Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 28, 2020 | Apr. 25, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 28, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-37482 | |
Entity Registrant Name | Kraft Heinz Co | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-2078182 | |
Entity Address, Address Line One | One PPG Place, | |
Entity Address, City or Town | Pittsburgh, | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 15222 | |
City Area Code | 412 | |
Local Phone Number | 456-5700 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | KHC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,221,833,078 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001637459 | |
Current Fiscal Year End Date | --12-26 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 6,157 | $ 5,959 |
Cost of products sold | 4,299 | 3,948 |
Gross profit | 1,858 | 2,011 |
Selling, general and administrative expenses, excluding impairment losses | 862 | 829 |
Goodwill impairment losses | 226 | 620 |
Selling, general and administrative expenses | 1,088 | 1,449 |
Operating income/(loss) | 770 | 562 |
Interest expense | 310 | 321 |
Other expense/(income) | (81) | (380) |
Income/(loss) before income taxes | 541 | 621 |
Provision for/(benefit from) income taxes | 160 | 217 |
Net income/(loss) | 381 | 404 |
Net income/(loss) attributable to noncontrolling interest | 3 | (1) |
Net income/(loss) attributable to common shareholders | $ 378 | $ 405 |
Per share data applicable to common shareholders: | ||
Basic earnings/(loss) per share (in dollars per share) | $ 0.31 | $ 0.33 |
Diluted earnings/(loss) per share (in dollars per share) | $ 0.31 | $ 0.33 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income/(loss) | $ 381 | $ 404 |
Other comprehensive income/(loss), net of tax: | ||
Foreign currency translation adjustments | (790) | 219 |
Net deferred gains/(losses) on net investment hedges | 166 | (14) |
Amounts excluded from the effectiveness assessment of net investment hedges | 5 | 4 |
Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) | (6) | 2 |
Net deferred gains/(losses) on cash flow hedges | 101 | (16) |
Amounts excluded from the effectiveness assessment of cash flow hedges | 5 | 6 |
Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) | (10) | (8) |
Net postemployment benefit losses/(gains) reclassified to net income/(loss) | (25) | (58) |
Total other comprehensive income/(loss) | (554) | 135 |
Total comprehensive income/(loss) | (173) | 539 |
Comprehensive income/(loss) attributable to noncontrolling interest | (11) | 11 |
Comprehensive income/(loss) attributable to common shareholders | $ (162) | $ 528 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 28, 2020 | Dec. 28, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 5,403 | $ 2,279 |
Trade receivables, net of allowance of $43 at March 28, 2020 and $33 at December 28, 2019 | 2,321 | 1,973 |
Inventories | 2,831 | 2,721 |
Prepaid expenses | 485 | 384 |
Other current assets | 535 | 618 |
Assets held for sale | 133 | 122 |
Total current assets | 11,708 | 8,097 |
Property, plant and equipment, net | 6,813 | 7,055 |
Goodwill | 35,062 | 35,546 |
Intangible assets, net | 48,259 | 48,652 |
Other non-current assets | 2,231 | 2,100 |
TOTAL ASSETS | 104,073 | 101,450 |
LIABILITIES AND EQUITY | ||
Commercial paper and other short-term debt | 6 | 6 |
Current portion of long-term debt | 1,242 | 1,022 |
Trade payables | 3,956 | 4,003 |
Accrued marketing | 681 | 647 |
Interest payable | 374 | 384 |
Other current liabilities | 1,664 | 1,804 |
Liabilities held for sale | 11 | 9 |
Total current liabilities | 7,934 | 7,875 |
Long-term debt | 31,531 | 28,216 |
Deferred income taxes | 11,839 | 11,878 |
Accrued postemployment costs | 250 | 273 |
Other non-current liabilities | 1,395 | 1,459 |
TOTAL LIABILITIES | 52,949 | 49,701 |
Commitments and Contingencies (Note 16) | ||
Redeemable noncontrolling interest | 0 | 0 |
Equity: | ||
Common Stock, $0.01 par value (5,000 shares authorized; 1,225 shares issued and 1,222 shares outstanding at March 28, 2020; 1224 shares issued and 1,221 shares outstanding at December 28, 2019 | 12 | 12 |
Additional paid-in capital | 56,378 | 56,828 |
Retained earnings/(deficit) | (2,686) | (3,060) |
Accumulated other comprehensive income/(losses) | (2,426) | (1,886) |
Treasury stock, at cost (3 shares at March 28, 2020 and 3 shares at December 28, 2019) | (269) | (271) |
Total shareholders' equity | 51,009 | 51,623 |
Noncontrolling interest | 115 | 126 |
TOTAL EQUITY | 51,124 | 51,749 |
TOTAL LIABILITIES AND EQUITY | $ 104,073 | $ 101,450 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 28, 2020 | Dec. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss | $ 43 | $ 33 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 5,000 | 5,000 |
Common Stock, Shares, Issued | 1,225 | 1,224 |
Common Stock, Shares, Outstanding | 1,222 | 1,221 |
Treasury Stock, Common, Shares | 3 | 3 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings/(Deficit) | Accumulated Other Comprehensive Income/(Losses) | Treasury Stock, at Cost | Noncontrolling Interest |
Beginning balance at Dec. 29, 2018 | $ 51,775 | $ 12 | $ 58,723 | $ (4,853) | $ (1,943) | $ (282) | $ 118 |
Total Shareholders' Equity [Roll forward] | |||||||
Net income/(loss) excluding redeemable noncontrolling interest | 405 | 405 | |||||
Other comprehensive income/(loss) | 135 | 123 | 12 | ||||
Dividends declared-common stock ($0.40 per share) | (488) | (488) | |||||
Cumulative effect of accounting standards adopted in the period | 0 | (136) | 136 | ||||
Exercise of stock options, issuance of other stock awards, and other | 6 | 17 | (2) | (9) | |||
Ending balance at Mar. 30, 2019 | $ 51,833 | 12 | 58,252 | (4,586) | (1,684) | (291) | 130 |
Dividends Declared, Per Share [Abstract] | |||||||
Common stock dividends declared (in dollars per share) | $ 0.40 | ||||||
Beginning balance at Dec. 28, 2019 | $ 51,749 | 12 | 56,828 | (3,060) | (1,886) | (271) | 126 |
Total Shareholders' Equity [Roll forward] | |||||||
Net income/(loss) excluding redeemable noncontrolling interest | 381 | 378 | 3 | ||||
Other comprehensive income/(loss) | (554) | (540) | (14) | ||||
Dividends declared-common stock ($0.40 per share) | (492) | (492) | |||||
Exercise of stock options, issuance of other stock awards, and other | 40 | 42 | (4) | 2 | |||
Ending balance at Mar. 28, 2020 | $ 51,124 | $ 12 | $ 56,378 | $ (2,686) | $ (2,426) | $ (269) | $ 115 |
Dividends Declared, Per Share [Abstract] | |||||||
Common stock dividends declared (in dollars per share) | $ 0.40 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income/(loss) | $ 381 | $ 404 |
Adjustments to reconcile net income/(loss) to operating cash flows: | ||
Depreciation and amortization | 243 | 239 |
Amortization of postretirement benefit plans prior service costs/(credits) | (31) | (77) |
Equity award compensation expense | 33 | 9 |
Deferred income tax provision/(benefit) | (46) | (67) |
Postemployment benefit plan contributions | (9) | (13) |
Goodwill and intangible asset impairment losses | 226 | 620 |
Nonmonetary currency devaluation | 1 | 4 |
Loss/(gain) on sale of business | 2 | (246) |
Other items, net | 170 | (64) |
Changes in current assets and liabilities: | ||
Trade receivables | (423) | 116 |
Inventories | (226) | (488) |
Accounts payable | (2) | 64 |
Other current assets | (148) | 14 |
Other current liabilities | 41 | (211) |
Net cash provided by/(used for) operating activities | 212 | 304 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (131) | (249) |
Payments to acquire business, net of cash acquired | 0 | (200) |
Proceeds from sale of business, net of cash disposed | 0 | 640 |
Other investing activities, net | 9 | (14) |
Net cash provided by/(used for) investing activities | (122) | 177 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments of long-term debt | (407) | (1) |
Proceeds from revolving credit facility | 4,000 | 0 |
Proceeds from issuance of commercial paper | 0 | 377 |
Repayments of commercial paper | 0 | (377) |
Dividends paid | (488) | (488) |
Other financing activities, net | 0 | (15) |
Net cash provided by/(used for) financing activities | 3,105 | (504) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (71) | (11) |
Cash, cash equivalents, and restricted cash | ||
Net increase/(decrease) | 3,124 | (34) |
Balance at beginning of period | 2,280 | 1,136 |
Balance at end of period | $ 5,404 | $ 1,102 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 3 Months Ended |
Mar. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | Basis of Presentation Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted, in accordance with the rules of the Securities and Exchange Commission (the “SEC”). In management’s opinion, these interim financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary to fairly state our results for the periods presented. The condensed consolidated balance sheet data at December 28, 2019 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. These statements should be read in conjunction with our audited consolidated financial statements and related notes in our Annual Report on Form 10-K for the year ended December 28, 2019. The results for interim periods are not necessarily indicative of future or annual results. Principles of Consolidation The condensed consolidated financial statements include Kraft Heinz and all of our controlled subsidiaries. All intercompany transactions are eliminated. Reportable Segments In the first quarter of our fiscal year 2020, our internal reporting and reportable segments changed. We moved our Puerto Rico business from the Latin America zone to the United States zone to consolidate and streamline the management of our product categories and supply chain. We also combined our Europe, Middle East, and Africa (“EMEA”), Latin America, and Asia Pacific (“APAC”) zones to form the International zone as a result of certain previously announced organizational changes. Therefore, effective in the first quarter of 2020, we manage and report our operating results through three reportable segments defined by geographic region: United States, International, and Canada. We have reflected these changes in all historical periods presented. Considerations related to the novel coronavirus (“COVID-19”) In December 2019, an outbreak of illness caused by a novel coronavirus called COVID-19 was identified in Wuhan, China. On January 31, 2020, the United States declared a public health emergency related to the novel coronavirus and on March 11, 2020, the World Health Organization declared that the spread of the novel coronavirus qualified as a global pandemic. In an attempt to minimize transmission of COVID-19, significant social and economic restrictions have been imposed in the United States and abroad. These restrictions, while necessary and important for public health, have negative implications for portions of our business and the U.S. and global economy. In the preparation of these financial statements and related disclosures we have assessed the impact that COVID-19 has had on our estimates, assumptions, forecasts, and accounting policies and made additional disclosures, as necessary. As the COVID-19 situation is unprecedented and ever evolving, future events and effects related to the illness cannot be determined with precision and actual results could significantly differ from estimates or forecasts. See Note 8, Goodwill and Intangible Assets , Note 11, Postemployment Benefits , and Note 16, Commitments, Contingencies and Debt , for further discussion of COVID-19 considerations. Use of Estimates We prepare our condensed consolidated financial statements in accordance with 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 condensed consolidated financial statements. Reclassifications We made reclassifications to certain previously reported financial information to conform to our current period presentation. |
Significant Accounting Policies
Significant Accounting Policies (Notes) | 3 Months Ended |
Mar. 28, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies The following significant accounting policies were updated in the first quarter of our fiscal year 2020 to reflect material changes in our cash equivalents holdings as well as to reflect changes upon the adoption of Accounting Standards Update (“ASU”) 2018-15 related to accounting for implementation costs incurred in hosted cloud computing service arrangements. There were no other changes to our accounting policies from those disclosed in our Annual Report on Form 10-K for the year ended December 28, 2019. Cash and Cash Equivalents: Cash equivalents include demand 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 is classified in other current assets or other non-current assets, as applicable, on the consolidated balance sheets. 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 the straight-line method over the term of the hosting arrangement which the implementation costs relate to. Deferred implementation costs for these arrangements are included in prepaid expenses and amortized to selling, general and administrative expenses (“SG&A”). 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. |
New Accounting Standards (Notes
New Accounting Standards (Notes) | 3 Months Ended |
Mar. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Standards | New Accounting Standards Accounting Standards Adopted in the Current Year Measurement of Current Expected Credit Losses: In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13 to update the methodology used to measure current expected credit losses (“CECL”). This ASU applies to financial assets measured at amortized cost, including loans, held-to-maturity debt securities, net investments in leases, and trade accounts receivable as well as certain off-balance sheet credit exposures, such as loan commitments. This ASU replaces the current incurred loss impairment methodology with a methodology to reflect CECL and requires consideration of a broader range of reasonable and supportable information to explain credit loss estimates. The guidance must be adopted using a modified retrospective transition method through a cumulative-effect adjustment to retained earnings/(deficit) in the period of adoption. This ASU became effective in the first quarter of our fiscal year 2020. We adopted this ASU and guidance on the first day of our fiscal year 2020 and, based on the insignificant impact of this ASU on our financial statements, a cumulative-effect adjustment to retained earnings/(deficit) was not deemed necessary. Fair Value Measurement Disclosures: In August 2018, the FASB issued ASU 2018-13 related to fair value measurement disclosures. This ASU removes the requirement to disclose the amount of and reasons for transfers between Levels 1 and 2 of the fair value hierarchy, the policy for determining that a transfer has occurred, and valuation processes for Level 3 fair value measurements. Additionally, this ASU modifies the disclosures related to the measurement uncertainty for recurring Level 3 fair value measurements (by removing the requirement to disclose sensitivity to future changes) and the timing of liquidation of investee assets (by removing the timing requirement in certain instances). The guidance also requires new disclosures for Level 3 financial assets and liabilities, including the amount and location of unrealized gains and losses recognized in other comprehensive income/(loss) and additional information related to significant unobservable inputs used in determining Level 3 fair value measurements. This ASU became effective beginning in the first quarter of our fiscal year 2020. Early adoption of the guidance in whole was permitted. Alternatively, companies could have early adopted the portions of the guidance that removed or modified disclosures and delayed adoption of the additional disclosures until their effective date. Certain of the amendments in this ASU must be applied prospectively upon adoption, while other amendments must be applied retrospectively upon adoption. We elected to early adopt the provisions related to removing disclosures in the fourth quarter of our fiscal year 2018 on a retrospective basis. Accordingly, we removed certain disclosures from Note 12, Postemployment Benefits , and Note 13, Financial Instruments , in our Annual Report on Form 10-K for the year ended December 29, 2018. There was no other impact to our financial statement disclosures as a result of early adopting the provisions related to removing disclosures. Implementation Costs Incurred in Hosted Cloud Computing Service Arrangements: In August 2018, the FASB issued ASU 2018-15 related to accounting for implementation costs incurred in hosted cloud computing service arrangements. Under the new guidance, implementation costs incurred in a hosting arrangement that is a service contract should be expensed or deferred based on the nature of the costs and the project stage during which such costs are incurred. If the implementation costs qualify for deferral, they must be amortized over the term of the hosting arrangement and assessed for impairment. Additionally, the ASU requires disclosure of the nature of any hosted cloud computing service arrangement and requires financial statement presentation of the deferred costs be consistent with fees incurred under the hosting arrangement. This ASU became effective in the first quarter of our fiscal year 2020. We adopted this ASU in the first quarter of our fiscal year 2020 using a prospective transition method. The adoption of this ASU did not have a significant impact on our financial statements and related disclosures. See Note 2, Significant Accounting Policies , for our policy on accounting for hosted cloud computing service arrangements. Accounting Standards Not Yet Adopted Disclosure Requirements for Certain Employer-Sponsored Benefit Plans: In August 2018, the FASB issued ASU 2018-14 related to the disclosure requirements for employers that sponsor defined benefit pension and other postretirement benefit plans. The guidance requires sponsors of these plans to provide additional disclosures, including weighted-average interest rates used in the company’s cash balance plans and a narrative description of reasons for any significant gains or losses impacting the benefit obligation for the period. Additionally, this guidance eliminates certain previous disclosure requirements. This ASU will be effective for fiscal years ending after December 15, 2020, and our Annual Report on Form 10-K for the year ended December 26, 2020 will reflect the adoption of this ASU. This guidance must be applied on a retrospective basis to all periods presented. Simplifying the Accounting for Income Taxes: In December 2019, the FASB issued ASU 2019-12 to simplify the accounting in ASC 740, Income Taxes. This guidance removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC 740. This ASU will be effective beginning in the first quarter of our fiscal year 2021. Early adoption is permitted. Certain amendments in this update must be applied on a prospective basis, certain amendments must be applied on a retrospective basis, and certain amendments must be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings/(deficit) in the period of adoption. We are currently evaluating the impact this ASU will have on our financial statements and related disclosures as well as the timing of adoption. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Notes) | 3 Months Ended |
Mar. 28, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions Primal Acquisition: On January 3, 2019 (the “Primal Acquisition Date”), we acquired 100% of the outstanding equity interests in Primal Nutrition, LLC (“Primal Nutrition”) (the “Primal Acquisition”), a better-for-you brand primarily focused on condiments, sauces, and dressings, with growing product lines in healthy snacks and other categories. The Primal Kitchen brand holds leading positions in the e-commerce and natural channels. We have not included unaudited pro forma results as it would not yield significantly different results. The Primal Acquisition was accounted for under the acquisition method of accounting for business combinations. The total cash consideration paid for Primal Nutrition was $201 million. We utilized estimated fair values at the Primal Acquisition Date to allocate the total consideration exchanged to the net tangible and intangible assets acquired and liabilities assumed. Such allocation for the Primal Acquisition was final as of September 28, 2019. The Primal Acquisition resulted in $124 million of tax deductible goodwill, which was allocated to the United States segment. See Note 4, Acquisitions and Divestitures , to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 28, 2019 for the final purchase price allocation, valuation methodology, and other information related to the Primal Acquisition. Deal Costs: Related to our acquisitions, we incurred aggregate deal costs of $2 million for the three months ended March 30, 2019. We recognized these deal costs in SG&A. There were no deal costs related to acquisitions for the three months ended March 28, 2020. Divestitures Potential Dispositions: As of March 28, 2020, we were in negotiations with prospective third-party buyers for the sale of two businesses in our International segment. We expect these transactions to close in 2020. Related to the first transaction, we recorded an estimated loss of $71 million within other expense/(income) in the fourth quarter of 2019 and classified the related assets and liabilities as held for sale on the condensed consolidated balance sheets at March 28, 2020 and December 28, 2019. Related to the second transaction, we recorded an estimated loss of $3 million within other expense/(income) in the first quarter of 2020 and classified the related assets and liabilities as held for sale on the condensed consolidated balance sheet at March 28, 2020. See Note 4, Acquisitions and Divestitures , to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 28, 2019 for additional information related to the first transaction. Heinz India Transaction: In October 2018, we entered into a definitive agreement with two third-parties, Zydus Wellness Limited and Cadila Healthcare Limited (collectively, the “Buyers”), to sell 100% of our equity interests in Heinz India Private Limited (“Heinz India”) for approximately 46 billion Indian rupees (approximately $655 million at January 30, 2019) (the “Heinz India Transaction”). In connection with the Heinz India Transaction, we transferred to the Buyers, among other assets and operations, our global intellectual property rights to several brands, including Complan , Glucon-D , Nycil , and Sampriti . Our core brands (i.e., Heinz and Kraft ) were not transferred. The Heinz India Transaction closed on January 30, 2019 (the “Heinz India Closing Date”). Related to the Heinz India Transaction, we recognized a pre-tax gain in other expense/(income) of $249 million in 2019, including $246 million in the first quarter and $3 million in the third quarter. Additionally, in the first quarter of 2020, we recognized a gain of approximately $1 million related to local India tax recoveries. In connection with the Heinz India Transaction we agreed to indemnify the Buyers from and against any tax losses for any taxable period prior to the Heinz India Closing Date, including taxes for which we are liable as a result of any transaction that occurred on or before such date. We recorded tax indemnity liabilities related to the Heinz India Transaction totaling approximately $48 million as of the Heinz India Closing Date. Future changes to the fair value of these tax indemnity liabilities will continue to impact other expense/(income) throughout the life of the exposures as a component of the gain on sale for the Heinz India Transaction. See Note 4, Acquisitions and Divestitures , to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 28, 2019 for additional details related to the gain on sale and tax indemnity associated with the Heinz India Transaction. Canada Natural Cheese Transaction: In November 2018, we entered into a definitive agreement with a third-party, Parmalat SpA (“Parmalat”), to sell certain assets in our natural cheese business in Canada for approximately 1.6 billion Canadian dollars (approximately $1.2 billion at July 2, 2019) (the “Canada Natural Cheese Transaction”). In connection with the Canada Natural Cheese Transaction, we transferred certain assets to Parmalat, including the intellectual property rights to Cracker Barrel in Canada and P’Tit Quebec globally. The Canada Natural Cheese Transaction closed on July 2, 2019. See Note 4, Acquisitions and Divestitures , to the consolidated financial statements in our Annual Form on 10-K for the year ended December 28, 2019 for additional information related to the Canada Natural Cheese Transaction. Deal Costs: Related to our divestitures, we incurred aggregate deal costs of $6 million for the three months ended March 30, 2019. We recognized these deal costs in SG&A. There were no deal costs related to divestitures for the three months ended March 28, 2020. Held for Sale Our assets and liabilities held for sale, by major class, were (in millions): March 28, 2020 December 28, 2019 ASSETS Cash and cash equivalents $ 26 $ 27 Inventories 28 21 Property, plant and equipment, net 33 25 Intangible assets, net 21 23 Other 25 26 Total assets held for sale $ 133 $ 122 LIABILITIES Trade payables $ 3 $ 3 Other 8 6 Total liabilities held for sale $ 11 $ 9 The balances held for sale at March 28, 2020 and December 28, 2019 primarily related to businesses in our International segment, as well as certain manufacturing equipment and land use rights across the globe. |
