Kraft Heinz Reports Third Quarter 2020 Results
-
Q3 net sales increased 6.0%; Organic
Net Sales (1) increased 6.3% - Q3 gross profit increased 20.4%
- Q3 operating income declined 2.8%, net income attributable to common shareholders decreased 33.7%, and diluted EPS decreased 33.8% due to charges related to the pending Cheese Transaction(2)
- Adjusted EBITDA(1) increased 13.5% and Adjusted EPS(1) increased 1.4%
-
Full-year outlook raised to mid-single-digit Organic
Net Sales (3) growth and high-single-digit Constant Currency Adjusted EBITDA(1)(3) growth
“The continuation of our strong growth into the third quarter is a reflection of the agility we are creating as an organization and because of that, we are raising our outlook for the full year,” said
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In millions |
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Organic |
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2020 |
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2019 |
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% Chg vs PY |
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YoY Growth Rate |
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Price |
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Volume/Mix |
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For the Three Months Ended |
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|||||
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$ |
4,710 |
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$ |
4,385 |
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7.4% |
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7.4% |
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4.0 pp |
|
3.4 pp |
International(4) |
|
1,325 |
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1,276 |
|
3.9% |
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4.6% |
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2.1 pp |
|
2.5 pp |
||
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|
406 |
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415 |
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(2.2)% |
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(1.0)% |
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4.6 pp |
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(5.6) pp |
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$ |
6,441 |
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$ |
6,076 |
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6.0% |
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6.3% |
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3.7 pp |
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2.6 pp |
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For the Nine Months Ended |
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$ |
14,122 |
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$ |
13,142 |
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7.5% |
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7.5% |
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2.9 pp |
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4.6 pp |
International(4) |
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3,931 |
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3,874 |
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1.5% |
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5.7% |
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2.2 pp |
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3.5 pp |
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1,193 |
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1,425 |
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(16.3)% |
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1.0% |
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0.1 pp |
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0.9 pp |
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$ |
19,246 |
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$ |
18,441 |
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4.4% |
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6.7% |
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2.6 pp |
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4.1 pp |
Net Income/(Loss) Attributable to Common Shareholders and Diluted EPS |
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In millions, except per share data |
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For the Three Months Ended |
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For the Nine Months Ended |
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2020 |
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2019 |
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% Chg vs PY |
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2020 |
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2019 |
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% Chg vs PY |
||||
Gross profit |
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$ |
2,344 |
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$ |
1,947 |
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20.4% |
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$ |
6,654 |
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$ |
6,040 |
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10.2% |
Operating income/(loss) |
|
1,147 |
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1,180 |
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(2.8)% |
|
578 |
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2,476 |
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(76.7)% |
||||
Net income/(loss) attributable to common shareholders |
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597 |
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899 |
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(33.7)% |
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(676) |
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1,753 |
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(138.6)% |
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Diluted EPS |
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$ |
0.49 |
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$ |
0.74 |
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(33.8)% |
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$ |
(0.55) |
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$ |
1.43 |
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(138.5)% |
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Adjusted EPS(1) |
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0.70 |
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0.69 |
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1.4% |
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2.09 |
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2.13 |
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(1.9)% |
||||
Adjusted EBITDA(1) |
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$ |
1,667 |
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$ |
1,469 |
|
13.5% |
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$ |
4,881 |
|
$ |
4,500 |
|
8.5% |
Q3 2020 Financial Summary
-
Net sales increased 6.0 percent versus the year-ago period to
$6.4 billion , including an unfavorable 0.3 percentage point impact from currency. OrganicNet Sales increased 6.3 percent despite a negative 1.2 percentage point impact from exiting the McCafé licensing agreement. Pricing was up 3.7 percentage points versus the prior year period, with positive pricing in each business segment. Higher pricing primarily resulted from reduced promotional activity compared to the year-ago period, with gains also reflecting planned pricing actions in select categories and markets and pricing to offset dairy inflation. Volume/mix was up 2.6 percentage points versus the year-ago period, driven by strong growth in retail, e-commerce, and club channels supported by continued growth of at-home consumption due, in part, to the COVID-19 pandemic. This growth more than offset lower but improving foodservice sales, and the negative impact from exiting the McCafé licensing agreement. -
Net income attributable to common shareholders decreased 33.7 percent versus the year-ago period to
$597 million and Diluted EPS decreased to$0.49 , down 33.8 percent versus the prior year driven by charges related to the pending Cheese Transaction(2) in the current period and a gain on sale of the Canadian natural cheese business in the year-ago period. -
Adjusted EPS increased to
$0.70 , up 1.4 percent versus the prior year as Adjusted EBITDA growth more than offset a higher effective tax rate, unfavorable changes in other income, and higher non-cash equity award compensation expenses versus the year-ago period. -
Adjusted EBITDA increased 13.5 percent versus the year-ago period to
$1.7 billion , including an unfavorable 0.1 percentage point impact from currency. Excluding the impact of currency, Adjusted EBITDA growth was driven by pricing gains, volume growth, and favorable mix versus the year-ago period, as well as procurement savings inthe United States . This growth more than offset higher variable compensation, unfavorable key commodity(5) costs, specifically in dairy, as well as increased marketing investment inthe United States and incremental COVID-19-related operating expenses globally. -
Year-to-date net cash provided by operating activities increased to
$3.3 billion , up 67.0% versus the comparable prior year period, primarily driven by Adjusted EBITDA growth, reduced cash outflows resulting from lower payments related to the timing of promotional activity, and favorable changes in inventory, primarily due to reduced inventory levels from COVID-19-related demand. Free Cash Flow(1) for the first nine months of 2020 increased to$2.9 billion , up 107.8% versus the comparable prior year period, from a combination of the previously mentioned items and lower capital expenditures versus the prior year period.
Outlook
Based on performance to date, the Company believes mid-single-digit Organic
End Notes
(1) |
Organic |
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(2) |
In |
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(3) |
Fourth quarter and 2020 full year guidance for Organic |
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(4) |
In the first quarter of 2020, the Company’s internal reporting and reportable segments changed. The |
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(5) |
The Company's key commodities in |
Webcast Information
A webcast of
ABOUT
We are driving transformation at
Forward-Looking Statements
This press release contains a number of forward-looking statements. Words such as “plan,” "believe," "anticipate," "reflect," "invest," "make," "expect," "drive," “improve,” “intend,” "assess," "evaluate," “establish,” “focus,” “build,” “turn,” “expand,” “leverage,” "grow," "will," 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, costs and cost savings, legal matters, taxes, impairments, dividends, expectations, investments, innovations, opportunities, capabilities, execution, initiatives, pipeline, and growth. These forward-looking statements 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, the impact of COVID-19; 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, suppliers and 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, increase its market share, or add products that are in faster-growing and more profitable categories; product recalls or product liability claims; unanticipated business disruptions; the Company’s ability to identify, complete or realize the benefits from strategic acquisitions, alliances, divestitures, joint ventures or other investments; 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 Company’s ability to successfully execute its strategic initiatives; the impacts of the Company’s international operations; economic and political conditions in
Non-GAAP Financial Measures
The non-GAAP financial measures provided 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. Management believes that presenting the Company's non-GAAP financial measures (i.e., Organic
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 integration and restructuring expenses); in addition to these adjustments, the Company excludes, when they occur, the impacts of integration and restructuring expenses, deal costs, unrealized losses/(gains) on commodity hedges, impairment losses, and equity award compensation expense (excluding integration and restructuring expenses). The Company also presents Adjusted EBITDA on a constant currency basis. 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 EBITDA and Constant Currency Adjusted EBITDA are tools that can assist management and investors in comparing the Company's performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect the Company's underlying operations.
Adjusted EPS is defined as diluted earnings per share excluding, when they occur, the impacts of integration and restructuring expenses, deal costs, unrealized losses/(gains) on commodity hedges, impairment losses, 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 costs, and
Free Cash Flow is defined as net cash provided by/(used for) operating activities less capital expenditures. The Company believes Free Cash Flow provides a measure of the Company's core operating performance, the cash-generating capabilities of the Company's business operations, and is one factor used in determining the amount of cash available for debt repayments, dividends, acquisitions, share repurchases, and other corporate purposes. 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.
See the attached schedules for supplemental financial data, which includes the financial information, the non-GAAP financial measures and corresponding reconciliations to the comparable GAAP financial measures for the relevant periods.
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Schedule 1 |
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For the Three Months Ended |
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For the Nine Months Ended |
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2020 |
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2019 |
|
2020 |
|
2019 |
||||
Net sales |
$ |
6,441 |
|
$ |
6,076 |
|
$ |
19,246 |
|
$ |
18,441 |
Cost of products sold |
4,097 |
|
4,129 |
|
12,592 |
|
12,401 |
||||
Gross profit |
2,344 |
|
1,947 |
|
6,654 |
|
6,040 |
||||
Selling, general and administrative expenses, excluding impairment losses |
897 |
|
762 |
|
2,677 |
|
2,341 |
||||
|
300 |
|
— |
|
2,343 |
|
744 |
||||
Intangible asset impairment losses |
— |
|
5 |
|
1,056 |
|
479 |
||||
Selling, general and administrative expenses |
1,197 |
|
767 |
|
6,076 |
|
3,564 |
||||
Operating income/(loss) |
1,147 |
|
1,180 |
|
578 |
|
2,476 |
||||
Interest expense |
314 |
|
398 |
|
1,066 |
|
1,035 |
||||
Other expense/(income) |
(73) |
|
(380) |
|
(232) |
|
(893) |
||||
Income/(loss) before income taxes |
906 |
|
1,162 |
|
(256) |
|
2,334 |
||||
Provision for/(benefit from) income taxes |
308 |
|
264 |
|
417 |
|
584 |
||||
Net income/(loss) |
598 |
|
898 |
|
(673) |
|
1,750 |
||||
Net income/(loss) attributable to noncontrolling interest |
1 |
|
(1) |
|
3 |
|
(3) |
||||
Net income/(loss) attributable to common shareholders |
$ |
597 |
|
$ |
899 |
|
$ |
(676) |
|
$ |
1,753 |
|
|
|
|
|
|
|
|
||||
Basic shares outstanding |
1,223 |
|
1,221 |
|
1,222 |
|
1,220 |
||||
Diluted shares outstanding |
1,229 |
|
1,223 |
|
1,222 |
|
1,223 |
||||
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|
||||
Per share data applicable to common shareholders: |
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|
||||
Basic earnings/(loss) per share |
$ |
0.49 |
|
$ |
0.74 |
|
$ |
(0.55) |
|
$ |
1.44 |
Diluted earnings/(loss) per share |
0.49 |
|
0.74 |
|
(0.55) |
|
1.43 |
|
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Schedule 2 |
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|||||||||||||||
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Currency |
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Acquisitions and Divestitures |
|
Organic Net Sales |
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Price |
|
Volume/Mix |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
4,710 |
|
$ |
— |
|
$ |
— |
|
$ |
4,710 |
|
|
|
|
International |
1,325 |
|
(4) |
|
— |
|
1,329 |
|
|
|
|
||||
|
406 |
|
(4) |
|
— |
|
410 |
|
|
|
|
||||
|
$ |
6,441 |
|
$ |
(8) |
|
$ |
— |
|
$ |
6,449 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
4,385 |
|
$ |
— |
|
$ |
— |
|
$ |
4,385 |
|
|
|
|
International |
1,276 |
|
6 |
|
— |
|
1,270 |
|
|
|
|
||||
|
415 |
|
— |
|
1 |
|
414 |
|
|
|
|
||||
|
$ |
6,076 |
|
$ |
6 |
|
$ |
1 |
|
$ |
6,069 |
|
|
|
|
Year-over-year growth rates | |||||||||||||||
7.4% |
|
|
0.0 pp |
|
|
0.0 pp |
|
|
7.4% |
|
4.0 pp |
|
3.4 pp |
||
International |
3.9% |
|
|
(0.7) pp |
|
|
0.0 pp |
|
|
4.6% |
|
2.1 pp |
|
2.5 pp |
|
|
(2.2)% |
|
|
(1.0) pp |
|
|
(0.2) pp |
|
|
(1.0)% |
|
4.6 pp |
|
(5.6) pp |
|
|
6.0% |
|
|
(0.3) pp |
|
|
0.0 pp |
|
|
6.3% |
|
3.7 pp |
|
2.6 pp |
|
|
|
|
|
|
|
|
|||||||||
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|
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Schedule 3 |
||||||
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|||||||||||||||
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|
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Currency |
|
Acquisitions and Divestitures |
|
Organic Net Sales |
|
Price |
|
Volume/Mix |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
14,122 |
|
$ |
— |
|
$ |
— |
|
$ |
14,122 |
|
|
|
|
International |
3,931 |
|
(128) |
|
— |
|
4,059 |
|
|
|
|
||||
|
1,193 |
|
(25) |
|
— |
|
1,218 |
|
|
|
|
||||
|
$ |
19,246 |
|
$ |
(153) |
|
$ |
— |
|
$ |
19,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
13,142 |
|
$ |
— |
|
$ |
— |
|
$ |
13,142 |
|
|
|
|
International |
3,874 |
|
20 |
|
13 |
|
3,841 |
|
|
|
|
||||
|
1,425 |
|
— |
|
219 |
|
1,206 |
|
|
|
|
||||
|
$ |
18,441 |
|
$ |
20 |
|
$ |
232 |
|
$ |
18,189 |
|
|
|
|
Year-over-year growth rates |
|
||||||||||||||
|
7.5% |
|
|
0.0 pp |
|
|
0.0 pp |
|
|
7.5% |
|
2.9 pp |
|
4.6 pp |
|
International |
1.5% |
|
|
(3.8) pp |
|
|
(0.4) pp |
|
|
5.7% |
|
2.2 pp |
|
3.5 pp |
|
|
(16.3)% |
|
|
(1.8) pp |
|
|
(15.5) pp |
|
|
1.0% |
|
0.1 pp |
|
0.9 pp |
|
|
4.4% |
|
|
(0.9) pp |
|
|
(1.4) pp |
|
|
6.7% |
|
2.6 pp |
|
4.1 pp |
|
|
|
|
|
|
|||||||
|
|
|
|
|
Schedule 4 |
||||||
|
|||||||||||
|
For the Three Months Ended |
|
For the Nine Months Ended |
||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||
Net income/(loss) |
$ |
598 |
|
$ |
898 |
|
$ |
(673) |
|
$ |
1,750 |
Interest expense |
314 |
|
398 |
|
1,066 |
|
1,035 |
||||
Other expense/(income) |
(73) |
|
(380) |
|
(232) |
|
(893) |
||||
Provision for/(benefit from) income taxes |
308 |
|
264 |
|
417 |
|
584 |
||||
Operating income/(loss) |
1,147 |
|
1,180 |
|
578 |
|
2,476 |
||||
Depreciation and amortization (excluding integration and restructuring expenses) |
232 |
|
243 |
|
722 |
|
730 |
||||
Integration and restructuring expenses |
8 |
|
15 |
|
12 |
|
56 |
||||
Deal costs |
9 |
|
6 |
|
9 |
|
19 |
||||
Unrealized losses/(gains) on commodity hedges |
(70) |
|
9 |
|
47 |
|
(30) |
||||
Impairment losses |
300 |
|
5 |
|
3,399 |
|
1,223 |
||||
Equity award compensation expense (excluding integration and restructuring expenses) |
41 |
|
11 |
|
114 |
|
26 |
||||
Adjusted EBITDA |
$ |
1,667 |
|
$ |
1,469 |
|
$ |
4,881 |
|
$ |
4,500 |
|
|
|
|
|
|
|
|
||||
Segment Adjusted EBITDA: |
|
|
|
|
|
|
|
||||
|
$ |
1,363 |
|
$ |
1,160 |
|
$ |
4,050 |
|
$ |
3,556 |
International |
277 |
|
260 |
|
797 |
|
765 |
||||
|
103 |
|
107 |
|
268 |
|
371 |
||||
General corporate expenses |
(76) |
|
(58) |
|
(234) |
|
(192) |
||||
Adjusted EBITDA |
$ |
1,667 |
|
$ |
1,469 |
|
$ |
4,881 |
|
$ |
4,500 |
|
|
|
|
|||||
|
|
|
|
|
Schedule 5 |
|||
|
||||||||
|
Adjusted EBITDA |
|
Currency |
|
Constant Currency Adjusted EBITDA |
|||
|
|
|
|
|
|
|||
|
$ |
1,363 |
|
$ |
— |
|
$ |
1,363 |
International |
277 |
|
3 |
|
274 |
|||
|
103 |
|
(2) |
|
105 |
|||
General corporate expenses |
(76) |
|
— |
|
(76) |
|||
|
$ |
1,667 |
|
$ |
1 |
|
$ |
1,666 |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|||
|
$ |
1,160 |
|
$ |
— |
|
$ |
1,160 |
International |
260 |
|
2 |
|
258 |
|||
|
107 |
|
— |
|
107 |
|||
General corporate expenses |
(58) |
|
— |
|
(58) |
|||
|
$ |
1,469 |
|
$ |
2 |
|
$ |
1,467 |
Year-over-year growth rates | ||||||||
|
17.5% |
|
|
0.0 pp |
|
|
17.5% |
|
International |
6.6% |
|
|
(0.2) pp |
|
|
6.8% |
|
|
(3.9)% |
|
|
(0.9) pp |
|
|
(3.0)% |
|
General corporate expenses |
31.6% |
|
|
0.9 pp |
|
|
30.7% |
|
|
13.5% |
|
|
(0.1) pp |
|
|
13.6% |
|
|
|
|
||||||
|
|
|
|
|
Schedule 6 |
|||
|
||||||||
|
Adjusted EBITDA |
|
Currency |
|
Constant Currency Adjusted EBITDA |
|||
|
|
|
|
|
|
|||
|
$ |
4,050 |
|
$ |
— |
|
$ |
4,050 |
International |
797 |
|
(17) |
|
814 |
|||
|
268 |
|
(7) |
|
275 |
|||
General corporate expenses |
(234) |
|
1 |
|
(235) |
|||
|
$ |
4,881 |
|
$ |
(23) |
|
$ |
4,904 |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|||
|
$ |
3,556 |
|
$ |
— |
|
$ |
3,556 |
International |
765 |
|
9 |
|
756 |
|||
|
371 |
|
— |
|
371 |
|||
General corporate expenses |
(192) |
|
— |
|
(192) |
|||
|
$ |
4,500 |
|
$ |
9 |
|
$ |
4,491 |
Year-over-year growth rates |
||||||||
|
13.9% |
|
|
0.0 pp |
|
|
13.9% |
|
International |
4.1% |
|
|
(3.6) pp |
|
|
7.7% |
|
|
(27.7)% |
|
|
(1.8) pp |
|
|
(25.9)% |
|
General corporate expenses |
22.0% |
|
|
(0.2) pp |
|
|
22.2% |
|
|
8.5% |
|
|
(0.7) pp |
|
|
9.2% |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
Schedule 7 |
||||
|
|||||||||||
|
For the Three Months Ended |
|
For the Nine Months Ended |
||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||
Diluted EPS |
$ |
0.49 |
|
$ |
0.74 |
|
$ |
(0.55) |
|
$ |
1.43 |
Integration and restructuring expenses(a) |
0.01 |
|
0.01 |
|
0.01 |
|
0.04 |
||||
Deal costs(b) |
— |
|
0.01 |
|
— |
|
0.01 |
||||
Unrealized losses/(gains) on commodity hedges(c) |
(0.04) |
|
0.01 |
|
0.03 |
|
(0.02) |
||||
Impairment losses(d) |
0.24 |
|
— |
|
2.60 |
|
0.90 |
||||
Losses/(gains) on sale of business(e) |
— |
|
(0.13) |
|
— |
|
(0.29) |
||||
Nonmonetary currency devaluation(f) |
— |
|
— |
|
— |
|
0.01 |
||||
Debt prepayment and extinguishment costs(g) |
— |
|
0.05 |
|
0.07 |
|
0.05 |
||||
|
— |
|
— |
|
(0.07) |
|
— |
||||
Adjusted EPS |
$ |
0.70 |
|
$ |
0.69 |
|
$ |
2.09 |
|
$ |
2.13 |
(a) |
Gross expenses included in integration and restructuring expenses were |
||
|
• |
Cost of products sold included income of |
|
|
• |
SG&A included expenses of |
|
|
• |
Other expense/(income) included expenses of |
|
(b) |
Gross expenses included in deal costs were |
||
(c) |
Gross expenses/(income) included in unrealized losses/(gains) on commodity hedges were income of |
||
(d) |
Gross impairment losses, which were recorded in SG&A, included the following: |
||
|
• |
|
|
|
• |
Intangible asset impairment losses of |
|
(e) |
Gross expenses/(income) included in losses/(gains) on sale of business were expenses of |
||
(f) |
Gross expenses included in nonmonetary currency devaluation were |
||
(g) |
Gross expenses included in debt prepayment and extinguishment costs were |
||
(h) |
|
||
|
|
||||
|
|
|
Schedule 8 |
||
|
|||||
|
|
|
|
||
ASSETS |
|
|
|
||
Cash and cash equivalents |
$ |
2,720 |
|
$ |
2,279 |
Trade receivables, net |
1,979 |
|
1,973 |
||
Inventories |
2,661 |
|
2,721 |
||
Prepaid expenses |
382 |
|
384 |
||
Other current assets |
401 |
|
618 |
||
Assets held for sale |
1,922 |
|
122 |
||
Total current assets |
10,065 |
|
8,097 |
||
Property, plant and equipment, net |
6,558 |
|
7,055 |
||
|
32,861 |
|
35,546 |
||
Intangible assets, net |
46,418 |
|
48,652 |
||
Other non-current assets |
2,220 |
|
2,100 |
||
TOTAL ASSETS |
$ |
98,122 |
|
$ |
101,450 |
LIABILITIES AND EQUITY |
|
|
|
||
Commercial paper and other short-term debt |
$ |
6 |
|
$ |
6 |
Current portion of long-term debt |
529 |
|
1,022 |
||
Trade payables |
4,052 |
|
4,003 |
||
Accrued marketing |
1,001 |
|
647 |
||
Interest payable |
333 |
|
384 |
||
Other current liabilities |
1,755 |
|
1,804 |
||
Liabilities held for sale |
18 |
|
9 |
||
Total current liabilities |
7,694 |
|
7,875 |
||
Long-term debt |
27,882 |
|
28,216 |
||
Deferred income taxes |
11,461 |
|
11,878 |
||
Accrued postemployment costs |
250 |
|
273 |
||
Other non-current liabilities |
1,496 |
|
1,459 |
||
TOTAL LIABILITIES |
48,783 |
|
49,701 |
||
Redeemable noncontrolling interest |
(2) |
|
— |
||
Equity: |
|
|
|
||
Common stock, |
12 |
|
12 |
||
Additional paid-in capital |
55,544 |
|
56,828 |
||
Retained earnings/(deficit) |
(3,739) |
|
(3,060) |
||
Accumulated other comprehensive income/(losses) |
(2,258) |
|
(1,886) |
||
|
(341) |
|
(271) |
||
Total shareholders' equity |
49,218 |
|
51,623 |
||
Noncontrolling interest |
123 |
|
126 |
||
TOTAL EQUITY |
49,341 |
|
51,749 |
||
TOTAL LIABILITIES AND EQUITY |
$ |
98,122 |
|
$ |
101,450 |
|
|
||||
|
|
|
Schedule 9 |
||
|
|||||
|
For the Nine Months Ended |
||||
|
2020 |
|
2019 |
||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||
Net income/(loss) |
$ |
(673) |
|
$ |
1,750 |
Adjustments to reconcile net income/(loss) to operating cash flows: |
|
|
|
||
Depreciation and amortization |
722 |
|
737 |
||
Amortization of postretirement benefit plans prior service costs/(credits) |
(92) |
|
(229) |
||
Equity award compensation expense |
114 |
|
26 |
||
Deferred income tax provision/(benefit) |
(343) |
|
(140) |
||
Postemployment benefit plan contributions |
(20) |
|
(23) |
||
|
3,399 |
|
1,223 |
||
Nonmonetary currency devaluation |
6 |
|
10 |
||
Loss/(gain) on sale of business |
2 |
|
(490) |
||
Other items, net |
143 |
|
(34) |
||
Changes in current assets and liabilities: |
|
|
|
||
Trade receivables |
(6) |
|
138 |
||
Inventories |
(455) |
|
(637) |
||
Accounts payable |
62 |
|
113 |
||
Other current assets |
(15) |
|
(73) |
||
Other current liabilities |
482 |
|
(381) |
||
Net cash provided by/(used for) operating activities |
3,326 |
|
1,990 |
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||
Capital expenditures |
(397) |
|
(581) |
||
Payments to acquire business, net of cash acquired |
— |
|
(199) |
||
Proceeds from sale of business, net of cash disposed |
— |
|
1,875 |
||
Other investing activities, net |
35 |
|
16 |
||
Net cash provided by/(used for) investing activities |
(362) |
|
1,111 |
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
||
Repayments of long-term debt |
(4,395) |
|
(3,272) |
||
Proceeds from issuance of long-term debt |
3,500 |
|
2,967 |
||
Debt prepayment and extinguishment costs |
(101) |
|
(91) |
||
Proceeds from revolving credit facility |
4,000 |
|
— |
||
Repayments of revolving credit facility |
(4,000) |
|
— |
||
Proceeds from issuance of commercial paper |
— |
|
377 |
||
Repayments of commercial paper |
— |
|
(377) |
||
Dividends paid |
(1,467) |
|
(1,464) |
||
Other financing activities, net |
(46) |
|
(21) |
||
Net cash provided by/(used for) financing activities |
(2,509) |
|
(1,881) |
||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
(14) |
|
(40) |
||
Cash, cash equivalents, and restricted cash |
|
|
|
||
Net increase/(decrease) |
441 |
|
1,180 |
||
Balance at beginning of period |
2,280 |
|
1,136 |
||
Balance at end of period |
$ |
2,721 |
|
$ |
2,316 |
|
|
||||
|
Schedule 10 |
||||
|
|||||
|
For the Nine Months Ended |
||||
|
2020 |
|
2019 |
||
Net cash provided by/(used for) operating activities |
$ |
3,326 |
|
$ |
1,990 |
Capital expenditures |
(397) |
|
(581) |
||
Free Cash Flow |
$ |
2,929 |
|
$ |
1,409 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20201029005362/en/
Michael.Mullen@kraftheinz.com
ir@kraftheinz.com
Source: