(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Name of exchange on which registered |
Exhibit No. | Description | |
99.1 | ||
104 | The cover page of The Kraft Heinz Company's Current Report on Form 8-K dated February 13, 2020, formatted in iXBRL. |
The Kraft Heinz Company | ||
Date: February 13, 2020 | By: | /s/ Paulo Basilio |
Paulo Basilio | ||
Global Chief Financial Officer |
Contacts: | Michael Mullen (media) | Christopher Jakubik, CFA (investors) | |
Michael.Mullen@kraftheinz.com | ir@kraftheinz.com |
For the Three Months Ended | Year-over-year Change | ||||||||||||||||
December 28, 2019 | December 29, 2018 | Actual | Currency | Acquisitions and Divestitures | Organic | ||||||||||||
(in millions, except per share data) | |||||||||||||||||
Net sales | $ | 6,536 | $ | 6,891 | (5.1 | )% | (0.6) pp | (2.3) pp | (2.2 | )% | |||||||
Operating income/(loss) | 594 | (14,136 | ) | nm | |||||||||||||
Net income/(loss) attributable to common shareholders | 182 | (12,568 | ) | nm | |||||||||||||
Diluted EPS | $ | 0.15 | $ | (10.30 | ) | nm | |||||||||||
Adjusted EBITDA(1) | 1,564 | 1,674 | (6.6 | )% | (1.3) pp | (1.5) pp | |||||||||||
Adjusted EPS(1) | $ | 0.72 | $ | 0.84 | (14.3 | )% | |||||||||||
nm - not meaningful |
For the Three Months Ended | Year-over-year Change | ||||||||||||||||
December 28, 2019 | December 29, 2018 | Actual | Currency | Acquisitions and Divestitures | Organic | ||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | 4,682 | $ | 4,810 | (2.7 | )% | 0.0 pp | 0.0 pp | (2.7 | )% | |||||||
Segment Adjusted EBITDA | 1,270 | 1,249 | 1.6 | % | 0.0 pp | 0.0 pp |
For the Three Months Ended | Year-over-year Change | ||||||||||||||||
December 28, 2019 | December 29, 2018 | Actual | Currency | Acquisitions and Divestitures | Organic | ||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | 457 | $ | 600 | (23.8 | )% | 0.1 pp | (21.4) pp | (2.5 | )% | |||||||
Segment Adjusted EBITDA | 116 | 157 | (26.1 | )% | 0.2 pp | (14.8) pp |
For the Three Months Ended | Year-over-year Change | ||||||||||||||||
December 28, 2019 | December 29, 2018 | Actual | Currency | Acquisitions and Divestitures | Organic | ||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | 689 | $ | 692 | (0.5 | )% | (0.8) pp | 0.0 pp | 0.3 | % | |||||||
Segment Adjusted EBITDA | 182 | 171 | 6.3 | % | (1.4) pp | 0.0 pp |
For the Three Months Ended | Year-over-year Change | ||||||||||||||||
December 28, 2019 | December 29, 2018 | Actual | Currency | Acquisitions and Divestitures | Organic | ||||||||||||
(in millions) | |||||||||||||||||
Net sales | $ | 708 | $ | 789 | (10.1 | )% | (5.2) pp | (3.3) pp | (1.6 | )% | |||||||
Segment Adjusted EBITDA | 60 | 130 | (53.9 | )% | (8.0) pp | (0.3) pp |
(1) | Organic Net Sales, Adjusted EBITDA, Constant Currency Adjusted EBITDA and Adjusted EPS are non-GAAP financial measures. Please see discussion of non-GAAP financial measures and the reconciliations at the end of this press release for more information. |
(2) | The Company's key commodities in the United States and Canada are dairy, meat, coffee and nuts. |
(3) | Rest of World comprises two operating segments: Latin America and Asia Pacific. |
Schedule 1 | |||||||||||||||
The Kraft Heinz Company Consolidated Statements of Income (in millions, except per share data) (Unaudited) | |||||||||||||||