Restructuring Activities (Notes
Restructuring Activities (Notes) | 3 Months Ended |
Mar. 28, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Activities As part of our restructuring activities, we incur expenses that qualify as exit and disposal costs under U.S. GAAP. These include severance and employee benefit costs and other exit costs. Severance and employee benefit costs primarily relate to cash severance, non-cash severance, including accelerated equity award compensation expense, and pension and other termination benefits. Other exit costs primarily relate to lease and contract terminations. We also incur expenses that are an integral component of, and directly attributable to, our restructuring activities, which do not qualify as exit and disposal costs under U.S. GAAP. These include asset-related costs and other implementation costs. Asset-related costs primarily relate to accelerated depreciation and asset impairment charges. Other implementation costs primarily relate to start-up costs of new facilities, professional fees, asset relocation costs, costs to exit facilities, and costs associated with restructuring benefit plans. Employee severance and other termination benefit packages are primarily determined based on established benefit arrangements, local statutory requirements, or historical benefit practices. We recognize the contractual component of these benefits when payment is probable and estimable; additional elements of severance and termination benefits associated with non-recurring benefits are recognized ratably over each employee’s required future service period. Charges for accelerated depreciation are recognized on long-lived assets that will be taken out of service before the end of their normal service, in which case depreciation estimates are revised to reflect the use of the asset over its shortened useful life. Asset impairments establish a new fair value basis for assets held for disposal or sale, and those assets are written down to expected net realizable value if carrying value exceeds fair value. All other costs are recognized as incurred. Restructuring Activities: We have restructuring programs globally, which are focused primarily on workforce reduction and factory closure and consolidation. For the three months ended March 28, 2020, we eliminated approximately 80 positions outside of the U.S. related to these programs. As of March 28, 2020, we expect to eliminate approximately 250 additional positions outside the U.S. related to these programs primarily due to the formation of the International zone. Total restructuring expenses during the three months ended March 28, 2020 were insignificant and included $3 million of credits in severance and employee benefit costs, $2 million of other implementation costs, and $1 million of other exit costs. Restructuring expenses totaled $27 million for the three months ended March 30, 2019. Our net liability balance for restructuring project costs that qualify as exit and disposal costs under U.S. GAAP (i.e., severance and employee benefit costs and other exit costs) was (in millions): Severance and Employee Benefit Costs Other Exit Costs Total Balance at December 28, 2019 $ 22 $ 24 $ 46 Charges/(credits) (3) 1 (2) Cash payments (7) (1) (8) Balance at March 28, 2020 $ 12 $ 24 $ 36 We expect the majority of the liability for severance and employee benefit costs as of March 28, 2020 to be paid by the end of 2020. The liability for other exit costs primarily relates to lease obligations. The cash impact of these obligations will continue for the duration of the lease terms, which expire between 2020 and 2026. Total Expenses: Total expense/(income) related to restructuring activities, by income statement caption, were (in millions): For the Three Months Ended March 28, 2020 March 30, 2019 Severance and employee benefit costs - COGS $ 1 $ — Severance and employee benefit costs - SG&A (4) 1 Asset-related costs - COGS — 2 Asset-related costs - SG&A — 7 Other costs - COGS — 7 Other costs - SG&A 3 10 $ — $ 27 We do not include our restructuring activities within Segment Adjusted EBITDA (as defined in Note 18, Segment Reporting ). The pre-tax impact of allocating such expenses to our segments would have been (in millions): For the Three Months Ended March 28, 2020 March 30, 2019 United States $ — $ 19 International (1) 4 Canada 1 2 General corporate expenses — 2 $ — $ 27 |
Restricted Cash (Notes)
Restricted Cash (Notes) | 3 Months Ended |
Mar. 28, 2020 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Restricted Cash | Restricted Cash The following table provides a reconciliation of cash and cash equivalents, as reported on our condensed consolidated balance sheets, to cash, cash equivalents, and restricted cash, as reported on our condensed consolidated statements of cash flows (in millions): March 28, 2020 December 28, 2019 Cash and cash equivalents $ 5,403 $ 2,279 Restricted cash included in other current assets 1 1 Cash, cash equivalents, and restricted cash $ 5,404 $ 2,280 The increase in cash and cash equivalents at March 28, 2020 compared to December 28, 2019 was primarily related to the $4.0 billion draw on our senior unsecured revolving credit facility, partially offset by dividends paid and long-term debt repayments. See Note 16, Commitments, Contingencies and Debt , for additional information on our borrowing arrangements and debt repayments. At March 28, 2020 and December 28, 2019, cash and cash equivalents excluded amounts classified as held for sale. See Note 4, Acquisitions and Divestitures , for additional information. |
Inventories (Notes)
Inventories (Notes) | 3 Months Ended |
Mar. 28, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in millions): March 28, 2020 December 28, 2019 Packaging and ingredients $ 666 $ 511 Work in process 377 364 Finished products 1,788 1,846 Inventories $ 2,831 $ 2,721 At March 28, 2020 and December 28, 2019, inventories excluded amounts classified as held for sale. See Note 4, Acquisitions and Divestitures , for additional information. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Notes) | 3 Months Ended |
Mar. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill: Changes in the carrying amount of goodwill, by segment, were (in millions): United States International Canada Total Balance at December 28, 2019 $ 29,647 $ 3,355 $ 2,544 $ 35,546 Impairment losses — (226) — (226) Translation adjustments and other — (94) (164) (258) Balance at March 28, 2020 $ 29,647 $ 3,035 $ 2,380 $ 35,062 In the first quarter of our fiscal year 2020, our internal reporting and reportable segments changed. We moved our Puerto Rico business from the Latin America zone to the United States zone to consolidate and streamline the management of our product categories and supply chain. We also combined our EMEA, Latin America, and APAC zones to form the International zone as a result of certain previously announced organizational changes. Therefore, effective in the first quarter of 2020, we manage and report our operating results through three reportable segments defined by geographic region: United States, International, and Canada. We have reflected these changes in all historical periods presented. Accordingly, the segment goodwill balances at December 28, 2019 reflect an increase of $46 million in the United States and a corresponding decrease in International. The reorganization of our internal reporting and reportable segments changed the composition of certain of our reporting units: (i) Benelux was separated from the historical Northern Europe and Benelux reporting unit and combined with the historical Continental Europe reporting unit, creating two new reporting units, Northern Europe and Continental Europe; (ii) our historical Greater China reporting unit was combined with our historical Southeast Asia and India reporting units, creating the new Asia reporting unit; (iii) our historical Northeast Asia reporting unit was combined with our historical Australia and New Zealand reporting unit to form a single reporting unit called Australia, New Zealand, and Japan ("ANJ"); (iv) our historical Latin America Exports reporting unit (excluding Puerto Rico) was combined with our historical Brazil and Mexico reporting units to form a single reporting unit called Latin America ("LATAM"); and (v) Puerto Rico, which was previously included in our historical Latin America Exports reporting unit became its own reporting unit included in the United States reportable segment. 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 December 29, 2019, which was the first day of our fiscal year 2020. There were five 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 Latin America Exports, Northeast Asia, Northern Europe and Benelux, Continental Europe, and Greater China. The remaining reporting units affected by the reassignment of assets and liabilities did not maintain a goodwill balance as of our pre-reorganization impairment test date. Two of the affected reporting units, Latin America Exports and Northeast Asia, were tested for impairment as of December 28, 2019, as part of our fourth quarter 2019 interim impairment testing. Following the impairment test, the goodwill carrying amount of our Latin America Exports reporting unit was approximately $195 million and the goodwill carrying amount of our Northeast Asia reporting unit was approximately $83 million as of December 28, 2019. These carrying amounts were determined to equal the carrying amounts on December 29, 2019, the day of our pre-reorganization impairment test, for the Latin America Exports and Northeast Asia reporting units. Additionally, 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 December 29, 2019 of the three reporting units noted above that were not tested as part of our fourth quarter 2019 interim impairment test (Northern Europe and Benelux, Continental Europe, and Greater China) and concluded that no additional impairment charge was required. The goodwill carrying amount of our Northern Europe and Benelux reporting unit was approximately $2.1 billion and its fair value was between 20-50% over carrying amount. The goodwill carrying amount of our Continental Europe reporting unit was approximately $567 million and the goodwill carrying amount of our Greater China reporting unit was approximately $321 million and each had a fair value over carrying amount in excess of 50%. 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, 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. We determined the factors contributing to the impairment loss were the result of circumstances described below. We recognized a non-cash impairment loss of $83 million in our ANJ reporting unit within our International segment. This impairment was driven by the reporting unit reorganization discussed above. The combination of Australia and New Zealand, which was fully impaired in the fourth quarter of 2019, with Northeast Asia, created a new reporting unit with a fair value below carrying amount upon transition. The impairment of the ANJ reporting unit represents all of the goodwill of that reporting unit. We recognized a non-cash impairment loss of $143 million in our LATAM reporting unit within our International segment. This impairment was driven by the reporting unit reorganization discussed above. The combination of Mexico and Brazil, which were fully impaired in 2019, with Latin America Exports, which was partially impaired in 2019, created a new reporting unit with a fair value below carrying amount upon transition. The impairment of the LATAM reporting unit represents all of the goodwill of that reporting unit. 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. The goodwill carrying amount of our Puerto Rico reporting unit was approximately $58 million and its fair value was less than 10% over carrying amount, the goodwill carrying amount of our Northern Europe reporting unit was approximately $1.7 billion and its fair value was 20-50% over carrying amount, and the goodwill carrying amount of our Continental Europe reporting unit was approximately $920 million and the goodwill carrying amount of our Asia reporting unit was approximately $321 million and each had a fair value over carrying amount that was in excess of 50%. As of March 28, 2020, we maintain 15 reporting units, 10 of which comprise our goodwill balance. These 10 reporting units had an aggregate carrying amount of $35.1 billion at March 28, 2020. For these 10 reporting units, as of their latest impairment testing date, seven reporting units had 10% or less fair value over carrying amount, one reporting unit had between 20-50% fair value over carrying amount, and two reporting units had over 50% fair value over carrying amount. We test our reporting units for impairment annually as of the first day of our second quarter, or more frequently if events or circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In connection with the preparation of our first quarter 2019 financial statements, we concluded that it was more likely than not that the fair values of three of our pre-reorganization reporting units (EMEA East, Brazil and Latin America Exports) were below their carrying amounts. As such, we performed an interim impairment test on these reporting units as of March 30, 2019. As a result of our interim impairment test, we recognized a non-cash impairment loss of $620 million in SG&A in the first quarter of 2019. We recorded a $286 million impairment loss in our EMEA East reporting unit, a $205 million impairment loss in our Brazil reporting unit, and a $129 million impairment loss in our Latin America Exports reporting unit. The impairment of the Brazil reporting unit represented all of the goodwill of that reporting unit. We determined the factors contributing to the impairment loss were the result of circumstances that arose during the first quarter of 2019. See Note 9, Goodwill and Intangible Assets , in our Annual Report on Form 10-K for the year ended December 28, 2019 for additional information on these impairment losses. These reporting units are part of our International segment as discussed above. Accumulated impairment losses to goodwill were $8.4 billion at March 28, 2020. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions, estimates, and market factors. Estimating the fair value of individual reporting units requires us to make assumptions and estimates regarding our future plans, as well as industry, economic, and regulatory conditions. These assumptions and estimates include estimated future annual net cash flows, income tax rates, discount rates, growth rates, and other market factors. If current expectations of future growth rates and margins are not met, if market factors outside of our control, such as discount rates or any factors that could be affected by COVID-19, change, or if management’s expectations or plans otherwise change, including as a result of updates to our global five-year operating plan, then one or more of our reporting units might become impaired in the future. We are currently actively reviewing the enterprise strategy for the Company. As part of this strategic review, we expect to develop updates to the five-year operating plan in 2020, which could impact the allocation of investments among reporting units and impact growth expectations and fair value estimates. Additionally, as a result of this strategic review process, we could decide to divest certain non-strategic assets. As a result, the ongoing development of the enterprise strategy and underlying detailed business plans could lead to the impairment of one or more of our reporting units in the future. During the first quarter of 2020, primarily in March, the COVID-19 pandemic has produced a short-term beneficial financial impact for our consolidated results. Retail sales have increased due to higher than anticipated consumer demand for our products. The foodservice channel however, has experienced a negative impact from shelter in place mandates limiting access to away from home establishments. A number of factors could result in future impairment of our foodservice reporting units, including but not limited to: continued mandates around closures of dining rooms in restaurants, distancing of people within an establishment resulting in fewer customers, the total number of restaurant closures, forthcoming changes in consumer preferences or regulatory requirements over product formats (e.g., table top packaging vs single serve packaging), and consumer trends of dining-in versus dining-out. Our U.S. Foodservice and Canada Foodservice reporting units are the most exposed of our reporting units to the long-term impacts to away from home establishments. These two reporting units were identified during our most recent annual impairment test as both having excess fair value over carrying amount of less than 10%, with an aggregate goodwill carrying amount of approximately $4.3 billion. Additionally, in assessing whether the impacts of COVID-19 resulted in a triggering event for one or both of these reporting units, we assessed potential scenarios for the future recovery and growth of away from home establishments as well as the impacts of declining interest rates and other valuation assumptions. We concluded that, due to the temporary nature of the shelter in place orders, the most probable expectation as of March 28, 2020, was a return to a normal level of operations within approximately two years. Based on these assumptions and analysis, we determined there was no interim triggering event as it was not more likely than not that the fair value of these reporting units is less than their carrying amounts. Given the evolving nature and uncertainty driven by the COVID-19 pandemic, we will continue to evaluate the impact on our reporting units as changes to these assumptions could result in future impairments. Our reporting units that were impaired in 2019 and 2020 were written down to their respective fair values resulting in zero excess fair value over carrying amount as of the applicable impairment test dates. Accordingly, these and other individual reporting units that have 20% or less excess fair value over carrying amount as of their latest impairment test date have a heightened risk of future impairments if any assumptions, estimates, or market factors change in the future. Although the remaining reporting units have more than 20% excess fair value over carrying amount as of their latest impairment test date, these amounts are also associated with the 2013 Heinz acquisition and the 2015 Merger and are recorded on the balance sheet at their estimated acquisition date fair values. Therefore, if any 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 28, 2019 $ 43,400 Translation adjustments (280) Balance at March 28, 2020 $ 43,120 At March 28, 2020 and December 28, 2019, indefinite-lived intangible assets excluded amounts classified as held for sale. See Note 4, Acquisitions and Divestitures , for additional information on amounts held for sale. Our indefinite-lived intangible asset balance primarily consists of a number of individual brands, which had an aggregate carrying amount of $43.1 billion at March 28, 2020. We test our brands for impairment annually as of the first day of our second quarter, or more frequently if events or circumstances indicate it is more likely than not that the fair value of a brand is less than its carrying amount. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions, estimates, and market factors. Estimating the fair value of individual brands requires us to make assumptions and estimates regarding our future plans, as well as industry, economic, and regulatory conditions. These assumptions and estimates include estimated future annual net cash flows, income tax considerations, discount rates, growth rates, royalty rates, contributory asset charges, and other market factors. If current expectations of future growth rates and margins are not met, if market factors outside of our control, such as discount rates or any factors that could be affected by COVID-19, change, or if management’s expectations or plans otherwise change, including as a result of updates to our global five-year operating plan, then one or more of our brands might become impaired in the future. We are currently actively reviewing the enterprise strategy for the Company. As part of this strategic review, we expect to develop updates to the five-year operating plan in 2020, which could impact the allocation of investments among brands and impact growth expectations and fair value estimates. Additionally, as a result of this strategic review process, we could decide to divest certain non-strategic assets. As a result, the ongoing development of the enterprise strategy and underlying detailed business plans could lead to the impairment of one or more of our brands in the future. As we consider the impact of the COVID-19 pandemic with regard to our indefinite-lived intangible assets, a number of factors could have a future impact on our brands, including changes in consumer and consumption trends in both the short- and long-term, the extent of continued government mandates to shelter in place, total number of restaurant closures, economic declines, and reductions in consumer discretionary income. We have seen an increase in our retail business in the short-term that has more than offset declines in our foodservice business over the same period. Our brands are generally common across both the retail and foodservice businesses and these brands are subject to a similar mix of positive and negative factors. Given the evolving nature and uncertainty driven by COVID-19 pandemic, we will continue to evaluate the impact on our brands. None of our brands were impaired in the first quarter of 2020. Our brands that were impaired in 2019 were written down to their respective fair values resulting in zero excess fair value over carrying amount as of the applicable impairment test dates. Accordingly, these and other individual brands that have 20% or less excess fair value over carrying amount as of their latest impairment test date have a heightened risk of future impairments if any assumptions, estimates, or market factors change in the future. Although the remaining brands have more than 20% excess fair value over carrying amount as of their latest impairment test date, these amounts are also associated with the 2013 Heinz acquisition and the 2015 Merger and are recorded on the balance sheet at their estimated acquisition date fair values. Therefore, if any 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): March 28, 2020 December 28, 2019 Gross Accumulated Net Gross Accumulated Net Trademarks $ 2,419 $ (492) $ 1,927 $ 2,443 $ (469) $ 1,974 Customer-related assets 4,075 (874) 3,201 4,113 (845) 3,268 Other 14 (3) 11 14 (4) 10 $ 6,508 $ (1,369) $ 5,139 $ 6,570 $ (1,318) $ 5,252 Amortization expense for definite-lived intangible assets was $68 million for the three months ended March 28, 2020 and $76 million for the three months ended March 30, 2019. Aside from amortization expense, the change in definite-lived intangible assets from December 28, 2019 to March 28, 2020 primarily reflects foreign currency. At March 28, 2020 and December 28, 2019, definite-lived intangible assets excluded amounts classified as held for sale. See Note 4, Acquisitions and Divestitures , for additional information on amounts held for sale. We estimate that amortization expense related to definite-lived intangible assets will be approximately $272 million for the next 12 months and approximately $272 million for each of the four years thereafter. |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Mar. 28, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes 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, 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 quarterly income tax provision is determined based on our estimated full year effective tax rate, adjusted for tax attributable to infrequent or unusual items, which are recognized on a discrete period basis in the income tax provision for the period in which they occur. Our effective tax rate was 29.6% for the three months ended March 28, 2020 compared to 34.9% for the three months ended March 30, 2019. The decrease in our effective tax rate was primarily driven by a decrease in unfavorable net discrete items. Current year unfavorable impacts from net discrete items were primarily related to non-deductible goodwill impairments. Prior year unfavorable impacts from net discrete items were primarily related to non-deductible goodwill impairments, partially offset by the favorable impact of changes in estimates of certain 2018 U.S. income and deductions. |
