Kraft Heinz Reports Third Quarter 2023 Results
Announces Leadership and Organizational Changes
Narrows Full Year Outlook for Organic
Raises Full Year Outlook for Constant Currency Adjusted EBITDA and Adjusted EPS(1)(2)
Third Quarter Highlights
-
Net sales increased 1.0%; Organic
Net Sales (1) increased 1.7% - Gross profit margin increased 568 basis points to 34.0%; Adjusted Gross Profit Margin(1) increased 396 basis points to 34.0%
- Net income decreased 41.7%; Adjusted EBITDA(1) increased 11.9%
-
Diluted EPS was
$0.21 , down 40.0%; Adjusted EPS(1) was$0.72 , up 14.3% - Reached target Net Leverage(1) ratio of approximately 3.0x, with Net Leverage at 2.9x
“Our third quarter results were marked by net sales growth across each of our three core pillars: Foodservice, Emerging Markets, and
“We laid out a series of action plans in the beginning of the year to drive market share and volume improvement, and I’m pleased to say we saw improvement throughout the quarter as our team executed against these plans. We will remain focused on our overall strategy to drive top-line profitable growth.”
In the third quarter,
|
|
|
|
|
|
|
|
|
|
|
|
|
||
In millions |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
Organic |
||||||||||
|
|
|
|
|
|
% Chg vs
|
|
YoY Growth
|
|
Price |
|
Volume/
|
||
For the Three Months Ended |
|
|
|
|
|
|
|
|
|
|||||
|
|
$ |
4,995 |
|
$ |
5,016 |
|
(0.4)% |
|
(0.1)% |
|
5.8 pp |
|
(5.9) pp |
International |
|
|
1,575 |
|
|
1,489 |
|
5.7% |
|
8.0% |
|
11.6 pp |
|
(3.6) pp |
|
|
$ |
6,570 |
|
$ |
6,505 |
|
1.0% |
|
1.7% |
|
7.1 pp |
|
(5.4) pp |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
For the Nine Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
$ |
14,959 |
|
$ |
14,656 |
|
2.1% |
|
2.5% |
|
9.4 pp |
|
(6.9) pp |
International |
|
|
4,821 |
|
|
4,448 |
|
8.4% |
|
13.0% |
|
15.7 pp |
|
(2.7) pp |
|
|
$ |
19,780 |
|
$ |
19,104 |
|
3.5% |
|
4.9% |
|
10.8 pp |
|
(5.9) pp |
Net Income/(Loss) and Diluted EPS |
|
|
|
|
||||||||||||
In millions, except per share data |
|
|
|
|
|
|
|
|
|
|
||||||
|
|
For the Three Months Ended |
|
For the Nine Months Ended |
||||||||||||
|
|
|
|
|
|
% Chg vs
|
|
|
|
|
|
% Chg vs
|
||||
Gross profit |
|
$ |
2,235 |
|
$ |
1,843 |
|
21.2% |
|
$ |
6,609 |
|
$ |
5,758 |
|
14.8% |
Operating income/(loss) |
|
|
653 |
|
|
751 |
|
(13.1)% |
|
|
3,272 |
|
|
2,408 |
|
35.9% |
Net income/(loss) |
|
|
254 |
|
|
435 |
|
(41.7)% |
|
|
2,089 |
|
|
1,481 |
|
41.0% |
Net income/(loss) attributable to common shareholders |
|
|
262 |
|
|
432 |
|
(39.5)% |
|
|
2,098 |
|
|
1,473 |
|
42.4% |
Diluted EPS |
|
$ |
0.21 |
|
$ |
0.35 |
|
(40.0)% |
|
$ |
1.70 |
|
$ |
1.19 |
|
42.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EPS(1) |
|
|
0.72 |
|
|
0.63 |
|
14.3% |
|
|
2.20 |
|
|
1.93 |
|
14.0% |
Adjusted EBITDA(1) |
|
$ |
1,565 |
|
$ |
1,398 |
|
11.9% |
|
$ |
4,657 |
|
$ |
4,260 |
|
9.3% |
Q3 2023 Financial Summary
-
Net sales increased 1.0 percent versus the year-ago period to
$6.6 billion , including a negative 0.5 percentage point impact from foreign currency and a negative 0.2 percentage point impact from divestitures. OrganicNet Sales (1) increased 1.7 percent versus the prior year period. Price increased 7.1 percentage points versus the prior year period, with increases in both reportable segments that were primarily driven by list price increases taken to mitigate higher input costs. Volume/mix declined 5.4 percentage points versus the prior year period, with declines in both reportable segments that were primarily driven by elasticity impacts from pricing actions.
-
Net income/(loss) decreased 41.7 percent versus the year-ago period to
$254 million , primarily driven by higher non-cash impairment losses in the current year period and higher tax expenses in the current year period. These factors were partially offset by higher Adjusted EBITDA versus the prior year period and unrealized gains on commodity hedges in the current year period compared to unrealized losses on commodity hedges in the prior year period. Adjusted EBITDA(1) increased 11.9 percent versus the year-ago period to$1.6 billion , primarily driven by higher pricing and efficiency gains. These factors more than offset higher supply chain costs (reflecting inflationary pressure in manufacturing and procurement costs), unfavorable volume/mix, investments in marketing, technology, and research and development, increased commodity costs (including the impact of realized gains and losses on commodity hedges), and an unfavorable impact from foreign currency (1.0 pp).
