Cover Page
Cover Page - shares | 3 Months Ended | |
Apr. 01, 2023 | Apr. 29, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 01, 2023 | |
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, $0.01 par value | |
Trading Symbol | KHC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,227,237,484 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001637459 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 6,489 | $ 6,045 |
Cost of products sold | 4,376 | 4,114 |
Gross profit | 2,113 | 1,931 |
Selling, general and administrative expenses, excluding impairment losses | 870 | 827 |
Goodwill impairment losses | 0 | (11) |
Selling, general and administrative expenses | 870 | 816 |
Operating income/(loss) | 1,243 | 1,115 |
Interest expense | 227 | 242 |
Other expense/(income) | (35) | (98) |
Income/(loss) before income taxes | 1,051 | 971 |
Provision for/(benefit from) income taxes | 214 | 190 |
Net income/(loss) | 837 | 781 |
Net income/(loss) attributable to noncontrolling interest | 1 | 5 |
Net income/(loss) attributable to common shareholders | $ 836 | $ 776 |
Per share data applicable to common shareholders: | ||
Basic earnings/(loss) per common share (in dollars per share) | $ 0.68 | $ 0.63 |
Diluted earnings/(loss) per common share (in dollars per share) | $ 0.68 | $ 0.63 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income/(loss) | $ 837 | $ 781 |
Other comprehensive income/(loss), net of tax: | ||
Foreign currency translation adjustments | 119 | (33) |
Net deferred gains/(losses) on net investment hedges | (24) | 52 |
Amounts excluded from the effectiveness assessment of net investment hedges | 6 | 9 |
Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) | (6) | (8) |
Net deferred gains/(losses) on cash flow hedges | (15) | (34) |
Amounts excluded from the effectiveness assessment of cash flow hedges | 4 | 7 |
Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) | (16) | 22 |
Net postemployment benefit losses/(gains) reclassified to net income/(loss) | (2) | (4) |
Total other comprehensive income/(loss) | 66 | 11 |
Total comprehensive income/(loss) | 903 | 792 |
Comprehensive income/(loss) attributable to noncontrolling interest | 5 | 4 |
Comprehensive income/(loss) attributable to common shareholders | $ 898 | $ 788 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 826 | $ 1,040 |
Trade receivables (net of allowances of $45 at April 1, 2023 and $46 at December 31, 2022) | 2,286 | 2,120 |
Inventories | 4,016 | 3,651 |
Prepaid expenses | 329 | 240 |
Other current assets | 755 | 842 |
Assets held for sale | 4 | 4 |
Total current assets | 8,216 | 7,897 |
Property, plant and equipment, net | 6,776 | 6,740 |
Goodwill | 30,888 | 30,833 |
Intangible assets, net | 42,665 | 42,649 |
Other non-current assets | 2,398 | 2,394 |
TOTAL ASSETS | 90,943 | 90,513 |
LIABILITIES AND EQUITY | ||
Commercial paper and other short-term debt | 2 | 6 |
Current portion of long-term debt | 840 | 831 |
Trade payables | 4,804 | 4,848 |
Accrued marketing | 758 | 749 |
Interest payable | 315 | 264 |
Other current liabilities | 2,235 | 2,330 |
Total current liabilities | 8,954 | 9,028 |
Long-term debt | 19,263 | 19,233 |
Deferred income taxes | 10,162 | 10,152 |
Accrued postemployment costs | 145 | 144 |
Long-term deferred income | 1,465 | 1,477 |
Other non-current liabilities | 1,601 | 1,609 |
TOTAL LIABILITIES | 41,590 | 41,643 |
Commitments and Contingencies (Note 14) | ||
Redeemable noncontrolling interest | 40 | 40 |
Equity: | ||
Common stock, $0.01 par value (5,000 shares authorized; 1,245 shares issued and 1,227 shares outstanding at April 1, 2023; 1,243 shares issued and 1,225 shares outstanding at December 31, 2022) | 12 | 12 |
Additional paid-in capital | 51,910 | 51,834 |
Retained earnings/(deficit) | 831 | 489 |
Accumulated other comprehensive income/(losses) | (2,748) | (2,810) |
Treasury stock, at cost (18 shares at April 1, 2023 and 18 shares at December 31, 2022) | (852) | (847) |
Total shareholders' equity | 49,153 | 48,678 |
Noncontrolling interest | 160 | 152 |
TOTAL EQUITY | 49,313 | 48,830 |
TOTAL LIABILITIES AND EQUITY | $ 90,943 | $ 90,513 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss | $ 45 | $ 46 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | |
Common Stock, Shares Authorized | 5,000,000,000 | |
Common Stock, Shares, Issued | 1,245,000,000 | 1,243,000,000 |
Common Stock, Shares, Outstanding | 1,227,000,000 | 1,225,000,000 |
Treasury Stock, Common, Shares | 18,000,000 | 18,000,000 |
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. 25, 2021 | $ 49,448 | $ 12 | $ 53,379 | $ (1,682) | $ (1,824) | $ (587) | $ 150 |
Total Shareholders' Equity [Roll forward] | |||||||
Net income/(loss) excluding redeemable noncontrolling interest | 780 | 776 | 4 | ||||
Other comprehensive income/(loss) excluding redeemable noncontrolling interest | 11 | 12 | (1) | ||||
Dividends declared-common stock | (492) | (492) | |||||
Exercise of stock options, issuance of other stock awards, and other | 50 | 67 | 1 | (18) | |||
Ending balance at Mar. 26, 2022 | 49,797 | 12 | 52,954 | (905) | (1,812) | (605) | 153 |
Beginning balance at Dec. 31, 2022 | 48,830 | 12 | 51,834 | 489 | (2,810) | (847) | 152 |
Total Shareholders' Equity [Roll forward] | |||||||
Net income/(loss) excluding redeemable noncontrolling interest | 837 | 836 | 1 | ||||
Other comprehensive income/(loss) excluding redeemable noncontrolling interest | 66 | 62 | 4 | ||||
Dividends declared-common stock | (494) | (494) | |||||
Exercise of stock options, issuance of other stock awards, and other | 74 | 76 | 0 | (5) | (3) | ||
Ending balance at Apr. 01, 2023 | $ 49,313 | $ 12 | $ 51,910 | $ 831 | $ (2,748) | $ (852) | $ 160 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock dividends declared (in dollars per share) | $ 0.40 | $ 0.40 |
Other comprehensive income/(loss) excluding redeemable noncontrolling interest | $ 66 | $ 11 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income/(loss) | $ 837 | $ 781 |
Adjustments to reconcile net income/(loss) to operating cash flows: | ||
Depreciation and amortization | 220 | 220 |
Amortization of postemployment benefit plans prior service costs/(credits) | (3) | (4) |
Divestiture-related license income | (13) | (14) |
Equity award compensation expense | 31 | 34 |
Deferred income tax provision/(benefit) | (3) | 23 |
Postemployment benefit plan contributions | (6) | (7) |
Goodwill and intangible asset impairment losses | 0 | (11) |
Nonmonetary currency devaluation | 3 | 4 |
Loss/(gain) on sale of business | 1 | 1 |
Other items, net | 29 | (69) |
Changes in current assets and liabilities: | ||
Trade receivables | (151) | (123) |
Inventories | (406) | (382) |
Accounts payable | (32) | 6 |
Other current assets | (53) | (91) |
Other current liabilities | 32 | 118 |
Net cash provided by/(used for) operating activities | 486 | 486 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (266) | (214) |
Payments to acquire business, net of cash acquired | 0 | (241) |
Proceeds from sale of business, net of cash disposed and working capital adjustments | 0 | (20) |
Other investing activities, net | 2 | 6 |
Net cash provided by/(used for) investing activities | (264) | (469) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments of long-term debt | (1) | (9) |
Dividends paid | (491) | (490) |
Other financing activities, net | 53 | 14 |
Net cash provided by/(used for) financing activities | (439) | (485) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 4 | 2 |
Cash, cash equivalents, and restricted cash | ||
Net increase/(decrease) | (213) | (466) |
Balance at beginning of period | 1,041 | 3,446 |
Balance at end of period | $ 828 | $ 2,980 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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. We operate on a 52- or 53-week fiscal year ending on the last Saturday in December in each calendar year. Unless the context requires otherwise, references to years and quarters contained herein pertain to our fiscal years and fiscal quarters. Our 2023 fiscal year is scheduled to be a 52-week period ending on December 30, 2023, and our 2022 fiscal year was a 53-week period that ended on December 31, 2022. The condensed consolidated balance sheet data at December 31, 2022 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 31, 2022. The results for interim periods are not necessarily indicative of future or annual results. Principles of Consolidation The condensed consolidated financial statements include The Kraft Heinz Company and all of our controlled subsidiaries. All intercompany transactions are eliminated. Reportable Segments We manage and report our operating results through two reportable segments defined by geographic region: North America and International. 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 and adjustments to certain previously reported financial information to conform to our current period presentation. Held for Sale At April 1, 2023 and December 31, 2022, we classified certain assets as held for sale in our condensed consolidated balance sheet, primarily relating to land use rights across the globe. Cash , Cash Equivalents , and Restricted Cash Cash equivalents include term 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 are classified in other current assets or other non-current assets, as applicable, on the condensed consolidated balance sheets. At April 1, 2023, we had restricted cash recorded in other current assets of $1 million and in other non-current assets of $1 million. At December 31, 2022, we had restricted cash recorded in other non-current assets of $1 million. Total cash, cash equivalents, and restricted cash was $828 million at April 1, 2023 and $1,041 million at December 31, 2022. |
Significant Accounting Policies
Significant Accounting Policies (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting PoliciesThere were no significant changes to our accounting policies from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022. |
New Accounting Standards (Notes
New Accounting Standards (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Standards | New Accounting Standards Accounting Standards Adopted in the Current Year Supplier Finance Programs (Topic 405-50) - Disclosure of Supplier Finance Program Obligations: In September 2022, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2022-04 to add disclosure requirements relative to supplier financing programs under ASC 405, Liabilities . The guidance requires entities that maintain supplier financing programs to provide information in their financial statements about their use of supplier finance programs and their effect on the entity’s working capital, liquidity, and cash flows. Specifically, the amendment requires entities to disclose the key terms of their programs, amounts outstanding, balance sheet presentation, and a rollforward of amounts outstanding during the annual period. Only the amount outstanding at the end of the period is required to be disclosed in interim periods. We adopted this ASU when it became effective in the first quarter of our fiscal year 2023, except for the rollforward requirement, which is effective in fiscal year 2024. The adoption of this ASU did not have a significant impact on our financial statements and related disclosures. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions Hemmer Acquisition: On March 31, 2022 (the “Hemmer Acquisition Date”), we acquired a majority of the outstanding equity interests of Companhia Hemmer Indústria e Comércio (“Hemmer”), a Brazilian food and beverage manufacturing company focused on the condiments and sauces category, from certain third-party shareholders (the “Hemmer Acquisition”). The Hemmer Acquisition was accounted for under the acquisition method of accounting for business combinations. Total cash consideration related to the Hemmer Acquisition was approximately 1.3 billion Brazilian reais (approximately $279 million at the Hemmer Acquisition Date). A noncontrolling interest was recognized at fair value, which was determined to be the noncontrolling interest’s proportionate share of the acquiree’s identifiable net assets, as of the Hemmer Acquisition Date. As of the Hemmer Acquisition Date, we acquired 94% of the outstanding shares of Hemmer. In the third quarter of 2022, we completed the redemption of the remaining outstanding shares and own 100% of the controlling interest in Hemmer. We entered into foreign exchange derivative contracts to economically hedge the foreign currency exposure related to the cash consideration for the Hemmer Acquisition. See Note 11, Financial Instruments , for additional information. We utilized fair values at the Hemmer Acquisition Date to allocate the total consideration exchanged to the net tangible and intangible assets acquired and liabilities assumed. The purchase price allocation for the Hemmer Acquisition became final during the first quarter of 2023. The final purchase price allocation to assets acquired and liabilities assumed in the Hemmer Acquisition was (in millions): Initial Allocation (a) Adjustments Final Allocation Cash $ 1 $ — $ 1 Trade receivables 13 — 13 Inventories 17 — 17 Other current assets 2 — 2 Property, plant and equipment, net 14 — 14 Identifiable intangible assets 122 — 122 Other non-current assets 13 4 17 Short-term debt (9) — (9) Trade payables (11) — (11) Other current liabilities (31) — (31) Long-term debt (11) — (11) Other non-current liabilities (44) — (44) Net assets acquired 76 4 80 Noncontrolling interest (16) — (16) Goodwill on acquisition 219 (4) 215 Total consideration $ 279 $ — $ 279 (a) As reported in Note 4, Acquisitions and Divestitures , to our condensed consolidated financial statements in our Quarterly Report on Form 10-Q for the three months ended June 25, 2022. The Hemmer Acquisition preliminarily resulted in $219 million of non-tax deductible goodwill relating principally to Hemmer’s long-term experience and large presence operating in emerging markets. In the fourth quarter of 2022, a portion of the goodwill became tax deductible following the merger of Hemmer into our existing legal entity structure. This goodwill was assigned to the Latin America (“LATAM”) reporting unit within our International segment. In the fourth quarter of 2022, certain insignificant measurement period adjustments were made to the initial