross liability | 20 | 26 |
Foreign exchange contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 6 | 5 |
Derivative liability, fair value, gross liability | 3 | 42 |
Cross-currency contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 200 | 139 |
Derivative liability, fair value, gross liability | 88 | 3 |
Cross-currency contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 557 | |
Derivative liability, fair value, gross liability | 119 | |
Commodity contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 42 | 5 |
Derivative liability, fair value, gross liability | 8 | 29 |
Level 1 | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 42 | 5 |
Derivative liability, fair value, gross liability | 6 | 27 |
Level 1 | Foreign exchange contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 0 | 0 |
Derivative liability, fair value, gross liability | 0 | 0 |
Level 1 | Foreign exchange contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 0 | 0 |
Derivative liability, fair value, gross liability | 0 | 0 |
Level 1 | Cross-currency contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 0 | 0 |
Derivative liability, fair value, gross liability | 0 | 0 |
Level 1 | Cross-currency contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 0 | |
Derivative liability, fair value, gross liability | 0 | |
Level 1 | Commodity contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 42 | 5 |
Derivative liability, fair value, gross liability | 6 | 27 |
Level 2 | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 213 | 752 |
Derivative liability, fair value, gross liability | 113 | 192 |
Level 2 | Foreign exchange contracts | Other current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 12 | |
Level 2 | Foreign exchange contracts | Other non-current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 1 | |
Level 2 | Foreign exchange contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 7 | 51 |
Derivative liability, fair value, gross liability | 20 | 26 |
Level 2 | Foreign exchange contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 6 | 5 |
Derivative liability, fair value, gross liability | 3 | 42 |
Level 2 | Cross-currency contracts | Other current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 557 | |
Level 2 | Cross-currency contracts | Other non-current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 139 | |
Level 2 | Cross-currency contracts | Other current liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | 119 | |
Level 2 | Cross-currency contracts | Other non-current liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | 3 | |
Level 2 | Cross-currency contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 200 | 139 |
Derivative liability, fair value, gross liability | 88 | 3 |
Level 2 | Cross-currency contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 557 | |
Derivative liability, fair value, gross liability | 119 | |
Level 2 | Commodity contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 0 | 0 |
Derivative liability, fair value, gross liability | $ 2 | $ 2 |
Financial Instruments Additiona
Financial Instruments Additional Information (Details) € in Millions, ¥ in Millions, £ in Millions, $ in Millions, $ in Billions | 3 Months Ended | 12 Months Ended | ||||||
Mar. 30, 2019USD ($) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 28, 2019CAD ($) | Dec. 28, 2019GBP (£) | Dec. 28, 2019JPY (¥) | Dec. 28, 2019EUR (€) | |
Derivative [Line Items] | ||||||||
Derivative, collateral, obligation to return cash | $ 108 | $ 124 | ||||||
Collateral posted related to commodity derivative margin requirements, liability | 25 | |||||||
Collateral posted related to commodity derivative margin requirements, asset | 32 | |||||||
Derivative, collateral, right to reclaim cash | 108 | 124 | ||||||
Unrealized losses on foreign currency cash flow hedges | $ 12 | |||||||
Cross-currency contracts | ||||||||
Derivative [Line Items] | ||||||||
Maximum length of time hedged in cash flow hedge | 4 years | |||||||
Foreign exchange contracts | ||||||||
Derivative [Line Items] | ||||||||
Maximum length of time hedged in cash flow hedge | 25 months | |||||||
Foreign exchange contracts | Net Investment Hedging | Heinz India | ||||||||
Derivative [Line Items] | ||||||||
Gains/(losses) recognized in other comprehensive income (loss) on net investment hedges, before tax | 10 | |||||||
Foreign exchange contracts | Cash Flow Hedging | Heinz India | ||||||||
Derivative [Line Items] | ||||||||
Net gains/(losses) on derivatives, reclassified to net income | $ (5) | 20 | ||||||
Designated as hedging instrument | Debt | Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Non-derivative instruments, loss (gain) recognized in other comprehensive income (loss), net | $ (52) | (174) | $ 425 | |||||
Designated as hedging instrument | Debt | Euro Member Countries, Euro | Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Derivative, amount of hedged item | € | € 2,550 | |||||||
Designated as hedging instrument | Debt | United Kingdom, Pounds | Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Derivative, amount of hedged item | £ | £ 400 | |||||||
Designated as hedging instrument | Cross-currency contracts | United Kingdom, Pounds | Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Derivative asset, notional amount | 1,400 | £ 1,000 | ||||||
Designated as hedging instrument | Cross-currency contracts | Canada, Dollars | Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Derivative asset, notional amount | 1,600 | $ 2.1 | ||||||
Designated as hedging instrument | Cross-currency contracts | Japan, Yen | Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Derivative asset, notional amount | 85 | ¥ 9,600 | ||||||
Designated as hedging instrument | Foreign exchange contracts | China, Yuan Renminbi | Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Derivative liability, notional amount | 162 | |||||||
Designated as hedging instrument | Other contract | Euro Member Countries, Euro | Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Derivative liability, notional amount | ¥ | ¥ 76 | |||||||
Other expense/(income) | ||||||||
Derivative [Line Items] | ||||||||
Net gains/(losses) on derivatives, reclassified to net income | (33) | 27 | 29 | |||||
Other expense/(income) | Cross-currency contracts | Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Gains/(losses) recognized in other comprehensive income (loss) on net investment hedges, before tax | 67 | (214) | 184 | |||||
Other expense/(income) | Foreign exchange contracts | Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Gains/(losses) recognized in other comprehensive income (loss) on net investment hedges, before tax | (13) | 11 | 23 | |||||
Other expense/(income) | Foreign exchange contracts | Net Investment Hedging | Heinz India | ||||||||
Derivative [Line Items] | ||||||||
Net gains/(losses) on derivatives, reclassified to net income | 6 | |||||||
Other expense/(income) | Foreign exchange contracts | Cash Flow Hedging | Heinz India | ||||||||
Derivative [Line Items] | ||||||||
Net gains/(losses) on derivatives, reclassified to net income | (6) | 17 | ||||||
Other expense/(income) | Designated as hedging instrument | Cross-currency contracts | Cash Flow Hedging | ||||||||
Derivative [Line Items] | ||||||||
Net gains/(losses) on derivatives, reclassified to net income | (23) | 7 | ||||||
Other expense/(income) | Designated as hedging instrument | Foreign exchange contracts | Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Net gains/(losses) on derivatives, reclassified to net income | 6 | 0 | ||||||
Other expense/(income) | Designated as hedging instrument | Foreign exchange contracts | Cash Flow Hedging | ||||||||
Derivative [Line Items] | ||||||||
Net gains/(losses) on derivatives, reclassified to net income | 22 | (56) | 81 | |||||
Interest expense | ||||||||
Derivative [Line Items] | ||||||||
Net gains/(losses) on derivatives, reclassified to net income | (25) | (6) | 4 | |||||
Interest expense | Foreign exchange contracts | Net Investment Hedging | Heinz India | ||||||||
Derivative [Line Items] | ||||||||
Net gains/(losses) on derivatives, reclassified to net income | $ 1 | 3 | ||||||
Interest expense | Designated as hedging instrument | Cross-currency contracts | Cash Flow Hedging | ||||||||
Derivative [Line Items] | ||||||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | ||||||
Interest expense | Designated as hedging instrument | Foreign exchange contracts | Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | ||||||
Interest expense | Designated as hedging instrument | Foreign exchange contracts | Cash Flow Hedging | ||||||||
Derivative [Line Items] | ||||||||
Net gains/(losses) on derivatives, reclassified to net income | $ 0 | $ 0 | $ 0 |
Financial Instruments Derivativ
Financial Instruments Derivative Impact on Statements of Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Derivative [Line Items] | |||
Other comprehensive income (loss), derivatives, gain (loss), before reclassification and tax | $ (11) | $ 331 | $ (330) |
Cash Flow Hedging | Net sales | Foreign exchange contracts | |||
Derivative [Line Items] | |||
Gains/(losses) recognized in other comprehensive income (loss) on cash flow hedges, before tax | 0 | 0 | 1 |
Cash Flow Hedging | Cost of products sold | Foreign exchange contracts | |||
Derivative [Line Items] | |||
Gains/(losses) recognized in other comprehensive income (loss) on cash flow hedges, before tax | (36) | 64 | (42) |
Amounts excluded from the effectiveness assessment of cash flow hedges, before tax | 2 | (2) | 0 |
Cash Flow Hedging | Other expense/(income) | Foreign exchange contracts | |||
Derivative [Line Items] | |||
Gains/(losses) recognized in other comprehensive income (loss) on cash flow hedges, before tax | (23) | 56 | (82) |
Amounts excluded from the effectiveness assessment of cash flow hedges, before tax | 0 | 3 | 0 |
Cash Flow Hedging | Other expense/(income) | Cross-currency contracts | |||
Derivative [Line Items] | |||
Gains/(losses) recognized in other comprehensive income (loss) on cash flow hedges, before tax | 43 | (4) | 0 |
Amounts excluded from the effectiveness assessment of cash flow hedges, before tax | 28 | 1 | 0 |
Net Investment Hedging | Other expense/(income) | Foreign exchange contracts | |||
Derivative [Line Items] | |||
Gains/(losses) recognized in other comprehensive income (loss) on net investment hedges, before tax | 13 | (11) | (23) |
Net Investment Hedging | Other expense/(income) | Cross-currency contracts | |||
Derivative [Line Items] | |||
Gains/(losses) recognized in other comprehensive income (loss) on net investment hedges, before tax | (67) | 214 | (184) |
Net Investment Hedging | Interest expense | Foreign exchange contracts | |||
Derivative [Line Items] | |||
Amounts excluded from the effectiveness assessment of net investment hedges, before tax | (1) | (3) | 0 |
Net Investment Hedging | Interest expense | Cross-currency contracts | |||
Derivative [Line Items] | |||
Amounts excluded from the effectiveness assessment of net investment hedges, before tax | $ 30 | $ 13 | $ 0 |
Financial Instruments Derivat_2
Financial Instruments Derivative Impact on Statements of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Total amounts presented in the consolidated statements of income in which the following effects were recorded | |||
Cost of products sold | $ 16,830 | $ 17,347 | $ 17,043 |
Interest expense | 1,361 | 1,284 | 1,234 |
Other expense/(income) | (952) | (168) | (627) |
Cost of products sold | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 66 | (48) | (37) |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 66 | (48) | (37) |
Interest expense | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 25 | 6 | (4) |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 25 | 6 | (4) |
Other expense/(income) | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 33 | (27) | (29) |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 33 | (27) | (29) |
Not designated as hedging instrument | Cost of products sold | Foreign exchange contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Not designated as hedging instrument | Cost of products sold | Cross-currency contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Not designated as hedging instrument | Cost of products sold | Commodity contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 43 | (44) | (37) |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 43 | (44) | (37) |
Not designated as hedging instrument | Interest expense | Foreign exchange contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Not designated as hedging instrument | Interest expense | Cross-currency contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Not designated as hedging instrument | Interest expense | Commodity contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Not designated as hedging instrument | Other expense/(income) | Foreign exchange contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (1) | (84) | 54 |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (1) | (84) | 54 |
Not designated as hedging instrument | Other expense/(income) | Cross-currency contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 11 | 4 | (2) |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 11 | 4 | (2) |
Not designated as hedging instrument | Other expense/(income) | Commodity contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Cash Flow Hedging | Designated as hedging instrument | Cost of products sold | Foreign exchange contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 23 | (2) | 0 |
Net gains/(losses) on derivatives, excluded component, reclassified to net income | 0 | (2) | |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 23 | (2) | 0 |
Cash Flow Hedging | Designated as hedging instrument | Cost of products sold | Interest rate contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Cash Flow Hedging | Designated as hedging instrument | Cost of products sold | Cross-currency contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | |
Net gains/(losses) on derivatives, excluded component, reclassified to net income | 0 | 0 | |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | |
Cash Flow Hedging | Designated as hedging instrument | Interest expense | Foreign exchange contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Net gains/(losses) on derivatives, excluded component, reclassified to net income | 0 | 0 | |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Cash Flow Hedging | Designated as hedging instrument | Interest expense | Interest rate contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (4) | (4) | (4) |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (4) | (4) | (4) |
Cash Flow Hedging | Designated as hedging instrument | Interest expense | Cross-currency contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | |
Net gains/(losses) on derivatives, excluded component, reclassified to net income | 0 | 0 | |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | |
Cash Flow Hedging | Designated as hedging instrument | Other expense/(income) | Foreign exchange contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (22) | 56 | (81) |
Net gains/(losses) on derivatives, excluded component, reclassified to net income | 0 | 3 | |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (22) | 56 | (81) |
Cash Flow Hedging | Designated as hedging instrument | Other expense/(income) | Interest rate contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | $ 0 |
Cash Flow Hedging | Designated as hedging instrument | Other expense/(income) | Cross-currency contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 23 | (7) | |
Net gains/(losses) on derivatives, excluded component, reclassified to net income | 28 | 1 | |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 23 | (7) | |
Net Investment Hedging | Designated as hedging instrument | Cost of products sold | Foreign exchange contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | |
Net gains/(losses) on derivatives, excluded component, reclassified to net income | 0 | 0 | |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | |
Net Investment Hedging | Designated as hedging instrument | Cost of products sold | Cross-currency contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, excluded component, reclassified to net income | 0 | 0 | |
Net Investment Hedging | Designated as hedging instrument | Interest expense | Foreign exchange contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | |
Net gains/(losses) on derivatives, excluded component, reclassified to net income | (1) | (3) | |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | |
Net Investment Hedging | Designated as hedging instrument | Interest expense | Cross-currency contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, excluded component, reclassified to net income | 30 | 13 | |
Net Investment Hedging | Designated as hedging instrument | Other expense/(income) | Foreign exchange contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (6) | 0 | |
Net gains/(losses) on derivatives, excluded component, reclassified to net income | 0 | 0 | |
Derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (6) | 0 | |
Net Investment Hedging | Designated as hedging instrument | Other expense/(income) | Cross-currency contracts | |||
Derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, excluded component, reclassified to net income | $ 0 | $ 0 |
Components of and Changes in Ac
Components of and Changes in Accumulated Other Comprehensive Income/(Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 51,657 | ||
Cumulative effect of accounting standards adopted in the period | 136 | ||
Total other comprehensive income/(loss) | 57 | $ (889) | $ 575 |
Ending balance | 51,623 | 51,657 | |
Foreign Currency Translation Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (2,476) | (1,587) | (2,413) |
Other comprehensive income/(loss) before reclassifications | 239 | (1,173) | 1,179 |
Total other comprehensive income/(loss) | 246 | (889) | 826 |
Ending balance | (2,230) | (2,476) | (1,587) |
Net investment hedge adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive income/(loss) before reclassifications | 1 | 284 | (353) |
Reclassifications from AOCI | (16) | (7) | 0 |
Amounts excluded from effectiveness assessment | 22 | 7 | 0 |
Net Postemployment Benefit Plan Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 492 | 549 | 772 |
Other comprehensive income/(loss) before reclassifications | (69) | 61 | 86 |
Reclassifications from AOCI | (234) | (118) | (309) |
Cumulative effect of accounting standards adopted in the period | 114 | ||
Total other comprehensive income/(loss) | (189) | (57) | (223) |
Ending balance | 303 | 492 | 549 |
Net cash flow hedge adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 41 | (16) | 12 |
Other comprehensive income/(loss) before reclassifications | (10) | 99 | (113) |
Reclassifications from AOCI | (41) | (44) | 85 |
Amounts excluded from effectiveness assessment | 29 | 2 | 0 |
Cumulative effect of accounting standards adopted in the period | 22 | ||
Total other comprehensive income/(loss) | 0 | 57 | (28) |
Ending balance | 41 | 41 | (16) |
AOCI Attributable to Parent | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1,943) | (1,054) | (1,629) |
Ending balance | $ (1,886) | $ (1,943) | $ (1,054) |
Gross Amount and Related Tax Be
Gross Amount and Related Tax Benefit/(Expense) Recorded in and Associated with each Component of Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Foreign Currency Translation Adjustments | |||
OCI Before Reclassifications | |||
Before Tax Amount | $ 239 | $ (1,173) | $ 1,179 |
Tax | 0 | 0 | 0 |
Net of Tax Amount | 239 | (1,173) | 1,179 |
Net investment hedge adjustments | |||
OCI Before Reclassifications | |||
Before Tax Amount | (2) | 377 | (632) |
Tax | 3 | (93) | 279 |
Net of Tax Amount | 1 | 284 | (353) |
Amounts Excluded from Effectiveness Assessment | |||
Before Tax Amount | 29 | 10 | 0 |
Tax | (7) | (3) | 0 |
Net of Tax Amount | 22 | 7 | 0 |
Reclassifications | |||
Before Tax Amount | (23) | (10) | 0 |
Tax | 7 | 3 | 0 |
Net of Tax Amount | (16) | (7) | 0 |
Net cash flow hedge adjustments | |||
OCI Before Reclassifications | |||
Before Tax Amount | (16) | 116 | (123) |
Tax | 6 | (17) | 10 |
Net of Tax Amount | (10) | 99 | (113) |
Amounts Excluded from Effectiveness Assessment | |||
Before Tax Amount | 30 | 2 | 0 |
Tax | (1) | 0 | 0 |
Net of Tax Amount | 29 | 2 | 0 |
Reclassifications | |||
Before Tax Amount | (48) | (45) | 85 |
Tax | 7 | 1 | 0 |
Net of Tax Amount | (41) | (44) | 85 |
Amortization of unrecognized losses/(gains)(e) | |||
OCI Before Reclassifications | |||
Before Tax Amount | (65) | 74 | 116 |
Tax | (5) | (16) | (47) |
Net of Tax Amount | (70) | 58 | 69 |
Amortization of prior service costs/(credits)(e) | |||
OCI Before Reclassifications | |||
Before Tax Amount | 1 | 6 | 25 |
Tax | 0 | (3) | (8) |
Net of Tax Amount | 1 | 3 | 17 |
Net Postemployment Benefit Plan Adjustments | |||
OCI Before Reclassifications | |||
Net of Tax Amount | (69) | 61 | 86 |
Reclassifications | |||
Before Tax Amount | (312) | (156) | (502) |
Tax | 78 | 38 | 193 |
Net of Tax Amount | $ (234) | $ (118) | $ (309) |
Amounts Reclassified from Accum
Amounts Reclassified from Accumulated Other Comprehensive Income/(Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||||||||||
Other expense/(income) | $ (952) | $ (168) | $ (627) | ||||||||
Interest expense | 1,361 | 1,284 | 1,234 | ||||||||
Cost of products sold | 16,830 | 17,347 | 17,043 | ||||||||
Income/(loss) before income taxes | (2,661) | 11,321 | (5,450) | ||||||||
Provision for/(benefit from) income taxes | 728 | (1,067) | (5,482) | ||||||||
Net income/(loss) | $ (183) | $ (898) | $ (448) | $ (404) | $ 12,628 | $ (618) | $ (753) | $ (1,003) | (1,933) | 10,254 | (10,932) |
Reclassification out of Accumulated Other Comprehensive Income | Net investment hedge adjustments | Foreign exchange contracts | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||||||||||
Other expense/(income) | 6 | 0 | 0 | ||||||||
Interest expense | 1 | 3 | 0 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net investment hedge adjustments | Cross-currency contracts | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||||||||||
Interest expense | (30) | (13) | 0 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net cash flow hedge adjustments | Foreign exchange contracts | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||||||||||
Other expense/(income) | 22 | (59) | 81 | ||||||||
Cost of products sold | (23) | 4 | 0 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net cash flow hedge adjustments | Cross-currency contracts | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||||||||||
Other expense/(income) | (51) | 6 | 0 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net cash flow hedge adjustments | Interest rate contracts | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||||||||||
Interest expense | 4 | 4 | 4 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Hedge adjustments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||||||||||
Income/(loss) before income taxes | (71) | (55) | 85 | ||||||||
Provision for/(benefit from) income taxes | 14 | 4 | 0 | ||||||||
Net income/(loss) | (57) | (51) | 85 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net Postemployment Benefit Plan Adjustments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||||||||||
Income/(loss) before income taxes | (312) | (156) | (502) | ||||||||
Provision for/(benefit from) income taxes | 78 | 38 | 193 | ||||||||
Net income/(loss) | (234) | (118) | (309) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Amortization of unrecognized losses/(gains)(e) | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||||||||||
Other expense/(income) | (7) | 2 | 1 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service costs/(credits)(e) | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||||||||||
Other expense/(income) | (306) | (311) | (328) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Settlement and curtailment losses/(gains)(e) | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||||||||||
Other expense/(income) | 0 | 153 | (175) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Other losses/(gains) on postemployment benefits | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||||||||||
Other expense/(income) | $ 1 | $ 0 | $ 0 |
Venezuela - Foreign Currency _2
Venezuela - Foreign Currency and Inflation Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019USD ($)VES / $ | Dec. 29, 2018USD ($)VES / $ | Dec. 30, 2017USD ($)VES / $ | |
Foreign Currency [Line Items] | |||
Nonmonetary currency devaluation losses | $ | $ 10 | $ 146 | $ 36 |
Venezuelan BsS on Banco Central de Venezuela market, period end spot | |||
Foreign Currency [Line Items] | |||
Foreign currency exchange rate, translation, soberano | 45,874.81 | 638.18 | |
Venezuelan BsS on Banco Central de Venezuela market, year-to-date average | |||
Foreign Currency [Line Items] | |||
Foreign currency exchange rate, weighted average, translation, soberano | 13,955.68 | 25.06 | 0.02 |
Financing Arrangements Addition
Financing Arrangements Additional Information (Details) - USD ($) | Dec. 28, 2019 | Dec. 29, 2018 |
Transfers and Servicing [Abstract] | ||
Other liabilities, structured payables, current | $ 253,000,000 | $ 267,000,000 |
Receivables derecognized under accounts receivable factoring programs | $ 0 | $ 0 |
Class Actions and Stockholder D
Class Actions and Stockholder Derivative Actions (Details) | Jan. 06, 2020lawsuit | Mar. 19, 2019lawsuit | May 23, 2019lawsuit | May 13, 2019lawsuit | Apr. 25, 2019officerlawsuit | Feb. 07, 2020lawsuit | Mar. 15, 2019officer | Feb. 26, 2019officer | Feb. 24, 2019officer |
Securities Class Actions | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of class action lawsuits | 3 | ||||||||
Hedick Action | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of officers included in lawsuit | officer | 3 | ||||||||
Iron Workers Action | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of officers included in lawsuit | officer | 6 | ||||||||
Timber Hill Action | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of officers and directors included in lawsuit | officer | 7 | ||||||||
Walling Action | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of officers included in lawsuit | officer | 6 | ||||||||
Osborne v. Employee Benefits Administration Board of Kraft Heinz | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of class action lawsuits | 1 | ||||||||
Stockholder Derivative Actions, One | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of class action lawsuits | 3 | ||||||||
Stockholder Derivative Actions, Two | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of class action lawsuits | 2 | ||||||||
Subsequent event | Consolidated Securities Class Action | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of class action lawsuits | 1 | ||||||||
Subsequent event | Stockholder Derivative Actions, One | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of class action lawsuits | 6 |
Commitments and Contingencies S
Commitments and Contingencies Schedule of Future Take-or-Pay Purchase Obligations (Details) $ in Millions | Dec. 28, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 1,324 |
2021 | 590 |
2022 | 448 |
2023 | 306 |
2024 | 187 |
Thereafter | 89 |
Total | $ 2,944 |
Debt Debt - Borrowing Arragemen
Debt Debt - Borrowing Arragements Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 4,000,000,000 | |||
Amount drawn on revolving credit facility | 0 | $ 0 | ||
Proceeds on revolving credit facility | 0 | 0 | $ 0 | |
Revolving credit facility sub-limit for borrowings in alternative currencies | 1,000,000,000 | |||
Revolving credit facility letter of credit sub-facility maximum borrowing capacity | 300,000,000 | |||
Maximum possible increase in the amount of revolving commitments and/or term loans | 1,000,000,000 | |||
Minimum shareholder's equity required to maintain excluding accumulated other comprehensive income/(losses) | 35,000,000,000 | |||
Repayments of long-term debt | 4,795,000,000 | 2,713,000,000 | $ 2,641,000,000 | |
Commercial paper outstanding | 0 | 0 | ||
Commercial paper | ||||
Line of Credit Facility [Line Items] | ||||
Commerical paper, maximum amount outstanding during period | 200,000,000 | |||
Euro equivalent swing-line facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 400,000,000 | |||
Senior unsecured term loan facility floating rate (LIBOR plus 1.250 percent), due July 6, 2022 | ||||
Line of Credit Facility [Line Items] | ||||
Repayments of long-term debt | $ 600,000,000 | |||
Long-term debt, principal amount | $ 0 | $ 0 | ||
LIBOR, EURIBOR and CDOR rates | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis points spread on variable rate for revolving credit facility | 8750.00% | |||
LIBOR, EURIBOR and CDOR rates | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis points spread on variable rate for revolving credit facility | 17500.00% | |||
base and Canadian prime rates | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis points spread on variable rate for revolving credit facility | 0.00% | |||
base and Canadian prime rates | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis points spread on variable rate for revolving credit facility | 7500.00% |
Debt Schedule of Long-term Debt
Debt Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Debt Instrument [Line Items] | ||
Capital lease obligations | $ 187 | $ 199 |
Total long-term debt | 29,238 | 31,147 |
Current portion of long-term debt | 1,022 | 377 |
Long-term debt | 28,216 | 30,770 |
U.S. dollar notes - 2025 Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | $ 971 | 1,193 |
Long-term debt, interest rate | 4.875% | |
Other U.S. dollar notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | $ 24,127 | 25,551 |
Other U.S. dollar notes | Minimum | ||
Debt Instrument [Line Items] | ||
Long-term debt, interest rate | 2.471% | |
Other U.S. dollar notes | Maximum | ||
Debt Instrument [Line Items] | ||
Long-term debt, interest rate | 7.125% | |
Euro notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | $ 2,834 | 2,899 |
Euro notes | Minimum | ||
Debt Instrument [Line Items] | ||
Long-term debt, interest rate | 1.50% | |
Euro notes | Maximum | ||
Debt Instrument [Line Items] | ||
Long-term debt, interest rate | 2.25% | |
Three point zero two zero percent Canadian dollar senior notes due July 6, 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | $ 382 | |
Long-term debt, interest rate | 3.02% | |
Canadian dollar notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | 586 | |
British pound sterling notes - 2030 Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | $ 170 | 165 |
Long-term debt, interest rate | 6.25% | |
Other British pound sterling notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | $ 519 | 504 |
Long-term debt, interest rate | 4.125% | |
Other long-term debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | $ 48 | $ 50 |
Other long-term debt | Minimum | ||
Debt Instrument [Line Items] | ||
Long-term debt, interest rate | 0.50% | |
Other long-term debt | Maximum | ||
Debt Instrument [Line Items] | ||
Long-term debt, interest rate | 5.50% |
Debt Schedule of Maturities of
Debt Schedule of Maturities of Long-term Debt (Details) $ in Millions | Dec. 28, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 995 |
2021 | 990 |
2022 | 2,073 |
2023 | 1,678 |
2024 | 617 |
Thereafter | $ 22,460 |
Debt Debt - Long-term Debt Info
Debt Debt - Long-term Debt Information (Details) $ in Millions, $ in Millions | Feb. 10, 2020USD ($) | Dec. 28, 2019USD ($) | Dec. 28, 2019CAD ($) | Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($) | Jul. 01, 2017USD ($) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 28, 2019CAD ($) | Sep. 28, 2019CAD ($) | Sep. 25, 2019USD ($) | Sep. 11, 2019USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2017USD ($) |
Debt Instrument [Line Items] | |||||||||||||||
Maximum combined aggregate purchase price, Tender Offer | $ 2,500 | ||||||||||||||
Loss on extinguishment of debt | $ 10 | $ 88 | |||||||||||||
Write off of Deferred Debt Issuance Cost | 2 | 5 | |||||||||||||
Debt prepayment and extinguishment costs | 8 | 91 | $ 99 | $ 0 | $ 0 | ||||||||||
Unamortized premiums | 10 | ||||||||||||||
Unamortized debt issuance costs | 119 | 119 | 115 | ||||||||||||
Unamortized discounts | $ 2 | ||||||||||||||
Cash outflows to unwind U.S. securitization program | 500 | ||||||||||||||
Debt issuance costs | 25 | 25 | 15 | ||||||||||||
Amortization of debt issuance costs | 15 | 16 | 16 | ||||||||||||
Unamortized debt premium, net | 358 | 358 | 430 | ||||||||||||
Amortization of debt premium, net | 34 | 65 | 81 | ||||||||||||
Repayments of long-term debt | 4,795 | 2,713 | 2,641 | ||||||||||||
Fair value of total debt | 31,100 | 31,100 | 30,100 | ||||||||||||
Carrying value of total debt | 29,200 | 29,200 | $ 31,200 | ||||||||||||
Five point three seven five percent senior notes due 2020 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate percentage on issued long-term debt | 5.375% | 5.375% | |||||||||||||
Three point five zero zero percent senior notes due June 2022 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate percentage on issued long-term debt | 3.50% | 3.50% | |||||||||||||
Long-term debt, principal amount | $ 1,119 | $ 2,000 | |||||||||||||
Early repayment of senior debt | $ 881 | ||||||||||||||
Three point five zero zero percent senior notes due July 2022 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate percentage on issued long-term debt | 3.50% | 3.50% | |||||||||||||
Long-term debt, principal amount | $ 446 | 1,000 | |||||||||||||
Early repayment of senior debt | $ 554 | ||||||||||||||
Four point zero zero zero percent senior notes due 2023 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate percentage on issued long-term debt | 4.00% | 4.00% | 4.00% | ||||||||||||
Long-term debt, principal amount | $ 838 | 1,600 | $ 1,600 | ||||||||||||
Early repayment of senior debt | $ 762 | ||||||||||||||
Four point eight seven five percent second lien senior secured notes due 2025 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate percentage on issued long-term debt | 4.875% | 4.875% | |||||||||||||
Long-term debt, principal amount | $ 976 | $ 1,200 | |||||||||||||
Early repayment of senior debt | $ 224 | ||||||||||||||
Two point seven zero zero percent Canadian dollar senior notes due 2020 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate percentage on issued long-term debt | 2.70% | 2.70% | |||||||||||||
Long-term debt, principal amount | $ 0 | $ 300 | |||||||||||||
Early repayment of senior debt | $ 300 | ||||||||||||||
Two point eight zero zero percent senior notes due 2020 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate percentage on issued long-term debt | 2.80% | 2.80% | |||||||||||||
Long-term debt, principal amount | 200 | $ 1,500 | $ 200 | ||||||||||||
Early repayment of senior debt | 1,300 | ||||||||||||||
Two point eight zero zero percent senior notes due 2020 | First debt redemption | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Early repayment of senior debt | 800 | ||||||||||||||
Two point eight zero zero percent senior notes due 2020 | Second debt redemption | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Early repayment of senior debt | $ 500 | ||||||||||||||
Three point seven five zero percent senior notes due 2030 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate percentage on issued long-term debt | 3.75% | 3.75% | |||||||||||||
Long-term debt, principal amount | $ 1,000 | ||||||||||||||
Four point six two five percent senior notes due 2039 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate percentage on issued long-term debt | 4.625% | 4.625% | |||||||||||||
Long-term debt, principal amount | $ 500 | ||||||||||||||
Four point eight seven five percent senior notes due 2049 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate percentage on issued long-term debt | 4.875% | 4.875% | |||||||||||||
Long-term debt, principal amount | $ 1,500 | ||||||||||||||
Three point three seven five percent senior notes due 2021 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate percentage on issued long-term debt | 3.375% | ||||||||||||||
Long-term debt, principal amount | $ 300 | ||||||||||||||
Four point six two five percent senior notes due 2029 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate percentage on issued long-term debt | 4.625% | ||||||||||||||
Long-term debt, principal amount | $ 1,100 | ||||||||||||||
Floating rate senior notes due 2019 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt, principal amount | $ 350 | ||||||||||||||
Floating rate senior notes due 2021 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt, principal amount | 650 | ||||||||||||||
Floating rate senior notes due 2022 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt, principal amount | $ 500 | ||||||||||||||
Two point one one four percent senior unsecured loan due July 6, 2022 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt, principal amount | $ 600 | ||||||||||||||
Senior notes due in 2019 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of long-term debt | $ 350 | ||||||||||||||
Senior notes due in 2018 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of long-term debt | $ 2,700 | ||||||||||||||
Senior notes due in 2017 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of long-term debt | $ 2,000 | ||||||||||||||
Subsequent event | Senior notes due in February 2020 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of long-term debt | $ 405 |
Debt Schedule of Debt Tender Of
Debt Schedule of Debt Tender Offers (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Sep. 28, 2019 | Sep. 25, 2019 | Sep. 09, 2019 | Jun. 30, 2018 | |
Three point five zero zero percent senior notes due June 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, principal amount | $ 1,119 | $ 2,000 | ||
Early repayment of senior debt | 881 | |||
Three point five zero zero percent senior notes due July 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, principal amount | 446 | 1,000 | ||
Early repayment of senior debt | 554 | |||
Four point zero zero zero percent senior notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, principal amount | 838 | 1,600 | $ 1,600 | |
Early repayment of senior debt | 762 | |||
Four point eight seven five percent second lien senior secured notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, principal amount | 976 | $ 1,200 | ||
Early repayment of senior debt | 224 | |||
Five point three seven five percent senior notes due 2020 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, principal amount | 405 | $ 900 | ||
Early repayment of senior debt | $ 495 |
Debt Schedule of Debt Redemptio
Debt Schedule of Debt Redemptions (Details) $ in Millions, $ in Millions | 3 Months Ended | ||||
Dec. 28, 2019USD ($) | Dec. 28, 2019CAD ($) | Dec. 28, 2019CAD ($) | Sep. 28, 2019USD ($) | Sep. 28, 2019CAD ($) | |
Two point seven zero zero percent Canadian dollar senior notes due 2020 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, principal amount | $ 0 | $ 300 | |||
Early repayment of senior debt | $ 300 | ||||
Two point eight zero zero percent senior notes due 2020 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, principal amount | $ 200 | $ 1,500 | |||
Early repayment of senior debt | $ 1,300 |
Debt Schedule of Long-term De_2
Debt Schedule of Long-term Debt Issuances (Details) $ in Millions | Sep. 28, 2019USD ($) |
Three point seven five zero percent senior notes due 2030 | |
Debt Instrument [Line Items] | |
Long-term debt, principal amount | $ 1,000 |
Four point six two five percent senior notes due 2039 | |
Debt Instrument [Line Items] | |
Long-term debt, principal amount | 500 |
Four point eight seven five percent senior notes due 2049 | |
Debt Instrument [Line Items] | |
Long-term debt, principal amount | 1,500 |
2019 Notes | |
Debt Instrument [Line Items] | |
Long-term debt, principal amount | $ 3,000 |
Leases Narrative (Details)
Leases Narrative (Details) - Maximum | 12 Months Ended |
Dec. 28, 2019 | |
Lessee, Lease, Description [Line Items] | |
Remaining contractual lease term | 14 years |
Option to extend term | 10 years |
Leases Components of Lease Cost
Leases Components of Lease Cost (Details) $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Lease, Cost [Abstract] | |
Operating lease costs | $ 191 |
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 |
Leases Supplemental Balance She
Leases Supplemental Balance Sheet Information Related to Leases (Details) $ in Millions | Dec. 28, 2019USD ($) |
Operating Leases | |
Right-of-use assets | $ 542 |
Lease liabilities (current) | 147 |
Lease liabilities (non-current) | $ 454 |
Weighted average remaining lease term | 6 years |
Weighted average discount rate | 4.00% |
Finance Leases | |
Right-of-use assets | $ 185 |
Lease liabilities (current) | 28 |
Lease liabilities (non-current) | $ 158 |
Weighted average remaining lease term | 9 years |
Weighted average discount rate | 3.40% |
Leases Cash Flows Arising from
Leases Cash Flows Arising from Lease Transactions (Details) $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($) | |
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 |
Leases Future Minimum Lease Pay
Leases Future Minimum Lease Payments for Leases in Effect (Details) $ in Millions | Dec. 28, 2019USD ($) |
Operating Leases | |
2020 | $ 168 |
2021 | 131 |
2022 | 96 |
2023 | 69 |
2024 | 53 |
Thereafter | 167 |
Total future undiscounted lease payments | 684 |
Less imputed interest | (83) |
Total lease liability | 601 |
Finance Leases | |
2020 | 33 |
2021 | 74 |
2022 | 22 |
2023 | 10 |
2024 | 7 |
Thereafter | 80 |
Total future undiscounted lease payments | 226 |
Less imputed interest | (40) |
Total lease liability | $ 186 |
Leases Schedule of Future Minim
Leases Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Millions | Dec. 29, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 185 |
2020 | 137 |
2021 | 105 |
2022 | 70 |
2023 | 49 |
Thereafter | 148 |
Total | $ 694 |
Capital Stock Additional Inform
Capital Stock Additional Information (Details) - shares | Dec. 28, 2019 | Dec. 29, 2018 |
Equity [Abstract] | ||
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 |
Capital Stock Common Stock Issu
Capital Stock Common Stock Issued, in Treasury, and Outstanding (Details) - shares shares in Millions | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | ||||
Common stock, shares issued | 1,224 | 1,224 | 1,221 | 1,219 |
Treasury stock, shares | (3) | (4) | (2) | (2) |
Common stock, shares outstanding | 1,221 | 1,220 | 1,219 | 1,217 |
Exercise of stock options, issuance of other stock awards, and other - shares issued | 0 | 3 | 2 | |
Exercise of stock options, issuance of other stock awards, and other - treasury shares | 1 | (2) | 0 | |
Exercise of stock options, issuance of other stock awards, and other - shares outstanding | 1 | 1 | 2 |
Earnings Per Share Schedule of
Earnings Per Share Schedule of Earnings Per Common Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Basic EPS | |||||||||||
Net income/(loss) attributable to common shareholders | $ 182 | $ 899 | $ 449 | $ 405 | $ (12,568) | $ 619 | $ 754 | $ 1,003 | $ 1,935 | $ (10,192) | $ 10,941 |
Weighted average shares of common stock outstanding (in shares) | 1,221 | 1,219 | 1,218 | ||||||||
Basic earnings/(loss) per share (in dollars per share) | $ 0.15 | $ 0.74 | $ 0.37 | $ 0.33 | $ (10.30) | $ 0.51 | $ 0.62 | $ 0.82 | $ 1.59 | $ (8.36) | $ 8.98 |
Diluted EPS | |||||||||||
Net income/(loss) attributable to common shareholders | $ 1,935 | $ (10,192) | $ 10,941 | ||||||||
Weighted average shares of common stock outstanding (in shares) | 1,221 | 1,219 | 1,218 | ||||||||
Effect of dilutive equity awards (in shares) | 3 | 0 | 10 | ||||||||
Weighted average shares of common stock outstanding, including dilutive effect (in shares) | 1,224 | 1,219 | 1,228 | ||||||||
Diluted earnings/(loss) per share (in dollars per share) | $ 0.15 | $ 0.74 | $ 0.37 | $ 0.33 | $ (10.30) | $ 0.50 | $ 0.62 | $ 0.82 | $ 1.58 | $ (8.36) | $ 8.91 |
Earnings Per Share Additional I
Earnings Per Share Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive shares | 10 | 13 | 2 |
Segment Reporting Net Sales by
Segment Reporting Net Sales by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 6,536 | $ 6,076 | $ 6,406 | $ 5,959 | $ 6,891 | $ 6,383 | $ 6,690 | $ 6,304 | $ 24,977 | $ 26,268 | $ 26,076 |
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 17,756 | 18,122 | 18,230 | ||||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,882 | 2,173 | 2,177 | ||||||||
EMEA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,551 | 2,718 | 2,585 | ||||||||
Rest of World | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 2,788 | $ 3,255 | $ 3,084 |
Segment Reporting Segment Adjus
Segment Reporting Segment Adjusted EBITDA (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization (excluding integration and restructuring expenses) | $ (985) | $ (919) | $ (907) |
Integration and restructuring expenses | (102) | (297) | (583) |
Deal costs | (19) | (23) | 0 |
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/(loss) | 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 |
United States | |||
Segment Reporting Information [Line Items] | |||
Segment Adjusted EBITDA | 4,809 | 5,218 | 5,873 |
Canada | |||
Segment Reporting Information [Line Items] | |||
Segment Adjusted EBITDA | 487 | 608 | 636 |
EMEA | |||
Segment Reporting Information [Line Items] | |||
Segment Adjusted EBITDA | 661 | 724 | 673 |
Rest of World | |||
Segment Reporting Information [Line Items] | |||
Segment Adjusted EBITDA | 363 | 635 | 590 |
General corporate expenses | |||
Segment Reporting Information [Line Items] | |||
Segment Adjusted EBITDA | $ (256) | $ (161) | $ (108) |
Segment Reporting Depreciation
Segment Reporting Depreciation and Amortization Expense by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 994 | $ 983 | $ 1,031 |
United States | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 609 | 626 | 658 |
Canada | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 35 | 39 | 48 |
EMEA | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 107 | 102 | 99 |
Rest of World | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 124 | 119 | 98 |
General corporate expenses | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 119 | $ 97 | $ 128 |
Segment Reporting Capital Expen
Segment Reporting Capital Expenditures by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 768 | $ 826 | $ 1,194 |
United States | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 393 | 388 | 764 |
Canada | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 27 | 21 | 42 |
EMEA | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 134 | 124 | 127 |
Rest of World | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 149 | 236 | 184 |
General corporate expenses | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 65 | $ 57 | $ 77 |
Segment Reporting Net Sales b_2
Segment Reporting Net Sales by Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 6,536 | $ 6,076 | $ 6,406 | $ 5,959 | $ 6,891 | $ 6,383 | $ 6,690 | $ 6,304 | $ 24,977 | $ 26,268 | $ 26,076 |
Condiments and sauces | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 6,406 | 6,752 | 6,429 | ||||||||
Cheese and dairy | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 4,890 | 5,287 | 5,409 | ||||||||
Ambient foods | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 2,475 | 2,576 | 2,564 | ||||||||
Meats and seafood | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 2,406 | 2,505 | 2,567 | ||||||||
Frozen and chilled foods | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 2,371 | 2,548 | 2,578 | ||||||||
Refreshment beverages | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 1,504 | 1,507 | 1,506 | ||||||||
Coffee | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 1,271 | 1,438 | 1,422 | ||||||||
Infant and nutrition | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 512 | 756 | 755 | ||||||||
Desserts, toppings and baking | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 1,032 | 1,038 | 1,033 | ||||||||
Nuts and salted snacks | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 966 | 967 | 970 | ||||||||
Other | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 1,144 | $ 894 | $ 843 |
Segment Reporting Additional In
Segment Reporting Additional Information (Details) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting [Abstract] | |||
Concentration risk, net sales to Walmart Inc., percentage | 21.00% | 21.00% | 21.00% |
Segment Reporting Net Sales b_3
Segment Reporting Net Sales by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 6,536 | $ 6,076 | $ 6,406 | $ 5,959 | $ 6,891 | $ 6,383 | $ 6,690 | $ 6,304 | $ 24,977 | $ 26,268 | $ 26,076 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 17,844 | 18,218 | 18,324 | ||||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,882 | 2,173 | 2,177 | ||||||||
United Kingdom | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,007 | 1,071 | 1,018 | ||||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 4,244 | $ 4,806 | $ 4,557 |
Segment Reporting Long-lived As
Segment Reporting Long-lived Assets by Geography (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 7,055 | $ 7,078 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 5,004 | 5,103 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 2,051 | $ 1,975 |
Other Financial Data Schedule o
Other Financial Data Schedule of Other Expense/(Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Other Income and Expenses [Abstract] | |||
Amortization of prior service costs/(credits) | $ (306) | $ (311) | $ (328) |
Net pension and postretirement non-service cost/(benefit) | (172) | (40) | (308) |
Loss/(gain) on sale of business | (420) | 15 | 0 |
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 |
Other Financial Data Narrative
Other Financial Data Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Other expense/(income) | $ 952 | $ 168 | $ 627 |
Loss/(gain) on sale of business | 420 | (15) | 0 |
Other expense/(income) | 952 | 168 | 627 |
Increase (decrease) in nonmonetary currency devaluation | (136) | 110 | |
Gains/(losses) on sale of business | 420 | (15) | 0 |
Postretirement Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Curtailments | 5 | 0 | 177 |
Non-U.S. Plans | Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Settlements | 0 | 1,221 | |
Curtailments | 0 | 1 | $ 0 |
Canadian Salaried and Hourly Plans | Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Settlements | 162 | ||
Other expense/(income) | Cash Flow Hedging | Designated as hedging instrument | Cross-currency contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net gains/(losses) on derivatives, excluded component, reclassified to net income | $ 28 | 1 | |
South Africa Subsidiary | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Gains/(losses) on sale of business | $ (15) |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 6,536 | $ 6,076 | $ 6,406 | $ 5,959 | $ 6,891 | $ 6,383 | $ 6,690 | $ 6,304 | $ 24,977 | $ 26,268 | $ 26,076 |
Gross profit | 2,107 | 1,947 | 2,082 | 2,011 | 2,216 | 2,094 | 2,347 | 2,264 | 8,147 | 8,921 | 9,033 |
Net income/(loss) | 183 | 898 | 448 | 404 | (12,628) | 618 | 753 | 1,003 | 1,933 | (10,254) | 10,932 |
Net income/(loss) attributable to common shareholders | $ 182 | $ 899 | $ 449 | $ 405 | $ (12,568) | $ 619 | $ 754 | $ 1,003 | $ 1,935 | $ (10,192) | $ 10,941 |
Basic earnings/(loss) per share (in dollars per share) | $ 0.15 | $ 0.74 | $ 0.37 | $ 0.33 | $ (10.30) | $ 0.51 | $ 0.62 | $ 0.82 | $ 1.59 | $ (8.36) | $ 8.98 |
Diluted earnings/(loss) per share (in dollars per share) | $ 0.15 | $ 0.74 | $ 0.37 | $ 0.33 | $ (10.30) | $ 0.50 | $ 0.62 | $ 0.82 | $ 1.58 | $ (8.36) | $ 8.91 |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | $ 6,536 | $ 6,076 | $ 6,406 | $ 5,959 | $ 6,891 | $ 6,383 | $ 6,690 | $ 6,304 | $ 24,977 | $ 26,268 | $ 26,076 |
Cost of products sold | 16,830 | 17,347 | 17,043 | ||||||||
Gross profit | 2,107 | 1,947 | 2,082 | 2,011 | 2,216 | 2,094 | 2,347 | 2,264 | 8,147 | 8,921 | 9,033 |
Selling, general and administrative expenses, excluding impairment losses | 3,178 | 3,190 | 2,927 | ||||||||
Goodwill impairment losses | 6,900 | 1,197 | 7,008 | 0 | |||||||
Intangible asset impairment losses | 702 | 8,928 | 49 | ||||||||
Selling, general and administrative expenses | 5,077 | 19,126 | 2,976 | ||||||||
Intercompany service fees and other recharges | 0 | 0 | 0 | ||||||||
Operating income/(loss) | 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 | ||||||||
Provision for/(benefit from) income taxes | 728 | (1,067) | (5,482) | ||||||||
Equity in earnings/(losses) of subsidiaries | 0 | 0 | 0 | ||||||||
Net income/(loss) | $ 183 | $ 898 | $ 448 | $ 404 | $ (12,628) | $ 618 | $ 753 | $ 1,003 | 1,933 | (10,254) | 10,932 |
Net income/(loss) attributable to noncontrolling interest | (2) | (62) | (9) | ||||||||
Net income/(loss) excluding noncontrolling interest | 1,935 | (10,192) | 10,941 | ||||||||
Comprehensive income/(loss) excluding noncontrolling interest | 1,856 | (11,081) | 11,516 | ||||||||
Eliminations | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | (463) | (530) | (568) | ||||||||
Cost of products sold | (463) | (530) | (568) | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Selling, general and administrative expenses, excluding impairment losses | 0 | 0 | 0 | ||||||||
Goodwill impairment losses | 0 | 0 | 0 | ||||||||
Intangible asset impairment losses | 0 | 0 | 0 | ||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | ||||||||
Intercompany service fees and other recharges | 0 | 0 | 0 | ||||||||
Operating income/(loss) | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Other expense/(income) | 0 | 0 | 0 | ||||||||
Income/(loss) before income taxes | 0 | 0 | 0 | ||||||||
Provision for/(benefit from) income taxes | 0 | 0 | 0 | ||||||||
Equity in earnings/(losses) of subsidiaries | (3,391) | 20,778 | (21,045) | ||||||||
Net income/(loss) | (3,391) | 20,778 | (21,045) | ||||||||
Net income/(loss) attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income/(loss) excluding noncontrolling interest | (3,391) | 20,778 | (21,045) | ||||||||
Comprehensive income/(loss) excluding noncontrolling interest | (3,235) | 22,631 | (19,227) | ||||||||
Parent Guarantor | Reportable Legal Entities | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Cost of products sold | 0 | 0 | 0 | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Selling, general and administrative expenses, excluding impairment losses | 0 | 0 | 0 | ||||||||
Goodwill impairment losses | 0 | 0 | 0 | ||||||||
Intangible asset impairment losses | 0 | 0 | 0 | ||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | ||||||||
Intercompany service fees and other recharges | 0 | 0 | 0 | ||||||||
Operating income/(loss) | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Other expense/(income) | 0 | 0 | 0 | ||||||||
Income/(loss) before income taxes | 0 | 0 | 0 | ||||||||
Provision for/(benefit from) income taxes | 0 | 0 | 0 | ||||||||
Equity in earnings/(losses) of subsidiaries | 1,935 | (10,192) | 10,941 | ||||||||
Net income/(loss) | 1,935 | (10,192) | 10,941 | ||||||||
Net income/(loss) attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income/(loss) excluding noncontrolling interest | 1,935 | (10,192) | 10,941 | ||||||||
Comprehensive income/(loss) excluding noncontrolling interest | 1,856 | (11,081) | 11,516 | ||||||||
Subsidiary Issuer | Reportable Legal Entities | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | 16,852 | 17,317 | 17,397 | ||||||||
Cost of products sold | 11,042 | 11,290 | 11,147 | ||||||||
Gross profit | 5,810 | 6,027 | 6,250 | ||||||||
Selling, general and administrative expenses, excluding impairment losses | 798 | 803 | 695 | ||||||||
Goodwill impairment losses | 0 | 0 | 0 | ||||||||
Intangible asset impairment losses | 0 | 0 | 0 | ||||||||
Selling, general and administrative expenses | 798 | 803 | 695 | ||||||||
Intercompany service fees and other recharges | 3,377 | 3,865 | 4,307 | ||||||||
Operating income/(loss) | 1,635 | 1,359 | 1,248 | ||||||||
Interest expense | 1,283 | 1,212 | 1,189 | ||||||||
Other expense/(income) | (128) | (359) | (535) | ||||||||
Income/(loss) before income taxes | 480 | 506 | 594 | ||||||||
Provision for/(benefit from) income taxes | 1 | 112 | (243) | ||||||||
Equity in earnings/(losses) of subsidiaries | 1,456 | (10,586) | 10,104 | ||||||||
Net income/(loss) | 1,935 | (10,192) | 10,941 | ||||||||
Net income/(loss) attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income/(loss) excluding noncontrolling interest | 1,935 | (10,192) | 10,941 | ||||||||
Comprehensive income/(loss) excluding noncontrolling interest | 1,856 | (11,081) | 11,516 | ||||||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | 8,588 | 9,481 | 9,247 | ||||||||
Cost of products sold | 6,251 | 6,587 | 6,464 | ||||||||
Gross profit | 2,337 | 2,894 | 2,783 | ||||||||
Selling, general and administrative expenses, excluding impairment losses | 2,380 | 2,387 | 2,232 | ||||||||
Goodwill impairment losses | 1,197 | 7,008 | 0 | ||||||||
Intangible asset impairment losses | 702 | 8,928 | 49 | ||||||||
Selling, general and administrative expenses | 4,279 | 18,323 | 2,281 | ||||||||
Intercompany service fees and other recharges | (3,377) | (3,865) | (4,307) | ||||||||
Operating income/(loss) | 1,435 | (11,564) | 4,809 | ||||||||
Interest expense | 78 | 72 | 45 | ||||||||
Other expense/(income) | (824) | 191 | (92) | ||||||||
Income/(loss) before income taxes | 2,181 | (11,827) | 4,856 | ||||||||
Provision for/(benefit from) income taxes | 727 | (1,179) | (5,239) | ||||||||
Equity in earnings/(losses) of subsidiaries | 0 | 0 | 0 | ||||||||
Net income/(loss) | 1,454 | (10,648) | 10,095 | ||||||||
Net income/(loss) attributable to noncontrolling interest | (2) | (62) | (9) | ||||||||
Net income/(loss) excluding noncontrolling interest | 1,456 | (10,586) | 10,104 | ||||||||
Comprehensive income/(loss) excluding noncontrolling interest | $ 1,379 | $ (11,550) | $ 7,711 |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Assets [Abstract] | ||||
Cash and cash equivalents | $ 2,279 | $ 1,130 | ||
Trade receivables, net | 1,973 | 2,129 | ||
Receivables due from affiliates | 0 | 0 | ||
Income taxes receivable | 173 | 152 | ||
Inventories | 2,721 | 2,667 | ||
Short-term lending due from affiliates | 0 | 0 | ||
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 | ||
Investments in subsidiaries | 0 | 0 | ||
Intangible assets, net | 48,652 | 49,468 | ||
Long-term lending due from affiliates | 0 | 0 | ||
Other non-current assets | 2,100 | 1,337 | ||
TOTAL ASSETS | 101,450 | 103,461 | ||
Liabilities and Equity [Abstract] | ||||
Commercial paper and other short-term debt | 6 | 21 | ||
Current portion of long-term debt | 1,022 | 377 | ||
Short-term lending due to affiliates | 0 | 0 | ||
Trade payables | 4,003 | 4,153 | ||
Payables due to affiliates | 0 | 0 | ||
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 | ||
Long-term borrowings due to affiliates | 0 | 0 | ||
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 | ||
Redeemable noncontrolling interest | 0 | 3 | ||
Total shareholders’ equity | 51,623 | 51,657 | ||
Noncontrolling interest | 126 | 118 | ||
TOTAL EQUITY | 51,749 | 51,775 | $ 66,070 | $ 57,460 |
TOTAL LIABILITIES AND EQUITY | 101,450 | 103,461 | ||
Eliminations | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 0 | 0 | ||
Trade receivables, net | 0 | 0 | ||
Receivables due from affiliates | (1,426) | (1,211) | ||
Income taxes receivable | (701) | (558) | ||
Inventories | 0 | 0 | ||
Short-term lending due from affiliates | (6,044) | (5,540) | ||
Prepaid expenses | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Assets held for sale | 0 | 0 | ||
Total current assets | (8,171) | (7,309) | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investments in subsidiaries | (118,115) | (119,524) | ||
Intangible assets, net | 0 | 0 | ||
Long-term lending due from affiliates | (2,207) | (2,000) | ||
Other non-current assets | 0 | 0 | ||
TOTAL ASSETS | (128,493) | (128,833) | ||
Liabilities and Equity [Abstract] | ||||
Commercial paper and other short-term debt | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Short-term lending due to affiliates | (6,044) | (5,540) | ||
Trade payables | 0 | 0 | ||
Payables due to affiliates | (1,426) | (1,211) | ||
Accrued marketing | 0 | 0 | ||
Interest payable | 0 | 0 | ||
Other current liabilities | (701) | (558) | ||
Liabilities held for sale | 0 | 0 | ||
Total current liabilities | (8,171) | (7,309) | ||
Long-term debt | 0 | 0 | ||
Long-term borrowings due to affiliates | (2,207) | (2,012) | ||
Deferred income taxes | 0 | 0 | ||
Accrued postemployment costs | 0 | 0 | ||
Other non-current liabilities | 0 | 0 | ||
TOTAL LIABILITIES | (10,378) | (9,321) | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Total shareholders’ equity | (118,115) | (119,512) | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL EQUITY | (118,115) | (119,512) | ||
TOTAL LIABILITIES AND EQUITY | (128,493) | (128,833) | ||
Parent Guarantor | Reportable Legal Entities | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 0 | 0 | ||
Trade receivables, net | 0 | 0 | ||
Receivables due from affiliates | 0 | 0 | ||
Income taxes receivable | 0 | 0 | ||
Inventories | 0 | 0 | ||
Short-term lending due from affiliates | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Assets held for sale | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investments in subsidiaries | 51,623 | 51,657 | ||
Intangible assets, net | 0 | 0 | ||
Long-term lending due from affiliates | 0 | 0 | ||
Other non-current assets | 0 | 0 | ||
TOTAL ASSETS | 51,623 | 51,657 | ||
Liabilities and Equity [Abstract] | ||||
Commercial paper and other short-term debt | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Short-term lending due to affiliates | 0 | 0 | ||
Trade payables | 0 | 0 | ||
Payables due to affiliates | 0 | 0 | ||
Accrued marketing | 0 | 0 | ||
Interest payable | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Liabilities held for sale | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Long-term borrowings due to affiliates | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Accrued postemployment costs | 0 | 0 | ||
Other non-current liabilities | 0 | 0 | ||
TOTAL LIABILITIES | 0 | 0 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Total shareholders’ equity | 51,623 | 51,657 | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL EQUITY | 51,623 | 51,657 | ||
TOTAL LIABILITIES AND EQUITY | 51,623 | 51,657 | ||
Subsidiary Issuer | Reportable Legal Entities | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 1,404 | 202 | ||
Trade receivables, net | 836 | 933 | ||
Receivables due from affiliates | 633 | 870 | ||
Income taxes receivable | 714 | 701 | ||
Inventories | 1,832 | 1,783 | ||
Short-term lending due from affiliates | 1,399 | 1,787 | ||
Prepaid expenses | 193 | 198 | ||
Other current assets | 269 | 776 | ||
Assets held for sale | 13 | 75 | ||
Total current assets | 7,293 | 7,325 | ||
Property, plant and equipment, net | 4,420 | 4,524 | ||
Goodwill | 11,066 | 11,067 | ||
Investments in subsidiaries | 66,492 | 67,867 | ||
Intangible assets, net | 2,860 | 3,010 | ||
Long-term lending due from affiliates | 207 | 0 | ||
Other non-current assets | 850 | 316 | ||
TOTAL ASSETS | 93,188 | 94,109 | ||
Liabilities and Equity [Abstract] | ||||
Commercial paper and other short-term debt | 5 | 0 | ||
Current portion of long-term debt | 626 | 363 | ||
Short-term lending due to affiliates | 4,645 | 3,753 | ||
Trade payables | 2,445 | 2,563 | ||
Payables due to affiliates | 793 | 341 | ||
Accrued marketing | 249 | 282 | ||
Interest payable | 372 | 394 | ||
Other current liabilities | 266 | 888 | ||
Liabilities held for sale | 0 | 0 | ||
Total current liabilities | 9,401 | 8,584 | ||
Long-term debt | 27,912 | 29,872 | ||
Long-term borrowings due to affiliates | 2,000 | 2,000 | ||
Deferred income taxes | 1,307 | 1,314 | ||
Accrued postemployment costs | 34 | 89 | ||
Other non-current liabilities | 911 | 593 | ||
TOTAL LIABILITIES | 41,565 | 42,452 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Total shareholders’ equity | 51,623 | 51,657 | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL EQUITY | 51,623 | 51,657 | ||
TOTAL LIABILITIES AND EQUITY | 93,188 | 94,109 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 875 | 928 | ||
Trade receivables, net | 1,137 | 1,196 | ||
Receivables due from affiliates | 793 | 341 | ||
Income taxes receivable | 160 | 9 | ||
Inventories | 889 | 884 | ||
Short-term lending due from affiliates | 4,645 | 3,753 | ||
Prepaid expenses | 191 | 202 | ||
Other current assets | 176 | 445 | ||
Assets held for sale | 109 | 1,301 | ||
Total current assets | 8,975 | 9,059 | ||
Property, plant and equipment, net | 2,635 | 2,554 | ||
Goodwill | 24,480 | 25,436 | ||
Investments in subsidiaries | 0 | 0 | ||
Intangible assets, net | 45,792 | 46,458 | ||
Long-term lending due from affiliates | 2,000 | 2,000 | ||
Other non-current assets | 1,250 | 1,021 | ||
TOTAL ASSETS | 85,132 | 86,528 | ||
Liabilities and Equity [Abstract] | ||||
Commercial paper and other short-term debt | 1 | 21 | ||
Current portion of long-term debt | 396 | 14 | ||
Short-term lending due to affiliates | 1,399 | 1,787 | ||
Trade payables | 1,558 | 1,590 | ||
Payables due to affiliates | 633 | 870 | ||
Accrued marketing | 398 | 440 | ||
Interest payable | 12 | 14 | ||
Other current liabilities | 2,239 | 1,437 | ||
Liabilities held for sale | 9 | 55 | ||
Total current liabilities | 6,645 | 6,228 | ||
Long-term debt | 304 | 898 | ||
Long-term borrowings due to affiliates | 207 | 12 | ||
Deferred income taxes | 10,571 | 10,888 | ||
Accrued postemployment costs | 239 | 217 | ||
Other non-current liabilities | 548 | 309 | ||
TOTAL LIABILITIES | 18,514 | 18,552 | ||
Redeemable noncontrolling interest | 0 | 3 | ||
Total shareholders’ equity | 66,492 | 67,855 | ||
Noncontrolling interest | 126 | 118 | ||
TOTAL EQUITY | 66,618 | 67,973 | ||
TOTAL LIABILITIES AND EQUITY | $ 85,132 | $ 86,528 |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 28, 2019 | Sep. 28, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | |||||
Net cash provided by/(used for) operating activities | $ 3,552 | $ 2,574 | $ 501 | ||
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||||
Cash receipts on sold receivables | 0 | 1,296 | 2,286 | ||
Capital expenditures | (768) | (826) | (1,194) | ||
Payments to acquire business, net of cash acquired | (199) | (248) | 0 | ||
Net proceeds from/(payments on) intercompany lending activities | 0 | 0 | 0 | ||
Additional investments in subsidiaries | 0 | 0 | 0 | ||
Return of capital | 0 | ||||
Proceeds from net investment hedges | 590 | 24 | 6 | ||
Proceeds from sale of business, net of cash disposed | 1,875 | 18 | 0 | ||
Other investing activities, net | 13 | 24 | 79 | ||
Net cash provided by/(used for) investing activities | 1,511 | 288 | 1,177 | ||
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||||
Repayments of long-term debt | (4,795) | (2,713) | (2,641) | ||
Proceeds from issuance of long-term debt | 2,967 | 2,990 | 1,496 | ||
Debt prepayment and extinguishment costs | $ (8) | $ (91) | (99) | 0 | 0 |
Proceeds from issuance of commercial paper | 557 | 2,784 | 6,043 | ||
Repayments of commercial paper | (557) | (3,213) | (6,249) | ||
Net proceeds from/(payments on) intercompany borrowing activities | 0 | 0 | 0 | ||
Dividends paid | (1,953) | (3,183) | (2,888) | ||
Other intercompany capital stock transactions | 0 | 0 | 0 | ||
Other financing activities, net | (33) | (28) | 18 | ||
Net cash provided by/(used for) financing activities | (3,913) | (3,363) | (4,221) | ||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (6) | (132) | 57 | ||
Cash, cash equivalents, and restricted cash | |||||
Net increase/(decrease) | 1,144 | (633) | (2,486) | ||
Balance at beginning of period | 1,136 | 1,769 | 4,255 | ||
Balance at end of period | 2,280 | 2,280 | 1,136 | 1,769 | |
Eliminations | |||||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | |||||
Net cash provided by/(used for) operating activities | (1,953) | (3,193) | (2,888) | ||
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||||
Cash receipts on sold receivables | 0 | 0 | |||
Capital expenditures | 0 | 0 | 0 | ||
Payments to acquire business, net of cash acquired | 0 | 0 | |||
Net proceeds from/(payments on) intercompany lending activities | (2,971) | (1,832) | (99) | ||
Additional investments in subsidiaries | 71 | 41 | 21 | ||
Return of capital | (7) | ||||
Proceeds from net investment hedges | 0 | 0 | 0 | ||
Proceeds from sale of business, net of cash disposed | 0 | 0 | |||
Other investing activities, net | 0 | 0 | 0 | ||
Net cash provided by/(used for) investing activities | (2,900) | (1,798) | (78) | ||
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||||
Repayments of long-term debt | 0 | 0 | 0 | ||
Proceeds from issuance of long-term debt | 0 | 0 | 0 | ||
Debt prepayment and extinguishment costs | 0 | ||||
Proceeds from issuance of commercial paper | 0 | 0 | 0 | ||
Repayments of commercial paper | 0 | 0 | 0 | ||
Net proceeds from/(payments on) intercompany borrowing activities | 2,971 | 1,832 | 99 | ||
Dividends paid | 1,953 | 3,193 | 2,888 | ||
Other intercompany capital stock transactions | (71) | (34) | (21) | ||
Other financing activities, net | 0 | 0 | 0 | ||
Net cash provided by/(used for) financing activities | 4,853 | 4,991 | 2,966 | ||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 0 | 0 | 0 | ||
Cash, cash equivalents, and restricted cash | |||||
Net increase/(decrease) | 0 | 0 | 0 | ||
Balance at beginning of period | 0 | 0 | 0 | ||
Balance at end of period | 0 | 0 | 0 | 0 | |
Parent Guarantor | Reportable Legal Entities | |||||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | |||||
Net cash provided by/(used for) operating activities | 1,953 | 3,183 | 2,888 | ||
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||||
Cash receipts on sold receivables | 0 | 0 | |||
Capital expenditures | 0 | 0 | 0 | ||
Payments to acquire business, net of cash acquired | 0 | 0 | |||
Net proceeds from/(payments on) intercompany lending activities | 0 | 0 | 0 | ||
Additional investments in subsidiaries | (20) | 0 | (21) | ||
Return of capital | 7 | ||||
Proceeds from net investment hedges | 0 | 0 | 0 | ||
Proceeds from sale of business, net of cash disposed | 0 | 0 | |||
Other investing activities, net | 0 | 0 | 0 | ||
Net cash provided by/(used for) investing activities | (20) | 7 | (21) | ||
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||||
Repayments of long-term debt | 0 | 0 | 0 | ||
Proceeds from issuance of long-term debt | 0 | 0 | 0 | ||
Debt prepayment and extinguishment costs | 0 | ||||
Proceeds from issuance of commercial paper | 0 | 0 | 0 | ||
Repayments of commercial paper | 0 | 0 | 0 | ||
Net proceeds from/(payments on) intercompany borrowing activities | 0 | 0 | 0 | ||
Dividends paid | (1,953) | (3,183) | (2,888) | ||
Other intercompany capital stock transactions | 0 | 0 | 0 | ||
Other financing activities, net | 20 | (7) | 21 | ||
Net cash provided by/(used for) financing activities | (1,933) | (3,190) | (2,867) | ||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 0 | 0 | 0 | ||
Cash, cash equivalents, and restricted cash | |||||
Net increase/(decrease) | 0 | 0 | 0 | ||
Balance at beginning of period | 0 | 0 | 0 | ||
Balance at end of period | 0 | 0 | 0 | 0 | |
Subsidiary Issuer | Reportable Legal Entities | |||||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | |||||
Net cash provided by/(used for) operating activities | 3,308 | 1,928 | 1,497 | ||
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||||
Cash receipts on sold receivables | 0 | 0 | |||
Capital expenditures | (365) | (339) | (757) | ||
Payments to acquire business, net of cash acquired | (199) | (245) | |||
Net proceeds from/(payments on) intercompany lending activities | 2,248 | 1,626 | 641 | ||
Additional investments in subsidiaries | (51) | (41) | 0 | ||
Return of capital | 0 | ||||
Proceeds from net investment hedges | 604 | 24 | 6 | ||
Proceeds from sale of business, net of cash disposed | 0 | 0 | |||
Other investing activities, net | 52 | 7 | 56 | ||
Net cash provided by/(used for) investing activities | 2,289 | 1,032 | (54) | ||
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||||
Repayments of long-term debt | (4,568) | (2,550) | (2,628) | ||
Proceeds from issuance of long-term debt | 2,969 | 2,990 | 1,496 | ||
Debt prepayment and extinguishment costs | (99) | ||||
Proceeds from issuance of commercial paper | 557 | 2,784 | 6,043 | ||
Repayments of commercial paper | (557) | (3,213) | (6,249) | ||
Net proceeds from/(payments on) intercompany borrowing activities | (723) | (206) | 542 | ||
Dividends paid | (1,953) | (3,183) | (2,888) | ||
Other intercompany capital stock transactions | 20 | (7) | 21 | ||
Other financing activities, net | (41) | (17) | (5) | ||
Net cash provided by/(used for) financing activities | (4,395) | (3,402) | (3,668) | ||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 0 | 0 | 0 | ||
Cash, cash equivalents, and restricted cash | |||||
Net increase/(decrease) | 1,202 | (442) | (2,225) | ||
Balance at beginning of period | 202 | 644 | 2,869 | ||
Balance at end of period | 1,404 | 1,404 | 202 | 644 | |
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | |||||
Net cash provided by/(used for) operating activities | 244 | 656 | (996) | ||
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||||
Cash receipts on sold receivables | 1,296 | 2,286 | |||
Capital expenditures | (403) | (487) | (437) | ||
Payments to acquire business, net of cash acquired | 0 | (3) | |||
Net proceeds from/(payments on) intercompany lending activities | 723 | 206 | (542) | ||
Additional investments in subsidiaries | 0 | 0 | 0 | ||
Return of capital | 0 | ||||
Proceeds from net investment hedges | (14) | 0 | 0 | ||
Proceeds from sale of business, net of cash disposed | 1,875 | 18 | |||
Other investing activities, net | (39) | 17 | 23 | ||
Net cash provided by/(used for) investing activities | 2,142 | 1,047 | 1,330 | ||
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||||
Repayments of long-term debt | (227) | (163) | (13) | ||
Proceeds from issuance of long-term debt | (2) | 0 | 0 | ||
Debt prepayment and extinguishment costs | 0 | ||||
Proceeds from issuance of commercial paper | 0 | 0 | 0 | ||
Repayments of commercial paper | 0 | 0 | 0 | ||
Net proceeds from/(payments on) intercompany borrowing activities | (2,248) | (1,626) | (641) | ||
Dividends paid | 0 | (10) | 0 | ||
Other intercompany capital stock transactions | 51 | 41 | 0 | ||
Other financing activities, net | (12) | (4) | 2 | ||
Net cash provided by/(used for) financing activities | (2,438) | (1,762) | (652) | ||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (6) | (132) | 57 | ||
Cash, cash equivalents, and restricted cash | |||||
Net increase/(decrease) | (58) | (191) | (261) | ||
Balance at beginning of period | 934 | 1,125 | 1,386 | ||
Balance at end of period | $ 876 | $ 876 | $ 934 | $ 1,125 |
Supplemental Guarantor Inform_6
Supplemental Guarantor Information Reconciliation From Cash and Cash Equivalents to Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Schedule of Cash, Cash Equivalents, and Restricted Cash [Line Items] | ||||
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 | 0 | 5 | ||
Cash, cash equivalents, and restricted cash | 2,280 | 1,136 | $ 1,769 | $ 4,255 |
Eliminations | ||||
Schedule of Cash, Cash Equivalents, and Restricted Cash [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash included in other current assets | 0 | 0 | ||
Restricted cash included in other non-current assets | 0 | 0 | ||
Cash, cash equivalents, and restricted cash | 0 | 0 | 0 | 0 |
Parent Guarantor | Reportable Legal Entities | ||||
Schedule of Cash, Cash Equivalents, and Restricted Cash [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash included in other current assets | 0 | 0 | ||
Restricted cash included in other non-current assets | 0 | 0 | ||
Cash, cash equivalents, and restricted cash | 0 | 0 | 0 | 0 |
Subsidiary Issuer | Reportable Legal Entities | ||||
Schedule of Cash, Cash Equivalents, and Restricted Cash [Line Items] | ||||
Cash and cash equivalents | 1,404 | 202 | ||
Restricted cash included in other current assets | 0 | 0 | ||
Restricted cash included in other non-current assets | 0 | 0 | ||
Cash, cash equivalents, and restricted cash | 1,404 | 202 | 644 | 2,869 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Schedule of Cash, Cash Equivalents, and Restricted Cash [Line Items] | ||||
Cash and cash equivalents | 875 | 928 | ||
Restricted cash included in other current assets | 1 | 1 | ||
Restricted cash included in other non-current assets | 0 | 5 | ||
Cash, cash equivalents, and restricted cash | $ 876 | $ 934 | $ 1,125 | $ 1,386 |