Employees' Stock Incentive Plan
Employees' Stock Incentive Plans (Notes) | 3 Months Ended |
Mar. 28, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Employees' Stock Incentive Plans | Employees’ Stock Incentive Plans Stock Options: Our stock option activity and related information was: Number of Stock Options Weighted Average Exercise Price Outstanding at December 28, 2019 17,638,500 $ 41.22 Forfeited (321,960) 62.91 Exercised (383,295) 24.78 Outstanding at March 28, 2020 16,933,245 41.16 The aggregate intrinsic value of stock options exercised during the period was $2 million for the three months ended March 28, 2020 . Restricted Stock Units: Our restricted stock unit (“RSU”) activity and related information was: Number of Units Weighted Average Grant Date Fair Value Outstanding at December 28, 2019 9,395,909 $ 33.51 Granted 1,488,962 26.07 Forfeited (356,717) 34.49 Vested (52,786) 86.70 Outstanding at March 28, 2020 10,475,368 32.17 The aggregate fair value of RSUs that vested during the period was $2 million for the three months ended March 28, 2020. Performance Share Units: Our performance share unit (“PSU”) activity and related information was: Number of Units Weighted Average Grant Date Fair Value Outstanding at December 28, 2019 6,813,659 $ 36.03 Granted 191,792 22.56 Forfeited (358,356) 56.63 Outstanding at March 28, 2020 6,647,095 34.53 |
Postemployment Benefits (Notes)
Postemployment Benefits (Notes) | 3 Months Ended |
Mar. 28, 2020 | |
Retirement Benefits [Abstract] | |
Postemployment Benefits | Postemployment Benefits See our consolidated financial statements and related notes in our Annual Report on Form 10-K for the year ended December 28, 2019 for additional information on our postemployment related accounting policies. Pension Plans Components of Net Pension Cost/(Benefit): Net pension cost/(benefit) consisted of the following (in millions): For the Three Months Ended U.S. Plans Non-U.S. Plans March 28, 2020 March 30, 2019 March 28, 2020 March 30, 2019 Service cost $ 2 $ 2 $ 4 $ 4 Interest cost 33 41 9 13 Expected return on plan assets (52) (57) (26) (37) Net pension cost/(benefit) $ (17) $ (14) $ (13) $ (20) We present all non-service cost components of net pension cost/(benefit) within other expense/(income) on our condensed consolidated statements of income. Employer Contributions: Related to our non-U.S. pension plans, we contributed $5 million during the three months ended March 28, 2020 and plan to make further contributions of approximately $14 million during the remainder of 2020. Related to our U.S. pension plans, we did not contribute during the three months ended March 28, 2020 and do not plan to make contributions during the remainder of 2020. Estimated future contributions take into consideration current economic conditions, including impacts of COVID-19, which at this time are expected to have minimal impact on expected contributions for the remainder of 2020. Our actual contributions and plans may change due to many factors, including changes in tax, employee benefit, or other laws and regulations, tax deductibility, significant differences between expected and actual pension asset performance or interest rates, or other factors. Postretirement Plans Components of Net Postretirement Cost/(Benefit): Net postretirement cost/(benefit) consisted of the following (in millions): For the Three Months Ended March 28, 2020 March 30, 2019 Service cost $ 2 $ 1 Interest cost 8 12 Expected return on plan assets (12) (13) Amortization of prior service costs/(credits) (31) (77) Amortization of unrecognized losses/(gains) (3) (2) Net postretirement cost/(benefit) $ (36) $ (79) We present all non-service cost components of net postretirement cost/(benefit) within other expense/(income) on our condensed consolidated statements of income. Employer Contributions: During the three months ended March 28, 2020, we contributed $4 million to our postretirement benefit plans. We plan to make further contributions of approximately $11 million to our postretirement benefit plans during the remainder of 2020. Estimated future contributions take into consideration current economic conditions, including impacts of COVID-19, which at this time are expected to have minimal impact on expected contributions for the remainder of 2020. Our actual contributions and plans may change due to many factors, including changes in tax, employee benefit, or other laws and regulations, tax deductibility, significant differences between expected and actual postretirement plan asset performance or interest rates, or other factors. |
Financial Instruments (Notes)
Financial Instruments (Notes) | 3 Months Ended |
Mar. 28, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments See our consolidated financial statements and related notes in our Annual Report on Form 10-K for the year ended December 28, 2019 for additional information on our overall risk management strategies, our use of derivatives, and our related accounting policies. Derivative Volume: The notional values of our outstanding derivative instruments were (in millions): Notional Amount March 28, 2020 December 28, 2019 Commodity contracts $ 772 $ 475 Foreign exchange contracts 2,495 3,045 Cross-currency contracts 4,035 4,035 Fair Value of Derivative Instruments: The fair values and the levels within the fair value hierarchy of derivative instruments recorded on the condensed consolidated balance sheets were (in millions): March 28, 2020 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) $ — $ — $ 58 $ 4 $ 58 $ 4 Cross-currency contracts (b) — — 378 27 378 27 Derivatives not designated as hedging instruments: Commodity contracts (c) 10 104 — 16 10 120 Foreign exchange contracts (a) — — 11 40 11 40 Total fair value $ 10 $ 104 $ 447 $ 87 $ 457 $ 191 (a) At March 28, 2020, the fair value of our derivative assets was recorded in other current assets ($58 million) and other non-current assets ($11 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($43 million) and other non-current liabilities ($1 million). (b) At March 28, 2020, the fair value of our derivative assets was recorded in other non-current assets and the fair value of our derivative liabilities was recorded within other non-current liabilities. (c) At March 28, 2020, the fair value of our derivative assets was recorded in other current assets ($9 million) and other non-current assets ($1 million), and the fair value of derivative liabilities was recorded in other current liabilities ($109 million) and other non-current liabilities ($11 million). December 28, 2019 Quoted Prices in Active Markets for Identical Assets and Liabilities Significant Other Observable Inputs Total Fair Value Assets Liabilities Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments: Foreign exchange contracts (a) $ — $ — $ 7 $ 20 $ 7 $ 20 Cross-currency contracts (b) — — 200 88 200 88 Derivatives not designated as hedging instruments: Commodity contracts (c) 42 6 — 2 42 8 Foreign exchange contracts (a) — — 6 3 6 3 Total fair value $ 42 $ 6 $ 213 $ 113 $ 255 $ 119 (a) At December 28, 2019, the fair value of derivative assets was recorded in other current assets ($12 million) and other current non-current assets ($1 million), and the fair value of derivative liabilities was recorded in other current liabilities. (b) At December 28, 2019, the fair value of derivative assets was recorded in other non-current assets and the fair value of derivative liabilities was recorded within other non-current liabilities. (c) At December 28, 2019, the fair value of derivative assets was recorded in other current assets and the fair value of derivative liabilities was recorded within 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 condensed consolidated balance sheets. If the derivative financial instruments had been netted on the condensed consolidated balance sheets, the asset and liability positions each would have been reduced by $77 million at March 28, 2020 and $108 million at December 28, 2019. At March 28, 2020, we had posted collateral of $90 million related to commodity derivative margin requirements which was included in prepaid expenses on our condensed consolidated balance sheet. At December 28, 2019, we had collected collateral of $25 million related to commodity derivative margin requirements which was included in other current liabilities on our condensed 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 March 28, 2020, we had the following items designated as net investment hedges: • Non-derivative foreign denominated debt with principal amounts of €2,550 million and £400 million; • Cross-currency contracts with notional amounts of £1.0 billion ($1.4 billion), C$2.1 billion ($1.6 billion), and ¥9.6 billion ($85 million); and • Foreign exchange contracts denominated in Chinese renminbi with an aggregate notional amount of $160 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 March 28, 2020, we had euro intercompany loans with an aggregate notional amount of $122 million. The component of the gains and losses on our net investment in these designated foreign operations, driven by changes in foreign exchange rates, are economically offset by fair value movements on the effective portion of our cross-currency contracts and foreign exchange contracts and remeasurements of our foreign denominated debt. Cash Flow Hedge Coverage: At March 28, 2020, 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 four years. Deferred Hedging Gains and Losses on Cash Flow Hedges: Based on our valuation at March 28, 2020 and assuming market rates remain constant through contract maturities, we expect transfers to net income/(loss) of unrealized gains on foreign currency cash flow hedges and cross-currency cash flow hedges during the next 12 months to be approximately $34 million. 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. 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) For the Three Months Ended March 28, 2020 March 30, 2019 Cash flow hedges: Foreign exchange contracts $ 1 $ (1) Net sales Foreign exchange contracts 72 (19) Cost of products sold Foreign exchange contracts (excluded component) (1) (1) Cost of products sold Foreign exchange contracts — (22) Other expense/(income) Cross-currency contracts 41 24 Other expense/(income) Cross-currency contracts (excluded component) 6 7 Other expense/(income) Net investment hedges: Foreign exchange contracts 2 9 Other expense/(income) Foreign exchange contracts (excluded component) (1) (1) Interest expense Cross-currency contracts 186 (72) Other expense/(income) Cross-currency contracts (excluded component) 8 7 Interest expense Total gains/(losses) recognized in statements of comprehensive income $ 314 $ (69) 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): For the Three Months Ended March 28, 2020 March 30, 2019 Cost of products sold Interest expense Other expense/ (income) Cost of products sold Interest expense Other expense/ (income) Total amounts presented in the condensed consolidated statements of income in which the following effects were recorded $ 4,299 $ 310 $ (81) $ 3,948 $ 321 $ (380) Gains/(losses) related to derivatives designated as hedging instruments: Cash flow hedges: Foreign exchange contracts $ 1 $ — $ — $ 9 $ — $ (22) Foreign exchange contracts (excluded component) — — — (1) — — Interest rate contracts — (1) — — (1) — Cross-currency contracts — — 3 — — 20 Cross-currency contracts (excluded component) — — 7 — — 7 Net investment hedges: Foreign exchange contracts — — — — — (6) Foreign exchange contracts (excluded component) — — — — (1) — Cross-currency contracts (excluded component) — 8 — — 7 — Gains/(losses) related to derivatives not designated as hedging instruments: Commodity contracts (150) — — 21 — — Foreign exchange contracts — — (28) — — 8 Cross-currency contracts — — — — — 4 Total gains/(losses) recognized in statements of income $ (149) $ 7 $ (18) $ 29 $ 5 $ 11 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 $34 million for the three months ended March 28, 2020 and $44 million for the three months ended March 30, 2019. These amounts were recognized in other comprehensive income/(loss). Other Financial Instruments: The carrying amounts of cash equivalents approximated fair values at March 28, 2020 and December 28, 2019. Money market funds are included in cash and cash equivalents on the condensed consolidated balance sheets. The fair value of money market funds were $3.3 billion at March 28, 2020 and $94 million at December 28, 2019. These are considered Level 1 financial assets and are valued using quoted prices in active markets for identical assets. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income/(Losses) (Notes) | 3 Months Ended |
Mar. 28, 2020 | |
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 (776) — — (776) Net deferred gains/(losses) on net investment hedges 166 — — 166 Amounts excluded from the effectiveness assessment of net investment hedges 5 — — 5 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (6) — — (6) Net deferred gains/(losses) on cash flow hedges — — 101 101 Amounts excluded from the effectiveness assessment of cash flow hedges — — 5 5 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) — — (10) (10) Net postemployment benefit losses/(gains) reclassified to net income/(loss) — (25) — (25) Total other comprehensive income/(loss) (611) (25) 96 (540) Balance as of March 28, 2020 $ (2,841) $ 278 $ 137 $ (2,426) 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): For the Three Months Ended March 28, 2020 March 30, 2019 Before Tax Amount Tax Net of Tax Amount Before Tax Amount Tax Net of Tax Amount Foreign currency translation adjustments $ (776) $ — $ (776) $ 207 $ — $ 207 Net deferred gains/(losses) on net investment hedges 222 (56) 166 (19) 5 (14) Amounts excluded from the effectiveness assessment of net investment hedges 7 (2) 5 6 (2) 4 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (8) 2 (6) — 2 2 Net deferred gains/(losses) on cash flow hedges 114 (13) 101 (18) 2 (16) Amounts excluded from the effectiveness assessment of cash flow hedges 5 — 5 6 — 6 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) (10) — (10) (12) 4 (8) Net actuarial gains/(losses) arising during the period — — — (1) 1 — Net postemployment benefit losses/(gains) reclassified to net income/(loss) (34) 9 (25) (78) 20 (58) 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 For the Three Months Ended March 28, 2020 March 30, 2019 Losses/(gains) on net investment hedges: Foreign exchange contracts(a) $ — $ 6 Other expense/(income) Foreign exchange contracts(b) — 1 Interest expense Cross-currency contracts(b) (8) (7) Interest expense Losses/(gains) on cash flow hedges: Foreign exchange contracts(c) (1) (8) Cost of products sold Foreign exchange contracts(c) — 22 Other expense/(income) Cross-currency contracts(b) (10) (27) Other expense/(income) Interest rate contracts(d) 1 1 Interest expense Losses/(gains) on hedges before income taxes (18) (12) Losses/(gains) on hedges, income taxes 2 6 Losses/(gains) on hedges $ (16) $ (6) Losses/(gains) on postemployment benefits: Amortization of unrecognized losses/(gains)(e) $ (3) $ (2) Amortization of prior service costs/(credits)(e) (31) (77) Other losses/(gains) on postemployment benefits — 1 Losses/(gains) on postemployment benefits before income taxes (34) (78) Losses/(gains) on postemployment benefits, income taxes 9 20 Losses/(gains) on postemployment benefits $ (25) $ (58) (a) Represents the reclassification of hedge losses/(gains) resulting from the complete or substantially complete liquidation of our investment in the underlying foreign operations. (b) Represents recognition of the excluded component in net income/(loss). (c) Includes amortization of the excluded component and the effective portion of the related hedges. (d) Represents amortization of realized hedge losses that were deferred into accumulated other comprehensive income/(losses) through the maturity of the related long-term debt instruments. (e) These components are included in the computation of net periodic postemployment benefit costs. See Note 11, Postemployment Benefits , for additional information. In this note we have excluded activity and balances related to noncontrolling interest due to its insignificance. This activity was primarily related to foreign currency translation adjustments. |
Venezuela - Foreign Currency an
Venezuela - Foreign Currency and Inflation (Notes) | 3 Months Ended |
Mar. 28, 2020 | |
Foreign Currency [Abstract] | |
Venezuela - Foreign Currency and Inflation | Venezuela - Foreign Currency and Inflation We have a subsidiary in Venezuela that manufactures and sells a variety of products, primarily in the condiments and sauces and infant and nutrition categories. We apply highly inflationary accounting to the results of our Venezuelan subsidiary and include these results in our condensed consolidated financial statements. Under highly inflationary accounting, the functional currency of our Venezuelan subsidiary is the U.S. dollar (the reporting currency of Kraft Heinz), although the majority of its transactions are in Venezuelan bolivars. As a result, we must revalue the results of our Venezuelan subsidiary to U.S. dollars. As of March 28, 2020, companies and individuals are allowed to use an auction-based system at private and public banks to obtain foreign currency. This is the only foreign currency exchange mechanism legally available to us for converting Venezuelan bolivars to U.S. dollars. Published daily by the Banco Central de Venezuela, the exchange rate (“BCV Rate”) is calculated as the weighted average rate of participating banking institutions with active exchange operations. We believe the BCV Rate is the most appropriate legally available rate at which to translate the results of our Venezuelan subsidiary. Therefore, we revalue the income statement using the weighted average BCV Rates, and we revalue the bolivar-denominated monetary assets and liabilities at the period-end BCV Rate. The resulting revaluation gains and losses are recorded in current net income/(loss), rather than accumulated other comprehensive income/(losses). These gains and losses are classified within other expense/(income) as nonmonetary currency devaluation on our condensed consolidated statements of income. The BCV Rate at March 28, 2020 was BsS77,893.46 per U.S. dollar compared to BsS45,874.81 at December 28, 2019. The weighted average rate was BsS73,638.07 for the three months ended March 28, 2020 and BsS2,694.69 for the three months ended March 30, 2019. Remeasurements of the bolivar-denominated monetary assets and liabilities and operating results of our Venezuelan subsidiary at BCV Rates resulted in nonmonetary currency devaluation losses of $1 million for the three months ended March 28, 2020 and $4 million for the three months ended March 30, 2019. These losses were recorded in other expense/(income) in the condensed consolidated statements of income. Our Venezuelan subsidiary obtains U.S. dollars through private and public bank auctions, customer payments, and royalty payments. These U.S. dollars are primarily used for purchases of tomato paste and spare parts for manufacturing, as well as a limited amount of other operating costs. As of March 28, 2020, our Venezuelan subsidiary had sufficient U.S. dollars to fund these operational needs in the foreseeable future. However, further deterioration of the economic environment or regulation changes could jeopardize our export business. In addition to the bank auctions described above, there is an unofficial market for obtaining U.S. dollars with Venezuelan bolivars. The exact exchange rate is widely debated but is generally accepted to be substantially higher than the latest published BCV Rate. We have not transacted at any unofficial market rates and have no plans to transact at unofficial market rates in the foreseeable future. Our results of operations in Venezuela reflect a controlled subsidiary. However, the continuing economic uncertainty, strict labor laws, and evolving government controls over imports, prices, currency exchange, and payments present a challenging operating environment. Increased restrictions imposed by the Venezuelan government along with further deterioration of the economic environment could impact our ability to control our Venezuelan operations and could lead us to deconsolidate our Venezuelan subsidiary in the future. |
Financing Arrangements (Notes)
Financing Arrangements (Notes) | 3 Months Ended |
Mar. 28, 2020 | |
Transfers and Servicing [Abstract] | |
Financing Arrangements | Financing ArrangementsWe enter into various structured payable and product financing arrangements to facilitate supply from our vendors. Balance sheet classification is based on the nature of the arrangements. For certain arrangements, we have concluded that our obligations to our suppliers, including amounts due and scheduled payment terms, are impacted by their participation in the program and therefore we classify amounts outstanding within other current liabilities on our condensed consolidated balance sheets. We had approximately $214 million at March 28, 2020 and approximately $253 million at December 28, 2019 on our condensed consolidated balance sheets related to these arrangements. |
Commitments, Contingencies and
Commitments, Contingencies and Debt (Notes) | 3 Months Ended |
Mar. 28, 2020 | |
Debt Disclosure [Abstract] | |
Commitments, Contingencies and Debt | Commitments, Contingencies and Debt Legal Proceedings We are involved in legal proceedings, claims, and governmental inquiries, inspections, or investigations (“Legal Matters”) arising in the ordinary course of our business. While we cannot predict with certainty the results of Legal Matters in which we are currently involved or may in the future be involved, we do not expect that the ultimate costs to resolve the Legal Matters that are currently pending will have a material adverse effect on our financial condition, results of operations, or cash flows. Class Actions and Stockholder Derivative Actions: We and certain of our current and former officers and directors are currently defendants in 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 class action complaint, which was filed on January 6, 2020 and also names 3G Capital, Inc. and several of its subsidiaries and affiliates (“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, and SEC filings regarding the Company’s business, financial results, and internal controls, and further alleges the 3G Entities engaged in insider trading and misappropriated the Company’s material, non-public information. The plaintiffs seek damages in an unspecified amount, attorneys’ fees, and other relief. An additional securities class action lawsuit, City of Hollywood Police Officers’ Retirement System v. The Kraft Heinz Company, et al. , was filed on March 25, 2020 against the Company and one of its current officers, one of its former officers, one of its current directors, and the 3G Entities in the Northern District Court for the Northern District of Illinois. The complaint also asserts claims under Sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5 promulgated thereunder, based on allegedly materially false or misleading statements and omissions in public statements, press releases, investor presentations, earnings calls, and SEC filings regarding the Company’s business, financial results, and internal controls, and further alleges the 3G Entities engaged in insider trading and misappropriated the Company’s material, non-public information. The plaintiff seeks damages in an unspecified amount, attorneys’ fees, and other relief. In addition, our Employee Benefits Administration Board and certain of our current and former officers and employees are currently defendants in an Employee Retirement Income Security Act (“ERISA”) class action lawsuit, Osborne v. Employee Benefits Administration Board of Kraft Heinz, et al. , which was filed on March 19, 2019 in the United States District Court for the Western District of Pennsylvania and was subsequently transferred to the United States District Court for the Northern District of Illinois. Plaintiffs in the lawsuit purport to represent a class of current and former employees who were participants in and beneficiaries of various retirement plans which were co-invested in a commingled investment fund known as the Kraft Foods Savings Plan Master Trust (the “Master Trust”) during the period of May 4, 2017 through February 21, 2019. An amended complaint was filed on June 28, 2019. The amended complaint alleges violations of Section 502 of ERISA based on alleged breaches of obligations as fiduciaries subject to ERISA by allowing the Master Trust to continue investing in our common stock, and alleges additional breaches of fiduciary duties by current and former officers for their purported failure to monitor Master Trust fiduciaries. The plaintiffs seek damages in an unspecified amount, attorneys’ fees, and other relief. Certain of our current and former officers and directors, among others, are also named as defendants in a consolidated stockholder derivative action, In re Kraft Heinz Shareholder Derivative Litigation , which was filed in the United States District Court for the Western District of Pennsylvania and subsequently transferred to the United States District Court for the Northern District of Illinois. The consolidated amended complaint, which was filed on July 31, 2019, asserts claims under the common law and statutory law of Delaware for alleged breaches of fiduciary duties, unjust enrichment, and contribution for alleged violations of Sections 10(b) and 21D of the Exchange Act and Rule 10b-5 promulgated thereunder, based on allegedly materially false or misleading statements and omissions in public statements and SEC filings, and for implementing cost cutting measures that allegedly damaged the company. The plaintiffs seek damages in an unspecific amount, attorneys’ fees, and other relief. Three additional stockholder derivative actions have been filed against certain of the Company’s current and former directors and the 3G Entities. The first action, Waters v. Behring, et al. , was filed on March 9, 2020 in the United States District Court for the District of Delaware and was subsequently transferred to the United States District Court for the Northern District of Illinois. The second action, Merritts v. 3G Capital, Inc., et al. , was filed on March 23, 2020, and the third action, Hill v. Abel, et al. , was filed on April 13, 2020, both in the United States District Court for the Northern District of Illinois. Similar to the consolidated stockholder derivative action, these complaints also assert claims under the common law and statutory law of Delaware for alleged breaches of fiduciary duties, unjust enrichment, and contribution for alleged violations of Sections 10(b), 14, and 21D of the Exchange Act and Rule 10b-5 promulgated thereunder, based on allegedly materially false or misleading statements and omissions in public statements and SEC filings, and for implementing cost cutting measures that allegedly damaged the company. The plaintiffs seek damages in an unspecific amount, attorneys’ fees, and other relief. Certain of the Company’s current and former officers and directors and the 3G Entities are 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, alleges the 3G Entities were controlling shareholders who owed fiduciary duties to the Company, and that they breached those duties by allegedly engaging in insider trading and misappropriating the Company’s material, non-public information. The complaint further 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, and by supposedly approving or allowing the 3G Entities’ alleged insider trading. The complaint seeks 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. We intend to vigorously defend against these lawsuits; however, we cannot reasonably estimate the potential range of loss, if any, due to the early stage of these proceedings. United States Government Investigations: As previously disclosed on February 21, 2019, we received a subpoena in October 2018 from the SEC related to our procurement area, specifically the accounting policies, procedures, and internal controls related to our procurement function, including, but not limited to, agreements, side agreements, and changes or modifications to agreements with our suppliers. Following the receipt of this subpoena, we, together with external counsel and forensic accountants, and subsequently, under the oversight of the Audit Committee, conducted an internal investigation into our procurement area and related matters. The SEC has issued additional subpoenas seeking information related to our financial reporting, internal controls, disclosures, our assessment of goodwill and intangible asset impairments, our communications with certain shareholders, and other procurement-related information and materials in connection with its investigation. The United States Attorney’s Office for the Northern District of Illinois (“USAO”) is also reviewing this matter. We cannot predict the eventual scope, duration or outcome of any potential SEC legal action or other action or whether it could have a material impact on our financial condition, results of operations, or cash flows. We have been responsive to the ongoing subpoenas and other document requests and will continue to cooperate fully with any governmental or regulatory inquiry or investigation. Other Commitments and Contingencies Redeemable Noncontrolling Interest: We have a joint venture with a minority partner to manufacture, package, market, and distribute food products. We control operations and include this business in our consolidated results. Our minority partner has put options that, if it chooses to exercise, would require us to purchase portions of its equity interest at a future date. These put options will become exercisable beginning in 2025 (on the eighth anniversary of the product launch date) at a price to be determined at that time based upon an independent third party valuation. The minority partner’s put options are reflected on our condensed consolidated balance sheets as a redeemable noncontrolling interest. We accrete the redeemable noncontrolling interest to its estimated redemption value over the term of the put options. At March 28, 2020, we estimate the redemption value to be insignificant. Debt Borrowing Arrangements: On July 6, 2015, together with Kraft Heinz Foods Company (“KHFC”), our 100% owned operating subsidiary, we entered into a credit agreement (as amended, the “Credit Agreement”), which provides for a $4.0 billion senior unsecured revolving credit facility (the “Senior Credit Facility”). In June 2018, we entered into an agreement that became effective on July 6, 2018 to extend the maturity date of our Senior Credit Facility from July 6, 2021 to July 6, 2023 and to establish a $400 million euro equivalent swing line facility, which is available under the $4.0 billion revolving credit facility limit for short-term loans denominated in euros on a same-day basis. On March 23, 2020, we entered into an extension letter agreement (the “Extension Agreement”) which extends $3.9 billion of the revolving loans and commitments under the Credit Agreement from July 6, 2023 to July 6, 2024. The revolving loans and commitments of each lender that did not agree to the Extension Agreement shall continue to terminate on the existing maturity date of July 6, 2023. On March 12, 2020, as a precautionary measure to preserve financial flexibility in light of the current uncertainty in the global economy resulting from the COVID-19 pandemic, we provided notice to our lenders to borrow the full available amount under our Senior Credit Facility. As such, a total of $4.0 billion was drawn on our Senior Credit Facility during the three months ended March 28, 2020. The amount drawn on our Senior Credit Facility is included in long-term debt on our condensed consolidated balance sheet. At March 28, 2020, $4.0 billion was still outstanding as there were no repayments during the quarter. No amounts were drawn on our Senior Credit Facility at December 28, 2019 or during the three months ended March 30, 2019. The borrowings under the Senior Credit Facility currently bear an interest rate of LIBOR plus 125 basis points. The Senior Credit Facility contains representations, warranties, and covenants that are typical for these types of facilities and could upon the occurrence of certain events of default restrict our ability to access our Senior Credit Facility. Our Senior Credit Facility requires us to maintain a minimum shareholders’ equity (excluding accumulated other comprehensive income/(losses)) of at least $35 billion. We were in compliance with this covenant as of March 28, 2020. The obligations under the Credit Agreement are guaranteed by KHFC in the case of indebtedness and other liabilities of any subsidiary borrower and by Kraft Heinz in the case of indebtedness and other liabilities of any subsidiary borrower and KHFC. On March 10, 2020, together with KHFC, we entered into an uncommitted revolving credit line agreement which provides for borrowings up to $300 million. Each borrowing under this uncommitted revolving credit line agreement is due within six months of the disbursement date and the final maturity date of the agreement is June 9, 2021. As of March 28, 2020, no amounts had been drawn on this facility. We have historically obtained funding through our U.S. and European commercial paper programs. We had no commercial paper outstanding at March 28, 2020, at December 28, 2019, or during the three months ended March 28, 2020. The maximum amount of commercial paper outstanding during the three months ended March 30, 2019 was $200 million. See Note 18, Debt , to our consolidated financial statements for the year ended December 28, 2019 in our Annual Report on Form 10-K for additional information on our borrowing arrangements. Debt Repayments: In February 2020, we repaid $405 million aggregate principal amount of senior notes that matured in the period. Fair Value of Debt: At March 28, 2020, the aggregate fair value of our total debt was $31.6 billion as compared with a carrying value of $32.8 billion. At December 28, 2019, the aggregate fair value of our total debt was $31.1 billion as compared with a carrying value of $29.2 billion. Our short-term debt and the amount drawn on our Senior Credit Facility each had a carrying value that approximated its fair value at March 28, 2020 and December 28, 2019. We determined the fair value of our long-term debt, excluding the amount drawn on our Senior Credit Facility, using Level 2 inputs. Fair values are generally estimated based on quoted market prices for identical or similar instruments. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 3 Months Ended |
Mar. 28, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Our earnings per common share (“EPS”) were: For the Three Months Ended March 28, 2020 March 30, 2019 (in millions, except per share data) Basic Earnings Per Common Share: Net income/(loss) attributable to common shareholders $ 378 $ 405 Weighted average shares of common stock outstanding 1,222 1,220 Net earnings/(loss) $ 0.31 $ 0.33 Diluted Earnings Per Common Share: Net income/(loss) attributable to common shareholders $ 378 $ 405 Weighted average shares of common stock outstanding 1,222 1,220 Effect of dilutive equity awards 2 4 Weighted average shares of common stock outstanding, including dilutive effect 1,224 1,224 Net earnings/(loss) $ 0.31 $ 0.33 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 13 million for the three months ended March 28, 2020 and 10 million for the three months ended March 30, 2019. |
Segment Reporting (Notes)
Segment Reporting (Notes) | 3 Months Ended |
Mar. 28, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting In the first quarter of our fiscal year 2020, our internal reporting and reportable segments changed. We moved our Puerto Rico business from the Latin America zone to the United States zone to consolidate and streamline the management of our product categories and supply chain. We also combined our EMEA, Latin America, and APAC zones to form the International zone as a result of certain previously announced organizational changes. Therefore, effective in the first quarter of 2020, we manage and report our operating results through three reportable segments defined by geographic region: United States, International, and Canada. We have reflected these changes 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 integration and restructuring expenses); in addition to these adjustments, we exclude, when they occur, the impacts of integration and restructuring expenses, deal costs, unrealized gains/(losses) on commodity hedges (the unrealized gains and losses are recorded in general corporate expenses until realized; once realized, the gains and losses are recorded in the applicable segment’s operating results), impairment losses, and equity award compensation expense (excluding integration and restructuring expenses). Segment Adjusted EBITDA is a tool that can assist management and investors in comparing our performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our underlying operations. Management uses Segment Adjusted EBITDA to evaluate segment performance and allocate resources. Management does not use assets by segment to evaluate performance or allocate resources. Therefore, we do not disclose assets by segment. Net sales by segment were (in millions): For the Three Months Ended March 28, 2020 March 30, 2019 Net sales: United States $ 4,495 $ 4,224 International 1,301 1,285 Canada 361 450 Total net sales $ 6,157 $ 5,959 Segment Adjusted EBITDA was (in millions): For the Three Months Ended March 28, 2020 March 30, 2019 Segment Adjusted EBITDA: United States $ 1,209 $ 1,139 International 245 238 Canada 55 121 General corporate expenses (94) (67) Depreciation and amortization (excluding integration and restructuring expenses) (243) (234) Integration and restructuring expenses — (27) Deal costs — (8) Unrealized gains/(losses) on commodity hedges (143) 29 Impairment losses (226) (620) Equity award compensation expense (excluding integration and restructuring expenses) (33) (9) Operating income/(loss) 770 562 Interest expense 310 321 Other expense/(income) (81) (380) Income/(loss) before income taxes $ 541 $ 621 Net sales by product category were (in millions): For the Three Months Ended March 28, 2020 March 30, 2019 Condiments and sauces $ 1,581 $ 1,513 Cheese and dairy 1,139 1,194 Ambient foods 716 598 Frozen and chilled foods 648 605 Meats and seafood 590 587 Refreshment beverages 389 357 Coffee 275 308 Infant and nutrition 113 129 Desserts, toppings and baking 204 194 Nuts and salted snacks 250 225 Other 252 249 Total net sales $ 6,157 $ 5,959 |
Other Income and Expenses (Note
Other Income and Expenses (Notes) | 3 Months Ended |
Mar. 28, 2020 | |
Other Income and Expenses [Abstract] | |
Other Financial Data | Other Financial Data Condensed Consolidated Statements of Income Information Other expense/(income) consists of the following (in millions): For the Three Months Ended March 28, 2020 March 30, 2019 Amortization of prior service costs/(credits) $ (31) $ (77) Net pension and postretirement non-service cost/(benefit) (a) (43) (43) Loss/(gain) on sale of business 2 (246) Interest income (9) (6) Foreign exchange loss/(gain) (17) 4 Other miscellaneous expense/(income) 17 (12) Other expense/(income) $ (81) $ (380) (a) Excludes amortization of prior service costs/(credits). We present all non-service cost components of net pension cost/(benefit) and net postretirement cost/(benefit) within other expense/(income) on our condensed consolidated statements of income. See Note 11, Postemployment Benefits , for additional information on these components 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 14, Venezuela - Foreign Currency and Inflation , for information related to our nonmonetary currency devaluation losses. See Note 12, Financial Instruments , for information related to our derivative impacts. Other expense/(income) was $81 million of income for the three months ended March 28, 2020 compared to $380 million of income for the three months ended March 30, 2019. This decrease was primarily driven by a $2 million net loss on sales of businesses in 2020 compared to a $246 million gain on the Heinz India Transaction in 2019 and a $46 million decrease in amortization of prior service credits as compared to the prior year period. |
Supplemental Guarantor Informat
Supplemental Guarantor Information (Notes) | 3 Months Ended |
Mar. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Guarantor Information | Supplemental Guarantor Information Kraft Heinz fully and unconditionally guarantees the notes issued by our 100% owned operating subsidiary, Kraft Heinz Foods Company. See Note 18, Debt , to our consolidated financial statements for the year ended December 28, 2019 in our Annual Report on Form 10-K 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. In March 2020, the SEC amended Rule 3-10 of Regulation S-X regarding financial disclosure requirements for certain debt securities. The new rules affect those disclosures related to registered securities that are guaranteed and those that are collateralized by the securities of an affiliate. The changes include expanding the population of subsidiary issuers and guarantors that can use the SEC’s guarantee-related disclosure framework, simplifying the disclosure models, and allowing for disclosures to be made outside of the financial statements. This rule is effective January 4, 2021 with early adoption permitted. We are currently evaluating the impact this new rule will have on our financial statements and related disclosures as well as the timing of adoption. The Kraft Heinz Company Condensed Consolidating Statements of Income For the Three Months Ended March 28, 2020 (in millions) (Unaudited) Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 4,227 $ 2,036 $ (106) $ 6,157 Cost of products sold — 2,911 1,494 (106) 4,299 Gross profit — 1,316 542 — 1,858 Selling, general and administrative expenses, excluding impairment losses — 239 623 — 862 Goodwill impairment losses — — 226 — 226 Selling, general and administrative expenses — 239 849 — 1,088 Intercompany service fees and other recharges — 729 (729) — — Operating income/(loss) — 348 422 — 770 Interest expense — 291 19 — 310 Other expense/(income) — (91) 10 — (81) Income/(loss) before income taxes — 148 393 — 541 Provision for/(benefit from) income taxes — 28 132 — 160 Equity in earnings/(losses) of subsidiaries 378 258 — (636) — Net income/(loss) 378 378 261 (636) 381 Net income/(loss) attributable to noncontrolling interest — — 3 — 3 Net income/(loss) excluding noncontrolling interest $ 378 $ 378 $ 258 $ (636) $ 378 Comprehensive income/(loss) excluding noncontrolling interest $ (162) $ (162) $ (372) $ 534 $ (162) The Kraft Heinz Company Condensed Consolidating Statements of Income For the Three Months Ended March 30, 2019 (in millions) (Unaudited) Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 4,004 $ 2,066 $ (111) $ 5,959 Cost of products sold — 2,572 1,487 (111) 3,948 Gross profit — 1,432 579 — 2,011 Selling, general and administrative expenses, excluding impairment losses — 221 608 — 829 Goodwill impairment losses — — 620 — 620 Selling, general and administrative expenses — 221 1,228 — 1,449 Intercompany service fees and other recharges — 841 (841) — — Operating income/(loss) — 370 192 — 562 Interest expense — 300 21 — 321 Other expense/(income) — 8 (388) — (380) Income/(loss) before income taxes — 62 559 — 621 Provision for/(benefit from) income taxes — 36 181 — 217 Equity in earnings/(losses) of subsidiaries 405 379 — (784) — Net income/(loss) 405 405 378 (784) 404 Net income/(loss) attributable to noncontrolling interest — — (1) — (1) Net income/(loss) excluding noncontrolling interest $ 405 $ 405 $ 379 $ (784) $ 405 Comprehensive income/(loss) excluding noncontrolling interest $ 528 $ 528 $ 528 $ (1,056) $ 528 The Kraft Heinz Company Condensed Consolidating Balance Sheets As of March 28, 2020 (in millions) (Unaudited) Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ — $ 4,605 $ 798 $ — $ 5,403 Trade receivables, net — 1,146 1,175 — 2,321 Receivables due from affiliates — 296 290 (586) — Inventories — 1,901 930 — 2,831 Short-term lending due from affiliates — 1,432 4,487 (5,919) — Prepaid expenses — 321 164 — 485 Other current assets — 895 289 (649) 535 Assets held for sale — 13 120 — 133 Total current assets — 10,609 8,253 (7,154) 11,708 Property, plant and equipment, net — 4,353 2,460 — 6,813 Goodwill — 11,067 23,995 — 35,062 Investments in subsidiaries 51,009 66,007 — (117,016) — Intangible assets, net — 2,826 45,433 — 48,259 Long-term lending due from affiliates — 207 2,000 (2,207) — Other non-current assets — 950 1,281 — 2,231 TOTAL ASSETS $ 51,009 $ 96,019 $ 83,422 $ (126,377) $ 104,073 LIABILITIES AND EQUITY Commercial paper and other short-term debt $ — $ 5 $ 1 $ — $ 6 Current portion of long-term debt — 870 372 — 1,242 Short-term lending due to affiliates — 4,487 1,432 (5,919) — Trade payables — 2,453 1,503 — 3,956 Payables due to affiliates — 290 296 (586) — Accrued marketing — 240 441 — 681 Interest payable — 370 4 — 374 Other current liabilities — 1,507 806 (649) 1,664 Liabilities held for sale — 1 10 — 11 Total current liabilities — 10,223 4,865 (7,154) 7,934 Long-term debt — 31,229 302 — 31,531 Long-term borrowings due to affiliates — 2,000 207 (2,207) — Deferred income taxes — 1,373 10,466 — 11,839 Accrued postemployment costs — 28 222 — 250 Other non-current liabilities — 157 1,238 — 1,395 TOTAL LIABILITIES — 45,010 17,300 (9,361) 52,949 Redeemable noncontrolling interest — — — — — Total shareholders’ equity 51,009 51,009 66,007 (117,016) 51,009 Noncontrolling interest — — 115 — 115 TOTAL EQUITY 51,009 51,009 66,122 (117,016) 51,124 TOTAL LIABILITIES AND EQUITY $ 51,009 $ 96,019 $ 83,422 $ (126,377) $ 104,073 The Kraft Heinz Company Condensed Consolidating Balance Sheets As of December 28, 2019 (in millions) (Unaudited) 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) — 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 — 983 336 (701) 618 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 Statements of Cash Flows For the Three Months Ended March 28, 2020 (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 $ 488 $ (19) $ 231 $ (488) $ 212 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures — (61) (70) — (131) Net proceeds from/(payments on) intercompany lending activities — 352 198 (550) — Additional investments in subsidiaries (11) 12 — (1) — Other investing activities, net — 7 2 — 9 Net cash provided by/(used for) investing activities (11) 310 130 (551) (122) CASH FLOWS FROM FINANCING ACTIVITIES Repayments of long-term debt — (406) (1) — (407) Proceeds from revolving credit facility — 4,000 — — 4,000 Net proceeds from/(payments on) intercompany borrowing activities — (198) (352) 550 — Dividends paid (488) (488) — 488 (488) Other intercompany capital stock transactions — 11 (12) 1 — Other financing activities, net 11 (9) (2) — — Net cash provided by/(used for) financing activities (477) 2,910 (367) 1,039 3,105 Effect of exchange rate changes on cash, cash equivalents, and restricted cash — — (71) — (71) Cash, cash equivalents, and restricted cash: Net increase/(decrease) — 3,201 (77) — 3,124 Balance at beginning of period — 1,404 876 — 2,280 Balance at end of period $ — $ 4,605 $ 799 $ — $ 5,404 The Kraft Heinz Company Condensed Consolidating Statements of Cash Flows For the Three Months Ended March 30, 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 $ 488 $ 270 $ 34 $ (488) $ 304 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures — (113) (136) — (249) Payments to acquire business, net of cash acquired — (202) 2 — (200) Net proceeds from/(payments on) intercompany lending activities — 720 22 (742) — Additional investments in subsidiaries — (29) — 29 — Proceeds from sale of business, net of cash disposed — — 640 — 640 Other investing activities, net — 4 (18) — (14) Net cash provided by/(used for) investing activities — 380 510 (713) 177 CASH FLOWS FROM FINANCING ACTIVITIES Repayments of long-term debt — — (1) — (1) Proceeds from issuance of commercial paper — 377 — — 377 Repayments of commercial paper — (377) — — (377) Net proceeds from/(payments on) intercompany borrowing activities — (22) (720) 742 — Dividends paid (488) (488) — 488 (488) Other intercompany capital stock transactions — — 29 (29) — Other financing activities, net — 7 (22) — (15) Net cash provided by/(used for) financing activities (488) (503) (714) 1,201 (504) Effect of exchange rate changes on cash, cash equivalents, and restricted cash — — (11) — (11) Cash, cash equivalents, and restricted cash: Net increase/(decrease) — 147 (181) — (34) Balance at beginning of period — 202 934 — 1,136 Balance at end of period $ — $ 349 $ 753 $ — $ 1,102 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): March 28, 2020 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Eliminations Consolidated Cash and cash equivalents $ — $ 4,605 $ 798 $ — $ 5,403 Restricted cash included in other current assets — — 1 — 1 Cash, cash equivalents, and restricted cash $ — $ 4,605 $ 799 $ — $ 5,404 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 Cash, cash equivalents, and restricted cash $ — $ 1,404 $ 876 $ — $ 2,280 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation, Policy | Principles of Consolidation The condensed consolidated financial statements include Kraft Heinz and all of our controlled subsidiaries. All intercompany transactions are eliminated. |
