EX-99.1 3 d317404dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

SUPPLEMENTAL HISTORICAL SEGMENT FINANCIAL INFORMATION AND SUPPLEMENTAL NON-GAAP

FINANCIAL INFORMATION

Table of Contents

 

   

Page No.

Introduction…………………………………………………………………………………………………………………………………

  2

Results of Operations by Segment………………………………………………………………………………………………………….

  2

Non-GAAP Financial Measures……………………………………………………………………………………………………………

  3

Unless the context otherwise requires, the terms “we,” “us,” “our,” “Kraft Heinz,” and the “Company” each refer to The Kraft Heinz Company and all of its consolidated subsidiaries. Unless the context otherwise requires, references to years and quarters contained herein pertain to our fiscal years and fiscal quarters.

Forward-Looking Statements

This supplemental information contains a number of forward-looking statements. Words such as “anticipate,” “assess,” “believe,” “drive,” “evaluate,” “grow,” “improve,” “intend,” “invest,” “make,” “plan,” “reflect,” “see,” “will,” and variations of such words and similar future or conditional expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding our plans and growth. These forward-looking statements reflect management’s current expectations and are not guarantees of future performance and are subject to a number of risks and uncertainties, many of which are difficult to predict and beyond our control.

Important factors that may affect our business and operations and that may cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the impacts of COVID-19 and government and consumer responses; operating in a highly competitive industry; our ability to correctly predict, identify, and interpret changes in consumer preferences and demand, to offer new products to meet those changes, and to respond to competitive innovation; changes in the retail landscape or the loss of key retail customers; changes in our relationships with significant customers or suppliers, or in other business relationships; our ability to maintain, extend, and expand our reputation and brand image; our ability to leverage our brand value to compete against private label products; our ability to drive revenue growth in our key product categories or platforms, increase our market share, or add products that are in faster-growing and more profitable categories; product recalls or other product liability claims; climate change and legal or regulatory responses; our ability to identify, complete, or realize the benefits from strategic acquisitions, alliances, divestitures, joint ventures, or other investments; our ability to successfully execute our strategic initiatives; the impacts of our international operations; our ability to protect intellectual property rights; our ownership structure; our ability to realize the anticipated benefits from prior or future streamlining actions to reduce fixed costs, simplify or improve processes, and improve our competitiveness; our level of indebtedness, as well as our ability to comply with covenants under our debt instruments; additional impairments of the carrying amounts of goodwill or other indefinite-lived intangible assets; foreign exchange rate fluctuations; volatility in commodity, energy, and other input costs; volatility in the market value of all or a portion of the commodity derivatives we use; compliance with laws and regulations and related legal claims or regulatory enforcement actions; failure to maintain an effective system of internal controls; a downgrade in our credit rating; the impact of future sales of our common stock in the public market; our ability to continue to pay a regular dividend and the amounts of any such dividends; unanticipated business disruptions and natural events in the locations in which we or our customers, suppliers, distributors, or regulators operate; economic and political conditions in the United States and in various other nations where we do business (including the Russia and Ukraine conflict and its regional and global ramifications); changes in our management team or other key personnel and our ability to hire or retain key personnel or a highly skilled and diverse global workforce; risks associated with information technology and systems, including service interruptions, misappropriation of data, or breaches of security; increased pension, labor, and people-related expenses; changes in tax laws and interpretations; volatility of capital markets and other macroeconomic factors; and other factors. For additional information on these and other factors that could affect our forward-looking statements, see Item 1A, Risk Factors, in our Annual Report on Form 10-K for the year ended December 25, 2021. We disclaim and do not undertake any obligation to update, revise, or withdraw any forward-looking statement in this supplemental information, except as required by applicable law or regulation.

 

1

Introduction

Background:

In the second quarter of 2022, we reorganized our segments. For informational purposes only, we have provided this supplemental information to present the effects of this change to certain previously disclosed financial information, including certain unaudited information related to our results of operations by segment and non-GAAP financial measures, for the years ended December 25, 2021, December 26, 2020, and December 28, 2019, as well as for each of the quarters ended March 26, 2022, December 25, 2021, September 25, 2021, June 26, 2021, and March 27, 2021. The segment reorganization in the second quarter of 2022 had no impact on our condensed consolidated financial statements for any of the periods presented in our Quarterly Report on Form 10-Q for the three months ended March 26, 2022 (“Q1 2022 Form 10-Q”) filed on April 28, 2022 or on our consolidated financial statements for any of the periods presented in our Annual Report on Form 10-K for the year ended December 25, 2021 (“2021 Form 10-K”) filed on February 17, 2022.

