Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 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 | |
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 | 1,226,538,694 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001637459 | |
Current Fiscal Year End Date | --12-30 | |
Common Stock | ||
Cover [Abstract] | ||
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | KHC | |
Security Exchange Name | NASDAQ | |
Document Information [Line Items] | ||
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | KHC | |
Security Exchange Name | NASDAQ | |
Floating Rate Senior Notes due 2025 | ||
Cover [Abstract] | ||
Title of 12(b) Security | Floating Rate Senior Notes due 2025 | |
Trading Symbol | KHC25 | |
Security Exchange Name | NASDAQ | |
Document Information [Line Items] | ||
Title of 12(b) Security | Floating Rate Senior Notes due 2025 | |
Trading Symbol | KHC25 | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 6,570 | $ 6,505 | $ 19,780 | $ 19,104 |
Cost of products sold | 4,335 | 4,662 | 13,171 | 13,346 |
Gross profit | 2,235 | 1,843 | 6,609 | 5,758 |
Selling, general and administrative expenses, excluding impairment losses | 920 | 798 | 2,675 | 2,437 |
Goodwill impairment losses | 510 | 220 | 510 | 444 |
Intangible asset impairment losses | 152 | 74 | 152 | 469 |
Selling, general and administrative expenses | 1,582 | 1,092 | 3,337 | 3,350 |
Operating income/(loss) | 653 | 751 | 3,272 | 2,408 |
Interest expense | 228 | 228 | 683 | 704 |
Other expense/(income) | (35) | (22) | (94) | (211) |
Income/(loss) before income taxes | 460 | 545 | 2,683 | 1,915 |
Provision for/(benefit from) income taxes | 206 | 110 | 594 | 434 |
Net income/(loss) | 254 | 435 | 2,089 | 1,481 |
Net income/(loss) attributable to noncontrolling interest | (8) | 3 | (9) | 8 |
Net income/(loss) attributable to common shareholders | $ 262 | $ 432 | $ 2,098 | $ 1,473 |
Per share data applicable to common shareholders: | ||||
Basic earnings/(loss) per common share (in dollars per share) | $ 0.21 | $ 0.35 | $ 1.71 | $ 1.20 |
Diluted earnings/(loss) per common share (in dollars per share) | $ 0.21 | $ 0.35 | $ 1.70 | $ 1.19 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income/(loss) | $ 254 | $ 435 | $ 2,089 | $ 1,481 |
Other comprehensive income/(loss), net of tax: | ||||
Foreign currency translation adjustments | (355) | (816) | (61) | (1,500) |
Net deferred gains/(losses) on net investment hedges | 92 | 324 | 17 | 581 |
Amounts excluded from the effectiveness assessment of net investment hedges | 7 | 8 | 21 | 26 |
Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) | (8) | (10) | (21) | (23) |
Net deferred gains/(losses) on cash flow hedges | 14 | (29) | 5 | (101) |
Amounts excluded from the effectiveness assessment of cash flow hedges | 3 | 1 | 13 | 9 |
Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) | 13 | 48 | (18) | 97 |
Net actuarial gains/(losses) arising during the period | 0 | (117) | 0 | (260) |
Net postemployment benefit losses/(gains) reclassified to net income/(loss) | (1) | (4) | (8) | (15) |
Total other comprehensive income/(loss) | (235) | (595) | (52) | (1,186) |
Total comprehensive income/(loss) | 19 | (160) | 2,037 | 295 |
Comprehensive income/(loss) attributable to noncontrolling interest | (11) | 2 | (8) | 2 |
Comprehensive income/(loss) attributable to common shareholders | $ 30 | $ (162) | $ 2,045 | $ 293 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 1,052 | $ 1,040 |
Trade receivables (net of allowances of $43 at September 30, 2023 and $46 at December 31, 2022) | 2,103 | 2,120 |
Inventories | 3,779 | 3,651 |
Prepaid expenses | 245 | 240 |
Other current assets | 654 | 842 |
Assets held for sale | 5 | 4 |
Total current assets | 7,838 | 7,897 |
Property, plant and equipment, net | 6,813 | 6,740 |
Goodwill | 30,310 | 30,833 |
Intangible assets, net | 42,314 | 42,649 |
Other non-current assets | 2,381 | 2,394 |
TOTAL ASSETS | 89,656 | 90,513 |
LIABILITIES AND EQUITY | ||
Commercial paper and other short-term debt | 0 | 6 |
Current portion of long-term debt | 608 | 831 |
Trade payables | 4,463 | 4,848 |
Accrued marketing | 793 | 749 |
Interest payable | 268 | 264 |
Other current liabilities | 1,672 | 2,330 |
Total current liabilities | 7,804 | 9,028 |
Long-term debt | 19,270 | 19,233 |
Deferred income taxes | 10,132 | 10,152 |
Accrued postemployment costs | 143 | 144 |
Long-term deferred income | 1,436 | 1,477 |
Other non-current liabilities | 1,413 | 1,609 |
TOTAL LIABILITIES | 40,198 | 41,643 |
Commitments and Contingencies (Note 14) | ||
Redeemable noncontrolling interest | 24 | 40 |
Equity: | ||
Common stock, $0.01 par value (5,000 shares authorized; 1,249 shares issued and 1,227 shares outstanding at September 30, 2023; 1,243 shares issued and 1,225 shares outstanding at December 31, 2022) | 12 | 12 |
Additional paid-in capital | 52,004 | 51,834 |
Retained earnings/(deficit) | 1,104 | 489 |
Accumulated other comprehensive income/(losses) | (2,863) | (2,810) |
Treasury stock, at cost (23 shares at September 30, 2023 and 18 shares at December 31, 2022) | (981) | (847) |
Total shareholders' equity | 49,276 | 48,678 |
Noncontrolling interest | 158 | 152 |
TOTAL EQUITY | 49,434 | 48,830 |
TOTAL LIABILITIES AND EQUITY | $ 89,656 | $ 90,513 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss | $ 43 | $ 46 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | |
Common Stock, Shares Authorized | 5,000,000,000 | |
Common Stock, Shares, Issued | 1,249,000,000 | 1,243,000,000 |
Common Stock, Shares, Outstanding | 1,227,000,000 | 1,225,000,000 |
Treasury Stock, Common, Shares | 23,000,000 | 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, Common | 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, repurchase of common stock, and other | 50 | 67 | 1 | (18) | |||
Ending balance at Mar. 26, 2022 | 49,797 | 12 | 52,954 | (905) | (1,812) | (605) | 153 |
Total Shareholders' Equity [Roll forward] | |||||||
Net income/(loss) excluding redeemable noncontrolling interest | 267 | 265 | 2 | ||||
Other comprehensive income/(loss) excluding redeemable noncontrolling interest | (602) | (598) | (4) | ||||
Dividends declared-common stock | (494) | (494) | |||||
Exercise of stock options, issuance of other stock awards, repurchase of common stock, and other | (6) | 60 | 0 | (81) | 15 | ||
Ending balance at Jun. 25, 2022 | 48,962 | 12 | 52,520 | (640) | (2,410) | (686) | 166 |
Total Shareholders' Equity [Roll forward] | |||||||
Net income/(loss) excluding redeemable noncontrolling interest | 436 | 432 | 4 | ||||
Other comprehensive income/(loss) excluding redeemable noncontrolling interest | (595) | (594) | (1) | ||||
Dividends declared-common stock | (494) | (494) | |||||
Exercise of stock options, issuance of other stock awards, repurchase of common stock, and other | (3) | 51 | (43) | (11) | |||
Ending balance at Sep. 24, 2022 | 48,306 | 12 | 52,077 | (208) | (3,004) | (729) | 158 |
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, repurchase of common stock, and other | 74 | 76 | 0 | (5) | 3 | ||
Ending balance at Apr. 01, 2023 | 49,313 | 12 | 51,910 | 831 | (2,748) | (852) | 160 |
Total Shareholders' Equity [Roll forward] | |||||||
Net income/(loss) excluding redeemable noncontrolling interest | 1,000 | 1,000 | 0 | ||||
Other comprehensive income/(loss) excluding redeemable noncontrolling interest | 117 | 117 | 0 | ||||
Dividends declared-common stock | (495) | (495) | |||||
Exercise of stock options, issuance of other stock awards, repurchase of common stock, and other | 39 | 57 | (18) | ||||
Ending balance at Jul. 01, 2023 | 49,974 | 12 | 51,967 | 1,336 | (2,631) | (870) | 160 |
Total Shareholders' Equity [Roll forward] | |||||||
Net income/(loss) excluding redeemable noncontrolling interest | 260 | 262 | (2) | ||||
Other comprehensive income/(loss) excluding redeemable noncontrolling interest | (235) | (232) | (3) | ||||
Dividends declared-common stock | (494) | (494) | |||||
Exercise of stock options, issuance of other stock awards, repurchase of common stock, and other | (71) | 37 | (111) | 3 | |||
Ending balance at Sep. 30, 2023 | $ 49,434 | $ 12 | $ 52,004 | $ 1,104 | $ (2,863) | $ (981) | $ 158 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2023 | Jul. 01, 2023 | Apr. 01, 2023 | Sep. 24, 2022 | Jun. 25, 2022 | Mar. 26, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Common stock dividends declared (in dollars per share) | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.40 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 24, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income/(loss) | $ 2,089 | $ 1,481 |
Adjustments to reconcile net income/(loss) to operating cash flows: | ||
Depreciation and amortization | 710 | 685 |
Amortization of postemployment benefit plans prior service costs/(credits) | (10) | (11) |
Divestiture-related license income | (41) | (41) |
Equity award compensation expense | 110 | 107 |
Deferred income tax provision/(benefit) | (15) | (184) |
Postemployment benefit plan contributions | (18) | (14) |
Goodwill and intangible asset impairment losses | 662 | 913 |
Nonmonetary currency devaluation | 27 | 16 |
Loss/(gain) on sale of business | 2 | (1) |
Loss/(gain) on extinguishment of debt | 0 | (12) |
Other items, net | (44) | 6 |
Changes in current assets and liabilities: | ||
Trade receivables | (16) | (208) |
Inventories | (277) | (1,027) |
Accounts payable | (221) | 299 |
Other current assets | 139 | (136) |
Other current liabilities | (477) | (356) |
Net cash provided by/(used for) operating activities | 2,620 | 1,517 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (779) | (632) |
Payments to acquire business, net of cash acquired | 0 | (481) |
Proceeds from sale of business, net of cash disposed and working capital adjustments | 0 | (20) |
Other investing activities, net | 41 | 95 |
Net cash provided by/(used for) investing activities | (738) | (1,038) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments of long-term debt | (823) | (1,157) |
Proceeds from issuance of long-term debt | 657 | 0 |
Debt prepayment and extinguishment (benefit)/costs | 0 | (17) |
Proceeds from issuance of commercial paper | 0 | 228 |
Repayments of commercial paper | 0 | (228) |
Dividends paid | (1,474) | (1,470) |
Other financing activities, net | (176) | (167) |
Net cash provided by/(used for) financing activities | (1,816) | (2,811) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (53) | (116) |
Cash, cash equivalents, and restricted cash | ||
Net increase/(decrease) | 13 | (2,448) |
Balance at beginning of period | 1,041 | 3,446 |
Balance at end of period | $ 1,054 | $ 998 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 9 Months Ended |
Sep. 30, 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. Following certain organizational changes announced on November 1, 2023, we will be evaluating the potential impact on our reportable segments. We expect that any change to our reportable segments will be effective in early 2024. 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 September 30, 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 September 30, 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 $1,054 million at September 30, 2023 and $1,041 million at December 31, 2022. |
Significant Accounting Policies
Significant Accounting Policies (Notes) | 9 Months Ended |
Sep. 30, 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) | 9 Months Ended |
Sep. 30, 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) | 9 Months Ended |
Sep. 30, 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): Final Allocation Cash $ 1 Trade receivables 13 Inventories 17 Other current assets 2 Property, plant and equipment, net 14 Identifiable intangible assets 122 Other non-current assets 17 Short-term debt (9) Trade payables (11) Other current liabilities (31) Long-term debt (11) Other non-current liabilities (44) Net assets acquired 80 Noncontrolling interest (16) Goodwill on acquisition 215 Total consideration $ 279 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. In the third quarter of 2023, we completed the redemption of an additional 5% of the outstanding shares and own 90% of the controlling interest in Just Spices as of September 30, 2023. 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 and nine months ended September 30, 2023 and the three and nine months ended September 24, 2022 related to our acquisitions. We recognized these deal costs in selling, general and administrative expenses (“SG&A”). Divestitures Potential Dispositions: In the first half of 2023, we entered into agreements to sell two separate businesses within our International segment. For the nine months ended September 30, 2023, the two businesses collectively generated an insignificant amount of consolidated net sales and operating income/(loss) and approximately 1% of net sales and an insignificant amount of Segment Adjusted EBITDA for our International segment. As the expected timing for each of these transactions to close continues to be uncertain, the related assets and liabilities remain classified as held and used on the condensed consolidated balance sheet at September 30, 2023. We anticipate the collective pre-tax loss on sale of businesses to be approximately $100 million, of which approximately $60 million relates to the release of accumulated foreign currency translation losses. Deal Costs: We incurred insignificant deal costs for the three and nine months ended September 30, 2023 and the three and nine months ended September 24, 2022 related to our divestitures. We recognized these deal costs in SG&A. |
Restructuring Activities (Notes
Restructuring Activities (Notes) | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 2023, we eliminated approximately 460 positions related to these programs. As of September 30, 2023, we expect to eliminate approximately 300 additional positions during the remainder of 2023, primarily in our International segment. For the three months ended September 30, 2023, restructuring activities resulted in expenses of $45 million and included $2 million of severance and employee benefit costs, $41 million of asset-related costs, $1 million of other implementation costs, and $1 million of other exit costs. For the nine months ended September 30, 2023, restructuring activities resulted in expenses of $27 million and included $2 million of severance and employee benefit costs, $31 million of asset-related costs, a benefit of $7 million in other implementation costs, and $1 million of other exit costs. Restructuring activities resulted in expenses of $7 million for the three months and $37 million for the nine months ended September 24, 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 Charges/(credits) 2 1 3 Cash payments (19) (3) (22) Non-cash utilization (2) (1) (3) Balance at September 30, 2023 $ 9 $ 8 $ 17 We expect the majority of the liability for severance and employee benefit costs as of September 30, 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 For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Severance and employee benefit costs - Cost of products sold $ 2 $ — $ 7 $ (3) Severance and employee benefit costs - SG&A — — (7) 12 Severance and employee benefit costs - Other expense/(income) — — 2 — Asset-related costs - Cost of products sold 41 2 32 9 Asset-related costs - SG&A — — (1) — Other costs - Cost of products sold 1 3 5 9 Other costs - SG&A 1 3 (11) 11 Other costs - Other expense/(income) — (1) — (1) $ 45 $ 7 $ 27 $ 37 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 For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 North America $ 9 $ 4 $ (1) $ 30 International 36 3 41 4 General corporate expenses — — (13) 3 $ 45 $ 7 $ 27 $ 37 |
Inventories (Notes)
Inventories (Notes) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in millions): September 30, 2023 December 31, 2022 Packaging and ingredients $ 876 $ 1,032 Spare parts 221 208 Work in process 357 334 Finished products 2,325 2,077 Inventories $ 3,779 $ 3,651 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Notes) | 9 Months Ended |