-
Diluted EPS was
$0.21 , down 40.0 percent versus the prior year period, primarily driven by the net income/(loss) factors discussed above. Adjusted EPS(1) was$0.72 , up 14.3 percent versus the prior year period, primarily driven by higher Adjusted EBITDA and favorable changes in other expense/(income). These factors more than offset higher taxes on adjusted earnings.
-
Year-to-date net cash provided by operating activities was
$2.6 billion , up 72.8 percent versus the year-ago period. This was driven by lower cash outflows for inventories primarily related to stock rebuilding in the prior year, higher Adjusted EBITDA in the current period, and lower cash outflows for tax payments driven by taxes paid in 2022 related to the sale of certain assets in our global cheese business and the licensing of certain trademarks. These impacts were partially offset by unfavorable changes in accounts payable, due in part to lower inventory purchase volume in the current period compared to the prior year period, and cash payments associated with the settlement of the consolidated securities class action lawsuit. Year-to date Free Cash Flow(1) was$1.8 billion , up 108.2 percent versus the prior year period, driven by the same net cash provided by operating activities as discussed above. This more than offset an increase in capital expenditures in the current year.
Leadership and Organizational Changes
As part of its mission to accelerate profitable growth and to lead the future of food, the Company has named its new President of the
First,
Second, the Company is establishing global leadership teams for its Growth and Omnichannel functions. Investing in these disciplines on a global level provides the structure and support to leverage centralized expertise and resources. It also helps drive growth and disruptive innovation across the business while optimally servicing customers and consumers.
Lastly, to further drive international growth, the Company is dividing its international business into three zones. Recognizing these markets require different sets of strategies and skills, the new structure provides the necessary focus and resources to optimize growth potential.
-
Europe and Pacific Developed Markets, which will includeEurope ,Australia ,New Zealand ,Japan , andSouth Korea .
-
West and East Emerging Markets, which will include LATAM,
Eastern Europe , and theMiddle East .
-
Asia Emerging Markets, which will include its
Asia businesses outside ofJapan andSouth Korea .
In conjunction with these changes to the
“We are proud that all these appointments are internal elevations and reflect the quality of the talent and focus on people development here at Kraft Heinz,” said Abrams-Rivera. “We see the value of investing in the right structure to support our growth plans, and I am confident that these are the leaders to take
All changes will be effective at the beginning of fiscal year 2024.
Outlook
For fiscal year 2023, the Company expects:
-
Organic
Net Sales (2) growth of 4 to 6 percent versus the prior year, closer to the lower end of the range at approximately 4%.
- Constant Currency Adjusted EBITDA(1)(2) growth of 5 to 7 percent versus the prior year, or 7 to 9 percent when excluding the impact from lapping a 53rd week in 2022. This compares to the previous expectation of 4 to 6 percent Constant Currency Adjusted EBITDA growth. Adjusted Gross Profit Margin(1)(2) expansion is expected to contribute to Constant Currency Adjusted EBITDA growth. The Company now expects Adjusted Gross Profit Margin expansion of 200 to 250 basis points versus the prior year, compared to the previous expectation of 150 to 200 basis points versus the prior year. The current expectation for Adjusted Gross Profit Margin now reflects mid-single-digit inflation for the full year, as compared to the previous expectation of mid-to-high single-digit inflation for the full year, with pricing and efficiencies continuing to contribute to Adjusted Gross Profit Margin recovery.
-
Adjusted EPS(2) to be in the range of
$2.91 to$2.99 , compared to the previous range of$2.83 to$2.91 . The current range includes a negative impact of approximately$0.03 from expected unfavorable changes in non-cash pension and post-retirement benefits and a currency headwind of approximately$0.04 at current foreign exchange rates. The expected 2023 year-over-year Adjusted EPS change reflects a negative$0.06 impact from lapping a 53rd week in 2022. Additionally, the Company now expects an effective tax rate on Adjusted EPS to be in the range of 19 to 20 percent.
End Notes
(1) |
Organic |
|
(2) |
Guidance for Organic |
Earnings Discussion and Webcast Information
A pre-recorded management discussion of
ABOUT
We are driving transformation at
Forward-Looking Statements
This press release contains a number of forward-looking statements. Words such as “accelerate,” “anticipate,” “believe,” “build”, “commit,” “continue,” “expect,” “execute,” “invest,” “maintain,” “reflect,” “will,” “guidance,” and “outlook,” and variations of such words and similar future or conditional expressions are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding the Company's plans, impacts of accounting standards and guidance, growth, legal matters, taxes, costs and cost savings, impairments, dividends, expectations, investments, innovations, opportunities, capabilities, execution, initiatives, and pipeline. These forward-looking statements reflect management's current expectations and are not guarantees of future performance and are subject to a number of risks and uncertainties, many of which are difficult to predict and beyond the Company's control.