For the Three Months Ended | For the Year Ended | ||||||||||||||
December 28, 2019 | December 29, 2018 | December 28, 2019 | December 29, 2018 | ||||||||||||
Net sales | $ | 6,536 | $ | 6,891 | $ | 24,977 | $ | 26,268 | |||||||
Cost of products sold | 4,429 | 4,675 | 16,830 | 17,347 | |||||||||||
Gross profit | 2,107 | 2,216 | 8,147 | 8,921 | |||||||||||
Selling, general and administrative expenses, excluding impairment losses | 837 | 867 | 3,178 | 3,190 | |||||||||||
Goodwill impairment losses | 453 | 6,875 | 1,197 | 7,008 | |||||||||||
Intangible asset impairment losses | 223 | 8,610 | 702 | 8,928 | |||||||||||
Selling, general and administrative expenses | 1,513 | 16,352 | 5,077 | 19,126 | |||||||||||
Operating income/(loss) | 594 | (14,136 | ) | 3,070 | (10,205 | ) | |||||||||
Interest expense | 326 | 325 | 1,361 | 1,284 | |||||||||||
Other expense/(income) | (59 | ) | 13 | (952 | ) | (168 | ) | ||||||||
Income/(loss) before income taxes | 327 | (14,474 | ) | 2,661 | (11,321 | ) | |||||||||
Provision for/(benefit from) income taxes | 144 | (1,846 | ) | 728 | (1,067 | ) | |||||||||
Net income/(loss) | 183 | (12,628 | ) | 1,933 | (10,254 | ) | |||||||||
Net income/(loss) attributable to noncontrolling interest | 1 | (60 | ) | (2 | ) | (62 | ) | ||||||||
Net income/(loss) attributable to common shareholders | $ | 182 | $ | (12,568 | ) | $ | 1,935 | $ | (10,192 | ) | |||||
Basic shares outstanding | 1,221 | 1,220 | 1,221 | 1,219 | |||||||||||
Diluted shares outstanding | 1,225 | 1,220 | 1,224 | 1,219 | |||||||||||
Per share data applicable to common shareholders: | |||||||||||||||
Basic earnings/(loss) per share | $ | 0.15 | $ | (10.30 | ) | $ | 1.59 | $ | (8.36 | ) | |||||
Diluted earnings/(loss) per share | 0.15 | (10.30 | ) | 1.58 | (8.36 | ) |
Schedule 2 | |||||||||||||||||||
The Kraft Heinz Company Reconciliation of Net Sales to Organic Net Sales For the Three Months Ended (dollars in millions) (Unaudited) | |||||||||||||||||||
Net Sales | Currency | Acquisitions and Divestitures | Organic Net Sales | Price | Volume/Mix | ||||||||||||||
December 28, 2019 | |||||||||||||||||||
United States | $ | 4,682 | $ | — | $ | — | $ | 4,682 | |||||||||||
Canada | 457 | 1 | — | 456 | |||||||||||||||
EMEA | 689 | (6 | ) | — | 695 | ||||||||||||||
Rest of World | 708 | (11 | ) | — | 719 | ||||||||||||||
$ | 6,536 | $ | (16 | ) | $ | — | $ | 6,552 | |||||||||||
December 29, 2018 | |||||||||||||||||||
United States | $ | 4,810 | $ | — | $ | — | $ | 4,810 | |||||||||||
Canada | 600 | — | 133 | 467 | |||||||||||||||
EMEA | 692 | — | — | 692 | |||||||||||||||
Rest of World | 789 | 32 | 26 | 731 | |||||||||||||||
$ | 6,891 | $ | 32 | $ | 159 | $ | 6,700 |
Year-over-year growth rates | |||||||||||||
United States | (2.7 | )% | 0.0 pp | 0.0 pp | (2.7 | )% | 3.1 pp | (5.8) pp | |||||
Canada | (23.8 | )% | 0.1 pp | (21.4) pp | (2.5 | )% | (5.0) pp | 2.5 pp | |||||
EMEA | (0.5 | )% | (0.8) pp | 0.0 pp | 0.3 | % | 0.1 pp | 0.2 pp | |||||
Rest of World | (10.1 | )% | (5.2) pp | (3.3) pp | (1.6 | )% | 0.7 pp | (2.3) pp | |||||
Kraft Heinz | (5.1 | )% | (0.6) pp | (2.3) pp | (2.2 | )% | 2.0 pp | (4.2) pp |
Schedule 3 | |||||||||||||||||||
The Kraft Heinz Company Reconciliation of Net Sales to Organic Net Sales For the Year Ended (dollars in millions) (Unaudited) | |||||||||||||||||||