Reportable Segments, Policy | Reportable Segments In the first quarter of our fiscal year 2020, our internal reporting and reportable segments changed. We moved our Puerto Rico business from the Latin America zone to the United States zone to consolidate and streamline the management of our product categories and supply chain. We also combined our Europe, Middle East, and Africa (“EMEA”), Latin America, and Asia Pacific (“APAC”) zones to form the International zone as a result of certain previously announced organizational changes. Therefore, effective in the first quarter of 2020, we manage and report our operating results through three reportable segments defined by geographic region: United States, International, and Canada. We have reflected these changes in all historical periods presented. |
Use of Estimates, Policy | Use of Estimates We prepare our condensed consolidated financial statements in accordance with 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 condensed consolidated financial statements. |
Reclassifications, Policy | Reclassifications We made reclassifications to certain previously reported financial information to conform to our current period presentation. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 28, 2020 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment, Policy | Property, Plant and Equipment: Property, plant and equipment are stated at historical cost and depreciated on the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated over periods ranging from three years to 20 years and buildings and improvements over periods up to 40 years. Capitalized software costs are included in property, plant and equipment 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. |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents: Cash equivalents include demand 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 is classified in other current assets or other non-current assets, as applicable, on the consolidated balance sheets. |
Hosting Arrangement, 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 the straight-line method over the term of the hosting arrangement which the implementation costs relate to. Deferred implementation costs for these arrangements are included in prepaid expenses and amortized to selling, general and administrative expenses (“SG&A”). 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. |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 3 Months Ended |
Mar. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Standards | Accounting Standards Adopted in the Current Year Measurement of Current Expected Credit Losses: In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13 to update the methodology used to measure current expected credit losses (“CECL”). This ASU applies to financial assets measured at amortized cost, including loans, held-to-maturity debt securities, net investments in leases, and trade accounts receivable as well as certain off-balance sheet credit exposures, such as loan commitments. This ASU replaces the current incurred loss impairment methodology with a methodology to reflect CECL and requires consideration of a broader range of reasonable and supportable information to explain credit loss estimates. The guidance must be adopted using a modified retrospective transition method through a cumulative-effect adjustment to retained earnings/(deficit) in the period of adoption. This ASU became effective in the first quarter of our fiscal year 2020. We adopted this ASU and guidance on the first day of our fiscal year 2020 and, based on the insignificant impact of this ASU on our financial statements, a cumulative-effect adjustment to retained earnings/(deficit) was not deemed necessary. Fair Value Measurement Disclosures: In August 2018, the FASB issued ASU 2018-13 related to fair value measurement disclosures. This ASU removes the requirement to disclose the amount of and reasons for transfers between Levels 1 and 2 of the fair value hierarchy, the policy for determining that a transfer has occurred, and valuation processes for Level 3 fair value measurements. Additionally, this ASU modifies the disclosures related to the measurement uncertainty for recurring Level 3 fair value measurements (by removing the requirement to disclose sensitivity to future changes) and the timing of liquidation of investee assets (by removing the timing requirement in certain instances). The guidance also requires new disclosures for Level 3 financial assets and liabilities, including the amount and location of unrealized gains and losses recognized in other comprehensive income/(loss) and additional information related to significant unobservable inputs used in determining Level 3 fair value measurements. This ASU became effective beginning in the first quarter of our fiscal year 2020. Early adoption of the guidance in whole was permitted. Alternatively, companies could have early adopted the portions of the guidance that removed or modified disclosures and delayed adoption of the additional disclosures until their effective date. Certain of the amendments in this ASU must be applied prospectively upon adoption, while other amendments must be applied retrospectively upon adoption. We elected to early adopt the provisions related to removing disclosures in the fourth quarter of our fiscal year 2018 on a retrospective basis. Accordingly, we removed certain disclosures from Note 12, Postemployment Benefits , and Note 13, Financial Instruments , in our Annual Report on Form 10-K for the year ended December 29, 2018. There was no other impact to our financial statement disclosures as a result of early adopting the provisions related to removing disclosures. Implementation Costs Incurred in Hosted Cloud Computing Service Arrangements: In August 2018, the FASB issued ASU 2018-15 related to accounting for implementation costs incurred in hosted cloud computing service arrangements. Under the new guidance, implementation costs incurred in a hosting arrangement that is a service contract should be expensed or deferred based on the nature of the costs and the project stage during which such costs are incurred. If the implementation costs qualify for deferral, they must be amortized over the term of the hosting arrangement and assessed for impairment. Additionally, the ASU requires disclosure of the nature of any hosted cloud computing service arrangement and requires financial statement presentation of the deferred costs be consistent with fees incurred under the hosting arrangement. This ASU became effective in the first quarter of our fiscal year 2020. We adopted this ASU in the first quarter of our fiscal year 2020 using a prospective transition method. The adoption of this ASU did not have a significant impact on our financial statements and related disclosures. See Note 2, Significant Accounting Policies , for our policy on accounting for hosted cloud computing service arrangements. Accounting Standards Not Yet Adopted Disclosure Requirements for Certain Employer-Sponsored Benefit Plans: In August 2018, the FASB issued ASU 2018-14 related to the disclosure requirements for employers that sponsor defined benefit pension and other postretirement benefit plans. The guidance requires sponsors of these plans to provide additional disclosures, including weighted-average interest rates used in the company’s cash balance plans and a narrative description of reasons for any significant gains or losses impacting the benefit obligation for the period. Additionally, this guidance eliminates certain previous disclosure requirements. This ASU will be effective for fiscal years ending after December 15, 2020, and our Annual Report on Form 10-K for the year ended December 26, 2020 will reflect the adoption of this ASU. This guidance must be applied on a retrospective basis to all periods presented. Simplifying the Accounting for Income Taxes: In December 2019, the FASB issued ASU 2019-12 to simplify the accounting in ASC 740, Income Taxes. This guidance removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC 740. This ASU will be effective beginning in the first quarter of our fiscal year 2021. Early adoption is permitted. Certain amendments in this update must be applied on a prospective basis, certain amendments must be applied on a retrospective basis, and certain amendments must be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings/(deficit) in the period of adoption. We are currently evaluating the impact this ASU will have on our financial statements and related disclosures as well as the timing of adoption. |
Acquisitions and Divestitures_2
Acquisitions and Divestitures (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Business Combinations [Abstract] | |
Assets and Liabilities Held for Sale by Major Class | Our assets and liabilities held for sale, by major class, were (in millions): March 28, 2020 December 28, 2019 ASSETS Cash and cash equivalents $ 26 $ 27 Inventories 28 21 Property, plant and equipment, net 33 25 Intangible assets, net 21 23 Other 25 26 Total assets held for sale $ 133 $ 122 LIABILITIES Trade payables $ 3 $ 3 Other 8 6 Total liabilities held for sale $ 11 $ 9 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | Our net liability balance for restructuring project costs that qualify as exit and disposal costs under U.S. GAAP (i.e., severance and employee benefit costs and other exit costs) was (in millions): Severance and Employee Benefit Costs Other Exit Costs Total Balance at December 28, 2019 $ 22 $ 24 $ 46 Charges/(credits) (3) 1 (2) Cash payments (7) (1) (8) Balance at March 28, 2020 $ 12 $ 24 $ 36 |
Restructuring Costs by Type and Income Statement Location | Total expense/(income) related to restructuring activities, by income statement caption, were (in millions): For the Three Months Ended March 28, 2020 March 30, 2019 Severance and employee benefit costs - COGS $ 1 $ — Severance and employee benefit costs - SG&A (4) 1 Asset-related costs - COGS — 2 Asset-related costs - SG&A — 7 Other costs - COGS — 7 Other costs - SG&A 3 10 $ — $ 27 |
Restructuring Costs Excluded from Segments | The pre-tax impact of allocating such expenses to our segments would have been (in millions): For the Three Months Ended March 28, 2020 March 30, 2019 United States $ — $ 19 International (1) 4 Canada 1 2 General corporate expenses — 2 $ — $ 27 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Reconciliation from Cash and Cash Equivalents to Cash, Cash Equivalents, and Restricted Cash | The following table provides a reconciliation of cash and cash equivalents, as reported on our condensed consolidated balance sheets, to cash, cash equivalents, and restricted cash, as reported on our condensed consolidated statements of cash flows (in millions): March 28, 2020 December 28, 2019 Cash and cash equivalents $ 5,403 $ 2,279 Restricted cash included in other current assets 1 1 Cash, cash equivalents, and restricted cash $ 5,404 $ 2,280 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following (in millions): March 28, 2020 December 28, 2019 Packaging and ingredients $ 666 $ 511 Work in process 377 364 Finished products 1,788 1,846 Inventories $ 2,831 $ 2,721 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill by Segment | Changes in the carrying amount of goodwill, by segment, were (in millions): United States International Canada Total Balance at December 28, 2019 $ 29,647 $ 3,355 $ 2,544 $ 35,546 Impairment losses — (226) — (226) Translation adjustments and other — (94) (164) (258) Balance at March 28, 2020 $ 29,647 $ 3,035 $ 2,380 $ 35,062 |
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 28, 2019 $ 43,400 Translation adjustments (280) Balance at March 28, 2020 $ 43,120 |
Schedule of Definite-Lived Intangible Assets By Major Asset Class | Definite-lived intangible assets were (in millions): March 28, 2020 December 28, 2019 Gross Accumulated Net Gross Accumulated Net Trademarks $ 2,419 $ (492) $ 1,927 $ 2,443 $ (469) $ 1,974 Customer-related assets 4,075 (874) 3,201 4,113 (845) 3,268 Other 14 (3) 11 14 (4) 10 $ 6,508 $ (1,369) $ 5,139 $ 6,570 $ (1,318) $ 5,252 |
Employees' Stock Incentive Pl_2
Employees' Stock Incentive Plans (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity and Related Information | Our stock option activity and related information was: Number of Stock Options Weighted Average Exercise Price Outstanding at December 28, 2019 17,638,500 $ 41.22 Forfeited (321,960) 62.91 Exercised (383,295) 24.78 Outstanding at March 28, 2020 16,933,245 41.16 |
Schedule of RSU Activity and Related Information | Our restricted stock unit (“RSU”) activity and related information was: Number of Units Weighted Average Grant Date Fair Value Outstanding at December 28, 2019 9,395,909 $ 33.51 Granted 1,488,962 26.07 Forfeited (356,717) 34.49 Vested (52,786) 86.70 Outstanding at March 28, 2020 10,475,368 32.17 |
Schedule of PSU Activity and Related Information | Our performance share unit (“PSU”) activity and related information was: Number of Units Weighted Average Grant Date Fair Value Outstanding at December 28, 2019 6,813,659 $ 36.03 Granted 191,792 22.56 Forfeited (358,356) 56.63 Outstanding at March 28, 2020 6,647,095 34.53 |
Postemployment Benefits (Tables
Postemployment Benefits (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Net Cost/(Benefit) | Net pension cost/(benefit) consisted of the following (in millions): For the Three Months Ended U.S. Plans Non-U.S. Plans March 28, 2020 March 30, 2019 March 28, 2020 March 30, 2019 Service cost $ 2 $ 2 $ 4 $ 4 Interest cost 33 41 9 13 Expected return on plan assets (52) (57) (26) (37) Net pension cost/(benefit) $ (17) $ (14) $ (13) $ (20) |
Postretirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Net Cost/(Benefit) | Net postretirement cost/(benefit) consisted of the following (in millions): For the Three Months Ended March 28, 2020 March 30, 2019 Service cost $ 2 $ 1 Interest cost 8 12 Expected return on plan assets (12) (13) Amortization of prior service costs/(credits) (31) (77) Amortization of unrecognized losses/(gains) (3) (2) Net postretirement cost/(benefit) $ (36) $ (79) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
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 March 28, 2020 December 28, 2019 Commodity contracts $ 772 $ 475 Foreign exchange contracts 2,495 3,045 Cross-currency contracts 4,035 4,035 |
Schedule of Derivative Fair Values | The fair values and the levels within the fair value hierarchy of derivative instruments recorded on the condensed consolidated balance sheets were (in millions): March 28, 2020 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) $ — $ — $ 58 $ 4 $ 58 $ 4 Cross-currency contracts (b) — — 378 27 378 27 Derivatives not designated as hedging instruments: Commodity contracts (c) 10 104 — 16 10 120 Foreign exchange contracts (a) — — 11 40 11 40 Total fair value $ 10 $ 104 $ 447 $ 87 $ 457 $ 191 (a) At March 28, 2020, the fair value of our derivative assets was recorded in other current assets ($58 million) and other non-current assets ($11 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($43 million) and other non-current liabilities ($1 million). (b) At March 28, 2020, the fair value of our derivative assets was recorded in other non-current assets and the fair value of our derivative liabilities was recorded within other non-current liabilities. (c) At March 28, 2020, the fair value of our derivative assets was recorded in other current assets ($9 million) and other non-current assets ($1 million), and the fair value of derivative liabilities was recorded in other current liabilities ($109 million) and other non-current liabilities ($11 million). December 28, 2019 Quoted Prices in Active Markets for Identical Assets and Liabilities Significant Other Observable Inputs Total Fair Value Assets Liabilities Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments: Foreign exchange contracts (a) $ — $ — $ 7 $ 20 $ 7 $ 20 Cross-currency contracts (b) — — 200 88 200 88 Derivatives not designated as hedging instruments: Commodity contracts (c) 42 6 — 2 42 8 Foreign exchange contracts (a) — — 6 3 6 3 Total fair value $ 42 $ 6 $ 213 $ 113 $ 255 $ 119 (a) At December 28, 2019, the fair value of derivative assets was recorded in other current assets ($12 million) and other current non-current assets ($1 million), and the fair value of derivative liabilities was recorded in other current liabilities. (b) At December 28, 2019, the fair value of derivative assets was recorded in other non-current assets and the fair value of derivative liabilities was recorded within other non-current liabilities. (c) At December 28, 2019, the fair value of derivative assets was recorded in other current assets and the fair value of derivative liabilities was recorded within 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) For the Three Months Ended March 28, 2020 March 30, 2019 Cash flow hedges: Foreign exchange contracts $ 1 $ (1) Net sales Foreign exchange contracts 72 (19) Cost of products sold Foreign exchange contracts (excluded component) (1) (1) Cost of products sold Foreign exchange contracts — (22) Other expense/(income) Cross-currency contracts 41 24 Other expense/(income) Cross-currency contracts (excluded component) 6 7 Other expense/(income) Net investment hedges: Foreign exchange contracts 2 9 Other expense/(income) Foreign exchange contracts (excluded component) (1) (1) Interest expense Cross-currency contracts 186 (72) Other expense/(income) Cross-currency contracts (excluded component) 8 7 Interest expense Total gains/(losses) recognized in statements of comprehensive income $ 314 $ (69) |
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): For the Three Months Ended March 28, 2020 March 30, 2019 Cost of products sold Interest expense Other expense/ (income) Cost of products sold Interest expense Other expense/ (income) Total amounts presented in the condensed consolidated statements of income in which the following effects were recorded $ 4,299 $ 310 $ (81) $ 3,948 $ 321 $ (380) Gains/(losses) related to derivatives designated as hedging instruments: Cash flow hedges: Foreign exchange contracts $ 1 $ — $ — $ 9 $ — $ (22) Foreign exchange contracts (excluded component) — — — (1) — — Interest rate contracts — (1) — — (1) — Cross-currency contracts — — 3 — — 20 Cross-currency contracts (excluded component) — — 7 — — 7 Net investment hedges: Foreign exchange contracts — — — — — (6) Foreign exchange contracts (excluded component) — — — — (1) — Cross-currency contracts (excluded component) — 8 — — 7 — Gains/(losses) related to derivatives not designated as hedging instruments: Commodity contracts (150) — — 21 — — Foreign exchange contracts — — (28) — — 8 Cross-currency contracts — — — — — 4 Total gains/(losses) recognized in statements of income $ (149) $ 7 $ (18) $ 29 $ 5 $ 11 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income/(Losses) (Tables) - AOCI Attributable to Parent | 3 Months Ended |
Mar. 28, 2020 | |
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 (776) — — (776) Net deferred gains/(losses) on net investment hedges 166 — — 166 Amounts excluded from the effectiveness assessment of net investment hedges 5 — — 5 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (6) — — (6) Net deferred gains/(losses) on cash flow hedges — — 101 101 Amounts excluded from the effectiveness assessment of cash flow hedges — — 5 5 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) — — (10) (10) Net postemployment benefit losses/(gains) reclassified to net income/(loss) — (25) — (25) Total other comprehensive income/(loss) (611) (25) 96 (540) Balance as of March 28, 2020 $ (2,841) $ 278 $ 137 $ (2,426) |
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): For the Three Months Ended March 28, 2020 March 30, 2019 Before Tax Amount Tax Net of Tax Amount Before Tax Amount Tax Net of Tax Amount Foreign currency translation adjustments $ (776) $ — $ (776) $ 207 $ — $ 207 Net deferred gains/(losses) on net investment hedges 222 (56) 166 (19) 5 (14) Amounts excluded from the effectiveness assessment of net investment hedges 7 (2) 5 6 (2) 4 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (8) 2 (6) — 2 2 Net deferred gains/(losses) on cash flow hedges 114 (13) 101 (18) 2 (16) Amounts excluded from the effectiveness assessment of cash flow hedges 5 — 5 6 — 6 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) (10) — (10) (12) 4 (8) Net actuarial gains/(losses) arising during the period — — — (1) 1 — Net postemployment benefit losses/(gains) reclassified to net income/(loss) (34) 9 (25) (78) 20 (58) |
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 For the Three Months Ended March 28, 2020 March 30, 2019 Losses/(gains) on net investment hedges: Foreign exchange contracts(a) $ — $ 6 Other expense/(income) Foreign exchange contracts(b) — 1 Interest expense Cross-currency contracts(b) (8) (7) Interest expense Losses/(gains) on cash flow hedges: Foreign exchange contracts(c) (1) (8) Cost of products sold Foreign exchange contracts(c) — 22 Other expense/(income) Cross-currency contracts(b) (10) (27) Other expense/(income) Interest rate contracts(d) 1 1 Interest expense Losses/(gains) on hedges before income taxes (18) (12) Losses/(gains) on hedges, income taxes 2 6 Losses/(gains) on hedges $ (16) $ (6) Losses/(gains) on postemployment benefits: Amortization of unrecognized losses/(gains)(e) $ (3) $ (2) Amortization of prior service costs/(credits)(e) (31) (77) Other losses/(gains) on postemployment benefits — 1 Losses/(gains) on postemployment benefits before income taxes (34) (78) Losses/(gains) on postemployment benefits, income taxes 9 20 Losses/(gains) on postemployment benefits $ (25) $ (58) (a) Represents the reclassification of hedge losses/(gains) resulting from the complete or substantially complete liquidation of our investment in the underlying foreign operations. (b) Represents recognition of the excluded component in net income/(loss). (c) Includes amortization of the excluded component and the effective portion of the related hedges. (d) Represents amortization of realized hedge losses that were deferred into accumulated other comprehensive income/(losses) through the maturity of the related long-term debt instruments. (e) These components are included in the computation of net periodic postemployment benefit costs. See Note 11, Postemployment Benefits , for additional information. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Common Share, Basic and Diluted | Our earnings per common share (“EPS”) were: For the Three Months Ended March 28, 2020 March 30, 2019 (in millions, except per share data) Basic Earnings Per Common Share: Net income/(loss) attributable to common shareholders $ 378 $ 405 Weighted average shares of common stock outstanding 1,222 1,220 Net earnings/(loss) $ 0.31 $ 0.33 Diluted Earnings Per Common Share: Net income/(loss) attributable to common shareholders $ 378 $ 405 Weighted average shares of common stock outstanding 1,222 1,220 Effect of dilutive equity awards 2 4 Weighted average shares of common stock outstanding, including dilutive effect 1,224 1,224 Net earnings/(loss) $ 0.31 $ 0.33 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Segment Reporting [Abstract] | |
Net Sales by Segment | Net sales by segment were (in millions): For the Three Months Ended March 28, 2020 March 30, 2019 Net sales: United States $ 4,495 $ 4,224 International 1,301 1,285 Canada 361 450 Total net sales $ 6,157 $ 5,959 |
Segment Adjusted EBITDA | Segment Adjusted EBITDA was (in millions): For the Three Months Ended March 28, 2020 March 30, 2019 Segment Adjusted EBITDA: United States $ 1,209 $ 1,139 International 245 238 Canada 55 121 General corporate expenses (94) (67) Depreciation and amortization (excluding integration and restructuring expenses) (243) (234) Integration and restructuring expenses — (27) Deal costs — (8) Unrealized gains/(losses) on commodity hedges (143) 29 Impairment losses (226) (620) Equity award compensation expense (excluding integration and restructuring expenses) (33) (9) Operating income/(loss) 770 562 Interest expense 310 321 Other expense/(income) (81) (380) Income/(loss) before income taxes $ 541 $ 621 |
Net Sales by Product Category | Net sales by product category were (in millions): For the Three Months Ended March 28, 2020 March 30, 2019 Condiments and sauces $ 1,581 $ 1,513 Cheese and dairy 1,139 1,194 Ambient foods 716 598 Frozen and chilled foods 648 605 Meats and seafood 590 587 Refreshment beverages 389 357 Coffee 275 308 Infant and nutrition 113 129 Desserts, toppings and baking 204 194 Nuts and salted snacks 250 225 Other 252 249 Total net sales $ 6,157 $ 5,959 |