Important factors that may affect the Company's business and operations and that may cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, operating in a highly competitive industry; the Company’s ability to correctly predict, identify, and interpret changes in consumer preferences and demand, to offer new products to meet those changes, and to respond to competitive innovation; changes in the retail landscape or the loss of key retail customers; changes in the Company's relationships with significant customers or suppliers, or in other business relationships; the Company’s ability to maintain, extend, and expand its reputation and brand image; the Company’s ability to leverage its brand value to compete against private label products; the Company’s ability to drive revenue growth in its key product categories or platforms, increase its market share, or add products that are in faster-growing and more profitable categories; product recalls or other product liability claims; climate change and legal or regulatory responses; the Company’s ability to identify, complete, or realize the benefits from strategic acquisitions, divestitures, alliances, joint ventures, or investments; the Company's ability to successfully execute its strategic initiatives; the impacts of the Company's international operations; the Company's ability to protect intellectual property rights; the Company’s ability to realize the anticipated benefits from prior or future streamlining actions to reduce fixed costs, simplify or improve processes, and improve its competitiveness; the influence of the Company's largest stockholder; the Company's level of indebtedness, as well as our ability to comply with covenants under our debt instruments; additional impairments of the carrying amounts of goodwill or other indefinite-lived intangible assets; foreign exchange rate fluctuations; volatility in commodity, energy, and other input costs; volatility in the market value of all or a portion of the commodity derivatives we use; compliance with laws and regulations and related legal claims or regulatory enforcement actions; failure to maintain an effective system of internal controls; a downgrade in the Company's credit rating; the impact of sales of the Company's common stock in the public market; the Company’s ability to continue to pay a regular dividend and the amounts of any such dividends; disruptions in the global economy caused by geopolitical conflicts, including the ongoing conflict between
Non-GAAP Financial Measures
The non-GAAP financial measures provided in this press release should be viewed in addition to, and not as an alternative for, results prepared in accordance with accounting principles generally accepted in
To supplement the financial information provided, the Company has presented Organic
Management uses these non-GAAP financial measures to assist in comparing the Company’s performance on a consistent basis for purposes of business decision making by removing the impact of certain items that management believes do not directly reflect the Company’s underlying operations. The Company believes:
-
Organic
Net Sales , Adjusted EBITDA, Constant Currency Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Net Income/(Loss), and Adjusted EPS provide important comparability of underlying operating results, allowing investors and management to assess the Company’s operating performance on a consistent basis; and
- Free Cash Flow and Net Leverage provide measures of the Company’s core operating performance, the cash-generating capabilities of the Company’s business operations, and are factors used in determining the Company’s borrowing capacity and the amount of cash available for debt repayments, dividends, acquisitions, share repurchases, and other corporate purposes.
Management believes that presenting the Company’s non-GAAP financial measures is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items, (ii) permits investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating the Company’s results. The Company believes that the presentation of these non-GAAP financial measures, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provides investors with additional understanding of the factors and trends affecting the Company’s business than could be obtained absent these disclosures.
Definitions
Organic
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, the Company excludes, when they occur, the impacts of divestiture-related license income, restructuring activities, deal costs, unrealized losses/(gains) on commodity hedges, impairment losses, certain non-ordinary course legal and regulatory matters, and equity award compensation expense (excluding restructuring activities). The Company also presents Adjusted EBITDA on a constant currency basis (Constant Currency Adjusted EBITDA). The Company calculates the impact of currency on Adjusted EBITDA by holding exchange rates constant at the previous year's exchange rate, with the exception of highly inflationary subsidiaries, for which it calculates the previous year's results using the current year's exchange rate.
Adjusted Gross Profit, Adjusted Net Income/(Loss), and Adjusted EPS are defined as gross profit, net income/(loss), and diluted earnings per share, respectively, excluding, when they occur, the impacts of restructuring activities, deal costs, unrealized losses/(gains) on commodity hedges, impairment losses, certain non-ordinary course legal and regulatory matters, losses/(gains) on the sale of a business, other losses/(gains) related to acquisitions and divestitures (e.g., tax and hedging impacts), nonmonetary currency devaluation (e.g., remeasurement gains and losses), debt prepayment and extinguishment (benefit)/costs, and certain significant discrete income tax items (e.g.,
Net Leverage is defined as debt less cash, cash equivalents and short-term investments divided by Adjusted EBITDA.
Free Cash Flow is defined as net cash provided by/(used for) operating activities less capital expenditures. The use of this non-GAAP measure does not imply or represent the residual cash flow for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure.