Net Sales | Currency | Acquisitions and Divestitures | Organic Net Sales | Price | Volume/Mix | ||||||||||||||
December 28, 2019 | |||||||||||||||||||
United States | $ | 17,756 | $ | — | $ | — | $ | 17,756 | |||||||||||
Canada | 1,882 | (45 | ) | 227 | 1,700 | ||||||||||||||
EMEA | 2,551 | (115 | ) | — | 2,666 | ||||||||||||||
Rest of World | 2,788 | (102 | ) | 51 | 2,839 | ||||||||||||||
$ | 24,977 | $ | (262 | ) | $ | 278 | $ | 24,961 | |||||||||||
December 29, 2018 | |||||||||||||||||||
United States | $ | 18,122 | $ | — | $ | — | $ | 18,122 | |||||||||||
Canada | 2,173 | — | 441 | 1,732 | |||||||||||||||
EMEA | 2,718 | — | 21 | 2,697 | |||||||||||||||
Rest of World | 3,255 | 243 | 170 | 2,842 | |||||||||||||||
$ | 26,268 | $ | 243 | $ | 632 | $ | 25,393 |
Year-over-year growth rates | |||||||||||||
United States | (2.0 | )% | 0.0 pp | 0.0 pp | (2.0 | )% | 0.4 pp | (2.4) pp | |||||
Canada | (13.4 | )% | (2.1) pp | (9.4) pp | (1.9 | )% | (3.4) pp | 1.5 pp | |||||
EMEA | (6.2 | )% | (4.3) pp | (0.7) pp | (1.2 | )% | 0.0 pp | (1.2) pp | |||||
Rest of World | (14.3 | )% | (10.3) pp | (3.9) pp | (0.1 | )% | 1.2 pp | (1.3) pp | |||||
Kraft Heinz | (4.9 | )% | (1.9) pp | (1.3) pp | (1.7 | )% | 0.1 pp | (1.8) pp |
Schedule 4 | |||||||||||||||
The Kraft Heinz Company Reconciliation of Net Income/(Loss) to Adjusted EBITDA (dollars in millions) (Unaudited) | |||||||||||||||
For the Three Months Ended | For the Year Ended | ||||||||||||||
December 28, 2019 | December 29, 2018 | December 28, 2019 | December 29, 2018 | ||||||||||||
Net income/(loss) | $ | 183 | $ | (12,628 | ) | $ | 1,933 | $ | (10,254 | ) | |||||
Interest expense | 326 | 325 | 1,361 | 1,284 | |||||||||||
Other expense/(income) | (59 | ) | 13 | (952 | ) | (168 | ) | ||||||||
Provision for/(benefit from) income taxes | 144 | (1,846 | ) | 728 | (1,067 | ) | |||||||||
Operating income/(loss) | 594 | (14,136 | ) | 3,070 | (10,205 | ) | |||||||||
Depreciation and amortization (excluding integration and restructuring expenses) | 255 | 240 | 985 | 919 | |||||||||||
Integration and restructuring expenses | 46 | 82 | 102 | 297 | |||||||||||
Deal costs | — | 4 | 19 | 23 | |||||||||||
Unrealized losses/(gains) on commodity hedges | (27 | ) | 10 | (57 | ) | 21 | |||||||||
Impairment losses | 676 | 15,485 | 1,899 | 15,936 | |||||||||||
Equity award compensation expense (excluding integration and restructuring expenses) | 20 | (11 | ) | 46 | 33 | ||||||||||
Adjusted EBITDA | $ | 1,564 | $ | 1,674 | $ | 6,064 | $ | 7,024 | |||||||
Segment Adjusted EBITDA: | |||||||||||||||
United States | $ | 1,270 | $ | 1,249 | $ | 4,809 | $ | 5,218 | |||||||
Canada | 116 | 157 | 487 | 608 | |||||||||||
EMEA | 182 | 171 | 661 | 724 | |||||||||||
Rest of World | 60 | 130 | 363 | 635 | |||||||||||
General corporate expenses | (64 | ) | (33 | ) | (256 | ) | (161 | ) | |||||||
Adjusted EBITDA | $ | 1,564 | $ | 1,674 | $ | 6,064 | $ | 7,024 |
Schedule 5 | |||||||||||
The Kraft Heinz Company 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 | |||||||||
December 28, 2019 | |||||||||||
United States | $ | 1,270 | $ | — | $ | 1,270 | |||||
Canada | 116 | — | 116 | ||||||||
EMEA | 182 | (2 | ) | 184 | |||||||
Rest of World | 60 | 3 | 57 | ||||||||
