Supplemental Guarantor Information (Notes)

12 Months Ended

Dec. 28, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Kraft Heinz fully and unconditionally guarantees the notes issued by our 100% owned operating subsidiary, Kraft Heinz Foods Company. See Note 18, Debt, for additional descriptions of these guarantees. None of our other subsidiaries guarantee such notes.

Set forth below are the condensed consolidating financial statements presenting the results of operations, financial position, and cash flows of Kraft Heinz (as parent guarantor), Kraft Heinz Foods Company (as subsidiary issuer of the notes), and the non-guarantor subsidiaries on a combined basis and eliminations necessary to arrive at the total reported information on a consolidated basis. This condensed consolidating financial information has been prepared and presented pursuant to the SEC Regulation S-X Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or being Registered.” This information is not intended to present the financial position, results of operations, and cash flows of the individual companies or groups of companies in accordance with U.S. GAAP. Eliminations represent adjustments to eliminate investments in subsidiaries and intercompany balances and transactions between or among the parent guarantor, subsidiary issuer, and the non-guarantor subsidiaries.

The Kraft Heinz Company

Condensed Consolidating Statements of Income

For the Year Ended December 28, 2019

(in millions)



	Parent Guarantor		Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—	$	16,852		$	8,588		$	(463	)	$	24,977
Cost of products sold	—		11,042			6,251			(463		)	16,830
Gross profit	—		5,810			2,337			—			8,147
Selling, general and administrative expenses, excluding impairment losses	—		798			2,380			—			3,178
Goodwill impairment losses	—		—			1,197			—			1,197
Intangible asset impairment losses	—		—			702			—			702
Selling, general and administrative expenses	—		798			4,279			—			5,077
Intercompany service fees and other recharges	—		3,377			(3,377		)	—			—
Operating income/(loss)	—		1,635			1,435			—			3,070
Interest expense	—		1,283			78			—			1,361
Other expense/(income)	—		(128		)	(824		)	—			(952		)
Income/(loss) before income taxes	—		480			2,181			—			2,661
Provision for/(benefit from) income taxes	—		1			727			—			728
Equity in earnings/(losses) of subsidiaries	1,935		1,456			—			(3,391		)	—
Net income/(loss)	1,935		1,935			1,454			(3,391		)	1,933
Net income/(loss) attributable to noncontrolling interest	—		—			(2		)	—			(2		)
Net income/(loss) excluding noncontrolling interest	$	1,935	$	1,935		$	1,456		$	(3,391	)	$	1,935

Comprehensive income/(loss) excluding noncontrolling interest	$	1,856	$	1,856		$	1,379		$	(3,235	)	$	1,856

The Kraft Heinz Company

Condensed Consolidating Statements of Income

For the Year Ended December 29, 2018

(in millions)



	Parent Guarantor			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	17,317		$	9,481		$	(530	)	$	26,268
Cost of products sold	—			11,290			6,587			(530		)	17,347
Gross profit	—			6,027			2,894			—			8,921
Selling, general and administrative expenses, excluding impairment losses	—			803			2,387			—			3,190
Goodwill impairment losses	—			—			7,008			—			7,008
Intangible asset impairment losses	—			—			8,928			—			8,928
Selling, general and administrative expenses	—			803			18,323			—			19,126
Intercompany service fees and other recharges	—			3,865			(3,865		)	—			—
Operating income/(loss)	—			1,359			(11,564		)	—			(10,205		)
Interest expense	—			1,212			72			—			1,284
Other expense/(income)	—			(359		)	191			—			(168		)
Income/(loss) before income taxes	—			506			(11,827		)	—			(11,321		)
Provision for/(benefit from) income taxes	—			112			(1,179		)	—			(1,067		)
Equity in earnings/(losses) of subsidiaries	(10,192		)	(10,586		)	—			20,778			—
Net income/(loss)	(10,192		)	(10,192		)	(10,648		)	20,778			(10,254		)
Net income/(loss) attributable to noncontrolling interest	—			—			(62		)	—			(62		)
Net income/(loss) excluding noncontrolling interest	$	(10,192	)	$	(10,192	)	$	(10,586	)	$	20,778		$	(10,192	)

Comprehensive income/(loss) excluding noncontrolling interest	$	(11,081	)	$	(11,081	)	$	(11,550	)	$	22,631		$	(11,081	)

The Kraft Heinz Company

Condensed Consolidating Statements of Income

For the Year Ended December 30, 2017

(in millions)



	Parent Guarantor		Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—	$	17,397		$	9,247		$	(568	)	$	26,076
Cost of products sold	—		11,147			6,464			(568		)	17,043
Gross profit	—		6,250			2,783			—			9,033
Selling, general and administrative expenses, excluding impairment losses	—		695			2,232			—			2,927
Goodwill impairment losses	—		—			—			—			—
Intangible asset impairment losses	—		—			49			—			49
Selling, general and administrative expenses	—		695			2,281			—			2,976
Intercompany service fees and other recharges	—		4,307			(4,307		)	—			—
Operating income/(loss)	—		1,248			4,809			—			6,057
Interest expense	—		1,189			45			—			1,234
Other expense/(income)	—		(535		)	(92		)	—			(627		)
Income/(loss) before income taxes	—		594			4,856			—			5,450
Provision for/(benefit from) income taxes	—		(243		)	(5,239		)	—			(5,482		)
Equity in earnings/(losses) of subsidiaries	10,941		10,104			—			(21,045		)	—
Net income/(loss)	10,941		10,941			10,095			(21,045		)	10,932
Net income/(loss) attributable to noncontrolling interest	—		—			(9		)	—			(9		)
Net income/(loss) excluding noncontrolling interest	$	10,941	$	10,941		$	10,104		$	(21,045	)	$	10,941

Comprehensive income/(loss) excluding noncontrolling interest	$	11,516	$	11,516		$	7,711		$	(19,227	)	$	11,516

The Kraft Heinz Company

Condensed Consolidating Balance Sheets

As of December 28, 2019

(in millions)



	Parent Guarantor		Subsidiary Issuer		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	—	$	1,404	$	875	$	—		$	2,279
Trade receivables, net	—		836		1,137		—			1,973
Receivables due from affiliates	—		633		793		(1,426		)	—
Income taxes receivable	—		714		160		(701		)	173
Inventories	—		1,832		889		—			2,721
Short-term lending due from affiliates	—		1,399		4,645		(6,044		)	—
Prepaid expenses	—		193		191		—			384
Other current assets	—		269		176		—			445
Assets held for sale	—		13		109		—			122
Total current assets	—		7,293		8,975		(8,171		)	8,097
Property, plant and equipment, net	—		4,420		2,635		—			7,055
Goodwill	—		11,066		24,480		—			35,546
Investments in subsidiaries	51,623		66,492		—		(118,115		)	—
Intangible assets, net	—		2,860		45,792		—			48,652
Long-term lending due from affiliates	—		207		2,000		(2,207		)	—
Other non-current assets	—		850		1,250		—			2,100
TOTAL ASSETS	$	51,623	$	93,188	$	85,132	$	(128,493	)	$	101,450
LIABILITIES AND EQUITY
Commercial paper and other short-term debt	$	—	$	5	$	1	$	—		$	6
Current portion of long-term debt	—		626		396		—			1,022
Short-term lending due to affiliates	—		4,645		1,399		(6,044		)	—
Trade payables	—		2,445		1,558		—			4,003
Payables due to affiliates	—		793		633		(1,426		)	—
Accrued marketing	—		249		398		—			647
Interest payable	—		372		12		—			384
Other current liabilities	—		266		2,239		(701		)	1,804
Liabilities held for sale	—		—		9		—			9
Total current liabilities	—		9,401		6,645		(8,171		)	7,875
Long-term debt	—		27,912		304		—			28,216
Long-term borrowings due to affiliates	—		2,000		207		(2,207		)	—
Deferred income taxes	—		1,307		10,571		—			11,878
Accrued postemployment costs	—		34		239		—			273
Other non-current liabilities	—		911		548		—			1,459
TOTAL LIABILITIES	—		41,565		18,514		(10,378		)	49,701
Redeemable noncontrolling interest	—		—		—		—			—
Total shareholders’ equity	51,623		51,623		66,492		(118,115		)	51,623
Noncontrolling interest	—		—		126		—			126
TOTAL EQUITY	51,623		51,623		66,618		(118,115		)	51,749
TOTAL LIABILITIES AND EQUITY	$	51,623	$	93,188	$	85,132	$	(128,493	)	$	101,450

The Kraft Heinz Company

Condensed Consolidating Balance Sheets

As of December 29, 2018

(in millions)



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

The Kraft Heinz Company

Condensed Consolidating Statements of Cash Flows

For the Year Ended December 28, 2019

(in millions)



	Parent Guarantor			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by/(used for) operating activities	$	1,953		$	3,308		$	244		$	(1,953	)	$	3,552
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	—			(365		)	(403		)	—			(768		)
Payments to acquire business, net of cash acquired	—			(199		)	—			—			(199		)
Net proceeds from/(payments on) intercompany lending activities	—			2,248			723			(2,971		)	—
Additional investments in subsidiaries	(20		)	(51		)	—			71			—
Proceeds from net investment hedges	—			604			(14		)	—			590
Proceeds from sale of business, net of cash disposed	—			—			1,875			—			1,875
Other investing activities, net	—			52			(39		)	—			13
Net cash provided by/(used for) investing activities	(20		)	2,289			2,142			(2,900		)	1,511
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of long-term debt	—			(4,568		)	(227		)	—			(4,795		)
Proceeds from issuance of long-term debt	—			2,969			(2		)	—			2,967
Debt prepayment and extinguishment costs	—			(99		)	—			—			(99		)
Proceeds from issuance of commercial paper	—			557			—			—			557
Repayments of commercial paper	—			(557		)	—			—			(557		)
Net proceeds from/(payments on) intercompany borrowing activities	—			(723		)	(2,248		)	2,971			—
Dividends paid	(1,953		)	(1,953		)	—			1,953			(1,953		)
Other intercompany capital stock transactions	—			20			51			(71		)	—
Other financing activities, net	20			(41		)	(12		)	—			(33		)
Net cash provided by/(used for) financing activities	(1,933		)	(4,395		)	(2,438		)	4,853			(3,913		)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	—			—			(6		)	—			(6		)
Cash, cash equivalents, and restricted cash:
Net increase/(decrease)	—			1,202			(58		)	—			1,144
Balance at beginning of period	—			202			934			—			1,136
Balance at end of period	$	—		$	1,404		$	876		$	—		$	2,280