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
Schedule 1 |
||||
Condensed Consolidated Statements of Income (in millions, except per share data) (Unaudited) |
|||||||||||
|
For the Three Months Ended |
|
For the Nine Months Ended |
||||||||
|
|
|
|
|
|
|
|
||||
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 |
|
|
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 |
|
|
|
|
|
|
|
|
||||
Basic shares outstanding |
|
1,229 |
|
|
1,227 |
|
|
1,228 |
|
|
1,226 |
Diluted shares outstanding |
|
1,235 |
|
|
1,235 |
|
|
1,235 |
|
|
1,235 |
|
|
|
|
|
|
|
|
||||
Per share data applicable to common shareholders: |
|
|
|
|
|
|
|
||||
Basic earnings/(loss) per share |
$ |
0.21 |
|
$ |
0.35 |
|
$ |
1.71 |
|
$ |
1.20 |
Diluted earnings/(loss) per share |
|
0.21 |
|
|
0.35 |
|
|
1.70 |
|
|
1.19 |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
Schedule 2 |
||||||
Reconciliation of For the Three Months Ended (dollars in millions) (Unaudited) |
|||||||||||||||
|
|
|
Currency |
|
Acquisitions and Divestitures |
|
Organic |
|
Price |
|
Volume/Mix |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
4,995 |
|
$ |
(14) |
|
$ |
— |
|
$ |
5,009 |
|
|
|
|
International |
|
1,575 |
|
|
2 |
|
|
— |
|
|
1,573 |
|
|
|
|
|
$ |
6,570 |
|
$ |
(12) |
|
$ |
— |
|
$ |
6,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
5,016 |
|
$ |
— |
|
$ |
— |
|
$ |
5,016 |
|
|
|
|
International |
|
1,489 |
|
|
21 |
|
|
12 |
|
|
1,456 |
|
|
|
|
|
$ |
6,505 |
|
$ |
21 |
|
$ |
12 |
|
$ |
6,472 |
|
|
|
|
Year-over-year growth rates |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
(0.4)% |
|
(0.3) pp |
|
0.0 pp |
|
|
(0.1)% |
|
5.8 pp |
|
(5.9) pp |
||
International |
|
5.7% |
|
(1.5) pp |
|
(0.8) pp |
|
|
8.0% |
|
11.6 pp |
|
(3.6) pp |
||
|
|
1.0% |
|
(0.5) pp |
|
(0.2) pp |
|
|
1.7% |
|
7.1 pp |
|
(5.4) pp |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
Schedule 3 |
||||||
Reconciliation of For the Nine Months Ended (dollars in millions) (Unaudited) |
|||||||||||||||
|
|
|
Currency |
|
Acquisitions and Divestitures |
|
Organic |
|
Price |
|
Volume/Mix |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
14,959 |
|
$ |
(64) |
|
$ |
— |
|
$ |
15,023 |
|
|
|
|
International |
|
4,821 |
|
|
(116) |
|
|
34 |
|
|
4,903 |
|
|
|
|
|
$ |
19,780 |
|
$ |
(180) |
|
$ |
34 |
|
$ |
19,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
14,656 |
|
$ |
— |
|
$ |
— |
|
$ |
14,656 |
|
|
|
|
International |
|
4,448 |
|
|
57 |
|
|
53 |
|
|
4,338 |
|
|
|
|
|
$ |
19,104 |
|
$ |
57 |
|
$ |
53 |
|
$ |
18,994 |
|
|
|
|
Year-over-year growth rates |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
2.1% |
|
(0.4) pp |
|
0.0 pp |
|
|
2.5% |
|
9.4 pp |
|
(6.9) pp |
||
International |
|
8.4% |
|
(4.1) pp |
|
(0.5) pp |
|
|
13.0% |
|
15.7 pp |
|
(2.7) pp |
||
|
|
3.5% |
|
(1.3) pp |
|
(0.1) pp |
|
|
4.9% |
|
10.8 pp |
|
(5.9) pp |
|
|
|
|
||||||||
|
|
|
|
|
Schedule 4 |
||||||
Reconciliation of Net Income/(Loss) to Adjusted EBITDA (dollars in millions) (Unaudited) |
|||||||||||
|
For the Three Months Ended |
|
For the Nine Months Ended |
||||||||
|
|
|
|
|
|
|
|
||||
Net income/(loss) |
$ |
254 |
|
$ |
435 |
|
$ |
2,089 |
|
$ |
1,481 |
Interest expense |
|
228 |
|
|
228 |
|
|
683 |
|
|
704 |
Other expense/(income) |
|
(35) |
|
|
(22) |
|
|
(94) |
|
|
(211) |
Provision for/(benefit from) income taxes |
|
206 |
|
|
110 |
|
|
594 |
|
|
434 |
Operating income/(loss) |
|
653 |
|
|
751 |
|
|
3,272 |
|
|
2,408 |
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 losses/(gains) 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 |
Adjusted EBITDA |
$ |
1,565 |
|
$ |
1,398 |
|
$ |
4,657 |
|
$ |
4,260 |
|
|
|
|
|
|
|
|
||||
Segment Adjusted EBITDA: |
|
|
|
|
|
|
|
||||
|
$ |
1,390 |
|
$ |
1,213 |
|
$ |
4,108 |
|
$ |
3,734 |
International |
|
259 |
|
|
243 |
|
|
804 |
|
|
733 |
General corporate expenses |
|