The following unaudited financial information is based on our historical financial statements after giving effect to the segment reorganization in the second quarter of 2022. You should read this supplemental information in conjunction with our unaudited condensed consolidated financial statements and related notes in our Q1 2022 Form 10-Q and our audited consolidated financial statements and related notes in our 2021 Form 10-K. The financial information contained in this report is not indicative of future or annual results.

Segment Changes:

As previously described in our Q1 2022 Form 10-Q, prior to the reorganization of our segments in the second quarter of 2022, we managed and reported our operating results through three reportable segments defined by geographic region: United States, International, and Canada.

During the fourth quarter of 2021, certain organizational changes were announced that impacted our internal reporting and reportable segments beginning in the second quarter of 2022. As a result of these changes, which are intended to advance and support our long-term growth plans by streamlining and synergizing our United States and Canada businesses, we combined our United States and Canada zones to form the North America zone.

After these organizational changes were announced, we reassessed our reportable segment structure in accordance with Accounting Standards Codification 280, Segment Reporting. Under our new organizational structure, our chief operating decision maker assesses the performance of and makes decisions about resources to be allocated to our operating segments, which were also determined to be our reportable segments, as follows: North America and International.

Therefore, effective in the second quarter of 2022, we manage and report our operating results through two reportable segments defined by geographic region: North America and International.

Results of Operations by Segment

In this supplemental information, in addition to results prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), we disclose certain non-GAAP financial measures. These non-GAAP financial measures assist management in comparing our performance on a consistent basis for purposes of business decision-making by removing the impact of certain items that management believes do not directly reflect our underlying operations. For additional information and reconciliations from GAAP financial measures see the Non-GAAP Financial Measures section.

Management evaluates segment performance based on several factors, including net sales, Organic Net Sales, and Segment Adjusted EBITDA. Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section for additional information. 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.

 

2

Additionally, certain of the historical Organic Net Sales figures presented within this supplemental information differ from previously disclosed amounts as a result of excluding the impact of the sales of certain assets in our global nuts business (the “Nuts Transaction”) and our global cheese business (the “Cheese Transaction”), consistent with our definition of Organic Net Sales in the Non-GAAP Financial Measures section. The Nuts Transaction closed on June 7, 2021 and the Cheese Transaction closed on November 29, 2021. See our Q1 2022 Form 10-Q and our 2021 Form 10-K for additional information on the Nuts Transaction and the Cheese Transaction.

 

                                                                                           
     2021 compared to 2020      2020 compared to 2019  
               
     For the Year Ended  
     December 25,
2021		      December 26,
2020		      December 26,
2020		      December 28,
2019		  
  

 

 

     

 

 

     

 

 

     

 

 

  
     (in millions)  

North America

            

Net sales

    $ 20,351      $ 20,844      $ 20,844      $ 19,726  

Organic Net Sales(a)

      18,251        17,994        18,014        16,881  

Segment Adjusted EBITDA

      5,576        5,946        5,946        5,316  

International

            

Net sales

      5,691        5,341        5,341        5,251  

Organic Net Sales(a)

      5,463        5,299        5,435        5,187  

Segment Adjusted EBITDA

      1,066        1,058        1,058        1,004  

 

(a)

Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section for more information.

 

                                                                                                                  
     For the Three Months Ended  
     March 26,
2022		      December 25,
2021		      September 25,
2021		      June 26,
2021		      March 27,
2021		  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     (in millions)  

North America

               

Net sales

    $ 4,601      $ 5,208      $ 4,941      $ 5,202      $ 5,000  

Organic Net Sales(a)

      4,602        4,897        4,514        4,554        4,286  

Segment Adjusted EBITDA

      1,173        1,445        1,273        1,491        1,367  

International

               

Net sales

      1,444        1,501        1,383        1,413        1,394  

Organic Net Sales(a)

      1,479        1,493        1,344        1,300        1,326  

Segment Adjusted EBITDA

      242        245        252        286        283  

 

(a)

Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section for more information.

Non-GAAP Financial Measures

The non-GAAP financial measures we provide in this supplemental information should be viewed in addition to, and not as an alternative for, results prepared in accordance with GAAP.