allocation, and the final amount of goodwill was adjusted to $215 million. The purchase price allocation to identifiable intangible assets acquired in the Hemmer Acquisition was: Fair Value Weighted Average Life Definite-lived trademarks $ 101 13 Customer-related assets 21 15 Total $ 122 We valued trademarks using the relief from royalty method and customer-related assets using the distributor method. Some of the more significant assumptions inherent in developing the valuations included the estimated annual net cash flows for each definite-lived intangible asset (including net sales, cost of products sold, selling and marketing costs, and working capital/contributory asset charges), the discount rate that appropriately reflects the risk inherent in each future cash flow stream, the assessment of each asset’s life cycle, and competitive trends, as well as other factors. We determined the assumptions used in the financial forecasts using historical data, supplemented by current and anticipated market conditions, estimated product category growth rates, management’s plans, and market comparables. We used carrying values as of the Hemmer Acquisition Date to value certain current and non-current assets and liabilities, as we determined that they represented the fair value of those items at such date. Just Spices Acquisition: On January 18, 2022 (the “Just Spices Acquisition Date”), we acquired 85% of the shares of Just Spices GmbH (“Just Spices”), a German-based company focused on direct-to-consumer sales of premium spice blends, from certain third-party shareholders (the “Just Spices Acquisition”). The Just Spices Acquisition was accounted for under the acquisition method of accounting for business combinations. Total cash consideration related to the Just Spices Acquisition was approximately 214 million euros (approximately $243 million at the Just Spices Acquisition Date). A noncontrolling interest was recognized at fair value, which was determined to be the noncontrolling interest’s proportionate share of the acquiree’s identifiable net assets, as of the Just Spices Acquisition Date. Under the terms of certain transaction agreements, Just Spices’ other equity holders each have a put option to require us to purchase the remaining equity interests beginning three years after the Just Spices Acquisition Date. If the put option is not exercised, we have a call option to acquire the remaining equity interests of Just Spices. Considering the contractual terms related to the noncontrolling interest, it is classified as redeemable noncontrolling interest on our condensed consolidated balance sheet. Subsequent to the Just Spices Acquisition, the redeemable noncontrolling interest is measured at the greater of the amount that would be paid if settlement occurred as of the balance sheet date based on the contractually defined redemption value and its carrying amount adjusted for the net income/(loss) attributable to the noncontrolling interest. We utilized fair values at the Just Spices Acquisition Date to allocate the total consideration exchanged to the net tangible and intangible assets acquired and liabilities assumed. The purchase price allocation for the Just Spices Acquisition was final as of December 31, 2022. The final purchase price allocation to assets acquired and liabilities assumed in the Just Spices Acquisition was (in millions): Final Allocation Cash $ 2 Trade receivables 4 Inventories 7 Other current assets 9 Property, plant and equipment, net 1 Identifiable intangible assets 172 Other non-current assets 7 Trade payables (10) Other current liabilities (12) Other non-current liabilities (54) Net assets acquired 126 Redeemable noncontrolling interest (39) Goodwill on acquisition 156 Total consideration $ 243 The Just Spices Acquisition preliminarily resulted in $167 million of non-tax deductible goodwill relating principally to Just Spices’ social media presence. This goodwill was assigned to the Continental Europe reporting unit within our International segment. In 2022, certain insignificant measurement period adjustments were made to the initial allocation, and the final amount of goodwill was adjusted to $156 million. The purchase price allocation to identifiable intangible assets acquired in the Just Spices Acquisition was: Fair Value Weighted Average Life Definite-lived trademarks $ 72 10 Customer-related assets 100 15 Total $ 172 We valued trademarks using the relief from royalty method and customer-related assets using the distributor method. Some of the more significant assumptions inherent in developing the valuations included the estimated annual net cash flows for each definite-lived intangible asset (including net sales, cost of products sold, selling and marketing costs, and working capital/contributory asset charges), the discount rate that appropriately reflects the risk inherent in each future cash flow stream, the assessment of each asset’s life cycle, and competitive trends, as well as other factors. We determined the assumptions used in the financial forecasts using historical data, supplemented by current and anticipated market conditions, estimated product category growth rates, management’s plans, and market comparables. We used carrying values as of the Just Spices Acquisition Date to value certain current and non-current assets and liabilities, as we determined that they represented the fair value of those items at such date. Deal Costs: We incurred insignificant deal costs for the three months ended April 1, 2023 and the three months ended March 26, 2022 related to our acquisitions and divestitures. We recognized these deal costs in selling, general and administrative expenses (“SG&A”). |
Restructuring Activities (Notes
Restructuring Activities (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Activities See our consolidated financial statements and related notes in our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on our restructuring activities. Restructuring Activities: We have restructuring programs globally, which are focused primarily on reducing our overall cost structure and streamlining our organizational design. For the three months ended April 1, 2023, we eliminated approximately 335 positions related to these programs. As of April 1, 2023, we expect to eliminate approximately 100 additional positions during the remainder of 2023, primarily in our International segment. For the three months ended April 1, 2023, restructuring activities resulted in income of $8 million and included $2 million of asset-related costs and a benefit of $10 million in other implementation costs. Restructuring activities resulted in expenses of $19 million for the three months ended March 26, 2022. Our net liability balance for restructuring project costs that qualify as exit and disposal costs under U.S. GAAP was (in millions): Severance and Employee Benefit Costs Other Exit Costs Total Balance at December 31, 2022 $ 28 $ 11 $ 39 Cash payments (10) (1) (11) Non-cash utilization (2) (1) (3) Balance at April 1, 2023 $ 16 $ 9 $ 25 We expect the liability for severance and employee benefit costs as of April 1, 2023 to be paid by the end of 2023. 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 2024 and 2026. Total Expenses/(Income): Total expense/(income) related to restructuring activities, by income statement caption, were (in millions): For the Three Months Ended April 1, 2023 March 26, 2022 Severance and employee benefit costs - Cost of products sold $ 2 $ (3) Severance and employee benefit costs - SG&A (4) 13 Severance and employee benefit costs - Other expense/(income) 2 — Asset-related costs - Cost of products sold 2 4 Other costs - Cost of products sold 2 3 Other costs - SG&A (12) 2 $ (8) $ 19 We do not include our restructuring activities within Segment Adjusted EBITDA (as defined in Note 16, Segment Reporting ). The pre-tax impact of allocating such expenses/(income) to our segments would have been (in millions): For the Three Months Ended April 1, 2023 March 26, 2022 North America $ 6 $ 20 International (1) (2) General corporate expenses (13) 1 $ (8) $ 19 |
Inventories (Notes)
Inventories (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in millions): April 1, 2023 December 31, 2022 Packaging and ingredients $ 965 $ 1,032 Spare parts 213 208 Work in process 330 334 Finished products 2,508 2,077 Inventories $ 4,016 $ 3,651 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
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): North America International Total Balance at December 31, 2022 $ 27,685 $ 3,148 $ 30,833 Translation adjustments and other 3 52 55 Balance at April 1, 2023 $ 27,688 $ 3,200 $ 30,888 As of April 1, 2023, we maintain 11 reporting units, seven of which comprise our goodwill balance. These seven reporting units had an aggregate goodwill carrying amount of $30.9 billion at April 1, 2023. As of their latest impairment test, our reporting units with 20% or less fair value over carrying amount had an aggregate goodwill carrying amount of $16.4 billion and included Taste, Meals, and Away From Home (“TMA”), Canada and North America Coffee (“CNAC”), and Continental Europe; and our reporting units with between 20-50% fair value over carrying amount had an aggregate goodwill carrying amount of $14.5 billion and included Fresh, Beverages, and Desserts (“FBD”), Northern Europe, Asia, and LATAM. Accumulated impairment losses to goodwill were $11.3 billion as of April 1, 2023 and December 31, 2022. No events occurred during the three months ended April 1, 2023 or the three months ended March 26, 2022 that indicated it was more likely than not that our goodwill was impaired. Additional Goodwill Considerations 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. Our current expectations also include certain assumptions that could be negatively impacted if we are unable to meet our pricing expectations in relation to inflation. If current expectations of future growth rates and margins are not met, if market factors outside of our control, such as discount rates, income tax rates, foreign currency exchange rates, or inflation, change, or if management’s expectations or plans otherwise change, including updates to our long-term operating plans, then one or more of our reporting units might become impaired in the future. Additionally, any decisions to divest certain non-strategic assets has led and could in the future lead to goodwill impairments. Our reporting units that were impaired in 2022 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, reporting units that have 20% or less excess fair value over carrying amount as of their latest impairment test 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, these amounts are also susceptible to impairments if any assumptions, estimates, or market factors significantly change in the future. 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 31, 2022 $ 38,552 Translation adjustments and other 68 Balance at April 1, 2023 $ 38,620 Our indefinite-lived intangible asset balance primarily consists of a number of individual brands, which had an aggregate carrying amount of $38.6 billion at April 1, 2023. As of their latest impairment test, brands with 20% or less fair value over carrying amount had an aggregate carrying amount after impairment of $16.6 billion, brands with between 20-50% fair value over carrying amount had an aggregate carrying amount of $2.5 billion, and brands that had over 50% fair value over carrying amount had an aggregate carrying amount of $19.4 billion. No events occurred during the three months ended April 1, 2023 or the three months ended March 26, 2022 that indicated it was more likely than not that any brand was impaired. Additional Indefinite-Lived Intangible Asset Considerations 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. Our current expectations also include certain assumptions that could be negatively impacted if we are unable to meet our pricing expectations in relation to inflation. If current expectations of future growth rates and margins are not met, if market factors outside of our control, such as discount rates, income tax rates, foreign currency exchange rates, or inflation, change, or if management’s expectations or plans otherwise change, including updates to our long-term operating plans, then one or more of our brands might become impaired in the future. Additionally, any decisions to divest certain non-strategic assets has led and could in the future lead to intangible asset impairments. Our brands that were impaired in 2022 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 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, these amounts are also susceptible to impairments if any assumptions, estimates, or market factors significantly change in the future. Definite-lived intangible assets: Definite-lived intangible assets were (in millions): April 1, 2023 December 31, 2022 Gross Accumulated Net Gross Accumulated Net Trademarks $ 2,225 $ (672) $ 1,553 $ 2,223 $ (649) $ 1,574 Customer-related assets 3,698 (1,216) 2,482 3,690 (1,177) 2,513 Other 14 (4) 10 13 (3) 10 $ 5,937 $ (1,892) $ 4,045 $ 5,926 $ (1,829) $ 4,097 Amortization expense for definite-lived intangible assets was $62 million for the three months ended April 1, 2023 and $64 million for the three months ended March 26, 2022. Aside from amortization expense, the change in definite-lived intangible assets from December 31, 2022 to April 1, 2023 primarily reflects the impact of foreign currency. We estimate that amortization expense related to definite-lived intangible assets will be approximately $250 million in 2023 and each of the following five years. |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes consists of provisions for federal, state, and non-U.S. 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, the calculation of the percentage point impact of goodwill impairment and other items on the effective tax rate are affected by income/(loss) before income taxes. Further, 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 for the three months ended April 1, 2023 was an expense of 20.3% on pre-tax income. Our effective tax rate was favorably impacted by the geographic mix of pre-tax income in various non-U.S. jurisdictions. Our effective tax rate for the three months ended March 26, 2022 was an expense of 19.6% on pre-tax income. Our effective tax rate was favorably impacted by the geographic mix of pre-tax income in various non-U.S. jurisdictions and the impact of certain net discrete items, primarily the reversal of uncertain tax position reserves in certain foreign jurisdictions. The year over year increase was due primarily to the impact of changes in uncertain tax position reserves. Other Income Tax Matters: As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022, we are currently under examination for income taxes by the Internal Revenue Service (“IRS”) for the years 2018 and 2019. We are continuing to respond to Information Document Requests. We received a draft economist report and expect to receive a Notice of Proposed Adjustment relating to transfer pricing with our foreign subsidiaries asserting that our U.S. taxable income should have been higher in 2018 and 2019, which would result in additional U.S. tax expense for 2018 and 2019 plus interest and potential penalties. We strongly disagree with the IRS’s suggested position, believe that our tax positions are properly supported, and intend to vigorously contest the position taken by the IRS and pursue all available administrative and judicial remedies. We continue to maintain our operating model and believe our income tax reserves are appropriate for all open tax years and that final adjudication of this matter will not have a material impact on our results of operations and cash flows. However, the ultimate outcome of this matter is uncertain, and if we are required to pay the IRS additional U.S. taxes, interest, and potential penalties, our results of operations and cash flows could be materially affected. |