(84) |
|
|
(58) |
|
|
(255) |
|
|
(207) |
Adjusted EBITDA |
$ |
1,565 |
|
$ |
1,398 |
|
$ |
4,657 |
|
$ |
4,260 |
|
|
|
|
|||||
|
|
|
|
|
Schedule 5 |
|||
Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA For the Three Months Ended (dollars in millions) (Unaudited) |
||||||||
|
Adjusted EBITDA |
|
Currency |
|
Constant Currency Adjusted EBITDA |
|||
|
|
|
|
|
|
|||
|
$ |
1,390 |
|
$ |
(3) |
|
$ |
1,393 |
International |
|
259 |
|
|
(4) |
|
|
263 |
General corporate expenses |
|
(84) |
|
|
(1) |
|
|
(83) |
|
$ |
1,565 |
|
$ |
(8) |
|
$ |
1,573 |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|||
|
$ |
1,213 |
|
$ |
— |
|
$ |
1,213 |
International |
|
243 |
|
|
4 |
|
|
239 |
General corporate expenses |
|
(58) |
|
|
— |
|
|
(58) |
|
$ |
1,398 |
|
$ |
4 |
|
$ |
1,394 |
Year-over-year growth rates |
|
|
|
|
|
|||
|
|
14.6% |
|
(0.3) pp |
|
|
14.9% |
|
International |
|
6.8% |
|
(3.4) pp |
|
|
10.2% |
|
General corporate expenses |
|
46.2% |
|
2.4 pp |
|
|
43.8% |
|
|
|
11.9% |
|
(1.0) pp |
|
|
12.9% |
|
|
|
|
|||||
|
|
|
|
|
Schedule 6 |
|||
Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA For the Nine Months Ended (dollars in millions) (Unaudited) |
||||||||
|
Adjusted EBITDA |
|
Currency |
|
Constant Currency Adjusted EBITDA |
|||
|
|
|
|
|
|
|||
|
$ |
4,108 |
|
$ |
(13) |
|
$ |
4,121 |
International |
|
804 |
|
|
(28) |
|
|
832 |
General corporate expenses |
|
(255) |
|
|
— |
|
|
(255) |
|
$ |
4,657 |
|
$ |
(41) |
|
$ |
4,698 |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|||
|
$ |
3,734 |
|
$ |
— |
|
$ |
3,734 |
International |
|
733 |
|
|
11 |
|
|
722 |
General corporate expenses |
|
(207) |
|
|
— |
|
|
(207) |
|
$ |
4,260 |
|
$ |
11 |
|
$ |
4,249 |
Year-over-year growth rates |
|
|
|
|
|
|||
|
|
10.0% |
|
(0.4) pp |
|
|
10.4% |
|
International |
|
9.7% |
|
(5.5) pp |
|
|
15.2% |
|
General corporate expenses |
|
23.3% |
|
0.1 pp |
|
|
23.2% |
|
|
|
9.3% |
|
(1.3) pp |
|
|
10.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 7 |
|||||||||||||
Reconciliation of GAAP Results to Non-GAAP Results (dollars in millions) (Unaudited) |
||||||||||||||||||||||||||||||||
|
For the Three Months Ended |
|||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
|
Gross profit |
|
Selling, general and administrative expenses |
|
Operating income/(loss) |
|
Interest expense |
|
Other expense/(income) |
|
Income/(loss) before income taxes |
|
Provision for/(benefit from) income taxes |
|
Net income/(loss) |
|
Net income/(loss) attributable to noncontrolling interest |
|
Net income/(loss) attributable to common shareholders |
|
Diluted EPS |
|||||||||||
GAAP Results |
$ |
2,235 |
|
$ |
1,582 |
|
$ |
653 |
|
$ |
228 |
|
$ |
(35) |
|
$ |
460 |
|
$ |
206 |
|
$ |
254 |
|
$ |
(8) |
|
$ |
262 |
|
$ |
0.21 |
Items Affecting Comparability |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Restructuring activities |
|
44 |
|
|
(1) |
|
|
45 |
|
|
— |
|
|
— |
|
|
45 |
|
|
8 |
|
|
37 |
|
|
— |
|
|
37 |
|
|
0.03 |
Unrealized losses/(gains) on commodity hedges |
|
(48) |
|
|
— |
|
|
(48) |
|
|
— |
|
|
— |
|
|
(48) |
|
|
(12) |
|
|
(36) |
|
|
— |
|
|
(36) |
|
|
(0.03) |
Impairment losses |
|
— |
|
|
(662) |
|
|
662 |
|
|
— |
|
|
— |
|
|
662 |
|
|
36 |
|
|
626 |
|
|
6 |
|
|
620 |
|
|
0.50 |
Nonmonetary currency devaluation |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(9) |
|
|
9 |
|
|
— |
|
|
9 |
|
|
— |
|
|
9 |
|
|
0.01 |
Adjusted Non-GAAP Results |
$ |
2,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
890 |
|
|
|
|
|
$ |
0.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 8 |
|||||||||||||
Reconciliation of GAAP Results to Non-GAAP Results (dollars in millions) (Unaudited) |
||||||||||||||||||||||||||||||||
|
For the Three Months Ended |
|||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
|
Gross profit |
|
Selling, general and administrative expenses |
|