General corporate expenses | (64 | ) | — | (64 | ) | ||||||
$ | 1,564 | $ | 1 | $ | 1,563 | ||||||
December 29, 2018 | |||||||||||
United States | $ | 1,249 | $ | — | $ | 1,249 | |||||
Canada | 157 | — | 157 | ||||||||
EMEA | 171 | — | 171 | ||||||||
Rest of World | 130 | 23 | 107 | ||||||||
General corporate expenses | (33 | ) | — | (33 | ) | ||||||
$ | 1,674 | $ | 23 | $ | 1,651 |
Year-over-year growth rates | |||||||
United States | 1.6 | % | 0.0 pp | 1.6 | % | ||
Canada | (26.1 | )% | 0.2 pp | (26.3 | )% | ||
EMEA | 6.3 | % | (1.4) pp | 7.7 | % | ||
Rest of World | (53.9 | )% | (8.0) pp | (45.9 | )% | ||
General corporate expenses | 92.2 | % | (2.2) pp | 94.4 | % | ||
Kraft Heinz | (6.6 | )% | (1.3) pp | (5.3 | )% |
Schedule 6 | |||||||||||
The Kraft Heinz Company Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA For the Year Ended (dollars in millions) (Unaudited) | |||||||||||
Adjusted EBITDA | Currency | Constant Currency Adjusted EBITDA | |||||||||
December 28, 2019 | |||||||||||
United States | $ | 4,809 | $ | — | $ | 4,809 | |||||
Canada | 487 | (12 | ) | 499 | |||||||
EMEA | 661 | (30 | ) | 691 | |||||||
Rest of World | 363 | (8 | ) | 371 | |||||||
General corporate expenses | (256 | ) | 4 | (260 | ) | ||||||
$ | 6,064 | $ | (46 | ) | $ | 6,110 | |||||
December 29, 2018 | |||||||||||
United States | $ | 5,218 | $ | — | $ | 5,218 | |||||
Canada | 608 | — | 608 | ||||||||
EMEA | 724 | — | 724 | ||||||||
Rest of World | 635 | 170 | 465 | ||||||||
General corporate expenses | (161 | ) | — | (161 | ) | ||||||
$ | 7,024 | $ | 170 | $ | 6,854 |
Year-over-year growth rates | |||||||
United States | (7.8 | )% | 0.0 pp | (7.8 | )% | ||
Canada | (19.9 | )% | (1.9) pp | (18.0 | )% | ||
EMEA | (8.7 | )% | (4.2) pp | (4.5 | )% | ||
Rest of World | (42.8 | )% | (22.6) pp | (20.2 | )% | ||
General corporate expenses | 58.6 | % | (2.5) pp | 61.1 | % | ||
Kraft Heinz | (13.7 | )% | (2.8) pp | (10.9 | )% |
Schedule 7 | |||||||
The Kraft Heinz Company Reconciliation of Diluted EPS to Adjusted EPS (Unaudited) | |||||||
For the Three Months Ended | |||||||
December 28, 2019 | December 29, 2018 | ||||||
Diluted EPS | $ | 0.15 | $ | (10.30 | ) | ||
Integration and restructuring expenses(a) | 0.03 | 0.13 | |||||
Unrealized losses/(gains) on commodity hedges(b) | (0.02 | ) | 0.01 | ||||
Impairment losses(c) | 0.49 | 10.97 | |||||
Losses/(gains) on sale of business(d) | 0.06 | — | |||||
Other losses/(gains) related to acquisitions and divestitures(e) | — | 0.02 | |||||
Nonmonetary currency devaluation(f) | — | 0.01 | |||||
Debt prepayment and extinguishment costs(g) | 0.01 | — | |||||
Adjusted EPS | $ | 0.72 | $ | 0.84 |
(a) | Gross expenses included in integration and restructuring expenses were $52 million ($39 million after-tax) for the three months ended December 28, 2019 and $182 million ($159 million after-tax) for the three months ended December 29, 2018 and were recorded in the following income statement line items: |
• | Cost of products sold included $21 million for the three months ended December 28, 2019 and $19 million for the three months ended December 29, 2018; |
• | SG&A included $25 million for the three months ended December 28, 2019 and $63 million for the three months ended December 29, 2018; and |