To supplement the GAAP financial information provided, we have presented Organic Net Sales, Adjusted EBITDA, and Constant Currency Adjusted EBITDA, which are considered non-GAAP financial measures. The non-GAAP financial measures presented may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define these non-GAAP financial measures in the same way. These measures are not substitutes for their comparable GAAP financial measures, such as net sales, net income/(loss), or other measures prescribed by GAAP, and there are limitations to using non-GAAP financial measures.

Management uses these non-GAAP financial measures to assist in comparing our performance on a consistent basis for purposes of business decision making by removing the impact of certain items that management believes do not directly reflect our underlying operations. Management believes that presenting our non-GAAP financial measures (i.e., Organic Net Sales, Adjusted EBITDA, and Constant Currency Adjusted EBITDA) is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items, (ii) permits investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating our results. We believe that the presentation of these non-GAAP financial measures, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provides investors with additional understanding of the factors and trends affecting our business than could be obtained absent these disclosures.

 

3

Organic Net Sales is defined as net sales excluding, when they occur, the impact of currency, acquisitions and divestitures, and a 53rd week of shipments. We calculate the impact of currency on net sales by holding exchange rates constant at the previous year’s exchange rate, with the exception of highly inflationary subsidiaries, for which we calculate the previous year’s results using the current year’s exchange rate. Organic Net Sales 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.

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 losses/(gains) on commodity hedges, impairment losses, certain non-ordinary course legal and regulatory matters, and equity award compensation expense (excluding restructuring activities). We also present Adjusted EBITDA on a constant currency basis. We calculate the impact of currency on Adjusted EBITDA by holding exchange rates constant at the previous year’s exchange rate, with the exception of highly inflationary subsidiaries, for which we calculate the previous year’s results using the current year’s exchange rate. Adjusted EBITDA and Constant Currency Adjusted EBITDA are tools 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.

 

4

The Kraft Heinz Company

Reconciliation of Net Sales to Organic Net Sales

For the Year Ended

(dollars in millions)

(Unaudited)

 

                                                                                                       
     Net Sales      Currency      Acquisitions
and
Divestitures		      Organic Net
Sales		  

December 25, 2021

            

North America

    $ 20,351       $ 114       $ 1,986       $ 18,251   

International

      5,691         205         23         5,463   
  

 

 

     

 

 

     

 

 

     

 

 

  

Kraft Heinz

    $ 26,042       $ 319       $ 2,009       $ 23,714   
  

 

 

     

 

 

     

 

 

     

 

 

  
           

December 26, 2020

            

North America

    $ 20,844       $ —       $ 2,850       $ 17,994   

International

      5,341         22         20         5,299   
  

 

 

     

 

 

     

 

 

     

 

 

  

Kraft Heinz

    $ 26,185       $ 22       $ 2,870       $ 23,293   
  

 

 

     

 

 

     

 

 

     

 

 

  

Year-over-year growth rates

            

North America

      (2.4)%        0.5 pp        (4.3) pp        1.4 %  

International

      6.5 %        3.4 pp        0.0 pp        3.1 %  

Kraft Heinz

      (0.5)%        1.2 pp        (3.5) pp        1.8 %  

 

5

The Kraft Heinz Company

Reconciliation of Net Sales to Organic Net Sales

For the Year Ended

(dollars in millions)

(Unaudited)

 

                                                                                                       
     Net Sales      Currency      Acquisitions
and
Divestitures		      Organic Net
Sales		  

December 26, 2020

            

North America

    $ 20,844       $ (21)      $ 2,851       $ 18,014   

International

      5,341         (114)        20         5,435   
  

 

 

     

 

 

     

 

 

     

 

 

  

Kraft Heinz

    $ 26,185       $ (135)      $ 2,871       $ 23,449   
  

 

 

     

 

 

     

 

 

     

 

 

  
           

December 28, 2019

            

North America

    $ 19,726       $ —       $ 2,845       $ 16,881   

International

      5,251         27         37         5,187   
  

 

 

     

 

 

     

 

 

     

 

 

  

Kraft Heinz

    $ 24,977       $ 27       $ 2,882       $ 22,068   
  

 

 

     

 

 

     

 

 

     

 

 

  

Year-over-year growth rates

            