Sep. 30, 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 Impairment losses (452) (58) (510) Translation adjustments and other (2) (11) (13) Balance at September 30, 2023 $ 27,231 $ 3,079 $ 30,310 2023 Year-to-Date Goodwill Impairment Testing We performed our 2023 annual impairment test as of July 2, 2023, which was the first day of our third quarter of 2023. In performing this test, we incorporated information that was known through the date of filing this Quarterly Report on Form 10-Q. We utilized the discounted cash flow method under the income approach to estimate the fair value of our reporting units. As a result of our 2023 annual impairment test, we recognized a non-cash goodwill impairment loss of approximately $510 million in SG&A, which included a $452 million impairment loss in our Canada and North America Coffee (“CNAC”) reporting unit within our North America segment and a $58 million impairment loss in our Continental Europe reporting unit within our International segment. These impairments were primarily driven by an increase in the discount rate, which was impacted by higher interest rates, a decline in market capitalization, and other market inputs. After these impairments, the goodwill carrying amount of our CNAC reporting unit is approximately $909 million and the goodwill carrying amount of our Continental Europe reporting unit is approximately $958 million. As of the 2023 annual impairment test, our reporting units with 20% or less fair value over carrying amount had an aggregate goodwill carrying amount of $30.1 billion and included Taste, Meals, and Away From Home (“TMA”), Fresh, Beverages, and Desserts (“FBD”), Northern Europe, Continental Europe, CNAC, and LATAM. Our Asia reporting unit had between 20-50% fair value over carrying amount with an aggregate goodwill carrying amount of $309 million as of the 2023 annual impairment test date. As of September 30, 2023, and following the goodwill impairments recorded during the third quarter, we maintain 11 reporting units, seven of which comprise our goodwill balance. These seven reporting units had an aggregate goodwill carrying amount of $30.3 billion at September 30, 2023. Accumulated impairment losses to goodwill were $11.8 billion as of September 30, 2023 and $11.3 billion as of December 31, 2022. 2022 Year-to-Date Goodwill Impairment Testing As previously disclosed, we historically tested our reporting units and brands for impairment annually as of the first day of our second quarter, or more frequently if events or circumstances indicate it is more likely than not that the fair value of a reporting unit or brand is less than its carrying amount. As discussed in further detail below, we performed an annual test as of March 27, 2022, the first day of our second quarter (the “Q2 2022 Annual Impairment Test”). Beginning in the third quarter of 2022 and for subsequent annual periods, we voluntarily changed the annual impairment assessment date to the first day of our third quarter and performed an additional annual impairment test as of June 26, 2022 (the “Q3 2022 Annual Impairment Test”). See Note 8, Goodwill and Intangible Assets , to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information. In the second quarter of 2022, following the changes to our internal reporting and reportable segments the composition of certain of our reporting units changed and we performed an interim impairment test (or transition test) on the affected reporting units on both a pre- and post-reorganization basis. We performed our pre-reorganization impairment test as of March 27, 2022, which was the first day of our second quarter of 2022. There were six reporting units affected by the reassignment of assets and liabilities that maintained a goodwill balance as of our pre-reorganization impairment test date. These reporting units were Enhancers, Specialty, and Away From Home (“ESA”); Kids, Snacks, and Beverages (“KSB”); Meal Foundations and Coffee (“MFC”); Puerto Rico; Canada Retail; and Canada Foodservice. One other reporting unit did not have a goodwill balance as of our pre-reorganization impairment test date. As a result of our pre-reorganization impairment test, we recognized a non-cash impairment loss of approximately $235 million in SG&A in our North America segment in the second quarter of 2022. This included a $221 million impairment loss related to our Canada Retail reporting unit and a $14 million impairment loss related to our Puerto Rico reporting unit. The impairment of our Canada Retail reporting unit was primarily driven by an increase in the discount rate, which was impacted by higher interest rates and other market inputs, as well as a revised downward outlook for operating margin. The impairment of our Puerto Rico reporting unit was primarily driven by a revised downward outlook for operating margin. The remaining reporting units tested as part of our pre-reorganization impairment test each had excess fair value over carrying amount as of March 27, 2022. We performed our post-reorganization impairment test in conjunction with our Q2 2022 Annual Impairment Test and tested the new North America reporting units (TMA, FBD, CNAC, and Other North America) along with the reporting units in our International segment. The new North America reporting units’ goodwill carrying amounts for the post-reorganization and Q2 2022 Annual Impairment Test reflected the pre-reorganization test results, including impairments recorded. We tested our reporting units for impairment as of the first day of our second quarter, which was March 27, 2022 for our Q2 2022 Annual Impairment Test. In performing this test, we incorporated information that was known through the date of filing our Quarterly Report on Form 10-Q for the three months ended June 25, 2022. We utilized the discounted cash flow method under the income approach to estimate the fair value of our reporting units. As a result of our Q2 2022 Annual Impairment Test, we determined that the fair value of each of the reporting units tested was in excess of its carrying amount. We performed our Q3 2022 Annual Impairment Test as of June 26, 2022, which was the first day of our third quarter of 2022. In performing this test, we incorporated information that was known through the date of filing of our Quarterly Report on Form 10-Q for the period ended September 24, 2022. We utilized the discounted cash flow method under the income approach to estimate the fair value of our reporting units. As a result of our Q3 2022 Annual Impairment Test, we recognized a non-cash impairment loss of approximately $220 million in SG&A in our North America segment related to our CNAC reporting unit. The impairment of our CNAC reporting unit was primarily driven by reduced revenue growth assumptions and negative macroeconomic factors, including increased interest rates and foreign currency exchange rates for the Canadian dollar relative to the U.S. dollar. See Note 8, Goodwill and Intangible Assets , to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on these impairment losses. 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, market capitalization, 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 2023 and 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 the 2023 annual impairment test have a heightened risk of future impairments if any assumptions, estimates, or market factors change in the future. Although the remaining reporting unit has more than 20% excess fair value over carrying amount as of the 2023 annual impairment test, this amount is 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 Impairment losses (152) Transfers to definite-lived intangible assets (73) Translation adjustments and other 13 Balance at September 30, 2023 $ 38,340 2023 Year-to-Date Indefinite-Lived Intangible Asset Impairment Testing Our indefinite-lived intangible asset balance primarily consists of a number of individual brands, which had an aggregate carrying amount of $38.3 billion at September 30, 2023. As a result of our 2023 annual impairment test as of July 2, 2023, we recognized non-cash intangible asset impairment losses of $152 million in SG&A in the third quarter of 2023 related to Maxwell House, Cool Whip, and two other brands. We utilized the relief from royalty method under the income approach to estimate the fair values and recorded non-cash impairment losses of $139 million in our North America segment and $13 million in our International segment, consistent with ownership of the trademarks. The impairment of these four brands was primarily due to an increase in the discount rate, which was impacted by higher interest rates, a decline in market capitalization, and other market inputs, as well as sustained expectations of declining revenue growth in future years, and decreased margin expectations. After these impairments, the aggregate carrying amount of these brands was $942 million. As of the 2023 annual impairment test, brands with 20% or less fair value over carrying amount had an aggregate carrying amount after impairment of $18.7 billion, brands with between 20-50% fair value over carrying amount had an aggregate carrying amount of $4.2 billion, and brands that had over 50% fair value over carrying amount had an aggregate carrying amount of $15.7 billion. As part of the 2023 annual impairment test, we reclassified two indefinite-lived intangible assets to definite-lived intangible assets related to trademarks in our International segment that had a history of impairment and limited capital investment. After the fair value assessment of these brands as part of the 2023 annual impairment test, we transferred $73 million from indefinite-lived intangible assets to definite-lived trademarks as of July 2, 2023 and recognized three months of amortization expense as of September 30, 2023. 2022 Year-to-Date Indefinite-Lived Intangible Asset Impairment Testing As a result of our Q2 2022 Annual Impairment Test, we recognized a non-cash impairment loss of $395 million in SG&A in our North America segment in the second quarter of 2022 related to four brands, Maxwell House , Miracle Whip , Jet Puffed , and Classico. The impairments of the Maxwell House, Jet Puffed , and Classico brands were primarily due to downward revisions in expected future operating margins as well as an increase in the discount rate, which was impacted by higher interest rates and other market inputs. The impairment of the Miracle Whip brand was primarily due to an increase in the discount rate as well as downward revisions in expected future operating margins due to changes in expectations for commodity input costs, including soybean oil. As a result of our Q3 2022 Annual Impairment Test we recognized a non-cash impairment loss of $67 million in SG&A in the third quarter of 2022 related to two brands, Jet Puffed and Plasmon . We utilized the relief from royalty method under the income approach to estimate the fair values and recorded non-cash impairment losses of $50 million in our North America segment and $17 million in our International segment, consistent with ownership of the trademarks. The impairment of these brands was primarily due to reduced revenue growth assumptions. See Note 8, Goodwill and Intangible Assets , to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on these impairment losses. 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, market capitalization, 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 2023 and 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 the 2023 annual 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 the 2023 annual 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): September 30, 2023 December 31, 2022 Gross Accumulated Net Gross Accumulated Net Trademarks $ 2,285 $ (721) $ 1,564 $ 2,223 $ (649) $ 1,574 Customer-related assets 3,682 (1,281) 2,401 3,690 (1,177) 2,513 Other 12 (3) 9 13 (3) 10 $ 5,979 $ (2,005) $ 3,974 $ 5,926 $ (1,829) $ 4,097 Amortization expense for definite-lived intangible assets was $61 million for the three months and $187 million for the nine months ended September 30, 2023 and $64 million for the three months and $193 million for the nine months ended September 24, 2022. Aside from amortization expense, the change in definite-lived intangible assets from December 31, 2022 to September 30, 2023 primarily reflects the transfer of $73 million from indefinite-lived intangible assets to definite-lived intangible assets related to trademarks in our International segment and the impacts of foreign currency. In the third quarter of 2022, we recorded $7 million of non-cash intangible asset impairment losses to SG&A related to two trademarks in our International segment that had net carrying values that were deemed not to be recoverable. We estimate that amortization expense related to definite-lived intangible assets will be approximately $250 million in 2023, $260 million in each of the following four years, and $250 million in 2028. |
Income Taxes (Notes)
Income Taxes (Notes) | 9 Months Ended |
Sep. 30, 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 September 30, 2023 was an expense of 44.7% on pre-tax income. Our effective tax rate was unfavorably impacted by certain net discrete items, including non-deductible goodwill impairments (29.0%) and a net increase in uncertain tax position reserves. These impacts were partially offset by favorable changes in estimates of certain 2022 U.S. income and deductions and the geographic mix of pre-tax income in various non-U.S. jurisdictions. Our effective tax rate for the three months ended September 24, 2022 was an expense of 20.2% on pre-tax income. Our effective tax rate was impacted by the favorable geographic mix of pre-tax income in various non-U.S. jurisdictions and certain favorable net discrete items, including the revaluation of deferred tax balances due to changes in state tax rates and favorable changes in estimates of certain 2021 U.S. income and deductions. These impacts were partially offset by the impact of certain unfavorable net discrete items, primarily non-deductible goodwill impairments (10.3%). The year-over-year increase in the effective tax rate for the three month period was due primarily to the impact of higher non-deductible goodwill impairments in the current period. Our effective tax rate for the nine months ended September 30, 2023 was an expense of 22.1% 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 certain net discrete items, including the net decrease in uncertain tax position reserves primarily in the U.S. resulting from a conclusion of the IRS’s income tax examination for the year 2017 and the lapsing of the statute of limitations for such year (2.1%), as well as favorable changes in estimates of certain 2022 U.S. income and deductions. These impacts were partially offset by the impact of certain unfavorable net discrete items, primarily non-deductible goodwill impairments (5.0%). Our effective tax rate for the nine months ended September 24, 2022 was an expense of 22.7% on pre-tax income. Our effective tax rate was impacted by the favorable geographic mix of pre-tax income in various non-U.S. jurisdictions and certain favorable net discrete items, primarily the revaluation of deferred tax balances due to changes in state tax rates. This impact was partially offset by the impact of certain unfavorable net discrete items, primarily non-deductible goodwill impairments (6.1%). The year-over-year decrease in the effective tax rate for the nine month period was due primarily to the impact of changes in uncertain tax position reserves in the current year period. 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 IRS for the years 2018 and 2019. In the third quarter of 2023, we received two Notices of Proposed Adjustment (the “NOPAs”) relating to transfer pricing with our foreign subsidiaries. The NOPAs propose an increase to our U.S. taxable income that could result in additional U.S. federal income tax expense and liability of approximately $200 million for 2018 and approximately $210 million for 2019, excluding interest, and assert penalties of approximately $85 million for each of 2018 and 2019. We strongly disagree with the IRS’s positions, believe that our tax positions are well documented and properly supported, and intend to vigorously contest the positions taken by the IRS and pursue all available administrative and judicial remedies. Therefore, we have not recorded any reserves related to this issue. While we are not currently under audit for years after 2019, we continue to maintain the same operating model and transfer pricing methodology with our foreign subsidiaries that was in place for the years 2018 and 2019. We 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/or potential penalties, our results of operations and cash flows could be materially affected. |