• | Other expense/(income) included expenses of $6 million for the three months ended December 28, 2019 and expenses of $100 million for the three months ended December 29, 2018. |
(b) | Gross expenses/(income) included in unrealized losses/(gains) on commodity hedges were income of $27 million ($21 million after-tax) for the three months ended December 28, 2019 and expenses of $10 million ($6 million after-tax) for the three months ended December 29, 2018 and were recorded in cost of products sold. |
(c) | Gross impairment losses, which were recorded in SG&A, included the following: |
• | Goodwill impairment losses of $453 million ($439 million after-tax) for the three months ended December 28, 2019 and $6.9 billion ($6.9 billion after-tax) for the three months ended December 29, 2018; and |
• | Intangible asset impairment losses of $223 million ($156 million after-tax) for the three months ended December 28, 2019 and $8.6 billion ($6.5 billion after-tax) for the three months ended December 29, 2018. |
(e) | Gross expenses included in other losses/(gains) related to acquisitions and divestitures were $27 million ($15 million after-tax) for the three months ended December 29, 2018 and were recorded in the following income statement line items: |
• | Interest expense included $3 million for the three months ended December 29, 2018; |
• | Other expense/(income) included $17 million for the three months ended December 29, 2018; and |
• | Provision for/(benefit from) income taxes included $7 million for the three months ended December 29, 2018. |
(f) | Gross expenses included in nonmonetary currency devaluation were $15 million ($15 million after-tax) for the three months ended December 29, 2018 and were recorded in other expense/(income). |
Schedule 8 | |||||||
The Kraft Heinz Company Reconciliation of Diluted EPS to Adjusted EPS (Unaudited) | |||||||
For the Year Ended | |||||||
December 28, 2019 | December 29, 2018 | ||||||
Diluted EPS | $ | 1.58 | $ | (8.36 | ) | ||
Integration and restructuring expenses(a) | 0.07 | 0.32 | |||||
Deal costs(b) | 0.02 | 0.02 | |||||
Unrealized losses/(gains) on commodity hedges(c) | (0.04 | ) | 0.01 | ||||
Impairment losses(d) | 1.38 | 11.28 | |||||
Losses/(gains) on sale of business(e) | (0.23 | ) | 0.01 | ||||
Other losses/(gains) related to acquisitions and divestitures(f) | — | 0.02 | |||||
Nonmonetary currency devaluation(g) | 0.01 | 0.12 | |||||
Debt prepayment and extinguishment costs(h) | 0.06 | — | |||||
U.S. Tax Reform discrete income tax expense/(benefit)(i) | — | 0.09 | |||||
Adjusted EPS | $ | 2.85 | $ | 3.51 |
(a) | Gross expenses included in integration and restructuring expenses were $108 million in 2019 ($83 million after-tax) and $460 million in 2018 ($396 million after-tax) and were recorded in the following income statement line items: |
• | Cost of products sold included $48 million in 2019 and $194 million in 2018; |
• | SG&A included $54 million in 2019 and $103 million in 2018; and |
• | Other expense/(income) included expenses of $6 million in 2019 and expenses of $163 million in 2018. |
(b) | Gross expenses included in deal costs were $19 million in 2019 ($18 million after-tax) and $23 million in 2018 ($19 million after-tax) and were recorded in the following income statement line items: |