North America

      5.7 %        (0.1) pp        (0.9) pp        6.7 %  

International

      1.7 %        (2.7) pp        (0.4) pp        4.8 %  

Kraft Heinz

      4.8 %        (0.7) pp        (0.8) pp        6.3 %  

 

6

The Kraft Heinz Company

Reconciliation of Net Sales to Organic Net Sales

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

                                                                                                       
     Net Sales      Currency      Acquisitions
and
Divestitures		      Organic Net
Sales		  

March 26, 2022

            

North America

    $ 4,601       $ (1)      $ —       $ 4,602   

International

      1,444         (65)        30         1,479   
  

 

 

     

 

 

     

 

 

     

 

 

  

Kraft Heinz

    $ 6,045       $ (66)      $ 30       $ 6,081   
  

 

 

     

 

 

     

 

 

     

 

 

  
           

March 27, 2021

            

North America

    $ 5,000       $ —       $ 692       $ 4,308   

International

      1,394         3         5         1,386   
  

 

 

     

 

 

     

 

 

     

 

 

  

Kraft Heinz

    $ 6,394       $ 3       $ 697       $ 5,694   
  

 

 

     

 

 

     

 

 

     

 

 

  

Year-over-year growth rates

            

North America

      (8.0)%        0.0 pp        (14.8) pp        6.8 %  

International

      3.6 %        (4.9) pp        1.8 pp        6.7 %  

Kraft Heinz

      (5.5)%        (1.1) pp        (11.2) pp        6.8 %  

 

7

The Kraft Heinz Company

Reconciliation of Net Sales to Organic Net Sales

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

                                                                                                       
     Net Sales    Currency    Acquisitions
and
Divestitures		    Organic Net
Sales

December 25, 2021

            

North America

    $ 5,208      $ 14      $ 297      $ 4,897  

International

      1,501        (6 )       14        1,493  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Kraft Heinz

    $ 6,709      $ 8      $ 311      $ 6,390  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

           

December 26, 2020

            

North America

    $ 5,529      $ —      $ 777      $ 4,752  

International

      1,410        5        6        1,399  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Kraft Heinz

    $ 6,939      $ 5      $ 783      $ 6,151  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Year-over-year growth rates

            

North America

      (5.8)%        0.3 pp        (9.1) pp        3.0 %  

International

      6.5 %        (0.9) pp        0.6  pp        6.8 %  

Kraft Heinz

      (3.3)%        0.1 pp        (7.3) pp        3.9 %  

 

8

The Kraft Heinz Company

Reconciliation of Net Sales to Organic Net Sales

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

                                                                                                       
     Net Sales    Currency    Acquisitions
and
Divestitures		    Organic Net
Sales

September 25, 2021

            

North America

    $ 4,941      $ 25      $ 402      $ 4,514  

International

      1,383        39        —        1,344  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Kraft Heinz

    $ 6,324      $ 64      $ 402      $ 5,858  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

           

September 26, 2020

            

North America

    $ 5,116      $ —      $ 674      $ 4,442  

International

      1,325        6        5        1,314  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Kraft Heinz

    $ 6,441      $ 6      $ 679      $ 5,756  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Year-over-year growth rates

            

North America

      (3.4)%        0.5 pp        (5.5) pp        1.6 %  

International

      4.4 %        2.6 pp        (0.4) pp        2.2 %  

Kraft Heinz

      (1.8)%        0.9 pp        (4.4) pp        1.7 %  

 

9

The Kraft Heinz Company

Reconciliation of Net Sales to Organic Net Sales

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

                                                                                                       
     Net Sales    Currency    Acquisitions
and
Divestitures		    Organic Net
Sales

June 26, 2021

            

North America

    $ 5,202      $ 53      $ 595      $ 4,554  

International

      1,413        108        5        1,300  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Kraft Heinz

    $ 6,615      $ 161      $ 600      $ 5,854  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

           

June 27, 2020

            

North America

    $ 5,343      $ —      $ 737      $ 4,606  

International

      1,305        5        5        1,295  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Kraft Heinz

    $ 6,648      $ 5      $ 742      $ 5,901  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Year-over-year growth rates

            

North America

      (2.6)%        1.0 pp        (2.5) pp        (1.1)%  

International

      8.3 %        7.9 pp        0.0  pp        0.4 %  

Kraft Heinz

      (0.5)%        2.3 pp        (2.0) pp        (0.8)%  

 