Operating income/(loss) |
|
Interest expense |
|
Other expense/(income) |
|
Income/(loss) before income taxes |
|
Provision for/(benefit from) income taxes |
|
Net income/(loss) |
|
Net income/(loss) attributable to noncontrolling interest |
|
Net income/(loss) attributable to common shareholders |
|
Diluted EPS |
|||||||||||
GAAP Results |
$ |
1,843 |
|
$ |
1,092 |
|
$ |
751 |
|
$ |
228 |
|
$ |
(22) |
|
$ |
545 |
|
$ |
110 |
|
$ |
435 |
|
$ |
3 |
|
$ |
432 |
|
$ |
0.35 |
Items Affecting Comparability |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Restructuring activities |
|
5 |
|
|
(3) |
|
|
8 |
|
|
— |
|
|
1 |
|
|
7 |
|
|
1 |
|
|
6 |
|
|
— |
|
|
6 |
|
|
0.01 |
Unrealized losses/(gains) on commodity hedges |
|
84 |
|
|
— |
|
|
84 |
|
|
— |
|
|
— |
|
|
84 |
|
|
21 |
|
|
63 |
|
|
— |
|
|
63 |
|
|
0.05 |
Impairment losses |
|
20 |
|
|
(294) |
|
|
314 |
|
|
— |
|
|
— |
|
|
314 |
|
|
24 |
|
|
290 |
|
|
— |
|
|
290 |
|
|
0.23 |
Losses/(gains) on sale of business |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
7 |
|
|
(7) |
|
|
— |
|
|
(7) |
|
|
(0.01) |
Nonmonetary currency devaluation |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(6) |
|
|
6 |
|
|
— |
|
|
6 |
|
|
— |
|
|
6 |
|
|
0.01 |
Debt prepayment and extinguishment (benefit)/costs |
|
— |
|
|
— |
|
|
— |
|
|
3 |
|
|
— |
|
|
(3) |
|
|
6 |
|
|
(9) |
|
|
— |
|
|
(9) |
|
|
(0.01) |
Adjusted Non-GAAP Results |
$ |
1,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
784 |
|
|
|
|
|
$ |
0.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 9 |
|||||||||||||
Reconciliation of GAAP Results to Non-GAAP Results (dollars in millions) (Unaudited) |
||||||||||||||||||||||||||||||||
|
For the Nine Months Ended |
|||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
|
Gross profit |
|
Selling, general and administrative expenses |
|
Operating income/(loss) |
|
Interest expense |
|
Other expense/(income) |
|
Income/(loss) before income taxes |
|
Provision for/(benefit from) income taxes |
|
Net income/(loss) |
|
Net income/(loss) attributable to noncontrolling interest |
|
Net income/(loss) attributable to common shareholders |
|
Diluted EPS |
|||||||||||
GAAP Results |
$ |
6,609 |
|
$ |
3,337 |
|
$ |
3,272 |
|
$ |
683 |
|
$ |
(94) |
|
$ |
2,683 |
|
$ |
594 |
|
$ |
2,089 |
|
$ |
(9) |
|
$ |
2,098 |
|
$ |
1.70 |
Items Affecting Comparability |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Restructuring activities |
|
44 |
|
|
19 |
|
|
25 |
|
|
— |
|
|
(2) |
|
|
27 |
|
|
5 |
|
|
22 |
|
|
— |
|
|
22 |
|
|
0.02 |
Unrealized losses/(gains) on commodity hedges |
|
(53) |
|
|
— |
|
|
(53) |
|
|
— |
|
|
— |
|
|
(53) |
|
|
(13) |
|
|
(40) |
|
|
— |
|
|
(40) |
|
|
(0.03) |
Impairment losses |
|
— |
|
|
(662) |
|
|
662 |
|
|
— |
|
|
— |
|
|
662 |
|
|
36 |
|
|
626 |
|
|
6 |
|
|
620 |
|
|
0.50 |
Certain non-ordinary course legal and regulatory matters |
|
— |
|
|
(2) |
|
|
2 |
|
|
— |
|
|
— |
|
|
2 |
|
|
— |
|
|
2 |
|
|
— |
|
|
2 |
|
|
— |
Losses/(gains) on sale of business |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(2) |
|
|
2 |
|
|
— |
|
|
2 |
|
|
— |
|
|
2 |
|
|
— |
Nonmonetary currency devaluation |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(27) |
|
|
27 |
|
|
— |
|
|
27 |
|
|
— |
|
|
27 |
|
|
0.02 |
Certain significant discrete income tax items |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
17 |
|
|
(17) |
|
|
— |
|
|
(17) |
|
|
(0.01) |
Adjusted Non-GAAP Results |
$ |
6,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,711 |
|
|
|
|
|
$ |
2.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 10 |
|||||||||||||
Reconciliation of GAAP Results to Non-GAAP Results (dollars in millions) (Unaudited) |
||||||||||||||||||||||||||||||||
|
For the Nine Months Ended |
|||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
|
Gross profit |
|
Selling, general and administrative expenses |