• | Cost of products sold included $4 million in 2018; and |
• | SG&A included $19 million in 2019 and $19 million in 2018. |
(c) | Gross expenses/(income) included in unrealized losses/(gains) on commodity hedges were income of $57 million in 2019 ($43 million after-tax) and expenses of $21 million in 2018 ($16 million after-tax) and were recorded in cost of products sold. |
(d) | Gross impairment losses, which were recorded in SG&A, included the following: |
• | Goodwill impairment losses of $1.2 billion in 2019 ($1.2 billion after-tax) and $7.0 billion in 2018 ($7.0 billion after-tax); and |
• | Intangible asset impairment losses of $702 million in 2019 ($537 million after-tax) and $8.9 billion in 2018 ($6.8 billion after-tax). |
(e) | Gross expenses/(income) included in losses/(gains) on sale of business were income of $420 million in 2019 ($275 million after-tax) and expenses of $15 million in 2018 ($15 million after-tax) and were recorded in other expense/(income). |
(f) | Gross expenses/(income) included in other losses/(gains) related to acquisitions and divestitures were income of $5 million in 2019 ($5 million after-tax) and expenses of $27 million in 2018 ($15 million after-tax) and were recorded in the following income statement line items: |
• | Interest expense included $1 million in 2019 and $3 million in 2018; |
• | Other expense/(income) included income of $6 million in 2019 and expenses of $17 million in 2018; and |
• | Provision for/(benefit from) income taxes included $7 million in 2018. |
(g) | Gross expenses included in nonmonetary currency devaluation were $10 million in 2019 ($10 million after-tax) and $146 million in 2018 ($146 million after-tax) and were recorded in other expense/(income). |
(h) | Gross expenses included in debt prepayment and extinguishment costs were $98 million in 2019 ($73 million after-tax) and were recorded in interest expense. |
(i) | U.S. Tax Reform discrete income tax expense/(benefit) included expenses of $104 million in 2018. |
Schedule 9 | |||||||
The Kraft Heinz Company Consolidated Balance Sheets (in millions, except per share data) (Unaudited) | |||||||
December 28, 2019 | December 29, 2018 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 2,279 | $ | 1,130 | |||
Trade receivables, net | 1,973 | 2,129 | |||||
Income taxes receivable | 173 | 152 | |||||
Inventories | 2,721 | 2,667 | |||||
Prepaid expenses | 384 | 400 | |||||
Other current assets | 445 | 1,221 | |||||
Assets held for sale | 122 | 1,376 | |||||
Total current assets | 8,097 | 9,075 | |||||
Property, plant and equipment, net | 7,055 | 7,078 | |||||
Goodwill | 35,546 | 36,503 | |||||
Intangible assets, net | 48,652 | 49,468 | |||||
Other non-current assets | 2,100 | 1,337 | |||||
TOTAL ASSETS | $ | 101,450 | $ | 103,461 | |||
LIABILITIES AND EQUITY | |||||||
Commercial paper and other short-term debt | $ | 6 | $ | 21 | |||
Current portion of long-term debt | 1,022 | 377 | |||||
Trade payables | 4,003 | 4,153 | |||||
Accrued marketing | 647 | 722 | |||||
Interest payable | 384 | 408 | |||||
Other current liabilities | 1,804 | 1,767 | |||||
Liabilities held for sale | 9 | 55 | |||||
Total current liabilities | 7,875 | 7,503 | |||||
Long-term debt | 28,216 | 30,770 | |||||
Deferred income taxes | 11,878 | 12,202 | |||||