10

The Kraft Heinz Company

Reconciliation of Net Sales to Organic Net Sales

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

                                                                                                       
     Net Sales    Currency    Acquisitions
and
Divestitures		    Organic Net
Sales

March 27, 2021

            

North America

    $ 5,000      $ 22      $ 692      $ 4,286  

International

      1,394        64        4        1,326  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Kraft Heinz

    $ 6,394      $ 86      $ 696      $ 5,612  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

           

March 28, 2020

            

North America

    $ 4,856      $ —      $ 662      $ 4,194  

International

      1,301        6        4        1,291  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Kraft Heinz

    $ 6,157      $ 6      $ 666      $ 5,485  
  

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Year-over-year growth rates

            

North America

      3.0 %        0.5 pp        0.3 pp        2.2 %  

International

      7.2 %        4.5 pp        (0.1) pp        2.8 %  

Kraft Heinz

      3.9 %        1.4 pp        0.2 pp        2.3 %  

 

11

The Kraft Heinz Company

Reconciliation of Net Income/(Loss) to Adjusted EBITDA

For the Year Ended

(dollars in millions)

(Unaudited)

 

                                                                          
    December 25,
2021		     December 26,
2020		     December 28,
2019		  

Net income/(loss)

   $ 1,024      $ 361      $ 1,933   

Interest expense

     2,047        1,394        1,361   

Other expense/(income)

     (295)       (296)       (952)  

Provision for/(benefit from) income taxes

     684        669        728   
 

 

 

    

 

 

    

 

 

  

Operating income/(loss)

     3,460        2,128        3,070   

Depreciation and amortization (excluding restructuring activities)

     910        955        985   

Divestiture-related license income

     (4)       —        —   

Restructuring activities

     84        15        102   

Deal costs

     11        8        19   

Unrealized losses/(gains) on commodity hedges

     17        (6)       (57)  

Impairment losses

     1,634        3,413        1,899   

Certain non-ordinary course legal and regulatory matters

     62        —        —   

Equity award compensation expense (excluding restructuring activities)

     197        156        46   
 

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

   $ 6,371      $ 6,669      $ 6,064   
 

 

 

    

 

 

    

 

 

  

 

12

The Kraft Heinz Company

Reconciliation of Net Income/(Loss) to Adjusted EBITDA

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

                                                                                                                            
    March 26,
2022		     December 25,
2021		     September 25,
2021		     June 26,
2021		     March 27,
2021		  

Net income/(loss)

   $ 781      $ (255)     $ 736      $ (25)     $ 568   

Interest expense

     242        604        415        613        415   

Other expense/(income)

     (98)       (104)       (138)       (23)       (30)  

Provision for/(benefit from) income taxes

     190        (265)       143        670        136   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income/(loss)

     1,115        (20)       1,156        1,235        1,089   

Depreciation and amortization (excluding restructuring activities)

     217        233        228        227        222   

Divestiture-related license income

     (14)       (4)       —        —        —   

Restructuring activities

     19        32        15        19        18   

Deal costs

     8        3        2        (1)       7   

Unrealized losses/(gains) on commodity hedges

     (92)       29        27        (2)       (37)  

Impairment losses

     55        1,291        —        113        230   

Certain non-ordinary course legal and regulatory matters

     —        —        —        62        —   

Equity award compensation expense (excluding restructuring activities)

     34        42        51        53        51   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

   $ 1,342      $ 1,606      $ 1,479      $ 1,706      $ 1,580   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

13

The Kraft Heinz Company

Reconciliation of Net Income/(Loss) to Adjusted EBITDA

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

                                                                                                   
     December 26,
2020		      September 26,
2020		      June 27,
2020		      March 28,
2020		  

Net income/(loss)

    $ 1,034       $ 598       $ (1,652)      $ 381   

Interest expense

      328         314         442         310   

Other expense/(income)

      (64)        (73)        (78)        (81)  

Provision for/(benefit from) income taxes

      252         308         (51)        160   
  

 

 

     

 

 

     

 

 

     

 

 

  

Operating income/(loss)

      1,550         1,147         (1,339)        770   

Depreciation and amortization (excluding restructuring activities)