The Kraft Heinz Company

Condensed Consolidating Statements of Cash Flows

For the Year Ended December 29, 2018

(in millions)



	Parent Guarantor			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by/(used for) operating activities	$	3,183		$	1,928		$	656		$	(3,193	)	$	2,574
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts on sold receivables	—			—			1,296			—			1,296
Capital expenditures	—			(339		)	(487		)	—			(826		)
Payments to acquire business, net of cash acquired	—			(245		)	(3		)	—			(248		)
Net proceeds from/(payments on) intercompany lending activities	—			1,626			206			(1,832		)	—
Additional investments in subsidiaries	—			(41		)	—			41			—
Proceeds from net investment hedges	—			24			—			—			24
Return of capital	7			—			—			(7		)	—
Proceeds from sale of business, net of cash disposed	—			—			18			—			18
Other investing activities, net	—			7			17			—			24
Net cash provided by/(used for) investing activities	7			1,032			1,047			(1,798		)	288
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of long-term debt	—			(2,550		)	(163		)	—			(2,713		)
Proceeds from issuance of long-term debt	—			2,990			—			—			2,990
Proceeds from issuance of commercial paper	—			2,784			—			—			2,784
Repayments of commercial paper	—			(3,213		)	—			—			(3,213		)
Net proceeds from/(payments on) intercompany borrowing activities	—			(206		)	(1,626		)	1,832			—
Dividends paid	(3,183		)	(3,183		)	(10		)	3,193			(3,183		)
Other intercompany capital stock transactions	—			(7		)	41			(34		)	—
Other financing activities, net	(7		)	(17		)	(4		)	—			(28		)
Net cash provided by/(used for) financing activities	(3,190		)	(3,402		)	(1,762		)	4,991			(3,363		)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	—			—			(132		)	—			(132		)
Cash, cash equivalents, and restricted cash:
Net increase/(decrease)	—			(442		)	(191		)	—			(633		)
Balance at beginning of period	—			644			1,125			—			1,769
Balance at end of period	$	—		$	202		$	934		$	—		$	1,136

The Kraft Heinz Company

Condensed Consolidating Statements of Cash Flows

For the Year Ended December 30, 2017

(in millions)



	Parent Guarantor			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by/(used for) operating activities	$	2,888		$	1,497		$	(996	)	$	(2,888	)	$	501
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts on sold receivables	—			—			2,286			—			2,286
Capital expenditures	—			(757		)	(437		)	—			(1,194		)
Net proceeds from/(payments on) intercompany lending activities	—			641			(542		)	(99		)	—
Additional investments in subsidiaries	(21		)	—			—			21			—
Proceeds from net investment hedges	—			6			—			—			6
Other investing activities, net	—			56			23			—			79
Net cash provided by/(used for) investing activities	(21		)	(54		)	1,330			(78		)	1,177
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of long-term debt	—			(2,628		)	(13		)	—			(2,641		)
Proceeds from issuance of long-term debt	—			1,496			—			—			1,496
Proceeds from issuance of commercial paper	—			6,043			—			—			6,043
Repayments of commercial paper	—			(6,249		)	—			—			(6,249		)
Net proceeds from/(payments on) intercompany borrowing activities	—			542			(641		)	99			—
Dividends paid-common stock	(2,888		)	(2,888		)	—			2,888			(2,888		)
Other intercompany capital stock transactions	—			21			—			(21		)	—
Other financing activities, net	21			(5		)	2			—			18
Net cash provided by/(used for) financing activities	(2,867		)	(3,668		)	(652		)	2,966			(4,221		)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	—			—			57			—			57
Cash, cash equivalents, and restricted cash:
Net increase/(decrease)	—			(2,225		)	(261		)	—			(2,486		)
Balance at beginning of period	—			2,869			1,386			—			4,255
Balance at end of period	$	—		$	644		$	1,125		$	—		$	1,769

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



	December 28, 2019
	Parent Guarantor		Subsidiary Issuer		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents	$	—	$	1,404	$	875	$	—	$	2,279
Restricted cash included in other current assets	—		—		1		—		1
Restricted cash included in other non-current assets	—		—		—		—		—
Cash, cash equivalents, and restricted cash	$	—	$	1,404	$	876	$	—	$	2,280



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