Accrued postemployment costs | 273 | 306 | |||||
Other non-current liabilities | 1,459 | 902 | |||||
TOTAL LIABILITIES | 49,701 | 51,683 | |||||
Redeemable noncontrolling interest | — | 3 | |||||
Equity: | |||||||
Common stock, $0.01 par value | 12 | 12 | |||||
Additional paid-in capital | 56,828 | 58,723 | |||||
Retained earnings/(deficit) | (3,060 | ) | (4,853 | ) | |||
Accumulated other comprehensive income/(losses) | (1,886 | ) | (1,943 | ) | |||
Treasury stock, at cost | (271 | ) | (282 | ) | |||
Total shareholders' equity | 51,623 | 51,657 | |||||
Noncontrolling interest | 126 | 118 | |||||
TOTAL EQUITY | 51,749 | 51,775 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 101,450 | $ | 103,461 |
Schedule 10 | |||||||
The Kraft Heinz Company Consolidated Statement of Cash Flows (in millions) (Unaudited) | |||||||
For the Year Ended | |||||||
December 28, 2019 | December 29, 2018 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income/(loss) | $ | 1,933 | $ | (10,254 | ) | ||
Adjustments to reconcile net income/(loss) to operating cash flows: | |||||||
Depreciation and amortization | 994 | 983 | |||||
Amortization of postretirement benefit plans prior service costs/(credits) | (306 | ) | (339 | ) | |||
Equity award compensation expense | 46 | 33 | |||||
Deferred income tax provision/(benefit) | (293 | ) | (1,967 | ) | |||
Postemployment benefit plan contributions | (32 | ) | (76 | ) | |||
Goodwill and intangible asset impairment losses | 1,899 | 15,936 | |||||
Nonmonetary currency devaluation | 10 | 146 | |||||
Loss/(gain) on sale of business | (420 | ) | 15 | ||||
Other items, net | (46 | ) | 160 | ||||
Changes in current assets and liabilities: | |||||||
Trade receivables | 140 | (2,280 | ) | ||||
Inventories | (277 | ) | (251 | ) | |||
Accounts payable | (58 | ) | (23 | ) | |||
Other current assets | 52 | (146 | ) | ||||
Other current liabilities | (90 | ) | 637 | ||||
Net cash provided by/(used for) operating activities | 3,552 | 2,574 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Cash receipts on sold receivables | — | 1,296 | |||||
Capital expenditures | (768 | ) | (826 | ) | |||
Payments to acquire business, net of cash acquired | (199 | ) | (248 | ) | |||
Proceeds from net investment hedges | 590 | 24 | |||||
Proceeds from sale of business, net of cash disposed | 1,875 | 18 | |||||
Other investing activities, net | 13 | 24 | |||||
Net cash provided by/(used for) investing activities | 1,511 | 288 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Repayments of long-term debt | (4,795 | ) | (2,713 | ) | |||
Proceeds from issuance of long-term debt | 2,967 | 2,990 | |||||
Debt prepayment and extinguishment costs | (99 | ) | — | ||||
Proceeds from issuance of commercial paper | 557 | 2,784 | |||||
Repayments of commercial paper | (557 | ) | (3,213 | ) | |||
Dividends paid | (1,953 | ) | (3,183 | ) | |||
Other financing activities, net | (33 | ) | (28 | ) | |||
Net cash provided by/(used for) financing activities | (3,913 | ) | (3,363 | ) | |||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (6 | ) | (132 | ) | |||
Cash, cash equivalents, and restricted cash | |||||||
Net increase/(decrease) | 1,144 | (633 | ) | ||||
Balance at beginning of period | 1,136 | 1,769 | |||||
Balance at end of period | $ | 2,280 | $ | 1,136 |