Supplemental Guarantor Information (Tables)

9 Months Ended

Sep. 28, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Statements of Income

The Kraft Heinz Company

Condensed Consolidating Statements of Income

For the Three Months Ended September 28, 2019

(in millions)

(Unaudited)

	Parent Guarantor		Subsidiary Issuer		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—	$	4,118	$	2,070		$	(112	)	$	6,076
Cost of products sold	—		2,742		1,499			(112		)	4,129
Gross profit	—		1,376		571			—			1,947
Selling, general and administrative expenses, excluding impairment losses	—		195		567			—			762
Goodwill impairment losses	—		—		—			—			—
Intangible asset impairment losses	—		—		5			—			5
Selling, general and administrative expenses	—		195		572			—			767
Intercompany service fees and other recharges	—		719		(719		)	—			—
Operating income/(loss)	—		462		718			—			1,180
Interest expense	—		384		14			—			398
Other expense/(income)	—		12		(392		)	—			(380		)
Income/(loss) before income taxes	—		66		1,096			—			1,162
Provision for/(benefit from) income taxes	—		31		233			—			264
Equity in earnings/(losses) of subsidiaries	899		864		—			(1,763		)	—
Net income/(loss)	899		899		863			(1,763		)	898
Net income/(loss) attributable to noncontrolling interest	—		—		(1		)	—			(1		)
Net income/(loss) excluding noncontrolling interest	$	899	$	899	$	864		$	(1,763	)	$	899
Comprehensive income/(loss) excluding noncontrolling interest	$	580	$	580	$	(258	)	$	(322	)	$	580

The Kraft Heinz Company

Condensed Consolidating Statements of Income

For the Three Months Ended September 29, 2018

(in millions)

(Unaudited)

	As Restated
	Parent Guarantor		Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—	$	4,226		$	2,295		$	(138	)	$	6,383
Cost of products sold	—		2,819			1,608			(138		)	4,289
Gross profit	—		1,407			687			—			2,094
Selling, general and administrative expenses, excluding impairment losses	—		205			598			—			803
Goodwill impairment losses	—		—			—			—			—
Intangible asset impairment losses	—		—			217			—			217
Selling, general and administrative expenses	—		205			815			—			1,020
Intercompany service fees and other recharges	—		975			(975		)	—			—
Operating income/(loss)	—		227			847			—			1,074
Interest expense	—		310			16			—			326
Other expense/(income)	—		(60		)	(11		)	—			(71		)
Income/(loss) before income taxes	—		(23		)	842			—			819
Provision for/(benefit from) income taxes	—		(41		)	242			—			201
Equity in earnings/(losses) of subsidiaries	619		600			—			(1,219		)	—
Net income/(loss)	619		618			600			(1,219		)	618
Net income/(loss) attributable to noncontrolling interest	—		—			(1		)	—			(1		)
Net income/(loss) excluding noncontrolling interest	$	619	$	618		$	601		$	(1,219	)	$	619
Comprehensive income/(loss) excluding noncontrolling interest	$	446	$	446		$	441		$	(887	)	$	446

The Kraft Heinz Company

Condensed Consolidating Statements of Income

For the Three Months Ended September 29, 2018

(in millions)

(Unaudited)

	As Previously Reported
	Parent Guarantor		Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—	$	4,226		$	2,289		$	(137	)	$	6,378
Cost of products sold	—		2,800			1,608			(137		)	4,271
Gross profit	—		1,426			681			—			2,107
Selling, general and administrative expenses, excluding impairment losses	—		205			598			—			803
Goodwill impairment losses	—		—			—			—			—
Intangible asset impairment losses	—		—			234			—			234
Selling, general and administrative expenses	—		205			832			—			1,037
Intercompany service fees and other recharges	—		975			(975		)	—			—
Operating income/(loss)	—		246			824			—			1,070
Interest expense	—		311			16			—			327
Other expense/(income)	—		(59		)	(12		)	—			(71		)
Income/(loss) before income taxes	—		(6		)	820			—			814
Provision for/(benefit from) income taxes	—		(52		)	238			—			186
Equity in earnings/(losses) of subsidiaries	630		584			—			(1,214		)	—
Net income/(loss)	630		630			582			(1,214		)	628
Net income/(loss) attributable to noncontrolling interest	—		—			(2		)	—			(2		)
Net income/(loss) excluding noncontrolling interest	$	630	$	630		$	584		$	(1,214	)	$	630
												—
Comprehensive income/(loss) excluding noncontrolling interest	$	455	$	455		$	423		$	(878	)	$	455

The Kraft Heinz Company

Condensed Consolidating Statements of Income

For the Nine Months Ended September 28, 2019

(in millions)

(Unaudited)

	Parent Guarantor		Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—	$	12,398		$	6,384		$	(341	)	$	18,441
Cost of products sold	—		8,130			4,612			(341		)	12,401
Gross profit	—		4,268			1,772			—			6,040
Selling, general and administrative expenses, excluding impairment losses	—		609			1,732			—			2,341
Goodwill impairment losses	—		—			744			—			744
Intangible asset impairment losses	—		—			479			—			479
Selling, general and administrative expenses	—		609			2,955			—			3,564
Intercompany service fees and other recharges	—		2,459			(2,459		)	—			—
Operating income/(loss)	—		1,200			1,276			—			2,476
Interest expense	—		982			53			—			1,035
Other expense/(income)	—		(53		)	(840		)	—			(893		)
Income/(loss) before income taxes	—		271			2,063			—			2,334
Provision for/(benefit from) income taxes	—		102			482			—			584
Equity in earnings/(losses) of subsidiaries	1,753		1,584			—			(3,337		)	—
Net income/(loss)	1,753		1,753			1,581			(3,337		)	1,750
Net income/(loss) attributable to noncontrolling interest	—		—			(3		)	—			(3		)
Net income/(loss) excluding noncontrolling interest	$	1,753	$	1,753		$	1,584		$	(3,337	)	$	1,753
Comprehensive income/(loss) excluding noncontrolling interest	$	1,434	$	1,434		$	1,210		$	(2,644	)	$	1,434

The Kraft Heinz Company

Condensed Consolidating Statements of Income

For the Nine Months Ended September 29, 2018

(in millions)

(Unaudited)

	As Restated
	Parent Guarantor		Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—	$	12,693		$	7,091		$	(407	)	$	19,377
Cost of products sold	—		8,157			4,922			(407		)	12,672
Gross profit	—		4,536			2,169			—			6,705
Selling, general and administrative expenses, excluding impairment losses	—		589			1,734			—			2,323
Goodwill impairment losses	—		—			133			—			133
Intangible asset impairment losses	—		—			318			—			318
Selling, general and administrative expenses	—		589			2,185			—			2,774
Intercompany service fees and other recharges	—		3,253			(3,253		)	—			—
Operating income/(loss)	—		694			3,237			—			3,931
Interest expense	—		908			51			—			959
Other expense/(income)	—		(236		)	55			—			(181		)
Income/(loss) before income taxes	—		22			3,131			—			3,153
Provision for/(benefit from) income taxes	—		(23		)	802			—			779
Equity in earnings/(losses) of subsidiaries	2,376		2,331			—			(4,707		)	—
Net income/(loss)	2,376		2,376			2,329			(4,707		)	2,374
Net income/(loss) attributable to noncontrolling interest	—		—			(2		)	—			(2		)
Net income/(loss) excluding noncontrolling interest	$	2,376	$	2,376		$	2,331		$	(4,707	)	$	2,376
Comprehensive income/(loss) excluding noncontrolling interest	$	1,706	$	1,706		$	1,630		$	(3,336	)	$	1,706

The Kraft Heinz Company

Condensed Consolidating Statements of Income

For the Nine Months Ended September 29, 2018

(in millions)

(Unaudited)

	As Previously Reported
	Parent Guarantor		Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—	$	12,693		$	7,082		$	(407	)	$	19,368
Cost of products sold	—		8,130			4,928			(407		)	12,651
Gross profit	—		4,563			2,154			—			6,717
Selling, general and administrative expenses, excluding impairment losses	—		589			1,749			—			2,338
Goodwill impairment losses	—		—			164			—			164
Intangible asset impairment losses	—		—			335			—			335
Selling, general and administrative expenses	—		589			2,248			—			2,837
Intercompany service fees and other recharges	—		3,253			(3,253		)	—			—
Operating income/(loss)	—		721			3,159			—			3,880
Interest expense	—		911			51			—			962
Other expense/(income)	—		(234		)	38			—			(196		)
Income/(loss) before income taxes	—		44			3,070			—			3,114
Provision for/(benefit from) income taxes	—		(36		)	774			—			738
Equity in earnings/(losses) of subsidiaries	2,379		2,299			—			(4,678		)	—
Net income/(loss)	2,379		2,379			2,296			(4,678		)	2,376
Net income/(loss) attributable to noncontrolling interest	—		—			(3		)	—			(3		)
Net income/(loss) excluding noncontrolling interest	$	2,379	$	2,379		$	2,299		$	(4,678	)	$	2,379
												—
Comprehensive income/(loss) excluding noncontrolling interest	$	1,701	$	1,701		$	1,588		$	(3,289	)	$	1,701

Condensed Consolidating Balance Sheets

The Kraft Heinz Company

Condensed Consolidating Balance Sheets

As of September 28, 2019

(in millions)

(Unaudited)

	Parent Guarantor		Subsidiary Issuer		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	—	$	834	$	1,481	$	—		$	2,315
Trade receivables, net	—		867		1,092		—			1,959
Receivables due from affiliates	—		1,437		854		(2,291		)	—
Dividends due from affiliates	—		—		—		—			—
Income taxes receivable	—		38		81		—			119
Inventories	—		2,179		979		—			3,158
Short-term lending due from affiliates	—		1,357		4,242		(5,599		)	—
Prepaid expenses	—		216		199		—			415
Other current assets	—		669		455		—			1,124
Assets held for sale	—		23		12		—			35
Total current assets	—		7,620		9,395		(7,890		)	9,125
Property, plant and equipment, net	—		4,392		2,534		—			6,926
Goodwill	—		11,066		24,760		—			35,826
Investments in subsidiaries	50,788		66,986		—		(117,774		)	—
Intangible assets, net	—		2,895		45,819		—			48,714
Long-term lending due from affiliates	—		207		2,000		(2,207		)	—
Other non-current assets	—		825		1,406		—			2,231
TOTAL ASSETS	$	50,788	$	93,991	$	85,914	$	(127,871	)	$	102,822
LIABILITIES AND EQUITY
Commercial paper and other short-term debt	$	—	$	14	$	1	$	—		$	15
Current portion of long-term debt	—		1,928		617		—			2,545
Short-term lending due to affiliates	—		4,242		1,357		(5,599		)	—
Trade payables	—		2,602		1,554		—			4,156
Payables due to affiliates	—		854		1,437		(2,291		)	—
Accrued marketing	—		121		337		—			458
Interest payable	—		267		11		—			278
Dividends due to affiliates	—		—		—		—			—
Other current liabilities	—		1,019		639		—			1,658
Liabilities held for sale	—		—		2		—			2
Total current liabilities	—		11,047		5,955		(7,890		)	9,112
Long-term debt	—		27,822		290		—			28,112
Long-term borrowings due to affiliates	—		2,000		207		(2,207		)	—
Deferred income taxes	—		1,415		10,595		—			12,010
Accrued postemployment costs	—		82		233		—			315
Other non-current liabilities	—		837		630		—			1,467
TOTAL LIABILITIES	—		43,203		17,910		(10,097		)	51,016
Redeemable noncontrolling interest	—		—		2		—			2
Total shareholders’ equity	50,788		50,788		67,871		(117,774		)	51,673
Noncontrolling interest	—		—		131		—			131
TOTAL EQUITY	50,788		50,788		68,002		(117,774		)	51,804
TOTAL LIABILITIES AND EQUITY	$	50,788	$	93,991	$	85,914	$	(127,871	)	$	102,822

The Kraft Heinz Company

Condensed Consolidating Balance Sheets

As of December 29, 2018

(in millions)

(Unaudited)

	Parent Guarantor		Subsidiary Issuer		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	—	$	202	$	928	$	—		$	1,130
Trade receivables, net	—		933		1,196		—			2,129
Receivables due from affiliates	—		870		341		(1,211		)	—
Income taxes receivable	—		701		9		(558		)	152
Inventories	—		1,783		884		—			2,667
Short-term lending due from affiliates	—		1,787		3,753		(5,540		)	—
Prepaid expenses	—		198		202		—			400
Other current assets	—		776		445		—			1,221
Assets held for sale	—		75		1,301		—			1,376
Total current assets	—		7,325		9,059		(7,309		)	9,075
Property, plant and equipment, net	—		4,524		2,554		—			7,078
Goodwill	—		11,067		25,436		—			36,503
Investments in subsidiaries	51,657		67,867		—		(119,524		)	—
Intangible assets, net	—		3,010		46,458		—			49,468
Long-term lending due from affiliates	—		—		2,000		(2,000		)	—
Other non-current assets	—		316		1,021		—			1,337
TOTAL ASSETS	$	51,657	$	94,109	$	86,528	$	(128,833	)	$	103,461
LIABILITIES AND EQUITY
Commercial paper and other short-term debt	$	—	$	—	$	21	$	—		$	21
Current portion of long-term debt	—		363		14		—			377
Short-term lending due to affiliates	—		3,753		1,787		(5,540		)	—
Trade payables	—		2,563		1,590		—			4,153
Payables due to affiliates	—		341		870		(1,211		)	—
Accrued marketing	—		282		440		—			722
Interest payable	—		394		14		—			408
Other current liabilities	—		888		1,437		(558		)	1,767
Liabilities held for sale	—		—		55		—			55
Total current liabilities	—		8,584		6,228		(7,309		)	7,503
Long-term debt	—		29,872		898		—			30,770
Long-term borrowings due to affiliates	—		2,000		12		(2,012		)	—
Deferred income taxes	—		1,314		10,888		—			12,202
Accrued postemployment costs	—		89		217		—			306
Other non-current liabilities	—		593		309		—			902
TOTAL LIABILITIES	—		42,452		18,552		(9,321		)	51,683
Redeemable noncontrolling interest	—		—		3		—			3
Total shareholders’ equity	51,657		51,657		67,855		(119,512		)	51,657
Noncontrolling interest	—		—		118		—			118
TOTAL EQUITY	51,657		51,657		67,973		(119,512		)	51,775
TOTAL LIABILITIES AND EQUITY	$	51,657	$	94,109	$	86,528	$	(128,833	)	$	103,461

Condensed Consolidating Statements of Cash Flows

The Kraft Heinz Company

Condensed Consolidating Statements of Cash Flows

For the Nine Months Ended September 28, 2019

(in millions)

(Unaudited)

	Parent Guarantor			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by/(used for) operating activities	$	1,464		$	1,715		$	275		$	(1,464	)	$	1,990
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	—			(293		)	(288		)	—			(581		)
Payments to acquire business, net of cash acquired	—			(201		)	2			—			(199		)
Net proceeds from/(payments on) intercompany lending activities	—			1,620			373			(1,993		)	—
Additional investments in subsidiaries	(19		)	(36		)	—			55			—
Return of capital	—			—			—			—			—
Proceeds from sale of business, net of cash disposed	—			—			1,875			—			1,875
Other investing activities, net	—			60			(44		)	—			16
Net cash provided by/(used for) investing activities	(19		)	1,150			1,918			(1,938		)	1,111
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of long-term debt	—			(3,267		)	(5		)	—			(3,272		)
Proceeds from issuance of long-term debt	—			2,968			(1		)	—			2,967
Debt prepayment and extinguishment costs	—			(91		)	—			—			(91		)
Proceeds from issuance of commercial paper	—			377			—			—			377
Repayments of commercial paper	—			(377		)	—			—			(377		)
Net proceeds from/(payments on) intercompany borrowing activities	—			(373		)	(1,620		)	1,993			—
Dividends paid	(1,464		)	(1,464		)	—			1,464			(1,464		)
Other intercompany capital stock transactions	—			19			36			(55		)	—
Other financing activities, net	19			(23		)	(17		)	—			(21		)
Net cash provided by/(used for) financing activities	(1,445		)	(2,231		)	(1,607		)	3,402			(1,881		)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	—			(2		)	(38		)	—			(40		)
Cash, cash equivalents, and restricted cash:
Net increase/(decrease)	—			632			548			—			1,180
Balance at beginning of period	—			202			934			—			1,136
Balance at end of period	$	—		$	834		$	1,482		$	—		$	2,316

The Kraft Heinz Company

Condensed Consolidating Statements of Cash Flows

For the Nine Months Ended September 29, 2018

(in millions)

(Unaudited)