      233         232         247         243   

Restructuring activities

      3         8         4         —   

Deal costs

      (1)        9         —         —   

Unrealized losses/(gains) on commodity hedges

      (53)        (70)        (26)        143   

Impairment losses

      14         300         2,873         226   

Equity award compensation expense (excluding restructuring activities)

      42         41         40         33   
  

 

 

     

 

 

     

 

 

     

 

 

  

Adjusted EBITDA

    $ 1,788       $ 1,667       $ 1,799       $ 1,415   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

14

The Kraft Heinz Company

Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA

For the Year Ended

(dollars in millions)

(Unaudited)

 

                                                                    
     Adjusted
EBITDA		      Currency      Constant
Currency
Adjusted
EBITDA		  

December 25, 2021

         

North America

    $ 5,576       $ 28       $ 5,548   

International

      1,066         50         1,016   

General corporate expenses

      (271)        (2)        (269)  
  

 

 

     

 

 

     

 

 

  

Kraft Heinz

    $ 6,371       $ 76       $ 6,295   
  

 

 

     

 

 

     

 

 

  
        

December 26, 2020

         

North America

    $ 5,946       $ —       $ 5,946   

International

      1,058         11         1,047   

General corporate expenses

      (335)        —         (335)  
  

 

 

     

 

 

     

 

 

  

Kraft Heinz

    $ 6,669       $ 11       $ 6,658   
  

 

 

     

 

 

     

 

 

  

Year-over-year growth rates

         

North America

      (6.2)%        0.5 pp        (6.7)%  

International

      0.7 %        3.7 pp        (3.0)%  

General corporate expenses

      (19.1)%        0.6 pp        (19.7)%  

Kraft Heinz

      (4.5)%        0.9 pp        (5.4)%  

 

15

The Kraft Heinz Company

Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA

For the Year Ended

(dollars in millions)

(Unaudited)

 

                                                                    
     Adjusted
EBITDA		      Currency      Constant
Currency
Adjusted
EBITDA		  

December 26, 2020

         

North America

    $ 5,946       $ (5)      $ 5,951   

International

      1,058         (10)        1,068   

General corporate expenses

      (335)        (1)        (334)  
  

 

 

     

 

 

     

 

 

  

Kraft Heinz

    $ 6,669       $ (16)      $ 6,685   
  

 

 

     

 

 

     

 

 

  
        

December 28, 2019

         

North America

    $ 5,316       $ —       $ 5,316   

International

      1,004         13         991   

General corporate expenses

      (256)        —         (256)  
  

 

 

     

 

 

     

 

 

  

Kraft Heinz

    $ 6,064       $ 13       $ 6,051   
  

 

 

     

 

 

     

 

 

  

Year-over-year growth rates

         

North America

      11.8 %        (0.1) pp        11.9 %  

International

      5.4 %        (2.4) pp        7.8 %  

General corporate expenses

      31.0 %        0.2 pp        30.8 %  

Kraft Heinz

      10.0 %        (0.5) pp        10.5 %  

 

16

The Kraft Heinz Company

Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

                                                                    
     Adjusted
EBITDA		      Currency      Constant
Currency
Adjusted
EBITDA		  

March 26, 2022

         

North America

    $ 1,173       $ —       $ 1,173   

International

      242         (9)        251   

General corporate expenses

      (73)        1         (74)  
  

 

 

     

 

 

     

 

 

  

Kraft Heinz

    $ 1,342       $ (8)      $ 1,350   
  

 

 

     

 

 

     

 

 

  
        

March 27, 2021

         

North America

    $ 1,367       $ —       $ 1,367   

International

      283         1         282   

General corporate expenses

      (70)        —         (70)  
  

 

 

     

 

 

     

 

 

  

Kraft Heinz

    $ 1,580       $ 1       $ 1,579   
  

 

 

     

 

 

     

 

 

  

Year-over-year growth rates

         

North America

      (14.2)%        0.0 pp        (14.2)%  

International

      (14.4)%        (3.6) pp        (10.8)%  

General corporate expenses

      4.5 %        (1.9) pp        6.4 %  

Kraft Heinz

      (15.1)%        (0.6) pp        (14.5)%  

 

17

The Kraft Heinz Company

Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

                                                                    
     Adjusted
EBITDA		      Currency      Constant
Currency
Adjusted
EBITDA		  

December 25, 2021

         

North America

    $ 1,445       $ 4       $ 1,441   

International

      245         2         243   

General corporate expenses

      (84)        1         (85)  
  