Employees' Stock Incentive Plan
Employees' Stock Incentive Plans (Notes) | 9 Months Ended |
Sep. 30, 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 (725,706) 66.15 Exercised (1,479,202) 33.48 Outstanding at September 30, 2023 8,148,456 46.68 The aggregate intrinsic value of stock options exercised during the period was $10 million for the nine months ended September 30, 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 2,578,646 38.29 Forfeited (527,416) 36.36 Vested (3,601,311) 31.60 Outstanding at September 30, 2023 7,780,637 36.80 The aggregate fair value of RSUs that vested during the period was $133 million for the nine months ended September 30, 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 (375,702) 33.33 Vested (945,056) 26.72 Outstanding at September 30, 2023 4,932,283 33.65 The aggregate fair value of PSUs that vested during the period was $33 million for the nine months ended September 30, 2023. |
Postemployment Benefits (Notes)
Postemployment Benefits (Notes) | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Postemployment Benefits | Postemployment BenefitsSee 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 September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Service cost $ — $ 1 $ 2 $ 3 Interest cost 35 34 17 9 Expected return on plan assets (48) (48) (23) (17) Amortization of prior service costs/(credits) — — 1 1 Amortization of unrecognized losses/(gains) — — 4 — Settlements — 1 — — Net pension cost/(benefit) $ (13) $ (12) $ 1 $ (4) For the Nine Months Ended U.S. Plans Non-U.S. Plans September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Service cost $ 1 $ 3 $ 5 $ 10 Interest cost 106 82 50 28 Expected return on plan assets (146) (145) (66) (53) Amortization of prior service costs/(credits) — — 1 1 Amortization of unrecognized losses/(gains) — — 10 1 Special/contractual termination benefits — — 2 — Net pension cost/(benefit) $ (39) $ (60) $ 2 $ (13) 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 $9 million during the nine months ended September 30, 2023 and plan to make further contributions of approximately $1 million during the remainder of 2023. We did not contribute to our U.S. pension plans during the nine months ended September 30, 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 For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Service cost $ 1 $ 1 $ 2 $ 3 Interest cost 10 9 28 19 Expected return on plan assets (14) (13) (41) (40) Amortization of prior service costs/(credits) (4) (5) (11) (12) Amortization of unrecognized losses/(gains) (3) (3) (11) (12) Net postretirement cost/(benefit) $ (10) $ (11) $ (33) $ (42) 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 nine months ended September 30, 2023, we contributed $9 million to our postretirement benefit plans. We plan to make further contributions of approximately $3 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) | 9 Months Ended |
Sep. 30, 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 September 30, 2023 December 31, 2022 Commodity contracts $ 855 $ 1,166 Foreign exchange contracts 2,792 3,139 Cross-currency contracts 6,099 6,336 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): September 30, 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) $ — $ — $ 25 $ 11 $ 25 $ 11 Cross-currency contracts (b) — — 209 102 209 102 Derivatives not designated as hedging instruments: Commodity contracts (c) 44 34 2 2 46 36 Foreign exchange contracts (a) — — 19 23 19 23 Total fair value $ 44 $ 34 $ 255 $ 138 $ 299 $ 172 (a) At September 30, 2023, the fair value of our derivative assets was recorded in other current assets ($40 million) and other non-current assets ($4 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($32 million) and other non-current liabilities ($2 million). (b) At September 30, 2023, the fair value of our derivative assets was recorded in other current assets ($139 million) and other non-current assets ($70 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($37 million) and other non-current liabilities ($65 million). (c) At September 30, 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 $132 million at September 30, 2023 and $222 million at December 31, 2022. At September 30, 2023, related to commodity derivative margin requirements, we had collected collateral of $20 million, which was included in other current liabilities on our condensed consolidated balance sheet, and we had posted an insignificant amount of collateral, which was included in prepaid expenses on our condensed consolidated balance sheet. At December 31, 2022, we had posted collateral of $43 million related to commodity derivative margin requirements, which were included in prepaid expenses on our condensed consolidated balance sheet. Level 1 financial assets and liabilities consist of commodity future and options contracts and are valued using quoted prices in active markets for identical assets and liabilities. Level 2 financial assets and liabilities consist of commodity swaps, foreign exchange forwards, options, and swaps, and cross-currency swaps. Commodity swaps are valued using an income approach based on the observable market commodity index prices less the contract rate multiplied by the notional amount. Foreign exchange forwards and swaps are valued using an income approach based on observable market forward rates less the contract rate multiplied by the notional amount. Foreign exchange options are valued using an income approach based on a Black-Scholes-Merton formula. This formula uses present value techniques and reflects the time value and intrinsic value based on observable market rates. Cross-currency swaps are valued based on observable market spot and swap rates. We did not have any Level 3 financial assets or liabilities in any period presented. Our calculation of the fair value of financial instruments takes into consideration the risk of nonperformance, including counterparty credit risk. Net Investment Hedging: At September 30, 2023, we had the following items designated as net investment hedges: • Non-derivative foreign-denominated debt with principal amounts of €600 million and £400 million; and • Cross-currency contracts with notional amounts of C$1.4 billion ($1.0 billion), €1.8 billion ($2.0 billion), JPY9.6 billion ($68 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 September 30, 2023, we had euro intercompany loans with an aggregate notional amount of $106 million. The component of the gains and losses on our net investment in these designated foreign operations, driven by changes in foreign exchange rates, are economically offset by fair value movements on the effective portion of our cross-currency contracts and foreign exchange contracts and remeasurements of our foreign-denominated debt. Cash Flow Hedge Coverage: At September 30, 2023, we had entered into foreign exchange contracts designated as cash flow hedges for periods not exceeding the next 28 months and cross-currency contracts designated as cash flow hedges for periods not exceeding the next 56 months. Deferred Hedging Gains and Losses on Cash Flow Hedges: Based on our valuation at September 30, 2023 and assuming market rates remain constant through contract maturities, we expect transfers to net income/(loss) of the existing gains reported in accumulated other comprehensive income/(losses) during the next 12 months on foreign currency cash flow hedges and cross-currency cash flow hedges to be insignificant. Additionally, we expect transfers to net income/(loss) of the existing losses reported in accumulated other comprehensive income/(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 nine months ended September 24, 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 For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Cash flow hedges: Foreign exchange contracts $ — $ — $ — $ 1 Net sales Foreign exchange contracts 29 38 11 44 Cost of products sold Foreign exchange contracts (excluded component) (3) (8) (6) (13) Cost of products sold Foreign exchange contracts — 2 — 3 SG&A Cross-currency contracts (14) (99) 20 (208) Other expense/(income) Cross-currency contracts (excluded component) 7 8 20 22 Other expense/(income) Cross-currency contracts (7) (9) (20) (23) Interest expense Interest rate contracts — — (3) — Interest expense Net investment hedges: Foreign exchange contracts 1 11 4 23 Other expense/(income) Foreign exchange contracts (excluded component) — — 1 (1) Interest expense Cross-currency contracts 77 287 7 512 Other expense/(income) Cross-currency contracts (excluded component) 10 11 27 35 Interest expense Total gains/(losses) recognized in statements of comprehensive income $ 100 $ 241 $ 61 $ 395 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 September 30, 2023 September 24, 2022 Cost of products sold Interest expense Other expense/(income) Cost of products sold SG&A Interest expense Other expense/(income) Total amounts presented in the condensed consolidated statements of income in which the following effects were recorded $ 4,335 $ 228 $ (35) $ 4,662 $ 1,092 $ 228 $ (22) Gains/(losses) related to derivatives designated as hedging instruments: Cash flow hedges: Foreign exchange contracts $ 8 $ — $ — $ 1 $ 2 $ — $ — Foreign exchange contracts (excluded component) (3) — — (2) — — — Interest rate contracts — — — — — (1) — Cross-currency contracts — (8) (31) — — (8) (90) Cross-currency contracts (excluded component) — — 7 — — — 8 Net investment hedges: Foreign exchange contracts (excluded component) — 1 — — — — — Cross-currency contracts (excluded component) — 9 — — — 11 — Gains/(losses) related to derivatives not designated as hedging instruments: Commodity contracts 24 — — (56) — — — Foreign exchange contracts — — (5) — — — (50) Cross-currency contracts — — (1) — — — (2) Total gains/(losses) recognized in statements of income $ 29 $ 2 $ (30) $ (57) $ 2 $ 2 $ (134) For the Nine Months Ended September 30, 2023 September 24, 2022 Cost of products sold Interest expense Other expense/(income) Cost of products sold SG&A Interest expense Other expense/(income) Total amounts presented in the condensed consolidated statements of income in which the following effects were recorded $ 13,171 $ 683 $ (94) $ 13,346 $ 3,350 $ 704 $ (211) Gains/(losses) related to derivatives designated as hedging instruments: Cash flow hedges: Foreign exchange contracts $ 27 $ — $ — $ (6) $ 2 $ — $ — Foreign exchange contracts (excluded component) (8) — — (5) — — — Interest rate contracts — — — — — (1) — Cross-currency contracts — (21) (2) — — (23) (170) Cross-currency contracts (excluded component) — — 20 — — — 22 Net investment hedges: Foreign exchange contracts (excluded component) — 1 — — — (1) — Cross-currency contracts (excluded component) — 26 — — — 31 — Gains/(losses) related to derivatives not designated as hedging instruments: Commodity contracts (50) — — 92 — — — Foreign exchange contracts — — (12) — — — (47) Cross-currency contracts — — 2 — — — — Total gains/(losses) recognized in statements of income $ (31) $ 6 $ 8 $ 81 $ 2 $ 6 $ (195) Non-Derivative Impact on Statements of Comprehensive Income: Related to our non-derivative foreign-denominated debt instruments designated as net investment hedges, we recognized pre-tax gains of $44 million for the three months and $12 million for the nine months ended September 30, 2023 and $129 million for the three months and $230 million for the nine months ended September 24, 2022. These amounts were recognized in other comprehensive income/(loss). |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income/(Losses) (Notes) | 9 Months Ended |
Sep. 30, 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 (62) — — (62) Net deferred gains/(losses) on net investment hedges 17 — — 17 Amounts excluded from the effectiveness assessment of net investment hedges 21 — — 21 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (21) — — (21) Net deferred gains/(losses) on cash flow hedges — — 5 5 Amounts excluded from the effectiveness assessment of cash flow hedges — — 13 13 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) — — (18) (18) Net postemployment benefit losses/(gains) reclassified to net income/(loss) — (8) — (8) Total other comprehensive income/(loss) (45) (8) — (53) Balance as of September 30, 2023 $ (2,890) $ (38) $ 65 $ (2,863) 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 September 30, 2023 September 24, 2022 Before Tax Amount Tax Net of Tax Amount Before Tax Amount Tax Net of Tax Amount Foreign currency translation adjustments $ (352) $ — $ (352) $ (815) $ — $ (815) Net deferred gains/(losses) on net investment hedges 122 (30) 92 427 (103) 324 Amounts excluded from the effectiveness assessment of net investment hedges 10 (3) 7 11 (3) 8 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (10) 2 (8) (11) 1 (10) Net deferred gains/(losses) on cash flow hedges 8 6 14 (68) 39 (29) Amounts excluded from the effectiveness assessment of cash flow hedges 4 (1) 3 — 1 1 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) 27 (14) 13 90 (42) 48 Net actuarial gains/(losses) arising during the period — — — (154) 37 (117) Net postemployment benefit losses/(gains) reclassified to net income/(loss) (2) 1 (1) (6) 2 (4) For the Nine Months Ended September 30, 2023 September 24, 2022 Before Tax Amount Tax Net of Tax Amount Before Tax Amount Tax Net of Tax Amount Foreign currency translation adjustments $ (62) $ — $ (62) $ (1,494) $ — $ (1,494) Net deferred gains/(losses) on net investment hedges 23 (6) 17 765 (184) 581 Amounts excluded from the effectiveness assessment of net investment hedges 28 (7) 21 34 (8) 26 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (27) 6 (21) (30) 7 (23) Net deferred gains/(losses) on cash flow hedges 8 (3) 5 (183) 82 (101) Amounts excluded from the effectiveness assessment of cash flow hedges 14 (1) 13 9 — 9 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) (16) (2) (18) 181 (84) 97 Net actuarial gains/(losses) arising during the period — — — (345) 85 (260) Net postemployment benefit losses/(gains) reclassified to net income/(loss) (11) 3 (8) (22) 7 (15) 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 For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Losses/(gains) on net investment hedges: Foreign exchange contracts (a) $ (1) $ — $ (1) $ 1 Interest expense Cross-currency contracts (a) (9) (11) (26) (31) Interest expense Losses/(gains) on cash flow hedges: Foreign exchange contracts (b) (5) 1 (19) 11 Cost of products sold Foreign exchange contracts (b) — (2) — (2) SG&A Cross-currency contracts (b) 24 82 (18) 148 Other expense/(income) Cross-currency contracts (b) 8 8 21 23 Interest expense Interest rate contracts (c) — 1 — 1 Interest expense Losses/(gains) on hedges before income taxes 17 79 (43) 151 Losses/(gains) on hedges, income taxes (12) (41) 4 (77) Losses/(gains) on hedges $ 5 $ 38 $ (39) $ 74 Losses/(gains) on postemployment benefits: Amortization of unrecognized losses/(gains) (d) $ 1 $ (3) $ (1) $ (11) Amortization of prior service costs/(credits) (d) (3) (4) (10) (11) Settlement and curtailment losses/(gains) (d) — 1 — — Losses/(gains) on postemployment benefits before income taxes (2) (6) (11) (22) Losses/(gains) on postemployment benefits, income taxes 1 2 3 7 Losses/(gains) on postemployment benefits $ (1) $ (4) $ (8) $ (15) (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) Represents amortization of realized hedge losses that were deferred into accumulated other comprehensive income/(losses) through the maturity of the related long-term debt instruments. (d) 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) | 9 Months Ended |