	As Restated
	Parent Guarantor			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by/(used for) operating activities	$	2,421		$	825		$	63		$	(2,431	)	$	878
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts on sold receivables	—			—			1,296			—			1,296
Capital expenditures	—			(251		)	(343		)	—			(594		)
Payments to acquire business, net of cash acquired	—			(245		)	(3		)	—			(248		)
Net proceeds from/(payments on) intercompany lending activities	—			1,074			185			(1,259		)	—
Additional investments in subsidiaries	—			(41		)	—			41			—
Return of capital	7			—			—			(7		)	—
Proceeds from sale of business, net of cash disposed	—			—			18			—			18
Other investing activities, net	—			14			(1		)	—			13
Net cash provided by/(used for) investing activities	7			551			1,152			(1,225		)	485
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of long-term debt	—			(2,546		)	(160		)	—			(2,706		)
Proceeds from issuance of long-term debt	—			2,990			—			—			2,990
Proceeds from issuance of commercial paper	—			2,485			—			—			2,485
Repayments of commercial paper	—			(1,950		)	—			—			(1,950		)
Net proceeds from/(payments on) intercompany borrowing activities	—			(185		)	(1,074		)	1,259			—
Dividends paid	(2,421		)	(2,421		)	(10		)	2,431			(2,421		)
Other intercompany capital stock transactions	—			(7		)	41			(34		)	—
Other financing activities, net	(7		)	(17		)	(11		)	—			(35		)
Net cash provided by/(used for) financing activities	(2,428		)	(1,651		)	(1,214		)	3,656			(1,637		)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	—			—			(128		)	—			(128		)
Cash, cash equivalents, and restricted cash:
Net increase/(decrease)	—			(275		)	(127		)	—			(402		)
Balance at beginning of period	—			644			1,125			—			1,769
Balance at end of period	$	—		$	369		$	998		$	—		$	1,367

The Kraft Heinz Company

Condensed Consolidating Statements of Cash Flows

For the Nine Months Ended September 29, 2018

(in millions)

(Unaudited)

	As Previously Reported
	Parent Guarantor			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by/(used for) operating activities	$	2,421		$	844		$	65		$	(2,431	)	$	899
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts on sold receivables	—			—			1,296			—			1,296
Capital expenditures	—			(251		)	(343		)	—			(594		)
Payments to acquire business, net of cash acquired	—			(244		)	(4		)	—			(248		)
Net proceeds from/(payments on) intercompany lending activities	—			1,074			185			(1,259		)	—
Additional investments in subsidiaries	—			(41		)	—			41			—
Return of capital	7			—			—			(7		)	—
Proceeds from sale of business, net of cash disposed	—			—			18			—			18
Other investing activities, net	—			13			—			—			13
Net cash provided by/(used for) investing activities	7			551			1,152			(1,225		)	485
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of long-term debt	—			(2,565		)	(162		)	—			(2,727		)
Proceeds from issuance of long-term debt	—			2,990			—			—			2,990
Proceeds from issuance of commercial paper	—			2,485			—			—			2,485
Repayments of commercial paper	—			(1,950		)	—			—			(1,950		)
Net proceeds from/(payments on) intercompany borrowing activities	—			(185		)	(1,074		)	1,259			—
Dividends paid	(2,421		)	(2,421		)	(10		)	2,431			(2,421		)
Other intercompany capital stock transactions	—			(7		)	41			(34		)	—
Other financing activities, net	(7		)	(16		)	(12		)	—			(35		)
Net cash provided by/(used for) financing activities	(2,428		)	(1,669		)	(1,217		)	3,656			(1,658		)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	—			—			(128		)	—			(128		)
Cash, cash equivalents, and restricted cash:
Net increase/(decrease)	—			(274		)	(128		)	—			(402		)
Balance at beginning of period	—			644			1,125			—			1,769
Balance at end of period	$	—		$	370		$	997		$	—		$	1,367

Reconciliation from Cash and Cash Equivalents to Cash, Cash Equivalents, and Restricted Cash

The following tables provide a reconciliation of cash and cash equivalents, as reported on our condensed consolidating balance sheets, to cash, cash equivalents, and restricted cash, as reported on our condensed consolidating statements of cash flows (in millions):

	September 28, 2019
	Parent Guarantor		Subsidiary Issuer		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents	$	—	$	834	$	1,481	$	—	$	2,315
Restricted cash included in other current assets	—		—		1		—		1
Restricted cash included in other non-current assets	—		—		—		—		—
Cash, cash equivalents, and restricted cash	$	—	$	834	$	1,482	$	—	$	2,316

	December 29, 2018
	Parent Guarantor		Subsidiary Issuer		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents	$	—	$	202	$	928	$	—	$	1,130
Restricted cash included in other current assets	—		—		1		—		1
Restricted cash included in other non-current assets	—		—		5		—		5
Cash, cash equivalents, and restricted cash	$	—	$	202	$	934	$	—	$	1,136