Employees' Stock Incentive Plan
Employees' Stock Incentive Plans (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
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 31, 2022 9,559,063 $ 46.80 Granted 794,301 38.40 Forfeited (200,449) 56.49 Exercised (1,161,560) 35.58 Outstanding at April 1, 2023 8,991,355 47.29 The aggregate intrinsic value of stock options exercised during the period was insignificant for the three months ended April 1, 2023 . 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 31, 2022 9,330,718 $ 34.36 Granted 2,319,570 38.42 Forfeited (78,684) 36.27 Vested (1,576,924) 35.32 Outstanding at April 1, 2023 9,994,680 35.13 The aggregate fair value of RSUs that vested during the period was $61 million for the three months ended April 1, 2023. 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 31, 2022 4,018,654 $ 32.15 Granted 2,234,387 33.33 Forfeited (47,673) 34.35 Vested (47,948) 22.25 Outstanding at April 1, 2023 6,157,420 32.48 The aggregate fair value of PSUs that vested during the period was insignificant for the three months ended April 1, 2023. |
Postemployment Benefits (Notes)
Postemployment Benefits (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
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 31, 2022 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 April 1, 2023 March 26, 2022 April 1, 2023 March 26, 2022 Service cost $ — $ 1 $ 2 $ 4 Interest cost 36 24 15 10 Expected return on plan assets (49) (48) (21) (19) Amortization of unrecognized losses/(gains) — — 4 — Special/contractual termination benefits — — 2 — Net pension cost/(benefit) $ (13) $ (23) $ 2 $ (5) 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 $3 million during the three months ended April 1, 2023 and plan to make further contributions of approximately $7 million during the remainder of 2023. We did not contribute to our U.S. pension plans during the three months ended April 1, 2023 and do not plan to make contributions during the remainder of 2023. Estimated future contributions take into consideration current economic conditions, which at this time are expected to have minimal impact on expected contributions for the remainder of 2023. 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 April 1, 2023 March 26, 2022 Service cost $ 1 $ 1 Interest cost 9 5 Expected return on plan assets (14) (14) Amortization of prior service costs/(credits) (3) (4) Amortization of unrecognized losses/(gains) (4) (4) Net postretirement cost/(benefit) $ (11) $ (16) 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 April 1, 2023, we contributed $3 million to our postretirement benefit plans. We plan to make further contributions of approximately $9 million to our postretirement benefit plans during the remainder of 2023. Estimated future contributions take into consideration current economic conditions, which at this time are expected to have minimal impact on expected contributions for the remainder of 2023. 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 |
Apr. 01, 2023 | |
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 31, 2022 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 April 1, 2023 December 31, 2022 Commodity contracts $ 1,043 $ 1,166 Foreign exchange contracts 2,931 3,139 Cross-currency contracts 6,336 6,336 Interest rate contracts 400 — 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): April 1, 2023 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) $ — $ — $ 30 $ 13 $ 30 $ 13 Cross-currency contracts (b) — — 231 182 231 182 Interest rate contracts (c) — — — 3 — 3 Derivatives not designated as hedging instruments: Commodity contracts (d) 26 81 6 4 32 85 Foreign exchange contracts (a) — — 22 23 22 23 Total fair value $ 26 $ 81 $ 289 $ 225 $ 315 $ 306 (a) At April 1, 2023, the fair value of our derivative assets was recorded in other current assets ($50 million) and other non-current assets ($2 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($34 million) and other non-current liabilities ($2 million). (b) At April 1, 2023, the fair value of our derivative assets was recorded in other current assets ($125 million) and other non-current assets ($106 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($57 million) and other non-current liabilities ($125 million). (c) At April 1, 2023, the fair value of our derivative liabilities was recorded in other current liabilities. (d) At April 1, 2023, the fair value of our derivative assets was recorded in other current assets and the fair value of derivative liabilities was recorded in other current liabilities. December 31, 2022 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) $ — $ — $ 40 $ 10 $ 40 $ 10 Cross-currency contracts (b) — — 236 183 236 183 Derivatives not designated as hedging instruments: Commodity contracts (c) 33 61 — 15 33 76 Foreign exchange contracts (a) — — 33 25 33 25 Total fair value $ 33 $ 61 $ 309 $ 233 $ 342 $ 294 (a) At December 31, 2022, the fair value of our derivative assets was recorded in other current assets ($70 million) and other non-current assets ($3 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($33 million) and other non-current liabilities ($2 million). (b) At December 31, 2022, the fair value of our derivative assets was recorded in other current assets ($132 million) and other non-current assets ($104 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($59 million) and other non-current liabilities ($124 million). (c) At December 31, 2022, the fair value of our derivative assets was recorded in other current assets and the fair value of derivative liabilities was recorded in 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 $203 million at April 1, 2023 and $222 million at December 31, 2022. We had posted collateral related to commodity derivative margin requirements of $72 million at April 1, 2023 and $43 million at December 31, 2022, which were included in prepaid expenses on our condensed consolidated balance sheets. 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, cross-currency swaps, and treasury lock agreements. 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. Treasury lock agreements are valued based on forward U.S. Treasury interest 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 April 1, 2023, we had the following items designated as net investment hedges: • Non-derivative foreign-denominated debt with principal amounts of €650 million and £400 million; and • Cross-currency contracts with notional amounts of C$1.4 billion ($1.0 billion), €1.9 billion ($2.1 billion), JPY9.6 billion ($67 million), and CNH500 million ($68 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 April 1, 2023, we had euro intercompany loans with an aggregate notional amount of $108 million designated as net investment hedges. 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 April 1, 2023, we had entered into foreign exchange contracts designated as cash flow hedges for periods not exceeding the next two years, cross-currency contracts designated as cash flow hedges for periods not exceeding the next six years, and interest rate contracts designated as cash flow hedges for periods not exceeding two months. Deferred Hedging Gains and Losses on Cash Flow Hedges: Based on our valuation at April 1, 2023 and assuming market rates remain constant through contract maturities, we expect transfers to net income/(loss) of unrealized gains during the next 12 months on foreign currency cash flow hedges to be approximately $20 million and on cross-currency cash flow hedges to be insignificant. 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. Acquisition Hedging: We entered into foreign exchange derivative contracts to economically hedge the foreign currency exposure related to the cash consideration for the Hemmer Acquisition. For the three months ended March 26, 2022, the related derivative gains were $38 million, which were recorded within other expense/(income). These gains were classified as other losses/(gains) related to acquisitions and divestitures. These derivative contracts settled in our second quarter of 2022. See Note 4, Acquisitions and Divestitures , for additional information related to the Hemmer Acquisition. 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 April 1, 2023 March 26, 2022 Cash flow hedges: Foreign exchange contracts $ (4) $ (9) Cost of products sold Foreign exchange contracts (excluded component) (2) — Cost of products sold Cross-currency contracts (1) (31) Other expense/(income) Cross-currency contracts (excluded component) 6 8 Other expense/(income) Cross-currency contracts (6) (7) Interest expense Interest rate contracts (3) — Interest expense Net investment hedges: Foreign exchange contracts 1 (1) Other expense/(income) Cross-currency contracts (12) 35 Other expense/(income) Cross-currency contracts (excluded component) 8 11 Interest expense Total gains/(losses) recognized in statements of comprehensive income $ (13) $ 6 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 April 1, 2023 March 26, 2022 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 $ 4,376 $ 227 $ (35) $ 4,114 $ 242 $ (98) Gains/(losses) related to derivatives designated as hedging instruments: Cash flow hedges: Foreign exchange contracts $ 10 $ — $ — $ (6) $ — $ — Foreign exchange contracts (excluded component) (3) — — (1) — — Cross-currency contracts — (6) 14 — (7) (35) Cross-currency contracts (excluded component) — — 6 — — 8 Net investment hedges: Foreign exchange contracts (excluded component) — — — — 1 — Cross-currency contracts (excluded component) — 8 — — 9 — Gains/(losses) related to derivatives not designated as hedging instruments: Commodity contracts (47) — — 139 — — Foreign exchange contracts — — (12) — — 38 Total gains/(losses) recognized in statements of income $ (40) $ 2 $ 8 $ 132 $ 3 $ 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 losses of $20 million for the three months ended April 1, 2023 and pre-tax gains of $32 million for the three months ended March 26, 2022. These amounts were recognized in other comprehensive income/(loss). |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income/(Losses) (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
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 31, 2022 $ (2,845) $ (30) $ 65 $ (2,810) Foreign currency translation adjustments 115 — — 115 Net deferred gains/(losses) on net investment hedges (24) — — (24) Amounts excluded from the effectiveness assessment of net investment hedges 6 — — 6 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (6) — — (6) Net deferred gains/(losses) on cash flow hedges — — (15) (15) Amounts excluded from the effectiveness assessment of cash flow hedges — — 4 4 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) — — (16) (16) Net postemployment benefit losses/(gains) reclassified to net income/(loss) — (2) — (2) Total other comprehensive income/(loss) 91 (2) (27) 62 Balance as of April 1, 2023 $ (2,754) $ (32) $ 38 $ (2,748) 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 April 1, 2023 March 26, 2022 Before Tax Amount Tax Net of Tax Amount Before Tax Amount Tax Net of Tax Amount Foreign currency translation adjustments $ 115 $ — $ 115 $ (32) $ — $ (32) Net deferred gains/(losses) on net investment hedges (31) 7 (24) 66 (14) 52 Amounts excluded from the effectiveness assessment of net investment hedges 8 (2) 6 11 (2) 9 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (8) 2 (6) (10) 2 (8) Net deferred gains/(losses) on cash flow hedges (14) (1) (15) (47) 13 (34) Amounts excluded from the effectiveness assessment of cash flow hedges 4 — 4 8 (1) 7 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) (21) 5 (16) 41 (19) 22 Net postemployment benefit losses/(gains) reclassified to net income/(loss) (3) 1 (2) (8) 4 (4) 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 April 1, 2023 March 26, 2022 Losses/(gains) on net investment hedges: Foreign exchange contracts (a) $ — $ (1) Interest expense Cross-currency contracts (a) (8) (9) Interest expense Losses/(gains) on cash flow hedges: Foreign exchange contracts (b) (7) 7 Cost of products sold Cross-currency contracts (b) (20) 27 Other expense/(income) Cross-currency contracts (b) 6 7 Interest expense Losses/(gains) on hedges before income taxes (29) 31 Losses/(gains) on hedges, income taxes 7 (17) Losses/(gains) on hedges $ (22) $ 14 Losses/(gains) on postemployment benefits: Amortization of unrecognized losses/(gains) (c) $ — $ (4) Amortization of prior service costs/(credits) (c) (3) (4) Losses/(gains) on postemployment benefits before income taxes (3) (8) Losses/(gains) on postemployment benefits, income taxes 1 4 Losses/(gains) on postemployment benefits $ (2) $ (4) (a) Represents recognition of the excluded component in net income/(loss). (b) Includes amortization of the excluded component and the effective portion of the related hedges. (c) These components are included in the computation of net periodic postemployment benefit costs. See Note 10, Postemployment Benefits , for additional information. In this note we have excluded activity and balances related to noncontrolling interest due to their insignificance. This activity was primarily related to foreign currency translation adjustments. |
