On October 1, 2012, Mondelēz International, Inc. (“Mondelēz”) (then known as Kraft Foods Inc.) completed the spin-off of Kraft through a pro rata dividend of all outstanding shares of Kraft common stock to Mondelēz shareholders. On the date of this dividend, each Mondelēz shareholder received one share of Kraft common stock for every three shares of Mondelēz common stock owned on the record date for the spin-off dividend. As a result, an investor’s cost basis in Kraft common stock prior to the merger with Heinz is dependent on whether that investor acquired Kraft common stock in the spin-off.
For shareholders who acquired their Kraft common stock as a result of Kraft's spin-off from Mondelēz, please click this link for cost basis information.
For shareholders who acquired their Kraft common stock for cash after the spin-off from Mondelēz, their cost basis is generally the price paid for Kraft common stock.
The cost basis for all shareholders may be affected by the merger of Kraft and Heinz.
Please see the statements below for guidance regarding the tax consequences for Canadian shareholders as a result of the Kraft Heinz merger:
Special $16.50 dividend (Canadian shareholders)
For Canadian shareholders of the former Kraft Foods Group, Inc. (ticker: KRFT), the special cash dividend of $16.50 USD per share received as part of the merger to create The Kraft Heinz Company will be taxable in the same manner as any dividend received from a foreign corporation.
Kraft Heinz shares – Cost Basis (Canadian Shareholders)
Since the merger should qualify as a foreign merger as defined in subsections 87(8.1) and (8.2) of the Income Tax Act (Canada) (the "ITA”), it should qualify for tax-deferred treatment under ITA. The adjusted cost base of your Kraft Heinz shares will generally be the cost you incurred to acquire your Kraft Foods Group Inc. shares, thus preserving your total adjusted cost base. This tax deferral is automatic; however, a taxpayer may “opt out” by making an election in the taxpayer’s income tax return for the 2015 year to not have a tax deferral.
Canadian shareholders are urged to contact their own tax advisors for advice regarding the consequences of the merger transaction and its impact to their individual circumstances.
The Kraft Heinz Company will hold its Annual Stockholders Meeting on Wednesday, April 19, 2017 at 11 a.m. Eastern time at the Offices of Reed Smith LLP located at 225 Fifth Ave., Pittsburgh, PA 15222. We presently anticipate that our 2018 Annual Stockholders Meeting will be held on or about April 19, 2018 at a time and location to be determined.
If you would like to attend the Annual Stockholders Meeting, you must have been a stockholder of record on the applicable Record Date and you must obtain an admission ticket in advance. The Proxy Statement filed in connection with the meeting will provide information on obtaining an admission ticket.
Electronic delivery of materials
Kraft Heinz offers its stockholders electronic delivery of proxy materials, including the Annual Report on Form 10-K, Proxy Statement and related materials.
By providing your proxy materials via the Internet, we are saving on printing and postage costs and helping the environment. By choosing electronic delivery, you can help us conserve natural resources, and reduce printing and mailing costs.
Requesting electronic delivery
You may request annual meeting materials and/or register for future electronic delivery of Kraft Heinz's proxy materials by accessing the following link: www.proxyvote.com.
While the Board of Directors expects to declare and pay dividends on a regular, quarterly basis, the Company does not provide a schedule of prospective dividend payments. For a schedule of past dividend declaration, record and payment dates, please visit the Dividend History page.
Internal Revenue Service Forms 8937 (Report of Organizational Actions Affecting Basis of Securities) for The Kraft Heinz Company’s 2016 dividends can be found here for dividends paid January 1, 2016 thru July 8, 2016 and here for the dividend paid on October 7, 2016, and here for December 16, 2016