Sep. 30, 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 $40 million at September 30, 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 $242 million during the three months and $863 million during the nine months ended September 30, 2023, with no amounts outstanding as of September 30, 2023. The incremental costs of factoring receivables under this arrangement were insignificant for the three and nine months ended September 30, 2023. No receivables were sold under this accounts receivable factoring program during the three or nine months ended September 24, 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. 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 |
Commitments, Contingencies and
Commitments, Contingencies and Debt (Notes) | 9 Months Ended |
Sep. 30, 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 were 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 named 3G Capital, Inc. and several of its subsidiaries and affiliates (the “3G Entities”) as defendants, asserted 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 class settlement agreement. Related to that agreement, we recorded a net expense of $210 million within SG&A in our consolidated statements of income for the fourth quarter of 2022, representative of the Company’s then-estimated liability after insurance recoveries and contributions from other defendants. The Company’s liability and the insurance recoveries are reflected in current liabilities and current assets on the condensed consolidated balance sheets at December 31, 2022. In the third quarter of 2023, we paid our remaining liability after insurance recoveries. On September 12, 2023, the United States District Court for the Northern District of Illinois issued a Judgment Approving Class Action Settlement, wherein it granted final approval of the class settlement and dismissed the lawsuit with prejudice. 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 Kraft Heinz 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 the 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: In July 2022, together with Kraft Heinz Foods Company (“KHFC”), our 100% owned operating subsidiary, we entered into a new credit agreement, which provides for a five-year senior unsecured revolving credit facility in an aggregate amount of $4.0 billion (the “Senior Credit Facility”). On July 21, 2023, we entered into an agreement to extend the maturity date of our Senior Credit Facility from July 8, 2027 to July 8, 2028. 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 additional 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 September 30, 2023 . Debt Issuances: In May 2023, KHFC issued 600 million euro aggregate principal amount of floating rate senior notes due May 2025 (the “2023 Notes”). The 2023 Notes are fully and unconditionally guaranteed by The Kraft Heinz Company as to payment of principal and interest on a senior unsecured basis. We used the proceeds from the 2023 Notes for general corporate purposes, including to partially fund the repayment of our 750 million euro senior notes that matured in June 2023. Debt Issuance Costs: Debt issuance costs related to the 2023 Notes were insignificant. Open Market Debt Repurchases: 2022 Open Market Debt Repurchases During the nine months ended September 24, 2022, we repurchased approximately $448 million of certain of our senior notes under Rule 10b5-1 plans, including $268 million in the second quarter of 2022 (the “Q2 2022 Repurchases”) and $180 million in the third quarter of 2022 (the “Q3 2022 Repurchases” and, together with the Q2 2022 Repurchases, the “2022 Repurchases”). The $448 million repurchased during the nine months ended September 24, 2022 included approximately $133 million aggregate principal amount of 6.500% senior notes due February 2040, approximately $70 million aggregate principal amount of 5.200% senior notes due July 2045, approximately $63 million aggregate principal amount of 7.125% senior notes due August 2039, approximately $61 million aggregate principal amount of 5.000% senior notes due June 2042, approximately $34 million aggregate principal amount of 4.875% senior notes due October 2049, approximately $29 million aggregate principal amount of 5.000% senior notes due July 2035, approximately $29 million aggregate principal amount of 6.875% senior notes due January 2039, approximately $14 million aggregate principal amount of 6.375% senior notes due July 2028, approximately $9 million aggregate principal amount of 5.500% senior notes due June 2050, approximately $4 million aggregate principal amount of 4.625% senior notes due October 2039, and approximately $2 million aggregate principal amount of 4.625% senior notes due January 2029. In connection with the 2022 Repurchases, we recognized a net gain on extinguishment of debt of approximately $12 million within interest expense on the condensed consolidated statements of income for the nine months ended September 24, 2022, which included a net gain of $9 million in the second quarter of 2022 related to the Q2 2022 Repurchases and a net gain of $3 million in the third quarter of 2022 related to the Q3 2022 Repurchases. This gain primarily reflects the write-off of unamortized premiums partially offset by the payment of net premiums associated with the repurchases. Related to the 2022 Repurchases, we recognized debt prepayment and extinguishment costs of $17 million on the condensed consolidated statement of cash flows for the nine months ended September 24, 2022, which reflect the $12 million net gain on extinguishment of debt adjusted for the non-cash write-off of unamortized premiums of $30 million and unamortized debt issuance costs of $1 million. Debt Repayments: In June 2023, we repaid 750 million euro aggregate principal amount of senior notes that matured in the period. In August 2022, we repaid $315 million aggregate principal amount of floating rate senior notes that matured in the period. In June 2022, we repaid $381 million aggregate principal amount of senior notes that matured in the period. In March 2022, we repaid $6 million aggregate principal amount of senior notes that matured in the period. Fair Value of Debt: At September 30, 2023, the aggregate fair value of our total debt was $18.0 billion as compared with a carrying value of $19.9 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 September 30, 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. Lease Arrangements In June 2023, we entered into a non-cancellable synthetic lease for a distribution facility, for which we are the construction agent, with an estimated construction cost of approximately $400 million. The lease will commence upon completion of construction of the facility which is expected to be in the later part of 2025. The term of the lease is five years after commencement. At the end of the lease term, we will be required to either purchase the facility or, in the event that option is not elected, to remarket the facility. Upon lease commencement, the lease classification, right-of-use asset, and lease liability will be determined and recorded. The lease arrangement contains a residual value guarantee of approximately 85% of the total construction cost. The construction agreement and lease contain covenants that are consistent with our Senior Credit Facility as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Our earnings per common share (“EPS”) were: For the Three Months Ended For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 (in millions, except per share data) Basic Earnings Per Common Share: Net income/(loss) attributable to common shareholders $ 262 $ 432 $ 2,098 $ 1,473 Weighted average shares of common stock outstanding 1,229 1,227 1,228 1,226 Net earnings/(loss) $ 0.21 $ 0.35 $ 1.71 $ 1.20 Diluted Earnings Per Common Share: Net income/(loss) attributable to common shareholders $ 262 $ 432 $ 2,098 $ 1,473 Weighted average shares of common stock outstanding 1,229 1,227 1,228 1,226 Effect of dilutive equity awards 6 8 7 9 Weighted average shares of common stock outstanding, including dilutive effect 1,235 1,235 1,235 1,235 Net earnings/(loss) $ 0.21 $ 0.35 $ 1.70 $ 1.19 We use the treasury stock method to calculate the dilutive effect of outstanding equity awards in the denominator for diluted EPS. Anti-dilutive shares were 7 million for the three and nine months ended September 30, 2023 and 8 million for the three and 7 million for the nine months ended September 24, 2022. |
Segment Reporting (Notes)
Segment Reporting (Notes) | 9 Months Ended |
Sep. 30, 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 For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Net sales: North America $ 4,995 $ 5,016 $ 14,959 $ 14,656 International 1,575 1,489 4,821 4,448 Total net sales $ 6,570 $ 6,505 $ 19,780 $ 19,104 Segment Adjusted EBITDA was (in millions): For the Three Months Ended For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Segment Adjusted EBITDA: North America $ 1,390 $ 1,213 $ 4,108 $ 3,734 International 259 243 804 733 General corporate expenses (84) (58) (255) (207) Depreciation and amortization (excluding restructuring activities) (234) (227) (680) (676) Divestiture-related license income 14 14 41 41 Restructuring activities (45) (8) (25) (38) Deal costs — — — (8) Unrealized gains/(losses) on commodity hedges 48 (84) 53 (65) Impairment losses (662) (314) (662) (999) Certain non-ordinary course legal and regulatory matters — — (2) — Equity award compensation expense (33) (28) (110) (107) Operating income/(loss) 653 751 3,272 2,408 Interest expense 228 228 683 704 Other expense/(income) (35) (22) (94) (211) Income/(loss) before income taxes $ 460 $ 545 $ 2,683 $ 1,915 Net sales by platform were (in millions): For the Three Months Ended For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Taste Elevation $ 2,196 $ 2,040 $ 6,750 $ 6,020 Fast Fresh Meals 1,418 1,468 4,197 4,300 Easy Meals Made Better 1,300 1,261 3,859 3,726 Real Food Snacking 353 367 966 1,023 Flavorful Hydration 486 516 1,545 1,527 Easy Indulgent Desserts 265 248 755 719 Other 552 605 1,708 1,789 Total net sales $ 6,570 $ 6,505 $ 19,780 $ 19,104 Net sales by product category were (in millions): For the Three Months Ended For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Condiments and sauces $ 2,171 $ 2,048 $ 6,730 $ 6,012 Cheese and dairy 909 932 2,709 2,745 Ambient foods 759 730 2,197 2,136 Frozen and chilled foods 757 731 2,185 2,113 Meats and seafood 626 704 1,865 2,025 Refreshment beverages 485 516 1,542 1,530 Coffee 220 213 652 644 Infant and nutrition 85 94 274 305 Desserts, toppings, and baking 299 276 854 808 Other 259 261 772 786 Total net sales $ 6,570 $ 6,505 $ 19,780 $ 19,104 |
Other Financial Data (Notes)
Other Financial Data (Notes) | 9 Months Ended |
Sep. 30, 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 For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Amortization of postemployment benefit plans prior service costs/(credits) $ (3) $ (4) $ (10) $ (11) Net pension and postretirement non-service cost/(benefit) (a) (22) (28) (68) (120) Loss/(gain) on sale of business — — 2 (1) Interest income (12) (7) (28) (18) Foreign exchange losses/(gains) (25) (117) 21 (254) Derivative losses/(gains) 30 134 (8) 195 Other miscellaneous expense/(income) (3) — (3) (2) Other expense/(income) $ (35) $ (22) $ (94) $ (211) (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. Other expense/(income) was $35 million of income for the three months ended September 30, 2023 compared to $22 million of income for the three months ended September 24, 2022. This change was primarily driven by a $30 million net loss on derivative activities in the third quarter of 2023 compared to a $134 million net loss on derivative activities in the third quarter of 2022, which more than offset a $25 million net foreign exchange gain in the third quarter of 2023 compared to a $117 million net foreign exchange gain in the third quarter of 2022. Other expense/(income) was $94 million of income for the nine months ended September 30, 2023 compared to $211 million of income for the nine months ended September 24, 2022. This change was primarily driven by a $21 million net foreign exchange loss in 2023 compared to a $254 million net foreign exchange gain in 2022 and a $52 million decrease in non-cash net pension and postretirement non-service benefits compared to the prior year period. These impacts were partially offset by an $8 million net gain on derivative activities in 2023 compared to a $195 million net loss on derivative activities in 2022. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 262 | $ 432 | $ 2,098 | $ 1,473 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 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. Following certain organizational changes announced on November 1, 2023, we will be evaluating the potential impact on our reportable segments. We expect that any change to our reportable segments will be effective in early 2024. |
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) | 9 Months Ended |
Sep. 30, 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) | 9 Months Ended |
Sep. 30, 2023 | |
Hemmer Acquisition | |
Business Acquisition [Line Items] | |
Purchase Price Allocation to Assets Acquired and Liabilities Assumed | Final Allocation Cash $ 1 Trade receivables 13 Inventories 17 Other current assets 2 Property, plant and equipment, net 14 Identifiable intangible assets 122 Other non-current assets 17 Short-term debt (9) Trade payables (11) Other current liabilities (31) Long-term debt (11) Other non-current liabilities (44) Net assets acquired 80 Noncontrolling interest (16) Goodwill on acquisition 215 Total consideration $ 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) | 9 Months Ended |
Sep. 30, 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 Charges/(credits) 2 1 3 Cash payments (19) (3) (22) Non-cash utilization (2) (1) (3) Balance at September 30, 2023 $ 9 $ 8 $ 17 |
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 For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Severance and employee benefit costs - Cost of products sold $ 2 $ — $ 7 $ (3) Severance and employee benefit costs - SG&A — — (7) 12 Severance and employee benefit costs - Other expense/(income) — — 2 — Asset-related costs - Cost of products sold 41 2 32 9 Asset-related costs - SG&A — — (1) — Other costs - Cost of products sold 1 3 5 9 Other costs - SG&A 1 3 (11) 11 Other costs - Other expense/(income) — (1) — (1) $ 45 $ 7 $ 27 $ 37 |
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 For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 North America $ 9 $ 4 $ (1) $ 30 International 36 3 41 4 General corporate expenses — — (13) 3 $ 45 $ 7 $ 27 $ 37 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following (in millions): September 30, 2023 December 31, 2022 Packaging and ingredients $ 876 $ 1,032 Spare parts 221 208 Work in process 357 334 Finished products 2,325 2,077 Inventories $ 3,779 $ 3,651 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 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 Impairment losses (452) (58) (510) Translation adjustments and other (2) (11) (13) Balance at September 30, 2023 $ 27,231 $ 3,079 $ 30,310 |
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 Impairment losses (152) Transfers to definite-lived intangible assets (73) Translation adjustments and other 13 Balance at September 30, 2023 $ 38,340 |
Schedule of Definite-Lived Intangible Assets By Major Asset Class | Definite-lived intangible assets were (in millions): September 30, 2023 December 31, 2022 Gross Accumulated Net Gross Accumulated Net Trademarks $ 2,285 $ (721) $ 1,564 $ 2,223 $ (649) $ 1,574 Customer-related assets 3,682 (1,281) 2,401 3,690 (1,177) 2,513 Other 12 (3) 9 13 (3) 10 $ 5,979 $ (2,005) $ 3,974 $ 5,926 $ (1,829) $ 4,097 |
Employees' Stock Incentive Pl_2
Employees' Stock Incentive Plans (Tables) | 9 Months Ended |
Sep. 30, 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 (725,706) 66.15 Exercised (1,479,202) 33.48 Outstanding at September 30, 2023 8,148,456 46.68 |
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 2,578,646 38.29 Forfeited (527,416) 36.36 Vested (3,601,311) 31.60 Outstanding at September 30, 2023 7,780,637 36.80 |