Financing Arrangements (Notes)
Financing Arrangements (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Transfers and Servicing [Abstract] | |
Financing Arrangements | Financing Arrangements Product Financing Arrangements: We enter into various product financing arrangements to facilitate supply from our vendors. Balance sheet classification is based on the nature of the 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 $71 million at April 1, 2023 and approximately $87 million at December 31, 2022 on our condensed consolidated balance sheets related to these arrangements. Transfers of Financial Assets: Since 2020, we have had a nonrecourse accounts receivable factoring program whereby certain eligible receivables are sold to third party financial institutions in exchange for cash. The program provides us with an additional means for managing liquidity. Under the terms of the arrangement, we act as the collecting agent on behalf of the financial institutions to collect amounts due from customers for the receivables sold. We account for the transfer of receivables as a true sale at the point control is transferred through derecognition of the receivable on our condensed consolidated balance sheet. Receivables sold under this accounts receivable factoring program were approximately $100 million during the three months ended April 1, 2023, with $100 million outstanding as of April 1, 2023. The incremental costs of factoring receivables under this arrangement were insignificant for the three months ended April 1, 2023. No receivables were sold under this accounts receivable factoring program during the three months ended March 26, 2022, and there was an insignificant amount outstanding as of December 31, 2022. The proceeds from the sales of receivables are included in cash flows from operating activities on the condensed consolidated statement of cash flows. As collecting agent on the sold receivables, we had $68 million of cash collected that was not yet remitted to the third party financial institutions as of April 1, 2023. This obligation is reported within other current liabilities on the condensed consolidated balance sheet as of April 1, 2023 and within cash flows from financing activities on the condensed consolidated statement of cash flows for the three months ended April 1, 2023. As of December 31, 2022, we had an insignificant amount of cash collected and not yet remitted to the bank. Trade Payables Programs: In order to manage our cash flow and related liquidity, we work with our suppliers to optimize our terms and conditions, which include the extension of payment terms. Our current payment terms with our suppliers, which we deem to be commercially reasonable, generally range from zero to 200 days. We also maintain agreements with third party administrators that allow participating suppliers to track payment obligations from us, and, at the sole discretion of the supplier, sell one or more of those payment obligations to participating financial institutions. We have no economic interest in a supplier’s decision to enter into these agreements and no direct financial relationship with the financial institutions. We pledged no assets in connection with our trade payable programs. Our obligations to our suppliers, including amounts due and scheduled payment terms, are not impacted. All amounts due to participating suppliers are paid to the third party on the original invoice due dates, regardless of whether a particular invoice was sold. Supplier participation in these agreements is voluntary. We estimate that the amounts outstanding under these programs were $866 million at April 1, 2023 and $1.1 billion at December 31, 2022. The amounts were included in trade payables on our condensed consolidated balance sheets. |
Commitments, Contingencies and
Commitments, Contingencies and Debt (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
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: The Kraft Heinz Company 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 amended class action complaint, which was filed on August 14, 2020 and also names 3G Capital, Inc. and several of its subsidiaries and affiliates (the “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, Company documents, 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. In February 2023, the parties to the litigation reached a preliminary settlement agreement. Based upon our current estimate for the ultimate resolution of this matter, in the fourth quarter of 2022, we recorded a net expense of $210 million within SG&A in our consolidated statements of income. This expense contemplates the Company’s estimated liability after insurance recoveries and contributions from other defendants. The Company’s estimated liability and the insurance recoveries are reflected in current liabilities and current assets on the condensed consolidated balance sheets at December 31, 2022 and April 1, 2023. While it is possible that the ultimate amount of our liability in connection with this settlement could be different than the amount accrued, we believe that any difference between that ultimate liability and the amount already accrued will not have a material impact on our financial condition, results of operations, or cash flows. Any eventual final settlement agreement will be subject to approval by the United States District Court for the Northern District of Illinois. Certain of The Kraft Heinz Company’s current and former officers and directors and the 3G Entities are also named as defendants in a stockholder derivative action, In re Kraft Heinz Shareholder Derivative Litigation , which had been previously consolidated in the United States District Court for the Western District of Pennsylvania, and is now pending in the United States District Court for the Northern District of Illinois. The court appointed lead plaintiffs and plaintiffs’ counsel on October 21, 2021, and lead plaintiffs filed a consolidated amended complaint on November 22, 2021. The consolidated amended complaint asserts state law claims for alleged breaches of fiduciary duties and unjust enrichment, as well as federal claims for 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 unspecified amount, attorneys’ fees, and other relief. The defendants filed a motion to dismiss the consolidated amended complaint, which motion the court granted, without prejudice, on March 31, 2023. The court granted plaintiffs leave to file any consolidated second amended complaint on or before May 1, 2023, which deadline the parties have agreed to extend to May 31, 2023. Certain of The Kraft Heinz Company’s current and former officers and directors and the 3G Entities are named as defendants in two stockholder derivative actions pending in the Delaware Court of Chancery, Datnoff, et al. v. Behring, et al. , which was filed on May 6, 2022, and Felicetti, et al. v. Behring, et al. , which was filed on March 6, 2023. The complaints allege state law claims and contend that the Company’s Board of Directors wrongfully refused plaintiffs’ demands to pursue legal action against the named defendants. Specifically, the complaints allege 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. The complaints further allege that the 3G Entities and certain of the Company’s current and former officers and directors breached their fiduciary duties by engaging in insider trading and misappropriating the Company’s material, non-public information, or aided and abetted such alleged breaches of fiduciary duty. The complaints seek relief against the defendants, principally 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. Debt We may from time to time seek to retire or purchase our outstanding debt through redemptions, tender offers, cash purchases, prepayments, refinancing, exchange offers, open market or privately negotiated transactions, Rule 10b5-1 plans, or otherwise. Cash payments related to debt extinguishment are classified as cash outflows from financing activities on the condensed consolidated statements of cash flows. Any gains or losses on extinguishment of debt are recognized in interest expense on the condensed consolidated statements of income. Borrowing Arrangements: See Note 16, Debt , to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2022 for information on our borrowing arrangements. Our long-term debt contains customary representations, covenants, and events of default. We were in compliance with all financial covenants as of April 1, 2023 . Debt Repayments: In March 2022, we repaid $6 million aggregate principal amount of senior notes that matured in the period. Fair Value of Debt: At April 1, 2023, the aggregate fair value of our total debt was $19.4 billion as compared with a carrying value of $20.1 billion. At December 31, 2022, the aggregate fair value of our total debt was $18.7 billion as compared with a carrying value of $20.1 billion. Our short-term debt had a carrying value that approximated its fair value at April 1, 2023 and December 31, 2022. We determined the fair value of our long-term debt 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 |
Apr. 01, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Our earnings per common share (“EPS”) were: For the Three Months Ended April 1, 2023 March 26, 2022 (in millions, except per share data) Basic Earnings Per Common Share: Net income/(loss) attributable to common shareholders $ 836 $ 776 Weighted average shares of common stock outstanding 1,226 1,225 Net earnings/(loss) $ 0.68 $ 0.63 Diluted Earnings Per Common Share: Net income/(loss) attributable to common shareholders $ 836 $ 776 Weighted average shares of common stock outstanding 1,226 1,225 Effect of dilutive equity awards 8 9 Weighted average shares of common stock outstanding, including dilutive effect 1,234 1,234 Net earnings/(loss) $ 0.68 $ 0.63 |
Segment Reporting (Notes)
Segment Reporting (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We manage and report our operating results through two reportable segments defined by geographic region: North America and International. 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 restructuring activities); in addition to these adjustments, we exclude, when they occur, the impacts of divestiture-related license income, restructuring activities, deal costs, unrealized gains/(losses) on commodity hedges (the unrealized gains and losses are recorded in general corporate expenses until realized; once realized, the gains and losses are recorded in the applicable segment’s operating results), impairment losses, certain non-ordinary course legal and regulatory matters, and equity award compensation expense (excluding restructuring activities). Segment Adjusted EBITDA is a tool that can assist management and investors in comparing our performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our underlying operations. Management also uses Segment Adjusted EBITDA to allocate resources. 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 April 1, 2023 March 26, 2022 Net sales: North America $ 4,885 $ 4,601 International 1,604 1,444 Total net sales $ 6,489 $ 6,045 Segment Adjusted EBITDA was (in millions): For the Three Months Ended April 1, 2023 March 26, 2022 Segment Adjusted EBITDA: North America $ 1,333 $ 1,173 International 255 242 General corporate expenses (108) (73) Depreciation and amortization (excluding restructuring activities) (217) (217) Divestiture-related license income 13 14 Restructuring activities 10 (19) Deal costs — (8) Unrealized gains/(losses) on commodity hedges (11) 92 Impairment losses — (55) Certain non-ordinary course legal and regulatory matters (1) — Equity award compensation expense (31) (34) Operating income/(loss) 1,243 1,115 Interest expense 227 242 Other expense/(income) (35) (98) Income/(loss) before income taxes $ 1,051 $ 971 Net sales by platform were (in millions): For the Three Months Ended April 1, 2023 March 26, 2022 Taste Elevation $ 2,142 $ 1,830 Fast Fresh Meals 1,373 1,358 Easy Meals Made Better 1,341 1,238 Real Food Snacking 295 315 Flavorful Hydration 490 455 Easy Indulgent Desserts 224 217 Other 624 632 Total net sales $ 6,489 $ 6,045 Net sales by product category were (in millions): For the Three Months Ended April 1, 2023 March 26, 2022 Condiments and sauces $ 2,169 $ 1,827 Cheese and dairy 917 885 Ambient foods 749 722 Frozen and chilled foods 719 674 Meats and seafood 595 628 Refreshment beverages 489 456 Coffee 220 214 Infant and nutrition 93 104 Desserts, toppings, and baking 259 246 Other 279 289 Total net sales $ 6,489 $ 6,045 |
Other Financial Data (Notes)
Other Financial Data (Notes) | 3 Months Ended |
Apr. 01, 2023 | |
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 April 1, 2023 March 26, 2022 Amortization of postemployment benefit plans prior service costs/(credits) $ (3) $ (4) Net pension and postretirement non-service cost/(benefit) (a) (22) (46) Loss/(gain) on sale of business 1 1 Interest income (6) (5) Foreign exchange losses/(gains) 6 (32) Derivative losses/(gains) (8) (11) Other miscellaneous expense/(income) (3) (1) Other expense/(income) $ (35) $ (98) (a) Excludes amortization of postemployment benefit plans 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 10, Postemployment Benefits , for additional information on these components, including any curtailments and settlements, as well as information on our prior service costs/(credits) amortization. See Note 11, Financial Instruments , for information related to our derivative impacts. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Apr. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Period | We operate on a 52- or 53-week fiscal year ending on the last Saturday in December in each calendar year. Unless the context requires otherwise, references to years and quarters contained herein pertain to our fiscal years and fiscal quarters. Our 2023 fiscal year is scheduled to be a 52-week period ending on December 30, 2023, and our 2022 fiscal year was a 53-week period that ended on December 31, 2022. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include The Kraft Heinz Company and all of our controlled subsidiaries. All intercompany transactions are eliminated. |
Reportable Segments | Reportable Segments We manage and report our operating results through two reportable segments defined by geographic region: North America and International. |
Use of Estimates | 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 | Reclassifications We made reclassifications and adjustments to certain previously reported financial information to conform to our current period presentation. |
Cash and Cash Equivalents, Policy | Cash , Cash Equivalents , and Restricted Cash |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 3 Months Ended |
Apr. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Standards | Accounting Standards Adopted in the Current Year Supplier Finance Programs (Topic 405-50) - Disclosure of Supplier Finance Program Obligations: In September 2022, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2022-04 to add disclosure requirements relative to supplier financing programs under ASC 405, Liabilities . The guidance requires entities that maintain supplier financing programs to provide information in their financial statements about their use of supplier finance programs and their effect on the entity’s working capital, liquidity, and cash flows. Specifically, the amendment requires entities to disclose the key terms of their programs, amounts outstanding, balance sheet presentation, and a rollforward of amounts outstanding during the annual period. Only the amount outstanding at the end of the period is required to be disclosed in interim periods. We adopted this ASU when it became effective in the first quarter of our fiscal year 2023, except for the rollforward requirement, which is effective in fiscal year 2024. The adoption of this ASU did not have a significant impact on our financial statements and related disclosures. |
Acquisitions and Divestitures_2
Acquisitions and Divestitures (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Hemmer Acquisition | |
Business Acquisition [Line Items] | |
Purchase Price Allocation to Assets Acquired and Liabilities Assumed | Initial Allocation (a) Adjustments Final Allocation Cash $ 1 $ — $ 1 Trade receivables 13 — 13 Inventories 17 — 17 Other current assets 2 — 2 Property, plant and equipment, net 14 — 14 Identifiable intangible assets 122 — 122 Other non-current assets 13 4 17 Short-term debt (9) — (9) Trade payables (11) — (11) Other current liabilities (31) — (31) Long-term debt (11) — (11) Other non-current liabilities (44) — (44) Net assets acquired 76 4 80 Noncontrolling interest (16) — (16) Goodwill on acquisition 219 (4) 215 Total consideration $ 279 $ — $ 279 |
Purchase Price Allocation to Identifiable Intangible Assets Acquired | Fair Value Weighted Average Life Definite-lived trademarks $ 101 13 Customer-related assets 21 15 Total $ 122 |
Just Spices Acquisition | |
Business Acquisition [Line Items] | |
Purchase Price Allocation to Assets Acquired and Liabilities Assumed | The final purchase price allocation to assets acquired and liabilities assumed in the Just Spices Acquisition was (in millions): Final Allocation Cash $ 2 Trade receivables 4 Inventories 7 Other current assets 9 Property, plant and equipment, net 1 Identifiable intangible assets 172 Other non-current assets 7 Trade payables (10) Other current liabilities (12) Other non-current liabilities (54) Net assets acquired 126 Redeemable noncontrolling interest (39) Goodwill on acquisition 156 Total consideration $ 243 |
Purchase Price Allocation to Identifiable Intangible Assets Acquired | The purchase price allocation to identifiable intangible assets acquired in the Just Spices Acquisition was: Fair Value Weighted Average Life Definite-lived trademarks $ 72 10 Customer-related assets 100 15 Total $ 172 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
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 was (in millions): Severance and Employee Benefit Costs Other Exit Costs Total Balance at December 31, 2022 $ 28 $ 11 $ 39 Cash payments (10) (1) (11) Non-cash utilization (2) (1) (3) Balance at April 1, 2023 $ 16 $ 9 $ 25 |
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 April 1, 2023 March 26, 2022 Severance and employee benefit costs - Cost of products sold $ 2 $ (3) Severance and employee benefit costs - SG&A (4) 13 Severance and employee benefit costs - Other expense/(income) 2 — Asset-related costs - Cost of products sold 2 4 Other costs - Cost of products sold 2 3 Other costs - SG&A (12) 2 $ (8) $ 19 |
Restructuring Costs Excluded from Segments | The pre-tax impact of allocating such expenses/(income) to our segments would have been (in millions): For the Three Months Ended April 1, 2023 March 26, 2022 North America $ 6 $ 20 International (1) (2) General corporate expenses (13) 1 $ (8) $ 19 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following (in millions): April 1, 2023 December 31, 2022 Packaging and ingredients $ 965 $ 1,032 Spare parts 213 208 Work in process 330 334 Finished products 2,508 2,077 Inventories $ 4,016 $ 3,651 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
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): North America International Total Balance at December 31, 2022 $ 27,685 $ 3,148 $ 30,833 Translation adjustments and other 3 52 55 Balance at April 1, 2023 $ 27,688 $ 3,200 $ 30,888 |
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 31, 2022 $ 38,552 Translation adjustments and other 68 Balance at April 1, 2023 $ 38,620 |
Schedule of Definite-Lived Intangible Assets By Major Asset Class | Definite-lived intangible assets were (in millions): April 1, 2023 December 31, 2022 Gross Accumulated Net Gross Accumulated Net Trademarks $ 2,225 $ (672) $ 1,553 $ 2,223 $ (649) $ 1,574 Customer-related assets 3,698 (1,216) 2,482 3,690 (1,177) 2,513 Other 14 (4) 10 13 (3) 10 $ 5,937 $ (1,892) $ 4,045 $ 5,926 $ (1,829) $ 4,097 |
Employees' Stock Incentive Pl_2
Employees' Stock Incentive Plans (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
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 31, 2022 9,559,063 $ 46.80 Granted 794,301 38.40 Forfeited (200,449) 56.49 Exercised (1,161,560) 35.58 Outstanding at April 1, 2023 8,991,355 47.29 |
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 31, 2022 9,330,718 $ 34.36 Granted 2,319,570 38.42 Forfeited (78,684) 36.27 Vested (1,576,924) 35.32 Outstanding at April 1, 2023 9,994,680 35.13 |
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 31, 2022 4,018,654 $ 32.15 Granted 2,234,387 33.33 Forfeited (47,673) 34.35 Vested (47,948) 22.25 Outstanding at April 1, 2023 6,157,420 32.48 |
Postemployment Benefits (Tables
Postemployment Benefits (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
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 April 1, 2023 March 26, 2022 April 1, 2023 March 26, 2022 Service cost $ — $ 1 $ 2 $ 4 Interest cost 36 24 15 10 Expected return on plan assets (49) (48) (21) (19) Amortization of unrecognized losses/(gains) — — 4 — Special/contractual termination benefits — — 2 — Net pension cost/(benefit) $ (13) $ (23) $ 2 $ (5) |
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 April 1, 2023 March 26, 2022 Service cost $ 1 $ 1 Interest cost 9 5 Expected return on plan assets (14) (14) Amortization of prior service costs/(credits) (3) (4) Amortization of unrecognized losses/(gains) (4) (4) Net postretirement cost/(benefit) $ (11) $ (16) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
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 April 1, 2023 December 31, 2022 Commodity contracts $ 1,043 $ 1,166 Foreign exchange contracts 2,931 3,139 Cross-currency contracts 6,336 6,336 Interest rate contracts 400 — |
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): April 1, 2023 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) $ — $ — $ 30 $ 13 $ 30 $ 13 Cross-currency contracts (b) — — 231 182 231 182 Interest rate contracts (c) — — — 3 — 3 Derivatives not designated as hedging instruments: Commodity contracts (d) 26 81 6 4 32 85 Foreign exchange contracts (a) — — 22 23 22 23 Total fair value $ 26 $ 81 $ 289 $ 225 $ 315 $ 306 (a) At April 1, 2023, the fair value of our derivative assets was recorded in other current assets ($50 million) and other non-current assets ($2 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($34 million) and other non-current liabilities ($2 million). (b) At April 1, 2023, the fair value of our derivative assets was recorded in other current assets ($125 million) and other non-current assets ($106 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($57 million) and other non-current liabilities ($125 million). (c) At April 1, 2023, the fair value of our derivative liabilities was recorded in other current liabilities. (d) At April 1, 2023, the fair value of our derivative assets was recorded in other current assets and the fair value of derivative liabilities was recorded in other current liabilities. December 31, 2022 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) $ — $ — $ 40 $ 10 $ 40 $ 10 Cross-currency contracts (b) — — 236 183 236 183 Derivatives not designated as hedging instruments: Commodity contracts (c) 33 61 — 15 33 76 Foreign exchange contracts (a) — — 33 25 33 25 Total fair value $ 33 $ 61 $ 309 $ 233 $ 342 $ 294 (a) At December 31, 2022, the fair value of our derivative assets was recorded in other current assets ($70 million) and other non-current assets ($3 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($33 million) and other non-current liabilities ($2 million). (b) At December 31, 2022, the fair value of our derivative assets was recorded in other current assets ($132 million) and other non-current assets ($104 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($59 million) and other non-current liabilities ($124 million). (c) At December 31, 2022, the fair value of our derivative assets was recorded in other current assets and the fair value of derivative liabilities was recorded in 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 April 1, 2023 March 26, 2022 Cash flow hedges: Foreign exchange contracts $ (4) $ (9) Cost of products sold Foreign exchange contracts (excluded component) (2) — Cost of products sold Cross-currency contracts (1) (31) Other expense/(income) Cross-currency contracts (excluded component) 6 8 Other expense/(income) Cross-currency contracts (6) (7) Interest expense Interest rate contracts (3) — Interest expense Net investment hedges: Foreign exchange contracts 1 (1) Other expense/(income) Cross-currency contracts (12) 35 Other expense/(income) Cross-currency contracts (excluded component) 8 11 Interest expense Total gains/(losses) recognized in statements of comprehensive income $ (13) $ 6 |
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 April 1, 2023 March 26, 2022 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 $ 4,376 $ 227 $ (35) $ 4,114 $ 242 $ (98) Gains/(losses) related to derivatives designated as hedging instruments: Cash flow hedges: Foreign exchange contracts $ 10 $ — $ — $ (6) $ — $ — Foreign exchange contracts (excluded component) (3) — — (1) — — Cross-currency contracts — (6) 14 — (7) (35) Cross-currency contracts (excluded component) — — 6 — — 8 Net investment hedges: Foreign exchange contracts (excluded component) — — — — 1 — Cross-currency contracts (excluded component) — 8 — — 9 — Gains/(losses) related to derivatives not designated as hedging instruments: Commodity contracts (47) — — 139 — — Foreign exchange contracts — — (12) — — 38 Total gains/(losses) recognized in statements of income $ (40) $ 2 $ 8 $ 132 $ 3 $ 11 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income/(Losses) (Tables) - AOCI Attributable to Parent | 3 Months Ended |
Apr. 01, 2023 | |
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 31, 2022 $ (2,845) $ (30) $ 65 $ (2,810) Foreign currency translation adjustments 115 — — 115 Net deferred gains/(losses) on net investment hedges (24) — — (24) Amounts excluded from the effectiveness assessment of net investment hedges 6 — — 6 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (6) — — (6) Net deferred gains/(losses) on cash flow hedges — — (15) (15) Amounts excluded from the effectiveness assessment of cash flow hedges — — 4 4 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) — — (16) (16) Net postemployment benefit losses/(gains) reclassified to net income/(loss) — (2) — (2) Total other comprehensive income/(loss) 91 (2) (27) 62 Balance as of April 1, 2023 $ (2,754) $ (32) $ 38 $ (2,748) |
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 April 1, 2023 March 26, 2022 Before Tax Amount Tax Net of Tax Amount Before Tax Amount Tax Net of Tax Amount Foreign currency translation adjustments $ 115 $ — $ 115 $ (32) $ — $ (32) Net deferred gains/(losses) on net investment hedges (31) 7 (24) 66 (14) 52 Amounts excluded from the effectiveness assessment of net investment hedges 8 (2) 6 11 (2) 9 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (8) 2 (6) (10) 2 (8) Net deferred gains/(losses) on cash flow hedges (14) (1) (15) (47) 13 (34) Amounts excluded from the effectiveness assessment of cash flow hedges 4 — 4 8 (1) 7 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) (21) 5 (16) 41 (19) 22 Net postemployment benefit losses/(gains) reclassified to net income/(loss) (3) 1 (2) (8) 4 (4) |
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 April 1, 2023 March 26, 2022 Losses/(gains) on net investment hedges: Foreign exchange contracts (a) $ — $ (1) Interest expense Cross-currency contracts (a) (8) (9) Interest expense Losses/(gains) on cash flow hedges: Foreign exchange contracts (b) (7) 7 Cost of products sold Cross-currency contracts (b) (20) 27 Other expense/(income) Cross-currency contracts (b) 6 7 Interest expense Losses/(gains) on hedges before income taxes (29) 31 Losses/(gains) on hedges, income taxes 7 (17) Losses/(gains) on hedges $ (22) $ 14 Losses/(gains) on postemployment benefits: Amortization of unrecognized losses/(gains) (c) $ — $ (4) Amortization of prior service costs/(credits) (c) (3) (4) Losses/(gains) on postemployment benefits before income taxes (3) (8) Losses/(gains) on postemployment benefits, income taxes 1 4 Losses/(gains) on postemployment benefits $ (2) $ (4) (a) Represents recognition of the excluded component in net income/(loss). (b) Includes amortization of the excluded component and the effective portion of the related hedges. (c) These components are included in the computation of net periodic postemployment benefit costs. See Note 10, Postemployment Benefits , for additional information. In this note we have excluded activity and balances related to noncontrolling interest due to their insignificance. This activity was primarily related to foreign currency translation adjustments. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
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 April 1, 2023 March 26, 2022 (in millions, except per share data) Basic Earnings Per Common Share: Net income/(loss) attributable to common shareholders $ 836 $ 776 Weighted average shares of common stock outstanding 1,226 1,225 Net earnings/(loss) $ 0.68 $ 0.63 Diluted Earnings Per Common Share: Net income/(loss) attributable to common shareholders $ 836 $ 776 Weighted average shares of common stock outstanding 1,226 1,225 Effect of dilutive equity awards 8 9 Weighted average shares of common stock outstanding, including dilutive effect 1,234 1,234 Net earnings/(loss) $ 0.68 $ 0.63 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Segment Reporting [Abstract] | |
Net Sales by Segment | Net sales by segment were (in millions): For the Three Months Ended April 1, 2023 March 26, 2022 Net sales: North America $ 4,885 $ 4,601 International 1,604 1,444 Total net sales $ 6,489 $ 6,045 |
Segment Adjusted EBITDA | Segment Adjusted EBITDA was (in millions): For the Three Months Ended April 1, 2023 March 26, 2022 Segment Adjusted EBITDA: North America $ 1,333 $ 1,173 International 255 242 General corporate expenses (108) (73) Depreciation and amortization (excluding restructuring activities) (217) (217) Divestiture-related license income 13 14 Restructuring activities 10 (19) Deal costs — (8) Unrealized gains/(losses) on commodity hedges (11) 92 Impairment losses — (55) Certain non-ordinary course legal and regulatory matters (1) — Equity award compensation expense (31) (34) Operating income/(loss) 1,243 1,115 Interest expense 227 242 Other expense/(income) (35) (98) Income/(loss) before income taxes $ 1,051 $ 971 |
Net Sales by Platform | Net sales by platform were (in millions): For the Three Months Ended April 1, 2023 March 26, 2022 Taste Elevation $ 2,142 $ 1,830 Fast Fresh Meals 1,373 1,358 Easy Meals Made Better 1,341 1,238 Real Food Snacking 295 315 Flavorful Hydration 490 455 Easy Indulgent Desserts 224 217 Other 624 632 Total net sales $ 6,489 $ 6,045 |
Net Sales by Product Category | Net sales by product category were (in millions): For the Three Months Ended April 1, 2023 March 26, 2022 Condiments and sauces $ 2,169 $ 1,827 Cheese and dairy 917 885 Ambient foods 749 722 Frozen and chilled foods 719 674 Meats and seafood 595 628 Refreshment beverages 489 456 Coffee 220 214 Infant and nutrition 93 104 Desserts, toppings, and baking 259 246 Other 279 289 Total net sales $ 6,489 $ 6,045 |
Other Financial Data (Tables)
Other Financial Data (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expense/(Income) | Other expense/(income) consists of the following (in millions): For the Three Months Ended April 1, 2023 March 26, 2022 Amortization of postemployment benefit plans prior service costs/(credits) $ (3) $ (4) Net pension and postretirement non-service cost/(benefit) (a) (22) (46) Loss/(gain) on sale of business 1 1 Interest income (6) (5) Foreign exchange losses/(gains) 6 (32) Derivative losses/(gains) (8) (11) Other miscellaneous expense/(income) (3) (1) Other expense/(income) $ (35) $ (98) |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | 3 Months Ended | |||
Apr. 01, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Mar. 26, 2022 USD ($) | Dec. 25, 2021 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Restricted cash included in other non-current assets | $ 1 | $ 1 | ||
Cash, cash equivalents, and restricted cash | 828 | $ 1,041 | $ 2,980 | $ 3,446 |
Restricted Cash and Cash Equivalents, Current | $ 1 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Hemmer Additional Information (Details) $ in Millions, R$ in Billions | Mar. 31, 2022 USD ($) | Mar. 31, 2022 BRL (R$) | Apr. 01, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Business Acquisition [Line Items] | ||||
Goodwill on acquisition | $ 30,888 | $ 30,833 | ||
Hemmer Acquisition | ||||
Business Acquisition [Line Items] | ||||
Total consideration paid | $ 279 | R$ 1.3 | ||
Percent acquired | 94% | 100% | ||
Goodwill on acquisition | $ 219 | $ 215 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Hemmer Purchase Price Allocation to Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 01, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | |
Business Acquisition [Line Items] | |||
Goodwill on acquisition | $ 30,888 | $ 30,833 | |
Hemmer Acquisition | |||
Business Acquisition [Line Items] | |||
Cash | 1 | $ 1 | |
Cash | 0 | ||
Trade receivables | 13 | 13 | |
Trade receivables | 0 | ||
Inventories | 17 | 17 | |
Inventories | 0 | ||
Other current assets | 2 | 2 | |
Other current assets | 0 | ||
Property, plant and equipment, net | 14 | 14 | |
Property, plant and equipment, net | 0 | ||
Identifiable intangible assets | 122 | 122 | |
Identifiable intangible assets | 0 | ||
Other non-current assets | 17 | 13 | |
Other non-current assets | 4 | ||
Short-term debt | (9) | (9) | |
Short-term debt | 0 | ||
Trade payables | (11) | (11) | |
Trade payables | 0 | ||
Other current liabilities | (31) | (31) | |
Other current liabilities | 0 | ||
Long-term debt | (11) | (11) | |
Long-term debt | 0 | ||
Other non-current liabilities | (44) | (44) | |
Other non-current liabilities | 0 | ||
Net assets acquired | 80 | 76 | |
Net assets acquired | 4 | ||
Noncontrolling interest | (16) | (16) | |
Noncontrolling interest | 0 | ||
Goodwill on acquisition | 215 | 219 | |
Goodwill on acquisition | (4) | ||
Total consideration | 279 | $ 279 | |
Total consideration | $ 0 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Hemmer Purchase Price Allocation to Identifiable Intangible Assets Acquired (Details) - Hemmer Acquisition - USD ($) $ in Millions | Mar. 31, 2022 | Apr. 01, 2023 |
Business Acquisition [Line Items] | ||
Fair Value (in millions of dollars) | $ 122 | $ 122 |
Definite-lived trademarks | ||
Business Acquisition [Line Items] | ||
Fair Value (in millions of dollars) | $ 101 | |
Weighted Average Life (in years) | 13 years | |
Customer-related assets | ||
Business Acquisition [Line Items] | ||
Fair Value (in millions of dollars) | $ 21 | |
Weighted Average Life (in years) | 15 years |
Acquisitions and Divestitures_5
Acquisitions and Divestitures - Just Spices Additional Information (Details) € in Millions, $ in Millions | Jan. 18, 2022 USD ($) | Jan. 18, 2022 EUR (€) | Apr. 01, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Business Acquisition [Line Items] | ||||
Goodwill on acquisition | $ 30,888 | $ 30,833 | ||
Just Spices Acquisition | ||||
Business Acquisition [Line Items] | ||||
Percent acquired | 85% | |||
Total consideration paid | $ 243 | € 214 | ||
Goodwill on acquisition | $ 167 | $ 156 |
Acquisition and Divestitures -
Acquisition and Divestitures - Just Spices Purchase Price Allocation to Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 | Jan. 18, 2022 |
Business Acquisition [Line Items] | |||
Goodwill on acquisition | $ 30,888 | $ 30,833 | |
Just Spices Acquisition | |||
Business Acquisition [Line Items] | |||
Cash | 2 | ||
Trade receivables | 4 | ||
Inventories | 7 | ||
Other current assets | 9 | ||
Property, plant and equipment, net | 1 | ||
Identifiable intangible assets | 172 | $ 172 | |
Other non-current assets | 7 | ||
Trade payables | (10) | ||
Other current liabilities | (12) | ||
Other non-current liabilities | (54) | ||
Net assets acquired | 126 | ||
Redeemable noncontrolling interest | (39) | ||
Goodwill on acquisition | 156 | $ 167 | |
Total consideration | $ 243 |
Acquisitions and Divestitures_6
Acquisitions and Divestitures - Just Spices Purchase Price Allocation to Identifiable Intangible Assets Acquired (Details) - Just Spices Acquisition - USD ($) $ in Millions | Jan. 18, 2022 | Dec. 31, 2022 |
Business Acquisition [Line Items] | ||
Fair Value (in millions of dollars) | $ 172 | $ 172 |
Definite-lived trademarks | ||
Business Acquisition [Line Items] | ||
Fair Value (in millions of dollars) | $ 72 | |
Weighted Average Life (in years) | 10 years | |
Customer-related assets | ||
Business Acquisition [Line Items] | ||
Fair Value (in millions of dollars) | $ 100 | |
Weighted Average Life (in years) | 15 years |
Restructuring Activities - Addi
Restructuring Activities - Additional Information (Details) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 USD ($) employee | Mar. 26, 2022 USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | $ (8) | $ 19 |
Asset-Related Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | $ 2 | 4 |
Restructuring Activities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, number of positions eliminated | employee | 335 | |
Restructuring and related cost, expected number of positions eliminated | employee | 100 | |
Restructuring and related cost, incurred cost (credit) | $ (8) | $ 19 |
Restructuring Activities | Asset-Related Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | 2 | |
Restructuring Activities | Other Implementation Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | $ (10) |
Restructuring Activities - Rest
Restructuring Activities - Restructuring Reserve Roll-forward (Details) - Restructuring Activities $ in Millions | 3 Months Ended |
Apr. 01, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 39 |
Cash payments | (11) |
Restructuring Reserve, Settled without Cash | (3) |
Ending balance | 25 |
Severance and Employee Benefit Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 28 |
Cash payments | (10) |
Restructuring Reserve, Settled without Cash | (2) |
Ending balance | 16 |
Other Exit Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 11 |
Cash payments | (1) |
Restructuring Reserve, Settled without Cash | (1) |
Ending balance | $ 9 |
Restructuring Activities - Re_2
Restructuring Activities - Restructuring Costs by Type and Income Statement Location (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of products sold | Cost of products sold |
Restructuring and related cost, incurred cost (credit) | $ (8) | $ 19 |
Severance and Employee Benefit Costs | Cost of products sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | 2 | (3) |
Severance and Employee Benefit Costs | SG&A | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | (4) | 13 |
Severance and Employee Benefit Costs | Other expense/(income) | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | 2 | 0 |
Asset-Related Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | 2 | 4 |
Other Costs | Cost of products sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | 2 | 3 |
Other Costs | SG&A | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | $ (12) | $ 2 |
Restructuring Activities - Re_3
Restructuring Activities - Restructuring Costs Excluded from Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Segment Reporting Information [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | $ (8) | $ 19 |
General corporate expenses | ||
Segment Reporting Information [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | (13) | 1 |
North America | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | 6 | 20 |
International | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Restructuring and related cost, incurred cost (credit) | $ (1) | $ (2) |
Inventories Components of Inven
Inventories Components of Inventories (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Packaging and ingredients | $ 965 | $ 1,032 |
Spare parts | 213 | 208 |
Work in process | 330 | 334 |
Finished products | 2,508 | 2,077 |
Inventories | $ 4,016 | $ 3,651 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Changes in the Carrying Amount of Goodwill by Segment (Details) $ in Millions | 3 Months Ended |
Apr. 01, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 30,833 |
Translation adjustments and other | 55 |
Ending balance | 30,888 |
North America | |
Goodwill [Roll Forward] | |
Beginning balance | 27,685 |
Translation adjustments and other | 3 |
Ending balance | 27,688 |
International | |
Goodwill [Roll Forward] | |
Beginning balance | 3,148 |
Translation adjustments and other | 52 |
Ending balance | $ 3,200 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Goodwill Additional Information (Details) $ in Millions | 3 Months Ended | ||
Apr. 01, 2023 USD ($) goodwillReportingUnit | Dec. 31, 2022 USD ($) | Jun. 26, 2022 USD ($) | |
Goodwill [Line Items] | |||
Number of reporting units | goodwillReportingUnit | 11 | ||
Goodwill on acquisition | $ 30,888 | $ 30,833 | |
Goodwill, impaired, accumulated impairment loss | $ (11,300) | ||
Reporting unit, goodwill balance held | |||
Goodwill [Line Items] | |||
Number of reporting units | goodwillReportingUnit | 7 | ||
Reporting unit, goodwill balance held | 20% or less | |||
Goodwill [Line Items] | |||
Goodwill on acquisition | $ 16,400 | ||
Reporting unit, goodwill balance held | 20 to 50% | |||
Goodwill [Line Items] | |||
Goodwill on acquisition | $ 14,500 | ||
Three Reporting Units | 20% or less | |||
Goodwill [Line Items] | |||
Percentage of fair value in excess of carrying amount | 20% | ||
Four Reporting Units | 20 to 50% | Minimum | |||
Goodwill [Line Items] | |||
Percentage of fair value in excess of carrying amount | 20% | ||
Four Reporting Units | 20 to 50% | Maximum | |||
Goodwill [Line Items] | |||
Percentage of fair value in excess of carrying amount | 50% | ||
Reporting Units With 20% Or Less Excess Fair Value Over Carrying Amount | |||
Goodwill [Line Items] | |||
Percentage of fair value in excess of carrying amount | 20% | ||
Reporting Units With More Than 20% Excess Fair Value Over Carrying Amount | |||
Goodwill [Line Items] | |||
Percentage of fair value in excess of carrying amount | 20% |
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 |
Apr. 01, 2023 USD ($) | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Beginning balance | $ 38,552 |
Translation adjustments and other | 68 |
Ending balance | $ 38,620 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Indefinite-Lived Intangible Assets Additional Information (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 | Jun. 26, 2022 |
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 38,620 | $ 38,552 | |
Brand, percentage of fair value in excess of carrying value | 20% | ||
Impaired Brands | 20% or less | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 16,600 | ||
Percentage of fair value in excess of carrying amount | 20% | ||
Impaired Brands | 20 to 50% | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 2,500 | ||
Impaired Brands | In Excess of 50% | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 19,400 | ||
Percentage of fair value in excess of carrying amount | 50% | ||
Impaired Brands | Minimum | 20 to 50% | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Percentage of fair value in excess of carrying amount | 20% | ||
Impaired Brands | Maximum | 20 to 50% | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Percentage of fair value in excess of carrying amount | 50% |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets - Summary of Definite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross | $ 5,937 | $ 5,926 |
Accumulated Amortization | (1,892) | (1,829) |
Net | 4,045 | 4,097 |
Definite-lived trademarks | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross | 2,225 | 2,223 |
Accumulated Amortization | (672) | (649) |
Net | 1,553 | 1,574 |
Customer-related assets | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross | 3,698 | 3,690 |
Accumulated Amortization | (1,216) | (1,177) |
Net | 2,482 | 2,513 |
Other | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross | 14 | 13 |
Accumulated Amortization | (4) | (3) |
Net | $ 10 | $ 10 |
Goodwill and Intangible Asset_8
Goodwill and Intangible Assets - Definite Lived Intangible Assets Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 62 | $ 64 |
Amortization of definite-lived intangible assets, current year | 250 | |
Amortization of definite-lived intangible assets, year one | 250 | |
Amortization of definite-lived intangible assets, year two | 250 | |
Amortization of definite-lived intangible assets, year three | 250 | |
Amortization of definite-lived intangible assets, year four | 250 | |
Amortization of definite-lived intangible assets, year five | $ 250 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 20.30% | 19.60% |
Employees' Stock Incentive Pl_3
Employees' Stock Incentive Plans - Schedule of Stock Option Activity and Related Information (Details) | 3 Months Ended |
Apr. 01, 2023 $ / shares shares | |
Number of Stock Options | |
Beginning balance (in shares) | shares | 9,559,063 |
Granted (in shares) | shares | 794,301 |
Forfeited (in shares) | shares | (200,449) |
Exercised (in shares) | shares | (1,161,560) |
Ending balance (in shares) | shares | 8,991,355 |
Weighted Average Exercise Price (per share) | |
Options outstanding at period start, weighted average exercise price (in dollars per share) | $ / shares | $ 46.80 |
Options granted, weighted average exercise price (in dollars per share) | $ / shares | 38.40 |
Options forfeited, weighted average exercise price (in dollars per share) | $ / shares | 56.49 |
Options exercised, weighted average exercise price (in dollars per share) | $ / shares | 35.58 |
Options outstanding at period end, weighted average exercise price (in dollars per share) | $ / shares | $ 47.29 |
Employees' Stock Incentive Pl_4
Employees' Stock Incentive Plans - Schedule of RSU Activity and Related Information (Details) - RSUs | 3 Months Ended |
Apr. 01, 2023 $ / shares shares | |
Number of Units | |
Beginning balance (in shares) | shares | 9,330,718 |
Granted (in shares) | shares | 2,319,570 |
Forfeited (in shares) | shares | (78,684) |
Vested (in shares) | shares | (1,576,924) |
Ending balance (in shares) | shares | 9,994,680 |
Weighted Average Grant Date Fair Value (per share) | |
Outstanding at period start, weighted average grant date fair value (in dollars per share) | $ / shares | $ 34.36 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 38.42 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 36.27 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 35.32 |
Outstanding at period end, weighted average grant date fair value (in dollars per share) | $ / shares | $ 35.13 |
Employees' Stock Incentive Pl_5
Employees' Stock Incentive Plans - Schedule of PSU Activity and Related Information (Details) - PSUs | 3 Months Ended |
Apr. 01, 2023 $ / shares shares | |
Number of Units | |
Beginning balance (in shares) | shares | 4,018,654 |
Granted (in shares) | shares | 2,234,387 |
Forfeited (in shares) | shares | (47,673) |
Vested (in shares) | shares | (47,948) |
Ending balance (in shares) | shares | 6,157,420 |
Weighted Average Grant Date Fair Value (per share) | |
Outstanding at period start, weighted average grant date fair value (in dollars per share) | $ / shares | $ 32.15 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 33.33 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 34.35 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 22.25 |
Outstanding at period end, weighted average grant date fair value (in dollars per share) | $ / shares | $ 32.48 |
Employees' Stock Incentive Pl_6
Employees' Stock Incentive Plans - Additional Information (Details) $ in Millions | 3 Months Ended |
Apr. 01, 2023 USD ($) | |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Equity instruments other than options, vested in period, fair value | $ 61 |
Postemployment Benefits Pension
Postemployment Benefits Pension Plans - Net Cost/(Benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Amortization of postemployment benefit plans prior service costs/(credits) | $ (3) | $ (4) |
U.S. Plans | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 1 |
Interest cost | 36 | 24 |
Expected return on plan assets | (49) | (48) |
Amortization of unrecognized losses/(gains) | 0 | 0 |
Special/contractual termination benefits | 0 | 0 |
Net postretirement cost/(benefit) | (13) | (23) |
Non-U.S. Plans | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2 | 4 |
Interest cost | 15 | 10 |
Expected return on plan assets | (21) | (19) |
Amortization of unrecognized losses/(gains) | 4 | 0 |
Special/contractual termination benefits | 2 | 0 |
Net postretirement cost/(benefit) | $ 2 | $ (5) |
Postemployment Benefits - Addit
Postemployment Benefits - Additional Information (Details) | 3 Months Ended |
Apr. 01, 2023 USD ($) | |
Pension Plans | Non-U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | $ 3,000,000 |
Estimated future employer contributions | 7,000,000 |
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 | 3,000,000 |
Estimated future employer contributions | $ 9,000,000 |
Postemployment Benefits - Postr
Postemployment Benefits - Postretirement Benefit Plans Net Cost/(Benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Amortization of postemployment benefit plans prior service costs/(credits) | $ (3) | $ (4) |
Postretirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 1 |
Interest cost | 9 | 5 |
Expected return on plan assets | (14) | (14) |
Amortization of postemployment benefit plans prior service costs/(credits) | (3) | (4) |
Amortization of unrecognized losses/(gains) | (4) | (4) |
Net postretirement cost/(benefit) | $ (11) | $ (16) |
Financial Instruments - Schedul
Financial Instruments - Schedule of Notional Values of Outstanding Derivatives (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 |
Commodity contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 1,043 | $ 1,166 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 2,931 | 3,139 |
Cross-currency contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 6,336 | 6,336 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 400 | $ 0 |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Derivative Fair Values (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 |
Derivatives Fair Value [Line Items] | ||
Assets | $ 315 | $ 342 |
Liabilities | 306 | 294 |
Foreign exchange contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 30 | 40 |
Liabilities | 13 | 10 |
Foreign exchange contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 22 | 33 |
Liabilities | 23 | 25 |
Cross-currency contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 231 | 236 |
Liabilities | 182 | 183 |
Interest rate contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 0 | |
Liabilities | 3 | |
Commodity contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 32 | 33 |
Liabilities | 85 | 76 |
Level 1 | ||
Derivatives Fair Value [Line Items] | ||
Assets | 26 | 33 |
Liabilities | 81 | 61 |
Level 1 | Foreign exchange contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Level 1 | Foreign exchange contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Level 1 | Cross-currency contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Level 1 | Interest rate contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 0 | |
Liabilities | 0 | |
Level 1 | Commodity contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 26 | 33 |
Liabilities | 81 | 61 |
Level 2 | ||
Derivatives Fair Value [Line Items] | ||
Assets | 289 | 309 |
Liabilities | 225 | 233 |
Level 2 | Foreign exchange contracts | Other current assets | ||
Derivatives Fair Value [Line Items] | ||
Assets | 50 | 70 |
Level 2 | Foreign exchange contracts | Other non-current assets | ||
Derivatives Fair Value [Line Items] | ||
Assets | 2 | 3 |
Level 2 | Foreign exchange contracts | Other current liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liabilities | 34 | 33 |
Level 2 | Foreign exchange contracts | Other non-current liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liabilities | 2 | 2 |
Level 2 | Foreign exchange contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 30 | 40 |
Liabilities | 13 | 10 |
Level 2 | Foreign exchange contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 22 | 33 |
Liabilities | 23 | 25 |
Level 2 | Cross-currency contracts | Other current assets | ||
Derivatives Fair Value [Line Items] | ||
Assets | 125 | 132 |
Level 2 | Cross-currency contracts | Other non-current assets | ||
Derivatives Fair Value [Line Items] | ||
Assets | 106 | 104 |
Level 2 | Cross-currency contracts | Other current liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liabilities | 57 | 59 |
Level 2 | Cross-currency contracts | Other non-current liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liabilities | 125 | 124 |
Level 2 | Cross-currency contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 231 | 236 |
Liabilities | 182 | 183 |
Level 2 | Interest rate contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 0 | |
Liabilities | 3 | |
Level 2 | Commodity contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 6 | 0 |
Liabilities | $ 4 | $ 15 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) € in Millions, £ in Millions, $ in Millions, ¥ in Billions, $ in Billions | 3 Months Ended | ||||||
Apr. 01, 2023 USD ($) | Mar. 26, 2022 USD ($) | Apr. 01, 2023 EUR (€) | Apr. 01, 2023 GBP (£) | Apr. 01, 2023 CAD ($) | Apr. 01, 2023 JPY (¥) | Dec. 31, 2022 USD ($) | |
Derivative [Line Items] | |||||||
Derivative, collateral, obligation to return cash | $ 203 | $ 222 | |||||
Derivative, collateral, right to reclaim cash | 203 | 222 | |||||
Collateral posted related to commodity derivative margin requirements, asset | $ 72 | $ 43 | |||||
Cross-currency contracts | |||||||
Derivative [Line Items] | |||||||
Maximum length of time hedged in cash flow hedge | 6 years | ||||||
Foreign exchange contracts | |||||||
Derivative [Line Items] | |||||||
Maximum length of time hedged in cash flow hedge | 2 years | ||||||
Cash flow hedges gain (loss) to be reclassified within twelve months | $ 20 | ||||||
Interest rate contracts | |||||||
Derivative [Line Items] | |||||||
Maximum length of time hedged in cash flow hedge | 2 months | ||||||
Designated as hedging instrument | Debt | Net Investment Hedging | |||||||
Derivative [Line Items] | |||||||
Non-derivative instruments, loss (gain) recognized in other comprehensive income (loss), net | $ 20 | $ (32) | |||||
Designated as hedging instrument | Debt | Euro Member Countries, Euro | Net Investment Hedging | |||||||
Derivative [Line Items] | |||||||
Derivative, amount of hedged item | € | € 650 | ||||||
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 | Euro Member Countries, Euro | Net Investment Hedging | |||||||
Derivative [Line Items] | |||||||
Derivative asset, notional amount | 2,100 | € 1,900 | |||||
Designated as hedging instrument | Cross-currency contracts | Canada, Dollars | Net Investment Hedging | |||||||
Derivative [Line Items] | |||||||
Derivative liability, notional amount | 1,000 | $ 1.4 | |||||
Designated as hedging instrument | Cross-currency contracts | Japan, Yen | Net Investment Hedging | |||||||
Derivative [Line Items] | |||||||
Derivative asset, notional amount | 67 | ¥ 9.6 | |||||
Designated as hedging instrument | Cross-currency contracts | China, Yuan Renminbi | Net Investment Hedging | |||||||
Derivative [Line Items] | |||||||
Derivative liability, notional amount | 68 | ¥ 0.5 | |||||
Designated as hedging instrument | Other contract | Euro Member Countries, Euro | Net Investment Hedging | |||||||
Derivative [Line Items] | |||||||
Derivative, amount of hedged item | $ 108 | ||||||
Not designated as hedging instrument | Foreign exchange contracts | Hemmer Acquisition | |||||||
Derivative [Line Items] | |||||||
Net gains/(losses) on derivatives, reclassified to net income | $ 38 |
Financial Instruments - Derivat
Financial Instruments - Derivative Impact on Statements of Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Derivative [Line Items] | ||
Other comprehensive income (loss), derivatives, gain (loss), before reclassification and tax | $ (13) | $ 6 |
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 | (4) | (9) |
Amounts excluded from the effectiveness assessment of cash flow hedges, before tax | (2) | 0 |
Cash Flow Hedging | Interest expense | Cross-currency contracts | ||
Derivative [Line Items] | ||
Gains/(losses) recognized in other comprehensive income (loss) on cash flow hedges, before tax | (6) | (7) |
Cash Flow Hedging | Interest expense | Interest rate contracts | ||
Derivative [Line Items] | ||
Gains/(losses) recognized in other comprehensive income (loss) on cash flow hedges, before tax | (3) | 0 |
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 | (1) | (31) |
Amounts excluded from the effectiveness assessment of cash flow hedges, before tax | 6 | 8 |
Net Investment Hedging | Interest expense | Cross-currency contracts | ||
Derivative [Line Items] | ||
Amounts excluded from the effectiveness assessment of net investment hedges, before tax | 8 | 11 |
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 | 1 | (1) |
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 | $ (12) | $ 35 |
Financial Instruments - Deriv_2
Financial Instruments - Derivative Impact on Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Total amounts presented in the condensed consolidated statements of income in which the following effects were recorded | ||
Cost of products sold | $ 4,376 | $ 4,114 |
Selling, general and administrative expenses | 870 | 816 |
Interest expense | 227 | 242 |
Other expense/(income) | (35) | (98) |
Cost of products sold | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | (40) | 132 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | (40) | 132 |
Interest expense | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 2 | 3 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 2 | 3 |
Other expense/(income) | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 8 | 11 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 8 | 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 | Commodity contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | (47) | 139 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | (47) | 139 |
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 | 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 | (12) | 38 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | (12) | 38 |
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 | 10 | (6) |
Net gain/(loss) on derivatives, excluded component, reclassified to net income | (3) | (1) |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 10 | (6) |
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 | Cross-currency contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | (6) | (7) |
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 | (6) | (7) |
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 | 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) | Cross-currency contracts | ||
Derivatives designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 14 | (35) |
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 6 | 8 |
Derivatives not designated as hedging instruments: | ||
Net gains/(losses) on derivatives, reclassified to net income | 14 | (35) |
Net Investment Hedging | Designated as hedging instrument | Cost of products sold | Foreign exchange 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 | 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 gain/(loss) on derivatives, excluded component, reclassified to net income | 0 | 1 |
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 | 9 |
Net Investment Hedging | Designated as hedging instrument | Other expense/(income) | Foreign exchange 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 | Other expense/(income) | Cross-currency contracts | ||
Derivatives designated as hedging instruments: | ||
Net gain/(loss) on derivatives, excluded component, reclassified to net income | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income/(Losses) - Components of and Changes in Accumulated Other Comprehensive Income/(Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 48,678 | |
Total other comprehensive income/(loss) | 62 | |
Ending balance | 49,153 | |
Foreign currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (2,845) | |
Other comprehensive income/(loss) before reclassifications | 115 | $ (32) |
Total other comprehensive income/(loss) | 91 | |
Ending balance | (2,754) | |
Net investment hedge adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Other comprehensive income/(loss) before reclassifications | (24) | 52 |
Amounts excluded from effectiveness assessment | 6 | 9 |
Reclassifications from AOCI | (6) | (8) |
Net cash flow hedge adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 65 | |
Other comprehensive income/(loss) before reclassifications | (15) | (34) |
Amounts excluded from effectiveness assessment | 4 | 7 |
Reclassifications from AOCI | (16) | 22 |
Total other comprehensive income/(loss) | (27) | |
Ending balance | 38 | |
Net postemployment benefit plan adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (30) | |
Reclassifications from AOCI | (2) | $ (4) |
Total other comprehensive income/(loss) | (2) | |
Ending balance | (32) | |
AOCI Attributable to Parent | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (2,810) | |
Ending balance | $ (2,748) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income/(Losses) - 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 | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Foreign currency translation adjustments | ||
OCI Before Reclassifications | ||
Before Tax Amount | $ 115 | $ (32) |
Tax | 0 | 0 |
Net of Tax Amount | 115 | (32) |
Net investment hedge adjustments | ||
OCI Before Reclassifications | ||
Before Tax Amount | (31) | 66 |
Tax | 7 | (14) |
Net of Tax Amount | (24) | 52 |
Amounts Excluded from Effectiveness Assessment | ||
Before Tax Amount | 8 | 11 |
Tax | (2) | (2) |
Net of Tax Amount | 6 | 9 |
Reclassifications | ||
Before Tax Amount | (8) | (10) |
Tax | 2 | 2 |
Net of Tax Amount | (6) | (8) |
Net cash flow hedge adjustments | ||
OCI Before Reclassifications | ||
Before Tax Amount | (14) | (47) |
Tax | (1) | 13 |
Net of Tax Amount | (15) | (34) |
Amounts Excluded from Effectiveness Assessment | ||
Before Tax Amount | 4 | 8 |
Tax | 0 | (1) |
Net of Tax Amount | 4 | 7 |
Reclassifications | ||
Before Tax Amount | (21) | 41 |
Tax | 5 | (19) |
Net of Tax Amount | (16) | 22 |
Net postemployment benefit plan adjustments | ||
Reclassifications | ||
Before Tax Amount | (3) | (8) |
Tax | 1 | 4 |
Net of Tax Amount | $ (2) | $ (4) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income/(Losses) - Amounts Reclassified from Accumulated Other Comprehensive Income/(Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | ||
Interest expense | $ 227 | $ 242 |
Cost of products sold | 4,376 | 4,114 |
Other expense/(income) | (35) | (98) |
Income/(loss) before income taxes | 1,051 | 971 |
Provision for/(benefit from) income taxes | 214 | 190 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (837) | (781) |
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] | ||
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) | (9) |
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] | ||
Cost of products sold | (7) | 7 |
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] | ||
Interest expense | 6 | 7 |
Other expense/(income) | (20) | 27 |
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 | 29 | (31) |
Provision for/(benefit from) income taxes | 7 | (17) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (22) | 14 |
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 | 3 | 8 |
Provision for/(benefit from) income taxes | 1 | 4 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (2) | (4) |
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) | 0 | (4) |
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) | $ (3) | $ (4) |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 |
Assets that Continue to be Recognized, Securitized or Asset-Backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||
Other liabilities, structured payables, current | $ 71 | $ 87 |
Cash proceeds received for assets derecognized, amount | 100 | |
Transfer of Financial Assets Accounted for as Sales, Cash Proceeds Received for Assets Derecognized, Amount Outstanding | 100 | |
Transfer of Financial Assets Accounted for as Sales, Unremitted Cash Collections | 68 | |
Accounts Payable and Accrued Liabilities | ||
Assets that Continue to be Recognized, Securitized or Asset-Backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||
Supplier Finance Programs, Amounts Outstanding | $ 866 | $ 1,100 |
Commitments and Contingencies D
Commitments and Contingencies Disclosure (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2022 USD ($) | |
Securities Class Action Lawsuit | |
Loss Contingencies [Line Items] | |
Payments for Legal Settlements | $ 210 |
Commitments, Contingencies an_2
Commitments, Contingencies and Debt - Debt Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 26, 2022 | Apr. 01, 2023 | Mar. 26, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | $ 1 | $ 9 | ||
Fair value of total debt | 19,400 | $ 18,700 | ||
Carrying value of total debt | $ 20,100 | $ 20,100 | ||
Senior Notes | Senior notes due in March 2022 | ||||
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | $ 6 |
Earnings Per Share - Schedule o
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 | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Basic EPS | ||
Net income/(loss) attributable to common shareholders | $ 836 | $ 776 |
Weighted average shares of common stock outstanding (in shares) | 1,226 | 1,225 |
Basic earnings/(loss) per common share (in dollars per share) | $ 0.68 | $ 0.63 |
Diluted EPS | ||
Net income/(loss) attributable to common shareholders | $ 836 | $ 776 |
Weighted average shares of common stock outstanding (in shares) | 1,226 | 1,225 |
Effect of dilutive equity awards (in shares) | 8 | 9 |
Weighted average shares of common stock outstanding, including dilutive effect (in shares) | 1,234 | 1,234 |
Diluted earnings/(loss) per common share (in dollars per share) | $ 0.68 | $ 0.63 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive shares | 7 | 8 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 3 Months Ended |
Apr. 01, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting - Net Sales b
Segment Reporting - Net Sales by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | $ 6,489 | $ 6,045 |
North America | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | 4,885 | 4,601 |
International | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net sales | $ 1,604 | $ 1,444 |
Segment Reporting - Segment Adj
Segment Reporting - Segment Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Segment Reporting Information [Line Items] | ||
Depreciation and amortization (excluding restructuring activities) | $ (217) | $ (217) |
Divestiture-related license income | 13 | 14 |
Restructuring activities | 10 | (19) |
Deal costs | 0 | (8) |
Unrealized gains/(losses) on commodity hedges | (11) | 92 |
Impairment losses | 0 | (55) |
Certain non-ordinary course legal and regulatory matters | (1) | 0 |
Equity award compensation expense | (31) | (34) |
Operating income/(loss) | 1,243 | 1,115 |
Interest expense | 227 | 242 |
Other expense/(income) | (35) | (98) |
Income/(loss) before income taxes | 1,051 | 971 |
General corporate expenses | ||
Segment Reporting Information [Line Items] | ||
Segment Adjusted EBITDA | (108) | (73) |
North America | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment Adjusted EBITDA | 1,333 | 1,173 |
International | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment Adjusted EBITDA | $ 255 | $ 242 |
Segment Reporting - Net Sales_2
Segment Reporting - Net Sales by Platform (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Revenue from External Customer [Line Items] | ||
Net sales | $ 6,489 | $ 6,045 |
Taste Elevation | ||
Revenue from External Customer [Line Items] | ||
Net sales | 2,142 | 1,830 |
Fast Fresh Meals | ||
Revenue from External Customer [Line Items] | ||
Net sales | 1,373 | 1,358 |
Easy Meals Made Better | ||
Revenue from External Customer [Line Items] | ||
Net sales | 1,341 | 1,238 |
Real Food Snacking | ||
Revenue from External Customer [Line Items] | ||
Net sales | 295 | 315 |
Flavorful Hydration | ||
Revenue from External Customer [Line Items] | ||
Net sales | 490 | 455 |
Easy Indulgent Desserts | ||
Revenue from External Customer [Line Items] | ||
Net sales | 224 | 217 |
Other | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 624 | $ 632 |
Segment Reporting - Net Sales_3
Segment Reporting - Net Sales by Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Revenue from External Customer [Line Items] | ||
Net sales | $ 6,489 | $ 6,045 |
Condiments and sauces | ||
Revenue from External Customer [Line Items] | ||
Net sales | 2,169 | 1,827 |
Cheese and dairy | ||
Revenue from External Customer [Line Items] | ||
Net sales | 917 | 885 |
Ambient foods | ||
Revenue from External Customer [Line Items] | ||
Net sales | 749 | 722 |
Frozen and chilled foods | ||
Revenue from External Customer [Line Items] | ||
Net sales | 719 | 674 |
Meats and seafood | ||
Revenue from External Customer [Line Items] | ||
Net sales | 595 | 628 |
Refreshment beverages | ||
Revenue from External Customer [Line Items] | ||
Net sales | 489 | 456 |
Coffee | ||
Revenue from External Customer [Line Items] | ||
Net sales | 220 | 214 |
Infant and nutrition | ||
Revenue from External Customer [Line Items] | ||
Net sales | 93 | 104 |
Desserts, toppings, and baking | ||
Revenue from External Customer [Line Items] | ||
Net sales | 259 | 246 |
Other | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 279 | $ 289 |
Other Financial Data - Schedule
Other Financial Data - Schedule of Other Expense/(Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Other Income and Expenses [Abstract] | ||
Amortization of postemployment benefit plans prior service costs/(credits) | $ (3) | $ (4) |
Net pension and postretirement non-service cost/(benefit)(a) | (22) | (46) |
Loss/(gain) on sale of business | 1 | 1 |
Interest income | 6 | 5 |
Foreign exchange losses/(gains) | 6 | (32) |
Derivative losses/(gains) | (8) | (11) |
Other miscellaneous expense/(income) | (3) | (1) |
Other expense/(income) | $ 35 | $ 98 |
Other Financial Data - Addition
Other Financial Data - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Other Income and Expenses [Abstract] | ||
Other expense/(income) | $ 35 | $ 98 |
Derivative losses/(gains) | (8) | (11) |
Increase/(Decrease) in net pension and postretirement non-service benefits | 24 | |
Foreign exchange losses/(gains) | $ 6 | $ (32) |