Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 11, 2023 | Jun. 24, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 34.6 | ||
Entity Common Stock, Shares Outstanding | 1,225,003,377 | ||
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 stockholders expected to be held on May 4, 2023 are incorporated by reference into Part III hereof. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001637459 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Chicago, Illinois |
Auditor Firm ID | 238 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 26,485 | $ 26,042 | $ 26,185 |
Cost of products sold | 18,363 | 17,360 | 17,008 |
Gross profit | 8,122 | 8,682 | 9,177 |
Selling, general and administrative expenses, excluding impairment losses | 3,575 | 3,588 | 3,650 |
Goodwill impairment losses | 444 | 318 | 2,343 |
Intangible asset impairment losses | 469 | 1,316 | 1,056 |
Selling, general and administrative expenses | 4,488 | 5,222 | 7,049 |
Operating income/(loss) | 3,634 | 3,460 | 2,128 |
Interest expense | 921 | 2,047 | 1,394 |
Other expense/(income) | (253) | (295) | (296) |
Income/(loss) before income taxes | 2,966 | 1,708 | 1,030 |
Provision for/(benefit from) income taxes | 598 | 684 | 669 |
Net income/(loss) | 2,368 | 1,024 | 361 |
Net income/(loss) attributable to noncontrolling interest | 5 | 12 | 5 |
Net income/(loss) attributable to common shareholders | $ 2,363 | $ 1,012 | $ 356 |
Per share data applicable to common shareholders: | |||
Basic earnings/(loss) per share (in dollars per share) | $ 1.93 | $ 0.83 | $ 0.29 |
Diluted earnings/(loss) per share (in dollars per share) | $ 1.91 | $ 0.82 | $ 0.29 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income/(loss) | $ 2,368 | $ 1,024 | $ 361 |
Other comprehensive income/(loss), net of tax: | |||
Foreign currency translation adjustments | (914) | (236) | 327 |
Net deferred gains/(losses) on net investment hedges | 343 | 169 | (321) |
Amounts excluded from the effectiveness assessment of net investment hedges | 32 | 35 | 26 |
Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) | (28) | (29) | (17) |
Net deferred gains/(losses) on cash flow hedges | (72) | (91) | 144 |
Amounts excluded from the effectiveness assessment of cash flow hedges | 14 | 27 | 24 |
Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) | 26 | 68 | (116) |
Net actuarial gains/(losses) arising during the period | (386) | 232 | (27) |
Net postemployment benefit losses/(gains) reclassified to net income/(loss) | (8) | (26) | (118) |
Total other comprehensive income/(loss) | (993) | 149 | (78) |
Total comprehensive income/(loss) | 1,375 | 1,173 | 283 |
Comprehensive income/(loss) attributable to noncontrolling interest | (2) | 18 | 8 |
Comprehensive income/(loss) attributable to common shareholders | $ 1,377 | $ 1,155 | $ 275 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 1,040 | $ 3,445 |
Trade receivables (net of allowances of $46 at December 31, 2022 and $48 at December 25, 2021) | 2,120 | 1,957 |
Inventories | 3,651 | 2,729 |
Prepaid expenses | 240 | 136 |
Other current assets | 842 | 716 |
Assets held for sale | 4 | 11 |
Total current assets | 7,897 | 8,994 |
Property, plant and equipment, net | 6,740 | 6,806 |
Goodwill | 30,833 | 31,296 |
Intangible assets, net | 42,649 | 43,542 |
Other non-current assets | 2,394 | 2,756 |
TOTAL ASSETS | 90,513 | 93,394 |
LIABILITIES AND EQUITY | ||
Commercial paper and other short-term debt | 6 | 14 |
Current portion of long-term debt | 831 | 740 |
Trade payables | 4,848 | 4,753 |
Accrued marketing | 749 | 804 |
Interest payable | 264 | 268 |
Income taxes payable | 136 | 541 |
Other current liabilities | 2,194 | 1,944 |
Total current liabilities | 9,028 | 9,064 |
Long-term debt | 19,233 | 21,061 |
Deferred income taxes | 10,152 | 10,536 |
Accrued postemployment costs | 144 | 205 |
Long-term deferred income | 1,477 | 1,534 |
Other non-current liabilities | 1,609 | 1,542 |
TOTAL LIABILITIES | 41,643 | 43,942 |
Commitments and Contingencies (Note 15) | ||
Redeemable noncontrolling interest | 40 | 4 |
Equity: | ||
Common stock, $0.01 par value (5,000 shares authorized; 1,243 shares issued and 1,225 shares outstanding at December 31, 2022; 1,235 shares issued and 1,224 shares outstanding at December 25, 2021) | 12 | 12 |
Additional paid-in capital | 51,834 | 53,379 |
Retained earnings/(deficit) | 489 | (1,682) |
Accumulated other comprehensive income/(losses) | (2,810) | (1,824) |
Treasury stock, at cost (18 shares at December 31, 2022 and 11 shares at December 25, 2021) | (847) | (587) |
Total shareholders' equity | 48,678 | 49,298 |
Noncontrolling interest | 152 | 150 |
TOTAL EQUITY | 48,830 | 49,448 |
TOTAL LIABILITIES AND EQUITY | $ 90,513 | $ 93,394 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowance for credit loss | $ 46 | $ 48 |
Common stock, par value per share (in usd per share) | $ 0.01 | |
Common stock, shares authorized (in shares) | 5,000,000,000 | 5,000,000,000 |
Common stock, issued (in shares) | 1,243,000,000 | 1,235,000,000 |
Common stock, outstanding (in shares) | 1,225,000,000 | 1,224,000,000 |
Treasury stock, common (in shares) | 18,000,000 | 11,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income/(loss) | $ 2,368 | $ 1,024 | $ 361 |
Adjustments to reconcile net income/(loss) to operating cash flows: | |||
Depreciation and amortization | 933 | 910 | 969 |
Amortization of postemployment benefit plans prior service costs/(credits) | (14) | (7) | (122) |
Divestiture-related license income | (56) | (4) | 0 |
Equity award compensation expense | 148 | 197 | 156 |
Deferred income tax provision/(benefit) | (278) | (1,042) | (343) |
Postemployment benefit plan contributions | (23) | (27) | (27) |
Goodwill and intangible asset impairment losses | 913 | 1,634 | 3,399 |
Nonmonetary currency devaluation | 17 | 0 | 6 |
Loss/(gain) on sale of business | (25) | (44) | 2 |
Proceeds from sale of license | 0 | 1,587 | 0 |
Loss/(gain) on extinguishment of debt | (38) | 917 | 124 |
Other items, net | 7 | (187) | (54) |
Changes in current assets and liabilities: | |||
Trade receivables | (228) | 87 | (26) |
Inventories | (1,121) | (144) | (249) |
Accounts payable | 152 | 408 | 207 |
Other current assets | (314) | (32) | 40 |
Other current liabilities | 28 | 87 | 486 |
Net cash provided by/(used for) operating activities | 2,469 | 5,364 | 4,929 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (916) | (905) | (596) |
Payments to acquire business, net of cash acquired | (481) | (74) | 0 |
Settlement of net investment hedges | 208 | (28) | 25 |
Proceeds from sale of business, net of cash disposed and working capital adjustments | 88 | 5,014 | 0 |
Other investing activities, net | 10 | 31 | 49 |
Net cash provided by/(used for) investing activities | (1,091) | 4,038 | (522) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayments of long-term debt | (1,465) | (6,202) | (4,697) |
Proceeds from issuance of long-term debt | 0 | 0 | 3,500 |
Debt prepayment and extinguishment benefit/(costs) | 10 | (924) | (116) |
Proceeds from revolving credit facility | 0 | 0 | 4,000 |
Repayments of revolving credit facility | 0 | 0 | (4,000) |
Proceeds from issuance of commercial paper | 228 | 0 | 0 |
Repayments of commercial paper | (228) | 0 | 0 |
Dividends paid | (1,960) | (1,959) | (1,958) |
Other financing activities, net | (299) | (259) | (60) |
Net cash provided by/(used for) financing activities | (3,714) | (9,344) | (3,331) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (69) | (30) | 62 |
Cash, cash equivalents, and restricted cash | |||
Net increase/(decrease) | (2,405) | 28 | 1,138 |
Balance at beginning of period | 3,446 | 3,418 | 2,280 |
Balance at end of period | 1,041 | 3,446 | 3,418 |
CASH PAID DURING THE PERIOD FOR: | |||
Interest | 937 | 1,196 | 1,286 |
Income taxes, net of refunds | $ 1,260 | $ 1,295 | $ 1,027 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Total Shareholders' Equity [Roll forward] | |||
Beginning balance | $ 49,448 | $ 50,243 | $ 51,749 |
Net income/(loss) excluding redeemable noncontrolling interest | 2,372 | 1,024 | 371 |
Other Comprehensive Income (Loss), Net of Tax, Excluding Redeemable Noncontrolling Interest | (990) | ||
Other comprehensive income/(loss) excluding redeemable noncontrolling interest | (993) | 149 | (78) |
Dividends declared-common stock | (1,972) | (1,979) | (1,973) |
Dividends declared-noncontrolling interest | (7) | (8) | (4) |
Exercise of stock options, issuance of other stock awards, and other | (21) | 19 | 178 |
Ending balance | $ 48,830 | $ 49,448 | $ 50,243 |
Dividends Declared, Per Share [Abstract] | |||
Common stock dividends declared (in dollars per share) | $ 1.60 | $ 1.60 | $ 1.60 |
Noncontrolling interest dividends declared (in dollars per share) | $ 100.30 | $ 108.71 | $ 75.32 |
Common Stock | |||
Total Shareholders' Equity [Roll forward] | |||
Beginning balance | $ 12 | $ 12 | $ 12 |
Ending balance | 12 | 12 | 12 |
Additional Paid-in Capital | |||
Total Shareholders' Equity [Roll forward] | |||
Beginning balance | 53,379 | 55,096 | 56,828 |
Dividends declared-common stock | (1,779) | (1,979) | (1,973) |
Exercise of stock options, issuance of other stock awards, and other | 234 | 262 | 241 |
Ending balance | 51,834 | 53,379 | 55,096 |
Retained Earnings/(Deficit) | |||
Total Shareholders' Equity [Roll forward] | |||
Beginning balance | (1,682) | (2,694) | (3,060) |
Net income/(loss) excluding redeemable noncontrolling interest | 2,363 | 1,012 | 356 |
Exercise of stock options, issuance of other stock awards, and other | 1 | 0 | 10 |
Ending balance | 489 | (1,682) | (2,694) |
Accumulated Other Comprehensive Income/(Losses) | |||
Total Shareholders' Equity [Roll forward] | |||
Beginning balance | (1,824) | (1,967) | (1,886) |
Other Comprehensive Income (Loss), Net of Tax, Excluding Redeemable Noncontrolling Interest | (986) | ||
Other comprehensive income/(loss) excluding redeemable noncontrolling interest | 143 | (81) | |
Ending balance | (2,810) | (1,824) | (1,967) |
Treasury Stock, at Cost | |||
Total Shareholders' Equity [Roll forward] | |||
Beginning balance | (587) | (344) | (271) |
Exercise of stock options, issuance of other stock awards, and other | (260) | (243) | (73) |
Ending balance | (847) | (587) | (344) |
Noncontrolling Interest | |||
Total Shareholders' Equity [Roll forward] | |||
Beginning balance | 150 | 140 | 126 |
Net income/(loss) excluding redeemable noncontrolling interest | 9 | 12 | 15 |
Other Comprehensive Income (Loss), Net of Tax, Excluding Redeemable Noncontrolling Interest | (4) | ||
Other comprehensive income/(loss) excluding redeemable noncontrolling interest | 6 | 3 | |
Dividends declared-noncontrolling interest | (7) | (8) | (4) |
Exercise of stock options, issuance of other stock awards, and other | 4 | ||
Ending balance | $ 152 | $ 150 | $ 140 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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. Before the consummation of the 2015 Merger, Heinz was controlled by Berkshire Hathaway Inc. and 3G Global Food Holdings, LP, following their acquisition of H. J. Heinz Company on June 7, 2013 (the “2013 Heinz Acquisition”). We operate on a 52- or 53-week fiscal year ending on the last Saturday in December in each calendar year. Unless the context requires otherwise, references to years and quarters contained herein pertain to our fiscal years and fiscal quarters. Our 2022 fiscal year was a 53-week period that ended on December 31, 2022, our 2021 fiscal year was a 52-week period that ended on December 25, 2021, and our 2020 fiscal year was a 52-week period that ended on December 26, 2020. Principles of Consolidation The consolidated financial statements include The Kraft Heinz Company and all of our controlled subsidiaries. All intercompany transactions are eliminated. Reportable Segments In the second quarter of 2022, our internal reporting and reportable segments changed. We combined our United States and Canada zones to form the North America zone as a result of previously announced organizational changes, which are intended to advance and support our long-term growth plans by streamlining and synergizing our United States and Canada businesses. Subsequently, we manage and report our operating results through two reportable segments defined by geographic region: North America and International. We have reflected this change in all historical periods presented. 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 accounting 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 and adjustments to certain previously reported financial information to conform to our current period presentation. Held for Sale At December 31, 2022, we classified certain assets as held for sale in our consolidated balance sheet, primarily relating to land use rights across the globe. At December 25, 2021, we classified certain assets as held for sale in our consolidated balance sheet, including inventory in our International segment and certain manufacturing equipment and land use rights across the globe. Cash , Cash Equivalents , and Restricted Cash Cash equivalents include term deposits with banks, money market funds, and all highly liquid investments with original maturities of three months or less. The fair value of cash equivalents approximates the carrying amount. Cash and cash equivalents that are legally restricted as to withdrawal or usage are classified in other current assets or other non-current assets, as applicable, on the consolidated balance sheets. Restricted cash recorded in other non-current assets was $1 million at December 31, 2022 and $1 million at December 25, 2021. Total cash, cash equivalents, and restricted cash was $1,041 million at December 31, 2022 and $3,446 million at December 25, 2021. |
Significant Accounting Policies
Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
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. Our definition of advertising expenses includes advertising production costs, in-store advertising costs, agency fees, brand promotions and events, and sponsorships, in addition to costs to obtain advertising in television, radio, print, digital, and social channels. We recorded advertising expenses of $945 million in 2022, $1,039 million in 2021, and $1,070 million in 2020. We also incur market research costs, which are recorded in SG&A but are excluded from advertising expenses. Research and Development Expense: We expense costs as incurred for product research and development within SG&A. Research and development expenses were approximately $127 million in 2022, $140 million in 2021, and $119 million in 2020. 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 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 11, 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. 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 if we have the contractual right to take possession of the software at any time and it is feasible for us to either run the software on our own hardware or contract with a third party to host the software. These costs are 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. Hosted Cloud Computing Arrangement that is a Service Contract: Deferred implementation costs for hosted cloud computing service arrangements are stated at historical cost and amortized on a straight-line basis over the term of the hosting arrangement that the implementation costs relate to. Deferred implementation costs to be amortized during the next 12 months for these arrangements are included in prepaid expenses and amortized to SG&A. All remaining amounts to be amortized are included in other non-current assets. The corresponding cash flows related to these arrangements will be reported within operating activities. We review the deferred implementation costs for impairment when we believe the deferred costs may no longer be recoverable. Such conditions could include situations where the arrangement is not expected to provide substantive service potential, a significant change occurs in the manner in which the arrangement is used or expected to be used, including early cancellation or termination of the arrangement, or situations where the arrangement has had, or will have, a significant change made to it. In instances where we have concluded that an impairment exists, we accelerate the deferred costs on the consolidated balance sheet for immediate expense recognition in SG&A. Goodwill and Intangible Assets : We maintain 11 reporting units, seven 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 third 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, disposals of significant brands or components of our business, unexpected business disruptions (for example due to a natural disaster, pandemic, 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, changes in income tax rates, changes in interest rates, 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. See Note 8, Goodwill and Intangible Assets , in Item 8, Financial Statements and Supplementary Data , for a discussion of the timing of the annual impairment test. 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 8, 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 the economic benefit from and 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 sheet. 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 the lease 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 the 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 (dependent on tenor and currency and adjusted to reflect collateralization) based on the information available at the lease 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 over the shorter of the estimated useful life of the underlying assets or the lease term. In instances of title transfer, expense is recognized over the useful life. Interest expense on a finance lease is recognized using the effective interest method 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 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 12, 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 and any off-market values on cross-currency swap contracts and the forward points on foreign exchange forward contracts from the assessment and measurement of hedge effectiveness. We recognize the interest accruals and any amortization of off-market values on cross-currency swap contracts in net income/(loss) within interest expense. We amortize the forward points on foreign exchange contracts into net income/(loss) within interest expense over the life of the hedging relationship. • Foreign currency cash flow hedges. We use various financial instruments to mitigate our exposure to changes in exchange rates from third-party and intercompany actual and forecasted transactions. Our principal foreign currency exposures that are hedged include the euro, British pound sterling, and Canadian dollar. These instruments include cross-currency swap contracts and foreign exchange forward and option contracts. Substantially all of these derivative instruments are highly effective and qualify for hedge accounting treatment. We exclude the interest accruals on cross-currency swap contracts (when interest is not a hedged item) and the forward points and option premiums or discounts on foreign exchange contracts from the assessment and measurement of hedge effectiveness and amortize such amounts into net income/(loss) in the same line item as the underlying hedged item over the life of the hedging relationship. • Interest rate cash flow hedges. From time to time, we have used derivative instruments, including interest rate swaps, as part of our interest rate risk management strategy. We have primarily used interest rate swaps to hedge the variability of interest payment cash flows on a portion of our future debt obligations. • Commodity derivatives. We are exposed to price risk related to forecasted purchases of certain commodities that we primarily use as raw materials. We enter into commodity purchase contracts primarily for dairy products, vegetable oils, coffee beans, wheat products, corn products, sugar, meat 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 diesel fuel, packaging products, 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. Foreign currency 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 our consolidated balance sheet. Gains and losses from foreign currency transactions are included in net income/(loss) for the period. Highly Inflationary Accounting: |
New Accounting Standards (Notes
New Accounting Standards (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Standards | New Accounting Standards Accounting Standards Not Yet Adopted Accounting for Contract Assets and Contract Liabilities from Contracts with Customers: In October 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2021-08 to amend the accounting for contract assets and contract liabilities acquired in a business combination under Accounting Standards Codification (“ASC”) 805, Business Combinations . The guidance requires entities engaged in a business combination to recognize and measure contract assets acquired and contract liabilities assumed in accordance with ASC 606, Revenue from Contracts with Customers , rather than at fair value on the acquisition date. The amendments also apply to other contracts such as contract liabilities arising from nonfinancial assets under ASC 610-20, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets . The ASU will be effective beginning in the first quarter of 2023. Early adoption is permitted, including in an interim period. We currently expect to adopt ASU 2021-08 in the first quarter of 2023 on a prospective basis. While the impact of these amendments is dependent on the nature of any future transactions, we currently do not expect this ASU to have a significant impact on our financial statements and related disclosures. Supplier Finance Programs (Topic 405-50) - Disclosure of Supplier Finance Program Obligations: In September 2022, the FASB issued ASU 2022-04 to add disclosure requirements relative to supplier financing programs under ASC 405, Liabilities . The guidance requires entities that maintain supplier financing programs to provide information in their financial statements about their use of supplier finance programs and their effect on the entity’s working capital, liquidity, and cash flows. Specifically, the amendment requires entities to disclose the key terms of their programs, amounts outstanding, balance sheet presentation, and a rollforward of amounts outstanding during the annual period. Only the amount outstanding at the end of the period is required to be disclosed in interim periods. The ASU will be effective beginning in the first quarter of 2023, except for the rollforward requirement, which is effective in fiscal year 2024. Early adoption is permitted. While we currently disclose the amounts outstanding on our existing trade payables programs, we are reviewing the provisions of this new pronouncement but do not expect this ASU to have a significant impact on our financial statements and related disclosures. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions Hemmer Acquisition: On March 31, 2022 (the “Hemmer Acquisition Date”), we acquired a majority of the outstanding equity interests of Companhia Hemmer Indústria e Comércio (“Hemmer”), a Brazilian food and beverage manufacturing company focused on the condiments and sauces category, from certain third-party shareholders (the “Hemmer Acquisition”). The Hemmer Acquisition was accounted for under the acquisition method of accounting for business combinations. Total cash consideration related to the Hemmer Acquisition was approximately 1.3 billion Brazilian reais (approximately $279 million at the Hemmer Acquisition Date). A noncontrolling interest was recognized at fair value, which was determined to be the noncontrolling interest’s proportionate share of the acquiree’s identifiable net assets, as of the Hemmer Acquisition Date. As of the Hemmer Acquisition Date, we acquired 94% of the outstanding shares of Hemmer. In the third quarter of 2022, we completed the redemption of the remaining outstanding shares and own 100% of the controlling interest in Hemmer. We entered into foreign exchange derivative contracts to economically hedge the foreign currency exposure related to the cash consideration for the Hemmer Acquisition. See Note 12, Financial Instruments , for additional information. We utilized fair values at the Hemmer 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 are subject to adjustment during the measurement period (up to one year from the Hemmer Acquisition Date). The primary areas of accounting for the Hemmer Acquisition that are not yet finalized relate to the fair value of certain tangible net assets acquired, residual goodwill, and any related tax impact. The fair values of these net assets acquired are based on management’s estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. While we believe that such preliminary estimates provide a reasonable basis for estimating the fair value of assets acquired and liabilities assumed, we will evaluate any additional information prior to finalization of the fair value. During the measurement period, we will adjust preliminary valuations assigned to assets and liabilities if new information is obtained about facts and circumstances that existed as of the Hemmer Acquisition Date, that, if known, would have resulted in revised values for these items as of that date. The impact of all changes, if any, that do not qualify as measurement period adjustments will be included in current period earnings. The preliminary purchase price allocation to assets acquired and liabilities assumed in the Hemmer Acquisition was (in millions): Initial Allocation (a) Adjustments Updated Allocation Cash $ 1 $ — $ 1 Trade receivables 13 — 13 Inventories 17 — 17 Other current assets 2 — 2 Property, plant and equipment, net 14 — 14 Identifiable intangible assets 122 — 122 Other non-current assets 13 4 17 Short-term debt (9) — (9) Trade payables (11) — (11) Other current liabilities (31) — (31) Long-term debt (11) — (11) Other non-current liabilities (44) — (44) Net assets acquired 76 4 80 Noncontrolling interest (16) — (16) Goodwill on acquisition 219 (4) 215 Total consideration $ 279 $ — $ 279 (a) As reported in Note 4, Acquisitions and Divestitures , to our condensed consolidated financial statements in our Quarterly Report on Form 10-Q for the three months ended June 25, 2022. The Hemmer Acquisition preliminarily resulted in $219 million of non-tax deductible goodwill relating principally to Hemmer’s long-term experience and large presence operating in emerging markets. In the fourth quarter of 2022, a portion of the goodwill became tax deductible following the merger of Hemmer into our existing legal entity structure. This goodwill was assigned to the Latin America (“LATAM”) reporting unit within our International segment. In the fourth quarter of 2022, certain insignificant measurement period adjustments were made to the initial allocation, and the preliminary amount of goodwill was adjusted to $215 million. See Note 8, Goodwill and Intangible Assets , for additional information. The preliminary purchase price allocation to identifiable intangible assets acquired in the Hemmer Acquisition was: Fair Value Weighted Average Life Definite-lived trademarks $ 101 13 Customer-related assets 21 15 Total $ 122 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 Hemmer 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 such date. Just Spices Acquisition: On January 18, 2022 (the “Just Spices Acquisition Date”), we acquired 85% of the shares of Just Spices GmbH (“Just Spices”), a German-based company focused on direct-to-consumer sales of premium spice blends, from certain third-party shareholders (the “Just Spices Acquisition”). The Just Spices Acquisition was accounted for under the acquisition method of accounting for business combinations. Total cash consideration related to the Just Spices Acquisition was approximately 214 million euros (approximately $243 million at the Just Spices Acquisition Date). A noncontrolling interest was recognized at fair value, which was determined to be the noncontrolling interest’s proportionate share of the acquiree’s identifiable net assets, as of the Just Spices Acquisition Date. Under the terms of certain transaction agreements, Just Spices’ other equity holders each have a put option to require us to purchase the remaining equity interests beginning three years after the Just Spices Acquisition Date. If the put option is not exercised, we have a call option to acquire the remaining equity interests of Just Spices. Considering the contractual terms related to the noncontrolling interest, it is classified as redeemable noncontrolling interest on our consolidated balance sheet. Subsequent to the Just Spices Acquisition, the redeemable noncontrolling interest is measured at the greater of the amount that would be paid if settlement occurred as of the balance sheet date based on the contractually defined redemption value and its carrying amount adjusted for the net income/(loss) attributable to the noncontrolling interest. We utilized fair values at the Just Spices Acquisition Date to allocate the total consideration exchanged to the net tangible and intangible assets acquired and liabilities assumed. The purchase price allocation for the Just Spices Acquisition was final as of December 31, 2022. The final purchase price allocation to assets acquired and liabilities assumed in the Just Spices Acquisition was (in millions): Initial Allocation (a) Adjustments Final Allocation Cash $ 2 $ — $ 2 Trade receivables 4 — 4 Inventories 7 — 7 Other current assets 9 — 9 Property, plant and equipment, net 1 — 1 Identifiable intangible assets 172 — 172 Other non-current assets — 7 7 Trade payables (10) — (10) Other current liabilities (12) — (12) Other non-current liabilities (54) — (54) Net assets acquired 119 7 126 Redeemable noncontrolling interest (43) 4 (39) Goodwill on acquisition 167 (11) 156 Total consideration $ 243 $ — $ 243 (a) As reported in Note 4, Acquisitions and Divestitures , to our condensed consolidated financial statements in our Quarterly Report on Form 10-Q for the three months ended March 26, 2022. The Just Spices Acquisition preliminarily resulted in $167 million of non-tax deductible goodwill relating principally to Just Spices’ social media presence. This goodwill was assigned to the Continental Europe reporting unit within our International segment. In the second quarter of 2022, certain insignificant measurement period adjustments were made to the initial allocation, and the preliminary amount of goodwill was adjusted to $163 million. We did not record any measurement period adjustments in the third quarter of 2022. In the fourth quarter of 2022, additional insignificant measurement period adjustments were made to the initial allocation, and the final amount of goodwill was adjusted to $156 million. In the fourth quarter of 2022, we finalized the purchase accounting for the Just Spices Acquisition. See Note 8, Goodwill and Intangible Assets , for additional information. The purchase price allocation to identifiable intangible assets acquired in the Just Spices Acquisition was: Fair Value Weighted Average Life Definite-lived trademarks $ 72 10 Customer-related assets 100 15 Total $ 172 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 Just Spices 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 such date. Assan Foods Acquisition: On October 1, 2021 (the “Assan Foods Acquisition Date”), we acquired all of the outstanding equity interests in Assan Gıda Sanayi ve Ticaret A.Ş. (“Assan Foods”), a condiments and sauces manufacturer based in Turkey, from third parties Kibar Holding Anonim Şirketi and a holder of registered shares of Assan Foods (the “Assan Foods Acquisition”). The Assan Foods Acquisition was accounted for under the acquisition method of accounting for business combinations. Total consideration related to the Assan Foods Acquisition was approximately $79 million, including cash consideration of $70 million and contingent consideration of approximately $9 million. We utilized fair values at the Assan Foods Acquisition Date to allocate the total consideration exchanged to the net tangible and intangible assets acquired and liabilities assumed. The purchase price allocation for the Assan Foods Acquisition was final as of September 24, 2022. The final purchase price allocation to assets acquired and liabilities assumed in the Assan Foods Acquisition was (in millions): Final Allocation Cash $ 4 Trade receivables 24 Inventories 26 Other current assets 2 Property, plant and equipment, net 12 Identifiable intangible assets 16 Other non-current assets 5 Short-term debt (21) Current portion of long-term debt (5) Trade payables (25) Other current liabilities (2) Long-term debt (4) Other non-current liabilities (4) Net assets acquired 28 Goodwill on acquisition 51 Total consideration $ 79 In the fourth quarter of 2021, the Assan Foods Acquisition preliminarily resulted in $64 million of non-tax deductible goodwill relating principally to additional capacity that the Assan Foods manufacturing facilities will provide for our brands in the EMEA East region. This goodwill was assigned to the EMEA East reporting unit within our International segment. Following the measurement period adjustments made in the first quarter of 2022, the preliminary amount of goodwill was adjusted to $51 million as of March 26, 2022. In the second and third quarters of 2022, we did not record any measurement period adjustments. In the third quarter of 2022, we finalized the purchase accounting for the Assan Foods Acquisition. See Note 8, Goodwill and Intangible Assets , for additional information. The purchase price allocation to identifiable intangible assets acquired in the Assan Foods Acquisition was: Fair Value Weighted Average Life Definite-lived trademarks $ 13 10 Customer-related assets 3 10 Total 16 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 Assan Foods 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 such date. In the fourth quarter of 2021, we extinguished approximately $29 million of the short- and long-term debt assumed as a part of the Assan Foods Acquisition, resulting in approximately $1 million of long-term debt remaining related to the Assan Foods Acquisition at December 25, 2021. The loss on extinguishment related to the repayment of this debt was insignificant. Cash payments related to debt extinguishment are classified as cash outflows from financing activities on the consolidated statements of cash flows. Other Acquisitions: In the fourth quarter of 2021, we acquired a majority stake in BR Spices Indústria e Comércio de Alimentos Ltda. (“BR Spices”), a manufacturer of spices and other seasonings in Brazil, for an insignificant amount of cash consideration (the “BR Spices Acquisition”). The noncontrolling interest associated with BR Spices is included in redeemable noncontrolling interest on our consolidated balance sheet at December 31, 2022 and December 25, 2021. Deal Costs: Related to our acquisitions, we incurred insignificant deal costs in 2022 and 2021. We recognized these deal costs in SG&A. There were no deal costs related to acquisitions in 2020. Divestitures Powdered Cheese Transaction: In August 2022, we entered into a definitive agreement with a third party, Kerry Group, to sell our business-to-business powdered cheese business (the “Powdered Cheese Transaction”). The net assets transferred in the Powdered Cheese Transaction include, among other things, the Albany, Minnesota manufacturing facility (collectively, the “Powdered Cheese Disposal Group”). The Powdered Cheese Transaction closed in the fourth quarter of 2022 for total consideration of approximately $108 million. As a result of the Powered Cheese Transaction closing, we recognized a pre-tax gain on sale of business of approximately $26 million. Cheese Transaction: In September 2020, we entered into a definitive agreement with a third party, an affiliate of Groupe Lactalis (“Lactalis”), to sell certain assets in our global cheese business, as well as to license certain trademarks, for total consideration of approximately $3.3 billion, including approximately $3.2 billion of cash consideration and approximately $141 million related to a perpetual license for the Cracker Barrel brand that Lactalis granted to us for certain products (the “Cheese Transaction”). The Cheese Transaction had two primary components. The first component related to the perpetual licenses for the Kraft and Velveeta brands that we granted to Lactalis for certain cheese products (the “ Kraft and Velveeta Licenses”), along with a three-year transitional license that we granted to Lactalis for the Philadelphia brand (the “ Philadelphia License” and collectively, the “Cheese Divestiture Licenses”). The second component related to the net assets transferred to Lactalis (the “Cheese Disposal Group”). The Cheese Transaction closed on November 29, 2021 (the “Cheese Transaction Closing Date”). Of the $3.3 billion total consideration, approximately $1.6 billion was attributed to the Cheese Divestiture Licenses based on the estimated fair value of the licensed portion of each brand. As of the Cheese Transaction Closing Date, the license income related to the Kraft and Velveeta Licenses will be recognized over approximately 30 years and the license income related to the Philadelphia License will be recognized over approximately three years. Related to the Cheese Divestiture Licenses, we recognized approximately $56 million of license income in 2022 and an insignificant amount of license income in 2021, which was recorded as a reduction to SG&A and classified as divestiture-related license income. Additionally, at December 31, 2022, we have recorded approximately $1.5 billion in long-term deferred income and $56 million in other current liabilities on the consolidated balance sheet related to the Cheese Divestiture Licenses. In the first quarter of 2022, we reimbursed Lactalis approximately $20 million following a final inventory count performed after the Cheese Transaction closed. This amount reflects the difference between the estimated and actual value of inventory transferred, which was primarily driven by seasonal fluctuations in finished goods. The payment to Lactalis was recognized in our consolidated statement of cash flows for the year ended December 31, 2022 as a cash outflow from investing activities in proceeds from sale of business, net of cash disposed and working capital adjustments. In the second quarter of 2021, we assessed the fair value less costs to sell of the net assets of the Cheese Disposal Group and recorded an estimated pre-tax loss on sale of business of approximately $27 million, which was recognized in other expense/(income). Following the closing of the Cheese Transaction in the fourth quarter of 2021, we recognized an incremental pre-tax gain on sale of business of $27 million in other expense/(income). In 2021, the total gain/loss on sale of business related to the Cheese Transaction was insignificant. Additional considerations related to the Cheese Transaction included the treatment of the Cheese Divestiture Licenses upon closing of the transaction. In the fourth quarter of 2021, at the time the licensed rights were granted, we reassessed the remaining fair value of the retained portions of the Kraft and Velveeta brands and recorded a non-cash intangible asset impairment loss related to the Kraft brand of approximately $1.24 billion, which was recognized in SG&A. See Note 4, Acquisitions and Divestitures , to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 25, 2021 for additional information related to the Cheese Transaction. Nuts Transaction: In February 2021, we entered into a definitive agreement with a third party, Hormel Foods Corporation, to sell certain assets in our global nuts business for total consideration of approximately $3.4 billion (the “Nuts Transaction”). The net assets transferred in the Nuts Transaction included, among other things, our intellectual property rights to the Planters brand and to the Corn Nuts brand, three manufacturing facilities in the United States, and the associated inventories (collectively, the “Nuts Disposal Group”). As of February 10, 2021, the date the Nuts Disposal Group was determined to be held for sale, we tested the individual assets included within the Nuts Disposal Group for impairment. The net assets of the Nuts Disposal Group had an aggregate carrying amount above their $3.4 billion estimated fair value. We determined that the goodwill within the Nuts Disposal Group was partially impaired. As a result, we recorded a non-cash goodwill impairment loss of $230 million, which was recognized in SG&A, in the first quarter of 2021. Additionally, we recorded an estimated pre-tax loss on sale of business of $19 million in the first quarter of 2021 primarily related to estimated costs to sell, which was recognized in other expense/(income). The Nuts Transaction closed in the second quarter of 2021. As a result of the Nuts Transaction closing, we recognized an incremental pre-tax loss on sale of business of $17 million in other expense/(income) on our consolidated statement of income in the second quarter of 2021. In the third and fourth quarters of 2021, we recorded insignificant adjustments to our estimated costs to sell, which resulted in an insignificant pre-tax gain on sale of business that was recognized in other expense/(income). In 2021, the total pre-tax loss on sale of business for the Nuts Transaction was $34 million, all of which was recognized in other expense/(income) on our consolidated statement of income. See Note 4, Acquisitions and Divestitures , to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 25, 2021 for additional information related to the Nuts Transaction. Deal Costs: Related to our divestitures, we incurred insignificant deal costs in 2022, 2021, and 2020. We recognized these deal costs in SG&A. |
Restructuring Activities (Notes
Restructuring Activities (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring ActivitiesAs 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, 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, and 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 reducing our overall cost structure and streamlining our organizational design. In 2022, we eliminated approximately 575 positions related to these programs. As of December 31, 2022, we expect to eliminate approximately 560 additional positions in 2023, primarily outside of the United States and Canada. In 2022, restructuring activities resulted in expenses of $74 million and included $34 million of severance and employee benefit costs, $12 million of asset-related costs, and $28 million of other implementation costs. Restructuring activities resulted in expenses of $84 million in 2021 and income of $2 million in 2020. Our net liability balance for restructuring project costs that qualify as exit and disposal costs under U.S. GAAP was (in millions): Severance and Employee Benefit Costs Other Exit Costs Total Balance at December 25, 2021 $ 27 $ 16 $ 43 Charges/(credits) 34 — 34 Cash payments (33) (5) (38) Balance at December 31, 2022 $ 28 $ 11 $ 39 We expect the liability for severance and employee benefit costs as of December 31, 2022 to be paid by the end of 2023. 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 2023 and 2026. Total Expenses/(Income): Total expense/(income) related to restructuring activities by income statement caption, were (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Severance and employee benefit costs - Cost of products sold $ 1 $ 12 $ — Severance and employee benefit costs - SG&A 33 21 1 Severance and employee benefit costs - Other expense/(income) — 1 — Asset-related costs - Cost of products sold 12 — 13 Other costs - Cost of products sold 14 1 (33) Other costs - SG&A 14 49 34 Other costs - Other expense/(income) — — (17) $ 74 $ 84 $ (2) We do not include our restructuring activities within Segment Adjusted EBITDA (as defined in Note 20, Segment Reporting ). The pre-tax impact of allocating such expenses/(income) to our segments would have been (in millions): December 31, 2022 December 25, 2021 December 26, 2020 North America $ 40 $ 15 $ 4 International 25 22 (15) General corporate expenses 9 47 9 $ 74 $ 84 $ (2) |