 

 

     

 

 

     

 

 

  

Kraft Heinz

    $ 1,606       $ 7       $ 1,599   
  

 

 

     

 

 

     

 

 

  
        

December 26, 2020

         

North America

    $ 1,628       $ —       $ 1,628   

International

      261         3         258   

General corporate expenses

      (101)        —         (101)  
  

 

 

     

 

 

     

 

 

  

Kraft Heinz

    $ 1,788       $ 3       $ 1,785   
  

 

 

     

 

 

     

 

 

  

Year-over-year growth rates

         

North America

      (11.2)%        0.2 pp        (11.4)%  

International

      (6.4)%        (0.4) pp        (6.0)%  

General corporate expenses

      (16.4)%        (0.9) pp        (15.5)%  

Kraft Heinz

      (10.2)%        0.2 pp        (10.4)%  

 

18

The Kraft Heinz Company

Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

                                                                    
     Adjusted
EBITDA		      Currency      Constant
Currency
Adjusted
EBITDA		  

September 25, 2021

         

North America

    $ 1,273       $ 5       $ 1,268   

International

      252         9         243   

General corporate expenses

      (46)        (1)        (45)  
  

 

 

     

 

 

     

 

 

  

Kraft Heinz

    $ 1,479       $ 13       $ 1,466   
  

 

 

     

 

 

     

 

 

  
        

September 26, 2020

         

North America

    $ 1,466       $ —       $ 1,466   

International

      277         3         274   

General corporate expenses

      (76)        —         (76)  
  

 

 

     

 

 

     

 

 

  

Kraft Heinz

    $ 1,667       $ 3       $ 1,664   
  

 

 

     

 

 

     

 

 

  

Year-over-year growth rates

         

North America

      (13.1)%        0.4 pp        (13.5)%  

International

      (9.1)%        2.2 pp      (11.3)%  

General corporate expenses

      (39.5)%        0.2 pp        (39.7)%  

Kraft Heinz

      (11.3)%        0.6 pp        (11.9)%  

 

19

The Kraft Heinz Company

Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

                                                                    
     Adjusted
EBITDA		      Currency      Constant
Currency
Adjusted
EBITDA		  

June 26, 2021

         

North America

    $ 1,491       $ 14       $ 1,477   

International

      286         23         263   

General corporate expenses

      (71)        (1)        (70)  
  

 

 

     

 

 

     

 

 

  

Kraft Heinz

    $ 1,706       $ 36       $ 1,670   
  

 

 

     

 

 

     

 

 

  
        

June 27, 2020

         

North America

    $ 1,588       $ —       $ 1,588   

International

      275         2         273   

General corporate expenses

      (64)        —         (64)  
  

 

 

     

 

 

     

 

 

  

Kraft Heinz

    $ 1,799       $ 2       $ 1,797   
  

 

 

     

 

 

     

 

 

  

Year-over-year growth rates

         

North America

      (6.1)%        0.9 pp        (7.0)%  

International

      4.1 %        7.5 pp        (3.4)%  

General corporate expenses

      10.9 %        2.2 pp        8.7 %  

Kraft Heinz

      (5.2)%        1.8 pp        (7.0)%  

 

20

The Kraft Heinz Company

Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

                                                                    
     Adjusted
EBITDA		      Currency      Constant
Currency
Adjusted
EBITDA		  

March 27, 2021

         

North America

    $ 1,367       $ 5       $ 1,362   

International

      283         16         267   

General corporate expenses

      (70)        (1)        (69)  
  

 

 

     

 

 

     

 

 

  

Kraft Heinz

    $ 1,580       $ 20       $ 1,560   
  

 

 

     

 

 

     

 

 

  
        

March 28, 2020

         

North America

    $ 1,264       $ —       $ 1,264   

International

      245         3         242   

General corporate expenses

      (94)        —         (94)  
  

 

 

     

 

 

     

 

 

  

Kraft Heinz

    $ 1,415       $ 3       $ 1,412   
  

 

 

     

 

 

     

 

 

  

Year-over-year growth rates

         

North America

      8.1 %        0.4 pp        7.7 %  

International

      15.5 %        5.3 pp        10.2 %  

General corporate expenses

      (25.9)%        1.3 pp        (27.2)%  

Kraft Heinz

      11.6 %        1.2 pp        10.4 %  

 

21