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 (375,702) 33.33 Vested (945,056) 26.72 Outstanding at September 30, 2023 4,932,283 33.65 |
Postemployment Benefits (Tables
Postemployment Benefits (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Service cost $ — $ 1 $ 2 $ 3 Interest cost 35 34 17 9 Expected return on plan assets (48) (48) (23) (17) Amortization of prior service costs/(credits) — — 1 1 Amortization of unrecognized losses/(gains) — — 4 — Settlements — 1 — — Net pension cost/(benefit) $ (13) $ (12) $ 1 $ (4) For the Nine Months Ended U.S. Plans Non-U.S. Plans September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Service cost $ 1 $ 3 $ 5 $ 10 Interest cost 106 82 50 28 Expected return on plan assets (146) (145) (66) (53) Amortization of prior service costs/(credits) — — 1 1 Amortization of unrecognized losses/(gains) — — 10 1 Special/contractual termination benefits — — 2 — Net pension cost/(benefit) $ (39) $ (60) $ 2 $ (13) |
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 For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Service cost $ 1 $ 1 $ 2 $ 3 Interest cost 10 9 28 19 Expected return on plan assets (14) (13) (41) (40) Amortization of prior service costs/(credits) (4) (5) (11) (12) Amortization of unrecognized losses/(gains) (3) (3) (11) (12) Net postretirement cost/(benefit) $ (10) $ (11) $ (33) $ (42) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2023 December 31, 2022 Commodity contracts $ 855 $ 1,166 Foreign exchange contracts 2,792 3,139 Cross-currency contracts 6,099 6,336 |
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): September 30, 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) $ — $ — $ 25 $ 11 $ 25 $ 11 Cross-currency contracts (b) — — 209 102 209 102 Derivatives not designated as hedging instruments: Commodity contracts (c) 44 34 2 2 46 36 Foreign exchange contracts (a) — — 19 23 19 23 Total fair value $ 44 $ 34 $ 255 $ 138 $ 299 $ 172 (a) At September 30, 2023, the fair value of our derivative assets was recorded in other current assets ($40 million) and other non-current assets ($4 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($32 million) and other non-current liabilities ($2 million). (b) At September 30, 2023, the fair value of our derivative assets was recorded in other current assets ($139 million) and other non-current assets ($70 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($37 million) and other non-current liabilities ($65 million). (c) At September 30, 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 For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Cash flow hedges: Foreign exchange contracts $ — $ — $ — $ 1 Net sales Foreign exchange contracts 29 38 11 44 Cost of products sold Foreign exchange contracts (excluded component) (3) (8) (6) (13) Cost of products sold Foreign exchange contracts — 2 — 3 SG&A Cross-currency contracts (14) (99) 20 (208) Other expense/(income) Cross-currency contracts (excluded component) 7 8 20 22 Other expense/(income) Cross-currency contracts (7) (9) (20) (23) Interest expense Interest rate contracts — — (3) — Interest expense Net investment hedges: Foreign exchange contracts 1 11 4 23 Other expense/(income) Foreign exchange contracts (excluded component) — — 1 (1) Interest expense Cross-currency contracts 77 287 7 512 Other expense/(income) Cross-currency contracts (excluded component) 10 11 27 35 Interest expense Total gains/(losses) recognized in statements of comprehensive income $ 100 $ 241 $ 61 $ 395 |
Derivative Impact on Statements of Income | For the Three Months Ended September 30, 2023 September 24, 2022 Cost of products sold Interest expense Other expense/(income) Cost of products sold SG&A Interest expense Other expense/(income) Total amounts presented in the condensed consolidated statements of income in which the following effects were recorded $ 4,335 $ 228 $ (35) $ 4,662 $ 1,092 $ 228 $ (22) Gains/(losses) related to derivatives designated as hedging instruments: Cash flow hedges: Foreign exchange contracts $ 8 $ — $ — $ 1 $ 2 $ — $ — Foreign exchange contracts (excluded component) (3) — — (2) — — — Interest rate contracts — — — — — (1) — Cross-currency contracts — (8) (31) — — (8) (90) Cross-currency contracts (excluded component) — — 7 — — — 8 Net investment hedges: Foreign exchange contracts (excluded component) — 1 — — — — — Cross-currency contracts (excluded component) — 9 — — — 11 — Gains/(losses) related to derivatives not designated as hedging instruments: Commodity contracts 24 — — (56) — — — Foreign exchange contracts — — (5) — — — (50) Cross-currency contracts — — (1) — — — (2) Total gains/(losses) recognized in statements of income $ 29 $ 2 $ (30) $ (57) $ 2 $ 2 $ (134) For the Nine Months Ended September 30, 2023 September 24, 2022 Cost of products sold Interest expense Other expense/(income) Cost of products sold SG&A Interest expense Other expense/(income) Total amounts presented in the condensed consolidated statements of income in which the following effects were recorded $ 13,171 $ 683 $ (94) $ 13,346 $ 3,350 $ 704 $ (211) Gains/(losses) related to derivatives designated as hedging instruments: Cash flow hedges: Foreign exchange contracts $ 27 $ — $ — $ (6) $ 2 $ — $ — Foreign exchange contracts (excluded component) (8) — — (5) — — — Interest rate contracts — — — — — (1) — Cross-currency contracts — (21) (2) — — (23) (170) Cross-currency contracts (excluded component) — — 20 — — — 22 Net investment hedges: Foreign exchange contracts (excluded component) — 1 — — — (1) — Cross-currency contracts (excluded component) — 26 — — — 31 — Gains/(losses) related to derivatives not designated as hedging instruments: Commodity contracts (50) — — 92 — — — Foreign exchange contracts — — (12) — — — (47) Cross-currency contracts — — 2 — — — — Total gains/(losses) recognized in statements of income $ (31) $ 6 $ 8 $ 81 $ 2 $ 6 $ (195) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income/(Losses) (Tables) - AOCI Attributable to Parent | 9 Months Ended |
Sep. 30, 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 (62) — — (62) Net deferred gains/(losses) on net investment hedges 17 — — 17 Amounts excluded from the effectiveness assessment of net investment hedges 21 — — 21 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (21) — — (21) Net deferred gains/(losses) on cash flow hedges — — 5 5 Amounts excluded from the effectiveness assessment of cash flow hedges — — 13 13 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) — — (18) (18) Net postemployment benefit losses/(gains) reclassified to net income/(loss) — (8) — (8) Total other comprehensive income/(loss) (45) (8) — (53) Balance as of September 30, 2023 $ (2,890) $ (38) $ 65 $ (2,863) |
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 September 30, 2023 September 24, 2022 Before Tax Amount Tax Net of Tax Amount Before Tax Amount Tax Net of Tax Amount Foreign currency translation adjustments $ (352) $ — $ (352) $ (815) $ — $ (815) Net deferred gains/(losses) on net investment hedges 122 (30) 92 427 (103) 324 Amounts excluded from the effectiveness assessment of net investment hedges 10 (3) 7 11 (3) 8 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (10) 2 (8) (11) 1 (10) Net deferred gains/(losses) on cash flow hedges 8 6 14 (68) 39 (29) Amounts excluded from the effectiveness assessment of cash flow hedges 4 (1) 3 — 1 1 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) 27 (14) 13 90 (42) 48 Net actuarial gains/(losses) arising during the period — — — (154) 37 (117) Net postemployment benefit losses/(gains) reclassified to net income/(loss) (2) 1 (1) (6) 2 (4) For the Nine Months Ended September 30, 2023 September 24, 2022 Before Tax Amount Tax Net of Tax Amount Before Tax Amount Tax Net of Tax Amount Foreign currency translation adjustments $ (62) $ — $ (62) $ (1,494) $ — $ (1,494) Net deferred gains/(losses) on net investment hedges 23 (6) 17 765 (184) 581 Amounts excluded from the effectiveness assessment of net investment hedges 28 (7) 21 34 (8) 26 Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss) (27) 6 (21) (30) 7 (23) Net deferred gains/(losses) on cash flow hedges 8 (3) 5 (183) 82 (101) Amounts excluded from the effectiveness assessment of cash flow hedges 14 (1) 13 9 — 9 Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss) (16) (2) (18) 181 (84) 97 Net actuarial gains/(losses) arising during the period — — — (345) 85 (260) Net postemployment benefit losses/(gains) reclassified to net income/(loss) (11) 3 (8) (22) 7 (15) |
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 For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Losses/(gains) on net investment hedges: Foreign exchange contracts (a) $ (1) $ — $ (1) $ 1 Interest expense Cross-currency contracts (a) (9) (11) (26) (31) Interest expense Losses/(gains) on cash flow hedges: Foreign exchange contracts (b) (5) 1 (19) 11 Cost of products sold Foreign exchange contracts (b) — (2) — (2) SG&A Cross-currency contracts (b) 24 82 (18) 148 Other expense/(income) Cross-currency contracts (b) 8 8 21 23 Interest expense Interest rate contracts (c) — 1 — 1 Interest expense Losses/(gains) on hedges before income taxes 17 79 (43) 151 Losses/(gains) on hedges, income taxes (12) (41) 4 (77) Losses/(gains) on hedges $ 5 $ 38 $ (39) $ 74 Losses/(gains) on postemployment benefits: Amortization of unrecognized losses/(gains) (d) $ 1 $ (3) $ (1) $ (11) Amortization of prior service costs/(credits) (d) (3) (4) (10) (11) Settlement and curtailment losses/(gains) (d) — 1 — — Losses/(gains) on postemployment benefits before income taxes (2) (6) (11) (22) Losses/(gains) on postemployment benefits, income taxes 1 2 3 7 Losses/(gains) on postemployment benefits $ (1) $ (4) $ (8) $ (15) (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) Represents amortization of realized hedge losses that were deferred into accumulated other comprehensive income/(losses) through the maturity of the related long-term debt instruments. (d) 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) | 9 Months Ended |
Sep. 30, 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 For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 (in millions, except per share data) Basic Earnings Per Common Share: Net income/(loss) attributable to common shareholders $ 262 $ 432 $ 2,098 $ 1,473 Weighted average shares of common stock outstanding 1,229 1,227 1,228 1,226 Net earnings/(loss) $ 0.21 $ 0.35 $ 1.71 $ 1.20 Diluted Earnings Per Common Share: Net income/(loss) attributable to common shareholders $ 262 $ 432 $ 2,098 $ 1,473 Weighted average shares of common stock outstanding 1,229 1,227 1,228 1,226 Effect of dilutive equity awards 6 8 7 9 Weighted average shares of common stock outstanding, including dilutive effect 1,235 1,235 1,235 1,235 Net earnings/(loss) $ 0.21 $ 0.35 $ 1.70 $ 1.19 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Net Sales by Segment | Net sales by segment were (in millions): For the Three Months Ended For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Net sales: North America $ 4,995 $ 5,016 $ 14,959 $ 14,656 International 1,575 1,489 4,821 4,448 Total net sales $ 6,570 $ 6,505 $ 19,780 $ 19,104 |
Segment Adjusted EBITDA | Segment Adjusted EBITDA was (in millions): For the Three Months Ended For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Segment Adjusted EBITDA: North America $ 1,390 $ 1,213 $ 4,108 $ 3,734 International 259 243 804 733 General corporate expenses (84) (58) (255) (207) Depreciation and amortization (excluding restructuring activities) (234) (227) (680) (676) Divestiture-related license income 14 14 41 41 Restructuring activities (45) (8) (25) (38) Deal costs — — — (8) Unrealized gains/(losses) on commodity hedges 48 (84) 53 (65) Impairment losses (662) (314) (662) (999) Certain non-ordinary course legal and regulatory matters — — (2) — Equity award compensation expense (33) (28) (110) (107) Operating income/(loss) 653 751 3,272 2,408 Interest expense 228 228 683 704 Other expense/(income) (35) (22) (94) (211) Income/(loss) before income taxes $ 460 $ 545 $ 2,683 $ 1,915 |
Net Sales by Platform | Net sales by platform were (in millions): For the Three Months Ended For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Taste Elevation $ 2,196 $ 2,040 $ 6,750 $ 6,020 Fast Fresh Meals 1,418 1,468 4,197 4,300 Easy Meals Made Better 1,300 1,261 3,859 3,726 Real Food Snacking 353 367 966 1,023 Flavorful Hydration 486 516 1,545 1,527 Easy Indulgent Desserts 265 248 755 719 Other 552 605 1,708 1,789 Total net sales $ 6,570 $ 6,505 $ 19,780 $ 19,104 |
Net Sales by Product Category | Net sales by product category were (in millions): For the Three Months Ended For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Condiments and sauces $ 2,171 $ 2,048 $ 6,730 $ 6,012 Cheese and dairy 909 932 2,709 2,745 Ambient foods 759 730 2,197 2,136 Frozen and chilled foods 757 731 2,185 2,113 Meats and seafood 626 704 1,865 2,025 Refreshment beverages 485 516 1,542 1,530 Coffee 220 213 652 644 Infant and nutrition 85 94 274 305 Desserts, toppings, and baking 299 276 854 808 Other 259 261 772 786 Total net sales $ 6,570 $ 6,505 $ 19,780 $ 19,104 |
Other Financial Data (Tables)
Other Financial Data (Tables) | 9 Months Ended |
Sep. 30, 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 For the Nine Months Ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 Amortization of postemployment benefit plans prior service costs/(credits) $ (3) $ (4) $ (10) $ (11) Net pension and postretirement non-service cost/(benefit) (a) (22) (28) (68) (120) Loss/(gain) on sale of business — — 2 (1) Interest income (12) (7) (28) (18) Foreign exchange losses/(gains) (25) (117) 21 (254) Derivative losses/(gains) 30 134 (8) 195 Other miscellaneous expense/(income) (3) — (3) (2) Other expense/(income) $ (35) $ (22) $ (94) $ (211) |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | 9 Months Ended | |||
Sep. 30, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Sep. 24, 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 current assets | $ 1 | |||
Restricted cash included in other non-current assets | 1 | $ 1 | ||
Cash, cash equivalents, and restricted cash | $ 1,054 | $ 1,041 | $ 998 | $ 3,446 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Hemmer Additional Information (Details) $ in Millions, R$ in Billions | Mar. 31, 2022 USD ($) | Mar. 31, 2022 BRL (R$) | Sep. 30, 2023 USD ($) | Apr. 01, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 24, 2022 |
Business Acquisition [Line Items] | ||||||
Goodwill on acquisition | $ 30,310 | $ 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 | Sep. 30, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Business Acquisition [Line Items] | ||||
Goodwill on acquisition | $ 30,310 | $ 30,833 | ||
Hemmer Acquisition | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 1 | |||
Trade receivables | 13 | |||
Inventories | 17 | |||
Other current assets | 2 | |||
Property, plant and equipment, net | 14 | |||
Identifiable intangible assets | 122 | $ 122 | ||
Other non-current assets | 17 | |||
Short-term debt | (9) | |||
Trade payables | (11) | |||
Other current liabilities | (31) | |||
Long-term debt | (11) | |||
Other non-current liabilities | (44) | |||
Net assets acquired | 80 | |||
Noncontrolling interest | (16) | |||
Goodwill on acquisition | 215 | $ 219 | ||
Total consideration | $ 279 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Hemmer Purchase Price Allocation to Identifiable Intangible Assets Acquired (Details) - Hemmer Acquisition - USD ($) $ in Millions | Apr. 01, 2023 | Mar. 31, 2022 |
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 | 3 Months Ended | |||
Jan. 18, 2022 USD ($) | Jan. 18, 2022 EUR (€) | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | ||||
Goodwill on acquisition | $ 30,310 | $ 30,833 | ||
Just Spices Acquisition | ||||
Business Acquisition [Line Items] | ||||
Percent acquired | 85% | 5% | ||
Total consideration paid | $ 243 | € 214 | ||
Goodwill on acquisition | $ 167 | $ 156 | ||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 90% |
Acquisition and Divestitures -
Acquisition and Divestitures - Just Spices Purchase Price Allocation to Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Jan. 18, 2022 |
Business Acquisition [Line Items] | |||
Goodwill on acquisition | $ 30,310 | $ 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 | Dec. 31, 2022 | Jan. 18, 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 |
Acquisitions and Divestitures_7
Acquisitions and Divestitures - PNG Transaction Additional Information (Details) $ in Millions | 6 Months Ended | 9 Months Ended |
Jul. 01, 2023 business | Sep. 30, 2023 USD ($) business | |
Business Acquisition [Line Items] | ||
Potential dispositions, number of businesses | business | 2 | 2 |
Segment sold, percentage of net sales | 0.01 | |
PNG Transaction | ||
Business Acquisition [Line Items] | ||
Disposition of business, estimate of possible loss | $ 100 | |
PNG Transaction | Foreign currency translation adjustments | ||
Business Acquisition [Line Items] | ||
Disposition of business, estimate of possible loss | $ 60 |
Restructuring Activities - Addi
Restructuring Activities - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 24, 2022 USD ($) | Sep. 30, 2023 USD ($) employee | Sep. 24, 2022 USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, incurred cost (credit) | $ 45 | $ 7 | $ 27 | $ 37 |
Restructuring Activities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, number of positions eliminated | employee | 460 | |||
Restructuring and related cost, expected number of positions eliminated | employee | 300 | |||
Restructuring and related cost, incurred cost (credit) | 45 | $ 7 | $ 27 | $ 37 |
Restructuring Activities | Severance and Employee Benefit Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, incurred cost (credit) | 2 | 2 | ||
Restructuring Activities | Asset-Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, incurred cost (credit) | 41 | 31 | ||
Restructuring Activities | Other Implementation Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, incurred cost (credit) | 1 | (7) | ||
Restructuring Activities | Other Exit Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, incurred cost (credit) | $ 1 | $ 1 |
Restructuring Activities - Rest
Restructuring Activities - Restructuring Reserve Roll-forward (Details) - Restructuring Activities $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 39 |
Charges/(credits) | 3 |
Cash payments | (22) |
Non-cash utilization | (3) |
Ending balance | 17 |
Severance and Employee Benefit Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 28 |
Charges/(credits) | 2 |
Cash payments | (19) |
Non-cash utilization | (2) |
Ending balance | 9 |
Other Exit Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 11 |
Charges/(credits) | 1 |
Cash payments | (3) |
Non-cash utilization | (1) |
Ending balance | $ 8 |
Restructuring Activities - Re_2
Restructuring Activities - Restructuring Costs by Type and Income Statement Location (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, incurred cost (credit) | $ 45 | $ 7 | $ 27 | $ 37 |
Severance and Employee Benefit Costs | Cost of products sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, incurred cost (credit) | 2 | 0 | 7 | (3) |
Severance and Employee Benefit Costs | SG&A | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, incurred cost (credit) | 0 | 0 | (7) | 12 |
Severance and Employee Benefit Costs | Other expense/(income) | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, incurred cost (credit) | 0 | 0 | 2 | 0 |
Asset-Related Costs | Cost of products sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, incurred cost (credit) | 41 | 2 | 32 | 9 |
Asset-Related Costs | SG&A | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, incurred cost (credit) | 0 | 0 | (1) | 0 |
Other Costs | Cost of products sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, incurred cost (credit) | 1 | 3 | 5 | 9 |
Other Costs | SG&A | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, incurred cost (credit) | 1 | 3 | (11) | 11 |
Other Costs | Other expense/(income) | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, incurred cost (credit) | $ 0 | $ (1) | $ 0 | $ (1) |
Restructuring Activities - Re_3
Restructuring Activities - Restructuring Costs Excluded from Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Segment Reporting Information [Line Items] | ||||
Restructuring and related cost, incurred cost (credit) | $ 45 | $ 7 | $ 27 | $ 37 |
General corporate expenses | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and related cost, incurred cost (credit) | 0 | 0 | (13) | 3 |
North America | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and related cost, incurred cost (credit) | 9 | 4 | (1) | 30 |
International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and related cost, incurred cost (credit) | $ 36 | $ 3 | $ 41 | $ 4 |
Inventories Components of Inven
Inventories Components of Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Packaging and ingredients | $ 876 | $ 1,032 |
Spare parts | 221 | 208 |
Work in process | 357 | 334 |
Finished products | 2,325 | 2,077 |
Inventories | $ 3,779 | $ 3,651 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Changes in the Carrying Amount of Goodwill by Segment (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 30,833 |
Impairment losses | (510) |
Translation adjustments and other | (13) |
Ending balance | 30,310 |
North America | |
Goodwill [Roll Forward] | |
Beginning balance | 27,685 |
Impairment losses | (452) |
Translation adjustments and other | (2) |
Ending balance | 27,231 |
International | |
Goodwill [Roll Forward] | |
Beginning balance | 3,148 |
Impairment losses | (58) |
Translation adjustments and other | (11) |
Ending balance | $ 3,079 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Goodwill Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Mar. 27, 2022 employee | Sep. 30, 2023 USD ($) | Sep. 24, 2022 USD ($) | Jun. 25, 2022 USD ($) | Sep. 30, 2023 USD ($) goodwillReportingUnit | Sep. 24, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Goodwill [Line Items] | |||||||
Impairment losses | $ (510) | ||||||
Goodwill impairment losses | $ 510 | $ 220 | $ 235 | 510 | $ 444 | ||
Goodwill on acquisition | 30,310 | $ 30,310 | $ 30,833 | ||||
Number of reporting units | goodwillReportingUnit | 11 | ||||||
Goodwill, impaired, accumulated impairment loss | (11,800) | $ (11,800) | $ (11,300) | ||||
Canada and North America Coffee | |||||||
Goodwill [Line Items] | |||||||
Goodwill impairment losses | 452 | ||||||
Goodwill on acquisition | 909 | 909 | |||||
Continental Europe | |||||||
Goodwill [Line Items] | |||||||
Goodwill impairment losses | 58 | ||||||
Goodwill on acquisition | 958 | $ 958 | |||||
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 | 30,100 | $ 30,100 | |||||
Reporting unit, goodwill balance held | 20 to 50% | |||||||
Goodwill [Line Items] | |||||||
Goodwill on acquisition | $ 309 | $ 309 | |||||
Six Reporting Units | 20% or less | |||||||
Goodwill [Line Items] | |||||||
Percentage of fair value in excess of carrying amount | 20% | 20% | |||||
Asia Reporting Unit | 20 to 50% | Minimum | |||||||
Goodwill [Line Items] | |||||||
Percentage of fair value in excess of carrying amount | 20% | 20% | |||||
Asia Reporting Unit | 20 to 50% | Maximum | |||||||
Goodwill [Line Items] | |||||||
Percentage of fair value in excess of carrying amount | 50% | 50% | |||||
Pre-reorganization, number of reporting units with reassignment of assets and liabilities that maintained a goodwill balance | |||||||
Goodwill [Line Items] | |||||||
Number of reporting units | employee | 6 | ||||||
Pre-reorganization, number of reporting units with no goodwill balance | |||||||
Goodwill [Line Items] | |||||||
Number of reporting units | employee | 1 | ||||||
Canada Retail | |||||||
Goodwill [Line Items] | |||||||
Goodwill impairment losses | 221 | ||||||
Puerto Rico | |||||||
Goodwill [Line Items] | |||||||
Goodwill impairment losses | $ 14 | ||||||
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% | 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% | 20% |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Changes in the Carrying Amount of Indefinite-Lived Intangible Assets (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Beginning balance | $ 38,552 |
Impairment losses | (152) |
Transfers to definite-lived intangible assets | (73) |
Translation adjustments and other | 13 |
Ending balance | $ 38,340 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Indefinite-Lived Intangible Assets Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2023 | Sep. 24, 2022 | Jun. 25, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | Jul. 02, 2023 | Dec. 31, 2022 | |
Indefinite-lived Intangible Assets [Line Items] | |||||||
Indefinite-lived intangible assets | $ 38,340 | $ 38,340 | $ 38,552 | ||||
Intangible asset impairment losses | $ 152 | $ 74 | 152 | $ 469 | |||
Transfers to definite-lived intangible assets | $ (73) | ||||||
Brand, percentage of fair value in excess of carrying value | 20% | 20% | |||||
Jet Puffed and Plasmon | |||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||
Intangible asset impairment losses | 67 | ||||||
Maxwell House, Cool Whip, and two other brands | |||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||
Indefinite-lived intangible assets | $ 942 | ||||||
Impaired Brands | 20% or less | |||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||
Indefinite-lived intangible assets | $ 18,700 | $ 18,700 | |||||
Percentage of fair value in excess of carrying amount | 20% | 20% | |||||
Impaired Brands | 20 to 50% | |||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||
Indefinite-lived intangible assets | $ 4,200 | $ 4,200 | |||||
Impaired Brands | In Excess of 50% | |||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||
Indefinite-lived intangible assets | $ 15,700 | $ 15,700 | |||||
Percentage of fair value in excess of carrying amount | 50% | 50% | |||||
Impaired Brands | Minimum | 20 to 50% | |||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||
Percentage of fair value in excess of carrying amount | 20% | 20% | |||||
Impaired Brands | Maximum | 20 to 50% | |||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||
Percentage of fair value in excess of carrying amount | 50% | 50% | |||||
North America | |||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||
Intangible asset impairment losses | $ 139 | 50 | $ 395 | ||||
International | |||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||
Intangible asset impairment losses | $ 13 | $ 17 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets - Summary of Definite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross | $ 5,979 | $ 5,926 |
Accumulated Amortization | (2,005) | (1,829) |
Net | 3,974 | 4,097 |
Definite-lived trademarks | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross | 2,285 | 2,223 |
Accumulated Amortization | (721) | (649) |
Net | 1,564 | 1,574 |
Customer-related assets | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross | 3,682 | 3,690 |
Accumulated Amortization | (1,281) | (1,177) |
Net | 2,401 | 2,513 |
Other | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross | 12 | 13 |
Accumulated Amortization | (3) | (3) |
Net | $ 9 | $ 10 |
Goodwill and Intangible Asset_8
Goodwill and Intangible Assets - Definite Lived Intangible Assets Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 61 | $ 64 | $ 187 | $ 193 |
Transfers to definite-lived intangible assets | (73) | |||
Definite-lived intangible assets, impairment | $ 7 | |||
Amortization of definite-lived intangible assets, current year | 250 | 250 | ||
Amortization of definite-lived intangible assets, year one | 260 | 260 | ||
Amortization of definite-lived intangible assets, year two | 260 | 260 | ||
Amortization of definite-lived intangible assets, year three | 260 | 260 | ||
Amortization of definite-lived intangible assets, year four | 260 | 260 | ||
Amortization of definite-lived intangible assets, year five | $ 250 | $ 250 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Sep. 24, 2022 | Jun. 25, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Tax Contingency [Line Items] | |||||||
Effective tax rate | 44.70% | 20.20% | 22.10% | 22.70% | |||
Effective tax rate, non-deductible goodwill impairments, percent | 29% | 10.30% | 5% | 6.10% | |||
Increase (decrease) in uncertain tax position reserves | 0.021 | ||||||
Provision for/(benefit from) income taxes | $ 206 | $ 110 | $ 594 | $ 434 | |||
Cheese Transaction, Disposal Group | |||||||
Income Tax Contingency [Line Items] | |||||||
Provision for/(benefit from) income taxes | $ 620 | ||||||
Internal Revenue Service (IRS) | |||||||
Income Tax Contingency [Line Items] | |||||||
Income Tax Examination, Estimate of Possible Loss | $ 210 | $ 200 | |||||
income tax examination, estimate of possible loss from penalties | $ 85 |
Employees' Stock Incentive Pl_3
Employees' Stock Incentive Plans - Schedule of Stock Option Activity and Related Information (Details) | 9 Months Ended |
Sep. 30, 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 | (725,706) |
Exercised (in shares) | shares | (1,479,202) |
Ending balance (in shares) | shares | 8,148,456 |
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 | 66.15 |
Options exercised, weighted average exercise price (in dollars per share) | $ / shares | 33.48 |
Options outstanding at period end, weighted average exercise price (in dollars per share) | $ / shares | $ 46.68 |
Employees' Stock Incentive Pl_4
Employees' Stock Incentive Plans - Schedule of RSU Activity and Related Information (Details) - RSUs | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Number of Units | |
Beginning balance (in shares) | shares | 9,330,718 |
Granted (in shares) | shares | 2,578,646 |
Forfeited (in shares) | shares | (527,416) |
Vested (in shares) | shares | (3,601,311) |
Ending balance (in shares) | shares | 7,780,637 |
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 | 38.29 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 36.36 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 31.60 |
Outstanding at period end, weighted average grant date fair value (in dollars per share) | $ / shares | $ 36.80 |
Employees' Stock Incentive Pl_5
Employees' Stock Incentive Plans - Schedule of PSU Activity and Related Information (Details) - PSUs | 9 Months Ended |
Sep. 30, 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 | (375,702) |
Vested (in shares) | shares | (945,056) |
Ending balance (in shares) | shares | 4,932,283 |
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 | 33.33 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 26.72 |
Outstanding at period end, weighted average grant date fair value (in dollars per share) | $ / shares | $ 33.65 |
Employees' Stock Incentive Pl_6
Employees' Stock Incentive Plans - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, exercises in period, intrinsic value | $ 10 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Equity instruments other than options, vested in period, fair value | 133 |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Equity instruments other than options, vested in period, fair value | $ 33 |
Postemployment Benefits Pension
Postemployment Benefits Pension Plans - Net Cost/(Benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Amortization of postemployment benefit plans prior service costs/(credits) | $ (3) | $ (4) | $ (10) | $ (11) |
U.S. Plans | Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 1 | 1 | 3 |
Interest cost | 35 | 34 | 106 | 82 |
Expected return on plan assets | (48) | (48) | (146) | (145) |
Amortization of postemployment benefit plans prior service costs/(credits) | 0 | 0 | 0 | 0 |
Amortization of unrecognized losses/(gains) | 0 | 0 | 0 | 0 |
Settlements | 0 | 1 | ||
Special/contractual termination benefits | 0 | 0 | ||
Net postretirement cost/(benefit) | (13) | (12) | (39) | (60) |
Non-U.S. Plans | Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2 | 3 | 5 | 10 |
Interest cost | 17 | 9 | 50 | 28 |
Expected return on plan assets | (23) | (17) | (66) | (53) |
Amortization of postemployment benefit plans prior service costs/(credits) | 1 | 1 | 1 | 1 |
Amortization of unrecognized losses/(gains) | 4 | 0 | 10 | 1 |
Settlements | 0 | 0 | ||
Special/contractual termination benefits | 2 | 0 | ||
Net postretirement cost/(benefit) | $ 1 | $ (4) | $ 2 | $ (13) |
Postemployment Benefits - Addit
Postemployment Benefits - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Pension Plans | Non-U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | $ 9,000,000 |
Estimated future employer contributions | 1,000,000 |
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 | 9,000,000 |
Estimated future employer contributions | $ 3,000,000 |
Postemployment Benefits - Postr
Postemployment Benefits - Postretirement Benefit Plans Net Cost/(Benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Amortization of postemployment benefit plans prior service costs/(credits) | $ (3) | $ (4) | $ (10) | $ (11) |
Postretirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 1 | 2 | 3 |
Interest cost | 10 | 9 | 28 | 19 |
Expected return on plan assets | (14) | (13) | (41) | (40) |
Amortization of postemployment benefit plans prior service costs/(credits) | (4) | (5) | (11) | (12) |
Amortization of unrecognized losses/(gains) | (3) | (3) | (11) | (12) |
Net postretirement cost/(benefit) | $ (10) | $ (11) | $ (33) | $ (42) |
Financial Instruments - Schedul
Financial Instruments - Schedule of Notional Values of Outstanding Derivatives (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Commodity contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 855 | $ 1,166 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 2,792 | 3,139 |
Cross-currency contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 6,099 | $ 6,336 |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Derivative Fair Values (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives Fair Value [Line Items] | ||
Assets | $ 299 | $ 342 |
Liabilities | 172 | 294 |
Foreign exchange contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 25 | 40 |
Liabilities | 11 | 10 |
Foreign exchange contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 19 | 33 |
Liabilities | 23 | 25 |
Cross-currency contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 209 | 236 |
Liabilities | 102 | 183 |
Commodity contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 46 | 33 |
Liabilities | 36 | 76 |
Level 1 | ||
Derivatives Fair Value [Line Items] | ||
Assets | 44 | 33 |
Liabilities | 34 | 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 | Commodity contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 44 | 33 |
Liabilities | 34 | 61 |
Level 2 | ||
Derivatives Fair Value [Line Items] | ||
Assets | 255 | 309 |
Liabilities | 138 | 233 |
Level 2 | Foreign exchange contracts | Other current assets | ||
Derivatives Fair Value [Line Items] | ||
Assets | 40 | 70 |
Level 2 | Foreign exchange contracts | Other non-current assets | ||
Derivatives Fair Value [Line Items] | ||
Assets | 4 | 3 |
Level 2 | Foreign exchange contracts | Other current liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liabilities | 32 | 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 | 25 | 40 |
Liabilities | 11 | 10 |
Level 2 | Foreign exchange contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 19 | 33 |
Liabilities | 23 | 25 |
Level 2 | Cross-currency contracts | Other current assets | ||
Derivatives Fair Value [Line Items] | ||
Assets | 139 | 132 |
Level 2 | Cross-currency contracts | Other non-current assets | ||
Derivatives Fair Value [Line Items] | ||
Assets | 70 | 104 |
Level 2 | Cross-currency contracts | Other current liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liabilities | 37 | 59 |
Level 2 | Cross-currency contracts | Other non-current liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liabilities | 65 | 124 |
Level 2 | Cross-currency contracts | Designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 209 | 236 |
Liabilities | 102 | 183 |
Level 2 | Commodity contracts | Not designated as hedging instrument | ||
Derivatives Fair Value [Line Items] | ||
Assets | 2 | 0 |
Liabilities | $ 2 | $ 15 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) € in Millions, £ in Millions, $ in Millions, ¥ in Billions, $ in Billions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2023 USD ($) | Sep. 24, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 24, 2022 USD ($) | Sep. 30, 2023 EUR (€) | Sep. 30, 2023 GBP (£) | Sep. 30, 2023 CAD ($) | Sep. 30, 2023 JPY (¥) | Dec. 31, 2022 USD ($) | |
Derivative [Line Items] | |||||||||
Derivative, collateral, obligation to return cash | $ 132 | $ 132 | $ 222 | ||||||
Derivative, collateral, right to reclaim cash | 132 | 132 | 222 | ||||||
Collateral posted related to commodity derivative margin requirements, asset | $ 43 | ||||||||
Collateral posted related to commodity derivative margin requirements, liability | (20) | $ (20) | |||||||
Cross-currency contracts | |||||||||
Derivative [Line Items] | |||||||||
Maximum length of time hedged in cash flow hedge | 56 months | ||||||||
Foreign exchange contracts | |||||||||
Derivative [Line Items] | |||||||||
Maximum length of time hedged in cash flow hedge | 28 months | ||||||||
Designated as hedging instrument | Debt | Net Investment Hedging | |||||||||
Derivative [Line Items] | |||||||||
Non-derivative instruments, loss (gain) recognized in other comprehensive income (loss), net | 44 | $ 129 | $ 12 | $ 230 | |||||
Designated as hedging instrument | Debt | Euro Member Countries, Euro | Net Investment Hedging | |||||||||
Derivative [Line Items] | |||||||||
Derivative, amount of hedged item | € | € 600 | ||||||||
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 | 2,000 | 2,000 | € 1,800 | ||||||
Designated as hedging instrument | Cross-currency contracts | Canada, Dollars | Net Investment Hedging | |||||||||
Derivative [Line Items] | |||||||||
Derivative liability, notional amount | 1,000 | 1,000 | $ 1.4 | ||||||
Designated as hedging instrument | Cross-currency contracts | Japan, Yen | Net Investment Hedging | |||||||||
Derivative [Line Items] | |||||||||
Derivative asset, notional amount | 68 | 68 | ¥ 9.6 | ||||||
Designated as hedging instrument | Cross-currency contracts | China, Yuan Renminbi | Net Investment Hedging | |||||||||
Derivative [Line Items] | |||||||||
Derivative liability, notional amount | 68 | 68 | ¥ 0.5 | ||||||
Designated as hedging instrument | Other contract | Euro Member Countries, Euro | Net Investment Hedging | |||||||||
Derivative [Line Items] | |||||||||
Derivative, amount of hedged item | $ 106 | $ 106 | |||||||
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Derivative [Line Items] | ||||
Other comprehensive income (loss), derivatives, gain (loss), before reclassification and tax | $ 100 | $ 241 | $ 61 | $ 395 |
Cash Flow Hedging | Net sales | Foreign exchange contracts | ||||
Derivative [Line Items] | ||||
Gains/(losses) recognized in other comprehensive income (loss) on cash flow hedges, before tax | 0 | 0 | 0 | 1 |
Cash Flow Hedging | Cost of products sold | Foreign exchange contracts | ||||
Derivative [Line Items] | ||||
Gains/(losses) recognized in other comprehensive income (loss) on cash flow hedges, before tax | 29 | 38 | 11 | 44 |
Amounts excluded from the effectiveness assessment of cash flow hedges, before tax | (3) | (8) | (6) | (13) |
Cash Flow Hedging | SG&A | Foreign exchange contracts | ||||
Derivative [Line Items] | ||||
Gains/(losses) recognized in other comprehensive income (loss) on cash flow hedges, before tax | 0 | 2 | 0 | 3 |
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 | (14) | (99) | 20 | (208) |
Amounts excluded from the effectiveness assessment of cash flow hedges, before tax | 7 | 8 | 20 | 22 |
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 | (7) | (9) | (20) | (23) |
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 | 0 | 0 | (3) | 0 |
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 | 11 | 4 | 23 |
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 | 77 | 287 | 7 | 512 |
Net Investment Hedging | Interest expense | Foreign exchange contracts | ||||
Derivative [Line Items] | ||||
Amounts excluded from the effectiveness assessment of net investment hedges, before tax | 0 | 0 | 1 | (1) |
Net Investment Hedging | Interest expense | Cross-currency contracts | ||||
Derivative [Line Items] | ||||
Amounts excluded from the effectiveness assessment of net investment hedges, before tax | $ 10 | $ 11 | $ 27 | $ 35 |
Financial Instruments - Deriv_2
Financial Instruments - Derivative Impact on Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Total amounts presented in the condensed consolidated statements of income in which the following effects were recorded | ||||
Cost of products sold | $ 4,335 | $ 4,662 | $ 13,171 | $ 13,346 |
Selling, general and administrative expenses | 1,582 | 1,092 | 3,337 | 3,350 |
Interest expense | 228 | 228 | 683 | 704 |
Other expense/(income) | (35) | (22) | (94) | (211) |
Cost of products sold | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 29 | (57) | (31) | 81 |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 29 | (57) | (31) | 81 |
Cost of products sold | Foreign exchange contracts | Not designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Cost of products sold | Cross-currency contracts | Not designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Cost of products sold | Commodity contracts | Not designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 24 | (56) | (50) | 92 |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 24 | (56) | (50) | 92 |
SG&A | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 2 | 2 | ||
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 2 | 2 | ||
SG&A | Foreign exchange contracts | Not designated as hedging instrument | ||||
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 | ||
SG&A | Cross-currency contracts | Not designated as hedging instrument | ||||
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 | ||
SG&A | Commodity contracts | Not designated as hedging instrument | ||||
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 | ||
Interest expense | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 2 | 2 | 6 | 6 |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 2 | 2 | 6 | 6 |
Interest expense | Foreign exchange contracts | Not designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Interest expense | Cross-currency contracts | Not designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Interest expense | Commodity contracts | Not designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Other expense/(income) | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | (30) | (134) | 8 | (195) |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | (30) | (134) | 8 | (195) |
Other expense/(income) | Foreign exchange contracts | Not designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | (5) | (50) | (12) | (47) |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | (5) | (50) | (12) | (47) |
Other expense/(income) | Cross-currency contracts | Not designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | (1) | (2) | 2 | 0 |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | (1) | (2) | 2 | 0 |
Other expense/(income) | Commodity contracts | Not designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Cash Flow Hedging | Cost of products sold | Foreign exchange contracts | Designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 8 | 1 | 27 | (6) |
Net gain/(loss) on derivatives, excluded component, reclassified to net income | (3) | (2) | (8) | (5) |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 8 | 1 | 27 | (6) |
Cash Flow Hedging | Cost of products sold | Interest rate contracts | Designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Cash Flow Hedging | Cost of products sold | Cross-currency contracts | Designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 0 | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Cash Flow Hedging | SG&A | Foreign exchange contracts | Designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 2 | 2 | ||
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 | 2 | 2 | ||
Cash Flow Hedging | SG&A | Interest rate contracts | Designated as hedging instrument | ||||
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 | SG&A | Cross-currency contracts | Designated as hedging instrument | ||||
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 | Interest expense | Foreign exchange contracts | Designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 0 | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Cash Flow Hedging | Interest expense | Interest rate contracts | Designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | (1) | 0 | (1) |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | (1) | 0 | (1) |
Cash Flow Hedging | Interest expense | Cross-currency contracts | Designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | (8) | (8) | (21) | (23) |
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 0 | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | (8) | (8) | (21) | (23) |
Cash Flow Hedging | Other expense/(income) | Foreign exchange contracts | Designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 0 | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Cash Flow Hedging | Other expense/(income) | Interest rate contracts | Designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | 0 | 0 | 0 | 0 |
Cash Flow Hedging | Other expense/(income) | Cross-currency contracts | Designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | (31) | (90) | (2) | (170) |
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 7 | 8 | 20 | 22 |
Derivatives not designated as hedging instruments: | ||||
Net gains/(losses) on derivatives, reclassified to net income | (31) | (90) | (2) | (170) |
Net Investment Hedging | Cost of products sold | Foreign exchange contracts | Designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 0 | 0 | 0 | 0 |
Net Investment Hedging | Cost of products sold | Cross-currency contracts | Designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 0 | 0 | 0 | 0 |
Net Investment Hedging | SG&A | Foreign exchange contracts | Designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 0 | 0 | ||
Net Investment Hedging | SG&A | Cross-currency contracts | Designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 0 | 0 | ||
Net Investment Hedging | Interest expense | Foreign exchange contracts | Designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 1 | 0 | 1 | (1) |
Net Investment Hedging | Interest expense | Cross-currency contracts | Designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 9 | 11 | 26 | 31 |
Net Investment Hedging | Other expense/(income) | Foreign exchange contracts | Designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gain/(loss) on derivatives, excluded component, reclassified to net income | 0 | 0 | 0 | 0 |
Net Investment Hedging | Other expense/(income) | Cross-currency contracts | Designated as hedging instrument | ||||
Derivatives designated as hedging instruments: | ||||
Net gain/(loss) on derivatives, excluded component, reclassified to net income | $ 0 | $ 0 | $ 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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 48,678 | |||
Total other comprehensive income/(loss) | (53) | |||
Ending balance | $ 49,276 | 49,276 | ||
Foreign currency translation adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (2,845) | |||
Other comprehensive income/(loss) before reclassifications | (352) | $ (815) | (62) | $ (1,494) |
Total other comprehensive income/(loss) | (45) | |||
Ending balance | (2,890) | (2,890) | ||
Net investment hedge adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Other comprehensive income/(loss) before reclassifications | 92 | 324 | 17 | 581 |
Amounts excluded from effectiveness assessment | 7 | 8 | 21 | 26 |
Reclassifications from AOCI | (8) | (10) | (21) | (23) |
Net postemployment benefit plan adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (30) | |||
Other comprehensive income/(loss) before reclassifications | 0 | (117) | 0 | (260) |
Reclassifications from AOCI | (1) | (4) | (8) | (15) |
Total other comprehensive income/(loss) | (8) | |||
Ending balance | (38) | (38) | ||
Net cash flow hedge adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 65 | |||
Other comprehensive income/(loss) before reclassifications | 14 | (29) | 5 | (101) |
Amounts excluded from effectiveness assessment | 3 | 1 | 13 | 9 |
Reclassifications from AOCI | 13 | $ 48 | (18) | $ 97 |
Total other comprehensive income/(loss) | 0 | |||
Ending balance | 65 | 65 | ||
AOCI Attributable to Parent | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (2,810) | |||
Ending balance | $ (2,863) | $ (2,863) |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Foreign currency translation adjustments | ||||
OCI Before Reclassifications | ||||
Before Tax Amount | $ (352) | $ (815) | $ (62) | $ (1,494) |
Tax | 0 | 0 | 0 | 0 |
Net of Tax Amount | (352) | (815) | (62) | (1,494) |
Net investment hedge adjustments | ||||
OCI Before Reclassifications | ||||
Before Tax Amount | 122 | 427 | 23 | 765 |
Tax | (30) | (103) | (6) | (184) |
Net of Tax Amount | 92 | 324 | 17 | 581 |
Amounts Excluded from Effectiveness Assessment | ||||
Before Tax Amount | 10 | 11 | 28 | 34 |
Tax | (3) | (3) | (7) | (8) |
Net of Tax Amount | 7 | 8 | 21 | 26 |
Reclassifications | ||||
Before Tax Amount | (10) | (11) | (27) | (30) |
Tax | 2 | 1 | 6 | 7 |
Net of Tax Amount | (8) | (10) | (21) | (23) |
Net cash flow hedge adjustments | ||||
OCI Before Reclassifications | ||||
Before Tax Amount | 8 | (68) | 8 | (183) |
Tax | 6 | 39 | (3) | 82 |
Net of Tax Amount | 14 | (29) | 5 | (101) |
Amounts Excluded from Effectiveness Assessment | ||||
Before Tax Amount | 4 | 0 | 14 | 9 |
Tax | (1) | 1 | (1) | 0 |
Net of Tax Amount | 3 | 1 | 13 | 9 |
Reclassifications | ||||
Before Tax Amount | 27 | 90 | (16) | 181 |
Tax | (14) | (42) | (2) | (84) |
Net of Tax Amount | 13 | 48 | (18) | 97 |
Net postemployment benefit plan adjustments | ||||
OCI Before Reclassifications | ||||
Before Tax Amount | 0 | (154) | 0 | (345) |
Tax | 0 | 37 | 0 | 85 |
Net of Tax Amount | 0 | (117) | 0 | (260) |
Reclassifications | ||||
Before Tax Amount | (2) | (6) | (11) | (22) |
Tax | 1 | 2 | 3 | 7 |
Net of Tax Amount | $ (1) | $ (4) | $ (8) | $ (15) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income/(Losses) - Amounts Reclassified from Accumulated Other Comprehensive Income/(Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | ||||
Interest expense | $ 228 | $ 228 | $ 683 | $ 704 |
Cost of products sold | 4,335 | 4,662 | 13,171 | 13,346 |
Selling, general and administrative expenses | 1,582 | 1,092 | 3,337 | 3,350 |
Other expense/(income) | (35) | (22) | (94) | (211) |
Income/(loss) before income taxes | 460 | 545 | 2,683 | 1,915 |
Provision for/(benefit from) income taxes | 206 | 110 | 594 | 434 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (254) | (435) | (2,089) | (1,481) |
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 | (1) | 0 | (1) | 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 | (9) | (11) | (26) | (31) |
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 | (5) | 1 | (19) | 11 |
Selling, general and administrative expenses | 0 | (2) | 0 | (2) |
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 | 8 | 8 | 21 | 23 |
Other expense/(income) | 24 | 82 | (18) | 148 |
Reclassification out of Accumulated Other Comprehensive Income | Net cash flow hedge adjustments | Interest rate contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | ||||
Interest expense | 0 | 1 | 0 | 1 |
Reclassification out of Accumulated Other Comprehensive Income | Hedge adjustments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | ||||
Income/(loss) before income taxes | (17) | (79) | 43 | (151) |
Provision for/(benefit from) income taxes | (12) | (41) | 4 | (77) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 5 | 38 | (39) | 74 |
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 | 2 | 6 | 11 | 22 |
Provision for/(benefit from) income taxes | 1 | 2 | 3 | 7 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (1) | (4) | (8) | (15) |
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) | 1 | (3) | (1) | (11) |
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) | (10) | (11) |
Reclassification out of Accumulated Other Comprehensive Income | Settlement and curtailment losses/(gains) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income/(Losses) [Line Items] | ||||
Other expense/(income) | $ 0 | $ 1 | $ 0 | $ 0 |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 24, 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 | $ 40 | $ 40 | $ 87 | |
Accounts Receivable, Sale | $ 242 | $ 863 | ||
Cash proceeds received for assets derecognized, amount | $ 0 | |||
Minimum | ||||
Assets that Continue to be Recognized, Securitized or Asset-Backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||||
Supplier payment term | 0 days | 0 days | ||
Maximum | ||||
Assets that Continue to be Recognized, Securitized or Asset-Backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||||
Supplier payment term | 200 days | 200 days | ||
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 program, amount outstanding | $ 800 | $ 800 | $ 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) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Jun. 30, 2023 EUR (€) | Aug. 27, 2022 USD ($) | Jun. 25, 2022 USD ($) | Mar. 26, 2022 USD ($) | Sep. 24, 2022 USD ($) | Jun. 25, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 24, 2022 USD ($) | Jun. 30, 2023 USD ($) | May 09, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Jul. 08, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||||||||
Repayments of long-term debt | $ 823 | $ 1,157 | ||||||||||
Gain (Loss) on Extinguishment of Debt | 0 | 12 | ||||||||||
Debt prepayment and extinguishment costs | 0 | 17 | ||||||||||
Fair value of total debt | 18,000 | $ 18,700 | ||||||||||
Carrying value of total debt | $ 19,900 | $ 20,100 | ||||||||||
Construction in progress | $ 400 | |||||||||||
Lessee, lease term | 5 years | |||||||||||
Construction in progress, residual value guarantee, percentage | 0.85 | |||||||||||
2022 Repurchases, Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Gain (Loss) on Extinguishment of Debt | 12 | |||||||||||
Write off of deferred debt issuance costs | 1 | |||||||||||
Q2 2022 Repurchases, Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Gain (Loss) on Extinguishment of Debt | $ 9 | |||||||||||
Debt prepayment and extinguishment costs | 17 | |||||||||||
Write off of unamortized debt premiums | 30 | |||||||||||
Q3 2022 Repurchases, Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Gain (Loss) on Extinguishment of Debt | $ 3 | |||||||||||
Senior Notes | 2022 Repurchases, Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount repurchased | $ 448 | |||||||||||
Senior Notes | Q2 2022 Repurchases, Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount repurchased | $ 268 | |||||||||||
Senior Notes | Q3 2022 Repurchases, Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount repurchased | $ 180 | |||||||||||
Senior Notes | Senior Notes due May 2025 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding aggregate principal amount | € | € 600 | |||||||||||
Senior Notes | Senior Notes Due June 2023 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of long-term debt | € | € 750 | |||||||||||
Senior Notes | Senior Notes Due February 2040 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 6.50% | 6.50% | ||||||||||
Senior Notes | Senior Notes Due February 2040 | 2022 Repurchases, Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount repurchased | $ 133 | |||||||||||
Senior Notes | Senior Notes Due July 2045 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 5.20% | 5.20% | ||||||||||
Senior Notes | Senior Notes Due July 2045 | Q2 2022 Repurchases, Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount repurchased | $ 70 | |||||||||||
Senior Notes | Senior Notes Due August 2039 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 7.125% | 7.125% | ||||||||||
Senior Notes | Senior Notes Due August 2039 | 2022 Repurchases, Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount repurchased | $ 63 | |||||||||||
Senior Notes | Senior Notes Due June 2042 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 5% | 5% | ||||||||||
Senior Notes | Senior Notes Due June 2042 | Q2 2022 Repurchases, Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount repurchased | $ 61 | |||||||||||
Senior Notes | Senior Notes Due October 2049 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 4.875% | 4.875% | ||||||||||
Senior Notes | Senior Notes Due October 2049 | 2022 Repurchases, Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount repurchased | $ 34 | |||||||||||
Senior Notes | Senior Notes Due July 2035 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 5% | 5% | ||||||||||
Senior Notes | Senior Notes Due July 2035 | 2022 Repurchases, Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount repurchased | $ 29 | |||||||||||
Senior Notes | Senior Notes Due January 2039 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 6.875% | 6.875% | ||||||||||
Senior Notes | Senior Notes Due January 2039 | 2022 Repurchases, Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount repurchased | $ 29 | |||||||||||
Senior Notes | Senior Notes Due July 2028 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 6.375% | 6.375% | ||||||||||
Senior Notes | Senior Notes Due July 2028 | 2022 Repurchases, Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount repurchased | $ 14 | |||||||||||
Senior Notes | Senior Notes Due June 2050 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 5.50% | 5.50% | ||||||||||
Senior Notes | Senior Notes Due June 2050 | 2022 Repurchases, Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount repurchased | $ 9 | |||||||||||
Senior Notes | Senior Notes Due October 2039 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 4.625% | 4.625% | ||||||||||
Senior Notes | Senior Notes Due October 2039 | 2022 Repurchases, Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount repurchased | $ 4 | |||||||||||
Senior Notes | Senior Notes Due January 2029 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 4.625% | 4.625% | ||||||||||
Senior Notes | Senior Notes Due January 2029 | 2022 Repurchases, Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount repurchased | $ 2 | |||||||||||
Senior Notes | Senior Notes Due August 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of long-term debt | $ 315 | |||||||||||
Senior Notes | Senior Notes Due June 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of long-term debt | $ 381 | |||||||||||
Senior Notes | Senior notes due in March 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of long-term debt | $ 6 | |||||||||||
Senior unsecured revolving credit facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | $ 4,000 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Basic EPS | ||||
Net income/(loss) attributable to common shareholders | $ 262 | $ 432 | $ 2,098 | $ 1,473 |
Weighted average shares of common stock outstanding (in shares) | 1,229 | 1,227 | 1,228 | 1,226 |
Basic earnings/(loss) per common share (in dollars per share) | $ 0.21 | $ 0.35 | $ 1.71 | $ 1.20 |
Diluted EPS | ||||
Net income/(loss) attributable to common shareholders | $ 262 | $ 432 | $ 2,098 | $ 1,473 |
Weighted average shares of common stock outstanding (in shares) | 1,229 | 1,227 | 1,228 | 1,226 |
Effect of dilutive equity awards (in shares) | 6 | 8 | 7 | 9 |
Weighted average shares of common stock outstanding, including dilutive effect (in shares) | 1,235 | 1,235 | 1,235 | 1,235 |
Diluted earnings/(loss) per common share (in dollars per share) | $ 0.21 | $ 0.35 | $ 1.70 | $ 1.19 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive shares | 7 | 8 | 7 | 7 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | $ 6,570 | $ 6,505 | $ 19,780 | $ 19,104 |
North America | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | 4,995 | 5,016 | 14,959 | 14,656 |
International | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | $ 1,575 | $ 1,489 | $ 4,821 | $ 4,448 |
Segment Reporting - Segment Adj
Segment Reporting - Segment Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization (excluding restructuring activities) | $ (234) | $ (227) | $ (680) | $ (676) |
Divestiture-related license income | 14 | 14 | 41 | 41 |
Restructuring activities | (45) | (8) | (25) | (38) |
Deal costs | 0 | 0 | 0 | (8) |
Unrealized gains/(losses) on commodity hedges | 48 | (84) | 53 | (65) |
Impairment losses | (662) | (314) | (662) | (999) |
Certain non-ordinary course legal and regulatory matters | 0 | 0 | (2) | 0 |
Equity award compensation expense | (33) | (28) | (110) | (107) |
Operating income/(loss) | 653 | 751 | 3,272 | 2,408 |
Interest expense | 228 | 228 | 683 | 704 |
Other expense/(income) | (35) | (22) | (94) | (211) |
Income/(loss) before income taxes | 460 | 545 | 2,683 | 1,915 |
General corporate expenses | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | (84) | (58) | (255) | (207) |
North America | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | 1,390 | 1,213 | 4,108 | 3,734 |
International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | $ 259 | $ 243 | $ 804 | $ 733 |
Segment Reporting - Net Sales_2
Segment Reporting - Net Sales by Platform (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Revenue from External Customer [Line Items] | ||||
Net sales | $ 6,570 | $ 6,505 | $ 19,780 | $ 19,104 |
Taste Elevation | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 2,196 | 2,040 | 6,750 | 6,020 |
Fast Fresh Meals | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 1,418 | 1,468 | 4,197 | 4,300 |
Easy Meals Made Better | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 1,300 | 1,261 | 3,859 | 3,726 |
Real Food Snacking | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 353 | 367 | 966 | 1,023 |
Flavorful Hydration | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 486 | 516 | 1,545 | 1,527 |
Easy Indulgent Desserts | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 265 | 248 | 755 | 719 |
Other | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | $ 552 | $ 605 | $ 1,708 | $ 1,789 |
Segment Reporting - Net Sales_3
Segment Reporting - Net Sales by Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Revenue from External Customer [Line Items] | ||||
Net sales | $ 6,570 | $ 6,505 | $ 19,780 | $ 19,104 |
Condiments and sauces | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 2,171 | 2,048 | 6,730 | 6,012 |
Cheese and dairy | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 909 | 932 | 2,709 | 2,745 |
Ambient foods | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 759 | 730 | 2,197 | 2,136 |
Frozen and chilled foods | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 757 | 731 | 2,185 | 2,113 |
Meats and seafood | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 626 | 704 | 1,865 | 2,025 |
Refreshment beverages | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 485 | 516 | 1,542 | 1,530 |
Coffee | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 220 | 213 | 652 | 644 |
Infant and nutrition | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 85 | 94 | 274 | 305 |
Desserts, toppings, and baking | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 299 | 276 | 854 | 808 |
Other | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | $ 259 | $ 261 | $ 772 | $ 786 |
Other Financial Data - Schedule
Other Financial Data - Schedule of Other Expense/(Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Other Income and Expenses [Abstract] | ||||
Amortization of postemployment benefit plans prior service costs/(credits) | $ (3) | $ (4) | $ (10) | $ (11) |
Net pension and postretirement non-service cost/(benefit)(a) | (22) | (28) | (68) | (120) |
Loss/(gain) on sale of business | 0 | 0 | 2 | (1) |
Interest income | 12 | 7 | 28 | 18 |
Foreign exchange losses/(gains) | (25) | (117) | 21 | (254) |
Derivative losses/(gains) | 30 | 134 | (8) | 195 |
Other miscellaneous expense/(income) | (3) | 0 | (3) | (2) |
Other expense/(income) | $ 35 | $ 22 | $ 94 | $ 211 |
Other Financial Data - Addition
Other Financial Data - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Other Income and Expenses [Abstract] | ||||
Other expense/(income) | $ 35 | $ 22 | $ 94 | $ 211 |
Derivative losses/(gains) | 30 | 134 | (8) | 195 |
Foreign exchange losses/(gains) | $ (25) | $ (117) | 21 | $ (254) |
Increase/(Decrease) in net pension and postretirement non-service benefits | $ 52 |