|
Operating income/(loss) |
|
Interest expense |
|
Other expense/(income) |
|
Income/(loss) before income taxes |
|
Provision for/(benefit from) income taxes |
|
Net income/(loss) |
|
Net income/(loss) attributable to noncontrolling interest |
|
Net income/(loss) attributable to common shareholders |
|
Diluted EPS |
|||||||||||
GAAP Results |
$ |
5,758 |
|
$ |
3,350 |
|
$ |
2,408 |
|
$ |
704 |
|
$ |
(211) |
|
$ |
1,915 |
|
$ |
434 |
|
$ |
1,481 |
|
$ |
8 |
|
$ |
1,473 |
|
$ |
1.19 |
Items Affecting Comparability |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Restructuring activities |
|
15 |
|
|
(23) |
|
|
38 |
|
|
— |
|
|
1 |
|
|
37 |
|
|
9 |
|
|
28 |
|
|
— |
|
|
28 |
|
|
0.02 |
Deal Costs |
|
— |
|
|
(8) |
|
|
8 |
|
|
— |
|
|
— |
|
|
8 |
|
|
3 |
|
|
5 |
|
|
— |
|
|
5 |
|
|
0.01 |
Unrealized losses/(gains) on commodity hedges |
|
65 |
|
|
— |
|
|
65 |
|
|
— |
|
|
— |
|
|
65 |
|
|
16 |
|
|
49 |
|
|
— |
|
|
49 |
|
|
0.04 |
Impairment losses |
|
86 |
|
|
(913) |
|
|
999 |
|
|
— |
|
|
— |
|
|
999 |
|
|
132 |
|
|
867 |
|
|
— |
|
|
867 |
|
|
0.70 |
Losses/(gains) on sale of business |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
(1) |
|
|
7 |
|
|
(8) |
|
|
— |
|
|
(8) |
|
|
(0.01) |
Other losses/(gains) related to acquisitions and divestitures |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
38 |
|
|
(38) |
|
|
(9) |
|
|
(29) |
|
|
— |
|
|
(29) |
|
|
(0.02) |
Nonmonetary currency devaluation |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(16) |
|
|
16 |
|
|
— |
|
|
16 |
|
|
— |
|
|
16 |
|
|
0.01 |
Debt prepayment and extinguishment (benefit)/costs |
|
— |
|
|
— |
|
|
— |
|
|
12 |
|
|
— |
|
|
(12) |
|
|
4 |
|
|
(16) |
|
|
— |
|
|
(16) |
|
|
(0.01) |
Adjusted Non-GAAP Results |
$ |
5,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,393 |
|
|
|
|
|
$ |
1.93 |
|
|
|
|
|
|
||||||
|
|
|
|
|
Schedule 11 |
||||||
Adjusted Gross Profit Margin (dollars in millions) (Unaudited) |
|||||||||||
|
For the Three Months Ended |
|
For the Nine Months Ended |
||||||||
|
|
|
|
|
|
|
|
||||
Adjusted Gross Profit |
$ |
2,231 |
|
$ |
1,952 |
|
$ |
6,600 |
|
$ |
5,924 |
Net sales |
|
6,570 |
|
|
6,505 |
|
|
19,780 |
|
|
19,104 |
|
|
|
|
|
|
|
|
||||
Adjusted Gross Profit Margin |
|
34.0% |
|
|
30.0% |
|
|
33.4% |
|
|
31.0% |
|
|
|||||||
|
|
|
Schedule 12 |
|||||
(Unaudited) |
||||||||
|
For the Three Months Ended |
|
|
|||||
|
|
|
|
|
$ Change |
|||
Key drivers of change in Adjusted EPS: |
|
|
|
|
|
|||
Results of operations(a)(b) |
$ |
0.87 |
|
$ |
0.76 |
|
$ |
0.11 |
Interest expense |
|
(0.15) |
|
|
(0.15) |
|
|
— |
Other expense/(income) |
|
0.03 |
|
|
0.02 |
|
|
0.01 |
Effective tax rate |
|
(0.03) |
|
|
— |
|
|
(0.03) |
Adjusted EPS |
$ |
0.72 |
|
$ |
0.63 |
|
$ |
0.09 |
(a) |
Includes non-cash amortization of definite-lived intangible assets, which accounted for a negative impact to Adjusted EPS from results of operations of |
|
(b) |
Includes divestiture-related license income, which accounted for a benefit to Adjusted EPS from results of operations of |
|
|
|||||||
|
|
|
Schedule 13 |
|||||
(Unaudited) |
||||||||
|
For the Nine Months Ended |
|
|
|||||
|
|
|
|
|
$ Change |
|||
Key drivers of change in Adjusted EPS: |
|
|
|
|
|
|||
Results of operations(a)(b) |
$ |
2.54 |
|
$ |
2.26 |
|
$ |
0.28 |
Results of divested operations |
|
— |
|
|
0.01 |
|
|
(0.01) |
Interest expense |
|
(0.44) |
|
|
(0.46) |
|
|
0.02 |
Other expense/(income)(c) |
|
0.08 |
|
|
0.12 |
|
|
(0.04) |
Effective tax rate |
|
0.02 |
|
|
— |
|
|
0.02 |
Adjusted EPS |
$ |
2.20 |
|
$ |
1.93 |
|
$ |
0.27 |
(a) |
Includes non-cash amortization of definite-lived intangible assets, which accounted for a negative impact to Adjusted EPS from results of operations of |
|
(b) |
Includes divestiture-related license income, which accounted for a benefit to Adjusted EPS from results of operations of |
|