Inventories (Notes)
Inventories (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in millions): December 31, 2022 December 25, 2021 Packaging and ingredients $ 1,032 $ 571 Spare parts 208 208 Work in process 334 268 Finished product 2,077 1,682 Inventories $ 3,651 $ 2,729 At December 25, 2021, inventories excluded amounts classified as held for sale. |
Property, Plant and Equipment (
Property, Plant and Equipment (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, net consisted of the following (in millions): December 31, 2022 December 25, 2021 Land $ 200 $ 207 Buildings and improvements 2,536 2,508 Equipment, software and other 7,055 6,957 Construction in progress 1,161 1,002 10,952 10,674 Accumulated depreciation (4,212) (3,868) Property, plant and equipment, net $ 6,740 $ 6,806 At December 31, 2022 and December 25, 2021, property, plant and equipment, net, excluded amounts classified as held for sale. Depreciation expense was $672 million in 2022, $671 million in 2021, and $705 million in 2020. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Historically, we have tested 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. As discussed in further detail below, we performed an annual test as of March 27, 2022, the first day of our second quarter (the “Q2 2022 Annual Impairment Test”). Beginning in the third quarter of 2022 and for subsequent annual periods, we voluntarily changed the annual impairment assessment date to the first day of our third quarter and performed an additional annual impairment test as of June 26, 2022 (the “Q3 2022 Annual Impairment Test”). We believe this measurement date, which represents a change in the method of applying an accounting principle, better aligns with the timing of our strategic business planning process and financial forecasts, which are key components of the annual impairment tests and are typically completed in the third quarter of our fiscal year. Goodwill: Changes in the carrying amount of goodwill, by segment, were (in millions): North America International Total Balance at December 26, 2020 $ 29,929 $ 3,160 $ 33,089 Impairment losses (35) (53) (88) Acquisitions — 74 74 Divestitures (1,662) — (1,662) Translation adjustments and other 10 (127) (117) Balance at December 25, 2021 $ 28,242 $ 3,054 $ 31,296 Impairment losses (455) — (455) Acquisitions — 386 386 Measurement period adjustments — (18) (18) Divestitures (37) — (37) Translation adjustments and other (65) (274) (339) Balance at December 31, 2022 $ 27,685 $ 3,148 $ 30,833 In the first quarter of 2022, we closed the Just Spices Acquisition in our International segment, which resulted in preliminary goodwill of $167 million. Additionally, we recorded measurement period adjustments, primarily related to the Assan Foods Acquisition that impacted goodwill. The Assan Foods Acquisition closed in the fourth quarter of 2021 and is in our International segment. These measurement period adjustments resulted in a net decrease to goodwill on acquisitions of approximately $15 million in the first quarter of 2022. However, as each of the affected reporting units (EMEA East and LATAM in our International segment) had no goodwill balance remaining, we recorded a reduction of the $53 million non-cash impairment loss recorded to SG&A in the fourth quarter of 2021 that fully impaired the goodwill related to the associated acquisitions and their respective reporting units. The impairment reduction of $11 million, which reflects the measurement period adjustment of $15 million adjusted for the impact of foreign currency, was recorded in SG&A in our International segment in the first quarter of 2022. Following these measurement period adjustments, there was no goodwill in the EMEA East or Latin America reporting units. See Note 9, Goodwill and Intangible Assets , to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 25, 2021 for additional information related to the impairment losses recorded in the fourth quarter of 2021. See Note 4, Acquisitions and Divestitures , for additional information related to these transactions and the related financial statement impacts. In the second quarter of 2022, we closed the Hemmer Acquisition in our International segment, which resulted in preliminary goodwill of $219 million . Additionally, we recorded insignificant measurement period adjustments related to the Just Spices Acquisition that impacted goodwill. These measurement period adjustments resulted in a decrease to goodwill on acquisitions of approximately $4 million in the second quarter of 2022. In the fourth quarter of 2022, we divested goodwill of approximately $37 million related to the Powdered Cheese Transaction. Additionally, we recorded measurement period adjustments related to the Just Spices Acquisition and Hemmer Acquisition that impacted goodwill. These measurement period adjustments were recorded in our International segment and resulted in a decrease to goodwill on acquisition of approximately $11 million in the fourth quarter of 2022. At December 26, 2020, goodwill excluded amounts classified as held for sale related to the Cheese Transaction, which closed in the fourth quarter of 2021. Additionally, the 2021 amounts included in divestitures in the table above represent the goodwill that was previously reclassified to assets held for sale and tested and determined to be partially impaired in connection with the Nuts Transaction. The resulting impairment loss of $230 million was recognized in the first quarter of 2021. The Nuts Transaction closed in the second quarter of 2021. See Note 4, Acquisitions and Divestitures , for additional information related to the Cheese Transaction and the Nuts Transaction and their financial statement impacts. 2022 Goodwill Impairment Testing As described in Note 1, Basis of Presentation , in the second quarter of 2022, our internal reporting and reportable segments changed. We combined our United States and Canada zones to form the North America zone. Subsequently, we manage and report our operating results through two reportable segments defined by geographic region: North America and International. We have reflected this change in all historical periods presented. The reorganization of our internal reporting and reportable segments changed the composition of certain of our reporting units wherein certain of our existing United States reporting units (primarily Enhancers, Specialty, and Away From Home (“ESA”); Kids, Snacks, and Beverages (“KSB”); Meal Foundations and Coffee (“MFC”); and Puerto Rico) and our existing Canada reporting units (Canada Retail and Canada Foodservice) have been reorganized into the following new North America reporting units: Taste, Meals, and Away From Home (“TMA”); Fresh, Beverages, and Desserts (“FBD”); Canada and North America Coffee (“CNAC”); and Other North America. As a result of this reorganization, we reassigned assets and liabilities to the applicable reporting units and allocated goodwill using the relative fair value approach. We performed an interim impairment test (or transition test) on the affected reporting units on both a pre- and post-reorganization basis. We performed our pre-reorganization impairment test as of March 27, 2022, which was our first day of the second quarter of 2022. There were six reporting units affected by the reassignment of assets and liabilities that maintained a goodwill balance as of our pre-reorganization impairment test date. These reporting units were ESA, KSB, MFC, Puerto Rico, Canada Retail, and Canada Foodservice. One other reporting unit did not have a goodwill balance as of our pre-reorganization impairment test date. As part of our pre-reorganization impairment test, we utilized the discounted cash flow method under the income approach to estimate the fair values as of March 27, 2022 for the six reporting units noted above. As a result of our pre-reorganization impairment test, we recognized a non-cash impairment loss of approximately $235 million in SG&A in our North America segment in the second quarter of 2022. This included a $221 million impairment loss related to our Canada Retail reporting unit, which had a goodwill carrying amount of approximately $1.2 billion after impairment, and a $14 million impairment loss related to our Puerto Rico reporting unit, which represented all of the goodwill associated with the Puerto Rico reporting unit. The impairment of our Canada Retail reporting unit was primarily driven by an increase in the discount rate, which was impacted by higher interest rates and other market inputs, as well as a revised downward outlook for operating margin. The impairment of our Puerto Rico reporting unit was primarily driven by a revised downward outlook for operating margin. The other four reporting units for which no impairment charge was required were as follows: ESA, which had a goodwill carrying amount of approximately $11.4 billion; KSB, which had a goodwill carrying amount of approximately $9.3 billion; MFC, which had a goodwill carrying amount of approximately $6.0 billion; and Canada Foodservice, which had a goodwill carrying amount of approximately $158 million. We performed our post-reorganization impairment test in conjunction with our Q2 2022 Annual Impairment Test and tested the new North America reporting units (TMA, FBD, CNAC, and Other North America) along with the reporting units in our International segment. The new North America reporting units’ goodwill carrying amounts for the post-reorganization and Q2 2022 Annual Impairment Test reflected the pre-reorganization test results, including impairments recorded. We tested our reporting units for impairment as of the first day of our second quarter, which was March 27, 2022 for our Q2 2022 Annual Impairment Test. In performing this test, we incorporated information that was known through the date of filing of our Quarterly Report on Form 10-Q for the period ended June 25, 2022. We utilized the discounted cash flow method under the income approach to estimate the fair value of our reporting units. As a result of our Q2 2022 Annual Impairment Test, we determined that the fair value of each of the reporting units tested was in excess of its carrying amount. We performed our Q3 2022 Annual Impairment Test as of June 26, 2022, which was our first day of the third quarter of 2022. In performing this test, we incorporated information that was known through the date of filing of our Quarterly Report on Form 10-Q for the period ended September 24, 2022. We utilized the discounted cash flow method under the income approach to estimate the fair value of our reporting units. As a result of our Q3 2022 Annual Impairment Test, we recognized a non-cash impairment loss of approximately $220 million in SG&A in our North America segment related to our CNAC reporting unit. The impairment of our CNAC reporting unit was primarily driven by reduced revenue growth assumptions and negative macroeconomic factors, including increased interest rates and foreign currency exchange rates for the Canadian dollar relative to the U.S. dollar. As of December 31, 2022, we maintain 11 reporting units, seven of which comprise our goodwill balance. These seven reporting units had an aggregate goodwill carrying amount of $30.8 billion at December 31, 2022. As of the Q3 2022 Annual Impairment Test, our reporting units with 20% or less fair value over carrying amount had an aggregate goodwill carrying amount after impairment of $16.4 billion and included TMA, CNAC, and Continental Europe; and our reporting units with between 20%-50% fair value over carrying amount had an aggregate goodwill carrying amount of $14.5 billion and included FBD, Northern Europe, Asia, and LATAM. Accumulated impairment losses to goodwill were $11.3 billion as of December 31, 2022 and $10.9 billion at December 25, 2021. 2021 Goodwill Impairment Testing In the first quarter of 2021, we announced the Nuts Transaction and determined that the Nuts Disposal Group was held for sale. Accordingly, based on a relative fair value allocation, we reclassified $1.7 billion of goodwill to assets held for sale, which included a portion of goodwill from four of our reporting units. The Nuts Transaction primarily affected our KSB reporting unit but also affected, to a lesser extent, our ESA, Canada Foodservice, and Puerto Rico reporting units. These reporting units were evaluated for impairment prior to their representative inclusion in the Nuts Disposal Group as well as on a post-reclassification basis. The fair value of all reporting units was determined to be in excess of their carrying amounts in both scenarios and, therefore, no impairment was recorded. We performed our 2021 annual impairment test as of March 28, 2021, which was the first day of our second quarter in 2021. We utilized the discounted cash flow method under the income approach to estimate the fair value of our reporting units. As a result of our 2021 annual impairment test, we recognized a non-cash impairment loss of approximately $35 million in SG&A in the second quarter of 2021 related to our Puerto Rico reporting unit within our North America segment. With the update of our five-year operating plan in the second quarter of 2021, we established a revised downward outlook for net sales for this reporting unit. See Note 9, Goodwill and Intangible Assets , to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 25, 2021 for additional information on this impairment loss. In the fourth quarter of 2021, we completed the Assan Foods Acquisition and the BR Spices Acquisition, both in our International segment. We assigned the goodwill related to the Assan Foods Acquisition to our EMEA East reporting unit and the goodwill related to the BR Spices Acquisition to our LATAM reporting unit. Prior to these acquisitions, the EMEA East and LATAM reporting units had no goodwill carrying amounts due to previous impairments. The acquisitions changed the composition of each of the reporting units, triggering an interim impairment test. We determined that the carrying amount of each reporting unit exceeded its fair value as of December 25, 2021. As a result, we recognized a non-cash impairment loss of $53 million in SG&A in our International segment, which represented all of the goodwill of the EMEA East and LATAM reporting units. 2020 Goodwill Impairment Testing In the first quarter of 2020, following changes to our internal reporting and reportable segments, the composition of certain of our reporting units changed, and we performed an interim impairment test (or transition test) on the affected reporting units on both a pre- and post-reorganization basis. We performed our pre-reorganization impairment test as of December 29, 2019, which was our first day of 2020. There were no impairment losses resulting from our pre-reorganization impairment test. We performed our post-reorganization impairment test as of December 29, 2019. There were six reporting units in scope for our post-reorganization impairment test: Northern Europe, Continental Europe, Asia, Australia, New Zealand, and Japan (“ANJ”), LATAM, and Puerto Rico. As a result of our post-reorganization impairment test, we recognized a non-cash impairment loss of $226 million in SG&A in the first quarter of 2020 related to two reporting units contained within our International segment, including $83 million related to our ANJ reporting unit and $143 million related to our LATAM reporting unit, which represented all of the goodwill associated with these reporting units. The remaining reporting units tested as part of our post-reorganization impairment test each had excess fair value over carrying amount as of December 29, 2019. We performed our 2020 annual impairment test as of March 29, 2020, which was the first day of our second quarter in 2020. 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 2020 annual impairment test, we identified impairments related to our U.S. Foodservice, Canada Retail, Canada Foodservice, and EMEA East reporting units. As a result, we recognized a non-cash impairment loss of $1.8 billion in SG&A in the second quarter of 2020, which included an $815 million impairment loss in our Canada Retail reporting unit within our North America segment, a $655 million impairment loss in our U.S. Foodservice reporting unit within our North America segment, a $205 million impairment loss in our Canada Foodservice reporting unit within our North America segment, and a $142 million impairment loss in our EMEA East reporting unit within our International segment. These impairments were primarily due to the completion of our enterprise strategy and five-year operating plan in the second quarter of 2020. In the third quarter of 2020, following changes to our zone reporting structure, the composition of certain of our reporting units changed and we performed an interim impairment test (or transition test) on the affected reporting units on both a pre- and post-reorganization basis. We performed our pre-reorganization impairment test as of June 28, 2020, which was our first day of the third quarter of 2020. There were no impairment losses resulting from this pre-reorganization impairment test. We performed our post-reorganization impairment test as of June 28, 2020. There were three reporting units in scope for our post-reorganization impairment test: ESA, KSB, and MFC. These reporting units, which were tested as part of this post-reorganization impairment test, each had excess fair value over carrying amount as of June 28, 2020. Additionally, in the third quarter of 2020, we announced the Cheese Transaction and determined that the Cheese Disposal Group was held for sale. Accordingly, based on a relative fair value allocation, we reclassified $580 million of goodwill to assets held for sale, which included a portion of goodwill from seven of our reporting units. Following the reclassification of a portion of goodwill from our reporting units, we determined that a triggering event had occurred for the remaining portion of each of the impacted reporting units, and we tested each for impairment as of September 15, 2020, the triggering event date. The triggering event impairment test did not result in an impairment of the remaining portion of any impacted reporting units. In the third quarter of 2020, we recorded a non-cash impairment loss of $300 million in SG&A, which was related to the Cheese Disposal Group’s goodwill. See Note 4, Acquisitions and Divestitures , for additional information on the Cheese Transaction and its financial statement impacts. Additional Goodwill Considerations 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. Our current expectations also include certain assumptions that could be negatively impacted if we are unable to meet our pricing expectations in relation to inflation. If current expectations of future growth rates and margins are not met, if market factors outside of our control, such as discount rates, income tax rates, foreign currency exchange rates, or inflation, change, or if management’s expectations or plans otherwise change, including updates to our long-term operating plans, then one or more of our reporting units might become impaired in the future. Additionally, any decisions to divest certain non-strategic assets has led, and could in the future lead, to goodwill impairments. Our reporting units that have 20% or less excess fair value over carrying amount as of the Q3 2022 Annual Impairment Test 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 the Q3 2022 Annual Impairment Test, these amounts are also associated with the 2013 Heinz Acquisition and the 2015 Merger and were initially recorded at the time of acquisition on our consolidated balance sheet at their estimated acquisition date fair values. Therefore, if any assumptions, estimates, or market factors 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 26, 2020 $ 42,267 Impairment losses (1,307) Divestitures (1,487) Translation adjustments and other (54) Balance at December 25, 2021 $ 39,419 Impairment losses (462) Translation adjustments and other (405) Balance at December 31, 2022 $ 38,552 2022 Indefinite-Lived Intangible Asset Impairment Testing We performed our Q2 2022 Annual Impairment Test as of March 27, 2022, which was the first day of our second quarter in 2022. As a result of our Q2 2022 Annual Impairment Test, we recognized a non-cash impairment loss of $395 million in SG&A in our North America segment in the second quarter of 2022 related to four brands, Maxwell House , Miracle Whip , Jet Puffed , and Classico. We utilized the relief from royalty method under the income approach to estimate the fair values of the Maxwell House, Jet Puffed , and Classico brands and the excess earnings method under the income approach to estimate the fair value of the Miracle Whip brand. The impairments of the Maxwell House, Jet Puffed , and Classico brands were primarily due to downward revisions in expected future operating margins as well as an increase in the discount rate, which was impacted by higher interest rates and other market inputs. The impairment of the Miracle Whip brand was primarily due to an increase in the discount rate as well as downward revisions in expected future operating margins due to changes in expectations for commodity input costs, including soybean oil. These brands had an aggregate carrying amount of $3.2 billion prior to these impairments and $2.8 billion after these impairments. We performed our Q3 2022 Annual Impairment Test as of June 26, 2022, which was our first day of the third quarter of 2022. As a result of our Q3 2022 Annual Impairment Test we recognized a non-cash impairment loss of $67 million in SG&A in the third quarter of 2022 related to two brands, Jet Puffed and Plasmon . We utilized the relief from royalty method under the income approach to estimate the fair values and recorded non-cash impairment losses of $50 million in our North America segment and $17 million in our International segment, consistent with ownership of the trademarks. The impairment of these brands was primarily due to reduced revenue growth assumptions. After the impairments, the aggregate carrying amount of these brands was $204 million. Our indefinite-lived intangible asset balance primarily consists of a number of individual brands, which had an aggregate carrying amount of $38.6 billion at December 31, 2022. As of the Q3 2022 Annual Impairment Test, brands with 20% or less fair value over carrying amount had an aggregate carrying amount after impairment of $16.6 billion, brands with between 20%-50% fair value over carrying amount had an aggregate carrying amount of $2.5 billion, and brands that had over 50% fair value over carrying amount had an aggregate carrying amount of $19.4 billion. 2021 Indefinite-Lived Intangible Asset Impairment Testing We performed our 2021 annual impairment test as of March 28, 2021, which was the first day of our second quarter in 2021. As a result of our 2021 annual impairment test, we recognized a non-cash impairment loss of $69 million in SG&A in the second quarter of 2021 related to two brands, Plasmon and Maxwell House . We utilized the relief from royalty method under the income approach to estimate the fair values and recorded non-cash impairment losses of $45 million in our International segment related to Plasmon and $24 million in our North America segment related to Maxwell House , consistent with the ownership of the trademarks. The impairment of the Plasmon brand was largely due to downward revised revenue expectations for infant nutrition in Italy. The impairment of the Maxwell House brand was primarily due to downward revised revenue expectations for mainstream coffee in the U.S. In the fourth quarter of 2021, following the monetization of the licensed portions of the Kraft and Velveeta brands in connection with the closing of the Cheese Transaction, we performed an interim impairment test and utilized the excess earnings method under the income approach to estimate the fair value on these brands as of November 29, 2021, the Cheese Transaction Closing Date. While the Velveeta brand had a fair value in excess of its carrying amount, the Kraft brand had a fair value below its carrying amount. Accordingly, we recorded a non-cash impairment loss of $1.2 billion in SG&A in the fourth quarter of 2021 related to the Kraft brand. We recognized this impairment loss in our North America segment, consistent with the ownership of the Kraft trademark. 2020 Indefinite-Lived Intangible Asset Impairment Testing We performed our 2020 annual impairment test as of March 29, 2020, which was the first day of our second quarter in 2020. As a result of our 2020 annual impairment test, we recognized a non-cash impairment loss of $1.1 billion in SG&A in the second quarter of 2020 primarily related to nine brands ( Oscar Mayer , Maxwell House , Velveeta , Cool Whip , Plasmon , ABC , Classico , Wattie’s , and Planters ), which included impairment losses of $956 million in our North America segment and $100 million in our International segment, consistent with the ownership of the trademarks. We utilized the excess earnings method and the relief from royalty method under the income approach to estimate the fair values and recognized a $626 million impairment loss related to the Oscar Mayer brand, a $140 million impairment loss related to the Maxwell House brand, and a $290 million impairment loss primarily related to seven other brands ( Velveeta , Cool Whip , Plasmon , ABC , Classico , Wattie’s , and Planters ). Additional Indefinite-Lived Intangible Asset Considerations 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. Our current expectations also include certain assumptions that could be negatively impacted if we are unable to meet our pricing expectations in relation to inflation. If current expectations of future growth rates and margins are not met, if market factors outside of our control, such as discount rates, income tax rates, foreign currency exchange rates, or inflation, change, or if management’s expectations or plans otherwise change, including updates to our long-term operating plans, then one or more of our brands might become impaired in the future. Additionally, any decisions to divest certain non-strategic assets has led, and could in the future lead, to intangible asset impairments. Our brands that were impaired 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 the Q3 2022 Annual Impairment Test 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 the Q3 2022 Annual Impairment Test, these amounts are also associated with the 2013 Heinz Acquisition and the 2015 Merger and were initially recorded at the time of acquisition on our consolidated balance sheet at their estimated acquisition date fair values. Therefore, if any assumptions, estimates, or market factors change in the future, these amounts are also susceptible to impairments. Definite-lived intangible assets: Definite-lived intangible assets were (in millions): December 31, 2022 December 25, 2021 Gross Accumulated Net Gross Accumulated Net Trademarks $ 2,223 $ (649) $ 1,574 $ 2,091 $ (556) $ 1,535 Customer-related assets 3,690 (1,177) 2,513 3,617 (1,040) 2,577 Other 13 (3) 10 17 (6) 11 $ 5,926 $ (1,829) $ 4,097 $ 5,725 $ (1,602) $ 4,123 At December 25, 2021, definite-lived intangible assets excluded amounts classified as held for sale. Amortization expense for definite-lived intangible assets was $261 million in 2022, $239 million in 2021, and $264 million in 2020. Aside from amortization expense, the change in definite-lived intangible assets from December 25, 2021 to December 31, 2022 primarily reflects $315 million of additions, which are largely related to the Hemmer Acquisition, the Just Spices Acquisition, and the Assan Foods Acquisition, the impact of foreign currency, and $7 million of non-cash impairment losses related to two trademarks in our International segment. See Note 4, Acquisitions and Divestitures , for additional information on these acquisitions. The impairment of definite-lived intangible assets in the third quarter of 2022 relates to two trademarks that had a net carrying value that was deemed not to be recoverable. In the second quarter of 2021, we recorded $9 million of non-cash impairment losses to SG&A related to a trademark in our International segment that had a net carrying value that was deemed not to be recoverable. We estimate that amortization expense related to definite-lived intangible assets will be approximately $260 million in 2023 and $250 million in each of the following four years. |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes 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 31, 2022 December 25, 2021 December 26, 2020 Income/(loss) before income taxes: United States $ 1,575 $ (215) $ 363 Non-U.S. 1,391 1,923 667 Total $ 2,966 $ 1,708 $ 1,030 Provision for/(benefit from) income taxes: Current: U.S. federal $ 620 $ 1,421 $ 634 U.S. state and local 79 120 91 Non-U.S. 177 185 287 876 1,726 1,012 Deferred: U.S. federal (192) (1,086) (232) U.S. state and local (35) (211) (109) Non-U.S. (51) 255 (2) (278) (1,042) (343) Total provision for/(benefit from) income taxes $ 598 $ 684 $ 669 We record tax benefits related to the exercise of stock options and other equity instruments within our tax provision. Accordingly, we recognized an insignificant tax benefit in our consolidated statements of income in each of 2022, 2021, and 2020 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 31, 2022 December 25, 2021 December 26, 2020 U.S. federal statutory tax rate 21.0 % 21.0 % 21.0 % Tax on income of foreign subsidiaries (8.2) % (12.9) % (26.1) % U.S. state and local income taxes, net of federal tax benefit 1.8 % (0.5) % 0.6 % Audit settlements and changes in uncertain tax positions 1.3 % 0.4 % 3.7 % Global intangible low-taxed income 1.8 % 5.5 % 6.5 % Goodwill impairment 3.9 % 4.7 % 57.2 % (Losses)/gains related to acquisitions and divestitures 0.3 % 12.9 % 0.1 % Movement of valuation allowance reserves 0.8 % 0.1 % (0.4) % Deferred tax effect of tax law changes (0.9) % 9.8 % (2.1) % Deferred tax adjustments (1.1) % 0.3 % 2.8 % Other (0.5) % (1.2) % 1.7 % Effective tax rate 20.2 % 40.1 % 65.0 % 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 goodwill impairment and other items on the effective tax rate shown in the table above are affected by income/(loss) before income taxes. The percentage point impacts on the effective tax rates fluctuate due to income/(loss) before income taxes, which included goodwill and intangible asset impairment losses in all years presented in the table. 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. Our 2022 effective tax rate was an expense of 20.2% on pre-tax income. Our effective tax rate was impacted by the favorable geographic mix of pre-tax income in various non-U.S. jurisdictions and certain favorable items, primarily the decrease in deferred tax liabilities due to the merger of certain foreign entities, the revaluation of deferred tax balances due to changes in state tax laws, and changes in estimates of certain 2021 U.S. income and deductions. This impact was partially offset by the impact of certain unfavorable items, primarily non-deductible goodwill impairments, the impact of the federal tax on global intangible low-taxed income (“GILTI”), and the establishment of uncertain tax positions and valuation allowance reserves. Our 2021 effective tax rate was an expense of 40.1% on pre-tax income. Our effective tax rate was unfavorably impacted by rate reconciling items, primarily the tax impacts related to acquisitions and divestitures, which mainly reflect the impacts of the Nuts Transaction and Cheese Transaction, partially offset by 2021 capital losses; the revaluation of our deferred tax balances due to changes in international and state tax rates, mainly an increase in U.K. tax rates; the impact of the federal tax on GILTI; and non-deductible goodwill impairments. These impacts were partially offset by a favorable geographic mix of pre-tax income in various non-U.S. jurisdictions. Our 2020 effective tax rate was an expense of 65.0% on pre-tax income. Our effective tax rate was unfavorably impacted by rate reconciling items, primarily related to non-deductible goodwill impairments, the impact of the federal tax on GILTI, and the revaluation of our deferred tax balances due to changes in international tax laws. These impacts were partially offset by a more favorable geographic mix of pre-tax income in various non-U.S. jurisdictions and the favorable impact of establishing certain deferred tax assets for state tax deductions. See Note 8, Goodwill and Intangible Assets , for additional information related to our impairment losses. See Note 4, Acquisitions and Divestitures , for additional information on our acquisitions and divestitures. 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 31, 2022 December 25, 2021 Deferred income tax liabilities: Intangible assets, net $ 9,985 $ 10,212 Property, plant and equipment, net 680 748 Right-of-use assets 131 110 Other 408 455 Deferred income tax liabilities 11,204 11,525 Deferred income tax assets: Other employee benefits (111) (119) Deferred income (356) (369) Lease liabilities (139) (115) Other (693) (621) Deferred income tax assets (1,299) (1,224) Valuation allowance 96 101 Net deferred income tax liabilities $ 10,001 $ 10,402 The 2021 deferred income tax assets and liabilities reflected in the above table have been adjusted principally to reflect deferred taxes on the gross up of the operating lease right-of-use assets and the operating lease liabilities under ASU 2016-02, Leases (Topic 842) . This update had the effect of increasing both the total deferred income tax assets and the deferred income tax liabilities by $210 million for the year ended December 25, 2021. These adjustments have no net impact on the net deferred income tax liabilities or on the consolidated financial statements and we do not believe they are material to the annual consolidated financial statements. The decrease in net deferred income tax liabilities from December 25, 2021 to December 31, 2022 was primarily driven by intangible asset impairment losses in 2022. See Note 8, Goodwill and Intangible Assets , for additional information on the impairment losses. At December 31, 2022, foreign operating loss carryforwards totaled $621 million. Of that amount, $47 million expire between 2023 and 2042; the other $575 million do not expire. We have recorded $180 million of deferred tax assets related to these foreign operating loss carryforwards. Deferred tax assets of $22 million have been recorded for U.S. state and local operating loss carryforwards. These losses expire between 2023 and 2042. At December 31, 2022, tax credit carryforwards totaled $55 million, which included state tax credits of $22 million, foreign credits of $18 million, and U.S. foreign tax credits of $15 million. Uncertain Tax Positions: At December 31, 2022, our unrecognized tax benefits for uncertain tax positions were $455 million. If we had recognized all of these benefits, the impact on our effective tax rate would have been $425 million. It is reasonably possible that our unrecognized tax benefits will decrease by as much as $3 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 31, 2022 December 25, 2021 December 26, 2020 Balance at the beginning of the period $ 441 $ 421 $ 406 Increases for tax positions of prior years 8 13 13 Decreases for tax positions of prior years (27) (51) (34) Increases based on tax positions related to the current year 53 75 57 Decreases due to settlements with taxing authorities (6) (1) (8) Decreases due to lapse of statute of limitations (14) (16) (13) Balance at the end of the period $ 455 $ 441 $ 421 Our unrecognized tax benefits increased during 2022 and 2021 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. We include interest and penalties related to uncertain tax positions in our tax provision. Our provision for/(benefit from) income taxes included a $20 million expense in 2022, a $9 million expense in 2021, and a $10 million expense in 2020 related to interest and penalties. Accrued interest and penalties were $100 million as of December 31, 2022 and $81 million as of December 25, 2021. Other Income Tax Matters: Tax Examinations: We are currently under examination for income taxes by the IRS for the years 2018 and 2019. We are continuing to respond to Information Document Requests. We have received a draft economist report and expect to receive a Notice of Proposed Adjustment relating to transfer pricing with our foreign subsidiaries asserting that our U.S. taxable income should have been higher in 2018 and 2019, which would result in additional U.S. tax expense for 2018 and 2019 plus interest and potential penalties. We strongly disagree with the IRS’s suggested position, believe that our tax positions are properly supported, and intend to vigorously contest the position taken by the IRS and pursue all available administrative and judicial remedies. We continue to maintain our operating model and believe our income tax reserves are appropriate for all open tax years and that final adjudication of this matter will not have a material impact on our results of operations and cash flows. However, the ultimate outcome of this matter is uncertain, and if we are required to pay the IRS additional U.S. taxes, interest, and potential penalties, our results of operations and cash flows could be materially affected. In the normal course of business, we are subject to examination by taxing authorities throughout the world, including such major jurisdictions as Brazil, Canada, Italy, the Netherlands, the United Kingdom, and the United States. As of December 31, 2022, we have substantially concluded all national income tax matters through 2020 for the Netherlands, through 2017 for the United States, through 2014 for Italy, through 2013 for the United Kingdom and Canada, and through 2013, with the exception of 2007 and 2008 which are under litigation, for Brazil. We have substantially concluded all U.S. state income tax matters through 2007. Cash Held by International Subsidiaries: Our undistributed historic earnings in foreign subsidiaries through December 31, 2017 are currently not considered to be indefinitely reinvested. Related to these undistributed historic earnings, we had recorded a deferred tax liability of approximately $10 million on approximately $90 million of historic earnings at December 31, 2022 and a deferred tax liability of approximately $10 million on approximately $135 million of historic earnings at December 25, 2021. The deferred tax liability relates to local withholding taxes that will be owed when this cash is distributed. 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, if repatriated, related to our 2018 through 2022 accumulated earnings of certain international subsidiaries is approximately $50 million. Divestitures: Related to the Cheese Transaction, we paid cash taxes of approximately $620 million in the second quarter of 2022. Related to the Nuts Transaction, we paid cash taxes of approximately $700 million in the second half of 2021. On August 16, 2022, the Inflation Reduction Act was signed into law in the United States. We are currently evaluating the law and do not expect the Inflation Reduction Act to have a significant impact on our financial statements, including our annual estimated effective tax rate. |
Employees' Stock Incentive Plan
Employees' Stock Incentive Plans (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Employees' Stock Incentive Plans | Employees’ Stock Incentive PlansWe 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 2022, 2021, and 2020: 2020 Omnibus Incentive Plan: In May 2020, our stockholders approved The Kraft Heinz Company 2020 Omnibus Incentive Plan (the “2020 Omnibus Plan”), which was adopted by our Board of Directors (“Board”) in March 2020. The 2020 Omnibus Plan became effective March 2, 2020 (the “Plan Effective Date”) and will expire on the tenth anniversary of the Plan Effective Date. The 2020 Omnibus Plan authorizes the issuance of up to 36 million shares of our common stock for awards to employees, non-employee directors, and other key personnel. The 2020 Omnibus Plan provides for the grant of options, stock appreciation rights, restricted stock, RSUs, deferred stock, performance awards, other stock-based awards, and cash-based awards. Equity awards granted under the 2020 Omnibus Plan include awards that vest in full at the end of a three-year period as well as awards that vest in annual installments over three 2016 Omnibus Incentive Plan: In April 2016, our stockholders approved The Kraft Heinz Company 2016 Omnibus Incentive Plan (“2016 Omnibus Plan”), which was adopted by our Board in February 2016. The 2016 Omnibus Plan authorized grants of up to 18 million shares of our common stock pursuant to options, stock appreciation rights, RSUs, deferred stock, performance awards, investment rights, other stock-based awards, and cash-based awards. Equity awards granted under the 2016 Omnibus Plan prior to 2019 generally vest in full at the end of a five-year period. Equity awards granted under the 2016 Omnibus Plan in 2019 include awards that vest in full at the end of three three 2013 Omnibus Incentive Plan: Prior to approval of the 2016 Omnibus Plan, we issued non-qualified stock options to select employees under the H. J. Heinz Holding Corporation 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 vest in full at the end of a five-year period and have a maximum exercise term of 10 years. These non-qualified stock options have vested 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 the Kraft Foods Group, Inc. 2012 Performance Incentive Plan (“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 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. These RSUs generally vest in full on the third anniversary of the original grant date. In accordance with the terms of the 2012 Performance Incentive Plan, vesting generally accelerated for holders of Kraft awards who were terminated without cause within 2 years of the 2015 Merger Date. These Kraft Heinz equity awards have vested and become exercisable in accordance with the terms and conditions that were applicable immediately prior to the completion of the 2015 Merger. In addition, prior to the 2015 Merger, Kraft issued performance-based, long-term incentive awards (“Kraft Performance Shares”), which vested based on varying performance, market, and service conditions. In connection with the 2015 Merger, all outstanding Kraft Performance Shares were converted into cash awards, payable in two installments: (i) a 2015 pro-rata payment based upon the portion of the Kraft 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 31, 2022 December 25, 2021 December 26, 2020 Risk-free interest rate 1.64 % 1.03 % 0.45 % Expected term 6.5 years 6.5 years 6.5 years Expected volatility 28.5 % 32.1 % 33.6 % Expected dividend yield 4.4 % 4.6 % 5.7 % Weighted average grant date fair value per share $ 6.46 $ 6.63 $ 4.77 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 term of the options. The expected term is the period over which our employees are expected to hold their options. Due to the lack of historical data, we calculated expected term using the weighted average vesting period and the contractual term of the options. We estimated volatility using a blended volatility approach of term-matched historical volatility from our daily stock prices and weighted average implied volatility. 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 25, 2021 11,778,068 $ 45.43 Granted 941,146 38.68 Forfeited (1,091,515) 61.80 Exercised (2,068,636) 27.42 Outstanding at December 31, 2022 9,559,063 46.80 $ 37 4 years Exercisable at December 31, 2022 6,621,706 47.43 29 3 years The aggregate intrinsic value of stock options exercised during the period was $24 million in 2022, $23 million in 2021, and $24 million in 2020 . Cash received from options exercised was $57 million in 2022, $53 million in 2021, and $85 million in 2020. The tax benefit realized from stock options exercised was $8 million in 2022, $12 million in 2021, and $16 million in 2020. Our unvested stock options and related information was: Number of Stock Options Weighted Average Grant Date Fair Value Unvested options at December 25, 2021 4,408,137 $ 7.52 Granted 941,146 6.46 Forfeited (525,007) 7.90 Vested (1,886,919) 6.87 Unvested options at December 31, 2022 2,937,357 7.53 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 applicable plan and 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 $37.50 in 2022, $36.36 in 2021, and $29.27 in 2020. All RSUs granted in 2022, 2021, and 2020 were dividend eligible. Our RSU activity and related information was: Number of Units Weighted Average Grant Date Fair Value Outstanding at December 25, 2021 12,476,390 $ 33.08 Granted 3,087,495 37.50 Forfeited (1,941,019) 33.27 Vested (4,292,148) 33.41 Outstanding at December 31, 2022 9,330,718 34.36 The aggregate fair value of RSUs that vested during the period was $163 million in 2022, $135 million in 2021, and $6 million in 2020. 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 applicable plan and award agreement and are subject to achievement or satisfaction of performance or market conditions specified by the Compensation Committee of our Board. 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. For our PSUs that are tied to market-based conditions, the grant date fair value was determined based on a Monte Carlo simulation model, which takes into account expected volatility and dividend yield, among other things. The related compensation expense is recognized regardless of whether the market condition is satisfied, provided that the requisite service has been provided. The final award is based on the achievement of market-based components and service-based vesting conditions and may equal 0% to 150% of the target grant amount, based on achievement of the market-based conditions. In 2019, we granted PSUs to our Chief Executive Officer that were tied to market-based conditions. The vesting date for these awards occurred without the performance conditions having been met and the PSUs were forfeited. The weighted average grant date fair value per share of our PSUs granted during the year was $34.45 in 2022, $35.03 in 2021, and $28.50 in 2020. Our expected dividend yield was 4.41% in 2022, 4.63% in 2021, and 5.10% in 2020. For our PSUs that are tied to market-based conditions, our expected volatility was 32.92% in 2022 and 38.90% in 2021. Our PSU activity and related information was: Number of Units Weighted Average Grant Date Fair Value Outstanding at December 25, 2021 5,319,980 $ 27.24 Granted 1,737,198 34.45 Forfeited (1,525,761) 21.31 Vested (1,512,763) 28.41 Outstanding at December 31, 2022 4,018,654 32.15 The aggregate fair value of PSUs that vested during the period was $58 million in 2022 and $69 million in 2021. No PSUs vested in 2020. Total Equity Awards Equity award compensation cost and the related tax benefit was (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Pre-tax compensation cost $ 148 $ 197 $ 156 Related tax benefit (34) (43) (33) After-tax compensation cost $ 114 $ 154 $ 123 Unrecognized compensation cost related to unvested equity awards was $209 million at December 31, 2022 and is expected to be recognized over a weighted average period of 2 years. |
Postemployment Benefits (Notes)
Postemployment Benefits (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
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. Pension Plans Obligations and Funded Status: The projected benefit obligations, fair value of plan assets, and funded status of our pension plans U.S. Plans Non-U.S. Plans December 31, 2022 December 25, 2021 December 31, 2022 December 25, 2021 Benefit obligation at beginning of year $ 3,852 $ 4,191 $ 2,224 $ 2,359 Service cost 4 5 14 16 Interest cost 118 90 36 29 Benefits paid (156) (132) (79) (116) Actuarial losses/(gains) (a) (988) (125) (632) (35) Currency — — (191) (28) Settlements (b) (176) (180) (46) (2) Curtailments (1) — — — Special/contractual termination benefits — 3 — 1 Benefit obligation at end of year 2,653 3,852 1,326 2,224 Fair value of plan assets at beginning of year 4,445 4,627 2,910 3,023 Actual return on plan assets (1,000) 130 (832) 28 Employer contributions — — 11 15 Benefits paid (156) (132) (79) (117) Currency — — (255) (37) Settlements (b) (176) (180) (46) (2) Fair value of plan assets at end of year 3,113 4,445 1,709 2,910 Net pension liability/(asset) recognized at end of year $ (460) $ (593) $ (383) $ (686) (a) Actuarial losses/(gains) were primarily due to a change in the discount rate assumption utilized in measuring plan obligations. (b) Settlements represent lump sum payments of $222 million in 2022 and $182 million in 2021. The accumulated benefit obligation, which represents benefits earned to the measurement date, was $2.6 billion at December 31, 2022 and $3.8 billion at December 25, 2021 for the U.S. pension plans. The accumulated benefit obligation for the non-U.S. pension plans was $1.3 billion at December 31, 2022 and $2.1 billion at December 25, 2021. The combined U.S. and non-U.S. pension plans resulted in net pension assets of $843 million at December 31, 2022 and $1.3 billion at December 25, 2021. We recognized these amounts on our consolidated balance sheets as follows (in millions): December 31, 2022 December 25, 2021 Other non-current assets $ 908 $ 1,366 Other current liabilities (4) (5) Accrued postemployment costs (61) (82) Net pension asset/(liability) recognized $ 843 $ 1,279 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 31, 2022 December 25, 2021 December 31, 2022 December 25, 2021 Projected benefit obligation $ — $ — $ 96 $ 162 Accumulated benefit obligation — — 91 155 Fair value of plan assets — — 31 75 All of our U.S. plans were overfunded based on plan assets in excess of accumulated benefit obligations as of December 31, 2022 and December 25, 2021. 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 31, 2022 December 25, 2021 December 31, 2022 December 25, 2021 Projected benefit obligation $ — $ — $ 96 $ 162 Accumulated benefit obligation — — 91 155 Fair value of plan assets — — 31 75 All of our U.S. plans were overfunded based on plan assets in excess of projected benefit obligations as of December 31, 2022 and December 25, 2021. 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 31, 2022 December 25, 2021 December 31, 2022 December 25, 2021 Discount rate 5.6 % 3.1 % 4.9 % 1.9 % Rate of compensation increase 4.0 % 4.0 % 3.8 % 3.8 % 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 31, 2022 December 25, 2021 December 26, 2020 December 31, 2022 December 25, 2021 December 26, 2020 Service cost $ 4 $ 5 $ 6 $ 14 $ 16 $ 16 Interest cost 118 90 123 36 29 38 Expected return on plan assets (193) (186) (206) (69) (94) (103) Amortization of prior service costs/(credits) — — — 1 1 — Amortization of unrecognized losses/(gains) — — — 1 2 1 Settlements (1) (11) (24) 15 1 — Special/contractual termination benefits — 3 — — 1 — Net pension cost/(benefit) $ (72) $ (99) $ (101) $ (2) $ (44) $ (48) We present all non-service cost components of net pension cost/(benefit) within other expense/(income) on our consolidated statements of income. In 2021, we recognized special/contractual termination benefits for our U.S plans related to the Nuts Transaction, including a loss of $3 million. These special/contractual termination benefits are recorded in other expense/(income) as a component of our pre-tax loss/(gain) on sale of business on the consolidated statement of income for the year ended December 25, 2021. 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 31, 2022 December 25, 2021 December 26, 2020 December 31, 2022 December 25, 2021 December 26, 2020 Discount rate - Service cost 4.0 % 3.1 % 3.5 % 2.4 % 2.1 % 2.5 % Discount rate - Interest cost 4.0 % 2.3 % 2.8 % 1.8 % 1.2 % 1.8 % Expected rate of return on plan assets 5.3 % 4.2 % 4.4 % 2.6 % 3.1 % 3.8 % Rate of compensation increase 4.0 % 4.0 % 4.1 % 3.8 % 3.5 % 3.7 % 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 31, 2022 December 25, 2021 December 31, 2022 December 25, 2021 Fixed-income securities 72 % 83 % 52 % 53 % Equity securities 10 % 16 % 3 % 21 % Alternative investments, including real assets and other fixed income 16 % — % 10 % — % Cash and cash equivalents 2 % 1 % 19 % 9 % Certain insurance contracts — % — % 16 % 17 % 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. We target an investment of approximately 75% of our U.S. plan assets in fixed-income securities, approximately 15% in alternatives, primarily real assets and diversified credit, and approximately 10% in return-seeking assets, primarily equity securities. Prior to 2022, we targeted 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 83% fixed-income securities and certain insurance contracts, approximately 8% in alternatives, primarily multi-asset credit, and approximately 9% in return-seeking assets, primarily equity securities. The fair value of pension plan assets at December 31, 2022 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 $ 371 $ 371 $ — $ — Corporate bonds and other fixed-income securities 2,292 — 2,292 — Total fixed-income securities 2,663 371 2,292 — Equity securities — — — — Cash and cash equivalents 330 327 3 — Real estate — — — — Certain insurance contracts 275 — — 275 Fair value excluding investments measured at net asset value 3,268 698 2,295 275 Investments measured at net asset value (a) 1,554 Total plan assets at fair value $ 4,822 (a) Amount includes cash collateral of $163 million associated with our securities lending program, which is reflected as an asset, and a corresponding securities lending payable of $163 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 25, 2021 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 $ 316 $ 316 $ — $ — Corporate bonds and other fixed-income securities 4,092 — 4,092 — Total fixed-income securities 4,408 316 4,092 — Equity securities 171 171 — — Cash and cash equivalents 247 245 2 — Real estate 6 — — 6 Certain insurance contracts 488 — — 488 Fair value excluding investments measured at net asset value 5,320 732 4,094 494 Investments measured at net asset value (a) 2,035 Total plan assets at fair value $ 7,355 (a) Amount includes cash collateral of $239 million associated with our securities lending program, which is reflected as an asset, and a corresponding securities lending payable of $239 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. 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. 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. Any securities that are in default are included in Level 3. 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. Beginning in 2022, all equity exposure is provided through pooled funds valued at net asset value. 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 daily, monthly, or quarterly based upon the applicable net asset value per unit and the terms of the specific trust agreements. 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 31, 2022 included (in millions): Asset Category December 25, 2021 Additions Net Realized Gain/(Loss) Net Unrealized Gain/(Loss) Net Purchases, Issuances and Settlements Transfers Into/(Out of) Level 3 December 31, 2022 Real estate $ 6 $ — $ 2 $ (5) $ (3) $ — $ — Certain insurance contracts 488 — — (198) (15) — 275 Total Level 3 investments $ 494 $ — $ 2 $ (203) $ (18) $ — $ 275 Changes in our Level 3 plan assets for the year ended December 25, 2021 included (in millions): Asset Category December 26, 2020 Additions Net Realized Gain/(Loss) Net Unrealized Gain/(Loss) Net Purchases, Issuances and Settlements Transfers Into/(Out of) Level 3 December 25, 2021 Real estate $ 35 $ — $ (1) $ (1) $ (27) $ — $ 6 Corporate bonds and other fixed-income securities 1 — — — — (1) — Certain insurance contracts 47 464 — (13) (10) — 488 Total Level 3 investments $ 83 $ 464 $ (1) $ (14) $ (37) $ (1) $ 494 Employer Contributions: In 2022, we contributed $11 million to our non-U.S. pension plans. We did not contribute to our U.S. pension plans. We estimate that 2023 pension contributions will be approximately $11 million to our non-U.S. pension plans. We do not plan to make contributions to our U.S. pension plans in 2023. Estimated future contributions take into consideration current economic conditions, which at this time are expected to have minimal impact on expected contributions for 2023. 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 31, 2022 were (in millions): U.S. Plans Non-U.S. Plans 2023 $ 265 $ 83 2024 260 77 2025 251 79 2026 234 81 2027 226 84 2028-2032 973 436 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 31, 2022 December 25, 2021 Benefit obligation at beginning of year $ 995 $ 1,302 Service cost 4 6 Interest cost 27 20 Benefits paid (80) (94) Actuarial losses/(gains) (a) (205) (121) Plan amendments (b) (2) (116) Currency (6) 1 Curtailments — (3) Benefit obligation at end of year 733 995 Fair value of plan assets at beginning of year 1,151 1,153 Actual return on plan assets (196) 80 Employer contributions 12 13 Benefits paid (80) (95) Fair value of plan assets at end of year 887 1,151 Net postretirement benefit liability/(asset) recognized at end of year $ (154) $ (156) (a) Actuarial losses/(gains) were primarily due to a change in the discount rate assumption utilized in measuring plan obligations. (b) Driven primarily by a 2021 plan amendment that changed the benefit structure for a subset of the retiree population. We recognized the net postretirement benefit asset/(liability) on our consolidated balance sheets as follows (in millions): December 31, 2022 December 25, 2021 Other non-current assets $ 244 $ 287 Other current liabilities (7) (8) Accrued postemployment costs (83) (123) Net postretirement benefit asset/(liability) recognized $ 154 $ 156 For certain of our postretirement benefit plans that 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 31, 2022 December 25, 2021 Accumulated benefit obligation $ 90 $ 131 Fair value of plan assets — — We used the following weighted average assumptions to determine our postretirement benefit obligations: December 31, 2022 December 25, 2021 Discount rate 5.5 % 2.8 % Health care cost trend rate assumed for next year 6.6 % 5.9 % Ultimate trend rate 4.8 % 4.8 % 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 2023 and 2030 as of December 31, 2022. Assumed health care costs trend rates have a significant impact on the amounts reported for the postretirement benefit plans. Components of Net Postretirement Cost/(Benefit): Net postretirement cost/(benefit) consisted of the following (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Service cost $ 4 $ 6 $ 6 Interest cost 27 20 33 Expected return on plan assets (54) (49) (49) Amortization of prior service costs/(credits) (15) (8) (122) Amortization of unrecognized losses/(gains) (15) (16) (14) Curtailments — (4) — Net postretirement cost/(benefit) $ (53) $ (51) $ (146) We present all non-service cost components of net postretirement cost/(benefit) within other expense/(income) on our consolidated statements of income. In 2021, we recognized a curtailment gain of $4 million related to the Nuts Transaction. This gain is recorded in other expense/(income) as a component of our pre-tax loss/(gain) on sale of business on the consolidated statement of income for the year ended December 25, 2021. 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 insignificant in each of the next five years. We used the following weighted average assumptions to determine our net postretirement benefit plans cost for the years ended: December 31, 2022 December 25, 2021 December 26, 2020 Discount rate - Service cost 2.8 % 2.7 % 3.3 % Discount rate - Interest cost 3.4 % 1.6 % 2.7 % Expected rate of return on plan assets 5.4 % 4.4 % 4.7 % Health care cost trend rate 6.6 % 5.9 % 6.2 % 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: 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 31, 2022 December 25, 2021 Fixed-income securities 61 % 61 % Equity securities 33 % 36 % Cash and cash equivalents 6 % 3 % 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 31, 2022 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 $ 102 $ 102 $ — $ — Corporate bonds and other fixed-income securities 437 — 437 — Total fixed-income securities 539 102 437 — Equity securities 163 163 — — Fair value excluding investments measured at net asset value 702 265 437 — Investments measured at net asset value 185 Total plan assets at fair value $ 887 The fair value of postretirement benefit plan assets at December 25, 2021 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 $ 112 $ 112 $ — $ — Corporate bonds and other fixed-income securities 590 — 590 — Total fixed-income securities 702 112 590 — Equity securities 236 236 — — Fair value excluding investments measured at net asset value 938 348 590 — Investments measured at net asset value 213 Total plan assets at fair value $ 1,151 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. 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. 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 and 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. 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. 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 2022, we contributed $12 million to our postretirement benefit plans. We estimate that 2023 postretirement benefit plan contributions will be approximately $12 million. Estimated future contributions take into consideration current economic conditions, which at this time are expected to have minimal impact on expected contributions for 2023. 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 31, 2022 were (in millions): 2023 $ 87 2024 82 2025 78 2026 74 2027 70 2028-2032 289 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 $98 million in 2022, $103 million in 2021, and $91 million in 2020. 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 31, 2022 December 25, 2021 December 31, 2022 December 25, 2021 December 31, 2022 December 25, 2021 Net actuarial gain/(loss) $ (424) $ 28 $ 416 $ 475 $ (8) $ 503 Prior service credit/(cost) (13) (14) 8 23 (5) 9 $ (437) $ 14 $ 424 $ 498 $ (13) $ 512 The net postemployment benefits recognized in other comprehensive income/(loss), consisted of the following (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Net postemployment benefit gains/(losses) arising during the period: Net actuarial gains/(losses) arising during the period - Pension Benefits $ (468) $ 39 $ (55) Net actuarial gains/(losses) arising during the period - Postretirement Benefits (44) 267 29 (512) 306 (26) Tax benefit/(expense) 126 (77) 4 $ (386) $ 229 $ (22) Reclassification of net postemployment benefit losses/(gains) to net income/(loss): Amortization of unrecognized losses/(gains) - Pension Benefits $ 1 $ 3 $ 2 Amortization of unrecognized losses/(gains) - Postretirement Benefits (15) (16) (14) Amortization of prior service costs/(credits) - Pension Benefits 1 — — Amortization of prior service costs/(credits) - Postretirement Benefits (15) (8) (122) Net settlement and curtailment losses/(gains) - Pension Benefits 15 (11) (24) (13) (32) (158) Tax (benefit)/expense 5 6 40 $ (8) $ (26) $ (118) |
Financial Instruments (Notes)
Financial Instruments (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
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 31, 2022 December 25, 2021 Commodity contracts $ 1,166 $ 592 Foreign exchange contracts 3,139 3,359 Cross-currency contracts 6,336 7,239 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 31, 2022 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) $ — $ — $ 40 $ 10 $ 40 $ 10 Cross-currency contracts (b) — — 236 183 236 183 Derivatives not designated as hedging instruments: Commodity contracts (c) 33 61 — 15 33 76 Foreign exchange contracts (a) — — 33 25 33 25 Total fair value $ 33 $ 61 $ 309 $ 233 $ 342 $ 294 (a) At December 31, 2022, the fair value of our derivative assets was recorded in other current assets ($70 million) and other non-current assets ($3 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($33 million) and other non-current liabilities ($2 million). (b) At December 31, 2022, the fair value of our derivative assets was recorded in other current assets ($132 million) and other non-current assets ($104 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($59 million) and other non-current liabilities ($124 million). (c) At December 31, 2022, 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 25, 2021 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) $ — $ — $ 24 $ 19 $ 24 $ 19 Cross-currency contracts (b) — — 247 212 247 212 Derivatives not designated as hedging instruments: Commodity contracts (c) 41 17 2 5 43 22 Foreign exchange contracts (a) — — 15 18 15 18 Total fair value $ 41 $ 17 $ 288 $ 254 $ 329 $ 271 (a) At December 25, 2021, the fair value of our derivative assets was recorded in other current assets ($31 million) and other non-current assets ($8 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($33 million) and other non-current liabilities ($4 million). (b) At December 25, 2021, the fair value of our derivative assets was recorded in other current assets ($74 million) and other non-current assets ($173 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($42 million) and other non-current liabilities ($170 million). (c) At December 25, 2021, 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. 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 $222 million at December 31, 2022 and $155 million at December 25, 2021. At December 31, 2022 we had posted collateral of $43 million related to commodity derivative margin requirements, which was included in prepaid expenses on our consolidated balance sheet. At December 25, 2021, we had collected collateral related to commodity derivative margin requirements of $12 million, which was included in other current liabilities on our consolidated balance sheet. 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 31, 2022, we had the following items designated as net investment hedges: • Non-derivative foreign denominated debt with principal amounts of €650 million and £400 million; and • Cross-currency contracts with notional amounts of C$1.4 billion ($1.0 billion), €1.9 billion ($2.1 billion), JPY9.6 billion ($67 million), and CNH500 million ($68 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 31, 2022, our intercompany loans designated as net investment hedges were insignificant. 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 31, 2022, we had entered into foreign exchange contracts designated as cash flow hedges for periods not exceeding the next two years and into cross-currency contracts designated as cash flow hedges for periods not exceeding the next six years. Deferred Hedging Gains and Losses on Cash Flow Hedges: Based on our valuation at December 31, 2022 and assuming market rates remain constant through contract maturities, we expect transfers to net income/(loss) of unrealized gains during the next 12 months on foreign currency cash flow hedges to be approximately $26 million and on cross-currency cash flow hedges to be insignificant. Additionally, we expect transfers to net income/(loss) of unrealized losses on interest rate cash flow hedges during the next 12 months to be insignificant. 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. Acquisition Hedging: We entered into foreign exchange derivative contracts to economically hedge the foreign currency exposure related to the cash consideration for the Hemmer Acquisition. These derivative contracts settled in our second quarter of 2022. The related derivative gains were $38 million for the year ended December 31, 2022, and were recorded within other expense/(income). These gains are classified as other losses/(gains) related to acquisitions and divestitures. The related cash flows were classified as cash inflows from investing activities on the consolidated statement of cash flows. See Note 4, Acquisitions and Divestitures , for additional information related to the Hemmer Acquisition. 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 31, 2022 December 25, 2021 December 26, 2020 Cash flow hedges: Foreign exchange contracts $ 1 $ (1) $ 1 Net sales Foreign exchange contracts 46 (11) (2) Cost of products sold Foreign exchange contracts (excluded component) (17) — (2) Cost of products sold Foreign exchange contracts 1 1 — SG&A Cross-currency contracts (132) (119) 221 Other expense/(income) Cross-currency contracts (excluded component) 30 28 26 Other expense/(income) Cross-currency contracts (28) (22) (11) Interest expense Net investment hedges: Foreign exchange contracts 17 1 1 Other expense/(income) Foreign exchange contracts (excluded component) — 2 (2) Interest expense Cross-currency contracts 324 144 (370) Other expense/(income) Cross-currency contracts (excluded component) 42 44 30 Interest expense Total gains/(losses) recognized in statements of comprehensive income $ 284 $ 67 $ (108) 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 31, 2022 December 25, 2021 Cost of products sold SG&A Interest expense Other expense/ (income) Net sales Cost of products sold SG&A Interest expense Other expense/ (income) Total amounts presented in the consolidated statements of income in which the following effects were recorded $ 18,363 $ 4,488 $ 921 $ (253) $ 26,042 $ 17,360 $ 5,222 $ 2,047 $ (295) Gains/(losses) related to derivatives designated as hedging instruments: Cash flow hedges: Foreign exchange contracts $ (2) $ 2 $ — $ — $ (1) $ (46) $ (1) $ — $ — Foreign exchange contracts (excluded component) (7) — — — — (3) — — — Interest rate contracts — — (1) — — — — — — Cross-currency contracts — — (28) (54) — — — (23) (91) Cross-currency contracts (excluded component) — — — 30 — — — — 27 Net investment hedges: Foreign exchange contracts (excluded component) — — (1) — — — — 2 — Cross-currency contracts (excluded component) — — 37 — — — — 36 — Gains/(losses) related to derivatives not designated as hedging instruments: Commodity contracts 86 — — — — 158 — — — Foreign exchange contracts — — — (26) — — — — (31) Cross-currency contracts — — — — — — — — 9 Total gains/(losses) recognized in statements of income $ 77 $ 2 $ 7 $ (50) $ (1) $ 109 $ (1) $ 15 $ (86) December 26, 2020 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 $ 17,008 $ 1,394 $ (296) Gains/(losses) related to derivatives designated as hedging instruments: Cash flow hedges: Foreign exchange contracts $ 19 $ — $ — Interest rate contracts — (2) — Cross-currency contracts — (11) 143 Cross-currency contracts (excluded component) — — 26 Net investment hedges: Foreign exchange contracts (excluded component) — (2) — Cross-currency contracts (excluded component) — 25 — Gains/(losses) related to derivatives not designated as hedging instruments: Commodity contracts (69) — — Foreign exchange contracts — — (15) Total gains/(losses) recognized in statements of income $ (50) $ 10 $ 154 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 $111 million in 2022, pre-tax gains of $75 million in 2021, and pre-tax losses of $57 million in 2020. These amounts were recognized in other comprehensive income/(loss). |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income/(Losses) (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
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 28, 2019 $ (2,230) $ 303 $ 41 $ (1,886) Foreign currency translation adjustments 324 — — 324 Net deferred gains/(losses) on net investment hedges (321) — — (321) Amounts excluded from the effectiveness assessment of net investment hedges 26 — — 26 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (17) — — (17) Net deferred gains/(losses) on cash flow hedges — — 144 144 Amounts excluded from the effectiveness assessment of cash flow hedges — — 24 24 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) — — (116) (116) Net actuarial gains/(losses) arising during the period — (27) — (27) Net postemployment benefit losses/(gains) reclassified to net income/(loss) — (118) — (118) Total other comprehensive income/(loss) 12 (145) 52 (81) Balance at December 26, 2020 (2,218) 158 93 (1,967) Foreign currency translation adjustments (242) — — (242) Net deferred gains/(losses) on net investment hedges 169 — — 169 Amounts excluded from the effectiveness assessment of net investment hedges 35 — — 35 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (29) — — (29) Net deferred gains/(losses) on cash flow hedges — — (91) (91) Amounts excluded from the effectiveness assessment of cash flow hedges — — 27 27 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) — — 68 68 Net actuarial gains/(losses) arising during the period — 232 — 232 Net postemployment benefit losses/(gains) reclassified to net income/(loss) — (26) — (26) Total other comprehensive income/(loss) (67) 206 4 143 Balance at December 25, 2021 (2,285) 364 97 (1,824) Foreign currency translation adjustments (907) — — (907) Net deferred gains/(losses) on net investment hedges 343 — — 343 Amounts excluded from the effectiveness assessment of net investment hedges 32 — — 32 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (28) — — (28) Net deferred gains/(losses) on cash flow hedges — — (72) (72) Amounts excluded from the effectiveness assessment of cash flow hedges — — 14 14 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) — — 26 26 Net actuarial gains/(losses) arising during the period — (386) — (386) Net postemployment benefit losses/(gains) reclassified to net income/(loss) — (8) — (8) Total other comprehensive income/(loss) (560) (394) (32) (986) Balance at December 31, 2022 $ (2,845) $ (30) $ 65 $ (2,810) 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 31, 2022 December 25, 2021 December 26, 2020 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 $ (907) $ — $ (907) $ (242) $ — $ (242) $ 324 $ — $ 324 Net deferred gains/(losses) on net investment hedges 452 (109) 343 220 (51) 169 (426) 105 (321) Amounts excluded from the effectiveness assessment of net investment hedges 42 (10) 32 46 (11) 35 28 (2) 26 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (36) 8 (28) (38) 9 (29) (23) 6 (17) Net deferred gains/(losses) on cash flow hedges (112) 40 (72) (152) 61 (91) 209 (65) 144 Amounts excluded from the effectiveness assessment of cash flow hedges 13 1 14 28 (1) 27 24 — 24 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) 60 (34) 26 138 (70) 68 (175) 59 (116) Net actuarial gains/(losses) arising during the period (512) 126 (386) 308 (76) 232 (30) 3 (27) Net postemployment benefit losses/(gains) reclassified to net income/(loss) (13) 5 (8) (32) 6 (26) (158) 40 (118) 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 31, 2022 December 25, 2021 December 26, 2020 Losses/(gains) on net investment hedges: Foreign exchange contracts (a) $ 1 $ (2) $ 2 Interest expense Cross-currency contracts (a) (37) (36) (25) Interest expense Losses/(gains) on cash flow hedges: Foreign exchange contracts (b) — 1 — Net sales Foreign exchange contracts (b) 9 49 (19) Cost of products sold Foreign exchange contracts (b) (2) 1 — SG&A Foreign exchange contracts (b) — — — Other expense/(income) Cross-currency contracts (b) 24 64 (169) Other expense/(income) Cross-currency contracts (b) 28 22 11 Interest expense Interest rate contracts (c) 1 1 2 Interest expense Losses/(gains) on hedges before income taxes 24 100 (198) Losses/(gains) on hedges, income taxes (26) (61) 65 Losses/(gains) on hedges $ (2) $ 39 $ (133) Losses/(gains) on postemployment benefits: Amortization of unrecognized losses/(gains) (d) $ (14) $ (13) $ (12) Amortization of prior service costs/(credits) (d) (14) (8) (122) Settlement and curtailment losses/(gains) (d) 15 (11) (24) Losses/(gains) on postemployment benefits before income taxes (13) (32) (158) Losses/(gains) on postemployment benefits, income taxes 5 6 40 Losses/(gains) on postemployment benefits $ (8) $ (26) $ (118) (a) Represents recognition of the excluded component in net income/(loss). (b) Includes amortization of the excluded component and the effective portion of the related hedges. (c) 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. (d) These components are included in the computation of net periodic postemployment benefit costs. See Note 11, Postemployment Benefits , for additional information. In this note we have excluded activity and balances related to noncontrolling interest due to their insignificance. This activity was primarily related to foreign currency translation adjustments. |
Financing Arrangements (Notes)
Financing Arrangements (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Financing Arrangements | Financing ArrangementsWe enter into various product financing arrangements to facilitate supply from our vendors. Balance sheet classification is based on the nature of the 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 $87 million at December 31, 2022 and approximately $215 million at December 25, 2021 on our consolidated balance sheets related to these arrangements. Transfers of Financial Assets: Since 2020, we have had a nonrecourse accounts receivable factoring program whereby certain eligible receivables are sold to third party financial institutions in exchange for cash. The program provides us with an additional means for managing liquidity. Under the terms of the arrangement, we act as the collecting agent on behalf of the financial institutions to collect amounts due from customers for the receivables sold. We account for the transfer of receivables as a true sale at the point control is transferred through derecognition of the receivable on our consolidated balance sheet. Receivables sold under this accounts receivable factoring program were approximately $197 million during 2022, with an insignificant amount outstanding as of December 31, 2022. The incremental costs of factoring receivables under this arrangement were insignificant for the year ended December 31, 2022. No receivables were sold under this accounts receivable factoring program during 2021, and there were no amounts outstanding as of December 25, 2021. The proceeds from the sales of receivables are included in cash from operating activities in the consolidated statement of cash flows. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies 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: The Kraft Heinz Company and certain of our current and former officers and directors are currently defendants in a consolidated securities class action lawsuit pending in the United States District Court for the Northern District of Illinois, Union Asset Management Holding AG, et al. v. The Kraft Heinz Company, et al . The consolidated amended class action complaint, which was filed on August 14, 2020 and also names 3G Capital, Inc. and several of its subsidiaries and affiliates (the “3G Entities”) as defendants, 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, Company documents, 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. In February 2023, the parties to the litigation reached a preliminary settlement agreement. Based upon our current estimate for the ultimate resolution of this matter, in the fourth quarter of 2022, we recorded a net expense of $210 million within SG&A in our consolidated statements of income. This expense contemplates the Company’s estimated liability after insurance recoveries and contributions from other defendants. The Company’s estimated liability and the insurance recoveries are reflected in current liabilities and current assets on the consolidated balance sheet at December 31, 2022. While it is possible that the ultimate amount of our liability in connection with this settlement could be different than the amount accrued, we believe that any difference between that ultimate liability and the amount already accrued will not have a material impact on our financial condition, results of operations, or cash flows. Any eventual final settlement agreement will be subject to approval by the United States District Court for the Northern District of Illinois. Certain of The Kraft Heinz Company’s current and former officers and directors and the 3G Entities are also named as defendants in a stockholder derivative action, In re Kraft Heinz Shareholder Derivative Litigation , which had been previously consolidated in the United States District Court for the Western District of Pennsylvania, and is now pending in the United States District Court for the Northern District of Illinois. The court appointed lead plaintiffs and plaintiffs’ counsel on October 21, 2021, and lead plaintiffs filed a consolidated amended complaint on November 22, 2021. The consolidated amended complaint asserts state law claims for alleged breaches of fiduciary duties and unjust enrichment, as well as federal claims for 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 unspecified amount, attorneys’ fees, and other relief. Certain of The Kraft Heinz Company’s current and former officers and directors and the 3G Entities were also named as defendants in a consolidated stockholder derivative action, In re Kraft Heinz Company Derivative Litigation , which was filed in the Delaware Court of Chancery. The consolidated amended complaint, which was filed on April 27, 2020, alleged state law claims, contending that the 3G Entities were controlling stockholders 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 complaint further alleged that certain of The Kraft Heinz Company’s current and former officers and directors 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 supposedly approving or allowing the 3G Entities’ alleged insider trading. The complaint sought relief against the defendants in the form of damages, disgorgement of all profits obtained from the alleged insider trading, contribution and indemnification, and an award of attorneys’ fees and costs. The defendants filed a motion to dismiss the consolidated amended complaint, which motion the Delaware Chancery Court granted in an order dated December 15, 2021. The plaintiffs filed a notice of appeal on January 13, 2022, and the Delaware Supreme Court affirmed the trial court’s dismissal with prejudice of the consolidated amended complaint in an order dated August 1, 2022. Certain of The Kraft Heinz Company’s current and former officers and directors and the 3G Entities are named as defendants in an additional stockholder derivative action, Datnoff, et al. v. Behring, et al. , which was filed on May 6, 2022 in the Delaware Court of Chancery. The complaint alleges state law claims and contends that the Company’s Board of Directors wrongfully refused plaintiffs’ demands to pursue legal action against the named defendants. Specifically, the complaint alleges that certain of the Company’s current and former officers and directors 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. The complaint further alleges that the 3G Entities and certain of the Company’s current and former officers and directors breached their fiduciary duties by engaging in insider trading and misappropriating the Company’s material, non-public information, or aided and abetted such alleged breaches of fiduciary duty. The complaint seeks relief against the defendants, principally in the form of damages, disgorgement of all profits obtained from the alleged insider trading, contribution and indemnification, 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. 2021 United States Government Settlement: On September 3, 2021, The Kraft Heinz Company reached a settlement with the SEC, concluding and resolving in its entirety the previously disclosed SEC investigation. Under the terms of the settlement, we, without admitting or denying the findings in the administrative order issued by the SEC, agreed to pay a civil penalty of $62 million and to cease and desist from violations of specified provisions of the federal securities laws and rules promulgated thereunder. We recognized the full amount of the penalty in the second quarter of 2021 in SG&A, and paid the penalty in the third quarter of 2021. 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 31, 2022, our take-or-pay purchase obligations were as follows (in millions): 2023 $ 487 2024 504 2025 262 2026 227 2027 70 Thereafter 261 Total $ 1,811 |
Debt (Notes)
Debt (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DebtWe may from time to time seek to retire or purchase our outstanding debt through redemptions, tender offers, cash purchases, prepayments, refinancing, exchange offers, open market or privately negotiated transactions, Rule 10b5-1 plans, or otherwise. Cash payments related to debt extinguishment are classified as cash outflows from financing activities on the consolidated statements of cash flows. Any gains or losses on extinguishment of debt are recognized in interest expense on the consolidated statements of income. Borrowing Arrangements: In July 2022, together with Kraft Heinz Foods Company (“KHFC”), our 100% owned operating subsidiary, we entered into a new credit agreement (the “Credit Agreement”), which provides for a five-year senior unsecured revolving credit facility in an aggregate amount of $4.0 billion (the “Senior Credit Facility”) that will mature on July 8, 2027 and replaced our then-existing credit facility (the “Previous Senior Credit Facility”). See Note 17, Debt , to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 25, 2021 for additional information on the Previous Senior Credit Facility. The Credit Agreement includes a $1.0 billion sublimit for borrowings in Canadian dollars, euro, or British pound sterling, as well as a swingline sub-facility of up to $400 million, and a letter of credit sub-facility of up to $300 million. Additionally, and subject to certain conditions, we may increase the amount of revolving commitments and/or add tranches of term loans in a combined aggregate amount of up to $1.0 billion. Borrowings under the Senior Credit Facility will bear interest at the rates specified in the Credit Agreement, which vary based on the type of borrowing and certain other customary conditions. The Credit Agreement contains customary 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. The Credit Agreement requires us to maintain a minimum shareholders’ equity (excluding accumulated other comprehensive income/(losses)) of at least $35 billion. The obligations under the Credit Agreement are guaranteed by KHFC and The Kraft Heinz Company in the case of indebtedness and other liabilities of any subsidiary borrower. In the first quarter of 2020, as a precautionary measure to preserve financial flexibility in light of the uncertainty in the global economy resulting from the COVID-19 pandemic, we borrowed $4.0 billion under our Previous Senior Credit Facility. We repaid the full $4.0 billion during the second quarter of 2020. No amounts were drawn on our Senior Credit Facility at December 31, 2022, on our Previous Senior Credit Facility at December 25, 2021, or on either the Senior Credit Facility or Previous Senior Credit Facility during the years ended December 31, 2022 and December 25, 2021. Long-Term Debt: The following table summarizes our long-term debt obligations. Priority (a) Maturity Dates (b) Interest Rates (b) Carrying Values December 31, 2022 December 25, 2021 (in millions) U.S. dollar notes (c) Senior Notes 2026–2050 3.000%–7.125% $ 16,554 $ 18,049 Euro notes (c) Senior Notes 2023–2028 1.500%–2.250% 2,723 2,877 British pound sterling notes: 2030 Notes (d) Senior Notes February 18, 2030 6.250% 155 172 Other British pound sterling notes (c) Senior Notes July 1, 2027 4.125% 482 533 Other long-term debt Various 2023–2035 0.500%–16.800% 31 42 Finance lease obligations 119 128 Total long-term debt 20,064 21,801 Current portion of long-term debt 831 740 Long-term debt, excluding current portion $ 19,233 $ 21,061 (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) Maturity dates and interest rates presented are for the outstanding long-term debt obligations at December 31, 2022. (c) Kraft Heinz fully and unconditionally guarantees these notes, which were issued by KHFC. (d) The 6.250% Pound Sterling Senior 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. The 2030 Notes rank pari passu in right of payment with all of our existing and future senior obligations. 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 as of December 31, 2022. Long-term Debt Transactions: The table below summarizes our aggregate principal amount of long-term debt outstanding, excluding financing leases, before and after our current year debt transactions, specifically open-market debt repurchases and debt repayments (in millions): Aggregate Principal Amount Outstanding as of December 25, 2021 Open Market Debt Repurchases Debt Repayments Aggregate Principal Amount Outstanding as of December 31, 2022 6.375% senior notes due July 2028 (a)(b) $ 218 $ 14 $ — $ 204 4.625% senior notes due January 2029 (b)(c) 369 10 — 359 5.000% senior notes due July 2035 (a)(b)(c) 686 67 — 619 6.875% senior notes due January 2039 (a)(b)(c) 811 38 — 773 7.125% senior notes due August 2039 (a)(b)(c) 859 72 — 787 4.625% senior notes due October 2039 (a)(c) 398 15 — 383 6.500% senior notes due February 2040 (a)(b) 706 133 — 573 5.000% senior notes due June 2042 (a)(b)(c) 1,532 109 — 1,423 5.200% senior notes due July 2045 (a)(b)(c) 1,811 197 — 1,614 4.875% senior notes due October 2049 (b)(c) 1,500 50 — 1,450 5.500% senior notes due June 2050 (b)(c) 800 50 — 750 2.850% senior notes due March 2022 (d) 6 — 6 — 3.500% senior notes due June 2022 (d) 381 — 381 — Floating rate senior notes due August 2022 (d) 315 — 315 — Other long-term debt (e) 11,079 — — 10,849 Total $ 21,471 $ 755 $ 702 $ 19,784 (a) Included in the Q2 2022 Repurchases (defined below). (b) Included in the Q3 2022 Repurchases (defined below). (c) Included in the Q4 2022 Repurchases (defined below). (d) Repaid at maturity. (e) Represents the aggregate principal amount of all of our long-term debt obligations, excluding finance leases, that were not impacted by current year debt transactions. Foreign-denominated long-term debt is reflected at the foreign currency exchange rate in effect at each period end. At December 31, 2022, aggregate principal maturities of our long-term debt excluding finance leases were (in millions): 2023 $ 806 2024 593 2025 3 2026 1,879 2027 1,837 Thereafter 14,666 Open Market Debt Repurchases: 2022 Open Market Debt Repurchases In 2022, we repurchased approximately $755 million of certain of our senior notes under Rule 10b5-1 plans, including $268 million in the second quarter of 2022 (the “Q2 2022 Repurchases”), $180 million in the third quarter of 2022 (the “Q3 2022 Repurchases”), and $307 million in the fourth quarter of 2022 (the “Q4 2022 Repurchases” and, together with the Q2 2022 Repurchases and the Q3 2022 Repurchases, the “2022 Repurchases”). Refer to the table above for which senior notes had amounts extinguished as part of the 2022 Repurchases. In connection with the 2022 Repurchases, we recognized a net gain on extinguishment of debt of approximately $38 million within interest expense on the consolidated statement of income for the year ended December 31, 2022, which included a net gain of $9 million in the second quarter of 2022 related to the Q2 2022 Repurchases, a net gain of $3 million in the third quarter of 2022 related to the Q3 2022 Repurchases, and a net gain of $26 million in the fourth quarter related to the Q4 2022 Repurchases. This gain primarily reflects the write-off of unamortized premiums and a net discount associated with the 2022 Repurchases. Related to the 2022 Repurchases, we recognized a debt prepayment and extinguishment benefit of $10 million on the consolidated statement of cash flows for the year ended December 31, 2022, which reflect the $38 million net gain on extinguishment of debt adjusted for the non-cash write-off of unamortized premiums of $33 million, unamortized debt issuance costs of $3 million, and unamortized discounts of $2 million. 2021 Open Market Debt Repurchases In 2021, we repurchased approximately $738 million of certain of our senior notes under Rule 10b5-1 plans, including $207 million in the second quarter of 2021 (the “Q2 2021 Repurchases”), $221 million in the third quarter of 2021 (the “Q3 2021 Repurchases”), and $310 million in the fourth quarter of 2021 (the “Q4 2021 Repurchases” and, together with the Q2 2021 Repurchases and the Q3 2021 Repurchases, the “2021 Repurchases”). See Note 17, Debt , to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 25, 2021 for additional information on the 2021 Repurchases. In connection with the 2021 Repurchases, we recognized a loss on extinguishment of debt of approximately $152 million within interest expense on the consolidated statement of income for the year ended December 25, 2021. These losses primarily reflect the payment of premiums associated with the repurchases as well as the write-off of unamortized debt issuance costs, premiums, and discounts. Related to the 2021 Repurchases, we recognized debt prepayment and extinguishment costs of $162 million on the consolidated statement of cash flows for the year ended December 25, 2021, which reflect the $152 million loss on extinguishment of debt adjusted for the non-cash write-off of unamortized premiums of $15 million, unamortized discounts of $2 million, and unamortized debt issuance costs of $3 million. Tender Offers: 2021 Tender Offers In February 2021, KHFC commenced a cash tender offer to purchase up to the maximum combined aggregate purchase price of $1.0 billion, including principal and premium but excluding accrued and unpaid interest (the “Q1 2021 Maximum Tender Amount”), of its outstanding 3.950% senior notes due July 2025, 3.000% senior notes due June 2026, 4.000% senior notes due June 2023, and 3.500% senior notes due June 2022 (the “Q1 2021 Tender Offer”), listed in order of priority. Based on participation, KHFC elected to settle the Q1 2021 Tender Offer on the early settlement date, March 9, 2021. Since the aggregate purchase price of the senior notes validly tendered and not validly withdrawn as of the early tender time exceeded the Q1 2021 Maximum Tender Amount, we did not accept for purchase any of the 3.500% senior notes due June 2022 or the 4.000% senior notes due June 2023. The aggregate principal amount of senior notes validly tendered and accepted was approximately $900 million. In June 2021, KHFC commenced cash tender offers to purchase up to the maximum combined aggregate purchase price of $2.8 billion, including principal and premium but excluding accrued and unpaid interest, of its 5.000% senior notes due June 2042, 5.000% senior notes due July 2035, 4.625% senior notes due January 2029, 4.625% senior notes due October 2039, 3.750% senior notes due April 2030, 6.500% senior notes due February 2040, 6.375% senior notes due July 2028, 6.750% senior notes due March 2032, 6.875% senior notes due January 2039, and 7.125% senior notes due August 2039 (the “Q2 2021 Tender Offers”), listed in order of priority. KHFC settled the Q2 2021 Tender Offers on June 14, 2021 and June 16, 2021. The aggregate principal amount of senior notes validly tendered and accepted was approximately $1.4 billion. In November 2021, KHFC commenced a cash tender offer to purchase up to the maximum combined aggregate purchase price of $2.0 billion, including principal and premium but excluding accrued and unpaid interest (the “Q4 2021 Maximum Tender Amount”), of its 3.500% senior notes due June 2022, 4.625% senior notes due January 2029, 4.250% senior notes due March 2031, 6.750% senior notes due March 2032, 5.000% senior notes due July 2035, 6.500% senior notes due February 2040, 5.000% senior notes due June 2042, 5.200% senior notes due July 2045, 6.875% senior notes due January 2039, 7.125% senior notes due August 2039, 5.500% senior notes due June 2050, and 4.875% senior notes due October 2049 (the “Q4 2021 Tender Offer” and, together with the Q1 2021 Tender Offer and the Q2 2021 Tender Offers, the “2021 Tender Offers”), listed in order of priority. KHFC settled the Q4 2021 Tender Offer on December 6, 2021. Since the aggregate purchase price of the senior notes validly tendered and not validly withdrawn as of the early tender time exceeded the Q4 2021 Maximum Tender Amount, we did not accept for purchase any of the 6.500% senior notes due February 2040, 5.000% senior notes due June 2042, 5.200% senior notes due July 2045, 6.875% senior notes due January 2039, 7.125% senior notes due August 2039, 5.500% senior notes due June 2050, and 4.875% senior notes due October 2049. The aggregate principal amount of senior notes validly tendered and accepted was approximately $1.7 billion. See Note 17, Debt , to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 25, 2021 for additional information on the 2021 Tender Offers. Related to the 2021 Tender Offers, we recognized a loss on extinguishment of debt of $636 million within interest expense on the consolidated statement of income for the year ended December 25, 2021. These losses primarily reflect the payment of early tender premiums and fees associated with the 2021 Tender Offers as well as the write-off of unamortized premiums, debt issuance costs, and discounts. Related to the 2021 Tender Offers, we recognized debt prepayment and extinguishment costs of $636 million on the consolidated statement of cash flows for the year ended December 25, 2021, which reflects the $636 million loss on extinguishment of debt adjusted for the non-cash write-off of unamortized premiums of $24 million, unamortized debt issuance costs of $17 million, and unamortized discounts of $7 million. 2020 Tender Offer In May 2020, KHFC commenced a cash tender offer to purchase up to the maximum combined aggregate purchase price of $2.2 billion, excluding accrued and unpaid interest (the “2020 Maximum Tender Amount”), of its outstanding floating rate senior notes due February 2021, 3.500% senior notes due June 2022, 3.500% senior notes due July 2022, floating rate senior notes due August 2022, 4.000% senior notes due June 2023, 3.950% senior notes due July 2025, and 3.000% senior notes due June 2026 (the “2020 Tender Offer”), listed in order of priority. As a result of the 2020 Tender Offer, KHFC extinguished approximately $2.1 billion aggregate principal amounts of senior notes in the second quarter of 2020. None of the 3.000% senior notes due June 2026 were tendered based on the aggregate principal amount of senior notes validly tendered exceeding the 2020 Maximum Tender Amount. See Note 18, Debt , to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 26, 2020 for additional information on the 2020 Tender Offer. In connection with the 2020 Tender Offer, we recognized a loss on extinguishment of debt of $71 million within interest expense on the consolidated statement of income for the year ended December 26, 2020. This loss primarily reflects the payment of early tender premiums and fees associated with the 2020 Tender Offer as well as the write-off of unamortized debt issuance costs, premiums, and discounts. Related to the 2020 Tender Offer, we recognized debt prepayment and extinguishment costs of $68 million on the consolidated statement of cash flows for the year ended December 26, 2020, which reflect the $71 million loss on extinguishment of debt adjusted for the non-cash write-off of unamortized premiums of $1 million, unamortized debt issuance costs of $3 million, and unamortized discounts of $1 million. Debt Redemptions: 2021 Debt Redemptions In April 2021, KHFC issued a notice of redemption of all of its 4.000% senior notes due June 2023, effective May 1, 2021 (the “Q2 2021 Debt Redemption”). Prior to the redemption, approximately $447 million aggregate principal amount was outstanding. In June 2021, KHFC issued a notice of redemption of all of its 3.950% senior notes due July 2025, effective July 14, 2021 (the “Q3 2021 Debt Redemption” and, together with the Q2 2021 Debt Redemption, the “2021 Debt Redemptions”). Prior to the Q3 2021 Redemption, approximately $797 million aggregate principal amount was outstanding. In connection with the 2021 Debt Redemptions, we recognized a loss on extinguishment of debt of $129 million within interest expense on the consolidated statement of income for the year ended December 25, 2021. These losses primarily reflect the payment of premiums and fees associated with the redemptions as well as the write-off of unamortized debt issuance costs. Related to the 2021 Debt Redemptions, we recognized debt prepayment and extinguishment costs of $126 million on the consolidated statement of cash flows for the year ended December 25, 2021, which reflect the $129 million loss on extinguishment of debt adjusted for the non-cash write-off of unamortized debt issuance costs of $3 million. 2020 Debt Redemptions Concurrently with the commencement of the 2020 Tender Offer, KHFC issued a notice of conditional redemption of all of its $300 million outstanding aggregate principal amount of 3.375% senior notes due June 2021 and $976 million outstanding aggregate principal amount of its 4.875% second lien senior secured notes due February 2025 (the “First 2020 Debt Redemptions”). The First 2020 Debt Redemptions were effective and completed in the second quarter of 2020. In September 2020, KHFC issued a notice of redemption of all of its 3.500% senior notes due July 2022, of which $302 million aggregate principal amount was outstanding (the “Second 2020 Debt Redemption” and, together with the First 2020 Debt Redemption, the “2020 Debt Redemptions”). The effective date of the Second 2020 Debt Redemption was October 24, 2020. In connection with the 2020 Debt Redemptions, we recognized a loss on extinguishment of debt of $53 million within interest expense on the consolidated statement of income for the year ended December 26, 2020. This loss primarily reflects the payment of premiums and fees associated with the redemptions as well as the write-off of unamortized debt issuance costs. Related to the 2020 Debt Redemptions, we recognized debt prepayment and extinguishment costs of $48 million on the consolidated statement of cash flows for the year ended December 26, 2020, which reflect the $53 million loss on extinguishment of debt adjusted for the non-cash write-off of unamortized debt issuance costs of $5 million. Debt Issuances: 2020 Debt Issuances In May 2020, KHFC issued $1,350 million aggregate principal amount of 3.875% senior notes due May 2027, $1,350 million aggregate principal amount of 4.250% senior notes due March 2031, and $800 million aggregate principal amount of 5.500% senior notes due June 2050 (collectively, the “2020 Notes”). The 2020 Notes are fully and unconditionally guaranteed by The Kraft Heinz Company as to payment of principal, premium, and interest on a senior unsecured basis. We used the proceeds from the 2020 Notes to fund the 2020 Tender Offer and First 2020 Debt Redemptions and to pay fees and expenses in connection therewith. Debt Issuance Costs: Debt issuance costs are reflected as a direct deduction of our current portion of long-term debt and long-term debt balances on the consolidated balance sheets. We incurred an insignificant amount of debt issuance costs in 2022 and debt issuance costs of $31 million in 2020. We did not incur any debt issuance costs in 2021. Unamortized debt issuance costs were $88 million at December 31, 2022 and $97 million at December 25, 2021. Amortization of debt issuance costs was $11 million in 2022, $12 million in 2021, and $11 million in 2020. 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 $250 million at December 31, 2022 and $298 million at December 25, 2021. Amortization of our debt premium, net, was $17 million in 2022, $16 million in 2021, and $14 million in 2020. Debt Repayments: In March 2022, we repaid $6 million aggregate principal amount of senior notes that matured in the period. In June 2022, we repaid $381 million aggregate principal amount of senior notes that matured in the period. In August 2022, we repaid $315 million aggregate principal amount of floating rate senior notes that matured in the period. In February 2021, we repaid $111 million aggregate principal amount of floating rate senior notes that matured in the period. In September 2021, we repaid $34 million aggregate principal amount of senior notes that matured in the period. In February 2020, we repaid $405 million aggregate principal amount of senior notes that matured in the period. In July 2020, we repaid $200 million aggregate principal amount of senior notes and 500 million Canadian dollars aggregate principal amount of senior notes that matured in the period. Fair Value of Debt: At December 31, 2022, the aggregate fair value of our total debt was $18.7 billion as compared with a carrying value of $20.1 billion. At December 25, 2021, the aggregate fair value of our total debt was $25.7 billion as compared with a carrying value of $21.8 billion. Our short-term debt had a carrying value that approximated its fair value at December 31, 2022 and December 25, 2021. 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. |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
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 19 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 31, 2022 December 25, 2021 December 26, 2020 Operating lease costs $ 173 $ 176 $ 173 Finance lease costs: Amortization of right-of-use assets 34 34 31 Interest on lease liabilities 5 6 7 Short-term lease costs 8 17 20 Variable lease costs 1,232 1,192 1,313 Sublease income (10) (9) (11) Total lease costs $ 1,442 $ 1,416 $ 1,533 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 sales and leaseback transactions, net, were insignificant for 2022 and 2021. We had no losses/(gains) on sale and leaseback transactions in 2020. Supplemental balance sheet information related to our leases was (in millions, except lease term and discount rate): December 31, 2022 December 25, 2021 Operating Finance Operating Finance Right-of-use assets $ 668 $ 121 $ 569 $ 126 Lease liabilities (current) 125 26 133 30 Lease liabilities (non-current) 585 93 484 98 Weighted average remaining lease term 8 years 12 years 7 years 12 years Weighted average discount rate 3.6 % 4.1 % 3.5 % 4.1 % Operating lease ROU assets are included in other non-current assets other current liabilities current portion of long-term debt other non-current liabilities long-term debt Cash flows arising from lease transactions were (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash inflows/(outflows) from operating leases $ (176) $ (179) $ (191) Operating cash inflows/(outflows) from finance leases (5) (6) (7) Financing cash inflows/(outflows) from finance leases (38) (33) (35) Right-of-use assets obtained in exchange for lease liabilities: Operating leases 197 41 147 Finance leases 34 14 39 Future minimum lease payments for leases in effect at December 31, 2022 were (in millions): Operating Finance 2023 $ 149 $ 30 2024 125 20 2025 105 14 2026 90 11 2027 71 8 Thereafter 290 68 Total future undiscounted lease payments 830 151 Less imputed interest (120) (32) Total lease liability $ 710 $ 119 At December 31, 2022, 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 19 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 31, 2022 December 25, 2021 December 26, 2020 Operating lease costs $ 173 $ 176 $ 173 Finance lease costs: Amortization of right-of-use assets 34 34 31 Interest on lease liabilities 5 6 7 Short-term lease costs 8 17 20 Variable lease costs 1,232 1,192 1,313 Sublease income (10) (9) (11) Total lease costs $ 1,442 $ 1,416 $ 1,533 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 sales and leaseback transactions, net, were insignificant for 2022 and 2021. We had no losses/(gains) on sale and leaseback transactions in 2020. Supplemental balance sheet information related to our leases was (in millions, except lease term and discount rate): December 31, 2022 December 25, 2021 Operating Finance Operating Finance Right-of-use assets $ 668 $ 121 $ 569 $ 126 Lease liabilities (current) 125 26 133 30 Lease liabilities (non-current) 585 93 484 98 Weighted average remaining lease term 8 years 12 years 7 years 12 years Weighted average discount rate 3.6 % 4.1 % 3.5 % 4.1 % Operating lease ROU assets are included in other non-current assets other current liabilities current portion of long-term debt other non-current liabilities long-term debt Cash flows arising from lease transactions were (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash inflows/(outflows) from operating leases $ (176) $ (179) $ (191) Operating cash inflows/(outflows) from finance leases (5) (6) (7) Financing cash inflows/(outflows) from finance leases (38) (33) (35) Right-of-use assets obtained in exchange for lease liabilities: Operating leases 197 41 147 Finance leases 34 14 39 Future minimum lease payments for leases in effect at December 31, 2022 were (in millions): Operating Finance 2023 $ 149 $ 30 2024 125 20 2025 105 14 2026 90 11 2027 71 8 Thereafter 290 68 Total future undiscounted lease payments 830 151 Less imputed interest (120) (32) Total lease liability $ 710 $ 119 At December 31, 2022, our operating and finance leases that had not yet commenced were insignificant. |
Capital Stock (Notes)
Capital Stock (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
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 28, 2019 1,224 (3) 1,221 Exercise of stock options, issuance of other stock awards, and other 4 (2) 2 Balance at December 26, 2020 1,228 (5) 1,223 Exercise of stock options, issuance of other stock awards, and other 7 (6) 1 Balance at December 25, 2021 1,235 (11) 1,224 Exercise of stock options, issuance of other stock awards, and other 8 (7) 1 Balance at December 31, 2022 1,243 (18) 1,225 |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Our earnings per common share (“EPS”) were: December 31, 2022 December 25, 2021 December 26, 2020 (in millions, except per share data) Basic Earnings Per Common Share: Net income/(loss) attributable to common shareholders $ 2,363 $ 1,012 $ 356 Weighted average shares of common stock outstanding 1,226 1,224 1,223 Net earnings/(loss) $ 1.93 $ 0.83 $ 0.29 Diluted Earnings Per Common Share: Net income/(loss) attributable to common shareholders $ 2,363 $ 1,012 $ 356 Weighted average shares of common stock outstanding 1,226 1,224 1,223 Effect of dilutive equity awards 9 12 5 Weighted average shares of common stock outstanding, including dilutive effect 1,235 1,236 1,228 Net earnings/(loss) $ 1.91 $ 0.82 $ 0.29 We use the treasury stock method to calculate the dilutive effect of outstanding equity awards in the denominator for diluted EPS. Anti-dilutive shares were 6 million in 2022, 7 million in 2021, and 9 million in 2020. |
Segment Reporting (Notes)
Segment Reporting (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting In the second quarter of 2022, our internal reporting and reportable segments changed. We combined our United States and Canada zones to form the North America zone as a result of previously announced organizational changes, which are intended to advance and support our long-term growth plans by streamlining and synergizing our United States and Canada businesses. Subsequently, we manage and report our operating results through two reportable segments defined by geographic region: North America and International. We have reflected this change in all historical periods presented. 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 restructuring activities); in addition to these adjustments, we exclude, when they occur, the impacts of divestiture-related license income (e.g., income related to the sale of licenses in connection with the Cheese Transaction), restructuring activities, 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, certain non-ordinary course legal and regulatory matters, and equity award compensation expense (excluding restructuring activities). 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 also uses Segment Adjusted EBITDA to 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 31, 2022 December 25, 2021 December 26, 2020 Net sales: North America $ 20,340 $ 20,351 $ 20,844 International 6,145 5,691 5,341 Total net sales $ 26,485 $ 26,042 $ 26,185 Segment Adjusted EBITDA was (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Segment Adjusted EBITDA: North America $ 5,284 $ 5,576 $ 5,946 International 1,017 1,066 1,058 General corporate expenses (298) (271) (335) Depreciation and amortization (excluding restructuring activities) (922) (910) (955) Divestiture-related license income 56 4 — Restructuring activities (74) (84) (15) Deal costs (9) (11) (8) Unrealized gains/(losses) on commodity hedges (63) (17) 6 Impairment losses (999) (1,634) (3,413) Certain non-ordinary course legal and regulatory matters (210) (62) — Equity award compensation expense (148) (197) (156) Operating income/(loss) 3,634 3,460 2,128 Interest expense 921 2,047 1,394 Other expense/(income) (253) (295) (296) Income/(loss) before income taxes $ 2,966 $ 1,708 $ 1,030 Total depreciation and amortization expense by segment was (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Depreciation and amortization expense: North America $ 579 $ 580 $ 644 International 259 234 221 General corporate expenses 95 96 104 Total depreciation and amortization expense $ 933 $ 910 $ 969 Total capital expenditures by segment were (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Capital expenditures: North America $ 513 $ 477 $ 347 International 331 348 212 General corporate expenses 72 80 37 Total capital expenditures $ 916 $ 905 $ 596 Net sales by platform were (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Taste Elevation $ 8,249 $ 7,267 $ 6,808 Fast Fresh Meals 6,064 6,665 6,819 Easy Meals Made Better 5,313 4,927 4,909 Real Food Snacking 1,375 1,808 2,296 Flavorful Hydration 1,999 1,777 1,648 Easy Indulgent Desserts 1,067 1,034 999 Other 2,418 2,564 2,706 Total net sales $ 26,485 $ 26,042 $ 26,185 Net sales by product category were (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Condiments and sauces $ 8,241 $ 7,302 $ 6,813 Cheese and dairy 3,976 4,922 5,131 Ambient foods 3,047 2,896 2,954 Frozen and chilled foods 2,922 2,698 2,599 Meats and seafood 2,733 2,613 2,515 Refreshment beverages 1,999 1,786 1,655 Coffee 903 847 1,062 Infant and nutrition 411 441 433 Desserts, toppings and baking 1,195 1,157 1,121 Nuts and salted snacks — 464 1,047 Other 1,058 916 855 Total net sales $ 26,485 $ 26,042 $ 26,185 Concentration of Risk: Our largest customer, Walmart Inc., represented approximately 21% of our net sales in 2022 and approximately 22% of our net sales in each of 2021 and 2020. Both 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 31, 2022 December 25, 2021 December 26, 2020 Net sales: United States $ 18,587 $ 18,604 $ 19,204 Canada 1,752 1,747 1,640 United Kingdom 1,160 1,147 1,103 Other 4,986 4,544 4,238 Total net sales $ 26,485 $ 26,042 $ 26,185 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 31, 2022 December 25, 2021 Long-lived assets: United States $ 4,469 $ 4,547 Other 2,271 2,259 Total long-lived assets $ 6,740 $ 6,806 |
Other Financial Data (Notes)
Other Financial Data (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
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 31, 2022 December 25, 2021 December 26, 2020 Amortization of postemployment benefit plans prior service costs/(credits) $ (14) $ (7) $ (122) Net pension and postretirement non-service cost/(benefit) (a) (135) (214) (201) Loss/(gain) on sale of business (b) (25) (44) 2 Interest income (27) (15) (27) Foreign exchange losses/(gains) (106) (101) 162 Derivative losses/(gains) 50 86 (154) Other miscellaneous expense/(income) 4 — 44 Other expense/(income) $ (253) $ (295) $ (296) (a) Excludes amortization of prior service costs/(credits). (b) Includes a gain on the remeasurement of a disposal group that was reclassified as held and used in the third quarter of 2021. 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 11, 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 12, Financial Instruments , for information related to our derivative impacts. Other expense/(income) was $253 million of income in 2022 compared to $295 million of income in 2021. This change was primarily driven by a $79 million decrease in net pension and postretirement non-service benefits and a $25 million net gain on sales of businesses in 2022 compared to a $44 million net gain on sales of businesses in 2021. These impacts were partially offset by a $50 million net loss on derivative activities in 2022 compared to an $86 million net loss on derivative activities in 2021 and a $12 million increase in interest income as compared to the prior year period. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Valuation and Qualifying Accounts For the Years Ended December 31, 2022, December 25, 2021, and December 26, 2020 (in millions) Additions Deductions Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts (a) Write-offs and Reclassifications Balance at End of Period Year ended December 31, 2022 Allowances related to trade accounts receivable $ 48 $ (4) $ — $ 2 $ 46 Allowances related to deferred taxes 101 (5) — — 96 $ 149 $ (9) $ — $ 2 $ 142 Year ended December 25, 2021 Allowances related to trade accounts receivable $ 48 $ 5 $ 1 $ (6) $ 48 Allowances related to deferred taxes 105 1 — (5) 101 $ 153 $ 6 $ 1 $ (11) $ 149 Year ended December 26, 2020 Allowances related to trade accounts receivable $ 33 $ 21 $ — $ (6) $ 48 Allowances related to deferred taxes 112 (3) — (4) 105 $ 145 $ 18 $ — $ (10) $ 153 (a) Primarily relates to acquisitions and currency translation. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Fiscal Period | We operate on a 52- or 53-week fiscal year ending on the last Saturday in December in each calendar year. Unless the context requires otherwise, references to years and quarters contained herein pertain to our fiscal years and fiscal quarters. Our 2022 fiscal year was a 53-week period that ended on December 31, 2022, our 2021 fiscal year was a 52-week period that ended on December 25, 2021, and our 2020 fiscal year was a 52-week period that ended on December 26, 2020. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include The Kraft Heinz Company and all of our controlled subsidiaries. All intercompany transactions are eliminated. |
Reportable Segments | Reportable Segments In the second quarter of 2022, our internal reporting and reportable segments changed. We combined our United States and Canada zones to form the North America zone as a result of previously announced organizational changes, which are intended to advance and support our long-term growth plans by streamlining and synergizing our United States and Canada businesses. Subsequently, we manage and report our operating results through two reportable segments defined by geographic region: North America and International. We have reflected this change in all historical periods presented. |
Use of Estimates | 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 accounting 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 | Reclassifications We made reclassifications and adjustments to certain previously reported financial information to conform to our current period presentation. |
Cash, Cash Equivalents, and Restricted Cash | Cash , Cash Equivalents , and Restricted Cash |
Revenue Recognition | 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 | 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. Our definition of advertising expenses includes advertising production costs, in-store advertising costs, agency fees, brand promotions and events, and sponsorships, in addition to costs to obtain advertising in television, radio, print, digital, and social channels. We recorded advertising expenses of $945 million in 2022, $1,039 million in 2021, and $1,070 million in 2020. We also incur market research costs, which are recorded in SG&A but are excluded from advertising expenses. |
Research and Development Expense | Research and Development Expense:We expense costs as incurred for product research and development within SG&A. Research and development expenses were approximately $127 million in 2022, $140 million in 2021, and $119 million in 2020. |
Stock-Based Compensation | 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 Employees’ Stock Incentive Plans , for additional information. |
Postemployment Benefit Plans | 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 11, Postemployment Benefits , for additional information. |
Income Taxes | 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 | 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. |
Inventories | 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: 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 if we have the contractual right to take possession of the software at any time and it is feasible for us to either run the software on our own hardware or contract with a third party to host the software. These costs are 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. |
Hosted Cloud Computing Arrangement that is a Service Contract | Hosted Cloud Computing Arrangement that is a Service Contract: Deferred implementation costs for hosted cloud computing service arrangements are stated at historical cost and amortized on a straight-line basis over the term of the hosting arrangement that the implementation costs relate to. Deferred implementation costs to be amortized during the next 12 months for these arrangements are included in prepaid expenses and amortized to SG&A. All remaining amounts to be amortized are included in other non-current assets. The corresponding cash flows related to these arrangements will be reported within operating activities. We review the deferred implementation costs for impairment when we believe the deferred costs may no longer be recoverable. Such conditions could include situations where the arrangement is not expected to provide substantive service potential, a significant change occurs in the manner in which the arrangement is used or expected to be used, including early cancellation or termination of the arrangement, or situations where the arrangement has had, or will have, a significant change made to it. In instances where we have concluded that an impairment exists, we accelerate the deferred costs on the consolidated balance sheet for immediate expense recognition in SG&A. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets : We maintain 11 reporting units, seven 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 third 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, disposals of significant brands or components of our business, unexpected business disruptions (for example due to a natural disaster, pandemic, 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, changes in income tax rates, changes in interest rates, 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. See Note 8, Goodwill and Intangible Assets , in Item 8, Financial Statements and Supplementary Data , for a discussion of the timing of the annual impairment test. 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 8, Goodwill and Intangible Assets , for additional information. |
Leases | 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 the economic benefit from and 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 sheet. 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 the lease 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 the 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 (dependent on tenor and currency and adjusted to reflect collateralization) based on the information available at the lease 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 over the shorter of the estimated useful life of the underlying assets or the lease term. In instances of title transfer, expense is recognized over the useful life. Interest expense on a finance lease is recognized using the effective interest method 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 leases. |
Financial Instruments | 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 12, 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 and any off-market values on cross-currency swap contracts and the forward points on foreign exchange forward contracts from the assessment and measurement of hedge effectiveness. We recognize the interest accruals and any amortization of off-market values on cross-currency swap contracts in net income/(loss) within interest expense. We amortize the forward points on foreign exchange contracts into net income/(loss) within interest expense over the life of the hedging relationship. • Foreign currency cash flow hedges. We use various financial instruments to mitigate our exposure to changes in exchange rates from third-party and intercompany actual and forecasted transactions. Our principal foreign currency exposures that are hedged include the euro, British pound sterling, and Canadian dollar. These instruments include cross-currency swap contracts and foreign exchange forward and option contracts. Substantially all of these derivative instruments are highly effective and qualify for hedge accounting treatment. We exclude the interest accruals on cross-currency swap contracts (when interest is not a hedged item) and the forward points and option premiums or discounts on foreign exchange contracts from the assessment and measurement of hedge effectiveness and amortize such amounts into net income/(loss) in the same line item as the underlying hedged item over the life of the hedging relationship. • Interest rate cash flow hedges. From time to time, we have used derivative instruments, including interest rate swaps, as part of our interest rate risk management strategy. We have primarily used interest rate swaps to hedge the variability of interest payment cash flows on a portion of our future debt obligations. • Commodity derivatives. We are exposed to price risk related to forecasted purchases of certain commodities that we primarily use as raw materials. We enter into commodity purchase contracts primarily for dairy products, vegetable oils, coffee beans, wheat products, corn products, sugar, meat 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 diesel fuel, packaging products, 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 | 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. Foreign currency 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 our consolidated balance sheet. Gains and losses from foreign currency transactions are included in net income/(loss) for the period. |
Highly Inflationary Accounting | 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 other expense/(income) on our consolidated statement of income, rather than accumulated other comprehensive income/(losses) on our consolidated 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 applied highly inflationary accounting to the results of our subsidiaries in Turkey, Venezuela, and Argentina which resulted in insignificant nonmonetary currency devaluation losses in other expense/(income) in the periods presented. The net monetary assets of each of our subsidiaries in Turkey, Venezuela, and Argentina were insignificant at December 31, 2022. Our results of operations in Turkey, Venezuela, and Argentina reflect those of controlled subsidiaries. |
New Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted Accounting for Contract Assets and Contract Liabilities from Contracts with Customers: In October 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2021-08 to amend the accounting for contract assets and contract liabilities acquired in a business combination under Accounting Standards Codification (“ASC”) 805, Business Combinations . The guidance requires entities engaged in a business combination to recognize and measure contract assets acquired and contract liabilities assumed in accordance with ASC 606, Revenue from Contracts with Customers , rather than at fair value on the acquisition date. The amendments also apply to other contracts such as contract liabilities arising from nonfinancial assets under ASC 610-20, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets . The ASU will be effective beginning in the first quarter of 2023. Early adoption is permitted, including in an interim period. We currently expect to adopt ASU 2021-08 in the first quarter of 2023 on a prospective basis. While the impact of these amendments is dependent on the nature of any future transactions, we currently do not expect this ASU to have a significant impact on our financial statements and related disclosures. Supplier Finance Programs (Topic 405-50) - Disclosure of Supplier Finance Program Obligations: In September 2022, the FASB issued ASU 2022-04 to add disclosure requirements relative to supplier financing programs under ASC 405, Liabilities . The guidance requires entities that maintain supplier financing programs to provide information in their financial statements about their use of supplier finance programs and their effect on the entity’s working capital, liquidity, and cash flows. Specifically, the amendment requires entities to disclose the key terms of their programs, amounts outstanding, balance sheet presentation, and a rollforward of amounts outstanding during the annual period. Only the amount outstanding at the end of the period is required to be disclosed in interim periods. The ASU will be effective beginning in the first quarter of 2023, except for the rollforward requirement, which is effective in fiscal year 2024. Early adoption is permitted. While we currently disclose the amounts outstanding on our existing trade payables programs, we are reviewing the provisions of this new pronouncement but do not expect this ASU to have a significant impact on our financial statements and related disclosures. |
Acquisitions and Divestitures_2
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Hemmer Acquisition | |
Business Acquisition [Line Items] | |
Purchase Price Allocation to Assets Acquired and Liabilities Assumed | The preliminary purchase price allocation to assets acquired and liabilities assumed in the Hemmer Acquisition was (in millions): Initial Allocation (a) Adjustments Updated Allocation Cash $ 1 $ — $ 1 Trade receivables 13 — 13 Inventories 17 — 17 Other current assets 2 — 2 Property, plant and equipment, net 14 — 14 Identifiable intangible assets 122 — 122 Other non-current assets 13 4 17 Short-term debt (9) — (9) Trade payables (11) — (11) Other current liabilities (31) — (31) Long-term debt (11) — (11) Other non-current liabilities (44) — (44) Net assets acquired 76 4 80 Noncontrolling interest (16) — (16) Goodwill on acquisition 219 (4) 215 Total consideration $ 279 $ — $ 279 (a) As reported in Note 4, Acquisitions and Divestitures , to our condensed consolidated financial statements in our Quarterly Report on Form 10-Q for the three months ended June 25, 2022. |
Purchase Price Allocation to Identifiable Intangible Assets Acquired | The preliminary purchase price allocation to identifiable intangible assets acquired in the Hemmer Acquisition was: Fair Value Weighted Average Life Definite-lived trademarks $ 101 13 Customer-related assets 21 15 Total $ 122 |
Just Spices Acquisition | |
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 Just Spices Acquisition was (in millions): Initial Allocation (a) Adjustments Final Allocation Cash $ 2 $ — $ 2 Trade receivables 4 — 4 Inventories 7 — 7 Other current assets 9 — 9 Property, plant and equipment, net 1 — 1 Identifiable intangible assets 172 — 172 Other non-current assets — 7 7 Trade payables (10) — (10) Other current liabilities (12) — (12) Other non-current liabilities (54) — (54) Net assets acquired 119 7 126 Redeemable noncontrolling interest (43) 4 (39) Goodwill on acquisition 167 (11) 156 Total consideration $ 243 $ — $ 243 |
Purchase Price Allocation to Identifiable Intangible Assets Acquired | The purchase price allocation to identifiable intangible assets acquired in the Just Spices Acquisition was: Fair Value Weighted Average Life Definite-lived trademarks $ 72 10 Customer-related assets 100 15 Total $ 172 |
Assan Foods Acquisition | |
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 Assan Foods Acquisition was (in millions): Final Allocation Cash $ 4 Trade receivables 24 Inventories 26 Other current assets 2 Property, plant and equipment, net 12 Identifiable intangible assets 16 Other non-current assets 5 Short-term debt (21) Current portion of long-term debt (5) Trade payables (25) Other current liabilities (2) Long-term debt (4) Other non-current liabilities (4) Net assets acquired 28 Goodwill on acquisition 51 Total consideration $ 79 |
Purchase Price Allocation to Identifiable Intangible Assets Acquired | The purchase price allocation to identifiable intangible assets acquired in the Assan Foods Acquisition was: Fair Value Weighted Average Life Definite-lived trademarks $ 13 10 Customer-related assets 3 10 Total 16 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 was (in millions): Severance and Employee Benefit Costs Other Exit Costs Total Balance at December 25, 2021 $ 27 $ 16 $ 43 Charges/(credits) 34 — 34 Cash payments (33) (5) (38) Balance at December 31, 2022 $ 28 $ 11 $ 39 |
Restructuring Costs by Type and Income Statement Location | Total expense/(income) related to restructuring activities by income statement caption, were (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Severance and employee benefit costs - Cost of products sold $ 1 $ 12 $ — Severance and employee benefit costs - SG&A 33 21 1 Severance and employee benefit costs - Other expense/(income) — 1 — Asset-related costs - Cost of products sold 12 — 13 Other costs - Cost of products sold 14 1 (33) Other costs - SG&A 14 49 34 Other costs - Other expense/(income) — — (17) $ 74 $ 84 $ (2) |
Restructuring Costs Excluded from Segments | The pre-tax impact of allocating such expenses/(income) to our segments would have been (in millions): December 31, 2022 December 25, 2021 December 26, 2020 North America $ 40 $ 15 $ 4 International 25 22 (15) General corporate expenses 9 47 9 $ 74 $ 84 $ (2) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following (in millions): December 31, 2022 December 25, 2021 Packaging and ingredients $ 1,032 $ 571 Spare parts 208 208 Work in process 334 268 Finished product 2,077 1,682 Inventories $ 3,651 $ 2,729 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Property, plant and equipment, net consisted of the following (in millions): December 31, 2022 December 25, 2021 Land $ 200 $ 207 Buildings and improvements 2,536 2,508 Equipment, software and other 7,055 6,957 Construction in progress 1,161 1,002 10,952 10,674 Accumulated depreciation (4,212) (3,868) Property, plant and equipment, net $ 6,740 $ 6,806 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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): North America International Total Balance at December 26, 2020 $ 29,929 $ 3,160 $ 33,089 Impairment losses (35) (53) (88) Acquisitions — 74 74 Divestitures (1,662) — (1,662) Translation adjustments and other 10 (127) (117) Balance at December 25, 2021 $ 28,242 $ 3,054 $ 31,296 Impairment losses (455) — (455) Acquisitions — 386 386 Measurement period adjustments — (18) (18) Divestitures (37) — (37) Translation adjustments and other (65) (274) (339) Balance at December 31, 2022 $ 27,685 $ 3,148 $ 30,833 |
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 26, 2020 $ 42,267 Impairment losses (1,307) Divestitures (1,487) Translation adjustments and other (54) Balance at December 25, 2021 $ 39,419 Impairment losses (462) Translation adjustments and other (405) Balance at December 31, 2022 $ 38,552 |
Schedule of Definite-Lived Intangible Assets By Major Asset Class | Definite-lived intangible assets were (in millions): December 31, 2022 December 25, 2021 Gross Accumulated Net Gross Accumulated Net Trademarks $ 2,223 $ (649) $ 1,574 $ 2,091 $ (556) $ 1,535 Customer-related assets 3,690 (1,177) 2,513 3,617 (1,040) 2,577 Other 13 (3) 10 17 (6) 11 $ 5,926 $ (1,829) $ 4,097 $ 5,725 $ (1,602) $ 4,123 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 31, 2022 December 25, 2021 December 26, 2020 Income/(loss) before income taxes: United States $ 1,575 $ (215) $ 363 Non-U.S. 1,391 1,923 667 Total $ 2,966 $ 1,708 $ 1,030 Provision for/(benefit from) income taxes: Current: U.S. federal $ 620 $ 1,421 $ 634 U.S. state and local 79 120 91 Non-U.S. 177 185 287 876 1,726 1,012 Deferred: U.S. federal (192) (1,086) (232) U.S. state and local (35) (211) (109) Non-U.S. (51) 255 (2) (278) (1,042) (343) Total provision for/(benefit from) income taxes $ 598 $ 684 $ 669 |
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 31, 2022 December 25, 2021 December 26, 2020 U.S. federal statutory tax rate 21.0 % 21.0 % 21.0 % Tax on income of foreign subsidiaries (8.2) % (12.9) % (26.1) % U.S. state and local income taxes, net of federal tax benefit 1.8 % (0.5) % 0.6 % Audit settlements and changes in uncertain tax positions 1.3 % 0.4 % 3.7 % Global intangible low-taxed income 1.8 % 5.5 % 6.5 % Goodwill impairment 3.9 % 4.7 % 57.2 % (Losses)/gains related to acquisitions and divestitures 0.3 % 12.9 % 0.1 % Movement of valuation allowance reserves 0.8 % 0.1 % (0.4) % Deferred tax effect of tax law changes (0.9) % 9.8 % (2.1) % Deferred tax adjustments (1.1) % 0.3 % 2.8 % Other (0.5) % (1.2) % 1.7 % Effective tax rate 20.2 % 40.1 % 65.0 % |
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 31, 2022 December 25, 2021 Deferred income tax liabilities: Intangible assets, net $ 9,985 $ 10,212 Property, plant and equipment, net 680 748 Right-of-use assets 131 110 Other 408 455 Deferred income tax liabilities 11,204 11,525 Deferred income tax assets: Other employee benefits (111) (119) Deferred income (356) (369) Lease liabilities (139) (115) Other (693) (621) Deferred income tax assets (1,299) (1,224) Valuation allowance 96 101 Net deferred income tax liabilities $ 10,001 $ 10,402 |
Schedule of Unrecognized Tax Benefits Roll Forward | The changes in our unrecognized tax benefits were (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Balance at the beginning of the period $ 441 $ 421 $ 406 Increases for tax positions of prior years 8 13 13 Decreases for tax positions of prior years (27) (51) (34) Increases based on tax positions related to the current year 53 75 57 Decreases due to settlements with taxing authorities (6) (1) (8) Decreases due to lapse of statute of limitations (14) (16) (13) Balance at the end of the period $ 455 $ 441 $ 421 |
Employees' Stock Incentive Pl_2
Employees' Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 31, 2022 December 25, 2021 December 26, 2020 Risk-free interest rate 1.64 % 1.03 % 0.45 % Expected term 6.5 years 6.5 years 6.5 years Expected volatility 28.5 % 32.1 % 33.6 % Expected dividend yield 4.4 % 4.6 % 5.7 % Weighted average grant date fair value per share $ 6.46 $ 6.63 $ 4.77 |
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 25, 2021 11,778,068 $ 45.43 Granted 941,146 38.68 Forfeited (1,091,515) 61.80 Exercised (2,068,636) 27.42 Outstanding at December 31, 2022 9,559,063 46.80 $ 37 4 years Exercisable at December 31, 2022 6,621,706 47.43 29 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 25, 2021 4,408,137 $ 7.52 Granted 941,146 6.46 Forfeited (525,007) 7.90 Vested (1,886,919) 6.87 Unvested options at December 31, 2022 2,937,357 7.53 |
Schedule of RSU Activity and Related Information | Our RSU activity and related information was: Number of Units Weighted Average Grant Date Fair Value Outstanding at December 25, 2021 12,476,390 $ 33.08 Granted 3,087,495 37.50 Forfeited (1,941,019) 33.27 Vested (4,292,148) 33.41 Outstanding at December 31, 2022 9,330,718 34.36 |
Schedule of PSU Activity and Related Information | Our PSU activity and related information was: Number of Units Weighted Average Grant Date Fair Value Outstanding at December 25, 2021 5,319,980 $ 27.24 Granted 1,737,198 34.45 Forfeited (1,525,761) 21.31 Vested (1,512,763) 28.41 Outstanding at December 31, 2022 4,018,654 32.15 |
Schedule of Compensation Costs Related to Equity Plans | Equity award compensation cost and the related tax benefit was (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Pre-tax compensation cost $ 148 $ 197 $ 156 Related tax benefit (34) (43) (33) After-tax compensation cost $ 114 $ 154 $ 123 |
Postemployment Benefits (Tables
Postemployment Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Projected Benefit Obligations in Excess of Fair Value of Plan Assets | The projected benefit obligations, fair value of plan assets, and funded status of our pension plans U.S. Plans Non-U.S. Plans December 31, 2022 December 25, 2021 December 31, 2022 December 25, 2021 Benefit obligation at beginning of year $ 3,852 $ 4,191 $ 2,224 $ 2,359 Service cost 4 5 14 16 Interest cost 118 90 36 29 Benefits paid (156) (132) (79) (116) Actuarial losses/(gains) (a) (988) (125) (632) (35) Currency — — (191) (28) Settlements (b) (176) (180) (46) (2) Curtailments (1) — — — Special/contractual termination benefits — 3 — 1 Benefit obligation at end of year 2,653 3,852 1,326 2,224 Fair value of plan assets at beginning of year 4,445 4,627 2,910 3,023 Actual return on plan assets (1,000) 130 (832) 28 Employer contributions — — 11 15 Benefits paid (156) (132) (79) (117) Currency — — (255) (37) Settlements (b) (176) (180) (46) (2) Fair value of plan assets at end of year 3,113 4,445 1,709 2,910 Net pension liability/(asset) recognized at end of year $ (460) $ (593) $ (383) $ (686) (a) Actuarial losses/(gains) were primarily due to a change in the discount rate assumption utilized in measuring plan obligations. (b) Settlements represent lump sum payments of $222 million in 2022 and $182 million in 2021. 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 31, 2022 December 25, 2021 December 31, 2022 December 25, 2021 Projected benefit obligation $ — $ — $ 96 $ 162 Accumulated benefit obligation — — 91 155 Fair value of plan assets — — 31 75 The accumulated benefit obligation, fair value of plan assets, and funded status of our postretirement benefit plans were (in millions): December 31, 2022 December 25, 2021 Benefit obligation at beginning of year $ 995 $ 1,302 Service cost 4 6 Interest cost 27 20 Benefits paid (80) (94) Actuarial losses/(gains) (a) (205) (121) Plan amendments (b) (2) (116) Currency (6) 1 Curtailments — (3) Benefit obligation at end of year 733 995 Fair value of plan assets at beginning of year 1,151 1,153 Actual return on plan assets (196) 80 Employer contributions 12 13 Benefits paid (80) (95) Fair value of plan assets at end of year 887 1,151 Net postretirement benefit liability/(asset) recognized at end of year $ (154) $ (156) (a) Actuarial losses/(gains) were primarily due to a change in the discount rate assumption utilized in measuring plan obligations. (b) Driven primarily by a 2021 plan amendment that changed the benefit structure for a subset of the retiree population. |
Amounts Recognized in Balance Sheet | We recognized these amounts on our consolidated balance sheets as follows (in millions): December 31, 2022 December 25, 2021 Other non-current assets $ 908 $ 1,366 Other current liabilities (4) (5) Accrued postemployment costs (61) (82) Net pension asset/(liability) recognized $ 843 $ 1,279 We recognized the net postretirement benefit asset/(liability) on our consolidated balance sheets as follows (in millions): December 31, 2022 December 25, 2021 Other non-current assets $ 244 $ 287 Other current liabilities (7) (8) Accrued postemployment costs (83) (123) Net postretirement benefit asset/(liability) recognized $ 154 $ 156 |
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 31, 2022 December 25, 2021 December 31, 2022 December 25, 2021 Projected benefit obligation $ — $ — $ 96 $ 162 Accumulated benefit obligation — — 91 155 Fair value of plan assets — — 31 75 For certain of our postretirement benefit plans that 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 31, 2022 December 25, 2021 Accumulated benefit obligation $ 90 $ 131 Fair value of plan assets — — |
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 31, 2022 December 25, 2021 December 31, 2022 December 25, 2021 Discount rate 5.6 % 3.1 % 4.9 % 1.9 % Rate of compensation increase 4.0 % 4.0 % 3.8 % 3.8 % 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 31, 2022 December 25, 2021 December 26, 2020 December 31, 2022 December 25, 2021 December 26, 2020 Discount rate - Service cost 4.0 % 3.1 % 3.5 % 2.4 % 2.1 % 2.5 % Discount rate - Interest cost 4.0 % 2.3 % 2.8 % 1.8 % 1.2 % 1.8 % Expected rate of return on plan assets 5.3 % 4.2 % 4.4 % 2.6 % 3.1 % 3.8 % Rate of compensation increase 4.0 % 4.0 % 4.1 % 3.8 % 3.5 % 3.7 % We used the following weighted average assumptions to determine our postretirement benefit obligations: December 31, 2022 December 25, 2021 Discount rate 5.5 % 2.8 % Health care cost trend rate assumed for next year 6.6 % 5.9 % Ultimate trend rate 4.8 % 4.8 % We used the following weighted average assumptions to determine our net postretirement benefit plans cost for the years ended: December 31, 2022 December 25, 2021 December 26, 2020 Discount rate - Service cost 2.8 % 2.7 % 3.3 % Discount rate - Interest cost 3.4 % 1.6 % 2.7 % Expected rate of return on plan assets 5.4 % 4.4 % 4.7 % Health care cost trend rate 6.6 % 5.9 % 6.2 % |
Net Cost/(Benefit) | Net pension cost/(benefit) consisted of the following (in millions): U.S. Plans Non-U.S. Plans December 31, 2022 December 25, 2021 December 26, 2020 December 31, 2022 December 25, 2021 December 26, 2020 Service cost $ 4 $ 5 $ 6 $ 14 $ 16 $ 16 Interest cost 118 90 123 36 29 38 Expected return on plan assets (193) (186) (206) (69) (94) (103) Amortization of prior service costs/(credits) — — — 1 1 — Amortization of unrecognized losses/(gains) — — — 1 2 1 Settlements (1) (11) (24) 15 1 — Special/contractual termination benefits — 3 — — 1 — Net pension cost/(benefit) $ (72) $ (99) $ (101) $ (2) $ (44) $ (48) Net postretirement cost/(benefit) consisted of the following (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Service cost $ 4 $ 6 $ 6 Interest cost 27 20 33 Expected return on plan assets (54) (49) (49) Amortization of prior service costs/(credits) (15) (8) (122) Amortization of unrecognized losses/(gains) (15) (16) (14) Curtailments — (4) — Net postretirement cost/(benefit) $ (53) $ (51) $ (146) |
Weighted Average Asset Allocation of Plan Assets | Our weighted average asset allocations were: U.S. Plans Non-U.S. Plans December 31, 2022 December 25, 2021 December 31, 2022 December 25, 2021 Fixed-income securities 72 % 83 % 52 % 53 % Equity securities 10 % 16 % 3 % 21 % Alternative investments, including real assets and other fixed income 16 % — % 10 % — % Cash and cash equivalents 2 % 1 % 19 % 9 % Certain insurance contracts — % — % 16 % 17 % Total 100 % 100 % 100 % 100 % Our weighted average asset allocations were: December 31, 2022 December 25, 2021 Fixed-income securities 61 % 61 % Equity securities 33 % 36 % Cash and cash equivalents 6 % 3 % |
Fair Value of Plan Assets | The fair value of pension plan assets at December 31, 2022 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 $ 371 $ 371 $ — $ — Corporate bonds and other fixed-income securities 2,292 — 2,292 — Total fixed-income securities 2,663 371 2,292 — Equity securities — — — — Cash and cash equivalents 330 327 3 — Real estate — — — — Certain insurance contracts 275 — — 275 Fair value excluding investments measured at net asset value 3,268 698 2,295 275 Investments measured at net asset value (a) 1,554 Total plan assets at fair value $ 4,822 (a) Amount includes cash collateral of $163 million associated with our securities lending program, which is reflected as an asset, and a corresponding securities lending payable of $163 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 25, 2021 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 $ 316 $ 316 $ — $ — Corporate bonds and other fixed-income securities 4,092 — 4,092 — Total fixed-income securities 4,408 316 4,092 — Equity securities 171 171 — — Cash and cash equivalents 247 245 2 — Real estate 6 — — 6 Certain insurance contracts 488 — — 488 Fair value excluding investments measured at net asset value 5,320 732 4,094 494 Investments measured at net asset value (a) 2,035 Total plan assets at fair value $ 7,355 (a) Amount includes cash collateral of $239 million associated with our securities lending program, which is reflected as an asset, and a corresponding securities lending payable of $239 million, which is reflected as a liability. The net impact on total plan assets at fair value is zero. The fair value of postretirement benefit plan assets at December 31, 2022 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 $ 102 $ 102 $ — $ — Corporate bonds and other fixed-income securities 437 — 437 — Total fixed-income securities 539 102 437 — Equity securities 163 163 — — Fair value excluding investments measured at net asset value 702 265 437 — Investments measured at net asset value 185 Total plan assets at fair value $ 887 The fair value of postretirement benefit plan assets at December 25, 2021 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 $ 112 $ 112 $ — $ — Corporate bonds and other fixed-income securities 590 — 590 — Total fixed-income securities 702 112 590 — Equity securities 236 236 — — Fair value excluding investments measured at net asset value 938 348 590 — Investments measured at net asset value 213 Total plan assets at fair value $ 1,151 |
Changes in Level 3 Plan Assets | Changes in our Level 3 plan assets for the year ended December 31, 2022 included (in millions): Asset Category December 25, 2021 Additions Net Realized Gain/(Loss) Net Unrealized Gain/(Loss) Net Purchases, Issuances and Settlements Transfers Into/(Out of) Level 3 December 31, 2022 Real estate $ 6 $ — $ 2 $ (5) $ (3) $ — $ — Certain insurance contracts 488 — — (198) (15) — 275 Total Level 3 investments $ 494 $ — $ 2 $ (203) $ (18) $ — $ 275 Changes in our Level 3 plan assets for the year ended December 25, 2021 included (in millions): Asset Category December 26, 2020 Additions Net Realized Gain/(Loss) Net Unrealized Gain/(Loss) Net Purchases, Issuances and Settlements Transfers Into/(Out of) Level 3 December 25, 2021 Real estate $ 35 $ — $ (1) $ (1) $ (27) $ — $ 6 Corporate bonds and other fixed-income securities 1 — — — — (1) — Certain insurance contracts 47 464 — (13) (10) — 488 Total Level 3 investments $ 83 $ 464 $ (1) $ (14) $ (37) $ (1) $ 494 |
Estimated Future Benefit Payments | The estimated future benefit payments from our pension plans at December 31, 2022 were (in millions): U.S. Plans Non-U.S. Plans 2023 $ 265 $ 83 2024 260 77 2025 251 79 2026 234 81 2027 226 84 2028-2032 973 436 Our estimated future benefit payments for our postretirement plans at December 31, 2022 were (in millions): 2023 $ 87 2024 82 2025 78 2026 74 2027 70 2028-2032 289 |
Schedule of Defined Benefit Plans Disclosures | 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 31, 2022 December 25, 2021 December 31, 2022 December 25, 2021 December 31, 2022 December 25, 2021 Net actuarial gain/(loss) $ (424) $ 28 $ 416 $ 475 $ (8) $ 503 Prior service credit/(cost) (13) (14) 8 23 (5) 9 $ (437) $ 14 $ 424 $ 498 $ (13) $ 512 |
Amounts Recognized in Other Comprehensive Income/(Loss) | The net postemployment benefits recognized in other comprehensive income/(loss), consisted of the following (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Net postemployment benefit gains/(losses) arising during the period: Net actuarial gains/(losses) arising during the period - Pension Benefits $ (468) $ 39 $ (55) Net actuarial gains/(losses) arising during the period - Postretirement Benefits (44) 267 29 (512) 306 (26) Tax benefit/(expense) 126 (77) 4 $ (386) $ 229 $ (22) Reclassification of net postemployment benefit losses/(gains) to net income/(loss): Amortization of unrecognized losses/(gains) - Pension Benefits $ 1 $ 3 $ 2 Amortization of unrecognized losses/(gains) - Postretirement Benefits (15) (16) (14) Amortization of prior service costs/(credits) - Pension Benefits 1 — — Amortization of prior service costs/(credits) - Postretirement Benefits (15) (8) (122) Net settlement and curtailment losses/(gains) - Pension Benefits 15 (11) (24) (13) (32) (158) Tax (benefit)/expense 5 6 40 $ (8) $ (26) $ (118) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 31, 2022 December 25, 2021 Commodity contracts $ 1,166 $ 592 Foreign exchange contracts 3,139 3,359 Cross-currency contracts 6,336 7,239 |
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 31, 2022 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) $ — $ — $ 40 $ 10 $ 40 $ 10 Cross-currency contracts (b) — — 236 183 236 183 Derivatives not designated as hedging instruments: Commodity contracts (c) 33 61 — 15 33 76 Foreign exchange contracts (a) — — 33 25 33 25 Total fair value $ 33 $ 61 $ 309 $ 233 $ 342 $ 294 (a) At December 31, 2022, the fair value of our derivative assets was recorded in other current assets ($70 million) and other non-current assets ($3 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($33 million) and other non-current liabilities ($2 million). (b) At December 31, 2022, the fair value of our derivative assets was recorded in other current assets ($132 million) and other non-current assets ($104 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($59 million) and other non-current liabilities ($124 million). (c) At December 31, 2022, 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 25, 2021 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) $ — $ — $ 24 $ 19 $ 24 $ 19 Cross-currency contracts (b) — — 247 212 247 212 Derivatives not designated as hedging instruments: Commodity contracts (c) 41 17 2 5 43 22 Foreign exchange contracts (a) — — 15 18 15 18 Total fair value $ 41 $ 17 $ 288 $ 254 $ 329 $ 271 (a) At December 25, 2021, the fair value of our derivative assets was recorded in other current assets ($31 million) and other non-current assets ($8 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($33 million) and other non-current liabilities ($4 million). (b) At December 25, 2021, the fair value of our derivative assets was recorded in other current assets ($74 million) and other non-current assets ($173 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($42 million) and other non-current liabilities ($170 million). (c) At December 25, 2021, 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. |
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 31, 2022 December 25, 2021 December 26, 2020 Cash flow hedges: Foreign exchange contracts $ 1 $ (1) $ 1 Net sales Foreign exchange contracts 46 (11) (2) Cost of products sold Foreign exchange contracts (excluded component) (17) — (2) Cost of products sold Foreign exchange contracts 1 1 — SG&A Cross-currency contracts (132) (119) 221 Other expense/(income) Cross-currency contracts (excluded component) 30 28 26 Other expense/(income) Cross-currency contracts (28) (22) (11) Interest expense Net investment hedges: Foreign exchange contracts 17 1 1 Other expense/(income) Foreign exchange contracts (excluded component) — 2 (2) Interest expense Cross-currency contracts 324 144 (370) Other expense/(income) Cross-currency contracts (excluded component) 42 44 30 Interest expense Total gains/(losses) recognized in statements of comprehensive income $ 284 $ 67 $ (108) |
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 31, 2022 December 25, 2021 Cost of products sold SG&A Interest expense Other expense/ (income) Net sales Cost of products sold SG&A Interest expense Other expense/ (income) Total amounts presented in the consolidated statements of income in which the following effects were recorded $ 18,363 $ 4,488 $ 921 $ (253) $ 26,042 $ 17,360 $ 5,222 $ 2,047 $ (295) Gains/(losses) related to derivatives designated as hedging instruments: Cash flow hedges: Foreign exchange contracts $ (2) $ 2 $ — $ — $ (1) $ (46) $ (1) $ — $ — Foreign exchange contracts (excluded component) (7) — — — — (3) — — — Interest rate contracts — — (1) — — — — — — Cross-currency contracts — — (28) (54) — — — (23) (91) Cross-currency contracts (excluded component) — — — 30 — — — — 27 Net investment hedges: Foreign exchange contracts (excluded component) — — (1) — — — — 2 — Cross-currency contracts (excluded component) — — 37 — — — — 36 — Gains/(losses) related to derivatives not designated as hedging instruments: Commodity contracts 86 — — — — 158 — — — Foreign exchange contracts — — — (26) — — — — (31) Cross-currency contracts — — — — — — — — 9 Total gains/(losses) recognized in statements of income $ 77 $ 2 $ 7 $ (50) $ (1) $ 109 $ (1) $ 15 $ (86) December 26, 2020 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 $ 17,008 $ 1,394 $ (296) Gains/(losses) related to derivatives designated as hedging instruments: Cash flow hedges: Foreign exchange contracts $ 19 $ — $ — Interest rate contracts — (2) — Cross-currency contracts — (11) 143 Cross-currency contracts (excluded component) — — 26 Net investment hedges: Foreign exchange contracts (excluded component) — (2) — Cross-currency contracts (excluded component) — 25 — Gains/(losses) related to derivatives not designated as hedging instruments: Commodity contracts (69) — — Foreign exchange contracts — — (15) Total gains/(losses) recognized in statements of income $ (50) $ 10 $ 154 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income/(Losses) (Tables) - AOCI Attributable to Parent | 12 Months Ended |
Dec. 31, 2022 | |
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 28, 2019 $ (2,230) $ 303 $ 41 $ (1,886) Foreign currency translation adjustments 324 — — 324 Net deferred gains/(losses) on net investment hedges (321) — — (321) Amounts excluded from the effectiveness assessment of net investment hedges 26 — — 26 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (17) — — (17) Net deferred gains/(losses) on cash flow hedges — — 144 144 Amounts excluded from the effectiveness assessment of cash flow hedges — — 24 24 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) — — (116) (116) Net actuarial gains/(losses) arising during the period — (27) — (27) Net postemployment benefit losses/(gains) reclassified to net income/(loss) — (118) — (118) Total other comprehensive income/(loss) 12 (145) 52 (81) Balance at December 26, 2020 (2,218) 158 93 (1,967) Foreign currency translation adjustments (242) — — (242) Net deferred gains/(losses) on net investment hedges 169 — — 169 Amounts excluded from the effectiveness assessment of net investment hedges 35 — — 35 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (29) — — (29) Net deferred gains/(losses) on cash flow hedges — — (91) (91) Amounts excluded from the effectiveness assessment of cash flow hedges — — 27 27 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) — — 68 68 Net actuarial gains/(losses) arising during the period — 232 — 232 Net postemployment benefit losses/(gains) reclassified to net income/(loss) — (26) — (26) Total other comprehensive income/(loss) (67) 206 4 143 Balance at December 25, 2021 (2,285) 364 97 (1,824) Foreign currency translation adjustments (907) — — (907) Net deferred gains/(losses) on net investment hedges 343 — — 343 Amounts excluded from the effectiveness assessment of net investment hedges 32 — — 32 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (28) — — (28) Net deferred gains/(losses) on cash flow hedges — — (72) (72) Amounts excluded from the effectiveness assessment of cash flow hedges — — 14 14 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) — — 26 26 Net actuarial gains/(losses) arising during the period — (386) — (386) Net postemployment benefit losses/(gains) reclassified to net income/(loss) — (8) — (8) Total other comprehensive income/(loss) (560) (394) (32) (986) Balance at December 31, 2022 $ (2,845) $ (30) $ 65 $ (2,810) |
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 31, 2022 December 25, 2021 December 26, 2020 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 $ (907) $ — $ (907) $ (242) $ — $ (242) $ 324 $ — $ 324 Net deferred gains/(losses) on net investment hedges 452 (109) 343 220 (51) 169 (426) 105 (321) Amounts excluded from the effectiveness assessment of net investment hedges 42 (10) 32 46 (11) 35 28 (2) 26 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (36) 8 (28) (38) 9 (29) (23) 6 (17) Net deferred gains/(losses) on cash flow hedges (112) 40 (72) (152) 61 (91) 209 (65) 144 Amounts excluded from the effectiveness assessment of cash flow hedges 13 1 14 28 (1) 27 24 — 24 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) 60 (34) 26 138 (70) 68 (175) 59 (116) Net actuarial gains/(losses) arising during the period (512) 126 (386) 308 (76) 232 (30) 3 (27) Net postemployment benefit losses/(gains) reclassified to net income/(loss) (13) 5 (8) (32) 6 (26) (158) 40 (118) |
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 31, 2022 December 25, 2021 December 26, 2020 Losses/(gains) on net investment hedges: Foreign exchange contracts (a) $ 1 $ (2) $ 2 Interest expense Cross-currency contracts (a) (37) (36) (25) Interest expense Losses/(gains) on cash flow hedges: Foreign exchange contracts (b) — 1 — Net sales Foreign exchange contracts (b) 9 49 (19) Cost of products sold Foreign exchange contracts (b) (2) 1 — SG&A Foreign exchange contracts (b) — — — Other expense/(income) Cross-currency contracts (b) 24 64 (169) Other expense/(income) Cross-currency contracts (b) 28 22 11 Interest expense Interest rate contracts (c) 1 1 2 Interest expense Losses/(gains) on hedges before income taxes 24 100 (198) Losses/(gains) on hedges, income taxes (26) (61) 65 Losses/(gains) on hedges $ (2) $ 39 $ (133) Losses/(gains) on postemployment benefits: Amortization of unrecognized losses/(gains) (d) $ (14) $ (13) $ (12) Amortization of prior service costs/(credits) (d) (14) (8) (122) Settlement and curtailment losses/(gains) (d) 15 (11) (24) Losses/(gains) on postemployment benefits before income taxes (13) (32) (158) Losses/(gains) on postemployment benefits, income taxes 5 6 40 Losses/(gains) on postemployment benefits $ (8) $ (26) $ (118) (a) Represents recognition of the excluded component in net income/(loss). (b) Includes amortization of the excluded component and the effective portion of the related hedges. (c) 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. (d) These components are included in the computation of net periodic postemployment benefit costs. See Note 11, Postemployment Benefits , for additional information. |
Commitments and Contingencies_2
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Take-or-Pay Purchase Obligations | As of December 31, 2022, our take-or-pay purchase obligations were as follows (in millions): 2023 $ 487 2024 504 2025 262 2026 227 2027 70 Thereafter 261 Total $ 1,811 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table summarizes our long-term debt obligations. Priority (a) Maturity Dates (b) Interest Rates (b) Carrying Values December 31, 2022 December 25, 2021 (in millions) U.S. dollar notes (c) Senior Notes 2026–2050 3.000%–7.125% $ 16,554 $ 18,049 Euro notes (c) Senior Notes 2023–2028 1.500%–2.250% 2,723 2,877 British pound sterling notes: 2030 Notes (d) Senior Notes February 18, 2030 6.250% 155 172 Other British pound sterling notes (c) Senior Notes July 1, 2027 4.125% 482 533 Other long-term debt Various 2023–2035 0.500%–16.800% 31 42 Finance lease obligations 119 128 Total long-term debt 20,064 21,801 Current portion of long-term debt 831 740 Long-term debt, excluding current portion $ 19,233 $ 21,061 (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) Maturity dates and interest rates presented are for the outstanding long-term debt obligations at December 31, 2022. (c) Kraft Heinz fully and unconditionally guarantees these notes, which were issued by KHFC. (d) The 6.250% Pound Sterling Senior 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. The 2030 Notes rank pari passu in right of payment with all of our existing and future senior obligations. 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 Debt | The table below summarizes our aggregate principal amount of long-term debt outstanding, excluding financing leases, before and after our current year debt transactions, specifically open-market debt repurchases and debt repayments (in millions): Aggregate Principal Amount Outstanding as of December 25, 2021 Open Market Debt Repurchases Debt Repayments Aggregate Principal Amount Outstanding as of December 31, 2022 6.375% senior notes due July 2028 (a)(b) $ 218 $ 14 $ — $ 204 4.625% senior notes due January 2029 (b)(c) 369 10 — 359 5.000% senior notes due July 2035 (a)(b)(c) 686 67 — 619 6.875% senior notes due January 2039 (a)(b)(c) 811 38 — 773 7.125% senior notes due August 2039 (a)(b)(c) 859 72 — 787 4.625% senior notes due October 2039 (a)(c) 398 15 — 383 6.500% senior notes due February 2040 (a)(b) 706 133 — 573 5.000% senior notes due June 2042 (a)(b)(c) 1,532 109 — 1,423 5.200% senior notes due July 2045 (a)(b)(c) 1,811 197 — 1,614 4.875% senior notes due October 2049 (b)(c) 1,500 50 — 1,450 5.500% senior notes due June 2050 (b)(c) 800 50 — 750 2.850% senior notes due March 2022 (d) 6 — 6 — 3.500% senior notes due June 2022 (d) 381 — 381 — Floating rate senior notes due August 2022 (d) 315 — 315 — Other long-term debt (e) 11,079 — — 10,849 Total $ 21,471 $ 755 $ 702 $ 19,784 (a) Included in the Q2 2022 Repurchases (defined below). (b) Included in the Q3 2022 Repurchases (defined below). (c) Included in the Q4 2022 Repurchases (defined below). (d) Repaid at maturity. (e) Represents the aggregate principal amount of all of our long-term debt obligations, excluding finance leases, that were not impacted by current year debt transactions. Foreign-denominated long-term debt is reflected at the foreign currency exchange rate in effect at each period end. |
Schedule of Maturities of Long-term Debt | At December 31, 2022, aggregate principal maturities of our long-term debt excluding finance leases were (in millions): 2023 $ 806 2024 593 2025 3 2026 1,879 2027 1,837 Thereafter 14,666 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Costs and Supplemental Information | The components of our lease costs were (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Operating lease costs $ 173 $ 176 $ 173 Finance lease costs: Amortization of right-of-use assets 34 34 31 Interest on lease liabilities 5 6 7 Short-term lease costs 8 17 20 Variable lease costs 1,232 1,192 1,313 Sublease income (10) (9) (11) Total lease costs $ 1,442 $ 1,416 $ 1,533 Supplemental balance sheet information related to our leases was (in millions, except lease term and discount rate): December 31, 2022 December 25, 2021 Operating Finance Operating Finance Right-of-use assets $ 668 $ 121 $ 569 $ 126 Lease liabilities (current) 125 26 133 30 Lease liabilities (non-current) 585 93 484 98 Weighted average remaining lease term 8 years 12 years 7 years 12 years Weighted average discount rate 3.6 % 4.1 % 3.5 % 4.1 % Cash flows arising from lease transactions were (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash inflows/(outflows) from operating leases $ (176) $ (179) $ (191) Operating cash inflows/(outflows) from finance leases (5) (6) (7) Financing cash inflows/(outflows) from finance leases (38) (33) (35) Right-of-use assets obtained in exchange for lease liabilities: Operating leases 197 41 147 Finance leases 34 14 39 |
Schedule of Future Minimum Lease Payments for Operating Leases | Future minimum lease payments for leases in effect at December 31, 2022 were (in millions): Operating Finance 2023 $ 149 $ 30 2024 125 20 2025 105 14 2026 90 11 2027 71 8 Thereafter 290 68 Total future undiscounted lease payments 830 151 Less imputed interest (120) (32) Total lease liability $ 710 $ 119 |
Schedule of Future Minimum Lease Payments for Finance Leases | Future minimum lease payments for leases in effect at December 31, 2022 were (in millions): Operating Finance 2023 $ 149 $ 30 2024 125 20 2025 105 14 2026 90 11 2027 71 8 Thereafter 290 68 Total future undiscounted lease payments 830 151 Less imputed interest (120) (32) Total lease liability $ 710 $ 119 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 28, 2019 1,224 (3) 1,221 Exercise of stock options, issuance of other stock awards, and other 4 (2) 2 Balance at December 26, 2020 1,228 (5) 1,223 Exercise of stock options, issuance of other stock awards, and other 7 (6) 1 Balance at December 25, 2021 1,235 (11) 1,224 Exercise of stock options, issuance of other stock awards, and other 8 (7) 1 Balance at December 31, 2022 1,243 (18) 1,225 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Common Share, Basic and Diluted | Our earnings per common share (“EPS”) were: December 31, 2022 December 25, 2021 December 26, 2020 (in millions, except per share data) Basic Earnings Per Common Share: Net income/(loss) attributable to common shareholders $ 2,363 $ 1,012 $ 356 Weighted average shares of common stock outstanding 1,226 1,224 1,223 Net earnings/(loss) $ 1.93 $ 0.83 $ 0.29 Diluted Earnings Per Common Share: Net income/(loss) attributable to common shareholders $ 2,363 $ 1,012 $ 356 Weighted average shares of common stock outstanding 1,226 1,224 1,223 Effect of dilutive equity awards 9 12 5 Weighted average shares of common stock outstanding, including dilutive effect 1,235 1,236 1,228 Net earnings/(loss) $ 1.91 $ 0.82 $ 0.29 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Net Sales by Segment | Net sales by segment were (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Net sales: North America $ 20,340 $ 20,351 $ 20,844 International 6,145 5,691 5,341 Total net sales $ 26,485 $ 26,042 $ 26,185 |
Segment Adjusted EBITDA | Segment Adjusted EBITDA was (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Segment Adjusted EBITDA: North America $ 5,284 $ 5,576 $ 5,946 International 1,017 1,066 1,058 General corporate expenses (298) (271) (335) Depreciation and amortization (excluding restructuring activities) (922) (910) (955) Divestiture-related license income 56 4 — Restructuring activities (74) (84) (15) Deal costs (9) (11) (8) Unrealized gains/(losses) on commodity hedges (63) (17) 6 Impairment losses (999) (1,634) (3,413) Certain non-ordinary course legal and regulatory matters (210) (62) — Equity award compensation expense (148) (197) (156) Operating income/(loss) 3,634 3,460 2,128 Interest expense 921 2,047 1,394 Other expense/(income) (253) (295) (296) Income/(loss) before income taxes $ 2,966 $ 1,708 $ 1,030 |
Depreciation and Amortization Expense by Segment | Total depreciation and amortization expense by segment was (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Depreciation and amortization expense: North America $ 579 $ 580 $ 644 International 259 234 221 General corporate expenses 95 96 104 Total depreciation and amortization expense $ 933 $ 910 $ 969 |
Capital Expenditures by Segment | Total capital expenditures by segment were (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Capital expenditures: North America $ 513 $ 477 $ 347 International 331 348 212 General corporate expenses 72 80 37 Total capital expenditures $ 916 $ 905 $ 596 |
Net Sales by Platform | Net sales by platform were (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Taste Elevation $ 8,249 $ 7,267 $ 6,808 Fast Fresh Meals 6,064 6,665 6,819 Easy Meals Made Better 5,313 4,927 4,909 Real Food Snacking 1,375 1,808 2,296 Flavorful Hydration 1,999 1,777 1,648 Easy Indulgent Desserts 1,067 1,034 999 Other 2,418 2,564 2,706 Total net sales $ 26,485 $ 26,042 $ 26,185 |
Net Sales by Product Category | Net sales by product category were (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Condiments and sauces $ 8,241 $ 7,302 $ 6,813 Cheese and dairy 3,976 4,922 5,131 Ambient foods 3,047 2,896 2,954 Frozen and chilled foods 2,922 2,698 2,599 Meats and seafood 2,733 2,613 2,515 Refreshment beverages 1,999 1,786 1,655 Coffee 903 847 1,062 Infant and nutrition 411 441 433 Desserts, toppings and baking 1,195 1,157 1,121 Nuts and salted snacks — 464 1,047 Other 1,058 916 855 Total net sales $ 26,485 $ 26,042 $ 26,185 |
Net Sales by Geography | Our net sales by geography were (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Net sales: United States $ 18,587 $ 18,604 $ 19,204 Canada 1,752 1,747 1,640 United Kingdom 1,160 1,147 1,103 Other 4,986 4,544 4,238 Total net sales $ 26,485 $ 26,042 $ 26,185 |
Long-lived Assets by Geography | Our long-lived assets by geography were (in millions): December 31, 2022 December 25, 2021 Long-lived assets: United States $ 4,469 $ 4,547 Other 2,271 2,259 Total long-lived assets $ 6,740 $ 6,806 |
Other Financial Data (Tables)
Other Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expense/(Income) | Other expense/(income) consists of the following (in millions): December 31, 2022 December 25, 2021 December 26, 2020 Amortization of postemployment benefit plans prior service costs/(credits) $ (14) $ (7) $ (122) Net pension and postretirement non-service cost/(benefit) (a) (135) (214) (201) Loss/(gain) on sale of business (b) (25) (44) 2 Interest income (27) (15) (27) Foreign exchange losses/(gains) (106) (101) 162 Derivative losses/(gains) 50 86 (154) Other miscellaneous expense/(income) 4 — 44 Other expense/(income) $ (253) $ (295) $ (296) (a) Excludes amortization of prior service costs/(credits). (b) Includes a gain on the remeasurement of a disposal group that was reclassified as held and used in the third quarter of 2021. |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) segment | Dec. 25, 2021 USD ($) | Dec. 26, 2020 USD ($) | Dec. 28, 2019 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Restricted cash and cash equivalents, noncurrent | $ 1 | $ 1 | ||
Cash, cash equivalents, and restricted cash | $ 1,041 | $ 3,446 | $ 3,418 | $ 2,280 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 945 | $ 1,039 | $ 1,070 |
Research and development expense | $ 127 | $ 140 | $ 119 |
Significant Accounting Polici_4
Significant Accounting Policies - Stock-Based Compensation (Details) | 12 Months Ended |
Dec. 31, 2022 | |
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_5
Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
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 |
Buildings and 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_6
Significant Accounting Policies - Goodwill and Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2022 goodwillReportingUnit | |
Goodwill [Line Items] | |
Number of reporting units | 11 |
Reporting Unit, Goodwill Balance Held | |
Goodwill [Line Items] | |
Number of reporting units | 7 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Hemmer Additional Information (Details) $ in Millions, R$ in Billions | Mar. 31, 2022 USD ($) | Mar. 31, 2022 BRL (R$) | Dec. 31, 2022 USD ($) | Dec. 25, 2021 USD ($) | Dec. 26, 2020 USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ 30,833 | $ 31,296 | $ 33,089 | ||
Hemmer Acquisition | |||||
Business Acquisition [Line Items] | |||||
Cash consideration paid | $ 279 | R$ 1.3 | |||
Percent acquired | 94% | 100% | |||
Goodwill | $ 219 | $ 215 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Hemmer Purchase Price Allocation to Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Jun. 25, 2022 | Dec. 31, 2022 | Sep. 24, 2022 | Mar. 31, 2022 | Jan. 18, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Business Acquisition [Line Items] | |||||||
Goodwill on acquisition | $ 30,833 | $ 31,296 | $ 33,089 | ||||
Hemmer Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Cash | 1 | $ 1 | |||||
Trade receivables | 13 | 13 | |||||
Inventories | 17 | 17 | |||||
Other current assets | 2 | 2 | |||||
Property, plant and equipment, net | 14 | 14 | |||||
Identifiable intangible assets | 122 | 122 | |||||
Other non-current assets | 17 | 13 | |||||
Short-term debt | (9) | (9) | |||||
Trade payables | (11) | (11) | |||||
Other current liabilities | (31) | (31) | |||||
Long-term debt | (11) | (11) | |||||
Other non-current liabilities | (44) | (44) | |||||
Net assets acquired | 80 | 76 | |||||
Noncontrolling interest | (16) | (16) | |||||
Goodwill on acquisition | 215 | 219 | |||||
Total consideration | 279 | $ 279 | |||||
Cash | 0 | ||||||
Trade receivables | 0 | ||||||
Inventories | 0 | ||||||
Other current assets | 0 | ||||||
Property, plant and equipment, net | 0 | ||||||
Identifiable intangible assets | 0 | ||||||
Other non-current assets | 4 | ||||||
Short-term debt | 0 | ||||||
Trade payables | 0 | ||||||
Other current liabilities | 0 | ||||||
Long-term debt | 0 | ||||||
Other non-current liabilities | 0 | ||||||
Net assets acquired | 4 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Noncontrolling Interest | 0 | ||||||
Goodwill on acquisition | (4) | ||||||
Total consideration | 0 | ||||||
Just Spices Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Cash | 2 | $ 2 | |||||
Trade receivables | 4 | 4 | |||||
Inventories | 7 | 7 | |||||
Other current assets | 9 | 9 | |||||
Property, plant and equipment, net | 1 | 1 | |||||
Identifiable intangible assets | 172 | 172 | |||||
Other non-current assets | 7 | 0 | |||||
Trade payables | (10) | (10) | |||||
Other current liabilities | (12) | (12) | |||||
Other non-current liabilities | (54) | (54) | |||||
Net assets acquired | 126 | 119 | |||||
Goodwill on acquisition | 156 | $ 163 | 167 | ||||
Total consideration | 243 | $ 243 | |||||
Cash | 0 | ||||||
Trade receivables | 0 | ||||||
Inventories | 0 | ||||||
Other current assets | 0 | ||||||
Property, plant and equipment, net | 0 | ||||||
Identifiable intangible assets | 0 | ||||||
Other non-current assets | 7 | ||||||
Trade payables | 0 | ||||||
Other current liabilities | 0 | ||||||
Other non-current liabilities | 0 | ||||||
Net assets acquired | 7 | ||||||
Goodwill on acquisition | $ (11) | ||||||
Total consideration | $ 0 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Hemmer Purchase Price Allocation to Identifiable Intangible Assets Acquired (Details) - Hemmer Acquisition - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2022 |
Business Acquisition [Line Items] | ||
Identifiable intangible assets | $ 122 | $ 122 |
Definite-lived trademarks | ||
Business Acquisition [Line Items] | ||
Identifiable intangible assets | $ 101 | |
Definite-lived intangible asset, weighted average life | 13 years | |
Customer-related assets | ||
Business Acquisition [Line Items] | ||
Identifiable intangible assets | $ 21 | |
Definite-lived intangible asset, weighted average life | 15 years |
Acquisitions and Divestitures_5
Acquisitions and Divestitures - Just Spices Additional Information (Details) € in Millions, $ in Millions | Jan. 18, 2022 USD ($) | Jan. 18, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Sep. 24, 2022 USD ($) | Dec. 25, 2021 USD ($) | Dec. 26, 2020 USD ($) |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 30,833 | $ 31,296 | $ 33,089 | |||
Just Spices Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Percent acquired | 85% | |||||
Cash consideration paid | $ 243 | € 214 | ||||
Goodwill | $ 167 | $ 156 | $ 163 |
Acquisitions and Divestitures_6
Acquisitions and Divestitures - Just Spices Purchase Price Allocation to Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jun. 25, 2022 | Dec. 31, 2022 | Sep. 24, 2022 | Jan. 18, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Business Acquisition [Line Items] | ||||||
Goodwill on acquisition | $ 30,833 | $ 31,296 | $ 33,089 | |||
Just Spices Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Cash | 2 | $ 2 | ||||
Cash | 0 | |||||
Trade receivables | 4 | 4 | ||||
Trade receivables | 0 | |||||
Inventories | 7 | 7 | ||||
Inventories | 0 | |||||
Other current assets | 9 | 9 | ||||
Other current assets | 0 | |||||
Property, plant and equipment, net | 1 | 1 | ||||
Property, plant and equipment, net | 0 | |||||
Identifiable intangible assets | 172 | 172 | ||||
Identifiable intangible assets | 0 | |||||
Other non-current assets | 7 | 0 | ||||
Other non-current assets | 7 | |||||
Trade payables | (10) | (10) | ||||
Trade payables | 0 | |||||
Other current liabilities | (12) | (12) | ||||
Other current liabilities | 0 | |||||
Other non-current liabilities | (54) | (54) | ||||
Other non-current liabilities | 0 | |||||
Net assets acquired | 126 | 119 | ||||
Net assets acquired | 7 | |||||
Redeemable noncontrolling interest | (39) | (43) | ||||
Redeemable noncontrolling interest | 4 | |||||
Goodwill on acquisition | 156 | $ 163 | 167 | |||
Goodwill on acquisition | $ (11) | |||||
Total consideration | 243 | $ 243 | ||||
Total consideration | $ 0 |
Acquisitions and Divestitures_7
Acquisitions and Divestitures - Just Spices Purchase Price Allocation to Identifiable Intangible Assets Acquired (Details) - Just Spices Acquisition - USD ($) $ in Millions | Jan. 18, 2022 | Dec. 31, 2022 |
Business Acquisition [Line Items] | ||
Identifiable intangible assets | $ 172 | $ 172 |
Definite-lived trademarks | ||
Business Acquisition [Line Items] | ||
Identifiable intangible assets | $ 72 | |
Definite-lived intangible asset, weighted average life | 10 years | |
Customer-related assets | ||
Business Acquisition [Line Items] | ||
Identifiable intangible assets | $ 100 | |
Definite-lived intangible asset, weighted average life | 15 years |
Acquisitions and Divestitures_8
Acquisitions and Divestitures - Assan Foods Additional Information (Details) R$ in Millions, $ in Millions | 3 Months Ended | ||||
Oct. 01, 2021 BRL (R$) | Dec. 25, 2021 USD ($) | Dec. 31, 2022 USD ($) | Oct. 01, 2021 USD ($) | Dec. 26, 2020 USD ($) | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 31,296 | $ 30,833 | $ 33,089 | ||
Assan Foods Acquisition | |||||
Business Acquisition [Line Items] | |||||
Total consideration paid | R$ | R$ 79 | ||||
Cash consideration paid | R$ | R$ 70 | ||||
Contingent consideration | $ 9 | ||||
Goodwill | 51 | $ 64 | |||
Extinguishment of debt, amount | 29 | ||||
Long-term debt | $ (1) | $ (4) |
Acquisitions and Divestitures_9
Acquisitions and Divestitures - Assan Foods Purchase Price Allocation to Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 | Oct. 01, 2021 | Dec. 26, 2020 |
Business Acquisition [Line Items] | ||||
Goodwill on acquisition | $ 30,833 | $ 31,296 | $ 33,089 | |
Assan Foods Acquisition | ||||
Business Acquisition [Line Items] | ||||
Cash | 4 | |||
Trade receivables | 24 | |||
Inventories | 26 | |||
Other current assets | 2 | |||
Property, plant and equipment, net | 12 | |||
Identifiable intangible assets | 16 | |||
Other non-current assets | 5 | |||
Short-term debt | (21) | |||
Current portion of long-term debt | (5) | |||
Trade payables | (25) | |||
Other current liabilities | (2) | |||
Long-term debt | (4) | $ (1) | ||
Other non-current liabilities | (4) | |||
Net assets acquired | 28 | |||
Goodwill on acquisition | 51 | $ 64 | ||
Total consideration | $ 79 |
Acquisitions and Divestiture_10
Acquisitions and Divestitures - Assan Foods Purchase Price Allocation to Identifiable Intangible Assets Acquired (Details) - Assan Foods Acquisition $ in Millions | 3 Months Ended |
Dec. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | |
Identifiable intangible assets | $ 16 |
Definite-lived trademarks | |
Business Acquisition [Line Items] | |
Identifiable intangible assets | $ 13 |
Definite-lived intangible asset, weighted average life | 10 years |
Customer-related assets | |
Business Acquisition [Line Items] | |
Identifiable intangible assets | $ 3 |
Definite-lived intangible asset, weighted average life | 10 years |
Acquisitions and Divestiture_11
Acquisitions and Divestitures - Other Acquisitions Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Business Acquisition [Line Items] | |||
Deal costs | $ 9,000,000 | $ 11,000,000 | $ 8,000,000 |
Acquisitions | |||
Business Acquisition [Line Items] | |||
Deal costs | $ 0 |
Acquisitions and Divestiture_12
Acquisitions and Divestitures - Powdered Cheese Transaction Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Business Acquisition [Line Items] | |||||
Gain (loss) on disposition of business | $ 25 | $ 44 | $ (2) | ||
Powdered Cheese Transaction | |||||
Business Acquisition [Line Items] | |||||
Proceeds from divestiture of businesses | $ 108 | ||||
Gain (loss) on disposition of business | $ 26 |
Acquisitions and Divestiture_13
Acquisitions and Divestitures - Cheese Transaction Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Nov. 29, 2021 USD ($) goodwillReportingUnit | Sep. 24, 2022 USD ($) | Jun. 25, 2022 USD ($) | Mar. 26, 2022 USD ($) | Dec. 25, 2021 USD ($) | Jun. 26, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 25, 2021 USD ($) | Dec. 26, 2020 USD ($) | |
Business Acquisition [Line Items] | |||||||||
Long-term deferred income | $ 1,534 | $ 1,477 | $ 1,534 | ||||||
Other current liabilities | 1,944 | 2,194 | 1,944 | ||||||
Proceeds from divestiture of businesses, net of cash divested | $ 20 | (88) | (5,014) | $ 0 | |||||
Gain (loss) on disposition of business | 25 | 44 | $ (2) | ||||||
Impairment losses | $ 67 | $ 395 | 1,240 | 462 | $ 1,307 | ||||
Cheese Divestiture Licenses | |||||||||
Business Acquisition [Line Items] | |||||||||
Long-term deferred income | 1,500 | ||||||||
Other current liabilities | $ 56 | ||||||||
Cheese Transaction | Philadelphia | License | |||||||||
Business Acquisition [Line Items] | |||||||||
Disposal group, including discontinued operation, revenue recognition term | 3 years | ||||||||
Cheese Transaction | Kraft And Velveeta | License | |||||||||
Business Acquisition [Line Items] | |||||||||
Disposal group, including discontinued operation, revenue recognition term | 30 years | ||||||||
Cheese Transaction, Disposal Group | |||||||||
Business Acquisition [Line Items] | |||||||||
Gain (loss) on disposition of business | $ 27 | $ (27) | |||||||
Disposal Group, Disposed of by Sale | Cheese Transaction | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration received on sale of assets | $ 3,300 | ||||||||
Proceeds from divestiture of businesses | 3,200 | ||||||||
Disposal Group, Including Discontinued Operation, Intangible Assets | $ 1,600 | ||||||||
Number of disposal group components | goodwillReportingUnit | 2 | ||||||||
Disposal Group, Disposed of by Sale | Cheese Transaction | License | |||||||||
Business Acquisition [Line Items] | |||||||||
Disposal group, annual revenue expected | $ 56 | ||||||||
Disposal Group, Disposed of by Sale | Cheese Transaction | Philadelphia | |||||||||
Business Acquisition [Line Items] | |||||||||
Transitional license term | 3 years | ||||||||
Disposal Group, held-for-sale | Cheese Transaction, Disposal Group | |||||||||
Business Acquisition [Line Items] | |||||||||
Disposal Group, Including Discontinued Operation, Intangible Assets | $ 141 |
Acquisitions and Divestiture_14
Acquisitions and Divestitures - Nuts Transaction Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Mar. 26, 2022 USD ($) | Dec. 25, 2021 USD ($) | Jun. 26, 2021 USD ($) | Mar. 27, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 25, 2021 USD ($) | Dec. 26, 2020 USD ($) | Feb. 10, 2021 USD ($) manufacturingFacilities | |
Business Acquisition [Line Items] | ||||||||
Goodwill impairment losses | $ 11 | $ 53 | $ 444 | $ 318 | $ 2,343 | |||
Loss/(gain) on sale of business | $ (25) | (44) | $ 2 | |||||
Disposal Group, held-for-sale | Nuts Transaction | ||||||||
Business Acquisition [Line Items] | ||||||||
Consideration received on sale of assets | $ 3,400 | |||||||
Disposal group, number of manufacturing faciltiies | manufacturingFacilities | 3 | |||||||
Disposal group, including discontinued operations, net assets | $ 3,400 | |||||||
Goodwill impairment losses | $ 230 | |||||||
Loss/(gain) on sale of business | $ 19 | |||||||
Disposal Group, Disposed of by Sale | Nuts Transaction | ||||||||
Business Acquisition [Line Items] | ||||||||
Loss/(gain) on sale of business | $ 17 | $ 34 |
Restructuring Activities - Addi
Restructuring Activities - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) employee | Dec. 25, 2021 USD ($) | Dec. 26, 2020 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | $ 74 | $ 84 | $ (2) |
Restructuring Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, number of positions eliminated | employee | 575 | ||
Restructuring and related cost, expected number of positions eliminated | employee | 560 | ||
Restructuring and related cost, incurred cost (credit) | $ 74 | $ 84 | $ (2) |
Restructuring Activities | Severance and Employee Benefit Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 34 | ||
Restructuring Activities | Asset-Related Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 12 | ||
Restructuring Activities | Other Implementation Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | $ 28 |
Restructuring Activities - Rest
Restructuring Activities - Restructuring Reserve Roll-forward (Details) - Restructuring Activities $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 43 |
Charges/(credits) | 34 |
Cash payments | (38) |
Ending balance | 39 |
Severance and Employee Benefit Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 27 |
Charges/(credits) | 34 |
Cash payments | (33) |
Ending balance | 28 |
Other Exit Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 16 |
Charges/(credits) | 0 |
Cash payments | (5) |
Ending balance | $ 11 |
Restructuring Activities - Re_2
Restructuring Activities - Restructuring Costs by Type and Income Statement Location (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | $ 74 | $ 84 | $ (2) |
Severance and Employee Benefit Costs | Cost of products sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 1 | 12 | 0 |
Severance and Employee Benefit Costs | SG&A | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 33 | 21 | 1 |
Severance and Employee Benefit Costs | Other expense/(income) | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 0 | 1 | 0 |
Asset-Related Costs | Cost of products sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 12 | 0 | 13 |
Other Costs | Cost of products sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 14 | 1 | (33) |
Other Costs | SG&A | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 14 | 49 | 34 |
Other Costs | Other expense/(income) | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | $ 0 | $ 0 | $ (17) |
Restructuring Activities - Re_3
Restructuring Activities - Restructuring Costs Excluded from Segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Segment Reporting Information [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | $ 74 | $ 84 | $ (2) |
General corporate expenses | |||
Segment Reporting Information [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 9 | 47 | 9 |
North America | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | 40 | 15 | 4 |
International | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Restructuring and related cost, incurred cost (credit) | $ 25 | $ 22 | $ (15) |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 |
Inventory Disclosure [Abstract] | ||
Packaging and ingredients | $ 1,032 | $ 571 |
Spare parts | 208 | 208 |
Work in process | 334 | 268 |
Finished product | 2,077 | 1,682 |
Inventories | $ 3,651 | $ 2,729 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 10,952 | $ 10,674 |
Accumulated depreciation | (4,212) | (3,868) |
Property, plant and equipment, net | 6,740 | 6,806 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 200 | 207 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,536 | 2,508 |
Equipment, software and other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 7,055 | 6,957 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,161 | $ 1,002 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Additional information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 672 | $ 671 | $ 705 |
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 | |||
Jun. 25, 2022 | Mar. 27, 2021 | Sep. 26, 2020 | Dec. 31, 2022 | Dec. 25, 2021 | |
Goodwill [Roll Forward] | |||||
Beginning balance | $ 33,089 | $ 31,296 | $ 33,089 | ||
Impairment losses | (455) | (88) | |||
Acquisitions | 386 | 74 | |||
Measurement period adjustments | (18) | ||||
Reclassified to assets held for sale | $ (580) | (37) | (1,662) | ||
Translation adjustments and other | (339) | (117) | |||
Ending balance | 30,833 | 31,296 | |||
North America | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 29,929 | 28,242 | 29,929 | ||
Impairment losses | $ (235) | (455) | (35) | ||
Acquisitions | 0 | 0 | |||
Measurement period adjustments | 0 | ||||
Reclassified to assets held for sale | (1,700) | (37) | (1,662) | ||
Translation adjustments and other | (65) | 10 | |||
Ending balance | 27,685 | 28,242 | |||
International | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | $ 3,160 | 3,054 | 3,160 | ||
Impairment losses | 0 | (53) | |||
Acquisitions | 386 | 74 | |||
Measurement period adjustments | (18) | ||||
Reclassified to assets held for sale | 0 | 0 | |||
Translation adjustments and other | (274) | (127) | |||
Ending balance | $ 3,148 | $ 3,054 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Goodwill Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Mar. 27, 2022 USD ($) goodwillReportingUnit | Jun. 28, 2020 goodwillReportingUnit | Dec. 29, 2019 goodwillReportingUnit | Dec. 31, 2022 USD ($) | Sep. 24, 2022 USD ($) | Jun. 25, 2022 USD ($) | Mar. 26, 2022 USD ($) | Dec. 25, 2021 USD ($) | Jun. 26, 2021 USD ($) | Mar. 27, 2021 USD ($) goodwillReportingUnit | Sep. 26, 2020 USD ($) | Jun. 27, 2020 USD ($) | Mar. 28, 2020 USD ($) | Dec. 31, 2022 USD ($) segment goodwillReportingUnit | Dec. 25, 2021 USD ($) | Dec. 26, 2020 USD ($) | Jun. 26, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jan. 18, 2022 USD ($) | Sep. 15, 2020 goodwillReportingUnit | |
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill | $ 30,833 | $ 31,296 | $ 30,833 | $ 31,296 | $ 33,089 | |||||||||||||||
Measurement period adjustments | (18) | |||||||||||||||||||
Goodwill impairment losses | $ 11 | 53 | $ 444 | 318 | 2,343 | |||||||||||||||
Number of reportable segments | segment | 2 | |||||||||||||||||||
Number of reporting units | goodwillReportingUnit | 11 | |||||||||||||||||||
Goodwill, impairment loss, excluding impairment loss on the disposal group held for sale | $ 455 | 88 | ||||||||||||||||||
Goodwill, impaired, accumulated impairment loss | (11,300) | (10,900) | (11,300) | (10,900) | ||||||||||||||||
Reclassified to assets held for sale | $ 580 | 37 | 1,662 | |||||||||||||||||
Reporting units with goodwill transferred to held for sale | goodwillReportingUnit | 7 | |||||||||||||||||||
Disposal Group, held-for-sale | Cheese Transaction, Disposal Group | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill impairment losses | $ 300 | |||||||||||||||||||
North America | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill | 27,685 | 28,242 | 27,685 | 28,242 | 29,929 | |||||||||||||||
Measurement period adjustments | 0 | |||||||||||||||||||
Goodwill, impairment loss, excluding impairment loss on the disposal group held for sale | $ 235 | 455 | 35 | |||||||||||||||||
Reclassified to assets held for sale | $ 1,700 | 37 | 1,662 | |||||||||||||||||
International | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill | $ 3,148 | $ 3,054 | 3,148 | 3,054 | $ 3,160 | |||||||||||||||
Measurement period adjustments | (18) | |||||||||||||||||||
Goodwill, impairment loss, excluding impairment loss on the disposal group held for sale | 0 | 53 | ||||||||||||||||||
Reclassified to assets held for sale | $ 0 | $ 0 | ||||||||||||||||||
Pre-reorganization, number of reporting units with reassignment of assets and liabilities that maintained a goodwill balance | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Number of reporting units | goodwillReportingUnit | 6 | |||||||||||||||||||
Pre-reorganization, number of reporting units with no goodwill balance | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Number of reporting units | goodwillReportingUnit | 1 | |||||||||||||||||||
Canada Retail | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill | $ 1,200 | |||||||||||||||||||
Goodwill impairment losses | 221 | |||||||||||||||||||
Canada Retail | North America | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill impairment losses | $ 815 | |||||||||||||||||||
Puerto Rico Reporting Unit | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill impairment losses | 14 | $ 35 | ||||||||||||||||||
Pre-reorganization, number of reporting units with no impairment charge | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Number of reporting units | goodwillReportingUnit | 4 | |||||||||||||||||||
Enhancers, Specialty, and Away From Home (ESA) | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill | $ 11,400 | |||||||||||||||||||
Kids, Snacks, and Beverages (KSB) | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill | 9,300 | |||||||||||||||||||
Meal Foundations and Coffee (MFC) | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill | 6,000 | |||||||||||||||||||
Canada Foodservice | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill | $ 158 | |||||||||||||||||||
Canada Foodservice | North America | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill impairment losses | 205 | |||||||||||||||||||
Canada and North America Coffee | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill impairment losses | $ 220 | |||||||||||||||||||
Reporting Unit, Goodwill Balance Held | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Number of reporting units | goodwillReportingUnit | 7 | |||||||||||||||||||
Reporting Unit, Goodwill Balance Held | Percent Range - 20% or less | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill | $ 16,400 | |||||||||||||||||||
Reporting Unit, Goodwill Balance Held | 20 to 50% | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill | $ 14,500 | |||||||||||||||||||
Three Reporting Units | Percent Range - 20% or less | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Percentage of fair value in excess of carrying amount | 20% | |||||||||||||||||||
Four Reporting Units | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Number of reporting units | goodwillReportingUnit | 4 | |||||||||||||||||||
Four Reporting Units | 20 to 50% | Minimum | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Percentage of fair value in excess of carrying amount | 20% | |||||||||||||||||||
Four Reporting Units | 20 to 50% | Maximum | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Percentage of fair value in excess of carrying amount | 50% | |||||||||||||||||||
Post-reorganization, number of reporting units for impairment test | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Number of reporting units | goodwillReportingUnit | 3 | 6 | ||||||||||||||||||
ANJ and LATAM | International | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill impairment losses | $ 226 | |||||||||||||||||||
Number of reporting units, impairment recognized | goodwillReportingUnit | 2 | |||||||||||||||||||
Australia, New Zealand, and Japan | International | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill impairment losses | 83 | |||||||||||||||||||
Latin America | International | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill impairment losses | $ 143 | |||||||||||||||||||
U.S. Foodservice, Canada Retail, Canada Foodservice, and EMEA East | North America and International Segments | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill impairment losses | 1,800 | |||||||||||||||||||
U.S. Foodservice | North America | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill impairment losses | 655 | |||||||||||||||||||
EMEA East | International | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill impairment losses | $ 142 | |||||||||||||||||||
Reporting Units With 20% Or Less Excess Fair Value Over Carrying Amount | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Percentage of fair value in excess of carrying amount | 20% | 20% | ||||||||||||||||||
Reporting Units With 20% Or More Excess Fair Value Over Carrying Amount | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Percentage of fair value in excess of carrying amount | 20% | 20% | ||||||||||||||||||
Just Spices Acquisition | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill | $ 156 | $ 163 | $ 156 | $ 167 | ||||||||||||||||
Measurement period adjustments | (4) | |||||||||||||||||||
Goodwill on acquisition | $ (11) | |||||||||||||||||||
Assan Foods Acquisition and BR Spices Acquisition | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Measurement period adjustments | $ 15 | |||||||||||||||||||
Hemmer Acquisition | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Goodwill | 215 | 215 | $ 219 | |||||||||||||||||
Goodwill on acquisition | $ (4) | |||||||||||||||||||
Just Spices Acquisition and Hemmer Acquisition | ||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||
Measurement period adjustments | $ (11) |
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 | |||
Sep. 24, 2022 | Jun. 25, 2022 | Dec. 25, 2021 | Dec. 31, 2022 | Dec. 25, 2021 | |
Indefinite-lived Intangible Assets [Roll Forward] | |||||
Beginning balance | $ 39,419 | $ 42,267 | |||
Impairment losses | $ (67) | $ (395) | $ (1,240) | (462) | (1,307) |
Reclassified to assets held for sale | (1,487) | ||||
Translation adjustments and other | (405) | (54) | |||
Ending balance | $ 39,419 | $ 38,552 | $ 39,419 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Indefinite-Lived Intangible Assets Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Mar. 27, 2022 USD ($) Brand | Sep. 24, 2022 USD ($) | Jun. 25, 2022 USD ($) | Dec. 25, 2021 USD ($) | Jun. 26, 2021 USD ($) | Jun. 27, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 25, 2021 USD ($) | Jun. 26, 2022 USD ($) | Mar. 28, 2022 USD ($) | Mar. 28, 2021 USD ($) goodwillReportingUnit | Dec. 26, 2020 USD ($) | Mar. 29, 2020 Brand | |
Indefinite-lived Intangible Assets [Line Items] | |||||||||||||
Impairment losses | $ 67 | $ 395 | $ 1,240 | $ 462 | $ 1,307 | ||||||||
Indefinite-lived intangible assets | 39,419 | $ 38,552 | $ 39,419 | $ 42,267 | |||||||||
Brand, percentage of fair value in excess of carrying value | 20% | ||||||||||||
Percent Range - 20% or less | Impaired Brand | |||||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||||
Indefinite-lived intangible assets | $ 16,600 | ||||||||||||
Percentage of fair value in excess of carrying amount | 20% | ||||||||||||
20 to 50% | Impaired Brand | |||||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||||
Indefinite-lived intangible assets | $ 2,500 | ||||||||||||
20 to 50% | Impaired Brand | Minimum | |||||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||||
Percentage of fair value in excess of carrying amount | 20% | ||||||||||||
20 to 50% | Impaired Brand | Maximum | |||||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||||
Percentage of fair value in excess of carrying amount | 50% | ||||||||||||
In Excess of 50% | Impaired Brand | |||||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||||
Indefinite-lived intangible assets | $ 19,400 | ||||||||||||
Percentage of fair value in excess of carrying amount | 50% | ||||||||||||
North America | |||||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||||
Impairment losses | 50 | ||||||||||||
International | |||||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||||
Impairment losses | $ 17 | ||||||||||||
Maxwell House, Miracle Whip, Jet Puffed, Classico | |||||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||||
Number of brands | Brand | 4 | ||||||||||||
Indefinite-lived intangible assets | $ 3,200 | $ 2,800 | |||||||||||
Jet Puffed and Plasmon | |||||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||||
Indefinite-lived intangible assets | $ 204 | ||||||||||||
Plasmon and Maxwell House | |||||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||||
Impairment losses | $ 69 | ||||||||||||
Number of brands, impairment recognized | goodwillReportingUnit | 2 | ||||||||||||
Plasmon | International | |||||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||||
Impairment losses | 45 | ||||||||||||
Maxwell House | |||||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||||
Impairment losses | $ 140 | ||||||||||||
Maxwell House | North America | |||||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||||
Impairment losses | $ 24 | ||||||||||||
Kraft Brand | |||||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||||
Impairment losses | $ 1,200 | ||||||||||||
Oscar Mayer, Maxwell House, Velveeta, Cool Whip, Plasmon, ABC, Classico, Wattie's and Planter's | |||||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||||
Impairment losses | 1,100 | ||||||||||||
Number of brands, impairment recognized | Brand | 9 | ||||||||||||
Oscar Mayer, Maxwell House, Velveeta, Cool Whip, Plasmon, ABC, Classico, Wattie's and Planter's | North America | |||||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||||
Impairment losses | 956 | ||||||||||||
Oscar Mayer, Maxwell House, Velveeta, Cool Whip, Plasmon, ABC, Classico, Wattie's and Planter's | International | |||||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||||
Impairment losses | 100 | ||||||||||||
Oscar Mayer | |||||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||||
Impairment losses | 626 | ||||||||||||
Velveeta, Cool Whip, Plasmon, ABC, Classico, Wattie's, and Planters | |||||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||||
Impairment losses | $ 290 | ||||||||||||
Number of brands, impairment recognized | Brand | 7 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets - Definite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross | $ 5,926 | $ 5,725 |
Accumulated Amortization | (1,829) | (1,602) |
Net | 4,097 | 4,123 |
Trademarks | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross | 2,223 | 2,091 |
Accumulated Amortization | (649) | (556) |
Net | 1,574 | 1,535 |
Customer-related assets | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross | 3,690 | 3,617 |
Accumulated Amortization | (1,177) | (1,040) |
Net | 2,513 | 2,577 |
Other | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross | 13 | 17 |
Accumulated Amortization | (3) | (6) |
Net | $ 10 | $ 11 |
Goodwill and Intangible Asset_8
Goodwill and Intangible Assets - Definite-Lived Intangible Assets Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 26, 2021 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of definite-lived intangible assets | $ 261 | $ 239 | $ 264 | |
Finite-lived intangible assets acquired | 315 | |||
Impairment of intangible assets, finite-lived | $ 9 | 7 | ||
Amortization of definite-lived intangible assets, year one | 260 | |||
Amortization of definite-lived intangible assets, year two | 260 | |||
Amortization of definite-lived intangible assets, year three | 250 | |||
Amortization of definite-lived intangible assets, year four | 250 | |||
Amortization of definite-lived intangible assets, year five | $ 250 |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes and Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Income/(loss) before income taxes: | |||
United States | $ 1,575 | $ (215) | $ 363 |
Non-U.S. | 1,391 | 1,923 | 667 |
Income/(loss) before income taxes | 2,966 | 1,708 | 1,030 |
Current: | |||
U.S. federal | 620 | 1,421 | 634 |
U.S. state and local | 79 | 120 | 91 |
Non-U.S. | 177 | 185 | 287 |
Current income tax expense/(benefit) | 876 | 1,726 | 1,012 |
Deferred: | |||
U.S. federal | (192) | (1,086) | (232) |
U.S. state and local | (35) | (211) | (109) |
Non-U.S. | (51) | 255 | (2) |
Deferred income tax expense (benefit) | (278) | (1,042) | (343) |
Total provision for/(benefit from) income taxes | $ 598 | $ 684 | $ 669 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 25, 2022 | Dec. 25, 2021 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | Dec. 28, 2019 | |
Income Taxes [Line Items] | ||||||
Effective income tax rate reconciliation, percent | 20.20% | 40.10% | 65% | |||
Deferred income tax liabilities | $ 11,525 | $ 11,204 | $ 11,525 | |||
Deferred income tax assets | (1,224) | (1,299) | (1,224) | |||
Operating loss carryforwards | 621 | |||||
Deferred tax assets, operating loss carryforwards, subject to expiration | 47 | |||||
Deferred tax assets, operating loss carryforwards, not subject to expiration | 575 | |||||
Deferred tax assets, operating loss carryforwards, foreign | 180 | |||||
Deferred tax assets, operating loss carryforwards, state and local | 22 | |||||
Deferred tax assets, tax credit carryforwards | 55 | |||||
Deferred Tax Assets, Tax Credit Carryforwards, State | 22 | |||||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 18 | |||||
Deferred Tax Assets, Tax Credit Carryforward, U.S. Foreign | 15 | |||||
Unrecognized tax benefits | 441 | 455 | 441 | $ 421 | $ 406 | |
Unrecognized tax benefits that would impact effective tax rate | 425 | |||||
Decrease in unrecognized tax benefits is reasonably possible | 3 | |||||
Unrecognized tax benefits, income tax penalties and interest expense | 20 | 9 | 10 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 81 | 100 | 81 | |||
U.S. Tax Reform, transition tax for accumulated foreign earnings, liability | 10 | 10 | 10 | |||
Undistributed earnings of foreign subsidiaries | 135 | 90 | 135 | |||
Deferred tax liability not recognized, amount of unrecognized deferred tax liability, undistributed earnings of foreign subsidiaries | 50 | |||||
Income tax expense (benefit) | $ 598 | 684 | $ 669 | |||
Accounting Standards Update 2016-02 | ||||||
Income Taxes [Line Items] | ||||||
Deferred income tax liabilities | 210 | 210 | ||||
Deferred income tax assets | 210 | $ 210 | ||||
Cheese Transaction | ||||||
Income Taxes [Line Items] | ||||||
Income tax expense (benefit) | $ 620 | |||||
Nuts Transaction, Disposal Group | ||||||
Income Taxes [Line Items] | ||||||
Income tax expense (benefit) | $ 700 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
U.S. federal statutory tax rate | 21% | 21% | 21% |
Tax on income of foreign subsidiaries | (8.20%) | (12.90%) | (26.10%) |
U.S. state and local income taxes, net of federal tax benefit | 1.80% | (0.50%) | 0.60% |
Audit settlements and changes in uncertain tax positions | 1.30% | 0.40% | 3.70% |
Global intangible low-taxed income | 1.80% | 5.50% | 6.50% |
Goodwill impairment | 3.90% | 4.70% | 57.20% |
(Losses)/gains related to acquisitions and divestitures | 0.30% | 12.90% | 0.10% |
Movement of valuation allowance reserves | 0.80% | 0.10% | (0.40%) |
Deferred tax effect of tax law changes | (0.90%) | 9.80% | (2.10%) |
Deferred tax adjustments | (1.10%) | 0.30% | 2.80% |
Other | (0.50%) | (1.20%) | 1.70% |
Effective tax rate | 20.20% | 40.10% | 65% |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 |
Deferred income tax liabilities: | ||
Intangible assets, net | $ 9,985 | $ 10,212 |
Property, plant and equipment, net | 680 | 748 |
Deferred Tax Liabilities, Right-of-use assets | 131 | 110 |
Other | 408 | 455 |
Deferred income tax liabilities | 11,204 | 11,525 |
Deferred income tax assets: | ||
Other employee benefits | (111) | (119) |
Deferred income | (356) | (369) |
Deferred Tax Assets, Lease liabilities | 139 | 115 |
Other | (693) | (621) |
Deferred income tax assets | (1,299) | (1,224) |
Valuation allowance | 96 | 101 |
Net deferred income tax liabilities | $ 10,001 | $ 10,402 |
Income Taxes - Changes in Unrec
Income Taxes - Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at the beginning of the period | $ 441 | $ 421 | $ 406 |
Increases for tax positions of prior years | 8 | 13 | 13 |
Decreases for tax positions of prior years | (27) | (51) | (34) |
Increases based on tax positions related to the current year | 53 | 75 | 57 |
Decreases due to settlements with taxing authorities | (6) | (1) | (8) |
Decreases due to lapse of statute of limitations | (14) | (16) | (13) |
Balance at the end of the period | $ 455 | $ 441 | $ 421 |
Employees' Stock Incentive Pl_3
Employees' Stock Incentive Plans - Additional Information (Details) | 12 Months Ended | ||||||
May 07, 2020 shares | Apr. 30, 2016 shares | Jul. 02, 2015 shares | Dec. 31, 2022 USD ($) annual_installment $ / shares shares | Dec. 25, 2021 USD ($) $ / shares | Dec. 26, 2020 USD ($) $ / shares | Dec. 28, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options, exercises in period, intrinsic value | $ | $ 24,000,000 | $ 23,000,000 | $ 24,000,000 | ||||
Proceeds from stock options exercised | $ | 57,000,000 | 53,000,000 | 85,000,000 | ||||
Tax benefit upon the exercise of stock options | $ | $ 8,000,000 | $ 12,000,000 | $ 16,000,000 | ||||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expected dividend yield | 4.40% | 4.60% | 5.70% | ||||
Expected volatility | 28.50% | 32.10% | 33.60% | ||||
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 | $ 37.50 | $ 36.36 | $ 29.27 | ||||
Equity instruments other than options, vested in period, fair value | $ | $ 163,000,000 | $ 135,000,000 | $ 6,000,000 | ||||
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 | $ 34.45 | $ 35.03 | $ 28.50 | ||||
Equity instruments other than options, vested in period, fair value | $ | $ 58,000,000 | $ 69,000,000 | $ 0 | ||||
Expected dividend yield | 4.41% | 4.63% | 5.10% | ||||
Expected volatility | 32.92% | 38.90% | |||||
All Equity Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Nonvested awards, compensation cost not yet recognized | $ | $ 209,000,000 | ||||||
Nonvested awards, compensation cost not yet recognized, period for recognition | 2 years | ||||||
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 | ||||||
2020 Omnibus Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized (in shares) | 36,000,000 | ||||||
Vesting period | 3 years | ||||||
2020 Omnibus Incentive Plan | Non-Qualified Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration period | 10 years | ||||||
2020 Omnibus Incentive Plan | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting, annual installments period | 3 years | ||||||
2020 Omnibus Incentive Plan | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting, annual installments period | 4 years | ||||||
2016 Omnibus Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized (in shares) | 18,000,000 | ||||||
2016 Omnibus Incentive Plan | Non-Qualified Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration period | 10 years | ||||||
2016 Omnibus Incentive Plan - Awards Issued Prior 2019 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 5 years | ||||||
2016 Omnibus Incentive Plan - Awards Granted In 2019 | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Award exercisable, annual installments period | 3 years | ||||||
2016 Omnibus Incentive Plan - Awards Granted In 2019 | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 5 years | ||||||
Award exercisable, annual installments period | 4 years | ||||||
2013 Omnibus Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized (in shares) | 17,555,947 | ||||||
Vesting period | 5 years | ||||||
Business acquisition, common stock of parent, conversion ration to common stock of successor company | 0.443332 | ||||||
2013 Omnibus Incentive Plan | Non-Qualified Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration period | 10 years | ||||||
2012 Performance Incentive Plan | |||||||
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 | ||||||
2012 Performance Incentive Plan | 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 | Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration period | 10 years | ||||||
Award exercisable, number of annual installments | annual_installment | 3 | ||||||
2012 Performance Incentive Plan | Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award exercisable, number of annual installments | annual_installment | 2 |
Employees' Stock Incentive Pl_4
Employees' Stock Incentive Plans - Schedule of Weighted Average Black-Scholes Fair Value Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per share (in usd per share) | $ 6.46 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.64% | 1.03% | 0.45% |
Expected term | 6 years 6 months | 6 years 6 months | 6 years 6 months |
Expected volatility | 28.50% | 32.10% | 33.60% |
Expected dividend yield | 4.40% | 4.60% | 5.70% |
Weighted average grant date fair value per share (in usd per share) | $ 6.46 | $ 6.63 | $ 4.77 |
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. 31, 2022 USD ($) $ / shares shares | |
Number of Stock Options | |
Beginning balance (in shares) | shares | 11,778,068 |
Granted (in shares) | shares | 941,146 |
Forfeited (in shares) | shares | (1,091,515) |
Exercised (in shares) | shares | (2,068,636) |
Ending balance (in shares) | shares | 9,559,063 |
Exercisable (in shares) | shares | 6,621,706 |
Weighted Average Exercise Price (per share) | |
Options outstanding at period start, weighted average exercise price (in dollars per share) | $ / shares | $ 45.43 |
Options granted, weighted average exercise price (in dollars per share) | $ / shares | 38.68 |
Options forfeited, weighted average exercise price (in dollars per share) | $ / shares | 61.80 |
Options exercised, weighted average exercise price (in dollars per share) | $ / shares | 27.42 |
Options outstanding at period end, weighted average exercise price (in dollars per share) | $ / shares | 46.80 |
Options exercisable, weighed average exercise price (in dollars per share) | $ / shares | $ 47.43 |
Options outstanding, intrinsic value | $ | $ 37 |
Options outstanding, weighted average remaining contractual term | 4 years |
Options exercisable, intrinsic value | $ | $ 29 |
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. 31, 2022 $ / shares shares | |
Number of Stock Options | |
Beginning balance (in shares) | shares | 4,408,137 |
Granted (in shares) | shares | 941,146 |
Forfeited (in shares) | shares | (525,007) |
Vested (in shares) | shares | (1,886,919) |
Ending balance (in shares) | shares | 2,937,357 |
Weighted Average Grant Date Fair Value (per share) | |
Options unvested at period start, weighted average grant date fair value (in dollars per share) | $ / shares | $ 7.52 |
Options granted, weighted average grant date fair value (in usd per share) | $ / shares | 6.46 |
Options forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 7.90 |
Options vested, weighted average grant date fair value (in dollars per share) | $ / shares | 6.87 |
Options unvested at period end, weighted average grant date fair value (in dollars per share) | $ / shares | $ 7.53 |
Employees' Stock Incentive Pl_7
Employees' Stock Incentive Plans - Schedule of RSU Activity and Related Information (Details) - RSUs - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Number of Units | |||
Beginning balance (in shares) | 12,476,390 | ||
Granted (in shares) | 3,087,495 | ||
Forfeited (in shares) | (1,941,019) | ||
Vested (in shares) | (4,292,148) | ||
Ending balance (in shares) | 9,330,718 | 12,476,390 | |
Weighted Average Grant Date Fair Value (per share) | |||
Outstanding at period start, weighted average grant date fair value (in dollars per share) | $ 33.08 | ||
Granted, weighted average grant date fair value (in dollars per share) | 37.50 | $ 36.36 | $ 29.27 |
Forfeited, weighted average grant date fair value (in dollars per share) | 33.27 | ||
Vested, weighted average grant date fair value (in dollars per share) | 33.41 | ||
Outstanding at period end, weighted average grant date fair value (in dollars per share) | $ 34.36 | $ 33.08 |
Employees' Stock Incentive Pl_8
Employees' Stock Incentive Plans - Schedule of PSU Activity and Related Information (Details) - PSUs - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Number of Units | |||
Beginning balance (in shares) | 5,319,980 | ||
Granted (in shares) | 1,737,198 | ||
Forfeited (in shares) | (1,525,761) | ||
Vested (in shares) | (1,512,763) | ||
Ending balance (in shares) | 4,018,654 | 5,319,980 | |
Weighted Average Grant Date Fair Value (per share) | |||
Outstanding at period start, weighted average grant date fair value (in dollars per share) | $ 27.24 | ||
Granted, weighted average grant date fair value (in dollars per share) | 34.45 | $ 35.03 | $ 28.50 |
Forfeited, weighted average grant date fair value (in dollars per share) | 21.31 | ||
Vested, weighted average grant date fair value (in dollars per share) | 28.41 | ||
Outstanding at period end, weighted average grant date fair value (in dollars per share) | $ 32.15 | $ 27.24 |
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. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pre-tax compensation cost | $ 148 | $ 197 | $ 156 |
Related tax benefit | 34 | 43 | 33 |
After-tax compensation cost | $ 114 | $ 154 | $ 123 |
Postemployment Benefits - Pensi
Postemployment Benefits - Pension Plans - Changes in Benefit Obligations, Fair Value of Plan Assets, and Funded Status (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Defined Benefit Plan, Type [Extensible Enumeration] | Pension Benefits | ||
Pension Benefits | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | $ 7,355,000,000 | ||
Fair value of plan assets at end of year | 4,822,000,000 | $ 7,355,000,000 | |
Settlement of pension benefit obligations | 222,000,000 | 182,000,000 | |
Pension Benefits | U.S. Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 3,852,000,000 | 4,191,000,000 | |
Service cost | 4,000,000 | 5,000,000 | $ 6,000,000 |
Interest cost | 118,000,000 | 90,000,000 | 123,000,000 |
Benefits paid | (156,000,000) | (132,000,000) | |
Actuarial losses/(gains) | (988,000,000) | (125,000,000) | |
Currency | 0 | 0 | |
Settlements | (176,000,000) | (180,000,000) | |
Curtailments | (1,000,000) | 0 | |
Special/contractual termination benefits | 0 | 3,000,000 | |
Benefit obligation at end of year | 2,653,000,000 | 3,852,000,000 | 4,191,000,000 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 4,445,000,000 | 4,627,000,000 | |
Actual return on plan assets | (1,000,000,000) | 130,000,000 | |
Employer contributions | 0 | 0 | |
Benefits paid | (156,000,000) | (132,000,000) | |
Currency | 0 | 0 | |
Settlements | (176,000,000) | (180,000,000) | |
Fair value of plan assets at end of year | 3,113,000,000 | 4,445,000,000 | 4,627,000,000 |
Net pension liability/(asset) recognized at end of year | (460,000,000) | (593,000,000) | |
Pension Benefits | Non-U.S. Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 2,224,000,000 | 2,359,000,000 | |
Service cost | 14,000,000 | 16,000,000 | 16,000,000 |
Interest cost | 36,000,000 | 29,000,000 | 38,000,000 |
Benefits paid | (79,000,000) | (116,000,000) | |
Actuarial losses/(gains) | (632,000,000) | (35,000,000) | |
Currency | (191,000,000) | (28,000,000) | |
Settlements | (46,000,000) | (2,000,000) | |
Curtailments | 0 | 0 | |
Special/contractual termination benefits | 0 | 1,000,000 | |
Benefit obligation at end of year | 1,326,000,000 | 2,224,000,000 | 2,359,000,000 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 2,910,000,000 | 3,023,000,000 | |
Actual return on plan assets | (832,000,000) | 28,000,000 | |
Employer contributions | 11,000,000 | 15,000,000 | |
Benefits paid | (79,000,000) | (117,000,000) | |
Currency | (255,000,000) | (37,000,000) | |
Settlements | (46,000,000) | (2,000,000) | |
Fair value of plan assets at end of year | 1,709,000,000 | 2,910,000,000 | $ 3,023,000,000 |
Net pension liability/(asset) recognized at end of year | $ (383,000,000) | $ (686,000,000) |
Postemployment Benefits - Benef
Postemployment Benefits - Benefit Plans - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plans, cost | $ 98,000,000 | $ 103,000,000 | $ 91,000,000 |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net asset/(liability) recognized | 843,000,000 | 1,279,000,000 | |
Pension Benefits | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 2,600,000,000 | 3,800,000,000 | |
Special/contractual termination benefits | 0 | 3,000,000 | 0 |
Employer contributions | 0 | $ 0 | |
Defined benefit plan, expected future employer contributions, next fiscal year | $ 0 | ||
Pension Benefits | U.S. Plans | Fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 75% | 85% | |
Pension Benefits | U.S. Plans | Real assets and diversified credit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 15% | ||
Pension Benefits | U.S. Plans | Return seeking assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 10% | 15% | |
Pension Benefits | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 1,300,000,000 | $ 2,100,000,000 | |
Special/contractual termination benefits | 0 | 1,000,000 | 0 |
Employer contributions | 11,000,000 | 15,000,000 | |
Defined benefit plan, expected future employer contributions, next fiscal year | $ 11,000,000 | ||
Pension Benefits | Non-U.S. Plans | Fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 83% | ||
Pension Benefits | Non-U.S. Plans | Return seeking assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 9% | ||
Pension Benefits | Non-U.S. Plans | Multi-asset credit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 8% | ||
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net asset/(liability) recognized | $ 154,000,000 | 156,000,000 | |
Employer contributions | 12,000,000 | 13,000,000 | |
Defined benefit plan, expected future employer contributions, next fiscal year | 12,000,000 | ||
Curtailments | 0 | $ 4,000,000 | $ 0 |
Employer contributions excluding Medicare D subsidy | $ 12,000,000 | ||
Postretirement Benefits | Fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 70% | ||
Postretirement Benefits | Return seeking assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 30% | ||
Postretirement Benefits | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Year that health care cost trend rate reaches the ultimate trend rate | 2023 | ||
Postretirement Benefits | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Year that health care cost trend rate reaches the ultimate trend rate | 2030 |
Postemployment Benefits - Pen_2
Postemployment Benefits - Pension Plans - Amounts Recognized in Balance Sheet (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Other non-current assets | $ 908 | $ 1,366 |
Other current liabilities | (4) | (5) |
Accrued postemployment costs | (61) | (82) |
Net pension asset/(liability) recognized | $ 843 | $ 1,279 |
Postemployment Benefits - Pen_3
Postemployment Benefits - Pension Plans - Schedule of Accumulated Benefit Obligation in Excess of Fair Value of Plan Assets (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 |
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 | 96 | 162 |
Accumulated benefit obligation | 91 | 155 |
Fair value of plan assets | $ 31 | $ 75 |
Postemployment Benefits - Pen_4
Postemployment Benefits - Pension Plans - Schedule of Projected Benefit Obligation in Excess of Fair Value of Plan Assets (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 |
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 | 96 | 162 |
Accumulated benefit obligation | 91 | 155 |
Fair value of plan assets | $ 31 | $ 75 |
Postemployment Benefits - Pen_5
Postemployment Benefits - Pension Plans - Weighted Average Assumptions Used, Pension Benefit Obligation (Details) - Pension Benefits | Dec. 31, 2022 | Dec. 25, 2021 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.60% | 3.10% |
Rate of compensation increase | 4% | 4% |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.90% | 1.90% |
Rate of compensation increase | 3.80% | 3.80% |
Postemployment Benefits - Pen_6
Postemployment Benefits - Pension Plans - Net Cost/(Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of prior service costs/(credits) | $ (14) | $ (7) | $ (122) |
Pension Benefits | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 4 | 5 | 6 |
Interest cost | 118 | 90 | 123 |
Expected return on plan assets | (193) | (186) | (206) |
Amortization of prior service costs/(credits) | 0 | 0 | 0 |
Amortization of unrecognized losses/(gains) | 0 | 0 | 0 |
Settlements | (1) | (11) | (24) |
Special/contractual termination benefits | 0 | 3 | 0 |
Net pension cost/(benefit) | (72) | (99) | (101) |
Pension Benefits | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 14 | 16 | 16 |
Interest cost | 36 | 29 | 38 |
Expected return on plan assets | (69) | (94) | (103) |
Amortization of prior service costs/(credits) | 1 | 1 | 0 |
Amortization of unrecognized losses/(gains) | 1 | 2 | 1 |
Settlements | 15 | 1 | 0 |
Special/contractual termination benefits | 0 | 1 | 0 |
Net pension cost/(benefit) | $ (2) | $ (44) | $ (48) |
Postemployment Benefits - Pen_7
Postemployment Benefits - Pension Plans - Weighted Average Assumptions Used, Net Pension Cost (Details) - Pension Benefits | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - Service cost | 4% | 3.10% | 3.50% |
Discount rate - Interest cost | 4% | 2.30% | 2.80% |
Expected rate of return on plan assets | 5.30% | 4.20% | 4.40% |
Rate of compensation increase | 4% | 4% | 4.10% |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - Service cost | 2.40% | 2.10% | 2.50% |
Discount rate - Interest cost | 1.80% | 1.20% | 1.80% |
Expected rate of return on plan assets | 2.60% | 3.10% | 3.80% |
Rate of compensation increase | 3.80% | 3.50% | 3.70% |
Postemployment Benefits - Pen_8
Postemployment Benefits - Pension Plans - Weighted Average Asset Allocation of Plan Assets (Details) - Pension Benefits | Dec. 31, 2022 | Dec. 25, 2021 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 100% | 100% |
U.S. Plans | Fixed-income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 72% | 83% |
U.S. Plans | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 10% | 16% |
U.S. Plans | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 2% | 1% |
U.S. Plans | Alternative investments, including real assets and other fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 16% | 0% |
U.S. Plans | Certain insurance contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 0% | 0% |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 100% | 100% |
Non-U.S. Plans | Fixed-income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 52% | 53% |
Non-U.S. Plans | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 3% | 21% |
Non-U.S. Plans | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 19% | 9% |
Non-U.S. Plans | Alternative investments, including real assets and other fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 10% | 0% |
Non-U.S. Plans | Certain insurance contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 16% | 17% |
Postemployment Benefits - Pen_9
Postemployment Benefits - Pension Plans - Fair Value of Plan Assets (Details) - Pension Benefits - USD ($) | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | $ 4,822,000,000 | $ 7,355,000,000 | |
Cash collateral | 163,000,000 | 239,000,000 | |
Securities lending payable | 163,000,000 | 239,000,000 | |
Net impact on total plan assets at fair value | 0 | 0 | |
Total Fair Value | Total Level 3 investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 3,268,000,000 | 5,320,000,000 | |
Total Fair Value | Fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 2,663,000,000 | 4,408,000,000 | |
Total Fair Value | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 371,000,000 | 316,000,000 | |
Total Fair Value | Corporate bonds and other fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 2,292,000,000 | 4,092,000,000 | |
Total Fair Value | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 0 | 171,000,000 | |
Total Fair Value | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 330,000,000 | 247,000,000 | |
Total Fair Value | Alternative investments, including real assets and other fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 0 | 6,000,000 | |
Total Fair Value | Certain insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 275,000,000 | 488,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Total Level 3 investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 698,000,000 | 732,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 371,000,000 | 316,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 371,000,000 | 316,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds and other fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 0 | 171,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 327,000,000 | 245,000,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Alternative investments, including real assets and other fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Certain insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Total Level 3 investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 2,295,000,000 | 4,094,000,000 | |
Significant Other Observable Inputs (Level 2) | Fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 2,292,000,000 | 4,092,000,000 | |
Significant Other Observable Inputs (Level 2) | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Corporate bonds and other fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 2,292,000,000 | 4,092,000,000 | |
Significant Other Observable Inputs (Level 2) | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 3,000,000 | 2,000,000 | |
Significant Other Observable Inputs (Level 2) | Alternative investments, including real assets and other fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Certain insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Total Level 3 investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 275,000,000 | 494,000,000 | $ 83,000,000 |
Significant Unobservable Inputs (Level 3) | Fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Corporate bonds and other fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 0 | 0 | 1,000,000 |
Significant Unobservable Inputs (Level 3) | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Alternative investments, including real assets and other fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 0 | 6,000,000 | 35,000,000 |
Significant Unobservable Inputs (Level 3) | Certain insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value excluding investments measured at net asset value | 275,000,000 | 488,000,000 | $ 47,000,000 |
Investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | $ 1,554,000,000 | $ 2,035,000,000 |
Postemployment Benefits - Pe_10
Postemployment Benefits - Pension Plans - Changes in Level 3 Plan Assets (Details) - Pension Benefits - Significant Unobservable Inputs (Level 3) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Total Level 3 investments | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 494 | $ 83 |
Additions | 0 | 464 |
Net Realized Gain/(Loss) | 2 | (1) |
Net Unrealized Gain/(Loss) | (203) | (14) |
Net Purchases, Issuances and Settlements | (18) | (37) |
Transfers Into/(Out of) Level 3 | 0 | (1) |
Fair value of plan assets at end of year | 275 | 494 |
Alternative investments, including real assets and other fixed income | ||
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 | 35 |
Additions | 0 | 0 |
Net Realized Gain/(Loss) | 2 | (1) |
Net Unrealized Gain/(Loss) | (5) | (1) |
Net Purchases, Issuances and Settlements | (3) | (27) |
Transfers Into/(Out of) Level 3 | 0 | 0 |
Fair value of plan assets at end of year | 0 | 6 |
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 | 0 | 1 |
Additions | 0 | |
Net Realized Gain/(Loss) | 0 | |
Net Unrealized Gain/(Loss) | 0 | |
Net Purchases, Issuances and Settlements | 0 | |
Transfers Into/(Out of) Level 3 | (1) | |
Fair value of plan assets at end of year | 0 | 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 | 488 | 47 |
Additions | 0 | 464 |
Net Realized Gain/(Loss) | 0 | 0 |
Net Unrealized Gain/(Loss) | (198) | (13) |
Net Purchases, Issuances and Settlements | (15) | (10) |
Transfers Into/(Out of) Level 3 | 0 | 0 |
Fair value of plan assets at end of year | $ 275 | $ 488 |
Postemployment Benefits - Pe_11
Postemployment Benefits - Pension Plans - Expected Future Benefit Payments (Details) - Pension Benefits $ in Millions | Dec. 31, 2022 USD ($) |
U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 265 |
2024 | 260 |
2025 | 251 |
2026 | 234 |
2027 | 226 |
2028-2032 | 973 |
Non-U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 83 |
2024 | 77 |
2025 | 79 |
2026 | 81 |
2027 | 84 |
2028-2032 | $ 436 |
Postemployment Benefits - Postr
Postemployment Benefits - Postretirement Benefit Plans - Changes in Accumulated Benefit Obligation, Fair Value of Plan Assets, and Funded Status (Details) - Postretirement Benefits - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 995 | $ 1,302 | |
Service cost | 4 | 6 | $ 6 |
Interest cost | 27 | 20 | 33 |
Benefits paid | (80) | (94) | |
Actuarial losses/(gains) | (205) | (121) | |
Plan amendments | (2) | (116) | |
Currency | (6) | 1 | |
Curtailments | 0 | (3) | |
Benefit obligation at end of year | 733 | 995 | 1,302 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 1,151 | 1,153 | |
Actual return on plan assets | (196) | 80 | |
Employer contributions | 12 | 13 | |
Benefits paid | (80) | (95) | |
Fair value of plan assets at end of year | 887 | 1,151 | $ 1,153 |
Net pension liability/(asset) recognized at end of year | $ (154) | $ (156) |
Postemployment Benefits - Pos_2
Postemployment Benefits - Postretirement Benefit Plans - Amounts Recognized on Balance Sheet (Details) - Postretirement Benefits - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Other non-current assets | $ 244 | $ 287 |
Other current liabilities | (7) | (8) |
Accrued postemployment costs | (83) | (123) |
Net pension asset/(liability) recognized | $ 154 | $ 156 |
Postemployment Benefits - Pos_3
Postemployment Benefits - Postretirement Benefit Plans - Schedule of Accumulated Benefit Obligation in Excess of Fair Value of Plan Assets (Details) - Postretirement Benefits - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 90 | $ 131 |
Fair value of plan assets | $ 0 | $ 0 |
Postemployment Benefits - Pos_4
Postemployment Benefits - Postretirement Benefit Plans - Weighted Average Assumptions Used, Postretirement Benefit Obligation (Details) - Postretirement Benefits | Dec. 31, 2022 | Dec. 25, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.50% | 2.80% |
Health care cost trend rate assumed for next year | 6.60% | 5.90% |
Ultimate trend rate | 4.80% | 4.80% |
Postemployment Benefits - Pos_5
Postemployment Benefits - Postretirement Benefit Plans - Net Cost/(Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of prior service costs/(credits) | $ (14) | $ (7) | $ (122) |
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 4 | 6 | 6 |
Interest cost | 27 | 20 | 33 |
Expected return on plan assets | (54) | (49) | (49) |
Amortization of prior service costs/(credits) | (15) | (8) | (122) |
Amortization of unrecognized losses/(gains) | (15) | (16) | (14) |
Curtailments | 0 | (4) | 0 |
Net pension cost/(benefit) | $ (53) | $ (51) | $ (146) |
Postemployment Benefits - Pos_6
Postemployment Benefits - Postretirement Benefit Plans - Weighted Average Assumptions Used, Net Postretirement Cost (Details) - Postretirement Benefits | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - Service cost | 2.80% | 2.70% | 3.30% |
Discount rate - Interest cost | 3.40% | 1.60% | 2.70% |
Expected rate of return on plan assets | 5.40% | 4.40% | 4.70% |
Health care cost trend rate | 6.60% | 5.90% | 6.20% |
Postemployment Benefits - Pos_7
Postemployment Benefits - Postretirement Benefit Plans - Weighted Average Asset Allocation of Plan Assets (Details) - Postretirement Benefits | Dec. 31, 2022 | Dec. 25, 2021 |
Fixed-income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 61% | 61% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 33% | 36% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 6% | 3% |
Postemployment Benefits - Pos_8
Postemployment Benefits - Postretirement Benefit Plans - Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 |
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | $ 887 | $ 1,151 | $ 1,153 |
Postretirement Benefits | Total Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 702 | 938 | |
Postretirement Benefits | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 265 | 348 | |
Postretirement Benefits | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 437 | 590 | |
Postretirement Benefits | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 185 | 213 | |
Postretirement Benefits | Fixed-income securities | Total Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 539 | 702 | |
Postretirement Benefits | Fixed-income securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 102 | 112 | |
Postretirement Benefits | Fixed-income securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 437 | 590 | |
Postretirement Benefits | Fixed-income securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Government bonds | Total Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 102 | 112 | |
Postretirement Benefits | Government bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 102 | 112 | |
Postretirement Benefits | Government bonds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Government bonds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Corporate bonds and other fixed-income securities | Total Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 437 | 590 | |
Postretirement Benefits | Corporate bonds and other fixed-income securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Corporate bonds and other fixed-income securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 437 | 590 | |
Postretirement Benefits | Corporate bonds and other fixed-income securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Equity securities | Total Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 163 | 236 | |
Postretirement Benefits | Equity securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 163 | 236 | |
Postretirement Benefits | Equity securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Equity securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 4,822 | 7,355 | |
Pension Benefits | Investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | $ 1,554 | $ 2,035 |
Postemployment Benefits - Pos_9
Postemployment Benefits - Postretirement Benefit Plans - Expected Future Benefit Payments (Details) - Postretirement Benefits $ in Millions | Dec. 31, 2022 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 87 |
2024 | 82 |
2025 | 78 |
2026 | 74 |
2027 | 70 |
2028-2032 | $ 289 |
Postemployment Benefits - Po_10
Postemployment Benefits - Postretirement Benefit Plans - Benefit Balances in Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial gain/(loss) | $ (8) | $ 503 |
Prior service credit/(cost) | (5) | 9 |
Pension and postretirement benefit plans, accumulated other comprehensive income/(loss), before tax | (13) | 512 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial gain/(loss) | (424) | 28 |
Prior service credit/(cost) | (13) | (14) |
Pension and postretirement benefit plans, accumulated other comprehensive income/(loss), before tax | (437) | 14 |
Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial gain/(loss) | 416 | 475 |
Prior service credit/(cost) | 8 | 23 |
Pension and postretirement benefit plans, accumulated other comprehensive income/(loss), before tax | $ 424 | $ 498 |
Postemployment Benefits - Po_11
Postemployment Benefits - Postretirement Benefit Plans - Benefits Recognized Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net postemployment benefit gains/(losses), before tax | $ (512) | $ 306 | $ (26) |
Tax benefit/(expense) | 126 | (77) | 4 |
Net postemployment benefit gains/(losses), after tax | (386) | 229 | (22) |
Losses/(gains) on postemployment benefits before income taxes | (13) | (32) | (158) |
Tax (benefit)/expense | 5 | 6 | 40 |
Net postemployment benefit losses/(gains) reclassified to net income, after tax | (8) | (26) | (118) |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial gains/(losses) arising during the period, before tax | (468) | 39 | (55) |
Amortization of unrecognized losses/(gains) | 1 | 3 | 2 |
Amortization of prior service costs/(credits) | 1 | 0 | 0 |
Settlement and curtailment losses/(gains) | 15 | (11) | (24) |
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial gains/(losses) arising during the period, before tax | (44) | 267 | 29 |
Amortization of unrecognized losses/(gains) | (15) | (16) | (14) |
Amortization of prior service costs/(credits) | $ (15) | $ (8) | $ (122) |
Financial Instruments - Schedul
Financial Instruments - Schedule of Notional Values of Outstanding Derivatives (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 |
Commodity contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 1,166 | $ 592 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 3,139 | 3,359 |
Cross-currency contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 6,336 | $ 7,239 |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Derivative Fair Values (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 |
Total Fair Value | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | $ 342 | $ 329 |
Derivative liability, fair value, gross liability | 294 | 271 |
Total Fair Value | Foreign exchange contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 40 | 24 |
Derivative liability, fair value, gross liability | 10 | 19 |
Total Fair Value | Foreign exchange contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 33 | 15 |
Derivative liability, fair value, gross liability | 25 | 18 |
Total Fair Value | Cross-currency contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 236 | 247 |
Derivative liability, fair value, gross liability | 183 | 212 |
Total Fair Value | Commodity contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 33 | 43 |
Derivative liability, fair value, gross liability | 76 | 22 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 33 | 41 |
Derivative liability, fair value, gross liability | 61 | 17 |
Quoted Prices in Active Markets for Identical Assets (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 |
Quoted Prices in Active Markets for Identical Assets (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 |
Quoted Prices in Active Markets for Identical Assets (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 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commodity contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 33 | 41 |
Derivative liability, fair value, gross liability | 61 | 17 |
Significant Other Observable Inputs (Level 2) | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 309 | 288 |
Derivative liability, fair value, gross liability | 233 | 254 |
Significant Other Observable Inputs (Level 2) | Foreign exchange contracts | Other current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 70 | 31 |
Significant Other Observable Inputs (Level 2) | Foreign exchange contracts | Other non-current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 3 | 8 |
Significant Other Observable Inputs (Level 2) | Foreign exchange contracts | Other current liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | 33 | 33 |
Significant Other Observable Inputs (Level 2) | Foreign exchange contracts | Other non-current liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | 2 | 4 |
Significant Other Observable Inputs (Level 2) | Foreign exchange contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 40 | 24 |
Derivative liability, fair value, gross liability | 10 | 19 |
Significant Other Observable Inputs (Level 2) | Foreign exchange contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 33 | 15 |
Derivative liability, fair value, gross liability | 25 | 18 |
Significant Other Observable Inputs (Level 2) | Cross-currency contracts | Other current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 132 | 74 |
Significant Other Observable Inputs (Level 2) | Cross-currency contracts | Other non-current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 104 | 173 |
Significant Other Observable Inputs (Level 2) | Cross-currency contracts | Other current liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | 59 | 42 |
Significant Other Observable Inputs (Level 2) | Cross-currency contracts | Other non-current liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | 124 | 170 |
Significant Other Observable Inputs (Level 2) | Cross-currency contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 236 | 247 |
Derivative liability, fair value, gross liability | 183 | 212 |
Significant Other Observable Inputs (Level 2) | Commodity contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 0 | 2 |
Derivative liability, fair value, gross liability | $ 15 | $ 5 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) € in Millions, £ in Millions, $ in Millions, ¥ in Billions, $ in Billions | 12 Months Ended | ||||||
Dec. 31, 2022 USD ($) | Dec. 25, 2021 USD ($) | Dec. 26, 2020 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 JPY (¥) | |
Derivative [Line Items] | |||||||
Derivative, collateral, right to reclaim cash | $ 222 | $ 155 | |||||
Derivative, collateral, obligation to return cash | 222 | 155 | |||||
Margin deposit assets | $ (43) | ||||||
Collateral collected related to commodity derivative margin requirements, liability | 12 | ||||||
Cross-currency contracts | |||||||
Derivative [Line Items] | |||||||
Maximum length of time hedged in cash flow hedge | 6 years | ||||||
Foreign exchange contracts | |||||||
Derivative [Line Items] | |||||||
Maximum length of time hedged in cash flow hedge | 2 years | ||||||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 26 | ||||||
Designated as hedging instrument | Debt | Net Investment Hedging | |||||||
Derivative [Line Items] | |||||||
Non-derivative instruments, gain (loss) recognized in other comprehensive income (loss), net | (111) | $ (75) | $ 57 | ||||
Designated as hedging instrument | Debt | Euro Member Countries, Euro | Net Investment Hedging | |||||||
Derivative [Line Items] | |||||||
Derivative, amount of hedged item | € | € 650 | ||||||
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 | Euro Member Countries, Euro | Net Investment Hedging | |||||||
Derivative [Line Items] | |||||||
Derivative asset, notional amount | 2,100 | € 1,900 | |||||
Designated as hedging instrument | Cross-currency contracts | Canada, Dollars | Net Investment Hedging | |||||||
Derivative [Line Items] | |||||||
Derivative liability, notional amount | 1,000 | $ 1.4 | |||||
Designated as hedging instrument | Cross-currency contracts | Japan, Yen | Net Investment Hedging | |||||||
Derivative [Line Items] | |||||||
Derivative liability, notional amount | 67 | ¥ 9.6 | |||||
Designated as hedging instrument | Cross-currency contracts | China, Yuan Renminbi | Net Investment Hedging | |||||||
Derivative [Line Items] | |||||||
Derivative liability, notional amount | 68 | ¥ 0.5 | |||||
Not designated as hedging instrument | Foreign exchange contracts | Hemmer Acquisition | |||||||
Derivative [Line Items] | |||||||
Net gains/(losses) on derivatives, reclassified to net income | $ 38 |
Financial Instruments - Derivat
Financial Instruments - Derivative Impact on Statements of Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Derivative [Line Items] | |||
Other comprehensive income (loss), derivatives, gain (loss), before reclassification and tax | $ 284 | $ 67 | $ (108) |
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 | 1 | (1) | 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 | 46 | (11) | (2) |
Amounts excluded from the effectiveness assessment of cash flow hedges, before tax | (17) | 0 | (2) |
Cash Flow Hedging | SG&A | Foreign exchange contracts | |||
Derivative [Line Items] | |||
Gains/(losses) recognized in other comprehensive income (loss) on cash flow hedges, before tax | 1 | 1 | 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 | (132) | (119) | 221 |
Amounts excluded from the effectiveness assessment of cash flow hedges, before tax | 30 | 28 | 26 |
Cash Flow Hedging | Interest expense | Cross-currency contracts | |||
Derivative [Line Items] | |||
Gains/(losses) recognized in other comprehensive income (loss) on cash flow hedges, before tax | (28) | (22) | (11) |
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 | 17 | 1 | 1 |
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 | 324 | 144 | (370) |
Net Investment Hedging | Interest expense | Foreign exchange contracts | |||
Derivative [Line Items] | |||
Amounts excluded from the effectiveness assessment of net investment hedges, before tax | 0 | 2 | (2) |
Net Investment Hedging | Interest expense | Cross-currency contracts | |||
Derivative [Line Items] | |||
Amounts excluded from the effectiveness assessment of net investment hedges, before tax | $ 42 | $ 44 | $ 30 |
Financial Instruments - Deriv_2
Financial Instruments - Derivative Impact on Statements of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Total amounts presented in the consolidated statements of income in which the following effects were recorded | |||
Cost of products sold | $ 18,363 | $ 17,360 | $ 17,008 |
SG&A | 4,488 | 5,222 | 7,049 |
Interest expense | 921 | 2,047 | 1,394 |
Other expense/(income) | (253) | (295) | (296) |
Net sales | 26,485 | 26,042 | 26,185 |
Cost of products sold | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 77 | 109 | (50) |
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 77 | 109 | (50) |
SG&A | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 2 | (1) | |
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 2 | (1) | |
Interest expense | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 7 | 15 | 10 |
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 7 | 15 | 10 |
Other expense/(income) | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (86) | 154 | |
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (86) | 154 | |
Net sales | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (1) | ||
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (1) | ||
Not designated as hedging instrument | Cost of products sold | Foreign exchange contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Gains/(losses) related to 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 | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | |
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | |
Not designated as hedging instrument | Cost of products sold | Commodity contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 86 | 158 | (69) |
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 86 | 158 | (69) |
Not designated as hedging instrument | SG&A | Foreign exchange contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | |
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | |
Not designated as hedging instrument | SG&A | Cross-currency contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | |
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | |
Not designated as hedging instrument | SG&A | Commodity contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | |
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | |
Not designated as hedging instrument | Interest expense | Foreign exchange contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Gains/(losses) related to 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 | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | |
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | |
Not designated as hedging instrument | Interest expense | Commodity contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Gains/(losses) related to 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 | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (26) | (31) | (15) |
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (26) | (31) | (15) |
Not designated as hedging instrument | Other expense/(income) | Cross-currency contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 9 | |
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 9 | |
Not designated as hedging instrument | Other expense/(income) | Commodity contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Not designated as hedging instrument | Net sales | Foreign exchange contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | ||
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | ||
Not designated as hedging instrument | Net sales | Cross-currency contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | ||
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | ||
Not designated as hedging instrument | Net sales | Commodity contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | ||
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | ||
Cash Flow Hedging | Designated as hedging instrument | Cost of products sold | Foreign exchange contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (2) | (46) | 19 |
Net gains/(losses) on derivatives, excluded component, reclassified to net income | (7) | (3) | |
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (2) | (46) | 19 |
Cash Flow Hedging | Designated as hedging instrument | Cost of products sold | Interest rate contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Gains/(losses) related to 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 | |||
Gains/(losses) related to 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 | 0 |
Gains/(losses) related to 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 | SG&A | Foreign exchange contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 2 | (1) | |
Net gains/(losses) on derivatives, excluded component, reclassified to net income | 0 | 0 | |
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 2 | (1) | |
Cash Flow Hedging | Designated as hedging instrument | SG&A | Interest rate contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | |
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | |
Cash Flow Hedging | Designated as hedging instrument | SG&A | Cross-currency contracts | |||
Gains/(losses) related to 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 | |
Gains/(losses) related to 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 | |||
Gains/(losses) related to 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 | |
Gains/(losses) related to 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 | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (1) | 0 | (2) |
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (1) | 0 | (2) |
Cash Flow Hedging | Designated as hedging instrument | Interest expense | Cross-currency contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (28) | (23) | (11) |
Net gains/(losses) on derivatives, excluded component, reclassified to net income | 0 | 0 | 0 |
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (28) | (23) | (11) |
Cash Flow Hedging | Designated as hedging instrument | Other expense/(income) | Foreign exchange contracts | |||
Gains/(losses) related to 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 | |
Gains/(losses) related to 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) | Interest rate contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 |
Gains/(losses) related to 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 | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (54) | (91) | 143 |
Net gains/(losses) on derivatives, excluded component, reclassified to net income | 30 | 27 | 26 |
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (54) | (91) | 143 |
Cash Flow Hedging | Designated as hedging instrument | Net sales | Foreign exchange contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (1) | ||
Net gains/(losses) on derivatives, excluded component, reclassified to net income | 0 | ||
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | (1) | ||
Cash Flow Hedging | Designated as hedging instrument | Net sales | Interest rate contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | ||
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | ||
Cash Flow Hedging | Designated as hedging instrument | Net sales | Cross-currency contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | ||
Net gains/(losses) on derivatives, excluded component, reclassified to net income | 0 | ||
Gains/(losses) related to derivatives not designated as hedging instruments: | |||
Net gains/(losses) on derivatives, reclassified to net income | 0 | ||
Net Investment Hedging | Designated as hedging instrument | Cost of products sold | Foreign exchange contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, excluded component, reclassified to net income | 0 | 0 | 0 |
Net Investment Hedging | Designated as hedging instrument | Cost of products sold | Cross-currency contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, excluded component, reclassified to net income | 0 | 0 | 0 |
Net Investment Hedging | Designated as hedging instrument | SG&A | Foreign exchange contracts | |||
Gains/(losses) related to 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 | SG&A | Cross-currency contracts | |||
Gains/(losses) related to 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 | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, excluded component, reclassified to net income | (1) | 2 | (2) |
Net Investment Hedging | Designated as hedging instrument | Interest expense | Cross-currency contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, excluded component, reclassified to net income | 37 | 36 | 25 |
Net Investment Hedging | Designated as hedging instrument | Other expense/(income) | Foreign exchange contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, excluded component, reclassified to net income | 0 | 0 | 0 |
Net Investment Hedging | Designated as hedging instrument | Other expense/(income) | Cross-currency contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, excluded component, reclassified to net income | $ 0 | 0 | $ 0 |
Net Investment Hedging | Designated as hedging instrument | Net sales | Foreign exchange contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, excluded component, reclassified to net income | 0 | ||
Net Investment Hedging | Designated as hedging instrument | Net sales | Cross-currency contracts | |||
Gains/(losses) related to derivatives designated as hedging instruments: | |||
Net gains/(losses) on derivatives, excluded component, reclassified to net income | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income/(Losses) - Components Of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 49,298 | ||
Total other comprehensive income/(loss) | (986) | $ 143 | $ (81) |
Ending balance | 48,678 | 49,298 | |
Foreign currency translation adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (2,285) | (2,218) | (2,230) |
Other comprehensive income/(loss) before reclassifications | (907) | (242) | 324 |
Total other comprehensive income/(loss) | (560) | (67) | 12 |
Ending balance | (2,845) | (2,285) | (2,218) |
Net investment hedge adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive income/(loss) before reclassifications | 343 | 169 | (321) |
Amounts excluded from effectiveness assessment | 32 | 35 | 26 |
Reclassifications from AOCI | (28) | (29) | (17) |
Net cash flow hedge adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 97 | 93 | 41 |
Other comprehensive income/(loss) before reclassifications | (72) | (91) | 144 |
Amounts excluded from effectiveness assessment | 14 | 27 | 24 |
Reclassifications from AOCI | 26 | 68 | (116) |
Total other comprehensive income/(loss) | (32) | 4 | 52 |
Ending balance | 65 | 97 | 93 |
Accumulated defined benefit plans adjustment, net gain (loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive income/(loss) before reclassifications | (386) | 232 | (27) |
Net postemployment benefit plans adjustment, reclassified to net income/(loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 364 | 158 | 303 |
Reclassifications from AOCI | (8) | (26) | (118) |
Total other comprehensive income/(loss) | (394) | 206 | (145) |
Ending balance | (30) | 364 | 158 |
AOCI Attributable to Parent | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1,824) | (1,967) | (1,886) |
Ending balance | $ (2,810) | $ (1,824) | $ (1,967) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income/(Losses) - 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. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Foreign currency translation adjustments | |||
OCI Before Reclassifications | |||
Before Tax Amount | $ (907) | $ (242) | $ 324 |
Tax | 0 | 0 | 0 |
Net of Tax Amount | (907) | (242) | 324 |
Net investment hedge adjustments | |||
OCI Before Reclassifications | |||
Before Tax Amount | 452 | 220 | (426) |
Tax | (109) | (51) | 105 |
Net of Tax Amount | 343 | 169 | (321) |
Amounts Excluded from Effectiveness Assessment | |||
Before Tax Amount | 42 | 46 | 28 |
Tax | (10) | (11) | (2) |
Net of Tax Amount | 32 | 35 | 26 |
Reclassifications | |||
Before Tax Amount | (36) | (38) | (23) |
Tax | 8 | 9 | 6 |
Net of Tax Amount | (28) | (29) | (17) |
Net cash flow hedge adjustments | |||
OCI Before Reclassifications | |||
Before Tax Amount | (112) | (152) | 209 |
Tax | 40 | 61 | (65) |
Net of Tax Amount | (72) | (91) | 144 |
Amounts Excluded from Effectiveness Assessment | |||
Before Tax Amount | 13 | 28 | 24 |
Tax | 1 | (1) | 0 |
Net of Tax Amount | 14 | 27 | 24 |
Reclassifications | |||
Before Tax Amount | 60 | 138 | (175) |
Tax | (34) | (70) | 59 |
Net of Tax Amount | 26 | 68 | (116) |
Accumulated defined benefit plans adjustment, net gain (loss) | |||
OCI Before Reclassifications | |||
Before Tax Amount | (512) | 308 | (30) |
Tax | 126 | (76) | 3 |
Net of Tax Amount | (386) | 232 | (27) |
Net postemployment benefit plans adjustment, reclassified to net income/(loss) | |||
Reclassifications | |||
Before Tax Amount | (13) | (32) | (158) |
Tax | 5 | 6 | 40 |
Net of Tax Amount | $ (8) | $ (26) | $ (118) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income/(Losses) - Amounts Reclassified from Accumulated Other Comprehensive Income/(Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||
Other expense/(income) | $ (253) | $ (295) | $ (296) |
Interest expense | 921 | 2,047 | 1,394 |
Net sales | 26,485 | 26,042 | 26,185 |
Cost of products sold | 18,363 | 17,360 | 17,008 |
Selling, general and administrative expenses | 4,488 | 5,222 | 7,049 |
Income/(loss) before income taxes | (2,966) | (1,708) | (1,030) |
Provision for/(benefit from) income taxes | 598 | 684 | 669 |
Net income/(loss) | (2,368) | (1,024) | (361) |
Reclassification out of AOCI | Net investment hedge adjustments | Foreign exchange contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||
Interest expense | 1 | (2) | 2 |
Reclassification out of AOCI | Net investment hedge adjustments | Cross-currency contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||
Interest expense | (37) | (36) | (25) |
Reclassification out of AOCI | Net cash flow hedge adjustments | Foreign exchange contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||
Other expense/(income) | 0 | 0 | 0 |
Net sales | 0 | 1 | 0 |
Cost of products sold | 9 | 49 | (19) |
Selling, general and administrative expenses | (2) | 1 | 0 |
Reclassification out of AOCI | Net cash flow hedge adjustments | Cross-currency contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||
Other expense/(income) | 24 | 64 | (169) |
Interest expense | 28 | 22 | 11 |
Reclassification out of AOCI | Net cash flow hedge adjustments | Interest rate contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||
Interest expense | 1 | 1 | 2 |
Reclassification out of AOCI | Hedge adjustments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||
Income/(loss) before income taxes | 24 | 100 | (198) |
Provision for/(benefit from) income taxes | (26) | (61) | 65 |
Net income/(loss) | (2) | 39 | (133) |
Reclassification out of AOCI | Net postemployment benefit plans adjustment, reclassified to net income/(loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||
Income/(loss) before income taxes | (13) | (32) | (158) |
Provision for/(benefit from) income taxes | 5 | 6 | 40 |
Net income/(loss) | (8) | (26) | (118) |
Reclassification out of AOCI | Accumulated defined benefit plans adjustment, net gain (loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||
Other expense/(income) | (14) | (13) | (12) |
Reclassification out of AOCI | Accumulated defined benefit plans adjustment, net prior service | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||
Other expense/(income) | (14) | (8) | (122) |
Reclassification out of AOCI | Settlement and curtailment losses/(gains) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | |||
Other expense/(income) | $ 15 | $ (11) | $ (24) |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 |
Transfers and Servicing [Abstract] | ||
Other liabilities, structured payables, current | $ 87 | $ 215 |
Cash proceeds received for assets derecognized, amount | $ 197 |
Commitments and Contingencies A
Commitments and Contingencies Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Securities Class Action Lawsuit | ||
Loss Contingencies [Line Items] | ||
Payments for Legal Settlements | $ 210 | |
SEC Investigation | Settled Litigation | ||
Loss Contingencies [Line Items] | ||
Payments for Legal Settlements | $ 62 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Take-or-Pay Purchase Obligations (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Schedule of Future Purchase Obligations | |
2023 | $ 487 |
2024 | 504 |
2025 | 262 |
2026 | 227 |
2027 | 70 |
Thereafter | 261 |
Total | $ 1,811 |
Debt - Borrowing Arragements In
Debt - Borrowing Arragements Information (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 27, 2020 | Dec. 31, 2022 | Dec. 25, 2021 | Jul. 08, 2022 | |
Line of Credit Facility [Line Items] | ||||
Minimum shareholder's equity required to maintain excluding accumulated other comprehensive income/(losses) | $ 35,000,000,000 | |||
Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 4,000,000,000 | |||
Maximum amount of credit facility outstanding during the period | $ 4,000,000,000 | $ 0 | $ 0 | |
Amount of credit facility still outstanding at period end | $ 0 | $ 0 | ||
Line of credit facility, revolving credit facility, sub-limit for borrowings in alternative currencies | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 1,000,000,000 | |||
Swingline Sub-Facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 400,000,000 | |||
Line of credit facility, revolving credit facility, letter of credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 300,000,000 | |||
Revolving commitments and/or term loans | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 |
Debt Instrument [Line Items] | ||
Finance lease obligations | $ 119 | $ 128 |
Total long-term debt | 20,064 | 21,801 |
Current portion of long-term debt | 831 | 740 |
Long-term debt | 19,233 | 21,061 |
Other U.S. dollar notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | $ 16,554 | 18,049 |
Other U.S. dollar notes | Minimum | ||
Debt Instrument [Line Items] | ||
Long-term debt, interest rate | 3% | |
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 | $ 2,723 | 2,877 |
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% | |
Pound Sterling Senior Notes Due 2030 | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | $ 155 | 172 |
Long-term debt, interest rate | 6.25% | |
Other British pound sterling notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | $ 482 | 533 |
Long-term debt, interest rate | 4.125% | |
Other long-term debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | $ 31 | $ 42 |
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 | 16.80% |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Aug. 27, 2022 | Jun. 25, 2022 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 1,465 | $ 6,202 | $ 4,697 | ||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, outstanding aggregate principal amount | 19,784 | 21,471 | |||
Senior Notes | 2022 Repurchases, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Early repayment of senior debt | 755 | ||||
Senior Notes | 2022 Debt Repayment, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 702 | ||||
Senior Notes Due July 2028 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, interest rate | 6.375% | ||||
Long-term debt, outstanding aggregate principal amount | $ 204 | 218 | |||
Senior Notes Due July 2028 | Senior Notes | 2022 Repurchases, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Early repayment of senior debt | 14 | ||||
Senior Notes Due July 2028 | Senior Notes | 2022 Debt Repayment, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 0 | ||||
Senior Notes Due January 2029 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, interest rate | 4.625% | ||||
Long-term debt, outstanding aggregate principal amount | $ 359 | 369 | |||
Senior Notes Due January 2029 | Senior Notes | 2022 Repurchases, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Early repayment of senior debt | 10 | ||||
Senior Notes Due January 2029 | Senior Notes | 2022 Debt Repayment, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 0 | ||||
Senior Notes Due July 2035 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, interest rate | 5% | ||||
Long-term debt, outstanding aggregate principal amount | $ 619 | 686 | |||
Senior Notes Due July 2035 | Senior Notes | 2022 Repurchases, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Early repayment of senior debt | 67 | ||||
Senior Notes Due July 2035 | Senior Notes | 2022 Debt Repayment, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 0 | ||||
Senior Notes Due January 2039 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, interest rate | 6.875% | ||||
Long-term debt, outstanding aggregate principal amount | $ 773 | 811 | |||
Senior Notes Due January 2039 | Senior Notes | 2022 Repurchases, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Early repayment of senior debt | 38 | ||||
Senior Notes Due January 2039 | Senior Notes | 2022 Debt Repayment, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 0 | ||||
Senior Notes Due August 2039 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, interest rate | 7.125% | ||||
Long-term debt, outstanding aggregate principal amount | $ 787 | 859 | |||
Senior Notes Due August 2039 | Senior Notes | 2022 Repurchases, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Early repayment of senior debt | 72 | ||||
Senior Notes Due August 2039 | Senior Notes | 2022 Debt Repayment, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 0 | ||||
Senior Notes Due October 2039 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, interest rate | 4.625% | ||||
Long-term debt, outstanding aggregate principal amount | $ 383 | 398 | |||
Senior Notes Due October 2039 | Senior Notes | 2022 Repurchases, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Early repayment of senior debt | 15 | ||||
Senior Notes Due October 2039 | Senior Notes | 2022 Debt Repayment, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 0 | ||||
Senior Notes Due February 2040 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, interest rate | 6.50% | ||||
Long-term debt, outstanding aggregate principal amount | $ 573 | 706 | |||
Senior Notes Due February 2040 | Senior Notes | 2022 Repurchases, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Early repayment of senior debt | 133 | ||||
Senior Notes Due February 2040 | Senior Notes | 2022 Debt Repayment, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 0 | ||||
Senior Notes Due June 2042 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, interest rate | 5% | ||||
Long-term debt, outstanding aggregate principal amount | $ 1,423 | 1,532 | |||
Senior Notes Due June 2042 | Senior Notes | 2022 Repurchases, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Early repayment of senior debt | 109 | ||||
Senior Notes Due June 2042 | Senior Notes | 2022 Debt Repayment, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 0 | ||||
Senior Notes Due July 2045 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, interest rate | 5.20% | ||||
Long-term debt, outstanding aggregate principal amount | $ 1,614 | 1,811 | |||
Senior Notes Due July 2045 | Senior Notes | 2022 Repurchases, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Early repayment of senior debt | 197 | ||||
Senior Notes Due July 2045 | Senior Notes | 2022 Debt Repayment, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 0 | ||||
Senior Notes Due October 2049 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, interest rate | 4.875% | ||||
Long-term debt, outstanding aggregate principal amount | $ 1,450 | 1,500 | |||
Senior Notes Due October 2049 | Senior Notes | 2022 Repurchases, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Early repayment of senior debt | 50 | ||||
Senior Notes Due October 2049 | Senior Notes | 2022 Debt Repayment, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 0 | ||||
Senior Notes Due June 2050 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, interest rate | 5.50% | ||||
Long-term debt, outstanding aggregate principal amount | $ 750 | 800 | |||
Senior Notes Due June 2050 | Senior Notes | 2022 Repurchases, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Early repayment of senior debt | 50 | ||||
Senior Notes Due June 2050 | Senior Notes | 2022 Debt Repayment, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 0 | ||||
Senior Notes Due March 2022 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, interest rate | 2.85% | ||||
Long-term debt, outstanding aggregate principal amount | $ 0 | 6 | |||
Senior Notes Due March 2022 | Senior Notes | 2022 Repurchases, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Early repayment of senior debt | 0 | ||||
Senior Notes Due March 2022 | Senior Notes | 2022 Debt Repayment, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 6 | ||||
Senior Notes Due June 2022 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, interest rate | 3.50% | ||||
Long-term debt, outstanding aggregate principal amount | $ 0 | 381 | |||
Repayments of long-term debt | $ 381 | ||||
Senior Notes Due June 2022 | Senior Notes | 2022 Repurchases, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Early repayment of senior debt | 0 | ||||
Senior Notes Due June 2022 | Senior Notes | 2022 Debt Repayment, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | 381 | ||||
Senior notes due in August 2022 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, outstanding aggregate principal amount | 0 | 315 | |||
Repayments of long-term debt | $ 315 | ||||
Senior notes due in August 2022 | Senior Notes | 2022 Repurchases, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Early repayment of senior debt | 0 | ||||
Senior notes due in August 2022 | Senior Notes | 2022 Debt Repayment, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | 315 | ||||
Other long-term debt | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, outstanding aggregate principal amount | 10,849 | $ 11,079 | |||
Other long-term debt | Senior Notes | 2022 Repurchases, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Early repayment of senior debt | 0 | ||||
Other long-term debt | Senior Notes | 2022 Debt Repayment, Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 0 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-term Debt (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 806 |
2024 | 593 |
2025 | 3 |
2026 | 1,879 |
2027 | 1,837 |
Thereafter | $ 14,666 |
Debt - Repurchases Information
Debt - Repurchases Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2022 | Sep. 24, 2022 | Jun. 25, 2022 | Dec. 25, 2021 | Sep. 25, 2021 | Jun. 26, 2021 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Debt Instrument [Line Items] | |||||||||
Loss on extinguishment of debt | $ 38 | $ (917) | $ (124) | ||||||
2022 Repurchases, Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Loss on extinguishment of debt | 38 | ||||||||
Debt prepayment and extinguishment costs | 10 | ||||||||
Write off of unamortized debt premium | 33 | ||||||||
Write off of deferred debt issuance cost | 3 | ||||||||
Write off of unamortized debt discounts | 2 | ||||||||
2022 Repurchases, Senior Notes | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior debt | 755 | ||||||||
2022 Repurchases, Senior Notes | Senior Notes | Senior Notes Due February 2040 | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior debt | 133 | ||||||||
2022 Repurchases, Senior Notes | Senior Notes | Senior Notes Due July 2045 | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior debt | 197 | ||||||||
2022 Repurchases, Senior Notes | Senior Notes | Senior Notes Due August 2039 | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior debt | 72 | ||||||||
2022 Repurchases, Senior Notes | Senior Notes | Senior Notes Due June 2042 | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior debt | 109 | ||||||||
2022 Repurchases, Senior Notes | Senior Notes | Senior Notes Due October 2049 | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior debt | 50 | ||||||||
2022 Repurchases, Senior Notes | Senior Notes | Senior Notes Due July 2035 | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior debt | 67 | ||||||||
2022 Repurchases, Senior Notes | Senior Notes | Senior Notes Due January 2039 | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior debt | 38 | ||||||||
2022 Repurchases, Senior Notes | Senior Notes | Senior Notes Due July 2028 | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior debt | 14 | ||||||||
2022 Repurchases, Senior Notes | Senior Notes | Senior Notes Due June 2050 | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior debt | 50 | ||||||||
2022 Repurchases, Senior Notes | Senior Notes | Senior Notes Due October 2039 | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior debt | 15 | ||||||||
2022 Repurchases, Senior Notes | Senior Notes | Senior Notes Due January 2029 | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior debt | $ 10 | ||||||||
Q2 2022 Repurchases, Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Loss on extinguishment of debt | $ 9 | ||||||||
Q2 2022 Repurchases, Senior Notes | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior debt | $ 268 | ||||||||
Q3 2022 Repurchases, Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Loss on extinguishment of debt | $ 3 | ||||||||
Q3 2022 Repurchases, Senior Notes | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior debt | $ 180 | ||||||||
Q4 2022 Repurchases, Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Loss on extinguishment of debt | $ 26 | ||||||||
Q4 2022 Repurchases, Senior Notes | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior debt | $ 307 | ||||||||
2021 Repurchases, Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Loss on extinguishment of debt | 152 | ||||||||
Debt prepayment and extinguishment costs | 162 | ||||||||
Write off of unamortized debt premium | 15 | ||||||||
Write off of deferred debt issuance cost | 3 | ||||||||
Write off of unamortized debt discounts | 2 | ||||||||
2021 Repurchases, Senior Notes | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior debt | $ 738 | ||||||||
Q2 2021 Repurchases, Senior Notes | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior debt | $ 207 | ||||||||
Q3 2021 Repurchases, Senior Notes | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior debt | $ 221 | ||||||||
Q4 2021 Repurchases, Senior Notes | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior debt | $ 310 |
Debt - Tender Offers Informatio
Debt - Tender Offers Information (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Dec. 06, 2021 | Mar. 09, 2021 | Jun. 26, 2021 | May 31, 2020 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | May 19, 2020 | |
Debt Instrument [Line Items] | ||||||||
Loss on extinguishment of debt | $ 38 | $ (917) | $ (124) | |||||
Senior Notes | Senior Notes Due July 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 3.95% | |||||||
Senior Notes | Senior Notes Due June 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 3% | |||||||
Senior Notes | Senior Notes Due June 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 4% | |||||||
Senior Notes | Senior Notes Due June 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 3.50% | |||||||
Senior Notes | Senior Notes Due June 2042 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 5% | |||||||
Senior Notes | Senior Notes Due July 2035 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 5% | |||||||
Senior Notes | Senior Notes Due January 2029 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 4.625% | |||||||
Senior Notes | Senior Notes Due October 2039 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 4.625% | |||||||
Senior Notes | Senior Notes Due April 2030 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 3.75% | |||||||
Senior Notes | Senior Notes Due February 2040 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 6.50% | |||||||
Senior Notes | Senior Notes Due July 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 6.375% | |||||||
Senior Notes | Senior Notes Due March 2032 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 6.75% | |||||||
Senior Notes | Senior Notes Due January 2039 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 6.875% | |||||||
Senior Notes | Senior Notes Due August 2039 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 7.125% | |||||||
Senior Notes | Senior Notes Due March 2031 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 4.25% | |||||||
Senior Notes | Senior Notes Due July 2045 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 5.20% | |||||||
Senior Notes | Senior Notes Due June 2050 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 5.50% | |||||||
Senior Notes | Senior Notes Due October 2049 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 4.875% | |||||||
Q1 2021 Tender Offer, Senior Notes | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Early repayment of senior debt | $ 900 | |||||||
Q2 2021 Tender Offer, Senior Notes | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Early repayment of senior debt | $ 1,400 | |||||||
Q4 2021 Tender Offer, Senior Notes | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Early repayment of senior debt | $ 1,700 | |||||||
2021 Tender Offers, Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Loss on extinguishment of debt | 636 | |||||||
Debt prepayment and extinguishment costs | 636 | |||||||
Write off of unamortized debt premium | 24 | |||||||
Write off of deferred debt issuance cost | 17 | |||||||
Write off of unamortized debt discounts | $ 7 | |||||||
2020 Tender Offer, Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Loss on extinguishment of debt | (71) | |||||||
Debt prepayment and extinguishment costs | 68 | |||||||
Write off of unamortized debt premium | 1 | |||||||
Write off of deferred debt issuance cost | 3 | |||||||
Write off of unamortized debt discounts | $ 1 | |||||||
2020 Tender Offer, Senior Notes | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Early repayment of senior debt | $ 2,100 | |||||||
2020 Tender Offer, Senior Notes | Senior Notes | Senior Notes Due July 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 3.95% | |||||||
2020 Tender Offer, Senior Notes | Senior Notes | Senior Notes Due June 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 3% | |||||||
2020 Tender Offer, Senior Notes | Senior Notes | Senior Notes Due June 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 4% | |||||||
2020 Tender Offer, Senior Notes | Senior Notes | Senior Notes Due June 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 3.50% | |||||||
2020 Tender Offer, Senior Notes | Senior Notes | Senior Notes Due July 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 3.50% | |||||||
Maximum | Q1 2021 Tender Offer, Senior Notes | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Early repayment of senior debt | $ 1,000 | |||||||
Maximum | Q2 2021 Tender Offer, Senior Notes | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Early repayment of senior debt | $ 2,800 | |||||||
Maximum | Q4 2021 Tender Offer, Senior Notes | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Early repayment of senior debt | $ 2,000 | |||||||
Maximum | 2020 Tender Offer, Senior Notes | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Early repayment of senior debt | $ 2,200 |
Debt - Redemptions Information
Debt - Redemptions Information (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Jun. 26, 2021 | Apr. 01, 2021 | Oct. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | Oct. 24, 2020 | Jun. 03, 2020 | |
Debt Instrument [Line Items] | |||||||||
Repayments of long-term debt | $ 1,465 | $ 6,202 | $ 4,697 | ||||||
Loss on extinguishment of debt | $ 38 | (917) | (124) | ||||||
2021 Debt Redemption, Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Loss on extinguishment of debt | 129 | ||||||||
Debt prepayment and extinguishment costs | 126 | ||||||||
Write off of deferred debt issuance cost | $ 3 | ||||||||
2020 Debt Redemption, Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Loss on extinguishment of debt | (53) | ||||||||
Debt prepayment and extinguishment costs | 48 | ||||||||
Write off of deferred debt issuance cost | $ 5 | ||||||||
Senior Notes Due June 2023 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, interest rate | 4% | ||||||||
Senior Notes Due June 2023 | Senior Notes | 2021 Debt Redemption, Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of long-term debt | $ 447 | ||||||||
Senior Notes Due July 2025 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, interest rate | 3.95% | ||||||||
Repayments of long-term debt | $ 797 | ||||||||
Senior Notes Due June 2021 | Senior Notes | First 2020 Debt Redemption, Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, interest rate | 3.375% | ||||||||
Repayments of long-term debt | $ 300 | ||||||||
Senior Secured Notes due February 2025 | Senior Notes | First 2020 Debt Redemption, Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, interest rate | 4.875% | ||||||||
Repayments of long-term debt | $ 976 | ||||||||
Senior Notes Due July 2022 | Senior Notes | Second 2020 Debt Redemption, Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, interest rate | 3.50% | ||||||||
Repayments of long-term debt | $ 302 |
Debt - Long-term Debt Issuances
Debt - Long-term Debt Issuances Additional Information (Details) - 2020 Senior Notes $ in Millions | May 18, 2020 USD ($) |
Senior Notes Due May 2027 | |
Debt Instrument [Line Items] | |
Long-term debt, outstanding aggregate principal amount | $ 1,350 |
Long-term debt, interest rate | 3.875% |
Senior Notes Due March 2031 | |
Debt Instrument [Line Items] | |
Long-term debt, outstanding aggregate principal amount | $ 1,350 |
Long-term debt, interest rate | 4.25% |
Senior Notes Due June 2050 | |
Debt Instrument [Line Items] | |
Long-term debt, outstanding aggregate principal amount | $ 800 |
Long-term debt, interest rate | 5.50% |
Debt - Long-term Debt Informati
Debt - Long-term Debt Information (Details) $ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||
Aug. 27, 2022 USD ($) | Jun. 25, 2022 USD ($) | Mar. 26, 2022 USD ($) | Sep. 25, 2021 USD ($) | Feb. 28, 2021 USD ($) | Jul. 31, 2020 USD ($) | Jul. 31, 2020 CAD ($) | Feb. 29, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 25, 2021 USD ($) | Dec. 26, 2020 USD ($) | |
Debt Instrument [Line Items] | |||||||||||
Debt issuance costs | $ 31 | ||||||||||
Unamortized debt issuance costs | $ 88 | $ 97 | |||||||||
Amortization of debt issuance costs | 11 | 12 | 11 | ||||||||
Unamortized debt premium, net | 250 | 298 | |||||||||
Amortization of debt premium, net | 17 | 16 | 14 | ||||||||
Repayments of long-term debt | 1,465 | 6,202 | $ 4,697 | ||||||||
Fair value of total debt | 18,700 | 25,700 | |||||||||
Carrying value of total debt | $ 20,100 | $ 21,800 | |||||||||
Senior Notes | Senior notes due in March 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of long-term debt | $ 6 | ||||||||||
Senior Notes | Senior Notes Due June 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of long-term debt | $ 381 | ||||||||||
Senior Notes | Senior notes due in August 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of long-term debt | $ 315 | ||||||||||
Senior Notes | Senior notes due in February 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of long-term debt | $ 111 | ||||||||||
Senior Notes | Senior notes due in September 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of long-term debt | $ 34 | ||||||||||
Senior Notes | Senior Notes Due February 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of long-term debt | $ 405 | ||||||||||
Senior Notes | Senior Notes Due July 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of long-term debt | $ 200 | ||||||||||
Senior Notes | Canadian Dollar Senior Notes Due July 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of long-term debt | $ 500 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 31, 2022 | Dec. 25, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Sale and leaseback transaction, gain (loss), net | $ 0 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other non-current assets | Other non-current assets | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current portion of long-term debt | Current portion of long-term debt | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | Other non-current liabilities | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt | |
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining contractual lease term | 19 years | ||
Option to extend term | 10 years |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Leases [Abstract] | |||
Operating lease costs | $ 173 | $ 176 | $ 173 |
Amortization of right-of-use assets | 34 | 34 | 31 |
Interest on lease liabilities | 5 | 6 | 7 |
Short-term lease costs | 8 | 17 | 20 |
Variable lease costs | 1,232 | 1,192 | 1,313 |
Sublease income | (10) | (9) | (11) |
Total lease costs | $ 1,442 | $ 1,416 | $ 1,533 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 |
Operating Leases | ||
Right-of-use assets | $ 668 | $ 569 |
Lease liabilities (current) | 125 | 133 |
Lease liabilities (non-current) | $ 585 | $ 484 |
Weighted average remaining lease term | 8 years | 7 years |
Weighted average discount rate | 3.60% | 3.50% |
Finance Leases | ||
Right-of-use assets | $ 121 | $ 126 |
Lease liabilities (current) | 26 | 30 |
Lease liabilities (non-current) | $ 93 | $ 98 |
Weighted average remaining lease term | 12 years | 12 years |
Weighted average discount rate | 4.10% | 4.10% |
Leases - Cash Flows Arising fro
Leases - Cash Flows Arising from Lease Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash inflows/(outflows) from operating leases | $ (176) | $ (179) | $ (191) |
Operating cash inflows/(outflows) from finance leases | (5) | (6) | (7) |
Financing cash inflows/(outflows) from finance leases | (38) | (33) | (35) |
Right-of-use assets obtained in exchange for lease liabilities: | |||
Operating leases | 197 | 41 | 147 |
Finance leases | $ 34 | $ 14 | $ 39 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments for Leases in Effect (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 |
Operating Leases | ||
2023 | $ 149 | |
2024 | 125 | |
2025 | 105 | |
2026 | 90 | |
2027 | 71 | |
Thereafter | 290 | |
Total future undiscounted lease payments | 830 | |
Less imputed interest | (120) | |
Total lease liability | 710 | |
Finance Leases | ||
2023 | 30 | |
2024 | 20 | |
2025 | 14 | |
2026 | 11 | |
2027 | 8 | |
Thereafter | 68 | |
Total future undiscounted lease payments | 151 | |
Less imputed interest | (32) | |
Total lease liability | $ 119 | $ 128 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Details) - shares | Dec. 31, 2022 | Dec. 25, 2021 |
Equity [Abstract] | ||
Common stock, shares authorized (in shares) | 5,000,000,000 | 5,000,000,000 |
Capital Stock - Common Stock Is
Capital Stock - Common Stock Issued, in Treasury, and Outstanding (Details) - shares shares in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | Dec. 28, 2019 | |
Equity [Abstract] | ||||
Common stock, issued (in shares) | 1,243 | 1,235 | 1,228 | 1,224 |
Treasury stock (in shares) | (18) | (11) | (5) | (3) |
Common stock, outstanding (in shares) | 1,225 | 1,224 | 1,223 | 1,221 |
Exercise of stock options, issuance of other stock awards, and other - shares issued (in shares) | 8 | 7 | 4 | |
Exercise of stock options, issuance of other stock awards, and other - treasury shares (in shares) | (7) | (6) | (2) | |
Exercise of stock options, issuance of other stock awards, and other - shares outstanding (in shares) | 1 | 1 | 2 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Common Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Basic Earnings Per Common Share: | |||
Net income/(loss) attributable to common shareholders | $ 2,363 | $ 1,012 | $ 356 |
Weighted average shares of common stock outstanding (in shares) | 1,226 | 1,224 | 1,223 |
Basic earnings/(loss) per share (in dollars per share) | $ 1.93 | $ 0.83 | $ 0.29 |
Diluted Earnings Per Common Share: | |||
Net income/(loss) attributable to common shareholders | $ 2,363 | $ 1,012 | $ 356 |
Weighted average shares of common stock outstanding (in shares) | 1,226 | 1,224 | 1,223 |
Effect of dilutive equity awards (in shares) | 9 | 12 | 5 |
Weighted average shares of common stock outstanding, including dilutive effect (in shares) | 1,235 | 1,236 | 1,228 |
Diluted earnings/(loss) per share (in dollars per share) | $ 1.91 | $ 0.82 | $ 0.29 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive shares | 6 | 7 | 9 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) - segment | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Segment Reporting [Abstract] | |||
Number of reportable segments | 2 | ||
Walmart Inc. | Customer Concentration Risk | Revenue Benchmark | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 21% | 22% | 22% |
Segment Reporting - Net Sales b
Segment Reporting - Net Sales by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 26,485 | $ 26,042 | $ 26,185 |
North America | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 20,340 | 20,351 | 20,844 |
International | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 6,145 | $ 5,691 | $ 5,341 |
Segment Reporting - Segment Adj
Segment Reporting - Segment Adjusted EBITDA (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization (excluding restructuring activities) | $ (922) | $ (910) | $ (955) |
Divestiture-related license income | 56 | 4 | 0 |
Restructuring activities | (74) | (84) | (15) |
Deal costs | (9) | (11) | (8) |
Unrealized gains/(losses) on commodity hedges | (63) | (17) | 6 |
Impairment losses | (999) | (1,634) | (3,413) |
Certain non-ordinary course legal and regulatory matters | (210) | (62) | 0 |
Equity award compensation expense | (148) | (197) | (156) |
Operating income/(loss) | 3,634 | 3,460 | 2,128 |
Interest expense | 921 | 2,047 | 1,394 |
Other expense/(income) | (253) | (295) | (296) |
Income/(loss) before income taxes | 2,966 | 1,708 | 1,030 |
General corporate expenses | |||
Segment Reporting Information [Line Items] | |||
Segment Adjusted EBITDA | (298) | (271) | (335) |
North America | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Segment Adjusted EBITDA | 5,284 | 5,576 | 5,946 |
International | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Segment Adjusted EBITDA | $ 1,017 | $ 1,066 | $ 1,058 |
Segment Reporting - Depreciatio
Segment Reporting - Depreciation and Amortization Expense by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 933 | $ 910 | $ 969 |
General corporate expenses | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 95 | 96 | 104 |
North America | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 579 | 580 | 644 |
International | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 259 | $ 234 | $ 221 |
Segment Reporting - Capital Exp
Segment Reporting - Capital Expenditures by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Segment Reporting Information [Line Items] | |||
Total capital expenditures | $ 916 | $ 905 | $ 596 |
General corporate expenses | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures | 72 | 80 | 37 |
North America | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures | 513 | 477 | 347 |
International | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures | $ 331 | $ 348 | $ 212 |
Segment Reporting - Net Sales_2
Segment Reporting - Net Sales by Platform (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Revenue from External Customer [Line Items] | |||
Net sales | $ 26,485 | $ 26,042 | $ 26,185 |
Taste Elevation | |||
Revenue from External Customer [Line Items] | |||
Net sales | 8,249 | 7,267 | 6,808 |
Fast Fresh Meals | |||
Revenue from External Customer [Line Items] | |||
Net sales | 6,064 | 6,665 | 6,819 |
Easy Meals Made Better | |||
Revenue from External Customer [Line Items] | |||
Net sales | 5,313 | 4,927 | 4,909 |
Real Food Snacking | |||
Revenue from External Customer [Line Items] | |||
Net sales | 1,375 | 1,808 | 2,296 |
Flavorful Hydration | |||
Revenue from External Customer [Line Items] | |||
Net sales | 1,999 | 1,777 | 1,648 |
Easy Indulgent Desserts | |||
Revenue from External Customer [Line Items] | |||
Net sales | 1,067 | 1,034 | 999 |
Other | |||
Revenue from External Customer [Line Items] | |||
Net sales | $ 2,418 | $ 2,564 | $ 2,706 |
Segment Reporting - Net Sales_3
Segment Reporting - Net Sales by Product Category (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Revenue from External Customer [Line Items] | |||
Net sales | $ 26,485 | $ 26,042 | $ 26,185 |
Condiments and sauces | |||
Revenue from External Customer [Line Items] | |||
Net sales | 8,241 | 7,302 | 6,813 |
Cheese and dairy | |||
Revenue from External Customer [Line Items] | |||
Net sales | 3,976 | 4,922 | 5,131 |
Ambient foods | |||
Revenue from External Customer [Line Items] | |||
Net sales | 3,047 | 2,896 | 2,954 |
Frozen and chilled foods | |||
Revenue from External Customer [Line Items] | |||
Net sales | 2,922 | 2,698 | 2,599 |
Meats and seafood | |||
Revenue from External Customer [Line Items] | |||
Net sales | 2,733 | 2,613 | 2,515 |
Refreshment beverages | |||
Revenue from External Customer [Line Items] | |||
Net sales | 1,999 | 1,786 | 1,655 |
Coffee | |||
Revenue from External Customer [Line Items] | |||
Net sales | 903 | 847 | 1,062 |
Infant and nutrition | |||
Revenue from External Customer [Line Items] | |||
Net sales | 411 | 441 | 433 |
Desserts, toppings and baking | |||
Revenue from External Customer [Line Items] | |||
Net sales | 1,195 | 1,157 | 1,121 |
Nuts and salted snacks | |||
Revenue from External Customer [Line Items] | |||
Net sales | 0 | 464 | 1,047 |
Other | |||
Revenue from External Customer [Line Items] | |||
Net sales | $ 1,058 | $ 916 | $ 855 |
Segment Reporting - Net Sales_4
Segment Reporting - Net Sales by Geography (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 26,485 | $ 26,042 | $ 26,185 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 18,587 | 18,604 | 19,204 |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,752 | 1,747 | 1,640 |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,160 | 1,147 | 1,103 |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 4,986 | $ 4,544 | $ 4,238 |
Segment Reporting - Long-lived
Segment Reporting - Long-lived Assets by Geography (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 25, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 6,740 | $ 6,806 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 4,469 | 4,547 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 2,271 | $ 2,259 |
Other Financial Data - Schedule
Other Financial Data - Schedule of Other Expense/(Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Other Income and Expenses [Abstract] | |||
Amortization of prior service costs/(credits) | $ (14) | $ (7) | $ (122) |
Net pension and postretirement non-service cost/(benefit) | (135) | (214) | (201) |
Loss/(gain) on sale of business | (25) | (44) | 2 |
Interest income | (27) | (15) | (27) |
Foreign exchange losses/(gains) | (106) | (101) | 162 |
Derivative losses/(gains) | 50 | 86 | (154) |
Other miscellaneous expense/(income) | 4 | 0 | 44 |
Other expense/(income) | $ (253) | $ (295) | $ (296) |
Other Financial Data - Addition
Other Financial Data - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Other Income and Expenses [Abstract] | |||
Other expense/(income) | $ 253 | $ 295 | $ 296 |
Net pension and postretirement non-service cost/(benefit) | 79 | ||
Loss/(gain) on sale of business | 25 | 44 | (2) |
Net gain on derivative activities | (50) | (86) | 154 |
Defined benefit plan, year over year change in amortization of prior service credits | 115 | ||
Foreign exchange losses/(gains) | (106) | $ (101) | 162 |
Gain (loss) on dissolution of joint venture | $ 26 | ||
Increase/(Decrease) in Year over Year Invest Income, Interest | $ 12 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 149 | $ 153 | $ 145 |
Charged to Costs and Expenses | (9) | 6 | 18 |
Charged to Other Accounts | 0 | 1 | 0 |
Write-offs and Reclassifications | 2 | (11) | (10) |
Balance at End of Period | 142 | 149 | 153 |
Allowances related to trade accounts receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 48 | 48 | 33 |
Charged to Costs and Expenses | (4) | 5 | 21 |
Charged to Other Accounts | 0 | 1 | 0 |
Write-offs and Reclassifications | 2 | (6) | (6) |
Balance at End of Period | 46 | 48 | 48 |
Allowances related to deferred taxes | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 101 | 105 | 112 |
Charged to Costs and Expenses | (5) | 1 | (3) |
Charged to Other Accounts | 0 | 0 | 0 |
Write-offs and Reclassifications | 0 | (5) | (4) |
Balance at End of Period | $ 96 | $ 101 | $ 105 |