Other Income and Expenses (Tabl
Other Income and Expenses (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expense/(Income) | Other expense/(income) consists of the following (in millions): For the Three Months Ended March 28, 2020 March 30, 2019 Amortization of prior service costs/(credits) $ (31) $ (77) Net pension and postretirement non-service cost/(benefit) (a) (43) (43) Loss/(gain) on sale of business 2 (246) Interest income (9) (6) Foreign exchange loss/(gain) (17) 4 Other miscellaneous expense/(income) 17 (12) Other expense/(income) $ (81) $ (380) (a) Excludes amortization of prior service costs/(credits). |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
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 March 28, 2020 (in millions) (Unaudited) Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 4,227 $ 2,036 $ (106) $ 6,157 Cost of products sold — 2,911 1,494 (106) 4,299 Gross profit — 1,316 542 — 1,858 Selling, general and administrative expenses, excluding impairment losses — 239 623 — 862 Goodwill impairment losses — — 226 — 226 Selling, general and administrative expenses — 239 849 — 1,088 Intercompany service fees and other recharges — 729 (729) — — Operating income/(loss) — 348 422 — 770 Interest expense — 291 19 — 310 Other expense/(income) — (91) 10 — (81) Income/(loss) before income taxes — 148 393 — 541 Provision for/(benefit from) income taxes — 28 132 — 160 Equity in earnings/(losses) of subsidiaries 378 258 — (636) — Net income/(loss) 378 378 261 (636) 381 Net income/(loss) attributable to noncontrolling interest — — 3 — 3 Net income/(loss) excluding noncontrolling interest $ 378 $ 378 $ 258 $ (636) $ 378 Comprehensive income/(loss) excluding noncontrolling interest $ (162) $ (162) $ (372) $ 534 $ (162) The Kraft Heinz Company Condensed Consolidating Statements of Income For the Three Months Ended March 30, 2019 (in millions) (Unaudited) Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 4,004 $ 2,066 $ (111) $ 5,959 Cost of products sold — 2,572 1,487 (111) 3,948 Gross profit — 1,432 579 — 2,011 Selling, general and administrative expenses, excluding impairment losses — 221 608 — 829 Goodwill impairment losses — — 620 — 620 Selling, general and administrative expenses — 221 1,228 — 1,449 Intercompany service fees and other recharges — 841 (841) — — Operating income/(loss) — 370 192 — 562 Interest expense — 300 21 — 321 Other expense/(income) — 8 (388) — (380) Income/(loss) before income taxes — 62 559 — 621 Provision for/(benefit from) income taxes — 36 181 — 217 Equity in earnings/(losses) of subsidiaries 405 379 — (784) — Net income/(loss) 405 405 378 (784) 404 Net income/(loss) attributable to noncontrolling interest — — (1) — (1) Net income/(loss) excluding noncontrolling interest $ 405 $ 405 $ 379 $ (784) $ 405 Comprehensive income/(loss) excluding noncontrolling interest $ 528 $ 528 $ 528 $ (1,056) $ 528 |
Condensed Consolidating Balance Sheets | The Kraft Heinz Company Condensed Consolidating Balance Sheets As of March 28, 2020 (in millions) (Unaudited) Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ — $ 4,605 $ 798 $ — $ 5,403 Trade receivables, net — 1,146 1,175 — 2,321 Receivables due from affiliates — 296 290 (586) — Inventories — 1,901 930 — 2,831 Short-term lending due from affiliates — 1,432 4,487 (5,919) — Prepaid expenses — 321 164 — 485 Other current assets — 895 289 (649) 535 Assets held for sale — 13 120 — 133 Total current assets — 10,609 8,253 (7,154) 11,708 Property, plant and equipment, net — 4,353 2,460 — 6,813 Goodwill — 11,067 23,995 — 35,062 Investments in subsidiaries 51,009 66,007 — (117,016) — Intangible assets, net — 2,826 45,433 — 48,259 Long-term lending due from affiliates — 207 2,000 (2,207) — Other non-current assets — 950 1,281 — 2,231 TOTAL ASSETS $ 51,009 $ 96,019 $ 83,422 $ (126,377) $ 104,073 LIABILITIES AND EQUITY Commercial paper and other short-term debt $ — $ 5 $ 1 $ — $ 6 Current portion of long-term debt — 870 372 — 1,242 Short-term lending due to affiliates — 4,487 1,432 (5,919) — Trade payables — 2,453 1,503 — 3,956 Payables due to affiliates — 290 296 (586) — Accrued marketing — 240 441 — 681 Interest payable — 370 4 — 374 Other current liabilities — 1,507 806 (649) 1,664 Liabilities held for sale — 1 10 — 11 Total current liabilities — 10,223 4,865 (7,154) 7,934 Long-term debt — 31,229 302 — 31,531 Long-term borrowings due to affiliates — 2,000 207 (2,207) — Deferred income taxes — 1,373 10,466 — 11,839 Accrued postemployment costs — 28 222 — 250 Other non-current liabilities — 157 1,238 — 1,395 TOTAL LIABILITIES — 45,010 17,300 (9,361) 52,949 Redeemable noncontrolling interest — — — — — Total shareholders’ equity 51,009 51,009 66,007 (117,016) 51,009 Noncontrolling interest — — 115 — 115 TOTAL EQUITY 51,009 51,009 66,122 (117,016) 51,124 TOTAL LIABILITIES AND EQUITY $ 51,009 $ 96,019 $ 83,422 $ (126,377) $ 104,073 The Kraft Heinz Company Condensed Consolidating Balance Sheets As of December 28, 2019 (in millions) (Unaudited) 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) — 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 — 983 336 (701) 618 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 |
Condensed Consolidating Statements of Cash Flows | The Kraft Heinz Company Condensed Consolidating Statements of Cash Flows For the Three Months Ended March 28, 2020 (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 $ 488 $ (19) $ 231 $ (488) $ 212 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures — (61) (70) — (131) Net proceeds from/(payments on) intercompany lending activities — 352 198 (550) — Additional investments in subsidiaries (11) 12 — (1) — Other investing activities, net — 7 2 — 9 Net cash provided by/(used for) investing activities (11) 310 130 (551) (122) CASH FLOWS FROM FINANCING ACTIVITIES Repayments of long-term debt — (406) (1) — (407) Proceeds from revolving credit facility — 4,000 — — 4,000 Net proceeds from/(payments on) intercompany borrowing activities — (198) (352) 550 — Dividends paid (488) (488) — 488 (488) Other intercompany capital stock transactions — 11 (12) 1 — Other financing activities, net 11 (9) (2) — — Net cash provided by/(used for) financing activities (477) 2,910 (367) 1,039 3,105 Effect of exchange rate changes on cash, cash equivalents, and restricted cash — — (71) — (71) Cash, cash equivalents, and restricted cash: Net increase/(decrease) — 3,201 (77) — 3,124 Balance at beginning of period — 1,404 876 — 2,280 Balance at end of period $ — $ 4,605 $ 799 $ — $ 5,404 The Kraft Heinz Company Condensed Consolidating Statements of Cash Flows For the Three Months Ended March 30, 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 $ 488 $ 270 $ 34 $ (488) $ 304 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures — (113) (136) — (249) Payments to acquire business, net of cash acquired — (202) 2 — (200) Net proceeds from/(payments on) intercompany lending activities — 720 22 (742) — Additional investments in subsidiaries — (29) — 29 — Proceeds from sale of business, net of cash disposed — — 640 — 640 Other investing activities, net — 4 (18) — (14) Net cash provided by/(used for) investing activities — 380 510 (713) 177 CASH FLOWS FROM FINANCING ACTIVITIES Repayments of long-term debt — — (1) — (1) Proceeds from issuance of commercial paper — 377 — — 377 Repayments of commercial paper — (377) — — (377) Net proceeds from/(payments on) intercompany borrowing activities — (22) (720) 742 — Dividends paid (488) (488) — 488 (488) Other intercompany capital stock transactions — — 29 (29) — Other financing activities, net — 7 (22) — (15) Net cash provided by/(used for) financing activities (488) (503) (714) 1,201 (504) Effect of exchange rate changes on cash, cash equivalents, and restricted cash — — (11) — (11) Cash, cash equivalents, and restricted cash: Net increase/(decrease) — 147 (181) — (34) Balance at beginning of period — 202 934 — 1,136 Balance at end of period $ — $ 349 $ 753 $ — $ 1,102 |
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): March 28, 2020 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Eliminations Consolidated Cash and cash equivalents $ — $ 4,605 $ 798 $ — $ 5,403 Restricted cash included in other current assets — — 1 — 1 Cash, cash equivalents, and restricted cash $ — $ 4,605 $ 799 $ — $ 5,404 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 Cash, cash equivalents, and restricted cash $ — $ 1,404 $ 876 $ — $ 2,280 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 3 Months Ended |
Mar. 28, 2020segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 3 |
Additional Information - Proper
Additional Information - Property, Plant and Equipment (Details) | 3 Months Ended |
Mar. 28, 2020 | |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life | 20 years |
Building and building improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life | 40 years |
Software and software development costs | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life | 7 years |
Acquisitions and Divestitures A
Acquisitions and Divestitures Additional Information (Details) $ in Millions, ₨ in Billions, $ in Billions | Jul. 02, 2019USD ($) | Jan. 30, 2019USD ($) | Nov. 30, 2018CAD ($) | Oct. 31, 2018INR (₨)third-party | Mar. 28, 2020USD ($) | Dec. 28, 2019USD ($) | Sep. 28, 2019USD ($) | Mar. 30, 2019USD ($) | Sep. 28, 2019USD ($) | Dec. 28, 2019USD ($) | Jan. 03, 2019 |
Business Acquisition [Line Items] | |||||||||||
Deal costs | $ 0 | $ 8 | |||||||||
Gains/(losses) on sale of business | (2) | 246 | |||||||||
First potential disposition | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Gains/(losses) on sale of business | $ (71) | ||||||||||
Heinz India | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of third-parties | third-party | 2 | ||||||||||
Sale of stock, percentage of ownership before transaction | 100.00% | ||||||||||
Proceeds from sale of business | $ 655 | ₨ 46 | |||||||||
Gains/(losses) on sale of business | $ 3 | 246 | $ 249 | ||||||||
Other adjustments, Heinz India transaction | 1 | ||||||||||
Tax indemnity liabilities | $ 48 | ||||||||||
Canada Natural Cheese | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Proceeds from sale of business | $ 1,200 | $ 1.6 | |||||||||
Second potential disposition | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Gains/(losses) on sale of business | (3) | ||||||||||
Primal Nutrition | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percent acquired | 100.00% | ||||||||||
Total consideration paid | $ 201 | ||||||||||
Deal costs | 2 | ||||||||||
Expected tax deductible goodwill | $ 124 | $ 124 | |||||||||
Acquisitions | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Deal costs | 0 | ||||||||||
Divestitures | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Deal costs | $ 0 | $ 6 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures Assets and Liabilities Held for Sale by Major Class (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Dec. 28, 2019 |
Business Combinations [Abstract] | ||
Cash and cash equivalents | $ 26 | $ 27 |
Inventories | 28 | 21 |
Property, plant and equipment, net | 33 | 25 |
Intangible assets, net | 21 | 23 |
Other | 25 | 26 |
Total assets held for sale | 133 | 122 |
Trade payables | 3 | 3 |
Other | 8 | 6 |
Total liabilities held for sale | $ 11 | $ 9 |
Restructuring Activities Additi
Restructuring Activities Additional Information (Details) $ in Millions | 3 Months Ended | |
Mar. 28, 2020USD ($)employee | Mar. 30, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | $ 0 | $ 27 |
Restructuring Activities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, number of positions eliminated | employee | 80 | |
Restructuring and related cost, expected number of positions eliminated | employee | 250 | |
Restructuring and related cost, incurred cost (credit) | $ 27 | |
Restructuring Activities | Severance and Employee Benefit Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | $ (3) | |
Restructuring Activities | Other Implementation Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | 2 | |
Restructuring Activities | Other Exit Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | $ 1 |
Restructuring Activities Restru
Restructuring Activities Restructuring Reserve Roll-forward (Details) - Restructuring Activities $ in Millions | 3 Months Ended |
Mar. 28, 2020USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 46 |
Charges/(credits) | (2) |
Cash payments | (8) |
Ending balance | 36 |
Severance and Employee Benefit Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 22 |
Charges/(credits) | (3) |
Cash payments | (7) |
Ending balance | 12 |
Other Exit Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 24 |
Charges/(credits) | 1 |
Cash payments | (1) |
Ending balance | $ 24 |
Restructuring Activities Rest_2
Restructuring Activities Restructuring Costs by Type and Income Statement Location (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | $ 0 | $ 27 |
Severance and Employee Benefit Costs | Cost of products sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | 1 | 0 |
Severance and Employee Benefit Costs | selling, general, and administrative expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | (4) | 1 |
Asset-Related Costs | Cost of products sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | 0 | 2 |
Asset-Related Costs | selling, general, and administrative expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | 0 | 7 |
Other Costs | Cost of products sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | 0 | 7 |
Other Costs | selling, general, and administrative expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | $ 3 | $ 10 |
Restructuring Activities Rest_3
Restructuring Activities Restructuring Costs Excluded from Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Segment Reporting Information [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | $ 0 | $ 27 |
United States | ||
Segment Reporting Information [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | 0 | 19 |
International | ||
Segment Reporting Information [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | (1) | 4 |
Canada | ||
Segment Reporting Information [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | 1 | 2 |
General corporate expenses | ||
Segment Reporting Information [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | $ 0 | $ 2 |
Restricted Cash Reconciliation
Restricted Cash Reconciliation from Cash and Cash Equivalents to Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 5,403 | $ 2,279 | ||
Restricted cash included in other current assets | 1 | 1 | ||
Cash, cash equivalents, and restricted cash | 5,404 | $ 1,102 | $ 2,280 | $ 1,136 |
Senior unsecured revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Maximum amount of revolving credit facility outstanding during the period | $ 4,000 | $ 0 |
Inventories Components of Inven
Inventories Components of Inventories (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Dec. 28, 2019 |
Inventory Disclosure [Abstract] | ||
Packaging and ingredients | $ 666 | $ 511 |
Work in process | 377 | 364 |
Finished products | 1,788 | 1,846 |
Inventories | $ 2,831 | $ 2,721 |
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 | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 35,546 | |
Impairment losses | (226) | $ (620) |
Translation adjustments and other | (258) | |
Ending balance | 35,062 | |
United States | ||
Goodwill [Roll Forward] | ||
Beginning balance | 29,647 | |
Impairment losses | 0 | |
Translation adjustments and other | 0 | |
Ending balance | 29,647 | |
International | ||
Goodwill [Roll Forward] | ||
Beginning balance | 3,355 | |
Impairment losses | (226) | $ (620) |
Translation adjustments and other | (94) | |
Ending balance | 3,035 | |
Canada | ||
Goodwill [Roll Forward] | ||
Beginning balance | 2,544 | |
Impairment losses | 0 | |
Translation adjustments and other | (164) | |
Ending balance | $ 2,380 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets Goodwill - Additional Information (Details) $ in Millions | Mar. 31, 2019USD ($)goodwill_reporting_unit | Mar. 28, 2020USD ($)goodwill_reporting_unitsegment | Dec. 28, 2019USD ($)goodwill_reporting_unit | Mar. 30, 2019USD ($)goodwill_reporting_unit | Dec. 29, 2019USD ($)employee |
Goodwill [Line Items] | |||||
Number of reportable segments | segment | 3 | ||||
Number of reporting units | goodwill_reporting_unit | 15 | ||||
Impairment losses | $ 226 | $ 620 | |||
Goodwill | 35,062 | $ 35,546 | |||
Goodwill, impaired, accumulated impairment loss | (8,400) | ||||
International | |||||
Goodwill [Line Items] | |||||
Change in goodwill allocation, carrying amount | (46) | ||||
Impairment losses | 226 | $ 620 | |||
Goodwill | 3,035 | 3,355 | |||
Number of reporting units requiring impairment | employee | 2 | ||||
United States | |||||
Goodwill [Line Items] | |||||
Change in goodwill allocation, carrying amount | 46 | ||||
Impairment losses | 0 | ||||
Goodwill | $ 29,647 | 29,647 | |||
Reporting unit, goodwill balance held | |||||
Goodwill [Line Items] | |||||
Number of reporting units | goodwill_reporting_unit | 10 | ||||
Reporting unit, fair value below carrying amount | |||||
Goodwill [Line Items] | |||||
Number of reporting units | goodwill_reporting_unit | 3 | ||||
Impairment losses | $ 226 | ||||
Latin America Exports | Rest of World | |||||
Goodwill [Line Items] | |||||
Impairment losses | $ 129 | ||||
Goodwill | $ 195 | ||||
Northern Europe and Benelux | EMEA | Minimum | |||||
Goodwill [Line Items] | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 20.00% | ||||
Northern Europe and Benelux | EMEA | Maximum | |||||
Goodwill [Line Items] | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 50.00% | ||||
Greater China | Rest of World | |||||
Goodwill [Line Items] | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 50.00% | ||||
Australia, New Zealand, and Japan | International | |||||
Goodwill [Line Items] | |||||
Impairment losses | 83 | ||||
Latin America | International | |||||
Goodwill [Line Items] | |||||
Impairment losses | $ 143 | ||||
Northern Europe | International | Minimum | |||||
Goodwill [Line Items] | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 20.00% | ||||
Northern Europe | International | Maximum | |||||
Goodwill [Line Items] | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 50.00% | ||||
EMEA East | EMEA | |||||
Goodwill [Line Items] | |||||
Impairment losses | 286 | ||||
Brazil | Rest of World | |||||
Goodwill [Line Items] | |||||
Impairment losses | $ 205 | ||||
Puerto Rico | United States | |||||
Goodwill [Line Items] | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 10.00% | ||||
Asia | International | |||||
Goodwill [Line Items] | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 50.00% | ||||
Northern Europe and Continental Europe | |||||
Goodwill [Line Items] | |||||
Number of reporting units | goodwill_reporting_unit | 2 | ||||
Pre-reorganization, number of reporting units with reassignment of assets and liabilities | |||||
Goodwill [Line Items] | |||||
Number of reporting units | goodwill_reporting_unit | 5 | ||||
Latin America Exports and Northeast Asia | |||||
Goodwill [Line Items] | |||||
Number of reporting units | goodwill_reporting_unit | 2 | ||||
Northern Europe and Benelux, Continental Europe, and Greater China | |||||
Goodwill [Line Items] | |||||
Number of reporting units | goodwill_reporting_unit | 3 | ||||
Post-reorganization impairment test [Member] | |||||
Goodwill [Line Items] | |||||
Number of reporting units | goodwill_reporting_unit | 6 | ||||
Seven Reporting Units | |||||
Goodwill [Line Items] | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 10.00% | ||||
One Reporting Unit | Minimum | |||||
Goodwill [Line Items] | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 20.00% | ||||
One Reporting Unit | Maximum | |||||
Goodwill [Line Items] | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 50.00% | ||||
Two Reporting Units | |||||
Goodwill [Line Items] | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 50.00% | ||||
10% or less | Reporting unit, goodwill balance held | |||||
Goodwill [Line Items] | |||||
Number of reporting units | goodwill_reporting_unit | 7 | ||||
10% or less | Puerto Rico | United States | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 58 | ||||
10% or less | U.S. Foodservice and Canada Foodservice | |||||
Goodwill [Line Items] | |||||
Number of reporting units | goodwill_reporting_unit | 2 | ||||
Goodwill | $ 4,300 | ||||
10 to 20% | Northeast Asia | Rest of World | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 83 | ||||
20 to 50% | Reporting unit, goodwill balance held | |||||
Goodwill [Line Items] | |||||
Number of reporting units | goodwill_reporting_unit | 1 | ||||
20 to 50% | Northern Europe and Benelux | EMEA | |||||
Goodwill [Line Items] | |||||
Goodwill | 2,100 | ||||
20 to 50% | Northern Europe | International | |||||
Goodwill [Line Items] | |||||
Goodwill | 1,700 | ||||
In Excess of 50% | Reporting unit, goodwill balance held | |||||
Goodwill [Line Items] | |||||
Number of reporting units | goodwill_reporting_unit | 2 | ||||
In Excess of 50% | Continental Europe | International | |||||
Goodwill [Line Items] | |||||
Goodwill | 920 | ||||
In Excess of 50% | Continental Europe | EMEA | |||||
Goodwill [Line Items] | |||||
Goodwill | 567 | ||||
In Excess of 50% | Greater China | Rest of World | |||||
Goodwill [Line Items] | |||||
Goodwill | 321 | ||||
In Excess of 50% | Asia | International | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 321 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets Changes in the Carrying Amount of Indefinite-Lived Intangible Assets (Details) $ in Millions | 3 Months Ended |
Mar. 28, 2020USD ($) | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Beginning balance | $ 43,400 |
Translation adjustments | (280) |
Ending balance | $ 43,120 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets Indefinite-Lived Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Indefinite-lived intangible assets | $ 43,120 | $ 43,400 |
Impairment losses | $ 0 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets Definite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Dec. 28, 2019 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross | $ 6,508 | $ 6,570 |
Accumulated amortization | (1,369) | (1,318) |
Net | 5,139 | 5,252 |
Trademarks | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross | 2,419 | 2,443 |
Accumulated amortization | (492) | (469) |
Net | 1,927 | 1,974 |
Customer-related assets | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross | 4,075 | 4,113 |
Accumulated amortization | (874) | (845) |
Net | 3,201 | 3,268 |
Other | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross | 14 | 14 |
Accumulated amortization | (3) | (4) |
Net | $ 11 | $ 10 |
Goodwill and Intangible Asset_8
Goodwill and Intangible Assets Definite-Lived Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 68 | $ 76 |
Amortization of definite-lived intangible assets, next twelve months | 272 | |
Amortization of definite-lived intangible assets, year two | 272 | |
Amortization of definite-lived intangible assets, year three | 272 | |
Amortization of definite-lived intangible assets, year four | 272 | |
Amortization of definite-lived intangible assets, year five | $ 272 |
Income Taxes Additional Informa
Income Taxes Additional Information (Details) | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 29.60% | 34.90% |
Employees' Stock Incentive Pl_3
Employees' Stock Incentive Plans Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 28, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, exercises in period, intrinsic value | $ 2 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Equity instruments other than options, vested in period, fair value | $ 2 |
Employees' Stock Incentive Pl_4
Employees' Stock Incentive Plans Schedule of Stock Option Activity and Related Information (Details) | 3 Months Ended |
Mar. 28, 2020$ / sharesshares | |
Roll-forward of Stock Option Activity (in shares) | |
Beginning balance (in shares) | shares | 17,638,500 |
Forfeited (in shares) | shares | (321,960) |
Exercised (in shares) | shares | (383,295) |
Ending balance (in shares) | shares | 16,933,245 |
Stock Option Activity, Weighted Average Exercise Price [Abstract] | |
Options outstanding at period start, weighted average exercise price (in dollars per share) | $ / shares | $ 41.22 |
Options forfeited, weighted average exercise price (in dollars per share) | $ / shares | 62.91 |
Options exercised, weighted average exercise price (in dollars per share) | $ / shares | 24.78 |
Options outstanding at period end, weighted average exercise price (in dollars per share) | $ / shares | $ 41.16 |
Employees' Stock Incentive Pl_5
Employees' Stock Incentive Plans Schedule of RSU Activity and Related Information (Details) - RSUs | 3 Months Ended |
Mar. 28, 2020$ / sharesshares | |
Roll-forward of RSU Activity (in shares) | |
Beginning balance (in shares) | shares | 9,395,909 |
Granted (in shares) | shares | 1,488,962 |
Forfeited (in shares) | shares | (356,717) |
Vested (in shares) | shares | (52,786) |
Ending balance (in shares) | shares | 10,475,368 |
Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding at period start, weighted average grant date fair value (in dollars per share) | $ / shares | $ 33.51 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 26.07 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 34.49 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 86.70 |
Outstanding at period end, weighted average grant date fair value (in dollars per share) | $ / shares | $ 32.17 |
Employees' Stock Incentive Pl_6
Employees' Stock Incentive Plans Schedule of PSU Activity and Related Information (Details) - PSUs | 3 Months Ended |
Mar. 28, 2020$ / sharesshares | |
Roll-forward of PSU Activity (in shares) | |
Beginning balance (in shares) | shares | 6,813,659 |
Granted (in shares) | shares | 191,792 |
Forfeited (in shares) | shares | (358,356) |
Ending balance (in shares) | shares | 6,647,095 |
Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding at period start, weighted average grant date fair value (in dollars per share) | $ / shares | $ 36.03 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 22.56 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 56.63 |
Outstanding at period end, weighted average grant date fair value (in dollars per share) | $ / shares | $ 34.53 |
Postemployment Benefits Additio
Postemployment Benefits Additional Information (Details) | 3 Months Ended |
Mar. 28, 2020USD ($) | |
Pension Plans | Non-U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | $ 5,000,000 |
Estimated future employer contributions | 14,000,000 |
Pension Plans | U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | 0 |
Estimated future employer contributions | 0 |
Postretirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | 4,000,000 |
Estimated future employer contributions | $ 11,000,000 |
Postemployment Benefits Pension
Postemployment Benefits Pension Plans - Net Cost/(Benefit) (Details) - Pension Plans - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2 | $ 2 |
Interest cost | 33 | 41 |
Expected return on plan assets | (52) | (57) |
Net cost/(benefit) | (17) | (14) |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 4 | 4 |
Interest cost | 9 | 13 |
Expected return on plan assets | (26) | (37) |
Net cost/(benefit) | $ (13) | $ (20) |
Postemployment Benefits Postret
Postemployment Benefits Postretirement Benefit Plans - Net Cost/(Benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Amortization of prior service costs/(credits) | $ (31) | $ (77) |
Postretirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2 | 1 |
Interest cost | 8 | 12 |
Expected return on plan assets | (12) | (13) |
Amortization of prior service costs/(credits) | (31) | (77) |
Amortization of unrecognized losses/(gains) | (3) | (2) |
Net cost/(benefit) | $ (36) | $ (79) |
Financial Instruments Schedule
Financial Instruments Schedule of Notional Values of Outstanding Derivatives (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Dec. 28, 2019 |
Commodity contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 772 | $ 475 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 2,495 | 3,045 |
Cross-currency contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 4,035 | $ 4,035 |
Financial Instruments Schedul_2
Financial Instruments Schedule of Derivative Fair Values (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Dec. 28, 2019 |
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | $ 457 | $ 255 |
Derivative liability, fair value, gross liability | 191 | 119 |
Foreign exchange contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 58 | 7 |
Derivative liability, fair value, gross liability | 4 | 20 |
Foreign exchange contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 11 | 6 |
Derivative liability, fair value, gross liability | 40 | 3 |
Cross-currency contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 378 | 200 |
Derivative liability, fair value, gross liability | 27 | 88 |
Commodity contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 10 | 42 |
Derivative liability, fair value, gross liability | 120 | 8 |
Level 1 | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 10 | 42 |
Derivative liability, fair value, gross liability | 104 | 6 |
Level 1 | Foreign exchange contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 0 | 0 |
Derivative liability, fair value, gross liability | 0 | 0 |
Level 1 | Foreign exchange contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 0 | 0 |
Derivative liability, fair value, gross liability | 0 | 0 |
Level 1 | Cross-currency contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 0 | 0 |
Derivative liability, fair value, gross liability | 0 | 0 |
Level 1 | Commodity contracts | Other current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 9 | |
Level 1 | Commodity contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 10 | 42 |
Derivative liability, fair value, gross liability | 104 | 6 |
Level 2 | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 447 | 213 |
Derivative liability, fair value, gross liability | 87 | 113 |
Level 2 | Foreign exchange contracts | Other current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 58 | 12 |
Level 2 | Foreign exchange contracts | Other non-current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 11 | 1 |
Level 2 | Foreign exchange contracts | Other current liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | 43 | |
Level 2 | Foreign exchange contracts | Other non-current liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | 1 | |
Level 2 | Foreign exchange contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 58 | 7 |
Derivative liability, fair value, gross liability | 4 | 20 |
Level 2 | Foreign exchange contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 11 | 6 |
Derivative liability, fair value, gross liability | 40 | 3 |
Level 2 | Cross-currency contracts | Other non-current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 378 | 200 |
Level 2 | Cross-currency contracts | Other non-current liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | 27 | 88 |
Level 2 | Cross-currency contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 378 | 200 |
Derivative liability, fair value, gross liability | 27 | 88 |
Level 2 | Commodity contracts | Other non-current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 1 | |
Level 2 | Commodity contracts | Other current liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | 109 | |
Level 2 | Commodity contracts | Other non-current liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | 11 | |
Level 2 | Commodity contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 0 | 0 |
Derivative liability, fair value, gross liability | $ 16 | $ 2 |
Financial Instruments Additiona
Financial Instruments Additional Information (Details) € in Millions, ¥ in Millions, £ in Millions, $ in Millions, $ in Billions | 3 Months Ended | |||||||
Mar. 28, 2020USD ($) | Mar. 30, 2019USD ($) | Mar. 28, 2020JPY (¥) | Mar. 28, 2020CAD ($) | Mar. 28, 2020EUR (€) | Mar. 28, 2020USD ($) | Mar. 28, 2020GBP (£) | Dec. 28, 2019USD ($) | |
Derivative [Line Items] | ||||||||
Derivative, collateral, obligation to return cash | $ 77 | $ 108 | ||||||
Derivative, collateral, right to reclaim cash | 77 | 108 | ||||||
Collateral posted related to commodity derivative margin requirements, asset | 90 | |||||||
Collateral posted related to commodity derivative margin requirements, liability | 25 | |||||||
Cash flow hedges gain (loss) to be reclassified within twelve months | $ 34 | |||||||
Level 1 | Money market funds | ||||||||
Derivative [Line Items] | ||||||||
Fair value of money market funds | 3,300 | $ 94 | ||||||
Cross-currency contracts | ||||||||
Derivative [Line Items] | ||||||||
Maximum length of time hedged in cash flow hedge | 4 years | |||||||
Foreign exchange contracts | ||||||||
Derivative [Line Items] | ||||||||
Maximum length of time hedged in cash flow hedge | 2 years | |||||||
Designated as hedging instrument | Debt | Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Non-derivative instruments, loss (gain) recognized in other comprehensive income (loss), net | $ (34) | $ (44) | ||||||
Designated as hedging instrument | Debt | Euro Member Countries, Euro | Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Derivative, amount of hedged item | € | € 2,550 | |||||||
Designated as hedging instrument | Debt | United Kingdom, Pounds | Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Derivative, amount of hedged item | £ | £ 400 | |||||||
Designated as hedging instrument | Cross-currency contracts | United Kingdom, Pounds | Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Derivative asset, notional amount | 1,400 | £ 1,000 | ||||||
Designated as hedging instrument | Cross-currency contracts | Canada, Dollars | Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Derivative asset, notional amount | $ 2.1 | 1,600 | ||||||
Designated as hedging instrument | Cross-currency contracts | Japan, Yen | Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Derivative asset, notional amount | ¥ 9,600 | 85 | ||||||
Designated as hedging instrument | Foreign exchange contracts | China, Yuan Renminbi | Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Derivative asset, notional amount | $ 160 | |||||||
Designated as hedging instrument | Other contract | Euro Member Countries, Euro | Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Derivative asset, notional amount | ¥ | ¥ 122 |
Financial Instruments Derivativ
Financial Instruments Derivative Impact on Statements of Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Derivative [Line Items] | ||
Other comprehensive income (loss), derivatives, gain (loss), before reclassification and tax | $ 314 | $ (69) |
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) |
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 | 72 | (19) |
Amounts excluded from the effectiveness assessment of cash flow hedges, before tax | (1) | (1) |
Cash Flow Hedging | Other expense/(income) | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gains/(losses) recognized in other comprehensive income (loss) on cash flow hedges, before tax | 0 | (22) |
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 | 41 | 24 |
Amounts excluded from the effectiveness assessment of cash flow hedges, before tax | 6 | 7 |
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 | 2 | 9 |
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 | 186 | (72) |
Net Investment Hedging | Interest expense | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Amounts excluded from the effectiveness assessment of net investment hedges, before tax | (1) | (1) |
Net Investment Hedging | Interest expense | Cross-currency contracts | ||
Derivative [Line Items] | ||
Amounts excluded from the effectiveness assessment of net investment hedges, before tax | $ 8 | $ 7 |
Financial Instruments Derivat_2
Financial Instruments Derivative Impact on Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Total amounts presented in the condensed consolidated statements of income in which the following effects were recorded | ||
Cost of products sold | $ 4,299 | $ 3,948 |
Interest expense | 310 | 321 |
Other expense/(income) | (81) | (380) |
Cost of products sold | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | (149) | 29 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | (149) | 29 |
Interest expense | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 7 | 5 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 7 | 5 |
Other expense/(income) | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | (18) | 11 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | (18) | 11 |
Not designated as hedging instrument | Cost of products sold | Foreign exchange contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
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 | Cross-currency contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
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 | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | (150) | 21 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | (150) | 21 |
Not designated as hedging instrument | Interest expense | Foreign exchange contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
Not designated as hedging instrument | Interest expense | Cross-currency contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
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 | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
Not designated as hedging instrument | Other expense/(income) | Foreign exchange contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | (28) | 8 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | (28) | 8 |
Not designated as hedging instrument | Other expense/(income) | Cross-currency contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 4 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 4 |
Not designated as hedging instrument | Other expense/(income) | Commodity contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
Cash Flow Hedging | Designated as hedging instrument | Cost of products sold | Foreign exchange contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 1 | 9 |
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 0 | (1) |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 1 | 9 |
Cash Flow Hedging | Designated as hedging instrument | Cost of products sold | Interest rate contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
Cash Flow Hedging | Designated as hedging instrument | Cost of products sold | Cross-currency contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 0 | 0 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
Cash Flow Hedging | Designated as hedging instrument | Interest expense | Foreign exchange contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 0 | 0 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
Cash Flow Hedging | Designated as hedging instrument | Interest expense | Interest rate contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | (1) | (1) |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | (1) | (1) |
Cash Flow Hedging | Designated as hedging instrument | Interest expense | Cross-currency contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 0 | 0 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
Cash Flow Hedging | Designated as hedging instrument | Other expense/(income) | Foreign exchange contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | (22) |
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 0 | 0 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | (22) |
Cash Flow Hedging | Designated as hedging instrument | Other expense/(income) | Interest rate contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
Cash Flow Hedging | Designated as hedging instrument | Other expense/(income) | Cross-currency contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 3 | 20 |
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 7 | 7 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 3 | 20 |
Net Investment Hedging | Designated as hedging instrument | Cost of products sold | Foreign exchange contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 0 | 0 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
Net Investment Hedging | Designated as hedging instrument | Cost of products sold | Cross-currency contracts | ||
Derivatives designated as hedging instruments: | ||
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 0 | 0 |
Net Investment Hedging | Designated as hedging instrument | Interest expense | Foreign exchange contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 0 | (1) |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 |
Net Investment Hedging | Designated as hedging instrument | Interest expense | Cross-currency contracts | ||
Derivatives designated as hedging instruments: | ||
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 8 | 7 |
Net Investment Hedging | Designated as hedging instrument | Other expense/(income) | Foreign exchange contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | (6) |
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 0 | 0 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 0 | (6) |
Net Investment Hedging | Designated as hedging instrument | Other expense/(income) | Cross-currency contracts | ||
Derivatives designated as hedging instruments: | ||
Net gain/(loss) on derivatives, excluded component, reclassified to net income | $ 0 | $ 0 |
Components of and Changes in Ac
Components of and Changes in Accumulated Other Comprehensive Income/(Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 51,623 | |
Total other comprehensive income/(loss) | (540) | |
Ending balance | 51,009 | |
Foreign currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (2,230) | |
Other comprehensive income/(loss) before reclassifications | (776) | $ 207 |
Total other comprehensive income/(loss) | (611) | |
Ending balance | (2,841) | |
Net investment hedge adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Other comprehensive income/(loss) before reclassifications | 166 | (14) |
Amounts excluded from effectiveness assessment | 5 | 4 |
Reclassifications from AOCI | (6) | 2 |
Net cash flow hedge adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 41 | |
Other comprehensive income/(loss) before reclassifications | 101 | (16) |
Amounts excluded from effectiveness assessment | 5 | 6 |
Reclassifications from AOCI | (10) | (8) |
Total other comprehensive income/(loss) | 96 | |
Ending balance | 137 | |
Net postemployment benefit plan adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 303 | |
Reclassifications from AOCI | (25) | $ (58) |
Total other comprehensive income/(loss) | (25) | |
Ending balance | 278 | |
AOCI Attributable to Parent | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (1,886) | |
Ending balance | $ (2,426) |
Gross Amount and Related Tax Be
Gross Amount and Related Tax Benefit/(Expense) Recorded in and Associated with each Component of Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Foreign currency translation adjustments | ||
OCI Before Reclassifications | ||
Before Tax Amount | $ (776) | $ 207 |
Tax | 0 | 0 |
Net of Tax Amount | (776) | 207 |
Net investment hedge adjustments | ||
OCI Before Reclassifications | ||
Before Tax Amount | 222 | (19) |
Tax | (56) | 5 |
Net of Tax Amount | 166 | (14) |
Amounts Excluded from Effectiveness Assessment | ||
Before Tax Amount | 7 | 6 |
Tax | (2) | (2) |
Net of Tax Amount | 5 | 4 |
Reclassifications | ||
Before Tax Amount | (8) | 0 |
Tax | 2 | 2 |
Net of Tax Amount | (6) | 2 |
Net cash flow hedge adjustments | ||
OCI Before Reclassifications | ||
Before Tax Amount | 114 | (18) |
Tax | (13) | 2 |
Net of Tax Amount | 101 | (16) |
Amounts Excluded from Effectiveness Assessment | ||
Before Tax Amount | 5 | 6 |
Tax | 0 | 0 |
Net of Tax Amount | 5 | 6 |
Reclassifications | ||
Before Tax Amount | (10) | (12) |
Tax | 0 | 4 |
Net of Tax Amount | (10) | (8) |
Amortization of unrecognized losses/(gains) | ||
OCI Before Reclassifications | ||
Before Tax Amount | 0 | (1) |
Tax | 0 | 1 |
Net of Tax Amount | 0 | 0 |
Net postemployment benefit plan adjustments | ||
Reclassifications | ||
Before Tax Amount | (34) | (78) |
Tax | 9 | 20 |
Net of Tax Amount | $ (25) | $ (58) |
Amounts Reclassified from Accum
Amounts Reclassified from Accumulated Other Comprehensive Income/(Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | ||
Other expense/(income) | $ (81) | $ (380) |
Interest expense | 310 | 321 |
Cost of products sold | 4,299 | 3,948 |
Income/(loss) before income taxes | 541 | 621 |
Provision for/(benefit from) income taxes | 160 | 217 |
Net income/(loss) | 381 | 404 |
Reclassification out of Accumulated Other Comprehensive Income | Net investment hedge adjustments | Foreign exchange contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | ||
Other expense/(income) | 0 | 6 |
Interest expense | 0 | 1 |
Reclassification out of Accumulated Other Comprehensive Income | Net investment hedge adjustments | Cross-currency contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | ||
Interest expense | (8) | (7) |
Reclassification out of Accumulated Other Comprehensive Income | Net cash flow hedge adjustments | Foreign exchange contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | ||
Other expense/(income) | 0 | 22 |
Cost of products sold | (1) | (8) |
Reclassification out of Accumulated Other Comprehensive Income | Net cash flow hedge adjustments | Cross-currency contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | ||
Other expense/(income) | (10) | (27) |
Reclassification out of Accumulated Other Comprehensive Income | Net cash flow hedge adjustments | Interest rate contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | ||
Interest expense | 1 | 1 |
Reclassification out of Accumulated Other Comprehensive Income | Hedge adjustments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | ||
Income/(loss) before income taxes | 18 | 12 |
Provision for/(benefit from) income taxes | 2 | 6 |
Net income/(loss) | 16 | 6 |
Reclassification out of Accumulated Other Comprehensive Income | Net postemployment benefit plan adjustments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | ||
Income/(loss) before income taxes | 34 | 78 |
Provision for/(benefit from) income taxes | 9 | 20 |
Net income/(loss) | 25 | 58 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of unrecognized losses/(gains) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | ||
Other expense/(income) | (3) | (2) |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service costs/(credits) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | ||
Other expense/(income) | (31) | (77) |
Reclassification out of Accumulated Other Comprehensive Income | Other losses/(gains) on postemployment benefits | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | ||
Other expense/(income) | $ 0 | $ 1 |
Venezuela - Foreign Currency _2
Venezuela - Foreign Currency and Inflation Additional Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 28, 2020USD ($)ves_Per_USD | Mar. 30, 2019USD ($)ves_Per_USD | Dec. 28, 2019ves_Per_USD | |
Foreign Currency [Line Items] | |||
Nonmonetary currency devaluation losses | $ | $ 1 | $ 4 | |
Venezuelan BsS on Banco Central de Venezuela market, period end spot | |||
Foreign Currency [Line Items] | |||
Foreign currency exchange rate, translation, soberano | 77,893.46 | 45,874.81 | |
Venezuelan BsS on Banco Central de Venezuela market, year-to-date average | |||
Foreign Currency [Line Items] | |||
Foreign currency exchange rate, weighted average, translation, soberano | 73,638.07 | 2,694.69 |
Financing Arrangements Addition
Financing Arrangements Additional Information (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Dec. 28, 2019 |
Transfers and Servicing [Abstract] | ||
Other liabilities, structured payables, current | $ 214 | $ 253 |
Class Actions and Stockholder D
Class Actions and Stockholder Derivative Actions (Details) - Securities Class Action | Mar. 28, 2020employee |
Loss Contingencies [Line Items] | |
Number of current officers included in lawsuit | 1 |
Number of former officers included in lawsuit | 1 |
Number of directors included in lawsuit | 1 |
Commitments, Contingencies an_2
Commitments, Contingencies and Debt Debt Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 28, 2019 | |
Debt Instrument [Line Items] | |||
Minimum shareholder's equity required to maintain excluding accumulated other comprehensive income/(losses) | $ 35,000 | ||
Commercial paper | 0 | $ 0 | |
Repayments of long-term debt | 407 | $ 1 | |
Fair value of total debt | 31,600 | 31,100 | |
Carrying value of total debt | $ 32,800 | 29,200 | |
LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate for debt instrument | 1.25% | ||
Euro equivalent swingline facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 400 | ||
Senior unsecured revolving credit facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 4,000 | ||
Maximum amount of revolving credit facility outstanding during the period | 4,000 | 0 | |
Amount of credit facility still outstanding at period end | 4,000 | $ 0 | |
Repayments of lines of credit | 0 | ||
Senior unsecured revolving credit facility, extension agreement | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 3,900 | ||
Uncommitted revolving credit line | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 300 | ||
Amount of credit facility still outstanding at period end | 0 | ||
Commercial paper | |||
Debt Instrument [Line Items] | |||
Maximum amount of revolving credit facility outstanding during the period | 0 | $ 200 | |
Senior notes due in February 2020 | |||
Debt Instrument [Line Items] | |||
Repayments of long-term debt | $ 405 |
Earnings Per Share Schedule of
Earnings Per Share Schedule of Earnings Per Common Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Basic EPS | ||
Net income/(loss) attributable to common shareholders | $ 378 | $ 405 |
Weighted average shares of common stock outstanding (in shares) | 1,222 | 1,220 |
Basic earnings/(loss) per common share (in dollars per share) | $ 0.31 | $ 0.33 |
Diluted EPS | ||
Net income/(loss) attributable to common shareholders | $ 378 | $ 405 |
Weighted average shares of common stock outstanding (in shares) | 1,222 | 1,220 |
Effect of dilutive equity awards (in shares) | 2 | 4 |
Weighted average shares of common stock outstanding, including dilutive effect (in shares) | 1,224 | 1,224 |
Diluted earnings/(loss) per common share (in dollars per share) | $ 0.31 | $ 0.33 |
Earnings Per Share Additional I
Earnings Per Share Additional Information (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive shares | 13 | 10 |
Segment Reporting Additional In
Segment Reporting Additional Information (Details) | 3 Months Ended |
Mar. 28, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Reporting Net Sales by
Segment Reporting Net Sales by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 6,157 | $ 5,959 |
United States | ||
Segment Reporting Information [Line Items] | ||
Net sales | 4,495 | 4,224 |
International | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,301 | 1,285 |
Canada | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 361 | $ 450 |
Segment Reporting Segment Adjus
Segment Reporting Segment Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Segment Reporting Information [Line Items] | ||
Depreciation and amortization (excluding integration and restructuring expenses) | $ (243) | $ (234) |
Integration and restructuring expenses | 0 | (27) |
Deal costs | 0 | (8) |
Unrealized gains/(losses) on commodity hedges | (143) | 29 |
Impairment losses | (226) | (620) |
Equity award compensation expense (excluding integration and restructuring expenses) | (33) | (9) |
Operating income/(loss) | 770 | 562 |
Interest expense | 310 | 321 |
Other expense/(income) | (81) | (380) |
Income/(loss) before income taxes | 541 | 621 |
United States | ||
Segment Reporting Information [Line Items] | ||
Segment Adjusted EBITDA | 1,209 | 1,139 |
International | ||
Segment Reporting Information [Line Items] | ||
Segment Adjusted EBITDA | 245 | 238 |
Canada | ||
Segment Reporting Information [Line Items] | ||
Segment Adjusted EBITDA | 55 | 121 |
General corporate expenses | ||
Segment Reporting Information [Line Items] | ||
Segment Adjusted EBITDA | $ (94) | $ (67) |
Segment Reporting Net Sales b_2
Segment Reporting Net Sales by Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Revenue from External Customer [Line Items] | ||
Net sales | $ 6,157 | $ 5,959 |
Condiments and sauces | ||
Revenue from External Customer [Line Items] | ||
Net sales | 1,581 | 1,513 |
Cheese and dairy | ||
Revenue from External Customer [Line Items] | ||
Net sales | 1,139 | 1,194 |
Ambient foods | ||
Revenue from External Customer [Line Items] | ||
Net sales | 716 | 598 |
Frozen and chilled foods | ||
Revenue from External Customer [Line Items] | ||
Net sales | 648 | 605 |
Meats and seafood | ||
Revenue from External Customer [Line Items] | ||
Net sales | 590 | 587 |
Refreshment beverages | ||
Revenue from External Customer [Line Items] | ||
Net sales | 389 | 357 |
Coffee | ||
Revenue from External Customer [Line Items] | ||
Net sales | 275 | 308 |
Infant and nutrition | ||
Revenue from External Customer [Line Items] | ||
Net sales | 113 | 129 |
Desserts, toppings and baking | ||
Revenue from External Customer [Line Items] | ||
Net sales | 204 | 194 |
Nuts and salted snacks | ||
Revenue from External Customer [Line Items] | ||
Net sales | 250 | 225 |
Other | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 252 | $ 249 |
Schedule of Other Expense_(Inco
Schedule of Other Expense/(Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Other Income and Expenses [Abstract] | ||
Amortization of prior service costs/(credits) | $ (31) | $ (77) |
Net pension and postretirement non-service cost/(benefit) | (43) | (43) |
Loss/(gain) on sale of business | (2) | 246 |
Interest income | 9 | 6 |
Foreign exchange loss/(gain) | 17 | (4) |
Other miscellaneous expense/(income) | 17 | (12) |
Other expense/(income) | $ 81 | $ 380 |
Other Financial Data Additional
Other Financial Data Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Other Income and Expenses [Abstract] | ||
Other expense/(income) | $ 81 | $ 380 |
Loss/(gain) on sale of business | (2) | $ 246 |
Defined Benefit Plan, year over year change in amortization of prior service credits | $ (46) |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Condensed Income Statements, Captions [Line Items] | ||
Net sales | $ 6,157 | $ 5,959 |
Cost of products sold | 4,299 | 3,948 |
Gross profit | 1,858 | 2,011 |
Selling, general and administrative expenses, excluding impairment losses | 862 | 829 |
Goodwill impairment losses | 226 | 620 |
Selling, general and administrative expenses | 1,088 | 1,449 |
Intercompany service fees and other recharges | 0 | 0 |
Operating income/(loss) | 770 | 562 |
Interest expense | 310 | 321 |
Other expense/(income) | (81) | (380) |
Income/(loss) before income taxes | 541 | 621 |
Provision for/(benefit from) income taxes | 160 | 217 |
Equity in earnings/(losses) of subsidiaries | 0 | 0 |
Net income/(loss) | 381 | 404 |
Net income/(loss) attributable to noncontrolling interest | 3 | (1) |
Net income/(loss) excluding noncontrolling interest | 378 | 405 |
Comprehensive income/(loss) excluding noncontrolling interest | (162) | 528 |
Eliminations | ||
Condensed Income Statements, Captions [Line Items] | ||
Net sales | (106) | (111) |
Cost of products sold | (106) | (111) |
Gross profit | 0 | 0 |
Selling, general and administrative expenses, excluding impairment losses | 0 | 0 |
Goodwill impairment losses | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 |
Intercompany service fees and other recharges | 0 | 0 |
Operating income/(loss) | 0 | 0 |
Interest expense | 0 | 0 |
Other expense/(income) | 0 | 0 |
Income/(loss) before income taxes | 0 | 0 |
Provision for/(benefit from) income taxes | 0 | 0 |
Equity in earnings/(losses) of subsidiaries | (636) | (784) |
Net income/(loss) | (636) | (784) |
Net income/(loss) attributable to noncontrolling interest | 0 | 0 |
Net income/(loss) excluding noncontrolling interest | (636) | (784) |
Comprehensive income/(loss) excluding noncontrolling interest | 534 | (1,056) |
Parent Guarantor | Reportable Legal Entities | ||
Condensed Income Statements, Captions [Line Items] | ||
Net sales | 0 | 0 |
Cost of products sold | 0 | 0 |
Gross profit | 0 | 0 |
Selling, general and administrative expenses, excluding impairment losses | 0 | 0 |
Goodwill impairment losses | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 |
Intercompany service fees and other recharges | 0 | 0 |
Operating income/(loss) | 0 | 0 |
Interest expense | 0 | 0 |
Other expense/(income) | 0 | 0 |
Income/(loss) before income taxes | 0 | 0 |
Provision for/(benefit from) income taxes | 0 | 0 |
Equity in earnings/(losses) of subsidiaries | 378 | 405 |
Net income/(loss) | 378 | 405 |
Net income/(loss) attributable to noncontrolling interest | 0 | 0 |
Net income/(loss) excluding noncontrolling interest | 378 | 405 |
Comprehensive income/(loss) excluding noncontrolling interest | (162) | 528 |
Subsidiary Issuer | Reportable Legal Entities | ||
Condensed Income Statements, Captions [Line Items] | ||
Net sales | 4,227 | 4,004 |
Cost of products sold | 2,911 | 2,572 |
Gross profit | 1,316 | 1,432 |
Selling, general and administrative expenses, excluding impairment losses | 239 | 221 |
Goodwill impairment losses | 0 | 0 |
Selling, general and administrative expenses | 239 | 221 |
Intercompany service fees and other recharges | 729 | 841 |
Operating income/(loss) | 348 | 370 |
Interest expense | 291 | 300 |
Other expense/(income) | (91) | 8 |
Income/(loss) before income taxes | 148 | 62 |
Provision for/(benefit from) income taxes | 28 | 36 |
Equity in earnings/(losses) of subsidiaries | 258 | 379 |
Net income/(loss) | 378 | 405 |
Net income/(loss) attributable to noncontrolling interest | 0 | 0 |
Net income/(loss) excluding noncontrolling interest | 378 | 405 |
Comprehensive income/(loss) excluding noncontrolling interest | (162) | 528 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Income Statements, Captions [Line Items] | ||
Net sales | 2,036 | 2,066 |
Cost of products sold | 1,494 | 1,487 |
Gross profit | 542 | 579 |
Selling, general and administrative expenses, excluding impairment losses | 623 | 608 |
Goodwill impairment losses | 226 | 620 |
Selling, general and administrative expenses | 849 | 1,228 |
Intercompany service fees and other recharges | (729) | (841) |
Operating income/(loss) | 422 | 192 |
Interest expense | 19 | 21 |
Other expense/(income) | 10 | (388) |
Income/(loss) before income taxes | 393 | 559 |
Provision for/(benefit from) income taxes | 132 | 181 |
Equity in earnings/(losses) of subsidiaries | 0 | 0 |
Net income/(loss) | 261 | 378 |
Net income/(loss) attributable to noncontrolling interest | 3 | (1) |
Net income/(loss) excluding noncontrolling interest | 258 | 379 |
Comprehensive income/(loss) excluding noncontrolling interest | $ (372) | $ 528 |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Dec. 28, 2019 | Mar. 30, 2019 | Dec. 29, 2018 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 5,403 | $ 2,279 | ||
Trade receivables, net | 2,321 | 1,973 | ||
Receivables due from affiliates | 0 | 0 | ||
Inventories | 2,831 | 2,721 | ||
Short-term lending due from affiliates | 0 | 0 | ||
Prepaid expenses | 485 | 384 | ||
Other current assets | 535 | 618 | ||
Assets held for sale | 133 | 122 | ||
Total current assets | 11,708 | 8,097 | ||
Property, plant and equipment, net | 6,813 | 7,055 | ||
Goodwill | 35,062 | 35,546 | ||
Investments in subsidiaries | 0 | 0 | ||
Intangible assets, net | 48,259 | 48,652 | ||
Long-term lending due from affiliates | 0 | 0 | ||
Other non-current assets | 2,231 | 2,100 | ||
TOTAL ASSETS | 104,073 | 101,450 | ||
Commercial paper and other short-term debt | 6 | 6 | ||
Current portion of long-term debt | 1,242 | 1,022 | ||
Short-term lending due to affiliates | 0 | 0 | ||
Trade payables | 3,956 | 4,003 | ||
Payables due to affiliates | 0 | 0 | ||
Accrued marketing | 681 | 647 | ||
Interest payable | 374 | 384 | ||
Other current liabilities | 1,664 | 1,804 | ||
Liabilities held for sale | 11 | 9 | ||
Total current liabilities | 7,934 | 7,875 | ||
Long-term debt | 31,531 | 28,216 | ||
Long-term borrowings due to affiliates | 0 | 0 | ||
Deferred income taxes | 11,839 | 11,878 | ||
Accrued postemployment costs | 250 | 273 | ||
Other non-current liabilities | 1,395 | 1,459 | ||
TOTAL LIABILITIES | 52,949 | 49,701 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Total shareholders’ equity | 51,009 | 51,623 | ||
Noncontrolling interest | 115 | 126 | ||
TOTAL EQUITY | 51,124 | 51,749 | $ 51,833 | $ 51,775 |
TOTAL LIABILITIES AND EQUITY | 104,073 | 101,450 | ||
Eliminations | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Trade receivables, net | 0 | 0 | ||
Receivables due from affiliates | (586) | (1,426) | ||
Inventories | 0 | 0 | ||
Short-term lending due from affiliates | (5,919) | (6,044) | ||
Prepaid expenses | 0 | 0 | ||
Other current assets | (649) | (701) | ||
Assets held for sale | 0 | 0 | ||
Total current assets | (7,154) | (8,171) | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investments in subsidiaries | (117,016) | (118,115) | ||
Intangible assets, net | 0 | 0 | ||
Long-term lending due from affiliates | (2,207) | (2,207) | ||
Other non-current assets | 0 | 0 | ||
TOTAL ASSETS | (126,377) | (128,493) | ||
Commercial paper and other short-term debt | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Short-term lending due to affiliates | (5,919) | (6,044) | ||
Trade payables | 0 | 0 | ||
Payables due to affiliates | (586) | (1,426) | ||
Accrued marketing | 0 | 0 | ||
Interest payable | 0 | 0 | ||
Other current liabilities | (649) | (701) | ||
Liabilities held for sale | 0 | 0 | ||
Total current liabilities | (7,154) | (8,171) | ||
Long-term debt | 0 | 0 | ||
Long-term borrowings due to affiliates | (2,207) | (2,207) | ||
Deferred income taxes | 0 | 0 | ||
Accrued postemployment costs | 0 | 0 | ||
Other non-current liabilities | 0 | 0 | ||
TOTAL LIABILITIES | (9,361) | (10,378) | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Total shareholders’ equity | (117,016) | (118,115) | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL EQUITY | (117,016) | (118,115) | ||
TOTAL LIABILITIES AND EQUITY | (126,377) | (128,493) | ||
Parent Guarantor | Reportable Legal Entities | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Trade receivables, net | 0 | 0 | ||
Receivables due from affiliates | 0 | 0 | ||
Inventories | 0 | 0 | ||
Short-term lending due from affiliates | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Assets held for sale | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investments in subsidiaries | 51,009 | 51,623 | ||
Intangible assets, net | 0 | 0 | ||
Long-term lending due from affiliates | 0 | 0 | ||
Other non-current assets | 0 | 0 | ||
TOTAL ASSETS | 51,009 | 51,623 | ||
Commercial paper and other short-term debt | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Short-term lending due to affiliates | 0 | 0 | ||
Trade payables | 0 | 0 | ||
Payables due to affiliates | 0 | 0 | ||
Accrued marketing | 0 | 0 | ||
Interest payable | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Liabilities held for sale | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Long-term borrowings due to affiliates | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Accrued postemployment costs | 0 | 0 | ||
Other non-current liabilities | 0 | 0 | ||
TOTAL LIABILITIES | 0 | 0 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Total shareholders’ equity | 51,009 | 51,623 | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL EQUITY | 51,009 | 51,623 | ||
TOTAL LIABILITIES AND EQUITY | 51,009 | 51,623 | ||
Subsidiary Issuer | Reportable Legal Entities | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 4,605 | 1,404 | ||
Trade receivables, net | 1,146 | 836 | ||
Receivables due from affiliates | 296 | 633 | ||
Inventories | 1,901 | 1,832 | ||
Short-term lending due from affiliates | 1,432 | 1,399 | ||
Prepaid expenses | 321 | 193 | ||
Other current assets | 895 | 983 | ||
Assets held for sale | 13 | 13 | ||
Total current assets | 10,609 | 7,293 | ||
Property, plant and equipment, net | 4,353 | 4,420 | ||
Goodwill | 11,067 | 11,066 | ||
Investments in subsidiaries | 66,007 | 66,492 | ||
Intangible assets, net | 2,826 | 2,860 | ||
Long-term lending due from affiliates | 207 | 207 | ||
Other non-current assets | 950 | 850 | ||
TOTAL ASSETS | 96,019 | 93,188 | ||
Commercial paper and other short-term debt | 5 | 5 | ||
Current portion of long-term debt | 870 | 626 | ||
Short-term lending due to affiliates | 4,487 | 4,645 | ||
Trade payables | 2,453 | 2,445 | ||
Payables due to affiliates | 290 | 793 | ||
Accrued marketing | 240 | 249 | ||
Interest payable | 370 | 372 | ||
Other current liabilities | 1,507 | 266 | ||
Liabilities held for sale | 1 | 0 | ||
Total current liabilities | 10,223 | 9,401 | ||
Long-term debt | 31,229 | 27,912 | ||
Long-term borrowings due to affiliates | 2,000 | 2,000 | ||
Deferred income taxes | 1,373 | 1,307 | ||
Accrued postemployment costs | 28 | 34 | ||
Other non-current liabilities | 157 | 911 | ||
TOTAL LIABILITIES | 45,010 | 41,565 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Total shareholders’ equity | 51,009 | 51,623 | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL EQUITY | 51,009 | 51,623 | ||
TOTAL LIABILITIES AND EQUITY | 96,019 | 93,188 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 798 | 875 | ||
Trade receivables, net | 1,175 | 1,137 | ||
Receivables due from affiliates | 290 | 793 | ||
Inventories | 930 | 889 | ||
Short-term lending due from affiliates | 4,487 | 4,645 | ||
Prepaid expenses | 164 | 191 | ||
Other current assets | 289 | 336 | ||
Assets held for sale | 120 | 109 | ||
Total current assets | 8,253 | 8,975 | ||
Property, plant and equipment, net | 2,460 | 2,635 | ||
Goodwill | 23,995 | 24,480 | ||
Investments in subsidiaries | 0 | 0 | ||
Intangible assets, net | 45,433 | 45,792 | ||
Long-term lending due from affiliates | 2,000 | 2,000 | ||
Other non-current assets | 1,281 | 1,250 | ||
TOTAL ASSETS | 83,422 | 85,132 | ||
Commercial paper and other short-term debt | 1 | 1 | ||
Current portion of long-term debt | 372 | 396 | ||
Short-term lending due to affiliates | 1,432 | 1,399 | ||
Trade payables | 1,503 | 1,558 | ||
Payables due to affiliates | 296 | 633 | ||
Accrued marketing | 441 | 398 | ||
Interest payable | 4 | 12 | ||
Other current liabilities | 806 | 2,239 | ||
Liabilities held for sale | 10 | 9 | ||
Total current liabilities | 4,865 | 6,645 | ||
Long-term debt | 302 | 304 | ||
Long-term borrowings due to affiliates | 207 | 207 | ||
Deferred income taxes | 10,466 | 10,571 | ||
Accrued postemployment costs | 222 | 239 | ||
Other non-current liabilities | 1,238 | 548 | ||
TOTAL LIABILITIES | 17,300 | 18,514 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Total shareholders’ equity | 66,007 | 66,492 | ||
Noncontrolling interest | 115 | 126 | ||
TOTAL EQUITY | 66,122 | 66,618 | ||
TOTAL LIABILITIES AND EQUITY | $ 83,422 | $ 85,132 |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by/(used for) operating activities | $ 212 | $ 304 |
Capital expenditures | (131) | (249) |
Payments to acquire business, net of cash acquired | 0 | (200) |
Net proceeds from/(payments on) intercompany lending activities | 0 | 0 |
Additional investments in subsidiaries | 0 | 0 |
Proceeds from sale of business, net of cash disposed | 0 | 640 |
Other investing activities, net | 9 | (14) |
Net cash provided by/(used for) investing activities | (122) | 177 |
Repayments of long-term debt | (407) | (1) |
Proceeds from revolving credit facility | 4,000 | 0 |
Proceeds from issuance of commercial paper | 0 | 377 |
Repayments of commercial paper | 0 | (377) |
Net proceeds from/(payments on) intercompany borrowing activities | 0 | 0 |
Dividends paid | (488) | (488) |
Other intercompany capital stock transactions | 0 | 0 |
Other financing activities, net | 0 | (15) |
Net cash provided by/(used for) financing activities | 3,105 | (504) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (71) | (11) |
Net increase/(decrease) | 3,124 | (34) |
Balance at beginning of period | 2,280 | 1,136 |
Balance at end of period | 5,404 | 1,102 |
Eliminations | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by/(used for) operating activities | (488) | (488) |
Capital expenditures | 0 | 0 |
Payments to acquire business, net of cash acquired | 0 | |
Net proceeds from/(payments on) intercompany lending activities | (550) | (742) |
Additional investments in subsidiaries | (1) | 29 |
Proceeds from sale of business, net of cash disposed | 0 | |
Other investing activities, net | 0 | 0 |
Net cash provided by/(used for) investing activities | (551) | (713) |
Repayments of long-term debt | 0 | 0 |
Proceeds from revolving credit facility | 0 | |
Proceeds from issuance of commercial paper | 0 | |
Repayments of commercial paper | 0 | |
Net proceeds from/(payments on) intercompany borrowing activities | 550 | 742 |
Dividends paid | 488 | 488 |
Other intercompany capital stock transactions | 1 | (29) |
Other financing activities, net | 0 | 0 |
Net cash provided by/(used for) financing activities | 1,039 | 1,201 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 0 | 0 |
Net increase/(decrease) | 0 | 0 |
Balance at beginning of period | 0 | 0 |
Balance at end of period | 0 | 0 |
Parent Guarantor | Reportable Legal Entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by/(used for) operating activities | 488 | 488 |
Capital expenditures | 0 | 0 |
Payments to acquire business, net of cash acquired | 0 | |
Net proceeds from/(payments on) intercompany lending activities | 0 | 0 |
Additional investments in subsidiaries | (11) | 0 |
Proceeds from sale of business, net of cash disposed | 0 | |
Other investing activities, net | 0 | 0 |
Net cash provided by/(used for) investing activities | (11) | 0 |
Repayments of long-term debt | 0 | 0 |
Proceeds from revolving credit facility | 0 | |
Proceeds from issuance of commercial paper | 0 | |
Repayments of commercial paper | 0 | |
Net proceeds from/(payments on) intercompany borrowing activities | 0 | 0 |
Dividends paid | (488) | (488) |
Other intercompany capital stock transactions | 0 | 0 |
Other financing activities, net | 11 | 0 |
Net cash provided by/(used for) financing activities | (477) | (488) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 0 | 0 |
Net increase/(decrease) | 0 | 0 |
Balance at beginning of period | 0 | 0 |
Balance at end of period | 0 | 0 |
Subsidiary Issuer | Reportable Legal Entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by/(used for) operating activities | (19) | 270 |
Capital expenditures | (61) | (113) |
Payments to acquire business, net of cash acquired | (202) | |
Net proceeds from/(payments on) intercompany lending activities | 352 | 720 |
Additional investments in subsidiaries | 12 | (29) |
Proceeds from sale of business, net of cash disposed | 0 | |
Other investing activities, net | 7 | 4 |
Net cash provided by/(used for) investing activities | 310 | 380 |
Repayments of long-term debt | (406) | 0 |
Proceeds from revolving credit facility | 4,000 | |
Proceeds from issuance of commercial paper | 377 | |
Repayments of commercial paper | (377) | |
Net proceeds from/(payments on) intercompany borrowing activities | (198) | (22) |
Dividends paid | (488) | (488) |
Other intercompany capital stock transactions | 11 | 0 |
Other financing activities, net | (9) | 7 |
Net cash provided by/(used for) financing activities | 2,910 | (503) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 0 | 0 |
Net increase/(decrease) | 3,201 | 147 |
Balance at beginning of period | 1,404 | 202 |
Balance at end of period | 4,605 | 349 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by/(used for) operating activities | 231 | 34 |
Capital expenditures | (70) | (136) |
Payments to acquire business, net of cash acquired | 2 | |
Net proceeds from/(payments on) intercompany lending activities | 198 | 22 |
Additional investments in subsidiaries | 0 | 0 |
Proceeds from sale of business, net of cash disposed | 640 | |
Other investing activities, net | 2 | (18) |
Net cash provided by/(used for) investing activities | 130 | 510 |
Repayments of long-term debt | (1) | (1) |
Proceeds from revolving credit facility | 0 | |
Proceeds from issuance of commercial paper | 0 | |
Repayments of commercial paper | 0 | |
Net proceeds from/(payments on) intercompany borrowing activities | (352) | (720) |
Dividends paid | 0 | 0 |
Other intercompany capital stock transactions | (12) | 29 |
Other financing activities, net | (2) | (22) |
Net cash provided by/(used for) financing activities | (367) | (714) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (71) | (11) |
Net increase/(decrease) | (77) | (181) |
Balance at beginning of period | 876 | 934 |
Balance at end of period | $ 799 | $ 753 |
Supplemental Guarantor Inform_6
Supplemental Guarantor Information Reconciliation From Cash and Cash Equivalents to Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Millions | Mar. 28, 2020 | Dec. 28, 2019 | Mar. 30, 2019 | Dec. 29, 2018 |
Schedule of Cash, Cash Equivalents, and Restricted Cash [Line Items] | ||||
Cash and cash equivalents | $ 5,403 | $ 2,279 | ||
Restricted cash included in other current assets | 1 | 1 | ||
Cash, cash equivalents, and restricted cash | 5,404 | 2,280 | $ 1,102 | $ 1,136 |
Eliminations | ||||
Schedule of Cash, Cash Equivalents, and Restricted Cash [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash included in other current assets | 0 | 0 | ||
Cash, cash equivalents, and restricted cash | 0 | 0 | 0 | 0 |
Parent Guarantor | Reportable Legal Entities | ||||
Schedule of Cash, Cash Equivalents, and Restricted Cash [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash included in other current assets | 0 | 0 | ||
Cash, cash equivalents, and restricted cash | 0 | 0 | 0 | 0 |
Subsidiary Issuer | Reportable Legal Entities | ||||
Schedule of Cash, Cash Equivalents, and Restricted Cash [Line Items] | ||||
Cash and cash equivalents | 4,605 | 1,404 | ||
Restricted cash included in other current assets | 0 | 0 | ||
Cash, cash equivalents, and restricted cash | 4,605 | 1,404 | 349 | 202 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Schedule of Cash, Cash Equivalents, and Restricted Cash [Line Items] | ||||
Cash and cash equivalents | 798 | 875 | ||
Restricted cash included in other current assets | 1 | 1 | ||
Cash, cash equivalents, and restricted cash | $ 799 | $ 876 | $ 753 | $ 934 |