(c) |
Includes non-cash amortization of prior service credits, which accounted for a benefit to Adjusted EPS from other expense/(income) of |
|
|
||||
|
Schedule 14 |
||||
Condensed Consolidated Balance Sheets (in millions, except per share data) (Unaudited) |
|||||
|
|
|
|
||
ASSETS |
|
|
|
||
Cash and cash equivalents |
$ |
1,052 |
|
$ |
1,040 |
Trade receivables, net |
|
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 |
|
|
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 |
$ |
— |
|
$ |
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 |
Redeemable noncontrolling interest |
|
24 |
|
|
40 |
Equity: |
|
|
|
||
Common stock, |
|
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) |
|
|
(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 |
|
|
||||
|
Schedule 15 |
||||
Condensed Consolidated Statements of Cash Flows (in millions) (Unaudited) |
|||||
|
For the Nine Months Ended |
||||
|
|
|
|
||
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) |
|
|
662 |
|
|
913 |
Nonmonetary currency devaluation |
|
27 |
|
|
16 |
Loss/(gain) on sale of business |
|
2 |
|
|
(1) |
Loss/(gain) on extinguishment of debt |
|
— |
|
|
(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 |
|
— |
|
|
(481) |
Proceeds from sale of business, net of cash disposed and working capital adjustments |
|
— |
|
|
(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 |
|
|
— |
Debt prepayment and extinguishment (benefit)/costs |
|
— |
|
|
(17) |
Proceeds from issuance of commercial paper |
|
— |
|
|
228 |
Repayments of commercial paper |
|
— |
|
|
(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 |
|
|
||||
|
Schedule 16 |
||||
Reconciliation of Net Cash Provided By/(Used For) Operating Activities to Free Cash Flow (in millions) (Unaudited) |
|||||
|
For the Nine Months Ended |
||||
|
|
|
|
||
Net cash provided by/(used for) operating activities |
$ |
2,620 |
|
$ |
1,517 |
Capital expenditures |
|
(779) |
|
|
(632) |
Free Cash Flow |
$ |
1,841 |
|
$ |
885 |
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
Schedule 17 |
|||||||
Reconciliation of Net Income/(Loss) to Adjusted EBITDA (dollars in millions) (Unaudited) |
||||||||||||||
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||
Net income/(loss) |
$ |
887 |
|
$ |
837 |
|
$ |
998 |
|
$ |
254 |
|
$ |
2,976 |
Interest expense |
|
217 |
|
|
227 |
|
|
228 |
|
|
228 |
|
|
900 |
Other expense/(income) |
|
(42) |
|
|
(35) |
|
|
(24) |
|
|
(35) |
|
|
(136) |
Provision for/(benefit from) income taxes |
|
164 |
|
|
214 |
|
|
174 |
|
|
206 |
|
|
758 |
Operating income/(loss) |
|
1,226 |
|
|
1,243 |
|
|
1,376 |
|
|
653 |
|
|
4,498 |
Depreciation and amortization (excluding restructuring activities) |
|
246 |
|
|
217 |
|
|
229 |
|
|
234 |
|
|
926 |
Divestiture-related license income |
|
(15) |
|
|
(13) |
|
|
(14) |
|
|
(14) |
|
|
(56) |
Restructuring activities |
|
36 |
|
|
(10) |
|
|
(10) |
|
|
45 |
|
|
61 |
Deal costs |
|
1 |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
Unrealized losses/(gains) on commodity hedges |
|
(2) |
|
|
11 |
|
|
(16) |
|
|
(48) |
|
|
(55) |
Impairment losses |
|
— |
|
|
— |
|
|
— |
|
|
662 |
|
|
662 |
Certain non-ordinary course legal and regulatory matters |
|
210 |
|
|
1 |
|
|
1 |
|
|
— |
|
|
212 |
Equity award compensation expense |
|
41 |
|
|
31 |
|
|
46 |
|
|
33 |
|
|
151 |
Adjusted EBITDA |
$ |
1,743 |
|
$ |
1,480 |
|
$ |
1,612 |
|
$ |
1,565 |
|
$ |
6,400 |
|
|
|
|
|
|
|
|
|
|
|||||
Current portion of long-term debt |
|
|
|
|
|
|
|
|
|
608 |
||||
Long-term debt |
|
|
|
|
|
|
|
|
|
19,270 |
||||
Less: Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
(1,052) |
||||
|
|
|
|
|
|
|
|
|
$ |
18,826 |
||||
|
|
|
|
|
|
|
|
|
|
|||||
Net Leverage |
|
|
|
|
|
|
|
|
|
2.9 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20231101554479/en/
Alex.Abraham@kraftheinz.com
ir@kraftheinz.com
Source: