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 , for additional descriptions of these guarantees. None of our other subsidiaries guarantee such notes. Set forth below are the condensed consolidating financial statements presenting the results of operations, financial position, and cash flows of Kraft Heinz (as parent guarantor), Kraft Heinz Foods Company (as subsidiary issuer of the notes), and the non-guarantor subsidiaries on a combined basis and eliminations necessary to arrive at the total reported information on a consolidated basis. This condensed consolidating financial information has been prepared and presented pursuant to the SEC Regulation S-X Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or being Registered.” This information is not intended to present the financial position, results of operations, and cash flows of the individual companies or groups of companies in accordance with U.S. GAAP. Eliminations represent adjustments to eliminate investments in subsidiaries and intercompany balances and transactions between or among the parent guarantor, subsidiary issuer, and the non-guarantor subsidiaries. The Kraft Heinz Company Condensed Consolidating Statements of Income For the Year Ended December 28, 2019 (in millions) Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 16,852 $ 8,588 $ (463) $ 24,977 Cost of products sold — 11,042 6,251 (463) 16,830 Gross profit — 5,810 2,337 — 8,147 Selling, general and administrative expenses, excluding impairment losses — 798 2,380 — 3,178 Goodwill impairment losses — — 1,197 — 1,197 Intangible asset impairment losses — — 702 — 702 Selling, general and administrative expenses — 798 4,279 — 5,077 Intercompany service fees and other recharges — 3,377 (3,377) — — Operating income/(loss) — 1,635 1,435 — 3,070 Interest expense — 1,283 78 — 1,361 Other expense/(income) — (128) (824) — (952) Income/(loss) before income taxes — 480 2,181 — 2,661 Provision for/(benefit from) income taxes — 1 727 — 728 Equity in earnings/(losses) of subsidiaries 1,935 1,456 — (3,391) — Net income/(loss) 1,935 1,935 1,454 (3,391) 1,933 Net income/(loss) attributable to noncontrolling interest — — (2) — (2) Net income/(loss) excluding noncontrolling interest $ 1,935 $ 1,935 $ 1,456 $ (3,391) $ 1,935 Comprehensive income/(loss) excluding noncontrolling interest $ 1,856 $ 1,856 $ 1,379 $ (3,235) $ 1,856 The Kraft Heinz Company Condensed Consolidating Statements of Income For the Year Ended December 29, 2018 (in millions) Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 17,317 $ 9,481 $ (530) $ 26,268 Cost of products sold — 11,290 6,587 (530) 17,347 Gross profit — 6,027 2,894 — 8,921 Selling, general and administrative expenses, excluding impairment losses — 803 2,387 — 3,190 Goodwill impairment losses — — 7,008 — 7,008 Intangible asset impairment losses — — 8,928 — 8,928 Selling, general and administrative expenses — 803 18,323 — 19,126 Intercompany service fees and other recharges — 3,865 (3,865) — — Operating income/(loss) — 1,359 (11,564) — (10,205) Interest expense — 1,212 72 — 1,284 Other expense/(income) — (359) 191 — (168) Income/(loss) before income taxes — 506 (11,827) — (11,321) Provision for/(benefit from) income taxes — 112 (1,179) — (1,067) Equity in earnings/(losses) of subsidiaries (10,192) (10,586) — 20,778 — Net income/(loss) (10,192) (10,192) (10,648) 20,778 (10,254) Net income/(loss) attributable to noncontrolling interest — — (62) — (62) Net income/(loss) excluding noncontrolling interest $ (10,192) $ (10,192) $ (10,586) $ 20,778 $ (10,192) Comprehensive income/(loss) excluding noncontrolling interest $ (11,081) $ (11,081) $ (11,550) $ 22,631 $ (11,081) The Kraft Heinz Company Condensed Consolidating Statements of Income For the Year Ended December 30, 2017 (in millions) Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 17,397 $ 9,247 $ (568) $ 26,076 Cost of products sold — 11,147 6,464 (568) 17,043 Gross profit — 6,250 2,783 — 9,033 Selling, general and administrative expenses, excluding impairment losses — 695 2,232 — 2,927 Goodwill impairment losses — — — — — Intangible asset impairment losses — — 49 — 49 Selling, general and administrative expenses — 695 2,281 — 2,976 Intercompany service fees and other recharges — 4,307 (4,307) — — Operating income/(loss) — 1,248 4,809 — 6,057 Interest expense — 1,189 45 — 1,234 Other expense/(income) — (535) (92) — (627) Income/(loss) before income taxes — 594 4,856 — 5,450 Provision for/(benefit from) income taxes — (243) (5,239) — (5,482) Equity in earnings/(losses) of subsidiaries 10,941 10,104 — (21,045) — Net income/(loss) 10,941 10,941 10,095 (21,045) 10,932 Net income/(loss) attributable to noncontrolling interest — — (9) — (9) Net income/(loss) excluding noncontrolling interest $ 10,941 $ 10,941 $ 10,104 $ (21,045) $ 10,941 Comprehensive income/(loss) excluding noncontrolling interest $ 11,516 $ 11,516 $ 7,711 $ (19,227) $ 11,516 The Kraft Heinz Company Condensed Consolidating Balance Sheets As of December 28, 2019 (in millions) Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ — $ 1,404 $ 875 $ — $ 2,279 Trade receivables, net — 836 1,137 — 1,973 Receivables due from affiliates — 633 793 (1,426) — Income taxes receivable — 714 160 (701) 173 Inventories — 1,832 889 — 2,721 Short-term lending due from affiliates — 1,399 4,645 (6,044) — Prepaid expenses — 193 191 — 384 Other current assets — 269 176 — 445 Assets held for sale — 13 109 — 122 Total current assets — 7,293 8,975 (8,171) 8,097 Property, plant and equipment, net — 4,420 2,635 — 7,055 Goodwill — 11,066 24,480 — 35,546 Investments in subsidiaries 51,623 66,492 — (118,115) — Intangible assets, net — 2,860 45,792 — 48,652 Long-term lending due from affiliates — 207 2,000 (2,207) — Other non-current assets — 850 1,250 — 2,100 TOTAL ASSETS $ 51,623 $ 93,188 $ 85,132 $ (128,493) $ 101,450 LIABILITIES AND EQUITY Commercial paper and other short-term debt $ — $ 5 $ 1 $ — $ 6 Current portion of long-term debt — 626 396 — 1,022 Short-term lending due to affiliates — 4,645 1,399 (6,044) — Trade payables — 2,445 1,558 — 4,003 Payables due to affiliates — 793 633 (1,426) — Accrued marketing — 249 398 — 647 Interest payable — 372 12 — 384 Other current liabilities — 266 2,239 (701) 1,804 Liabilities held for sale — — 9 — 9 Total current liabilities — 9,401 6,645 (8,171) 7,875 Long-term debt — 27,912 304 — 28,216 Long-term borrowings due to affiliates — 2,000 207 (2,207) — Deferred income taxes — 1,307 10,571 — 11,878 Accrued postemployment costs — 34 239 — 273 Other non-current liabilities — 911 548 — 1,459 TOTAL LIABILITIES — 41,565 18,514 (10,378) 49,701 Redeemable noncontrolling interest — — — — — Total shareholders’ equity 51,623 51,623 66,492 (118,115) 51,623 Noncontrolling interest — — 126 — 126 TOTAL EQUITY 51,623 51,623 66,618 (118,115) 51,749 TOTAL LIABILITIES AND EQUITY $ 51,623 $ 93,188 $ 85,132 $ (128,493) $ 101,450 The Kraft Heinz Company Condensed Consolidating Balance Sheets As of December 29, 2018 (in millions) Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ — $ 202 $ 928 $ — $ 1,130 Trade receivables, net — 933 1,196 — 2,129 Receivables due from affiliates — 870 341 (1,211) — Income taxes receivable — 701 9 (558) 152 Inventories — 1,783 884 — 2,667 Short-term lending due from affiliates — 1,787 3,753 (5,540) — Prepaid expenses — 198 202 — 400 Other current assets — 776 445 — 1,221 Assets held for sale — 75 1,301 — 1,376 Total current assets — 7,325 9,059 (7,309) 9,075 Property, plant and equipment, net — 4,524 2,554 — 7,078 Goodwill — 11,067 25,436 — 36,503 Investments in subsidiaries 51,657 67,867 — (119,524) — Intangible assets, net — 3,010 46,458 — 49,468 Long-term lending due from affiliates — — 2,000 (2,000) — Other non-current assets — 316 1,021 — 1,337 TOTAL ASSETS $ 51,657 $ 94,109 $ 86,528 $ (128,833) $ 103,461 LIABILITIES AND EQUITY Commercial paper and other short-term debt $ — $ — $ 21 $ — $ 21 Current portion of long-term debt — 363 14 — 377 Short-term lending due to affiliates — 3,753 1,787 (5,540) — Trade payables — 2,563 1,590 — 4,153 Payables due to affiliates — 341 870 (1,211) — Accrued marketing — 282 440 — 722 Interest payable — 394 14 — 408 Other current liabilities — 888 1,437 (558) 1,767 Liabilities held for sale — — 55 — 55 Total current liabilities — 8,584 6,228 (7,309) 7,503 Long-term debt — 29,872 898 — 30,770 Long-term borrowings due to affiliates — 2,000 12 (2,012) — Deferred income taxes — 1,314 10,888 — 12,202 Accrued postemployment costs — 89 217 — 306 Other non-current liabilities — 593 309 — 902 TOTAL LIABILITIES — 42,452 18,552 (9,321) 51,683 Redeemable noncontrolling interest — — 3 — 3 Total shareholders’ equity 51,657 51,657 67,855 (119,512) 51,657 Noncontrolling interest — — 118 — 118 TOTAL EQUITY 51,657 51,657 67,973 (119,512) 51,775 TOTAL LIABILITIES AND EQUITY $ 51,657 $ 94,109 $ 86,528 $ (128,833) $ 103,461 The Kraft Heinz Company Condensed Consolidating Statements of Cash Flows For the Year Ended December 28, 2019 (in millions) Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net cash provided by/(used for) operating activities $ 1,953 $ 3,308 $ 244 $ (1,953) $ 3,552 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures — (365) (403) — (768) Payments to acquire business, net of cash acquired — (199) — — (199) Net proceeds from/(payments on) intercompany lending activities — 2,248 723 (2,971) — Additional investments in subsidiaries (20) (51) — 71 — Proceeds from net investment hedges — 604 (14) — 590 Proceeds from sale of business, net of cash disposed — — 1,875 — 1,875 Other investing activities, net — 52 (39) — 13 Net cash provided by/(used for) investing activities (20) 2,289 2,142 (2,900) 1,511 CASH FLOWS FROM FINANCING ACTIVITIES Repayments of long-term debt — (4,568) (227) — (4,795) Proceeds from issuance of long-term debt — 2,969 (2) — 2,967 Debt prepayment and extinguishment costs — (99) — — (99) Proceeds from issuance of commercial paper — 557 — — 557 Repayments of commercial paper — (557) — — (557) Net proceeds from/(payments on) intercompany borrowing activities — (723) (2,248) 2,971 — Dividends paid (1,953) (1,953) — 1,953 (1,953) Other intercompany capital stock transactions — 20 51 (71) — Other financing activities, net 20 (41) (12) — (33) Net cash provided by/(used for) financing activities (1,933) (4,395) (2,438) 4,853 (3,913) Effect of exchange rate changes on cash, cash equivalents, and restricted cash — — (6) — (6) Cash, cash equivalents, and restricted cash: Net increase/(decrease) — 1,202 (58) — 1,144 Balance at beginning of period — 202 934 — 1,136 Balance at end of period $ — $ 1,404 $ 876 $ — $ 2,280 The Kraft Heinz Company Condensed Consolidating Statements of Cash Flows For the Year Ended December 29, 2018 (in millions) Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net cash provided by/(used for) operating activities $ 3,183 $ 1,928 $ 656 $ (3,193) $ 2,574 CASH FLOWS FROM INVESTING ACTIVITIES Cash receipts on sold receivables — — 1,296 — 1,296 Capital expenditures — (339) (487) — (826) Payments to acquire business, net of cash acquired — (245) (3) — (248) Net proceeds from/(payments on) intercompany lending activities — 1,626 206 (1,832) — Additional investments in subsidiaries — (41) — 41 — Proceeds from net investment hedges — 24 — — 24 Return of capital 7 — — (7) — Proceeds from sale of business, net of cash disposed — — 18 — 18 Other investing activities, net — 7 17 — 24 Net cash provided by/(used for) investing activities 7 1,032 1,047 (1,798) 288 CASH FLOWS FROM FINANCING ACTIVITIES Repayments of long-term debt — (2,550) (163) — (2,713) Proceeds from issuance of long-term debt — 2,990 — — 2,990 Proceeds from issuance of commercial paper — 2,784 — — 2,784 Repayments of commercial paper — (3,213) — — (3,213) Net proceeds from/(payments on) intercompany borrowing activities — (206) (1,626) 1,832 — Dividends paid (3,183) (3,183) (10) 3,193 (3,183) Other intercompany capital stock transactions — (7) 41 (34) — Other financing activities, net (7) (17) (4) — (28) Net cash provided by/(used for) financing activities (3,190) (3,402) (1,762) 4,991 (3,363) Effect of exchange rate changes on cash, cash equivalents, and restricted cash — — (132) — (132) Cash, cash equivalents, and restricted cash: Net increase/(decrease) — (442) (191) — (633) Balance at beginning of period — 644 1,125 — 1,769 Balance at end of period $ — $ 202 $ 934 $ — $ 1,136 The Kraft Heinz Company Condensed Consolidating Statements of Cash Flows For the Year Ended December 30, 2017 (in millions) Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net cash provided by/(used for) operating activities $ 2,888 $ 1,497 $ (996) $ (2,888) $ 501 CASH FLOWS FROM INVESTING ACTIVITIES Cash receipts on sold receivables — — 2,286 — 2,286 Capital expenditures — (757) (437) — (1,194) Net proceeds from/(payments on) intercompany lending activities — 641 (542) (99) — Additional investments in subsidiaries (21) — — 21 — Proceeds from net investment hedges — 6 — — 6 Other investing activities, net — 56 23 — 79 Net cash provided by/(used for) investing activities (21) (54) 1,330 (78) 1,177 CASH FLOWS FROM FINANCING ACTIVITIES Repayments of long-term debt — (2,628) (13) — (2,641) Proceeds from issuance of long-term debt — 1,496 — — 1,496 Proceeds from issuance of commercial paper — 6,043 — — 6,043 Repayments of commercial paper — (6,249) — — (6,249) Net proceeds from/(payments on) intercompany borrowing activities — 542 (641) 99 — Dividends paid-common stock (2,888) (2,888) — 2,888 (2,888) Other intercompany capital stock transactions — 21 — (21) — Other financing activities, net 21 (5) 2 — 18 Net cash provided by/(used for) financing activities (2,867) (3,668) (652) 2,966 (4,221) Effect of exchange rate changes on cash, cash equivalents, and restricted cash — — 57 — 57 Cash, cash equivalents, and restricted cash: Net increase/(decrease) — (2,225) (261) — (2,486) Balance at beginning of period — 2,869 1,386 — 4,255 Balance at end of period $ — $ 644 $ 1,125 $ — $ 1,769 The following tables provide a reconciliation of cash and cash equivalents, as reported on our condensed consolidating balance sheets, to cash, cash equivalents, and restricted cash, as reported on our condensed consolidating statements of cash flows (in millions): December 28, 2019 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Eliminations Consolidated Cash and cash equivalents $ — $ 1,404 $ 875 $ — $ 2,279 Restricted cash included in other current assets — — 1 — 1 Restricted cash included in other non-current assets — — — — — Cash, cash equivalents, and restricted cash $ — $ 1,404 $ 876 $ — $ 2,280 December 29, 2018 Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Eliminations Consolidated Cash and cash equivalents $ — $ 202 $ 928 $ — $ 1,130 Restricted cash included in other current assets — — 1 — 1 Restricted cash included in other non-current assets — — 5 — 5 Cash, cash equivalents, and restricted cash $ — $ 202 $ 934 $ — $ 1,136 |