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Name | Symbol | Market | Type |
---|---|---|---|
Kraft Heinz Company | NASDAQ:KHC | NASDAQ | Depository Receipt |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.125 | -0.34% | 36.365 | 36.36 | 36.37 | 36.70 | 36.265 | 36.67 | 1,360,228 | 16:03:04 |
x
|
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
(State or other jurisdiction of incorporation or organization)
|
|
46-2078182
(I.R.S. Employer Identification No.)
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One PPG Place, Pittsburgh, Pennsylvania
(Address of Principal Executive Offices)
|
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15222
(Zip Code)
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Title of each class
|
|
Name of exchange on which registered
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Common stock, $0.01 par value
|
|
The NASDAQ Stock Market LLC
|
Large accelerated filer
x
|
Accelerated filer
o
|
|
Non-accelerated filer
o
(Do not check if a smaller reporting company)
|
Smaller reporting company
o
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Emerging growth company
o
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
|||
Condiments and sauces
|
25
|
%
|
|
24
|
%
|
|
32
|
%
|
Cheese and dairy
|
21
|
%
|
|
21
|
%
|
|
15
|
%
|
Ambient meals
|
9
|
%
|
|
9
|
%
|
|
10
|
%
|
Frozen and chilled meals
|
10
|
%
|
|
10
|
%
|
|
12
|
%
|
Meats and seafood
|
10
|
%
|
|
10
|
%
|
|
8
|
%
|
|
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Majority Owned and Licensed Trademarks
|
United States
|
|
Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Planters, Maxwell House, Capri Sun*, Ore-Ida, Kool-Aid, Jell-O
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Canada
|
|
Kraft, Heinz, Philadelphia, Cracker Barrel, P’Tit Cheese, Maxwell House, Tassimo*, Classico
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Europe
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Heinz, Plasmon, Pudliszki, Honig, HP, Benedicta
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Rest of World
|
|
Heinz, ABC, Master, Quero, Golden Circle, Kraft, Wattie's, Glucon D, Complan
|
•
|
growth through product improvements and renovation, innovation, and line extensions,
|
•
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uncompromising product safety and quality,
|
•
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superior customer satisfaction, and
|
•
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cost reduction.
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Name
|
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Age
|
|
Title
|
Bernardo Hees
|
|
48
|
|
Chief Executive Officer
|
David Knopf
|
|
29
|
|
Executive Vice President and Chief Financial Officer
|
Paulo Basilio
|
|
43
|
|
President of U.S. Commercial Business
|
Pedro Drevon
|
|
35
|
|
Zone President of Latin America
|
Rashida La Lande
|
|
44
|
|
Senior Vice President, Global General Counsel and Corporate Secretary
|
Rafael Oliveira
|
|
43
|
|
Zone President of EMEA
|
Eduardo Pelleissone
|
|
44
|
|
Executive Vice President of Global Operations
|
Carlos Piani
|
|
44
|
|
Zone President of Canada
|
Rodrigo Wickbold
|
|
41
|
|
Zone President of APAC
|
•
|
compliance with U.S. laws affecting operations outside of the United States, including anti-bribery laws such as the FCPA;
|
•
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changes in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities, changes in tax laws or their interpretation, or tax audit implications;
|
•
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the imposition of increased or new tariffs, quotas, trade barriers or similar restrictions on our sales or regulations, taxes or policies that might negatively affect our sales;
|
•
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currency devaluations or fluctuations in currency values;
|
•
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compliance with antitrust and competition laws, data privacy laws, and a variety of other local, national and multi-national regulations and laws in multiple jurisdictions;
|
•
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discriminatory or conflicting fiscal policies in or across foreign jurisdictions;
|
•
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changes in capital controls, including currency exchange controls, government currency policies or other limits on our ability to import raw materials or finished product into various countries or repatriate cash from outside the United States;
|
•
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challenges associated with cross-border product distribution;
|
•
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changes in local regulations and laws, the uncertainty of enforcement of remedies in foreign jurisdictions, and foreign ownership restrictions and the potential for nationalization or expropriation of property or other resources;
|
•
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risks and costs associated with political and economic instability, corruption, anti-American sentiment and social and ethnic unrest in the countries in which we operate;
|
•
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the risks of operating in developing or emerging markets in which there are significant uncertainties regarding the interpretation, application and enforceability of laws and regulations and the enforceability of contract rights and intellectual property rights;
|
•
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risks arising from the significant and rapid fluctuations in currency exchange markets and the decisions and positions that we take to hedge such volatility;
|
•
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changing labor conditions and difficulties in staffing our operations;
|
•
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greater risk of uncollectible accounts and longer collection cycles; and
|
•
|
design, implementation and use of effective control environment processes across our diverse operations and employee base.
|
•
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increasing our vulnerability to general adverse economic and industry conditions;
|
•
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limiting our ability to obtain additional financing for working capital, capital expenditures, research and development, debt service requirements, acquisitions, and general corporate or other purposes;
|
•
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resulting in a downgrade to our credit rating, which could adversely affect our cost of funds, liquidity, and access to capital markets;
|
•
|
restricting us from making strategic acquisitions or causing us to make non-strategic divestitures;
|
•
|
limiting our ability to adjust to changing market conditions and place us at a competitive disadvantage compared to our competitors who are not as highly leveraged;
|
•
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making it more difficult for us to make payments on our existing indebtedness;
|
•
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requiring a substantial portion of cash flows from operations to be dedicated to the payment of principal and interest on our indebtedness, thereby reducing our ability to use our cash flow to fund our operations, capital expenditures and future business opportunities;
|
•
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exposing us to risks related to fluctuations in foreign currency as we earn profits in a variety of currencies around the world and substantially all of our debt is denominated in U.S. dollars; and
|
•
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in the case of any additional indebtedness, exacerbating the risks associated with our substantial financial leverage.
|
|
Owned
|
|
Leased
|
United States
|
41
|
|
1
|
Canada
|
2
|
|
—
|
Europe
|
11
|
|
—
|
Rest of World
|
26
|
|
2
|
|
2017 Quarters
|
|
2016 Quarters
|
||||||||||||||||||||||||||||
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First
|
|
Second
|
|
Third
|
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Fourth
|
|
First
|
|
Second
|
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Third
|
|
Fourth
|
||||||||||||||||
Market price-high
|
$
|
97.77
|
|
|
$
|
93.88
|
|
|
$
|
90.38
|
|
|
$
|
82.48
|
|
|
$
|
79.16
|
|
|
$
|
89.40
|
|
|
$
|
90.54
|
|
|
$
|
90.15
|
|
Market price-low
|
85.41
|
|
|
85.45
|
|
|
77.40
|
|
|
75.21
|
|
|
68.18
|
|
|
76.64
|
|
|
84.25
|
|
|
79.69
|
|
||||||||
Dividends declared
|
0.60
|
|
|
0.60
|
|
|
0.625
|
|
|
0.625
|
|
|
0.575
|
|
|
0.575
|
|
|
0.60
|
|
|
0.60
|
|
|
Kraft Heinz
|
|
S&P 500
|
|
S&P Consumer Staples Food Products
|
||||||
July 6, 2015
|
$
|
100.00
|
|
|
$
|
100.00
|
|
|
$
|
100.00
|
|
December 31, 2015
|
102.07
|
|
|
99.85
|
|
|
107.48
|
|
|||
December 30, 2016
|
125.99
|
|
|
111.79
|
|
|
117.49
|
|
|||
December 29, 2017
|
115.44
|
|
|
136.20
|
|
|
118.95
|
|
|
|
Total Number
of Shares
(a)
|
|
Average Price
Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
(b)
|
|
Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
|
||||||
10/1/2017 - 11/4/2017
|
|
648
|
|
|
$
|
77.25
|
|
|
—
|
|
|
$
|
—
|
|
11/5/2017 - 12/2/2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
12/3/2017 - 12/30/2017
|
|
1,428
|
|
|
80.46
|
|
|
—
|
|
|
—
|
|
||
For the Three Months Ended December 30, 2017
|
|
2,076
|
|
|
|
|
—
|
|
|
|
(a)
|
Includes the following types of share repurchase activity, when they occur: (1) shares repurchased in connection with the exercise of stock options (including periodic repurchases using option exercise proceeds), (2) shares withheld for tax liabilities associated with the vesting of RSUs, and (3) shares repurchased related to employee benefit programs (including our annual bonus swap program) or to offset the dilutive effect of equity issuances.
|
(b)
|
We do not have any publicly announced share repurchase plans or programs.
|
•
|
The consolidated financial statements for the year ended December 30, 2017 (a 52-week period, including a full year of Kraft Heinz results);
|
•
|
The consolidated financial statements for the year ended December 31, 2016 (a 52-week period, including a full year of Kraft Heinz results);
|
•
|
The consolidated financial statements for the year ended January 3, 2016 (a 53-week period, including a full year of Heinz results and post-2015 Merger results of Kraft);
|
•
|
The consolidated financial statements for the year ended December 28, 2014 (a 52-week period, including a full year of Heinz results); and
|
▪
|
The creation of Hawk on February 8, 2013 and the activity from February 8, 2013 to June 7, 2013, which related primarily to the issuance of debt and recognition of associated issuance costs and interest expense; and
|
▪
|
All activity subsequent to the 2013 Merger. Therefore, the 2013 Successor Period includes 29 weeks of operating activity (June 8, 2013 to December 29, 2013). We indicate in the selected financial data table the weeks of operating activities in this period.
|
•
|
The consolidated financial statements of H. J. Heinz Company prior to the 2013 Merger on June 7, 2013, which includes the period from April 29, 2013 through June 7, 2013 (the “2013 Predecessor Period”); this represents six weeks of activity from April 29, 2013 through the 2013 Merger; and
|
•
|
The consolidated financial statements of H. J. Heinz Company for the fiscal year from April 30, 2012 to April 28, 2013 (“Fiscal 2013”).
|
|
Successor
|
|
Predecessor
(H. J. Heinz Company)
|
||||||||||||||||||||||||
|
December 30,
2017
(52 weeks)
|
|
December 31,
2016 (52 weeks) (a) |
|
January 3,
2016 (53 weeks) |
|
December 28,
2014 (52 weeks) |
|
February 8 - December 29,
2013
(29 weeks)
|
|
April 29 - June 7,
2013 (6 weeks) |
|
April 28,
2013
(52 weeks)
|
||||||||||||||
|
(in millions, except per share data)
|
||||||||||||||||||||||||||
Period Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net sales
(b)(d)
|
$
|
26,232
|
|
|
$
|
26,487
|
|
|
$
|
18,338
|
|
|
$
|
10,922
|
|
|
$
|
6,240
|
|
|
$
|
1,113
|
|
|
$
|
11,529
|
|
Income/(loss) from continuing operations
(b)
|
10,990
|
|
|
3,642
|
|
|
647
|
|
|
672
|
|
|
(66
|
)
|
|
(191
|
)
|
|
1,102
|
|
|||||||
Income/(loss) from continuing operations attributable to common shareholders
(b)
|
10,999
|
|
|
3,452
|
|
|
(266
|
)
|
|
(63
|
)
|
|
(1,118
|
)
|
|
(194
|
)
|
|
1,088
|
|
|||||||
Income/(loss) from continuing operations per common share
(b)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Basic
|
9.03
|
|
|
2.84
|
|
|
(0.34
|
)
|
|
(0.17
|
)
|
|
(2.97
|
)
|
|
(0.60
|
)
|
|
3.39
|
|
|||||||
Diluted
|
8.95
|
|
|
2.81
|
|
|
(0.34
|
)
|
|
(0.17
|
)
|
|
(2.97
|
)
|
|
(0.60
|
)
|
|
3.37
|
|
|||||||
As of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total assets
(d)
|
120,232
|
|
|
120,480
|
|
|
122,973
|
|
|
36,571
|
|
|
38,681
|
|
|
NA
|
|
|
12,920
|
|
|||||||
Long-term debt
(c)(d)
|
28,333
|
|
|
29,713
|
|
|
25,151
|
|
|
13,358
|
|
|
14,326
|
|
|
NA
|
|
|
3,830
|
|
|||||||
Redeemable preferred stock
|
—
|
|
|
—
|
|
|
8,320
|
|
|
8,320
|
|
|
8,320
|
|
|
NA
|
|
|
—
|
|
|||||||
Cash dividends per common share
|
2.45
|
|
|
2.35
|
|
|
1.70
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.06
|
|
(a)
|
On December 9, 2016, our Board of Directors approved a change to our fiscal year end from Sunday to Saturday. Effective December 31, 2016, we operate on a 52 or 53-week fiscal year ending on the last Saturday in December in each calendar year. In prior years, we operated on a 52 or 53-week fiscal year ending the Sunday closest to December 31. As a result, we occasionally have a 53rd week in a fiscal year. Our 2015 fiscal year includes a 53rd week of activity.
|
(b)
|
Amounts exclude the operating results and any associated impairment charges and losses on sale related to the Company's Shanghai LongFong Foods business in China and U.S. Foodservice frozen desserts business, which were divested in Fiscal 2013.
|
(c)
|
Amounts exclude the current portion of long-term debt. Additionally, amounts include interest rate swap hedge accounting adjustments of $123 million at April 28, 2013. There were no interest rate swaps requiring such hedge accounting adjustments at December 30, 2017, December 31, 2016, January 3, 2016, December 28, 2014, or December 29, 2013.
|
(d)
|
The increases in net sales, total assets, and long-term debt from December 28, 2014 to January 3, 2016 reflect the impact of the 2015 Merger. See Note 2,
Merger and Acquisition
, to the consolidated financial statements for additional information.
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
% Change
|
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
|
% Change
|
||||||||||
|
(in millions, except per share data)
|
|
|
|
(in millions, except per share data)
|
|
|
||||||||||||||
Net sales
|
$
|
26,232
|
|
|
$
|
26,487
|
|
|
(1.0
|
)%
|
|
$
|
26,487
|
|
|
$
|
18,338
|
|
|
44.4
|
%
|
Operating income
|
6,773
|
|
|
6,142
|
|
|
10.3
|
%
|
|
6,142
|
|
|
2,639
|
|
|
132.7
|
%
|
||||
Net income/(loss) attributable to common shareholders
|
10,999
|
|
|
3,452
|
|
|
218.6
|
%
|
|
3,452
|
|
|
(266
|
)
|
|
nm
|
|
||||
Diluted earnings/(loss) per share
|
8.95
|
|
|
2.81
|
|
|
218.5
|
%
|
|
2.81
|
|
|
(0.34
|
)
|
|
nm
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
% Change
|
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
|
% Change
|
||||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||||
Net sales
|
$
|
26,232
|
|
|
$
|
26,487
|
|
|
(1.0
|
)%
|
|
$
|
26,487
|
|
|
$
|
18,338
|
|
|
44.4
|
%
|
Pro forma net sales
(a)
|
26,232
|
|
|
26,487
|
|
|
(1.0
|
)%
|
|
26,487
|
|
|
27,447
|
|
|
(3.5
|
)%
|
||||
Organic Net Sales
(b)
|
26,169
|
|
|
26,432
|
|
|
(1.0
|
)%
|
|
26,817
|
|
|
26,728
|
|
|
0.3
|
%
|
(a)
|
There were no pro forma adjustments for 2017 or 2016, as Kraft and Heinz were a combined company for these periods. See the
Supplemental Unaudited Pro Forma Condensed Combined Financial Information
at the end of this item.
|
(b)
|
Organic Net Sales is a non-GAAP financial measure. See the
Non-GAAP Financial Measures
section at the end of this item.
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
% Change
|
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
|
% Change
|
||||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||||
Operating income
|
$
|
6,773
|
|
|
$
|
6,142
|
|
|
10.3
|
%
|
|
$
|
6,142
|
|
|
$
|
2,639
|
|
|
132.7
|
%
|
Net income/(loss) attributable to common shareholders
|
10,999
|
|
|
3,452
|
|
|
218.6
|
%
|
|
3,452
|
|
|
(266
|
)
|
|
nm
|
|
||||
Adjusted EBITDA
(a)
|
7,930
|
|
|
7,778
|
|
|
1.9
|
%
|
|
7,778
|
|
|
6,739
|
|
|
15.4
|
%
|
(a)
|
Adjusted EBITDA is a non-GAAP financial measure. See the
Non-GAAP Financial Measures
section at the end of this item.
|
•
|
The effective tax rate was a
98.7%
benefit in 2017 compared to
27.5%
expense in 2016. The change in the effective tax rate was primarily driven by the
$7.0 billion
tax benefit from U.S. Tax Reform, lower tax benefits associated with deferred tax effects of statutory rate changes, and taxes on income of foreign subsidiaries in the current period. See Note 8,
Income Taxes
, to the consolidated financial statements for additional information related to our effective tax rates.
|
•
|
The Series A Preferred Stock was fully redeemed on June 7, 2016. Accordingly, there were no dividends for 2017, compared to
$180 million
in the prior period. See
Equity and Dividends
within this item for additional information.
|
•
|
Interest expense increased to
$1.2 billion
in 2017 compared to
$1.1 billion
in 2016. This increase was primarily due to the May 2016 issuances of long-term debt and borrowings under our commercial paper programs, which began in the second quarter of 2016.
|
•
|
Other expense/(income), net was an expense of
$9 million
in 2017 compared to income of
$15 million
in 2016. This increase was primarily due to a
$36 million
nonmonetary currency devaluation loss in the current period compared to
$24 million
in the prior period related to our Venezuelan operations. See Note 13,
Venezuela - Foreign Currency and Inflation
, to the consolidated financial statements for additional information.
|
•
|
United States Segment Adjusted EBITDA increased primarily driven by Integration Program savings and lower overhead costs in the current period, partially offset by unfavorable key commodity costs, primarily in dairy, meat, and coffee, and volume/mix declines.
|
•
|
Europe Segment Adjusted EBITDA was flat primarily driven by productivity savings that were offset by higher input costs in local currency and the unfavorable impact of foreign currency (1.6 pp).
|
•
|
Rest of World Segment Adjusted EBITDA decreased primarily due to higher input costs in local currency, increased commercial investments, and the unfavorable impact of foreign currency (3.4 pp), partially offset by Organic Net Sales growth.
|
•
|
Canada Segment Adjusted EBITDA decreased primarily due to a decline in Organic Net Sales, partially offset by Integration Program savings, lower overhead costs in the current period, and the favorable impact of foreign currency (1.7 pp).
|
•
|
Savings from the Integration Program and other restructuring activities and favorable pricing net of key commodity costs in United States and Canada.
|
•
|
Non-cash costs of $347 million relating to the fair value adjustment of Kraft’s inventory in purchase accounting in the prior period.
|
•
|
Series A Preferred Stock dividend cash distributions decreased to
$180 million
in 2016 compared to
$900 million
in 2015. This decrease was primarily due to the redemption of the Series A Preferred Stock on June 7, 2016. In addition, due to the December 8, 2015 common stock dividend declaration, we were required to accelerate payment of the March 7, 2016 preferred dividend to December 8, 2015. This resulted in one Series A Preferred Stock dividend payment in the current period compared to five in the prior period.
|
•
|
Other expense/(income), net improved to income of
$15 million
in 2016, compared to expense of
$305 million
in 2015. The decrease was primarily due to a $234 million nonmonetary currency devaluation loss related to our Venezuelan subsidiary in the prior period and call premiums of $105 million related to our 2015 debt refinancing activities.
|
•
|
Interest expense decreased to
$1.1 billion
in 2016 compared to
$1.3 billion
in 2015. This decrease was primarily due to a $236 million write-off of debt issuance costs related to 2015 debt refinancing activities and a $227 million loss released from accumulated other comprehensive income/(losses) due to the early termination of certain interest rate swaps in the prior period as well as lower interest rates following our debt refinancing in connection with the 2015 Merger. These were partially offset by the assumption of $8.6 billion aggregate principal amount of Kraft’s long-term debt obligations in the 2015 Merger, the issuance of new long-term debt in conjunction with the redemption of our Series A Preferred Stock, and new borrowings under our commercial paper program. See Note 16,
Debt
, and Note 17,
Capital Stock
, to the consolidated financial statements for additional information.
|
•
|
The effective tax rate was
27.5%
in 2016, compared to
36.2%
in 2015. The change in effective tax rate was primarily driven by higher earnings repatriation charges and the nondeductible nonmonetary currency devaluation loss related to our Venezuelan subsidiary in the prior period, partially offset by lower tax benefits associated with taxes on income of foreign subsidiaries, tax exempt income, and deferred tax effects of statutory rate changes in the current period. See Note 8,
Income Taxes
, to the consolidated financial statements for a discussion of effective tax rates.
|
•
|
United States Segment Adjusted EBITDA growth was primarily driven by savings from the Integration Program and favorable pricing net of key commodity costs, partially offset by volume/mix declines and the impact of a 53rd week of shipments (approximately 1.5 pp) in the prior period.
|
•
|
Canada Segment Adjusted EBITDA growth was primarily driven by savings from the Integration Program and favorable pricing net of key commodity costs, partially offset by higher input costs in local currency, unfavorable impact of foreign currency (4.4 pp), and a 53rd week of shipments (approximately 1.5 pp) in the prior period.
|
•
|
Europe Segment Adjusted EBITDA decreased primarily due to unfavorable impact of foreign currency (6.5 pp), lower pricing, impact of a 53rd week of shipments (approximately 1.0 pp) in the prior period as well as an increase in marketing investments, partially offset by savings in manufacturing costs.
|
•
|
Rest of World Segment Adjusted EBITDA decreased due to unfavorable impact of foreign currency (17.4 pp), increased marketing investments, and a 53rd week of shipments (approximately 1.0 pp) in the prior period, partially offset by organic sales growth.
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
% Change
|
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
|
% Change
|
||||||||||
|
(in millions, except per share data)
|
|
|
|
(in millions, except per share data)
|
|
|
||||||||||||||
Diluted EPS
|
$
|
8.95
|
|
|
$
|
2.81
|
|
|
218.5
|
%
|
|
$
|
2.81
|
|
|
$
|
(0.34
|
)
|
|
nm
|
|
Adjusted EPS
(a)
|
3.55
|
|
|
3.33
|
|
|
6.6
|
%
|
|
3.33
|
|
|
2.19
|
|
|
52.1
|
%
|
(a)
|
Adjusted EPS is a non-GAAP financial measure. See the
Non-GAAP Financial Measures
section at the end of this item.
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
$ Change
|
|
% Change
|
|||||||
Diluted EPS
|
$
|
8.95
|
|
|
$
|
2.81
|
|
|
$
|
6.14
|
|
|
218.5
|
%
|
Integration and restructuring expenses
|
0.26
|
|
|
0.57
|
|
|
(0.31
|
)
|
|
|
||||
Merger costs
|
—
|
|
|
0.02
|
|
|
(0.02
|
)
|
|
|
||||
Unrealized losses/(gains) on commodity hedges
|
0.01
|
|
|
(0.02
|
)
|
|
0.03
|
|
|
|
||||
Impairment losses
|
0.03
|
|
|
0.03
|
|
|
—
|
|
|
|
||||
Nonmonetary currency devaluation
|
0.03
|
|
|
0.02
|
|
|
0.01
|
|
|
|
||||
Preferred dividend adjustment
|
—
|
|
|
(0.10
|
)
|
|
0.10
|
|
|
|
||||
U.S. Tax Reform
|
(5.73
|
)
|
|
—
|
|
|
(5.73
|
)
|
|
|
||||
Adjusted EPS
(a)
|
$
|
3.55
|
|
|
$
|
3.33
|
|
|
$
|
0.22
|
|
|
6.6
|
%
|
|
|
|
|
|
|
|
|
|||||||
Key drivers of change in Adjusted EPS
(a)
:
|
|
|
|
|
|
|
|
|||||||
Results of operations
|
|
|
|
|
$
|
0.06
|
|
|
|
|||||
Change in preferred dividends
|
|
|
|
|
0.25
|
|
|
|
||||||
Change in interest expense
|
|
|
|
|
(0.06
|
)
|
|
|
||||||
Change in other expense/(income), net
|
|
|
|
|
(0.01
|
)
|
|
|
||||||
Change in effective tax rate and other
|
|
|
|
|
(0.02
|
)
|
|
|
||||||
|
|
|
|
|
$
|
0.22
|
|
|
|
(a)
|
Adjusted EPS is a non-GAAP financial measure. See the
Non-GAAP Financial Measures
section at the end of this item.
|
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
|
$ Change
|
|
% Change
|
|||||||
Diluted EPS
|
$
|
2.81
|
|
|
$
|
(0.34
|
)
|
|
$
|
3.15
|
|
|
nm
|
|
Pro forma adjustments
(a)
|
—
|
|
|
1.04
|
|
|
(1.04
|
)
|
|
|
||||
Pro forma diluted EPS
|
2.81
|
|
|
0.70
|
|
|
2.11
|
|
|
301.4
|
%
|
|||
Integration and restructuring expenses
|
0.57
|
|
|
0.61
|
|
|
(0.04
|
)
|
|
|
||||
Merger costs
|
0.02
|
|
|
0.49
|
|
|
(0.47
|
)
|
|
|
||||
Unrealized losses/(gains) on commodity hedges
|
(0.02
|
)
|
|
(0.02
|
)
|
|
—
|
|
|
|
||||
Impairment losses
|
0.03
|
|
|
0.03
|
|
|
—
|
|
|
|
||||
Losses/(gains) on sale of business
|
—
|
|
|
(0.01
|
)
|
|
0.01
|
|
|
|
||||
Nonmonetary currency devaluation
|
0.02
|
|
|
0.24
|
|
|
(0.22
|
)
|
|
|
||||
Preferred dividend adjustment
|
(0.10
|
)
|
|
0.15
|
|
|
(0.25
|
)
|
|
|
||||
Adjusted EPS
(c)
|
$
|
3.33
|
|
|
$
|
2.19
|
|
|
$
|
1.14
|
|
|
52.1
|
%
|
|
|
|
|
|
|
|
|
|||||||
Key drivers of change in Adjusted EPS
(b)
:
|
|
|
|
|
|
|
|
|||||||
Results of operations
|
|
|
|
|
$
|
0.77
|
|
|
|
|||||
Change in preferred dividends
|
|
|
|
|
0.34
|
|
|
|
||||||
Change in interest expense
|
|
|
|
|
(0.04
|
)
|
|
|
||||||
Change in other expense/(income), net
|
|
|
|
|
(0.03
|
)
|
|
|
||||||
53rd week of shipments
|
|
|
|
|
(0.03
|
)
|
|
|
||||||
Change in effective tax rate and other
|
|
|
|
|
0.13
|
|
|
|
||||||
|
|
|
|
|
$
|
1.14
|
|
|
|
(a)
|
There were no pro forma adjustments for 2016, as Kraft and Heinz were a combined company for the entire period. See the
Supplemental Unaudited Pro Forma Condensed Combined Financial Information
at the end of this item.
|
(b)
|
Adjusted EPS is a non-GAAP financial measure. See the
Non-GAAP Financial Measures
section at the end of this item.
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
|
(in millions)
|
||||||||||
Net sales:
|
|
|
|
|
|
||||||
United States
|
$
|
18,353
|
|
|
$
|
18,641
|
|
|
$
|
10,943
|
|
Canada
|
2,190
|
|
|
2,309
|
|
|
1,437
|
|
|||
Europe
|
2,393
|
|
|
2,366
|
|
|
2,656
|
|
|||
Rest of World
|
3,296
|
|
|
3,171
|
|
|
3,302
|
|
|||
Total net sales
|
$
|
26,232
|
|
|
$
|
26,487
|
|
|
$
|
18,338
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
|
(in millions)
|
||||||||||
Pro forma net sales
(a)
:
|
|
|
|
|
|
||||||
United States
|
$
|
18,353
|
|
|
$
|
18,641
|
|
|
$
|
18,932
|
|
Canada
|
2,190
|
|
|
2,309
|
|
|
2,386
|
|
|||
Europe
|
2,393
|
|
|
2,366
|
|
|
2,657
|
|
|||
Rest of World
|
3,296
|
|
|
3,171
|
|
|
3,472
|
|
|||
Total pro forma net sales
|
$
|
26,232
|
|
|
$
|
26,487
|
|
|
$
|
27,447
|
|
(a)
|
There were no pro forma adjustments for 2017 or 2016, as Kraft and Heinz were a combined company for these periods. See the
Supplemental Unaudited Pro Forma Condensed Combined Financial Information
at the end of this item.
|
|
2017 Compared to 2016
|
|
2016 Compared to 2015
|
||||||||||||
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||||
|
(in millions)
|
||||||||||||||
Organic Net Sales
(a)
:
|
|
|
|
|
|
|
|
||||||||
United States
|
$
|
18,353
|
|
|
$
|
18,641
|
|
|
$
|
18,641
|
|
|
$
|
18,699
|
|
Canada
|
2,148
|
|
|
2,309
|
|
|
2,393
|
|
|
2,359
|
|
||||
Europe
|
2,385
|
|
|
2,366
|
|
|
2,520
|
|
|
2,588
|
|
||||
Rest of World
|
3,283
|
|
|
3,116
|
|
|
3,263
|
|
|
3,082
|
|
||||
Total Organic Net Sales
|
$
|
26,169
|
|
|
$
|
26,432
|
|
|
$
|
26,817
|
|
|
$
|
26,728
|
|
(a)
|
Organic Net Sales is a non-GAAP financial measure. See the
Non-GAAP Financial Measures
section at the end of this item.
|
|
Pro Forma Net Sales
(a)
|
|
Impact of Currency
|
|
Impact of Divestitures
|
|
Impact of 53rd Week
|
|
Organic Net Sales
|
|
Price
|
|
Volume/Mix
|
||
2017 Compared to 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
United States
|
(1.5
|
)%
|
|
0.0 pp
|
|
0.0 pp
|
|
0.0 pp
|
|
(1.5
|
)%
|
|
0.4 pp
|
|
(1.9) pp
|
Canada
|
(5.2
|
)%
|
|
1.8 pp
|
|
0.0 pp
|
|
0.0 pp
|
|
(7.0
|
)%
|
|
(1.7) pp
|
|
(5.3) pp
|
Europe
|
1.1
|
%
|
|
0.3 pp
|
|
0.0 pp
|
|
0.0 pp
|
|
0.8
|
%
|
|
(0.9) pp
|
|
1.7 pp
|
Rest of World
|
3.9
|
%
|
|
(1.5) pp
|
|
0.0 pp
|
|
0.0 pp
|
|
5.4
|
%
|
|
4.6 pp
|
|
0.8 pp
|
Kraft Heinz
|
(1.0
|
)%
|
|
0.0 pp
|
|
0.0 pp
|
|
0.0 pp
|
|
(1.0
|
)%
|
|
0.5 pp
|
|
(1.5) pp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
2016 Compared to 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
United States
|
(1.5
|
)%
|
|
0.0 pp
|
|
0.0 pp
|
|
(1.2) pp
|
|
(0.3
|
)%
|
|
0.2 pp
|
|
(0.5) pp
|
Canada
|
(3.2
|
)%
|
|
(3.5) pp
|
|
0.0 pp
|
|
(1.1) pp
|
|
1.4
|
%
|
|
0.6 pp
|
|
0.8 pp
|
Europe
|
(11.0
|
)%
|
|
(5.8) pp
|
|
(1.6) pp
|
|
(1.0) pp
|
|
(2.6
|
)%
|
|
(2.5) pp
|
|
(0.1) pp
|
Rest of World
|
(8.7
|
)%
|
|
(13.2) pp
|
|
0.0 pp
|
|
(1.4) pp
|
|
5.9
|
%
|
|
3.2 pp
|
|
2.7 pp
|
Kraft Heinz
|
(3.5
|
)%
|
|
(2.5) pp
|
|
(0.1) pp
|
|
(1.2) pp
|
|
0.3
|
%
|
|
0.3 pp
|
|
0.0 pp
|
(a)
|
There were no pro forma adjustments for 2017 or 2016, as Kraft and Heinz were a combined company for these periods. See the
Supplemental Unaudited Pro Forma Condensed Combined Financial Information
at the end of this item.
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
|
(in millions)
|
||||||||||
Segment Adjusted EBITDA:
|
|
|
|
|
|
||||||
United States
|
$
|
6,001
|
|
|
$
|
5,862
|
|
|
$
|
4,690
|
|
Canada
|
639
|
|
|
642
|
|
|
541
|
|
|||
Europe
|
781
|
|
|
781
|
|
|
938
|
|
|||
Rest of World
|
617
|
|
|
657
|
|
|
742
|
|
|||
General corporate expenses
|
(108
|
)
|
|
(164
|
)
|
|
(172
|
)
|
|||
Depreciation and amortization (excluding integration and restructuring expenses)
|
(583
|
)
|
|
(536
|
)
|
|
(779
|
)
|
|||
Integration and restructuring expenses
|
(457
|
)
|
|
(1,012
|
)
|
|
(1,117
|
)
|
|||
Merger costs
|
—
|
|
|
(30
|
)
|
|
(194
|
)
|
|||
Amortization of inventory step-up
|
—
|
|
|
—
|
|
|
(347
|
)
|
|||
Unrealized gains/(losses) on commodity hedges
|
(19
|
)
|
|
38
|
|
|
41
|
|
|||
Impairment losses
|
(49
|
)
|
|
(53
|
)
|
|
(58
|
)
|
|||
Gains/(losses) on sale of business
|
—
|
|
|
—
|
|
|
21
|
|
|||
Nonmonetary currency devaluation
|
—
|
|
|
(4
|
)
|
|
(57
|
)
|
|||
Equity award compensation expense (excluding integration and restructuring expenses)
|
(49
|
)
|
|
(39
|
)
|
|
(61
|
)
|
|||
Other pro forma adjustments
|
—
|
|
|
—
|
|
|
(1,549
|
)
|
|||
Operating income
|
6,773
|
|
|
6,142
|
|
|
2,639
|
|
|||
Interest expense
|
1,234
|
|
|
1,134
|
|
|
1,321
|
|
|||
Other expense/(income), net
|
9
|
|
|
(15
|
)
|
|
305
|
|
|||
Income/(loss) before income taxes
|
$
|
5,530
|
|
|
$
|
5,023
|
|
|
$
|
1,013
|
|
|
2017 Compared to 2016
|
|
2016 Compared to 2015
|
||||||||||||||||||
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
% Change
|
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
|
% Change
|
||||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||||
Net sales
|
$
|
18,353
|
|
|
$
|
18,641
|
|
|
(1.5
|
)%
|
|
$
|
18,641
|
|
|
$
|
10,943
|
|
|
70.3
|
%
|
Pro forma net sales
(a)
|
18,353
|
|
|
18,641
|
|
|
(1.5
|
)%
|
|
18,641
|
|
|
18,932
|
|
|
(1.5
|
)%
|
||||
Organic Net Sales
(b)
|
18,353
|
|
|
18,641
|
|
|
(1.5
|
)%
|
|
18,641
|
|
|
18,699
|
|
|
(0.3
|
)%
|
||||
Segment Adjusted EBITDA
|
6,001
|
|
|
5,862
|
|
|
2.4
|
%
|
|
5,862
|
|
|
4,690
|
|
|
25.0
|
%
|
(a)
|
There were no pro forma adjustments for 2017 or 2016, as Kraft and Heinz were a combined company for these periods. See the
Supplemental Unaudited Pro Forma Condensed Combined Financial Information
at the end of this item.
|
(b)
|
Organic Net Sales is a non-GAAP financial measure. See the
Non-GAAP Financial Measures
section at the end of this item.
|
|
2017 Compared to 2016
|
|
2016 Compared to 2015
|
||||||||||||||||||
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
% Change
|
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
|
% Change
|
||||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||||
Net sales
|
$
|
2,190
|
|
|
$
|
2,309
|
|
|
(5.2
|
)%
|
|
$
|
2,309
|
|
|
$
|
1,437
|
|
|
60.7
|
%
|
Pro forma net sales
(a)
|
2,190
|
|
|
2,309
|
|
|
(5.2
|
)%
|
|
2,309
|
|
|
2,386
|
|
|
(3.2
|
)%
|
||||
Organic Net Sales
(b)
|
2,148
|
|
|
2,309
|
|
|
(7.0
|
)%
|
|
2,393
|
|
|
2,359
|
|
|
1.4
|
%
|
||||
Segment Adjusted EBITDA
|
639
|
|
|
642
|
|
|
(0.5
|
)%
|
|
642
|
|
|
541
|
|
|
18.7
|
%
|
(a)
|
There were no pro forma adjustments for 2017 or 2016, as Kraft and Heinz were a combined company for these periods. See the
Supplemental Unaudited Pro Forma Condensed Combined Financial Information
at the end of this item.
|
(b)
|
Organic Net Sales is a non-GAAP financial measure. See the
Non-GAAP Financial Measures
section at the end of this item.
|
|
2017 Compared to 2016
|
|
2016 Compared to 2015
|
||||||||||||||||||
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
% Change
|
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
|
% Change
|
||||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||||
Net sales
|
$
|
2,393
|
|
|
$
|
2,366
|
|
|
1.1
|
%
|
|
$
|
2,366
|
|
|
$
|
2,656
|
|
|
(10.9
|
)%
|
Pro forma net sales
(a)
|
2,393
|
|
|
2,366
|
|
|
1.1
|
%
|
|
2,366
|
|
|
2,657
|
|
|
(11.0
|
)%
|
||||
Organic Net Sales
(b)
|
2,385
|
|
|
2,366
|
|
|
0.8
|
%
|
|
2,520
|
|
|
2,588
|
|
|
(2.6
|
)%
|
||||
Segment Adjusted EBITDA
|
781
|
|
|
781
|
|
|
—
|
%
|
|
781
|
|
|
938
|
|
|
(16.7
|
)%
|
(a)
|
There were no pro forma adjustments for 2017 or 2016, as Kraft and Heinz were a combined company for these periods. See the
Supplemental Unaudited Pro Forma Condensed Combined Financial Information
at the end of this item.
|
(b)
|
Organic Net Sales is a non-GAAP financial measure. See the
Non-GAAP Financial Measures
section at the end of this item.
|
|
2017 Compared to 2016
|
|
2016 Compared to 2015
|
||||||||||||||||||
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
% Change
|
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
|
% Change
|
||||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||||
Net sales
|
$
|
3,296
|
|
|
$
|
3,171
|
|
|
3.9
|
%
|
|
$
|
3,171
|
|
|
$
|
3,302
|
|
|
(4.0
|
)%
|
Pro forma net sales
(a)
|
3,296
|
|
|
3,171
|
|
|
3.9
|
%
|
|
3,171
|
|
|
3,472
|
|
|
(8.7
|
)%
|
||||
Organic Net Sales
(b)
|
3,283
|
|
|
3,116
|
|
|
5.4
|
%
|
|
3,263
|
|
|
3,082
|
|
|
5.9
|
%
|
||||
Segment Adjusted EBITDA
|
617
|
|
|
657
|
|
|
(6.1
|
)%
|
|
657
|
|
|
742
|
|
|
(11.5
|
)%
|
(a)
|
There were no pro forma adjustments for 2017 or 2016, as Kraft and Heinz were a combined company for these periods. See the
Supplemental Unaudited Pro Forma Condensed Combined Financial Information
at the end of this item.
|
(b)
|
Organic Net Sales is a non-GAAP financial measure. See the
Non-GAAP Financial Measures
section at the end of this item.
|
|
One-Percentage-Point
|
||||||
|
Increase
|
|
(Decrease)
|
||||
Effect on annual service and interest cost
|
$
|
4
|
|
|
$
|
(3
|
)
|
Effect on postretirement benefit obligation
|
55
|
|
|
(47
|
)
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||
|
100-Basis-Point
|
|
100-Basis-Point
|
||||||||||||
|
Increase
|
|
Decrease
|
|
Increase
|
|
Decrease
|
||||||||
Effect of change in discount rate on pension costs
|
$
|
9
|
|
|
$
|
(19
|
)
|
|
$
|
8
|
|
|
$
|
(21
|
)
|
Effect of change in expected rate of return on plan assets on pension costs
|
(46
|
)
|
|
46
|
|
|
(41
|
)
|
|
41
|
|
||||
Effect of change in discount rate on postretirement costs
|
(4
|
)
|
|
(9
|
)
|
|
—
|
|
|
(1
|
)
|
||||
Effect of change in expected rate of return on plan assets on postretirement costs
|
(11
|
)
|
|
11
|
|
|
—
|
|
|
—
|
|
|
Payments Due
|
|||||||||||||
|
2018
|
|
2019-2020
|
|
2021-2022
|
|
2023 and Thereafter
|
|
Total
|
|||||
Long-term debt
(a)
|
3,939
|
|
|
5,653
|
|
|
6,200
|
|
|
32,779
|
|
|
48,571
|
|
Capital leases
(b)
|
35
|
|
|
34
|
|
|
64
|
|
|
1
|
|
|
134
|
|
Operating leases
(c)
|
103
|
|
|
164
|
|
|
99
|
|
|
165
|
|
|
531
|
|
Purchase obligations
(d)
|
1,558
|
|
|
1,251
|
|
|
446
|
|
|
439
|
|
|
3,694
|
|
Other long-term liabilities
(e)
|
80
|
|
|
106
|
|
|
94
|
|
|
280
|
|
|
560
|
|
Total
|
5,715
|
|
|
7,208
|
|
|
6,903
|
|
|
33,664
|
|
|
53,490
|
|
(a)
|
Amounts represent the expected cash payments of our long-term debt, including interest on variable and fixed rate long-term debt. Interest on variable rate long-term debt is calculated based on interest rates at
December 30, 2017
.
|
(b)
|
Amounts represent the expected cash payments of our capital leases, including expected cash payments of interest expense.
|
(c)
|
Operating leases represent the minimum rental commitments under non-cancelable operating leases.
|
(d)
|
We have purchase obligations for materials, supplies, property, plant and equipment, and co-packing, storage and distribution services based on projected needs to be utilized in the normal course of business. Other purchase obligations include commitments for marketing, advertising, capital expenditures, information technology, and professional services.
Arrangements are considered purchase obligations if a contract specifies all significant terms, including fixed or minimum quantities to be purchased, a pricing structure, and approximate timing of the transaction. A few of these obligations are long-term and are based on minimum purchase requirements. Certain purchase obligations contain variable pricing components, and, as a result, actual cash payments are expected to fluctuate based on changes in these variable components. Due to the proprietary nature of some of our materials and processes, certain supply contracts contain penalty provisions for early terminations. We do not believe that a material amount of penalties is reasonably likely to be incurred under these contracts based upon historical experience and current expectations. We exclude amounts reflected on the consolidated balance sheet as accounts payable and accrued liabilities from the table above.
|
(e)
|
Other long-term liabilities primarily consist of estimated payments for the one-time toll charge related to U.S. tax reform, as well as postretirement benefit commitments. Certain other long-term liabilities related to income taxes, insurance accruals, and other accruals included on the consolidated balance sheet are excluded from the above table as we are unable to estimate the timing of payments for these items. Future payments related to other long-term liabilities decreased primarily due to payments of $1.2 billion in 2017 to pre-fund a portion of our U.S. postretirement plan benefits. See Note 10,
Postemployment Benefits
, to the consolidated financial statements for additional information.
|
•
|
Application of the acquisition method of accounting;
|
•
|
The issuance of Heinz common stock to the Sponsors in connection with the equity investments;
|
•
|
The pre-closing Heinz share conversion;
|
•
|
The exchange of one share of Kraft Heinz common stock for each share of Kraft common stock; and
|
•
|
Conformance of accounting policies.
|
|
Kraft Heinz
|
|
Historical Kraft
|
|
Pro Forma Adjustments
|
|
Pro Forma
|
||||||||
Net sales
|
$
|
18,338
|
|
|
$
|
9,109
|
|
|
$
|
—
|
|
|
$
|
27,447
|
|
Cost of products sold
|
12,577
|
|
|
6,103
|
|
|
(381
|
)
|
|
18,299
|
|
||||
Gross profit
|
5,761
|
|
|
3,006
|
|
|
381
|
|
|
9,148
|
|
||||
Selling, general and administrative expenses
|
3,122
|
|
|
1,532
|
|
|
(41
|
)
|
|
4,613
|
|
||||
Operating income
|
2,639
|
|
|
1,474
|
|
|
422
|
|
|
4,535
|
|
||||
Interest expense
|
1,321
|
|
|
247
|
|
|
(40
|
)
|
|
1,528
|
|
||||
Other expense/(income), net
|
305
|
|
|
(16
|
)
|
|
—
|
|
|
289
|
|
||||
Income/(loss) before income taxes
|
1,013
|
|
|
1,243
|
|
|
462
|
|
|
2,718
|
|
||||
Provision for/(benefit from) income taxes
|
366
|
|
|
400
|
|
|
178
|
|
|
944
|
|
||||
Net income/(loss)
|
647
|
|
|
843
|
|
|
284
|
|
|
1,774
|
|
||||
Net income/(loss) attributable to noncontrolling interest
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
||||
Net income/(loss) attributable to Kraft Heinz
|
634
|
|
|
843
|
|
|
284
|
|
|
1,761
|
|
||||
Preferred dividends
|
900
|
|
|
—
|
|
|
—
|
|
|
900
|
|
||||
Net income/(loss) attributable to common shareholders
|
$
|
(266
|
)
|
|
$
|
843
|
|
|
$
|
284
|
|
|
$
|
861
|
|
|
|
|
|
|
|
|
|
||||||||
Basic common shares outstanding
|
786
|
|
|
—
|
|
|
416
|
|
|
1,202
|
|
||||
Diluted common shares outstanding
|
786
|
|
|
—
|
|
|
436
|
|
|
1,222
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Per share data applicable to common shareholders:
|
|
|
|
|
|
|
|
||||||||
Basic earnings/(loss)
|
$
|
(0.34
|
)
|
|
$
|
—
|
|
|
$
|
1.06
|
|
|
$
|
0.72
|
|
Diluted earnings/(loss)
|
(0.34
|
)
|
|
—
|
|
|
1.04
|
|
|
0.70
|
|
|
January 3,
2016 (53 weeks) |
||
Impact to cost of products sold:
|
|
||
Postemployment benefit costs
(a)
|
$
|
(34
|
)
|
Inventory step-up
(b)
|
(347
|
)
|
|
Impact to cost of products sold
|
$
|
(381
|
)
|
|
|
||
Impact to selling, general and administrative expenses:
|
|
||
Depreciation and amortization
(c)
|
$
|
84
|
|
Compensation expense
(d)
|
31
|
|
|
Postemployment benefit costs
(a)
|
11
|
|
|
Deal costs
(e)
|
(167
|
)
|
|
Impact to selling, general and administrative expenses
|
$
|
(41
|
)
|
|
|
||
Impact to interest expense:
|
|
||
Interest expense
(f)
|
$
|
(40
|
)
|
Impact to interest expense
|
$
|
(40
|
)
|
(a)
|
Represents the change to align Kraft's accounting policy to our accounting policy for postemployment benefit plans. Kraft historically elected a mark-to-market accounting policy and recognized net actuarial gains or losses and changes in the fair value of plan assets immediately in earnings upon remeasurement. Our policy is to initially record such items in other comprehensive income/(loss). Also represents the elimination of Kraft’s historical amortization of postemployment benefit plan prior service credits.
|
(b)
|
Represents the elimination of nonrecurring non-cash costs related to the fair value adjustment of Kraft’s inventory. See Note 2,
Merger and Acquisition
, to the consolidated financial statements for additional information on the determination of fair values.
|
(c)
|
Represents incremental amortization resulting from the fair value adjustment of Kraft’s definite-lived intangible assets in connection with the 2015 Merger. The net change in depreciation expense resulting from the fair value adjustment of property, plant, and equipment was insignificant. See Note 2,
Merger and Acquisition
, to the consolidated financial statements for additional information on the determination of fair values.
|
(d)
|
Represents the incremental compensation expense due to the fair value remeasurement of certain of Kraft’s equity awards in connection with the 2015 Merger. See Note 9,
Employees’ Stock Incentive Plans
, to the consolidated financial statements for additional information on the conversion of Kraft’s equity awards in connection with the 2015 Merger.
|
(e)
|
Represents the elimination of non-recurring deal costs incurred in connection with the 2015 Merger.
|
(f)
|
Represents the incremental change in interest expense resulting from the fair value adjustment of Kraft’s long-term debt in connection with the 2015 Merger, including the elimination of the historical amortization of deferred financing fees and amortization of original issuance discount.
|
|
Net Sales
|
|
Impact of Currency
|
|
Organic Net Sales
|
|
Price
|
|
Volume/Mix
|
||||||
2017 (52 weeks)
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
$
|
18,353
|
|
|
$
|
—
|
|
|
$
|
18,353
|
|
|
|
|
|
Canada
|
2,190
|
|
|
42
|
|
|
2,148
|
|
|
|
|
|
|||
Europe
|
2,393
|
|
|
8
|
|
|
2,385
|
|
|
|
|
|
|||
Rest of World
|
3,296
|
|
|
13
|
|
|
3,283
|
|
|
|
|
|
|||
|
$
|
26,232
|
|
|
$
|
63
|
|
|
$
|
26,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
2016 (52 weeks)
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
$
|
18,641
|
|
|
$
|
—
|
|
|
$
|
18,641
|
|
|
|
|
|
Canada
|
2,309
|
|
|
—
|
|
|
2,309
|
|
|
|
|
|
|||
Europe
|
2,366
|
|
|
—
|
|
|
2,366
|
|
|
|
|
|
|||
Rest of World
|
3,171
|
|
|
55
|
|
|
3,116
|
|
|
|
|
|
|||
|
$
|
26,487
|
|
|
$
|
55
|
|
|
$
|
26,432
|
|
|
|
|
|
|
Pro Forma Net Sales
(a)
|
|
Impact of Currency
|
|
Impact of Divestitures
|
|
Impact of 53rd Week
|
|
Organic Net Sales
|
|
Price
|
|
Volume/Mix
|
||||||||||
2016 (52 weeks)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States
|
$
|
18,641
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,641
|
|
|
|
|
|
Canada
|
2,309
|
|
|
(84
|
)
|
|
—
|
|
|
—
|
|
|
2,393
|
|
|
|
|
|
|||||
Europe
|
2,366
|
|
|
(154
|
)
|
|
—
|
|
|
—
|
|
|
2,520
|
|
|
|
|
|
|||||
Rest of World
|
3,171
|
|
|
(92
|
)
|
|
—
|
|
|
—
|
|
|
3,263
|
|
|
|
|
|
|||||
|
$
|
26,487
|
|
|
$
|
(330
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
26,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2015 (53 weeks)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States
|
$
|
18,932
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
233
|
|
|
$
|
18,699
|
|
|
|
|
|
Canada
|
2,386
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
2,359
|
|
|
|
|
|
|||||
Europe
|
2,657
|
|
|
—
|
|
|
42
|
|
|
27
|
|
|
2,588
|
|
|
|
|
|
|||||
Rest of World
|
3,472
|
|
|
351
|
|
|
—
|
|
|
39
|
|
|
3,082
|
|
|
|
|
|
|||||
|
$
|
27,447
|
|
|
$
|
351
|
|
|
$
|
42
|
|
|
$
|
326
|
|
|
$
|
26,728
|
|
|
|
|
|
Year-over-year growth rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
United States
|
(1.5
|
)%
|
|
0.0 pp
|
|
0.0 pp
|
|
(1.2) pp
|
|
(0.3
|
)%
|
|
0.2 pp
|
|
(0.5) pp
|
Canada
|
(3.2
|
)%
|
|
(3.5) pp
|
|
0.0 pp
|
|
(1.1) pp
|
|
1.4
|
%
|
|
0.6 pp
|
|
0.8 pp
|
Europe
|
(11.0
|
)%
|
|
(5.8) pp
|
|
(1.6) pp
|
|
(1.0) pp
|
|
(2.6
|
)%
|
|
(2.5) pp
|
|
(0.1) pp
|
Rest of World
|
(8.7
|
)%
|
|
(13.2) pp
|
|
0.0 pp
|
|
(1.4) pp
|
|
5.9
|
%
|
|
3.2 pp
|
|
2.7 pp
|
Kraft Heinz
|
(3.5
|
)%
|
|
(2.5) pp
|
|
(0.1) pp
|
|
(1.2) pp
|
|
0.3
|
%
|
|
0.3 pp
|
|
0.0 pp
|
(a)
|
There were no pro forma adjustments for 2016, as Kraft and Heinz were a combined company for the entire period. See the
Supplemental Unaudited Pro Forma Condensed Combined Financial Information
at the end of this item.
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
Pro forma net income/(loss)
(a)
|
$
|
10,990
|
|
|
$
|
3,642
|
|
|
$
|
1,774
|
|
Interest expense
|
1,234
|
|
|
1,134
|
|
|
1,528
|
|
|||
Other expense/(income), net
|
9
|
|
|
(15
|
)
|
|
289
|
|
|||
Provision for/(benefit from) income taxes
|
(5,460
|
)
|
|
1,381
|
|
|
944
|
|
|||
Operating income
|
6,773
|
|
|
6,142
|
|
|
4,535
|
|
|||
Depreciation and amortization (excluding integration and restructuring expenses)
|
583
|
|
|
536
|
|
|
779
|
|
|||
Integration and restructuring expenses
|
457
|
|
|
1,012
|
|
|
1,117
|
|
|||
Merger costs
|
—
|
|
|
30
|
|
|
194
|
|
|||
Unrealized losses/(gains) on commodity hedges
|
19
|
|
|
(38
|
)
|
|
(41
|
)
|
|||
Impairment losses
|
49
|
|
|
53
|
|
|
58
|
|
|||
Losses/(gains) on sale of business
|
—
|
|
|
—
|
|
|
(21
|
)
|
|||
Nonmonetary currency devaluation
|
—
|
|
|
4
|
|
|
57
|
|
|||
Equity award compensation expense (excluding integration and restructuring expenses)
|
49
|
|
|
39
|
|
|
61
|
|
|||
Adjusted EBITDA
|
$
|
7,930
|
|
|
$
|
7,778
|
|
|
$
|
6,739
|
|
(a)
|
There were no pro forma adjustments for 2017 or 2016, as Kraft and Heinz were a combined company for these periods. See the
Supplemental Unaudited Pro Forma Condensed Combined Financial Information
at the end of this item.
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
Pro forma diluted EPS
(a)
|
$
|
8.95
|
|
|
$
|
2.81
|
|
|
$
|
0.70
|
|
Integration and restructuring expenses
(b)(c)
|
0.26
|
|
|
0.57
|
|
|
0.61
|
|
|||
Merger costs
(b)(d)
|
—
|
|
|
0.02
|
|
|
0.49
|
|
|||
Unrealized losses/(gains) on commodity hedges
(b)(c)
|
0.01
|
|
|
(0.02
|
)
|
|
(0.02
|
)
|
|||
Impairment losses
(b)(c)
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
|||
Losses/(gains) on sale of business
(b)(c)
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|||
Nonmonetary currency devaluation
(b)(e)
|
0.03
|
|
|
0.02
|
|
|
0.24
|
|
|||
Preferred dividend adjustment
(f)
|
—
|
|
|
(0.10
|
)
|
|
0.15
|
|
|||
U.S. Tax Reform
(g)
|
(5.73
|
)
|
|
—
|
|
|
—
|
|
|||
Adjusted EPS
|
$
|
3.55
|
|
|
$
|
3.33
|
|
|
$
|
2.19
|
|
(a)
|
There were no pro forma adjustments for 2017 or 2016, as Kraft and Heinz were a combined company for these periods. See the
Supplemental Unaudited Pro Forma Condensed Combined Financial Information
at the end of this item.
|
(b)
|
Income tax expense associated with these items is based on applicable jurisdictional tax rates and deductibility assessments of individual items.
|
(c)
|
Refer to the reconciliation of pro forma net income/(loss) to Adjusted EBITDA for the related gross expenses.
|
(d)
|
Merger costs included the following gross expenses:
|
•
|
Expenses recorded in cost of products sold were $2 million in 2016
and $6 million in 2015
(there were no such expenses in 2017)
;
|
•
|
Expenses recorded in SG&A were $28 million in 2016
and $188 million in 2015
(there were no such expenses in 2017)
;
|
•
|
Expenses recorded in interest expense were $466 million in 2015 (there were no such expenses in 2017 or 2016); and,
|
•
|
Expenses recorded in other expense/(income), net, were $144 million in 2015 (there were no such expenses in 2017 or 2016).
|
(e)
|
Nonmonetary currency devaluation included the following gross expenses:
|
•
|
Expenses recorded in cost of products sold were $4 million in 2016
and $57 million in 2015
(there were no such expenses in 2017); and
|
•
|
Expenses recorded in other expense/(income), net, were $36 million in 2017
,
$24 million in 2016
, and $234 million in 2015.
|
(f)
|
For Adjusted EPS, we present the impact of the Series A Preferred Stock dividend payments on an accrual basis. Accordingly, we included adjustments to EPS to exclude $180 million of Series A Preferred Stock dividends from the fourth quarter of 2015 (to reflect the March 7, 2016 Series A Preferred Stock dividend that was paid in December 2015), to include such $180 million Series A Preferred Stock dividend payment in the first quarter of 2016, and to exclude $51 million of Series A Preferred Stock dividends from the second quarter of 2016 (to reflect that it was redeemed on June 7, 2016).
|
(g)
|
U.S. Tax Reform included a tax benefit of $7.0 billion in 2017 related to enactment of the Tax Cuts and Jobs Act by the U.S. government on December 22, 2017. There were no such expenses in 2016
or 2015. See
Overview
at the beginning of this item for additional information.
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
||||
Commodity contracts
|
$
|
23
|
|
|
$
|
39
|
|
Foreign currency contracts
|
173
|
|
|
179
|
|
||
Cross-currency swap contracts
|
287
|
|
|
306
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
Net sales
|
$
|
26,232
|
|
|
$
|
26,487
|
|
|
$
|
18,338
|
|
Cost of products sold
|
16,529
|
|
|
16,901
|
|
|
12,577
|
|
|||
Gross profit
|
9,703
|
|
|
9,586
|
|
|
5,761
|
|
|||
Selling, general and administrative expenses
|
2,930
|
|
|
3,444
|
|
|
3,122
|
|
|||
Operating income
|
6,773
|
|
|
6,142
|
|
|
2,639
|
|
|||
Interest expense
|
1,234
|
|
|
1,134
|
|
|
1,321
|
|
|||
Other expense/(income), net
|
9
|
|
|
(15
|
)
|
|
305
|
|
|||
Income/(loss) before income taxes
|
5,530
|
|
|
5,023
|
|
|
1,013
|
|
|||
Provision for/(benefit from) income taxes
|
(5,460
|
)
|
|
1,381
|
|
|
366
|
|
|||
Net income/(loss)
|
10,990
|
|
|
3,642
|
|
|
647
|
|
|||
Net income/(loss) attributable to noncontrolling interest
|
(9
|
)
|
|
10
|
|
|
13
|
|
|||
Net income/(loss) attributable to Kraft Heinz
|
10,999
|
|
|
3,632
|
|
|
634
|
|
|||
Preferred dividends
|
—
|
|
|
180
|
|
|
900
|
|
|||
Net income/(loss) attributable to common shareholders
|
$
|
10,999
|
|
|
$
|
3,452
|
|
|
$
|
(266
|
)
|
Per share data applicable to common shareholders:
|
|
|
|
|
|
||||||
Basic earnings/(loss)
|
$
|
9.03
|
|
|
$
|
2.84
|
|
|
$
|
(0.34
|
)
|
Diluted earnings/(loss)
|
8.95
|
|
|
2.81
|
|
|
(0.34
|
)
|
|||
Dividends declared
|
2.45
|
|
|
2.35
|
|
|
1.70
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
Net income/(loss)
|
$
|
10,990
|
|
|
$
|
3,642
|
|
|
$
|
647
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
1,184
|
|
|
(986
|
)
|
|
(1,604
|
)
|
|||
Net deferred gains/(losses) on net investment hedges
|
(353
|
)
|
|
226
|
|
|
506
|
|
|||
Net actuarial gains/(losses) arising during the period
|
69
|
|
|
(40
|
)
|
|
23
|
|
|||
Prior service credits/(costs) arising during the period
|
17
|
|
|
97
|
|
|
923
|
|
|||
Reclassification of net postemployment benefit losses/(gains)
|
(309
|
)
|
|
(207
|
)
|
|
(85
|
)
|
|||
Net deferred gains/(losses) on cash flow hedges
|
(113
|
)
|
|
46
|
|
|
(6
|
)
|
|||
Net deferred losses/(gains) on cash flow hedges reclassified to net income
|
85
|
|
|
(87
|
)
|
|
120
|
|
|||
Total other comprehensive income/(loss)
|
580
|
|
|
(951
|
)
|
|
(123
|
)
|
|||
Total comprehensive income/(loss)
|
11,570
|
|
|
2,691
|
|
|
524
|
|
|||
Comprehensive income/(loss) attributable to noncontrolling interest
|
(3
|
)
|
|
16
|
|
|
(13
|
)
|
|||
Comprehensive income/(loss) attributable to Kraft Heinz
|
$
|
11,573
|
|
|
$
|
2,675
|
|
|
$
|
537
|
|
|
December 30, 2017
|
|
December 31, 2016
|
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,629
|
|
|
$
|
4,204
|
|
Trade receivables (net of allowances of $23 at December 30, 2017 and $20 at December 31, 2016)
|
921
|
|
|
769
|
|
||
Sold receivables
|
353
|
|
|
129
|
|
||
Income taxes receivable
|
582
|
|
|
260
|
|
||
Inventories
|
2,815
|
|
|
2,684
|
|
||
Other current assets
|
966
|
|
|
707
|
|
||
Total current assets
|
7,266
|
|
|
8,753
|
|
||
Property, plant and equipment, net
|
7,120
|
|
|
6,688
|
|
||
Goodwill
|
44,824
|
|
|
44,125
|
|
||
Intangible assets, net
|
59,449
|
|
|
59,297
|
|
||
Other assets
|
1,573
|
|
|
1,617
|
|
||
TOTAL ASSETS
|
$
|
120,232
|
|
|
$
|
120,480
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Commercial paper and other short-term debt
|
$
|
460
|
|
|
$
|
645
|
|
Current portion of long-term debt
|
2,743
|
|
|
2,046
|
|
||
Trade payables
|
4,449
|
|
|
3,996
|
|
||
Accrued marketing
|
680
|
|
|
749
|
|
||
Accrued postemployment costs
|
51
|
|
|
157
|
|
||
Income taxes payable
|
152
|
|
|
255
|
|
||
Interest payable
|
419
|
|
|
415
|
|
||
Other current liabilities
|
1,178
|
|
|
1,238
|
|
||
Total current liabilities
|
10,132
|
|
|
9,501
|
|
||
Long-term debt
|
28,333
|
|
|
29,713
|
|
||
Deferred income taxes
|
14,076
|
|
|
20,848
|
|
||
Accrued postemployment costs
|
427
|
|
|
2,038
|
|
||
Other liabilities
|
1,017
|
|
|
806
|
|
||
TOTAL LIABILITIES
|
53,985
|
|
|
62,906
|
|
||
Commitments and Contingencies (Note 15)
|
|
|
|
||||
Redeemable noncontrolling interest
|
6
|
|
|
—
|
|
||
Equity:
|
|
|
|
||||
Common stock, $0.01 par value (5,000 shares authorized; 1,221 shares issued and 1,219
shares outstanding at December 30, 2017; 1,219 shares issued and 1,217 shares outstanding at December 31, 2016)
|
12
|
|
|
12
|
|
||
Additional paid-in capital
|
58,711
|
|
|
58,593
|
|
||
Retained earnings/(deficit)
|
8,589
|
|
|
588
|
|
||
Accumulated other comprehensive income/(losses)
|
(1,054
|
)
|
|
(1,628
|
)
|
||
Treasury stock, at cost (2 shares at December 30, 2017 and 2 shares at December 31, 2016)
|
(224
|
)
|
|
(207
|
)
|
||
Total shareholders' equity
|
66,034
|
|
|
57,358
|
|
||
Noncontrolling interest
|
207
|
|
|
216
|
|
||
TOTAL EQUITY
|
66,241
|
|
|
57,574
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
120,232
|
|
|
$
|
120,480
|
|
|
Common Stock
|
|
Warrants
|
|
Additional Paid-in Capital
|
|
Retained Earnings/(Deficit)
|
|
Accumulated Other Comprehensive Income/(Losses)
|
|
Treasury Stock
|
|
Noncontrolling Interest
|
|
Total Equity
|
||||||||||||||||
Balance at December 28, 2014
|
$
|
4
|
|
|
$
|
367
|
|
|
$
|
7,320
|
|
|
$
|
—
|
|
|
$
|
(574
|
)
|
|
$
|
—
|
|
|
$
|
219
|
|
|
$
|
7,336
|
|
Net income/(loss) excluding redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
634
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
647
|
|
||||||||
Other comprehensive income/(loss) excluding redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(97
|
)
|
|
—
|
|
|
(18
|
)
|
|
(115
|
)
|
||||||||
Dividends declared-Series A Preferred Stock
|
—
|
|
|
—
|
|
|
(360
|
)
|
|
(540
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(900
|
)
|
||||||||
Dividends declared-common stock
|
—
|
|
|
—
|
|
|
(1,972
|
)
|
|
(92
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,064
|
)
|
||||||||
Dividends declared-noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
(6
|
)
|
||||||||
Exercise of warrants
|
—
|
|
|
(367
|
)
|
|
367
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Issuance of common stock to Sponsors
|
2
|
|
|
—
|
|
|
9,998
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,000
|
|
||||||||
Acquisition of Kraft Foods Group, Inc.
|
6
|
|
|
—
|
|
|
42,849
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42,855
|
|
||||||||
Exercise of stock options, issuance of other stock awards, and other
|
—
|
|
|
—
|
|
|
173
|
|
|
(2
|
)
|
|
—
|
|
|
(31
|
)
|
|
—
|
|
|
140
|
|
||||||||
Balance at January 3, 2016
|
12
|
|
|
—
|
|
|
58,375
|
|
|
—
|
|
|
(671
|
)
|
|
(31
|
)
|
|
208
|
|
|
57,893
|
|
||||||||
Net income/(loss) excluding redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
3,632
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
3,642
|
|
||||||||
Other comprehensive income/(loss) excluding redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(957
|
)
|
|
—
|
|
|
6
|
|
|
(951
|
)
|
||||||||
Dividends declared-Series A Preferred Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(180
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(180
|
)
|
||||||||
Dividends declared-common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,862
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,862
|
)
|
||||||||
Dividends declared-noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
(8
|
)
|
||||||||
Exercise of stock options, issuance of other stock awards, and other
|
—
|
|
|
—
|
|
|
218
|
|
|
(2
|
)
|
|
—
|
|
|
(176
|
)
|
|
—
|
|
|
40
|
|
||||||||
Balance at December 31, 2016
|
12
|
|
|
—
|
|
|
58,593
|
|
|
588
|
|
|
(1,628
|
)
|
|
(207
|
)
|
|
216
|
|
|
57,574
|
|
||||||||
Net income/(loss) excluding redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
10,999
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
10,994
|
|
||||||||
Other comprehensive income/(loss) excluding redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
574
|
|
|
—
|
|
|
6
|
|
|
580
|
|
||||||||
Dividends declared-common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,988
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,988
|
)
|
||||||||
Dividends declared-noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(10
|
)
|
||||||||
Exercise of stock options, issuance of other stock awards, and other
|
—
|
|
|
—
|
|
|
118
|
|
|
(10
|
)
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
91
|
|
||||||||
Balance at December 30, 2017
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
58,711
|
|
|
$
|
8,589
|
|
|
$
|
(1,054
|
)
|
|
$
|
(224
|
)
|
|
$
|
207
|
|
|
$
|
66,241
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
||||||
Net income/(loss)
|
$
|
10,990
|
|
|
$
|
3,642
|
|
|
$
|
647
|
|
Adjustments to reconcile net income/(loss) to operating cash flows:
|
|
|
|
|
|
|
|
||||
Depreciation and amortization
|
1,036
|
|
|
1,337
|
|
|
740
|
|
|||
Amortization of postretirement benefit plans prior service costs/(credits)
|
(328
|
)
|
|
(333
|
)
|
|
(112
|
)
|
|||
Amortization of inventory step-up
|
—
|
|
|
—
|
|
|
347
|
|
|||
Equity award compensation expense
|
46
|
|
|
46
|
|
|
133
|
|
|||
Deferred income tax provision/(benefit)
|
(6,467
|
)
|
|
(29
|
)
|
|
(317
|
)
|
|||
Pension and postretirement benefit plan contributions
|
(1,518
|
)
|
|
(344
|
)
|
|
(286
|
)
|
|||
Impairment losses on indefinite-lived intangible assets
|
49
|
|
|
—
|
|
|
58
|
|
|||
Nonmonetary currency devaluation
|
36
|
|
|
24
|
|
|
234
|
|
|||
Write-off of debt issuance costs
|
2
|
|
|
—
|
|
|
236
|
|
|||
Other items, net
|
76
|
|
|
(134
|
)
|
|
225
|
|
|||
Changes in current assets and liabilities:
|
|
|
|
|
|
||||||
Trade receivables
|
(2,629
|
)
|
|
(2,055
|
)
|
|
(915
|
)
|
|||
Inventories
|
(251
|
)
|
|
(130
|
)
|
|
25
|
|
|||
Accounts payable
|
464
|
|
|
943
|
|
|
(119
|
)
|
|||
Other current assets
|
(67
|
)
|
|
(42
|
)
|
|
114
|
|
|||
Other current liabilities
|
(912
|
)
|
|
(276
|
)
|
|
262
|
|
|||
Net cash provided by/(used for) operating activities
|
527
|
|
|
2,649
|
|
|
1,272
|
|
|||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
||||||
Cash receipts on sold receivables
|
2,286
|
|
|
2,589
|
|
|
1,331
|
|
|||
Capital expenditures
|
(1,217
|
)
|
|
(1,247
|
)
|
|
(648
|
)
|
|||
Payments to acquire Kraft Foods Group, Inc., net of cash acquired
|
—
|
|
|
—
|
|
|
(9,468
|
)
|
|||
Proceeds from net investment hedges
|
6
|
|
|
91
|
|
|
488
|
|
|||
Other investing activities, net
|
81
|
|
|
19
|
|
|
(12
|
)
|
|||
Net cash provided by/(used for) investing activities
|
1,156
|
|
|
1,452
|
|
|
(8,309
|
)
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
||||||
Repayments of long-term debt
|
(2,644
|
)
|
|
(86
|
)
|
|
(12,314
|
)
|
|||
Proceeds from issuance of long-term debt
|
1,496
|
|
|
6,981
|
|
|
14,834
|
|
|||
Debt prepayment and extinguishment costs
|
—
|
|
|
—
|
|
|
(105
|
)
|
|||
Debt issuance costs
|
(6
|
)
|
|
(53
|
)
|
|
(98
|
)
|
|||
Proceeds from issuance of commercial paper
|
6,043
|
|
|
6,680
|
|
|
—
|
|
|||
Repayments of commercial paper
|
(6,249
|
)
|
|
(6,043
|
)
|
|
—
|
|
|||
Proceeds from issuance of common stock to Sponsors
|
—
|
|
|
—
|
|
|
10,000
|
|
|||
Dividends paid-Series A Preferred Stock
|
—
|
|
|
(180
|
)
|
|
(900
|
)
|
|||
Dividends paid-common stock
|
(2,888
|
)
|
|
(3,584
|
)
|
|
(1,302
|
)
|
|||
Redemption of Series A Preferred Stock
|
—
|
|
|
(8,320
|
)
|
|
—
|
|
|||
Other financing activities, net
|
22
|
|
|
(16
|
)
|
|
(68
|
)
|
|||
Net cash provided by/(used for) financing activities
|
(4,226
|
)
|
|
(4,621
|
)
|
|
10,047
|
|
|||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
|
57
|
|
|
(137
|
)
|
|
(408
|
)
|
|||
Cash, cash equivalents, and restricted cash
|
|
|
|
|
|
||||||
Net increase/(decrease)
|
(2,486
|
)
|
|
(657
|
)
|
|
2,602
|
|
|||
Balance at beginning of period
|
4,255
|
|
|
4,912
|
|
|
2,310
|
|
|||
Balance at end of period
|
$
|
1,769
|
|
|
$
|
4,255
|
|
|
$
|
4,912
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
Non-cash investing activities:
|
|
|
|
|
|
||||||
Beneficial interest obtained in exchange for securitized trade receivables
|
$
|
2,519
|
|
|
$
|
2,213
|
|
|
$
|
1,609
|
|
Cash paid during the period for:
|
|
|
|
|
|
||||||
Interest
|
$
|
1,269
|
|
|
$
|
1,176
|
|
|
$
|
704
|
|
Income taxes
|
1,206
|
|
|
1,619
|
|
|
577
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
Increase/(decrease) to cost of products sold
|
$
|
558
|
|
|
$
|
373
|
|
|
$
|
202
|
|
Increase/(decrease) to selling, general and administrative expenses
|
78
|
|
|
93
|
|
|
(30
|
)
|
|||
Increase/(decrease) to operating income
(a)
|
(636
|
)
|
|
(466
|
)
|
|
(172
|
)
|
(a)
|
Includes amortization of prior service costs/(credits), curtailments, special/contractual termination benefits, and certain settlements. These components of net pension and postretirement cost/(benefit) are excluded from Segment Adjusted EBITDA and totaled approximately
$(480) million
in 2017,
$(340) million
in 2016, and
$(120) million
in 2015.
|
•
|
Grants the ability to hedge the risk associated with the change in a contractually specified component of the purchase or sale of a non-financial item instead of the total contractual price, which could allow more commodity contracts to qualify for hedge accounting;
|
•
|
Requires us to defer the entire change in value of the derivative, including the effective and ineffective portion, into other comprehensive income until the hedged item impacts net income. When released, the deferred hedge gains and losses, including the ineffective portion, will be recognized in the same statement of income line affected by the hedged item;
|
•
|
Allows us to recognize changes in the fair value of excluded components in other comprehensive income (which will be amortized into net income over the life of the derivative) or in net income in the related period;
|
•
|
Changes hedge effectiveness testing, including timing and allowable methods of testing; and,
|
•
|
Requires additional tabular disclosures in the footnotes to the financial statements.
|
Aggregate fair value of Kraft common stock
|
$
|
42,502
|
|
$16.50 per share special cash dividend
|
9,782
|
|
|
Fair value of replacement equity awards
|
353
|
|
|
Total consideration exchanged
|
$
|
52,637
|
|
Cash
|
$
|
314
|
|
Other current assets
|
3,423
|
|
|
Property, plant and equipment
|
4,179
|
|
|
Identifiable intangible assets
|
47,771
|
|
|
Other non-current assets
|
214
|
|
|
Trade and other payables
|
(3,026
|
)
|
|
Long-term debt
|
(9,286
|
)
|
|
Net postemployment benefits and other non-current liabilities
|
(4,739
|
)
|
|
Deferred income tax liabilities
|
(16,675
|
)
|
|
Net assets acquired
|
22,175
|
|
|
Goodwill on acquisition
|
30,462
|
|
|
Total consideration
|
52,637
|
|
|
Fair value of shares exchanged and equity awards
|
42,855
|
|
|
Total cash consideration paid to Kraft shareholders
|
9,782
|
|
|
Cash and cash equivalents of Kraft at the 2015 Merger Date
|
314
|
|
|
Acquisition of business, net of cash on hand
|
$
|
9,468
|
|
|
Fair Value
|
|
Weighted Average Life
|
||
|
(in millions of dollars)
|
|
(in years)
|
||
Indefinite-lived trademarks
|
$
|
43,104
|
|
|
|
Definite-lived trademarks
|
1,690
|
|
|
24
|
|
Customer-related assets
|
2,977
|
|
|
29
|
|
Total
|
$
|
47,771
|
|
|
|
|
January 3,
2016 (53 weeks) |
||
Net sales
|
$
|
27,447
|
|
Net income
|
1,761
|
|
|
Basic earnings per share
|
0.72
|
|
|
Diluted earnings per share
|
0.70
|
|
•
|
Organization costs (approximately
$400 million
) associated with streamlining and simplifying our operating structure, resulting in workforce reduction (primarily severance and employee benefit costs).
|
•
|
Footprint costs (approximately
$1.3 billion
) associated with optimizing our production and supply chain network, resulting in workforce reduction and facility closures and consolidations (primarily asset-related costs and severance and employee benefit costs).
|
•
|
Other costs (approximately
$400 million
) incurred as a direct result of integration activities, including other exit costs (primarily lease and contract terminations) and other implementation costs (primarily professional services and other third-party fees).
|
|
Severance and Employee Benefit Costs
|
|
Other Exit Costs
(a)
|
|
Total
|
||||||
Balance at December 31, 2016
|
$
|
99
|
|
|
$
|
10
|
|
|
$
|
109
|
|
Charges/(credits)
|
(142
|
)
|
|
13
|
|
|
(129
|
)
|
|||
Cash payments
|
(70
|
)
|
|
(7
|
)
|
|
(77
|
)
|
|||
Non-cash utilization
|
137
|
|
|
6
|
|
|
143
|
|
|||
Balance at December 30, 2017
|
$
|
24
|
|
|
$
|
22
|
|
|
$
|
46
|
|
|
Severance and Employee Benefit Costs
|
|
Other Exit Costs
(a)
|
|
Total
|
||||||
Balance at December 31, 2016
|
$
|
12
|
|
|
$
|
25
|
|
|
$
|
37
|
|
Charges/(credits)
|
50
|
|
|
10
|
|
|
60
|
|
|||
Cash payments
|
(38
|
)
|
|
(9
|
)
|
|
(47
|
)
|
|||
Non-cash utilization
|
(8
|
)
|
|
(1
|
)
|
|
(9
|
)
|
|||
Balance at December 30, 2017
|
$
|
16
|
|
|
$
|
25
|
|
|
$
|
41
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
Severance and employee benefit costs - COGS
|
$
|
(130
|
)
|
|
$
|
53
|
|
|
$
|
119
|
|
Severance and employee benefit costs - SG&A
|
38
|
|
|
104
|
|
|
519
|
|
|||
Asset-related costs - COGS
|
190
|
|
|
496
|
|
|
186
|
|
|||
Asset-related costs - SG&A
|
28
|
|
|
41
|
|
|
7
|
|
|||
Other costs - COGS
|
264
|
|
|
162
|
|
|
99
|
|
|||
Other costs - SG&A
|
67
|
|
|
156
|
|
|
93
|
|
|||
|
$
|
457
|
|
|
$
|
1,012
|
|
|
$
|
1,023
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
United States
|
$
|
292
|
|
|
$
|
759
|
|
|
$
|
790
|
|
Canada
|
34
|
|
|
45
|
|
|
47
|
|
|||
Europe
|
54
|
|
|
85
|
|
|
142
|
|
|||
Rest of World
|
14
|
|
|
6
|
|
|
12
|
|
|||
General corporate expenses
|
63
|
|
|
117
|
|
|
32
|
|
|||
|
$
|
457
|
|
|
$
|
1,012
|
|
|
$
|
1,023
|
|
|
December 30, 2017
|
|
December 31, 2016
|
||||
Cash and cash equivalents
|
$
|
1,629
|
|
|
$
|
4,204
|
|
Restricted cash included in other assets (current)
|
140
|
|
|
42
|
|
||
Restricted cash included in other assets (noncurrent)
|
—
|
|
|
9
|
|
||
Cash, cash equivalents, and restricted cash
|
$
|
1,769
|
|
|
$
|
4,255
|
|
|
December 30, 2017
|
|
December 31, 2016
|
||||
Packaging and ingredients
|
$
|
560
|
|
|
$
|
542
|
|
Work in process
|
439
|
|
|
388
|
|
||
Finished product
|
1,816
|
|
|
1,754
|
|
||
Inventories
|
$
|
2,815
|
|
|
$
|
2,684
|
|
|
December 30, 2017
|
|
December 31, 2016
|
||||
Land
|
$
|
250
|
|
|
$
|
264
|
|
Buildings and improvements
|
2,232
|
|
|
1,884
|
|
||
Equipment and other
|
5,364
|
|
|
4,770
|
|
||
Construction in progress
|
1,368
|
|
|
1,600
|
|
||
|
9,214
|
|
|
8,518
|
|
||
Accumulated depreciation
|
(2,094
|
)
|
|
(1,830
|
)
|
||
Property, plant and equipment, net
|
$
|
7,120
|
|
|
$
|
6,688
|
|
|
United States
|
|
Canada
|
|
Europe
|
|
Rest of World
|
|
Total
|
||||||||||
Balance at December 31, 2016
|
$
|
33,696
|
|
|
$
|
4,913
|
|
|
$
|
2,778
|
|
|
$
|
2,738
|
|
|
$
|
44,125
|
|
Translation adjustments and other
|
4
|
|
|
333
|
|
|
281
|
|
|
81
|
|
|
699
|
|
|||||
Balance at December 30, 2017
|
$
|
33,700
|
|
|
$
|
5,246
|
|
|
$
|
3,059
|
|
|
$
|
2,819
|
|
|
$
|
44,824
|
|
Balance at December 31, 2016
|
$
|
53,307
|
|
Translation adjustments
|
397
|
|
|
Impairment losses on indefinite-lived intangible assets
|
(49
|
)
|
|
Balance at December 30, 2017
|
$
|
53,655
|
|
|
December 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
Gross
|
|
Accumulated
Amortization
|
|
Net
|
|
Gross
|
|
Accumulated
Amortization
|
|
Net
|
||||||||||||
Trademarks
|
$
|
2,386
|
|
|
$
|
(288
|
)
|
|
$
|
2,098
|
|
|
$
|
2,337
|
|
|
$
|
(172
|
)
|
|
$
|
2,165
|
|
Customer-related assets
|
4,231
|
|
|
(544
|
)
|
|
3,687
|
|
|
4,184
|
|
|
(369
|
)
|
|
3,815
|
|
||||||
Other
|
14
|
|
|
(5
|
)
|
|
9
|
|
|
13
|
|
|
(3
|
)
|
|
10
|
|
||||||
|
$
|
6,631
|
|
|
$
|
(837
|
)
|
|
$
|
5,794
|
|
|
$
|
6,534
|
|
|
$
|
(544
|
)
|
|
$
|
5,990
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
Income/(loss) before income taxes:
|
|
|
|
|
|
||||||
United States
|
$
|
3,876
|
|
|
$
|
3,358
|
|
|
$
|
(13
|
)
|
International
|
1,654
|
|
|
1,665
|
|
|
1,026
|
|
|||
Total
|
$
|
5,530
|
|
|
$
|
5,023
|
|
|
$
|
1,013
|
|
|
|
|
|
|
|
||||||
Provision for/(benefit from) income taxes:
|
|
|
|
|
|
||||||
Current:
|
|
|
|
|
|
||||||
U.S. federal
|
$
|
757
|
|
|
$
|
1,095
|
|
|
$
|
427
|
|
U.S. state and local
|
(46
|
)
|
|
76
|
|
|
22
|
|
|||
International
|
296
|
|
|
239
|
|
|
234
|
|
|||
|
1,007
|
|
|
1,410
|
|
|
683
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
U.S. federal
|
(6,570
|
)
|
|
31
|
|
|
(173
|
)
|
|||
U.S. state and local
|
101
|
|
|
(60
|
)
|
|
(70
|
)
|
|||
International
|
2
|
|
|
—
|
|
|
(74
|
)
|
|||
|
(6,467
|
)
|
|
(29
|
)
|
|
(317
|
)
|
|||
Total provision for/(benefit from) income taxes
|
$
|
(5,460
|
)
|
|
$
|
1,381
|
|
|
$
|
366
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
|||
U.S. federal statutory tax rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
Increase/(decrease) resulting from:
|
|
|
|
|
|
|||
Tax on income of foreign subsidiaries
|
(4.7
|
)%
|
|
(3.6
|
)%
|
|
(11.8
|
)%
|
Domestic manufacturing deduction
|
(1.5
|
)%
|
|
(1.9
|
)%
|
|
(2.9
|
)%
|
U.S. state and local income taxes, net of federal tax benefit
|
1.1
|
%
|
|
0.8
|
%
|
|
(0.6
|
)%
|
Earnings repatriation
|
0.4
|
%
|
|
0.4
|
%
|
|
21.9
|
%
|
Tax exempt income
|
(0.7
|
)%
|
|
(3.3
|
)%
|
|
(10.9
|
)%
|
Deferred tax effect of statutory tax rate changes
|
0.3
|
%
|
|
(2.0
|
)%
|
|
(10.4
|
)%
|
Audit settlements and changes in uncertain tax positions
|
(0.1
|
)%
|
|
1.8
|
%
|
|
6.2
|
%
|
Venezuela nondeductible devaluation loss
|
—
|
%
|
|
0.2
|
%
|
|
9.9
|
%
|
Impact of U.S. Tax Reform
|
(127.3
|
)%
|
|
—
|
%
|
|
—
|
%
|
Other
|
(1.2
|
)%
|
|
0.1
|
%
|
|
(0.2
|
)%
|
Effective tax rate
|
(98.7
|
)%
|
|
27.5
|
%
|
|
36.2
|
%
|
•
|
The 2016 tax year included a benefit related to the impact on deferred taxes of a 10 basis point reduction in the state tax rate and a 100 basis point statutory rate reduction in the United Kingdom.
|
•
|
The 2015 tax year included a benefit related to the impact on deferred taxes of a 200 basis point statutory rate reduction in the United Kingdom.
|
|
December 30, 2017
|
|
December 31, 2016
|
||||
Deferred income tax liabilities:
|
|
|
|
||||
Intangible assets, net
|
$
|
13,637
|
|
|
$
|
20,946
|
|
Property, plant and equipment, net
|
641
|
|
|
1,035
|
|
||
Other
|
293
|
|
|
532
|
|
||
Deferred income tax liabilities
|
14,571
|
|
|
22,513
|
|
||
Deferred income tax assets:
|
|
|
|
||||
Benefit plans
|
(212
|
)
|
|
(1,025
|
)
|
||
Other
|
(428
|
)
|
|
(782
|
)
|
||
Deferred income tax assets
|
(640
|
)
|
|
(1,807
|
)
|
||
Valuation allowance
|
80
|
|
|
89
|
|
||
Net deferred income tax liabilities
|
$
|
14,011
|
|
|
$
|
20,795
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
Balance at the beginning of the period
|
$
|
389
|
|
|
$
|
353
|
|
|
$
|
71
|
|
Increases for tax positions of prior years
|
2
|
|
|
59
|
|
|
25
|
|
|||
Decreases for tax positions of prior years
|
(35
|
)
|
|
(18
|
)
|
|
(9
|
)
|
|||
Increases based on tax positions related to the current year
|
135
|
|
|
62
|
|
|
33
|
|
|||
Increases due to acquisitions of businesses
|
—
|
|
|
—
|
|
|
242
|
|
|||
Decreases due to settlements with taxing authorities
|
(59
|
)
|
|
(62
|
)
|
|
—
|
|
|||
Decreases due to lapse of statute of limitations
|
(24
|
)
|
|
(5
|
)
|
|
(9
|
)
|
|||
Balance at the end of the period
|
$
|
408
|
|
|
$
|
389
|
|
|
$
|
353
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
Risk-free interest rate
|
2.25
|
%
|
|
1.63
|
%
|
|
1.70
|
%
|
|||
Expected term
|
7.5 years
|
|
|
7.5 years
|
|
|
6.3 years
|
|
|||
Expected volatility
|
19.6
|
%
|
|
22.0
|
%
|
|
22.9
|
%
|
|||
Expected dividend yield
|
2.8
|
%
|
|
3.1
|
%
|
|
1.5
|
%
|
|||
Weighted average grant date fair value per share
|
$
|
14.24
|
|
|
$
|
12.48
|
|
|
$
|
9.60
|
|
|
January 3,
2016 (53 weeks) |
||
Risk-free interest rate
|
1.72
|
%
|
|
Expected volatility
|
20.10
|
%
|
|
Expected dividend yield
|
3.00
|
%
|
|
Weighted average fair value on conversion date
|
$
|
35.65
|
|
|
Number of Stock Options
|
|
Weighted Average Exercise Price
(per share) |
|
Aggregate Intrinsic Value
(in millions) |
|
Average Remaining Contractual Term
|
||||
Outstanding at December 31, 2016
|
20,560,140
|
|
|
$
|
37.39
|
|
|
|
|
|
|
Granted
|
1,579,040
|
|
|
88.98
|
|
|
|
|
|
||
Forfeited
|
(661,762
|
)
|
|
52.50
|
|
|
|
|
|
||
Exercised
|
(2,187,854
|
)
|
|
32.73
|
|
|
|
|
|
||
Outstanding at December 30, 2017
|
19,289,564
|
|
|
41.63
|
|
|
716
|
|
|
6 years
|
|
Exercisable at December 30, 2017
|
7,462,422
|
|
|
38.78
|
|
|
291
|
|
|
5 years
|
|
Number of Stock Options
|
|
Weighted Average Grant Date Fair Value
(per share) |
|||
Unvested options at December 31, 2016
|
11,899,949
|
|
|
$
|
8.26
|
|
Granted
|
1,579,040
|
|
|
14.24
|
|
|
Vested
|
(1,001,730
|
)
|
|
15.09
|
|
|
Forfeited
|
(650,117
|
)
|
|
9.89
|
|
|
Unvested options at December 30, 2017
|
11,827,142
|
|
|
8.36
|
|
|
Number of Units
|
|
Weighted Average Grant Date Fair Value
(per share)
|
|||
Outstanding at December 31, 2016
|
806,744
|
|
|
$
|
71.95
|
|
Granted
|
1,686,254
|
|
|
85.03
|
|
|
Forfeited
|
(251,604
|
)
|
|
83.00
|
|
|
Vested
|
(141,749
|
)
|
|
73.01
|
|
|
Outstanding at December 30, 2017
|
2,099,645
|
|
|
81.05
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
Pre-tax compensation cost
|
$
|
46
|
|
|
$
|
46
|
|
|
$
|
133
|
|
Related tax benefit
|
(14
|
)
|
|
(15
|
)
|
|
(48
|
)
|
|||
After-tax compensation cost
|
$
|
32
|
|
|
$
|
31
|
|
|
$
|
85
|
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||
|
December 30, 2017
|
|
December 31, 2016
|
|
December 30, 2017
|
|
December 31, 2016
|
||||||||
Benefit obligation at beginning of year
|
$
|
5,157
|
|
|
$
|
5,990
|
|
|
$
|
3,099
|
|
|
$
|
2,892
|
|
Service cost
|
11
|
|
|
13
|
|
|
19
|
|
|
25
|
|
||||
Interest cost
|
178
|
|
|
203
|
|
|
66
|
|
|
87
|
|
||||
Participants' contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||
Benefits paid
|
(224
|
)
|
|
(268
|
)
|
|
(161
|
)
|
|
(158
|
)
|
||||
Actuarial losses/(gains)
|
270
|
|
|
195
|
|
|
120
|
|
|
540
|
|
||||
Plan amendments
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
Currency
|
—
|
|
|
—
|
|
|
264
|
|
|
(281
|
)
|
||||
Settlements
|
(692
|
)
|
|
(966
|
)
|
|
(1
|
)
|
|
(12
|
)
|
||||
Special/contractual termination benefits
|
19
|
|
|
—
|
|
|
9
|
|
|
3
|
|
||||
Other
|
—
|
|
|
(10
|
)
|
|
51
|
|
|
—
|
|
||||
Benefit obligation at end of year
|
4,719
|
|
|
5,157
|
|
|
3,464
|
|
|
3,099
|
|
||||
Fair value of plan assets at beginning of year
|
4,788
|
|
|
5,282
|
|
|
3,628
|
|
|
3,428
|
|
||||
Actual return on plan assets
|
613
|
|
|
435
|
|
|
289
|
|
|
712
|
|
||||
Participants' contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||
Employer contributions
|
300
|
|
|
311
|
|
|
30
|
|
|
33
|
|
||||
Benefits paid
|
(224
|
)
|
|
(268
|
)
|
|
(161
|
)
|
|
(158
|
)
|
||||
Currency
|
—
|
|
|
—
|
|
|
322
|
|
|
(378
|
)
|
||||
Settlements
|
(692
|
)
|
|
(966
|
)
|
|
(1
|
)
|
|
(12
|
)
|
||||
Other
|
—
|
|
|
(6
|
)
|
|
49
|
|
|
—
|
|
||||
Fair value of plan assets at end of year
|
4,785
|
|
|
4,788
|
|
|
4,156
|
|
|
3,628
|
|
||||
Net pension liability/(asset) recognized at end of year
|
$
|
(66
|
)
|
|
$
|
369
|
|
|
$
|
(692
|
)
|
|
$
|
(529
|
)
|
|
December 30, 2017
|
|
December 31, 2016
|
||||
Other assets (long-term assets)
|
$
|
871
|
|
|
$
|
641
|
|
Accrued postemployment costs (current liabilities)
|
(41
|
)
|
|
(3
|
)
|
||
Accrued postemployment costs (long-term liabilities)
|
(72
|
)
|
|
(478
|
)
|
||
Net pension asset/(liability) recognized
|
$
|
758
|
|
|
$
|
160
|
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||
|
December 30, 2017
|
|
December 31, 2016
|
|
December 30, 2017
|
|
December 31, 2016
|
||||||||
Projected benefit obligation
|
$
|
—
|
|
|
$
|
3,669
|
|
|
$
|
1,368
|
|
|
$
|
527
|
|
Accumulated benefit obligation
|
—
|
|
|
3,669
|
|
|
1,360
|
|
|
527
|
|
||||
Fair value of plan assets
|
—
|
|
|
3,282
|
|
|
1,254
|
|
|
437
|
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||
|
December 30, 2017
|
|
December 31, 2016
|
|
December 30, 2017
|
|
December 31, 2016
|
||||||||
Projected benefit obligation
|
$
|
—
|
|
|
$
|
3,669
|
|
|
$
|
1,400
|
|
|
$
|
539
|
|
Accumulated benefit obligation
|
—
|
|
|
3,669
|
|
|
1,392
|
|
|
534
|
|
||||
Fair value of plan assets
|
—
|
|
|
3,282
|
|
|
1,287
|
|
|
445
|
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||
|
December 30, 2017
|
|
December 31, 2016
|
|
December 30, 2017
|
|
December 31, 2016
|
||||
Discount rate
|
3.7
|
%
|
|
4.2
|
%
|
|
2.4
|
%
|
|
2.9
|
%
|
Rate of compensation increase
|
4.1
|
%
|
|
4.1
|
%
|
|
3.9
|
%
|
|
4.0
|
%
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||||||||||
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||||||||
Service cost
|
$
|
11
|
|
|
$
|
13
|
|
|
$
|
45
|
|
|
$
|
19
|
|
|
$
|
25
|
|
|
$
|
26
|
|
Interest cost
|
178
|
|
|
203
|
|
|
164
|
|
|
66
|
|
|
87
|
|
|
103
|
|
||||||
Expected return on plan assets
|
(262
|
)
|
|
(290
|
)
|
|
(179
|
)
|
|
(180
|
)
|
|
(182
|
)
|
|
(194
|
)
|
||||||
Amortization of unrecognized losses/(gains)
|
—
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
Settlements
|
2
|
|
|
23
|
|
|
102
|
|
|
—
|
|
|
2
|
|
|
17
|
|
||||||
Curtailments
|
—
|
|
|
—
|
|
|
(96
|
)
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
||||||
Special/contractual termination benefits
|
19
|
|
|
—
|
|
|
4
|
|
|
9
|
|
|
3
|
|
|
6
|
|
||||||
Other
|
2
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
||||||
Net pension cost/(benefit)
|
$
|
(50
|
)
|
|
$
|
(51
|
)
|
|
$
|
43
|
|
|
$
|
(100
|
)
|
|
$
|
(65
|
)
|
|
$
|
(89
|
)
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||||
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
Discount rate - Service Cost
|
4.2
|
%
|
|
4.5
|
%
|
|
4.4
|
%
|
|
3.2
|
%
|
|
4.2
|
%
|
|
3.7
|
%
|
Discount rate - Interest Cost
|
3.6
|
%
|
|
3.5
|
%
|
|
4.4
|
%
|
|
2.1
|
%
|
|
3.3
|
%
|
|
3.7
|
%
|
Expected rate of return on plan assets
|
5.7
|
%
|
|
5.7
|
%
|
|
5.6
|
%
|
|
4.8
|
%
|
|
5.6
|
%
|
|
6.4
|
%
|
Rate of compensation increase
|
4.1
|
%
|
|
4.1
|
%
|
|
4.0
|
%
|
|
4.0
|
%
|
|
3.4
|
%
|
|
3.3
|
%
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||
|
December 30, 2017
|
|
December 31, 2016
|
|
December 30, 2017
|
|
December 31, 2016
|
||||
Fixed-income securities
|
62
|
%
|
|
67
|
%
|
|
39
|
%
|
|
49
|
%
|
Equity securities
|
27
|
%
|
|
30
|
%
|
|
27
|
%
|
|
31
|
%
|
Real estate
|
—
|
%
|
|
—
|
%
|
|
6
|
%
|
|
7
|
%
|
Cash and cash equivalents
|
11
|
%
|
|
3
|
%
|
|
4
|
%
|
|
8
|
%
|
Certain insurance contracts
|
—
|
%
|
|
—
|
%
|
|
24
|
%
|
|
5
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Asset Category
|
Total Fair Value
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Other Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
||||||||
Government bonds
|
$
|
467
|
|
|
$
|
467
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Corporate bonds and other fixed-income securities
|
2,606
|
|
|
—
|
|
|
2,606
|
|
|
—
|
|
||||
Total fixed-income securities
|
3,073
|
|
|
467
|
|
|
2,606
|
|
|
—
|
|
||||
Equity securities
|
1,044
|
|
|
1,044
|
|
|
—
|
|
|
—
|
|
||||
Real estate
|
262
|
|
|
—
|
|
|
—
|
|
|
262
|
|
||||
Cash and cash equivalents
|
208
|
|
|
205
|
|
|
3
|
|
|
—
|
|
||||
Certain insurance contracts
|
983
|
|
|
—
|
|
|
—
|
|
|
983
|
|
||||
Fair value excluding investments measured at net asset value
|
5,570
|
|
|
1,716
|
|
|
2,609
|
|
|
1,245
|
|
||||
Investments measured at net asset value
(a)
|
3,371
|
|
|
|
|
|
|
|
|||||||
Total plan assets at fair value
|
$
|
8,941
|
|
|
|
|
|
|
|
(a)
|
Amount includes cash collateral of
$278 million
associated with our securities lending program, which is reflected as an asset, and a corresponding securities lending payable of
$278 million
, which is reflected as a liability. The net impact on total plan assets at fair value is
zero
.
|
Asset Category
|
Total Fair Value
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Other Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
||||||||
Government bonds
|
$
|
484
|
|
|
$
|
410
|
|
|
$
|
74
|
|
|
$
|
—
|
|
Corporate bonds and other fixed-income securities
|
2,952
|
|
|
—
|
|
|
2,952
|
|
|
—
|
|
||||
Total fixed-income securities
|
3,436
|
|
|
410
|
|
|
3,026
|
|
|
—
|
|
||||
Equity securities
|
765
|
|
|
765
|
|
|
—
|
|
|
—
|
|
||||
Real estate
|
234
|
|
|
—
|
|
|
—
|
|
|
234
|
|
||||
Cash and cash equivalents
|
49
|
|
|
31
|
|
|
18
|
|
|
—
|
|
||||
Certain insurance contracts
|
189
|
|
|
—
|
|
|
—
|
|
|
189
|
|
||||
Fair value excluding investments measured at net asset value
|
4,673
|
|
|
1,206
|
|
|
3,044
|
|
|
423
|
|
||||
Investments measured at net asset value
|
3,743
|
|
|
|
|
|
|
|
|||||||
Total plan assets at fair value
|
$
|
8,416
|
|
|
|
|
|
|
|
Asset Category
|
December 31,
2016 (52 weeks) |
|
Additions
|
|
Net Realized Gain/(Loss)
|
|
Net Unrealized Gain/(Loss)
|
|
Net Purchases, Issuances and Settlements
|
|
Transfers Into/(Out of) Level 3
|
|
December 30,
2017 (52 weeks) |
||||||||||||||
Real estate
|
$
|
234
|
|
|
$
|
—
|
|
|
$
|
14
|
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
262
|
|
Certain insurance contracts
|
189
|
|
|
797
|
|
|
—
|
|
|
36
|
|
|
(39
|
)
|
|
—
|
|
|
983
|
|
|||||||
Total Level 3 investments
|
$
|
423
|
|
|
$
|
797
|
|
|
$
|
14
|
|
|
$
|
50
|
|
|
$
|
(39
|
)
|
|
$
|
—
|
|
|
$
|
1,245
|
|
Asset Category
|
January 3,
2016 (53 weeks) |
|
Net Realized Gain/(Loss)
|
|
Net Unrealized Gain/(Loss)
|
|
Net Purchases, Issuances and Settlements
|
|
Transfers Into/(Out of) Level 3
|
|
December 31,
2016 (52 weeks) |
||||||||||||
Equity securities
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Real estate
|
288
|
|
|
6
|
|
|
(37
|
)
|
|
(23
|
)
|
|
—
|
|
|
234
|
|
||||||
Certain insurance contracts
|
236
|
|
|
—
|
|
|
13
|
|
|
(49
|
)
|
|
(11
|
)
|
|
189
|
|
||||||
Total Level 3 investments
|
$
|
525
|
|
|
$
|
6
|
|
|
$
|
(24
|
)
|
|
$
|
(73
|
)
|
|
$
|
(11
|
)
|
|
$
|
423
|
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||
2018
|
$
|
367
|
|
|
$
|
1,343
|
|
2019
|
331
|
|
|
72
|
|
||
2020
|
334
|
|
|
73
|
|
||
2021
|
337
|
|
|
76
|
|
||
2022
|
357
|
|
|
85
|
|
||
2023-2027
|
1,531
|
|
|
452
|
|
|
December 30, 2017
|
|
December 31, 2016
|
||||
Benefit obligation at beginning of year
|
$
|
1,714
|
|
|
$
|
1,945
|
|
Service cost
|
10
|
|
|
11
|
|
||
Interest cost
|
49
|
|
|
51
|
|
||
Benefits paid
|
(142
|
)
|
|
(150
|
)
|
||
Actuarial losses/(gains)
|
(70
|
)
|
|
5
|
|
||
Plan amendments
|
(24
|
)
|
|
(158
|
)
|
||
Currency
|
13
|
|
|
6
|
|
||
Other
|
3
|
|
|
4
|
|
||
Benefit obligation at end of year
|
1,553
|
|
|
1,714
|
|
||
Fair value of plan assets at beginning of year
|
—
|
|
|
—
|
|
||
Employer contributions
|
1,329
|
|
|
—
|
|
||
Benefits paid
|
(142
|
)
|
|
—
|
|
||
Other
|
1
|
|
|
—
|
|
||
Fair value of plan assets at end of year
|
1,188
|
|
|
—
|
|
||
Net postretirement benefit liability/(asset) recognized at end of year
|
$
|
365
|
|
|
$
|
1,714
|
|
|
December 30, 2017
|
|
December 31, 2016
|
||||
Accrued postemployment costs (current liabilities)
|
(10
|
)
|
|
(153
|
)
|
||
Accrued postemployment costs (long-term liabilities)
|
(355
|
)
|
|
(1,561
|
)
|
||
Net postretirement benefit asset/(liability) recognized
|
$
|
(365
|
)
|
|
$
|
(1,714
|
)
|
|
December 30, 2017
|
|
December 31, 2016
|
||||
Accumulated benefit obligation
|
$
|
1,553
|
|
|
$
|
1,714
|
|
Fair value of plan assets
|
1,188
|
|
|
—
|
|
|
December 30, 2017
|
|
December 31, 2016
|
||
Discount rate
|
3.5
|
%
|
|
3.8
|
%
|
Health care cost trend rate assumed for next year
|
6.7
|
%
|
|
6.3
|
%
|
Ultimate trend rate
|
4.9
|
%
|
|
4.9
|
%
|
|
One-Percentage-Point
|
||||||
|
Increase
|
|
(Decrease)
|
||||
Effect on annual service and interest cost
|
$
|
4
|
|
|
$
|
(3
|
)
|
Effect on postretirement benefit obligation
|
55
|
|
|
(47
|
)
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
Service cost
|
$
|
10
|
|
|
$
|
11
|
|
|
$
|
13
|
|
Interest cost
|
49
|
|
|
51
|
|
|
56
|
|
|||
Amortization of prior service costs/(credits)
|
(328
|
)
|
|
(362
|
)
|
|
(112
|
)
|
|||
Amortization of unrecognized losses/(gains)
|
—
|
|
|
(1
|
)
|
|
—
|
|
|||
Curtailments
|
(177
|
)
|
|
—
|
|
|
1
|
|
|||
Net postretirement cost/(benefit)
|
$
|
(446
|
)
|
|
$
|
(301
|
)
|
|
$
|
(42
|
)
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
|||
Discount rate - Service Cost
|
4.0
|
%
|
|
4.3
|
%
|
|
4.2
|
%
|
Discount rate - Interest Cost
|
3.0
|
%
|
|
3.0
|
%
|
|
4.2
|
%
|
Health care cost trend rate
|
6.3
|
%
|
|
6.5
|
%
|
|
6.7
|
%
|
2018
|
$
|
147
|
|
2019
|
140
|
|
|
2020
|
133
|
|
|
2021
|
126
|
|
|
2022
|
120
|
|
|
2023-2027
|
504
|
|
|
Pension Benefits
|
|
Postretirement Benefits
|
|
Total
|
||||||||||||||||||
|
December 30, 2017
|
|
December 31, 2016
|
|
December 30, 2017
|
|
December 31, 2016
|
|
December 30, 2017
|
|
December 31, 2016
|
||||||||||||
Net actuarial gain/(loss)
|
$
|
13
|
|
|
$
|
(35
|
)
|
|
$
|
111
|
|
|
$
|
64
|
|
|
$
|
124
|
|
|
$
|
29
|
|
Prior service credit/(cost)
|
1
|
|
|
—
|
|
|
748
|
|
|
1,205
|
|
|
749
|
|
|
1,205
|
|
||||||
|
$
|
14
|
|
|
$
|
(35
|
)
|
|
$
|
859
|
|
|
$
|
1,269
|
|
|
$
|
873
|
|
|
$
|
1,234
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
Net postemployment benefit gains/(losses) arising during the period:
|
|
|
|
|
|
||||||
Net actuarial gains/(losses) arising during the period - Pension Benefits
|
$
|
45
|
|
|
$
|
(73
|
)
|
|
$
|
3
|
|
Net actuarial gains/(losses) arising during the period - Postretirement Benefits
|
71
|
|
|
(5
|
)
|
|
62
|
|
|||
Prior service credits/(costs) arising during the period - Pension Benefits
|
1
|
|
|
—
|
|
|
(7
|
)
|
|||
Prior service credits/(costs) arising during the period - Postretirement Benefits
|
24
|
|
|
158
|
|
|
1,507
|
|
|||
|
141
|
|
|
80
|
|
|
1,565
|
|
|||
Tax benefit/(expense)
|
(55
|
)
|
|
(23
|
)
|
|
(619
|
)
|
|||
|
$
|
86
|
|
|
$
|
57
|
|
|
$
|
946
|
|
|
|
|
|
|
|
||||||
Reclassification of net postemployment benefit losses/(gains) to net income/(loss):
|
|
|
|
|
|
||||||
Amortization of unrecognized losses/(gains) - Pension Benefits
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
3
|
|
Amortization of unrecognized losses/(gains) - Postretirement Benefits
|
—
|
|
|
(1
|
)
|
|
—
|
|
|||
Amortization of prior service costs/(credits) - Postretirement Benefits
|
(328
|
)
|
|
(362
|
)
|
|
(112
|
)
|
|||
Net settlement and curtailment losses/(gains) - Pension Benefits
|
2
|
|
|
25
|
|
|
(24
|
)
|
|||
Net settlement and curtailment losses/(gains) - Postretirement Benefits
|
(177
|
)
|
|
—
|
|
|
1
|
|
|||
|
(502
|
)
|
|
(338
|
)
|
|
(132
|
)
|
|||
Tax benefit/(expense)
|
193
|
|
|
131
|
|
|
47
|
|
|||
|
$
|
(309
|
)
|
|
$
|
(207
|
)
|
|
$
|
(85
|
)
|
|
Notional Amount
|
||||||
|
December 30, 2017
|
|
December 31, 2016
|
||||
Commodity contracts
|
$
|
272
|
|
|
$
|
459
|
|
Foreign exchange contracts
|
2,876
|
|
|
2,997
|
|
||
Cross-currency contracts
|
3,161
|
|
|
3,173
|
|
|
December 30, 2017
|
||||||||||||||||||||||||||||||
|
Quoted Prices in Active Markets for Identical Assets and Liabilities
(Level 1) |
|
Significant Other Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
|
Total Fair Value
|
||||||||||||||||||||||||
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign exchange contracts
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
42
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
42
|
|
Cross-currency contracts
|
—
|
|
|
—
|
|
|
344
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
344
|
|
|
—
|
|
||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commodity contracts
|
4
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
8
|
|
||||||||
Foreign exchange contracts
|
—
|
|
|
—
|
|
|
17
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
3
|
|
||||||||
Cross-currency contracts
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
||||||||
Total fair value
|
$
|
4
|
|
|
$
|
8
|
|
|
$
|
388
|
|
|
$
|
45
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
392
|
|
|
$
|
53
|
|
|
December 31, 2016
|
||||||||||||||||||||||||||||||
|
Quoted Prices in Active Markets for Identical Assets and Liabilities
(Level 1)
|
|
Significant Other Observable Inputs
(Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
|
Total Fair Value
|
||||||||||||||||||||||||
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign exchange contracts
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
69
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
69
|
|
|
$
|
13
|
|
Cross-currency contracts
|
—
|
|
|
—
|
|
|
580
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
580
|
|
|
36
|
|
||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commodity contracts
|
28
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
7
|
|
||||||||
Foreign exchange contracts
|
—
|
|
|
—
|
|
|
35
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|
30
|
|
||||||||
Cross-currency contracts
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
||||||||
Total fair value
|
$
|
28
|
|
|
$
|
7
|
|
|
$
|
728
|
|
|
$
|
79
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
756
|
|
|
$
|
86
|
|
Instrument
|
|
Notional
(local)
(in billions)
|
|
Notional
(USD)
(in billions)
|
|
Maturity
|
||||
Cross-currency swap
|
|
£
|
0.8
|
|
|
$
|
1.4
|
|
|
October 2019
|
Cross-currency swap
|
|
C$
|
1.8
|
|
|
$
|
1.6
|
|
|
December 2019
|
•
|
foreign exchange contracts for periods not exceeding the next
18
months; and
|
•
|
cross-currency contracts for periods not exceeding the next
24
months.
|
•
|
commodity contracts for periods not exceeding the next
12
months; and
|
•
|
foreign exchange contracts for periods not exceeding the next
six
months.
|
•
|
cross-currency contracts for periods not exceeding the next
22
months.
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
||||||||||||||||||||||||||||
|
Commodity Contracts
|
|
Foreign Exchange
Contracts |
|
Cross-Currency Contracts
|
|
Interest Rate Contracts
|
|
Commodity Contracts
|
|
Foreign Exchange
Contracts |
|
Cross-Currency Contracts
|
|
Interest Rate
Contracts |
||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gains/(losses) recognized in other comprehensive income/(loss) (effective portion)
|
$
|
—
|
|
|
$
|
(123
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
48
|
|
|
$
|
—
|
|
|
$
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net investment hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gains/(losses) recognized in other comprehensive income/(loss) (effective portion)
|
—
|
|
|
(23
|
)
|
|
(184
|
)
|
|
—
|
|
|
—
|
|
|
45
|
|
|
147
|
|
|
—
|
|
||||||||
Total gains/(losses) recognized in other comprehensive income/(loss) (effective portion)
|
$
|
—
|
|
|
$
|
(146
|
)
|
|
$
|
(184
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
93
|
|
|
$
|
147
|
|
|
$
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash flow hedges reclassified to net income/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Cost of products sold (effective portion)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
—
|
|
||||||||
Other expense/(income), net
|
—
|
|
|
(81
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
—
|
|
|
—
|
|
||||||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||||||
|
—
|
|
|
(81
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
85
|
|
|
—
|
|
|
(4
|
)
|
||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gains/(losses) on derivatives recognized in cost of products sold
|
(37
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Gains/(losses) on derivatives recognized in other expense/(income), net
|
—
|
|
|
54
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(63
|
)
|
|
(3
|
)
|
|
—
|
|
||||||||
|
(37
|
)
|
|
54
|
|
|
(2
|
)
|
|
—
|
|
|
9
|
|
|
(63
|
)
|
|
(3
|
)
|
|
—
|
|
||||||||
Total gains/(losses) recognized in statements of income
|
$
|
(37
|
)
|
|
$
|
(27
|
)
|
|
$
|
(2
|
)
|
|
$
|
(4
|
)
|
|
$
|
9
|
|
|
$
|
22
|
|
|
$
|
(3
|
)
|
|
$
|
(4
|
)
|
|
January 3,
2016 (53 weeks) |
||||||||||||||
|
Commodity Contracts
|
|
Foreign Exchange Contracts
|
|
Cross-Currency Contracts
|
|
Interest Rate Contracts
|
||||||||
|
(in millions)
|
||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
||||||||
Gains/(losses) recognized in other comprehensive income/(loss) (effective portion)
|
$
|
—
|
|
|
$
|
73
|
|
|
$
|
—
|
|
|
$
|
(111
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net investment hedges:
|
|
|
|
|
|
|
|
||||||||
Gains/(losses) recognized in other comprehensive income/(loss) (effective portion)
|
—
|
|
|
—
|
|
|
736
|
|
|
—
|
|
||||
Total gains/(losses) recognized in other comprehensive income/(loss) (effective portion)
|
$
|
—
|
|
|
$
|
73
|
|
|
$
|
736
|
|
|
$
|
(111
|
)
|
|
|
|
|
|
|
|
|
||||||||
Cash flow hedges reclassified to net income/(loss):
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Cost of products sold (effective portion)
|
—
|
|
|
45
|
|
|
—
|
|
|
—
|
|
||||
Other expense/(income), net
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
(239
|
)
|
||||
|
—
|
|
|
44
|
|
|
—
|
|
|
(239
|
)
|
||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||||
Gains/(losses) on derivatives recognized in cost of products sold
|
(57
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Gains/(losses) on derivatives recognized in other expense/(income), net
|
—
|
|
|
92
|
|
|
53
|
|
|
8
|
|
||||
|
(57
|
)
|
|
92
|
|
|
53
|
|
|
8
|
|
||||
Total gains/(losses) recognized in statements of income
|
$
|
(57
|
)
|
|
$
|
136
|
|
|
$
|
53
|
|
|
$
|
(231
|
)
|
|
Foreign Currency Translation Adjustments
|
|
Net Postemployment Benefit Plan Adjustments
|
|
Net Cash Flow Hedge Adjustments
|
|
Total
|
||||||||
Balance as of December 28, 2014
|
$
|
(574
|
)
|
|
$
|
61
|
|
|
$
|
(61
|
)
|
|
$
|
(574
|
)
|
Foreign currency translation adjustments
|
(1,578
|
)
|
|
—
|
|
|
—
|
|
|
(1,578
|
)
|
||||
Net deferred gains/(losses) on net investment hedges
|
506
|
|
|
—
|
|
|
—
|
|
|
506
|
|
||||
Net postemployment benefit gains/(losses) arising during the period
|
—
|
|
|
946
|
|
|
—
|
|
|
946
|
|
||||
Reclassification of net postemployment benefit losses/(gains)
|
—
|
|
|
(85
|
)
|
|
—
|
|
|
(85
|
)
|
||||
Net deferred gains/(losses) on cash flow hedges
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
(6
|
)
|
||||
Net deferred losses/(gains) on cash flow hedges reclassified to net income
|
—
|
|
|
—
|
|
|
120
|
|
|
120
|
|
||||
Total other comprehensive income/(loss)
|
(1,072
|
)
|
|
861
|
|
|
114
|
|
|
(97
|
)
|
||||
Balance as of January 3, 2016
|
$
|
(1,646
|
)
|
|
$
|
922
|
|
|
$
|
53
|
|
|
$
|
(671
|
)
|
Foreign currency translation adjustments
|
(992
|
)
|
|
—
|
|
|
—
|
|
|
(992
|
)
|
||||
Net deferred gains/(losses) on net investment hedges
|
226
|
|
|
—
|
|
|
—
|
|
|
226
|
|
||||
Net postemployment benefit gains/(losses) arising during the period
|
—
|
|
|
57
|
|
|
—
|
|
|
57
|
|
||||
Reclassification of net postemployment benefit losses/(gains)
|
—
|
|
|
(207
|
)
|
|
—
|
|
|
(207
|
)
|
||||
Net deferred gains/(losses) on cash flow hedges
|
—
|
|
|
—
|
|
|
46
|
|
|
46
|
|
||||
Net deferred losses/(gains) on cash flow hedges reclassified to net income
|
—
|
|
|
—
|
|
|
(87
|
)
|
|
(87
|
)
|
||||
Total other comprehensive income/(loss)
|
(766
|
)
|
|
(150
|
)
|
|
(41
|
)
|
|
(957
|
)
|
||||
Balance as of December 31, 2016
|
$
|
(2,412
|
)
|
|
$
|
772
|
|
|
$
|
12
|
|
|
$
|
(1,628
|
)
|
Foreign currency translation adjustments
|
1,178
|
|
|
—
|
|
|
—
|
|
|
1,178
|
|
||||
Net deferred gains/(losses) on net investment hedges
|
(353
|
)
|
|
—
|
|
|
—
|
|
|
(353
|
)
|
||||
Net postemployment benefit gains/(losses) arising during the period
|
—
|
|
|
86
|
|
|
—
|
|
|
86
|
|
||||
Reclassification of net postemployment benefit losses/(gains)
|
—
|
|
|
(309
|
)
|
|
—
|
|
|
(309
|
)
|
||||
Net deferred gains/(losses) on cash flow hedges
|
—
|
|
|
—
|
|
|
(113
|
)
|
|
(113
|
)
|
||||
Net deferred losses/(gains) on cash flow hedges reclassified to net income
|
—
|
|
|
—
|
|
|
85
|
|
|
85
|
|
||||
Total other comprehensive income/(loss)
|
825
|
|
|
(223
|
)
|
|
(28
|
)
|
|
574
|
|
||||
Balance as of December 30, 2017
|
$
|
(1,587
|
)
|
|
$
|
549
|
|
|
$
|
(16
|
)
|
|
$
|
(1,054
|
)
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||||||||||||||||||||||||||
|
Before Tax Amount
|
|
Tax
|
|
Net of Tax Amount
|
|
Before Tax Amount
|
|
Tax
|
|
Net of Tax Amount
|
|
Before Tax Amount
|
|
Tax
|
|
Net of Tax Amount
|
||||||||||||||||||
Foreign currency translation adjustments
|
$
|
1,178
|
|
|
$
|
—
|
|
|
$
|
1,178
|
|
|
$
|
(992
|
)
|
|
$
|
—
|
|
|
$
|
(992
|
)
|
|
$
|
(1,578
|
)
|
|
$
|
—
|
|
|
$
|
(1,578
|
)
|
Net deferred gains/(losses) on net investment hedges
|
(632
|
)
|
|
279
|
|
|
(353
|
)
|
|
426
|
|
|
(200
|
)
|
|
226
|
|
|
801
|
|
|
(295
|
)
|
|
506
|
|
|||||||||
Net actuarial gains/(losses) arising during the period
|
116
|
|
|
(47
|
)
|
|
69
|
|
|
(78
|
)
|
|
38
|
|
|
(40
|
)
|
|
65
|
|
|
(42
|
)
|
|
23
|
|
|||||||||
Prior service credits/(costs) arising during the period
|
25
|
|
|
(8
|
)
|
|
17
|
|
|
158
|
|
|
(61
|
)
|
|
97
|
|
|
1,500
|
|
|
(577
|
)
|
|
923
|
|
|||||||||
Reclassification of net postemployment benefit losses/(gains)
|
(502
|
)
|
|
193
|
|
|
(309
|
)
|
|
(338
|
)
|
|
131
|
|
|
(207
|
)
|
|
(132
|
)
|
|
47
|
|
|
(85
|
)
|
|||||||||
Net deferred gains/(losses) on cash flow hedges
|
(123
|
)
|
|
10
|
|
|
(113
|
)
|
|
40
|
|
|
6
|
|
|
46
|
|
|
(38
|
)
|
|
32
|
|
|
(6
|
)
|
|||||||||
Net deferred losses/(gains) on cash flow hedges reclassified to net income
|
85
|
|
|
—
|
|
|
85
|
|
|
(81
|
)
|
|
(6
|
)
|
|
(87
|
)
|
|
195
|
|
|
(75
|
)
|
|
120
|
|
Accumulated Other Comprehensive Income/(Losses) Component
|
|
Reclassified from Accumulated Other Comprehensive Income/(Losses)
|
|
Affected Line Item in the Statement Where Net Income/(Loss) is Presented
|
||||||||||
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
|
|
||||||
Losses/(gains) on cash flow hedges:
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
|
$
|
—
|
|
|
$
|
(6
|
)
|
|
$
|
2
|
|
|
Net sales
|
Foreign exchange contracts
|
|
—
|
|
|
(41
|
)
|
|
(45
|
)
|
|
Cost of products sold
|
|||
Foreign exchange contracts
|
|
81
|
|
|
(38
|
)
|
|
(1
|
)
|
|
Other expense/(income), net
|
|||
Interest rate contracts
|
|
4
|
|
|
4
|
|
|
239
|
|
|
Interest expense
|
|||
Losses/(gains) on cash flow hedges before income taxes
|
|
85
|
|
|
(81
|
)
|
|
195
|
|
|
|
|||
Losses/(gains) on cash flow hedges, income taxes
|
|
—
|
|
|
(6
|
)
|
|
(75
|
)
|
|
|
|||
Losses/(gains) on cash flow hedges
|
|
$
|
85
|
|
|
$
|
(87
|
)
|
|
$
|
120
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Losses/(gains) on postemployment benefits:
|
|
|
|
|
|
|
|
|
||||||
Amortization of unrecognized losses/(gains)
|
|
$
|
1
|
|
|
$
|
(1
|
)
|
|
$
|
3
|
|
|
(a)
|
Amortization of prior service costs/(credits)
|
|
(328
|
)
|
|
(362
|
)
|
|
(112
|
)
|
|
(a)
|
|||
Settlement and curtailment losses/(gains)
|
|
(175
|
)
|
|
25
|
|
|
(23
|
)
|
|
(a)
|
|||
Losses/(gains) on postemployment benefits before income taxes
|
|
(502
|
)
|
|
(338
|
)
|
|
(132
|
)
|
|
|
|||
Losses/(gains) on postemployment benefits, income taxes
|
|
193
|
|
|
131
|
|
|
47
|
|
|
|
|||
Losses/(gains) on postemployment benefits
|
|
$
|
(309
|
)
|
|
$
|
(207
|
)
|
|
$
|
(85
|
)
|
|
|
(a)
|
These components are included in the computation of net periodic postemployment benefit costs. See Note 10,
Postemployment Benefits
, for additional information.
|
•
|
the official exchange rate of BsF
10
per U.S. dollar available through the Sistema de Divisa Protegida (“DIPRO”) for purchases and sales of essential items, including food products; and
|
•
|
an alternative exchange rate available through the Sistema de Divisa Complementaria (“DICOM”) for all transactions not covered by DIPRO. The published DICOM rate was BsF
3,345
per U.S. dollar at
December 30, 2017
.
|
2018
|
$
|
103
|
|
2019
|
91
|
|
|
2020
|
73
|
|
|
2021
|
54
|
|
|
2022
|
45
|
|
|
Thereafter
|
165
|
|
|
Total
|
$
|
531
|
|
2018
|
$
|
1,558
|
|
2019
|
724
|
|
|
2020
|
527
|
|
|
2021
|
235
|
|
|
2022
|
211
|
|
|
Thereafter
|
439
|
|
|
Total
|
$
|
3,694
|
|
|
|
Priority
1
|
|
Maturity Dates
|
|
Interest Rates
2
|
|
Carrying Values
|
||||||
|
|
|
|
|
|
|
|
December 30, 2017
|
|
December 31, 2016
|
||||
|
|
|
|
|
|
|
|
(in millions)
|
||||||
U.S. dollar notes:
|
|
|
|
|
|
|
|
|
|
|
||||
2025 Notes
(a)
|
|
Senior Secured Notes
|
|
February 15, 2025
|
|
4.875%
|
|
$
|
1,192
|
|
|
$
|
1,191
|
|
Other U.S. dollar notes
(b)(c)
|
|
Senior Notes
|
|
2018-2046
|
|
1.823% - 7.125%
|
|
25,165
|
|
|
25,761
|
|
||
Euro notes
(b)
|
|
Senior Notes
|
|
2023-2028
|
|
1.500% - 2.250%
|
|
3,037
|
|
|
2,656
|
|
||
Canadian dollar notes
(b)
|
|
Senior Notes
|
|
2018-2020
|
|
2.214% - 2.700%
|
|
794
|
|
|
743
|
|
||
British pound sterling notes
(b)(d)
|
|
Senior Notes
|
|
2027-2030
|
|
4.125% - 6.250%
|
|
712
|
|
|
650
|
|
||
Term Loan Facility
(e)
|
|
Senior Unsecured Loan
|
|
|
|
|
|
—
|
|
|
596
|
|
||
Other long-term debt
|
|
Various
|
|
2018-2035
|
|
0.500% - 5.800%
|
|
56
|
|
|
54
|
|
||
Capital lease obligations
|
|
|
|
|
|
|
|
120
|
|
|
108
|
|
||
Total long-term debt
|
|
|
|
|
|
|
|
31,076
|
|
|
31,759
|
|
||
Current portion of long-term debt
|
|
|
|
|
|
|
|
2,743
|
|
|
2,046
|
|
||
Long-term debt, excluding current portion
|
|
|
|
|
|
|
|
$
|
28,333
|
|
|
$
|
29,713
|
|
1
|
Priority of debt indicates the order which debt would be paid if all debt obligations were due on the same day. Senior secured debt takes priority over unsecured debt. Senior debt has greater seniority than subordinated debt.
|
2
|
Floating interest rates are stated as of December 30, 2017.
|
(a)
|
The
4.875%
Second Lien Senior Secured Notes due February 15, 2025 (the “2025 Notes”) are senior in right of payment of existing and future unsecured and subordinated indebtedness.
|
(b)
|
We fully and unconditionally guarantee these notes, which were issued by Kraft Heinz Foods Company.
|
(d)
|
Includes
£125 million
aggregate principal amount of
6.250%
Pound Sterling Notes due February 18, 2030 (the “2030 Notes”) previously issued by H.J. Heinz Finance UK Plc and guaranteed by Kraft Heinz Foods Company, which we became guarantor of in connection with the 2015 Merger.
|
(e)
|
We repaid the Term Loan Facility in 2017; therefore, no amounts were outstanding, nor was there an applicable maturity date or interest rate, at December 30, 2017.
|
2018
|
$
|
2,697
|
|
2019
|
355
|
|
|
2020
|
3,042
|
|
|
2021
|
691
|
|
|
2022
|
3,507
|
|
|
Thereafter
|
20,273
|
|
|
Shares Issued
|
|
Treasury Shares
|
|
Shares Outstanding
|
|||
Balance at December 28, 2014
|
377
|
|
|
—
|
|
|
377
|
|
Exercise of warrants
|
20
|
|
|
—
|
|
|
20
|
|
Issuance of common stock to Sponsors
|
222
|
|
|
—
|
|
|
222
|
|
Acquisition of Kraft Foods Group, Inc.
|
593
|
|
|
—
|
|
|
593
|
|
Exercise of stock options, issuance of other stock awards, and other
|
2
|
|
|
—
|
|
|
2
|
|
Balance at January 3, 2016
|
1,214
|
|
|
—
|
|
|
1,214
|
|
Exercise of stock options, issuance of other stock awards, and other
|
5
|
|
|
(2
|
)
|
|
3
|
|
Balance at December 31, 2016
|
1,219
|
|
|
(2
|
)
|
|
1,217
|
|
Exercise of stock options, issuance of other stock awards, and other
|
2
|
|
|
—
|
|
|
2
|
|
Balance at December 30, 2017
|
1,221
|
|
|
(2
|
)
|
|
1,219
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
|
(in millions, except per share data)
|
||||||||||
Basic Earnings Per Common Share:
|
|
|
|
|
|
||||||
Net income/(loss) attributable to common shareholders
|
$
|
10,999
|
|
|
$
|
3,452
|
|
|
$
|
(266
|
)
|
Weighted average shares of common stock outstanding
|
1,218
|
|
|
1,217
|
|
|
786
|
|
|||
Net earnings/(loss)
|
$
|
9.03
|
|
|
$
|
2.84
|
|
|
$
|
(0.34
|
)
|
Diluted Earnings Per Common Share:
|
|
|
|
|
|
||||||
Net income/(loss) attributable to common shareholders
|
$
|
10,999
|
|
|
$
|
3,452
|
|
|
$
|
(266
|
)
|
Weighted average shares of common stock outstanding
|
1,218
|
|
|
1,217
|
|
|
786
|
|
|||
Effect of dilutive equity awards
|
10
|
|
|
9
|
|
|
—
|
|
|||
Weighted average shares of common stock outstanding, including dilutive effect
|
1,228
|
|
|
1,226
|
|
|
786
|
|
|||
Net earnings/(loss)
|
$
|
8.95
|
|
|
$
|
2.81
|
|
|
$
|
(0.34
|
)
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
Net sales:
|
|
|
|
|
|
||||||
United States
|
$
|
18,353
|
|
|
$
|
18,641
|
|
|
$
|
10,943
|
|
Canada
|
2,190
|
|
|
2,309
|
|
|
1,437
|
|
|||
Europe
|
2,393
|
|
|
2,366
|
|
|
2,656
|
|
|||
Rest of World
|
3,296
|
|
|
3,171
|
|
|
3,302
|
|
|||
Total net sales
|
$
|
26,232
|
|
|
$
|
26,487
|
|
|
$
|
18,338
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
Segment Adjusted EBITDA:
|
|
|
|
|
|
||||||
United States
|
$
|
6,001
|
|
|
$
|
5,862
|
|
|
$
|
4,690
|
|
Canada
|
639
|
|
|
642
|
|
|
541
|
|
|||
Europe
|
781
|
|
|
781
|
|
|
938
|
|
|||
Rest of World
|
617
|
|
|
657
|
|
|
742
|
|
|||
General corporate expenses
|
(108
|
)
|
|
(164
|
)
|
|
(172
|
)
|
|||
Depreciation and amortization (excluding integration and restructuring expenses)
|
(583
|
)
|
|
(536
|
)
|
|
(779
|
)
|
|||
Integration and restructuring expenses
|
(457
|
)
|
|
(1,012
|
)
|
|
(1,117
|
)
|
|||
Merger costs
|
—
|
|
|
(30
|
)
|
|
(194
|
)
|
|||
Amortization of inventory step-up
|
—
|
|
|
—
|
|
|
(347
|
)
|
|||
Unrealized gains/(losses) on commodity hedges
|
(19
|
)
|
|
38
|
|
|
41
|
|
|||
Impairment losses
|
(49
|
)
|
|
(53
|
)
|
|
(58
|
)
|
|||
Gains/losses on sale of business
|
—
|
|
|
—
|
|
|
21
|
|
|||
Nonmonetary currency devaluation
|
—
|
|
|
(4
|
)
|
|
(57
|
)
|
|||
Equity award compensation expense (excluding integration and restructuring expenses)
|
(49
|
)
|
|
(39
|
)
|
|
(61
|
)
|
|||
Other pro forma adjustments
|
—
|
|
|
—
|
|
|
(1,549
|
)
|
|||
Operating income
|
6,773
|
|
|
6,142
|
|
|
2,639
|
|
|||
Interest expense
|
1,234
|
|
|
1,134
|
|
|
1,321
|
|
|||
Other expense/(income), net
|
9
|
|
|
(15
|
)
|
|
305
|
|
|||
Income/(loss) before income taxes
|
$
|
5,530
|
|
|
$
|
5,023
|
|
|
$
|
1,013
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
Depreciation and amortization expense:
|
|
|
|
|
|
||||||
United States
|
$
|
661
|
|
|
$
|
966
|
|
|
$
|
484
|
|
Canada
|
48
|
|
|
56
|
|
|
36
|
|
|||
Europe
|
96
|
|
|
84
|
|
|
86
|
|
|||
Rest of World
|
101
|
|
|
87
|
|
|
85
|
|
|||
General corporate expenses
|
130
|
|
|
144
|
|
|
49
|
|
|||
Total depreciation and amortization expense
|
$
|
1,036
|
|
|
$
|
1,337
|
|
|
$
|
740
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
Capital expenditures:
|
|
|
|
|
|
||||||
United States
|
$
|
764
|
|
|
$
|
843
|
|
|
$
|
377
|
|
Canada
|
42
|
|
|
30
|
|
|
19
|
|
|||
Europe
|
125
|
|
|
109
|
|
|
106
|
|
|||
Rest of World
|
209
|
|
|
102
|
|
|
99
|
|
|||
General corporate expenses
|
77
|
|
|
163
|
|
|
47
|
|
|||
Total capital expenditures
|
$
|
1,217
|
|
|
$
|
1,247
|
|
|
$
|
648
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
Condiments and sauces
|
$
|
6,439
|
|
|
$
|
6,475
|
|
|
$
|
5,877
|
|
Cheese and dairy
|
5,482
|
|
|
5,619
|
|
|
2,795
|
|
|||
Ambient meals
|
2,310
|
|
|
2,345
|
|
|
1,859
|
|
|||
Frozen and chilled meals
|
2,578
|
|
|
2,548
|
|
|
2,179
|
|
|||
Meats and seafood
|
2,609
|
|
|
2,703
|
|
|
1,480
|
|
|||
Refreshment beverages
|
1,508
|
|
|
1,524
|
|
|
665
|
|
|||
Coffee
|
1,423
|
|
|
1,494
|
|
|
710
|
|
|||
Infant and nutrition
|
755
|
|
|
761
|
|
|
902
|
|
|||
Desserts, toppings and baking
|
956
|
|
|
981
|
|
|
521
|
|
|||
Nuts and salted snacks
|
937
|
|
|
1,050
|
|
|
562
|
|
|||
Other
|
1,235
|
|
|
987
|
|
|
788
|
|
|||
Total net sales
|
$
|
26,232
|
|
|
$
|
26,487
|
|
|
$
|
18,338
|
|
|
December 30,
2017 (52 weeks) |
|
December 31,
2016 (52 weeks) |
|
January 3,
2016 (53 weeks) |
||||||
Net sales:
|
|
|
|
|
|
||||||
United States
|
$
|
18,353
|
|
|
$
|
18,641
|
|
|
$
|
10,943
|
|
Canada
|
2,190
|
|
|
2,309
|
|
|
1,437
|
|
|||
United Kingdom
|
1,021
|
|
|
1,055
|
|
|
1,334
|
|
|||
Other
|
4,668
|
|
|
4,482
|
|
|
4,624
|
|
|||
Total net sales
|
$
|
26,232
|
|
|
$
|
26,487
|
|
|
$
|
18,338
|
|
|
December 30, 2017
|
|
December 31, 2016
|
||||
Long-lived assets:
|
|
|
|
||||
United States
|
$
|
92,129
|
|
|
$
|
92,243
|
|
Canada
|
6,592
|
|
|
6,172
|
|
||
United Kingdom
|
6,219
|
|
|
5,669
|
|
||
Other
|
6,453
|
|
|
6,026
|
|
||
Total long-lived assets
|
$
|
111,393
|
|
|
$
|
110,110
|
|
|
2017 Quarters
|
||||||||||||||
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
||||||||
|
(in millions, except per share data)
|
||||||||||||||
Net sales
|
$
|
6,364
|
|
|
$
|
6,677
|
|
|
$
|
6,314
|
|
|
$
|
6,877
|
|
Gross profit
|
2,301
|
|
|
2,681
|
|
|
2,314
|
|
|
2,407
|
|
||||
Net income/(loss)
|
891
|
|
|
1,160
|
|
|
943
|
|
|
7,996
|
|
||||
Net income/(loss) attributable to Kraft Heinz
|
893
|
|
|
1,159
|
|
|
944
|
|
|
8,003
|
|
||||
Net income/(loss) attributable to common shareholders
|
893
|
|
|
1,159
|
|
|
944
|
|
|
8,003
|
|
||||
Per share data applicable to common shareholders:
|
|
|
|
|
|
|
|
||||||||
Basic earnings/(loss)
|
0.73
|
|
|
0.95
|
|
|
0.78
|
|
|
6.57
|
|
||||
Diluted earnings/(loss)
|
0.73
|
|
|
0.94
|
|
|
0.77
|
|
|
6.52
|
|
|
2016 Quarters
|
||||||||||||||
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
||||||||
|
(in millions, except per share data)
|
||||||||||||||
Net sales
|
$
|
6,570
|
|
|
$
|
6,793
|
|
|
$
|
6,267
|
|
|
$
|
6,857
|
|
Gross profit
|
2,378
|
|
|
2,531
|
|
|
2,218
|
|
|
2,459
|
|
||||
Net income/(loss)
|
900
|
|
|
955
|
|
|
843
|
|
|
944
|
|
||||
Net income/(loss) attributable to Kraft Heinz
|
896
|
|
|
950
|
|
|
842
|
|
|
944
|
|
||||
Net income/(loss) attributable to common shareholders
|
896
|
|
|
770
|
|
|
842
|
|
|
944
|
|
||||
Per share data applicable to common shareholders:
|
|
|
|
|
|
|
|
||||||||
Basic earnings/(loss)
|
0.74
|
|
|
0.63
|
|
|
0.69
|
|
|
0.78
|
|
||||
Diluted earnings/(loss)
|
0.73
|
|
|
0.63
|
|
|
0.69
|
|
|
0.77
|
|
|
Parent Guarantor
|
|
Subsidiary Issuer
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net sales
|
$
|
—
|
|
|
$
|
17,507
|
|
|
$
|
9,293
|
|
|
$
|
(568
|
)
|
|
$
|
26,232
|
|
Cost of products sold
|
—
|
|
|
10,710
|
|
|
6,387
|
|
|
(568
|
)
|
|
16,529
|
|
|||||
Gross profit
|
—
|
|
|
6,797
|
|
|
2,906
|
|
|
—
|
|
|
9,703
|
|
|||||
Selling, general and administrative expenses
|
—
|
|
|
652
|
|
|
2,278
|
|
|
—
|
|
|
2,930
|
|
|||||
Intercompany service fees and other recharges
|
—
|
|
|
4,308
|
|
|
(4,308
|
)
|
|
—
|
|
|
—
|
|
|||||
Operating income
|
—
|
|
|
1,837
|
|
|
4,936
|
|
|
—
|
|
|
6,773
|
|
|||||
Interest expense
|
—
|
|
|
1,190
|
|
|
44
|
|
|
—
|
|
|
1,234
|
|
|||||
Other expense/(income), net
|
—
|
|
|
(10
|
)
|
|
19
|
|
|
—
|
|
|
9
|
|
|||||
Income/(loss) before income taxes
|
—
|
|
|
657
|
|
|
4,873
|
|
|
—
|
|
|
5,530
|
|
|||||
Provision for/(benefit from) income taxes
|
—
|
|
|
(221
|
)
|
|
(5,239
|
)
|
|
—
|
|
|
(5,460
|
)
|
|||||
Equity in earnings of subsidiaries
|
10,999
|
|
|
10,121
|
|
|
—
|
|
|
(21,120
|
)
|
|
—
|
|
|||||
Net income/(loss)
|
10,999
|
|
|
10,999
|
|
|
10,112
|
|
|
(21,120
|
)
|
|
10,990
|
|
|||||
Net income/(loss) attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
|||||
Net income/(loss) excluding noncontrolling interest
|
$
|
10,999
|
|
|
$
|
10,999
|
|
|
$
|
10,121
|
|
|
$
|
(21,120
|
)
|
|
$
|
10,999
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Comprehensive income/(loss) excluding noncontrolling interest
|
$
|
11,573
|
|
|
$
|
11,573
|
|
|
$
|
7,726
|
|
|
$
|
(19,299
|
)
|
|
$
|
11,573
|
|
|
Parent Guarantor
|
|
Subsidiary Issuer
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net sales
|
$
|
—
|
|
|
$
|
17,809
|
|
|
$
|
9,310
|
|
|
$
|
(632
|
)
|
|
$
|
26,487
|
|
Cost of products sold
|
—
|
|
|
11,156
|
|
|
6,377
|
|
|
(632
|
)
|
|
16,901
|
|
|||||
Gross profit
|
—
|
|
|
6,653
|
|
|
2,933
|
|
|
—
|
|
|
9,586
|
|
|||||
Selling, general and administrative expenses
|
—
|
|
|
970
|
|
|
2,474
|
|
|
—
|
|
|
3,444
|
|
|||||
Intercompany service fees and other recharges
|
—
|
|
|
4,624
|
|
|
(4,624
|
)
|
|
—
|
|
|
—
|
|
|||||
Operating income
|
—
|
|
|
1,059
|
|
|
5,083
|
|
|
—
|
|
|
6,142
|
|
|||||
Interest expense
|
—
|
|
|
1,076
|
|
|
58
|
|
|
—
|
|
|
1,134
|
|
|||||
Other expense/(income), net
|
—
|
|
|
144
|
|
|
(159
|
)
|
|
—
|
|
|
(15
|
)
|
|||||
Income/(loss) before income taxes
|
—
|
|
|
(161
|
)
|
|
5,184
|
|
|
—
|
|
|
5,023
|
|
|||||
Provision for/(benefit from) income taxes
|
—
|
|
|
(372
|
)
|
|
1,753
|
|
|
—
|
|
|
1,381
|
|
|||||
Equity in earnings of subsidiaries
|
3,632
|
|
|
3,421
|
|
|
—
|
|
|
(7,053
|
)
|
|
—
|
|
|||||
Net income/(loss)
|
3,632
|
|
|
3,632
|
|
|
3,431
|
|
|
(7,053
|
)
|
|
3,642
|
|
|||||
Net income/(loss) attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
|||||
Net income/(loss) excluding noncontrolling interest
|
$
|
3,632
|
|
|
$
|
3,632
|
|
|
$
|
3,421
|
|
|
$
|
(7,053
|
)
|
|
$
|
3,632
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Comprehensive income/(loss) excluding noncontrolling interest
|
$
|
2,675
|
|
|
$
|
2,675
|
|
|
$
|
5,717
|
|
|
$
|
(8,392
|
)
|
|
$
|
2,675
|
|
|
Parent Guarantor
|
|
Subsidiary Issuer
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net sales
|
$
|
—
|
|
|
$
|
10,580
|
|
|
$
|
8,145
|
|
|
$
|
(387
|
)
|
|
$
|
18,338
|
|
Cost of products sold
|
—
|
|
|
7,298
|
|
|
5,666
|
|
|
(387
|
)
|
|
12,577
|
|
|||||
Gross profit
|
—
|
|
|
3,282
|
|
|
2,479
|
|
|
—
|
|
|
5,761
|
|
|||||
Selling, general and administrative expenses
|
—
|
|
|
1,449
|
|
|
1,673
|
|
|
—
|
|
|
3,122
|
|
|||||
Intercompany service fees and other recharges
|
—
|
|
|
929
|
|
|
(929
|
)
|
|
—
|
|
|
—
|
|
|||||
Operating income
|
—
|
|
|
904
|
|
|
1,735
|
|
|
—
|
|
|
2,639
|
|
|||||
Interest expense
|
—
|
|
|
1,221
|
|
|
100
|
|
|
—
|
|
|
1,321
|
|
|||||
Other expense/(income), net
|
—
|
|
|
140
|
|
|
165
|
|
|
—
|
|
|
305
|
|
|||||
Income/(loss) before income taxes
|
—
|
|
|
(457
|
)
|
|
1,470
|
|
|
—
|
|
|
1,013
|
|
|||||
Provision for/(benefit from) income taxes
|
—
|
|
|
(192
|
)
|
|
558
|
|
|
—
|
|
|
366
|
|
|||||
Equity in earnings of subsidiaries
|
634
|
|
|
899
|
|
|
—
|
|
|
(1,533
|
)
|
|
—
|
|
|||||
Net income/(loss)
|
634
|
|
|
634
|
|
|
912
|
|
|
(1,533
|
)
|
|
647
|
|
|||||
Net income/(loss) attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
|||||
Net income/(loss) excluding noncontrolling interest
|
$
|
634
|
|
|
$
|
634
|
|
|
$
|
899
|
|
|
$
|
(1,533
|
)
|
|
$
|
634
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Comprehensive income/(loss) excluding noncontrolling interest
|
$
|
537
|
|
|
$
|
537
|
|
|
$
|
(734
|
)
|
|
$
|
197
|
|
|
$
|
537
|
|
|
Parent Guarantor
|
|
Subsidiary Issuer
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
509
|
|
|
$
|
1,120
|
|
|
$
|
—
|
|
|
$
|
1,629
|
|
Trade receivables
|
—
|
|
|
91
|
|
|
830
|
|
|
—
|
|
|
921
|
|
|||||
Receivables due from affiliates
|
—
|
|
|
716
|
|
|
207
|
|
|
(923
|
)
|
|
—
|
|
|||||
Dividends due from affiliates
|
135
|
|
|
—
|
|
|
—
|
|
|
(135
|
)
|
|
—
|
|
|||||
Sold receivables
|
—
|
|
|
—
|
|
|
353
|
|
|
—
|
|
|
353
|
|
|||||
Income taxes receivable
|
—
|
|
|
1,904
|
|
|
97
|
|
|
(1,419
|
)
|
|
582
|
|
|||||
Inventories
|
—
|
|
|
1,846
|
|
|
969
|
|
|
—
|
|
|
2,815
|
|
|||||
Short-term lending due from affiliates
|
—
|
|
|
1,598
|
|
|
3,816
|
|
|
(5,414
|
)
|
|
—
|
|
|||||
Other current assets
|
—
|
|
|
493
|
|
|
473
|
|
|
—
|
|
|
966
|
|
|||||
Total current assets
|
135
|
|
|
7,157
|
|
|
7,865
|
|
|
(7,891
|
)
|
|
7,266
|
|
|||||
Property, plant and equipment, net
|
—
|
|
|
4,577
|
|
|
2,543
|
|
|
—
|
|
|
7,120
|
|
|||||
Goodwill
|
—
|
|
|
11,067
|
|
|
33,757
|
|
|
—
|
|
|
44,824
|
|
|||||
Investments in subsidiaries
|
66,034
|
|
|
80,426
|
|
|
—
|
|
|
(146,460
|
)
|
|
—
|
|
|||||
Intangible assets, net
|
—
|
|
|
3,222
|
|
|
56,227
|
|
|
—
|
|
|
59,449
|
|
|||||
Long-term lending due from affiliates
|
—
|
|
|
1,700
|
|
|
2,029
|
|
|
(3,729
|
)
|
|
—
|
|
|||||
Other assets
|
—
|
|
|
515
|
|
|
1,058
|
|
|
—
|
|
|
1,573
|
|
|||||
TOTAL ASSETS
|
$
|
66,169
|
|
|
$
|
108,664
|
|
|
$
|
103,479
|
|
|
$
|
(158,080
|
)
|
|
$
|
120,232
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial paper and other short-term debt
|
$
|
—
|
|
|
$
|
448
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
460
|
|
Current portion of long-term debt
|
—
|
|
|
2,577
|
|
|
166
|
|
|
—
|
|
|
2,743
|
|
|||||
Short-term lending due to affiliates
|
—
|
|
|
3,816
|
|
|
1,598
|
|
|
(5,414
|
)
|
|
—
|
|
|||||
Trade payables
|
—
|
|
|
2,718
|
|
|
1,731
|
|
|
—
|
|
|
4,449
|
|
|||||
Payables due to affiliates
|
—
|
|
|
207
|
|
|
716
|
|
|
(923
|
)
|
|
—
|
|
|||||
Accrued marketing
|
—
|
|
|
236
|
|
|
444
|
|
|
—
|
|
|
680
|
|
|||||
Accrued postemployment costs
|
—
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
51
|
|
|||||
Income taxes payable
|
—
|
|
|
—
|
|
|
1,571
|
|
|
(1,419
|
)
|
|
152
|
|
|||||
Interest payable
|
—
|
|
|
404
|
|
|
15
|
|
|
—
|
|
|
419
|
|
|||||
Dividends due to affiliates
|
—
|
|
|
135
|
|
|
—
|
|
|
(135
|
)
|
|
—
|
|
|||||
Other current liabilities
|
135
|
|
|
473
|
|
|
570
|
|
|
—
|
|
|
1,178
|
|
|||||
Total current liabilities
|
135
|
|
|
11,014
|
|
|
6,874
|
|
|
(7,891
|
)
|
|
10,132
|
|
|||||
Long-term debt
|
—
|
|
|
27,442
|
|
|
891
|
|
|
—
|
|
|
28,333
|
|
|||||
Long-term borrowings due to affiliates
|
—
|
|
|
2,029
|
|
|
1,919
|
|
|
(3,948
|
)
|
|
—
|
|
|||||
Deferred income taxes
|
—
|
|
|
1,245
|
|
|
12,831
|
|
|
—
|
|
|
14,076
|
|
|||||
Accrued postemployment costs
|
—
|
|
|
184
|
|
|
243
|
|
|
—
|
|
|
427
|
|
|||||
Other liabilities
|
—
|
|
|
716
|
|
|
301
|
|
|
—
|
|
|
1,017
|
|
|||||
TOTAL LIABILITIES
|
135
|
|
|
42,630
|
|
|
23,059
|
|
|
(11,839
|
)
|
|
53,985
|
|
|||||
Redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|||||
Total shareholders’ equity
|
66,034
|
|
|
66,034
|
|
|
80,207
|
|
|
(146,241
|
)
|
|
66,034
|
|
|||||
Noncontrolling interest
|
—
|
|
|
—
|
|
|
207
|
|
|
—
|
|
|
207
|
|
|||||
TOTAL EQUITY
|
66,034
|
|
|
66,034
|
|
|
80,414
|
|
|
(146,241
|
)
|
|
66,241
|
|
|||||
TOTAL LIABILITIES AND EQUITY
|
$
|
66,169
|
|
|
$
|
108,664
|
|
|
$
|
103,479
|
|
|
$
|
(158,080
|
)
|
|
$
|
120,232
|
|
|
Parent Guarantor
|
|
Subsidiary Issuer
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
2,830
|
|
|
$
|
1,374
|
|
|
$
|
—
|
|
|
$
|
4,204
|
|
Trade receivables
|
—
|
|
|
12
|
|
|
757
|
|
|
—
|
|
|
769
|
|
|||||
Receivables due from affiliates
|
—
|
|
|
712
|
|
|
111
|
|
|
(823
|
)
|
|
—
|
|
|||||
Dividends due from affiliates
|
39
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
—
|
|
|||||
Sold receivables
|
—
|
|
|
—
|
|
|
129
|
|
|
—
|
|
|
129
|
|
|||||
Income taxes receivable
|
—
|
|
|
1,959
|
|
|
10
|
|
|
(1,709
|
)
|
|
260
|
|
|||||
Inventories
|
—
|
|
|
1,759
|
|
|
925
|
|
|
—
|
|
|
2,684
|
|
|||||
Short-term lending due from affiliates
|
—
|
|
|
1,722
|
|
|
2,956
|
|
|
(4,678
|
)
|
|
—
|
|
|||||
Other current assets
|
—
|
|
|
270
|
|
|
437
|
|
|
—
|
|
|
707
|
|
|||||
Total current assets
|
39
|
|
|
9,264
|
|
|
6,699
|
|
|
(7,249
|
)
|
|
8,753
|
|
|||||
Property, plant and equipment, net
|
—
|
|
|
4,447
|
|
|
2,241
|
|
|
—
|
|
|
6,688
|
|
|||||
Goodwill
|
—
|
|
|
11,067
|
|
|
33,058
|
|
|
—
|
|
|
44,125
|
|
|||||
Investments in subsidiaries
|
57,358
|
|
|
70,877
|
|
|
—
|
|
|
(128,235
|
)
|
|
—
|
|
|||||
Intangible assets, net
|
—
|
|
|
3,364
|
|
|
55,933
|
|
|
—
|
|
|
59,297
|
|
|||||
Long-term lending due from affiliates
|
—
|
|
|
1,700
|
|
|
2,000
|
|
|
(3,700
|
)
|
|
—
|
|
|||||
Other assets
|
—
|
|
|
501
|
|
|
1,116
|
|
|
—
|
|
|
1,617
|
|
|||||
TOTAL ASSETS
|
$
|
57,397
|
|
|
$
|
101,220
|
|
|
$
|
101,047
|
|
|
$
|
(139,184
|
)
|
|
$
|
120,480
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial paper and other short-term debt
|
$
|
—
|
|
|
$
|
642
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
645
|
|
Current portion of long-term debt
|
—
|
|
|
2,032
|
|
|
14
|
|
|
—
|
|
|
2,046
|
|
|||||
Short-term lending due to affiliates
|
—
|
|
|
2,956
|
|
|
1,722
|
|
|
(4,678
|
)
|
|
—
|
|
|||||
Trade payables
|
—
|
|
|
2,376
|
|
|
1,620
|
|
|
—
|
|
|
3,996
|
|
|||||
Payables due to affiliates
|
—
|
|
|
111
|
|
|
712
|
|
|
(823
|
)
|
|
—
|
|
|||||
Accrued marketing
|
—
|
|
|
277
|
|
|
472
|
|
|
—
|
|
|
749
|
|
|||||
Accrued postemployment costs
|
—
|
|
|
144
|
|
|
13
|
|
|
—
|
|
|
157
|
|
|||||
Income taxes payable
|
—
|
|
|
—
|
|
|
1,964
|
|
|
(1,709
|
)
|
|
255
|
|
|||||
Interest payable
|
—
|
|
|
401
|
|
|
14
|
|
|
—
|
|
|
415
|
|
|||||
Dividends due to affiliates
|
—
|
|
|
39
|
|
|
—
|
|
|
(39
|
)
|
|
—
|
|
|||||
Other current liabilities
|
39
|
|
|
588
|
|
|
611
|
|
|
—
|
|
|
1,238
|
|
|||||
Total current liabilities
|
39
|
|
|
9,566
|
|
|
7,145
|
|
|
(7,249
|
)
|
|
9,501
|
|
|||||
Long-term debt
|
—
|
|
|
28,736
|
|
|
977
|
|
|
—
|
|
|
29,713
|
|
|||||
Long-term borrowings due to affiliates
|
—
|
|
|
2,000
|
|
|
1,902
|
|
|
(3,902
|
)
|
|
—
|
|
|||||
Deferred income taxes
|
—
|
|
|
1,382
|
|
|
19,466
|
|
|
—
|
|
|
20,848
|
|
|||||
Accrued postemployment costs
|
—
|
|
|
1,754
|
|
|
284
|
|
|
—
|
|
|
2,038
|
|
|||||
Other liabilities
|
—
|
|
|
424
|
|
|
382
|
|
|
—
|
|
|
806
|
|
|||||
TOTAL LIABILITIES
|
39
|
|
|
43,862
|
|
|
30,156
|
|
|
(11,151
|
)
|
|
62,906
|
|
|||||
Redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total shareholders’ equity
|
57,358
|
|
|
57,358
|
|
|
70,675
|
|
|
(128,033
|
)
|
|
57,358
|
|
|||||
Noncontrolling interest
|
—
|
|
|
—
|
|
|
216
|
|
|
—
|
|
|
216
|
|
|||||
TOTAL EQUITY
|
57,358
|
|
|
57,358
|
|
|
70,891
|
|
|
(128,033
|
)
|
|
57,574
|
|
|||||
TOTAL LIABILITIES AND EQUITY
|
$
|
57,397
|
|
|
$
|
101,220
|
|
|
$
|
101,047
|
|
|
$
|
(139,184
|
)
|
|
$
|
120,480
|
|
|
Parent Guarantor
|
|
Subsidiary Issuer
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by/(used for) operating activities
|
$
|
2,888
|
|
|
$
|
1,499
|
|
|
$
|
(972
|
)
|
|
$
|
(2,888
|
)
|
|
$
|
527
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash receipts on sold receivables
|
—
|
|
|
—
|
|
|
2,286
|
|
|
—
|
|
|
2,286
|
|
|||||
Capital expenditures
|
—
|
|
|
(757
|
)
|
|
(460
|
)
|
|
—
|
|
|
(1,217
|
)
|
|||||
Proceeds from net investment hedges
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Net proceeds from/(payments on) intercompany lending activities
|
—
|
|
|
641
|
|
|
(542
|
)
|
|
(99
|
)
|
|
—
|
|
|||||
Additional investments in subsidiaries
|
(22
|
)
|
|
—
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|||||
Other investing activities, net
|
—
|
|
|
58
|
|
|
23
|
|
|
—
|
|
|
81
|
|
|||||
Net cash provided by/(used for) investing activities
|
(22
|
)
|
|
(52
|
)
|
|
1,307
|
|
|
(77
|
)
|
|
1,156
|
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Repayments of long-term debt
|
—
|
|
|
(2,632
|
)
|
|
(12
|
)
|
|
—
|
|
|
(2,644
|
)
|
|||||
Proceeds from issuance of long-term debt
|
—
|
|
|
1,496
|
|
|
—
|
|
|
—
|
|
|
1,496
|
|
|||||
Debt issuance costs
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|||||
Net proceeds from/(payments on) intercompany borrowing activities
|
—
|
|
|
542
|
|
|
(641
|
)
|
|
99
|
|
|
—
|
|
|||||
Proceeds from issuance of commercial paper
|
—
|
|
|
6,043
|
|
|
—
|
|
|
—
|
|
|
6,043
|
|
|||||
Repayments of commercial paper
|
—
|
|
|
(6,249
|
)
|
|
—
|
|
|
—
|
|
|
(6,249
|
)
|
|||||
Dividends paid-Series A Preferred Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Dividends paid-common stock
|
(2,888
|
)
|
|
(2,888
|
)
|
|
—
|
|
|
2,888
|
|
|
(2,888
|
)
|
|||||
Redemption of Series A Preferred Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other intercompany capital stock transactions
|
—
|
|
|
22
|
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
|||||
Other financing activities, net
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|||||
Net cash provided by/(used for) financing activities
|
(2,866
|
)
|
|
(3,672
|
)
|
|
(653
|
)
|
|
2,965
|
|
|
(4,226
|
)
|
|||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
|
—
|
|
|
—
|
|
|
57
|
|
|
—
|
|
|
57
|
|
|||||
Cash, cash equivalents, and restricted cash:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net increase/(decrease)
|
—
|
|
|
(2,225
|
)
|
|
(261
|
)
|
|
—
|
|
|
(2,486
|
)
|
|||||
Balance at beginning of period
|
—
|
|
|
2,869
|
|
|
1,386
|
|
|
—
|
|
|
4,255
|
|
|||||
Balance at end of period
|
$
|
—
|
|
|
$
|
644
|
|
|
$
|
1,125
|
|
|
$
|
—
|
|
|
$
|
1,769
|
|
|
Parent Guarantor
|
|
Subsidiary Issuer
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by/(used for) operating activities
|
$
|
3,097
|
|
|
$
|
4,369
|
|
|
$
|
(1,705
|
)
|
|
$
|
(3,112
|
)
|
|
$
|
2,649
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash receipts on sold receivables
|
—
|
|
|
—
|
|
|
2,589
|
|
|
—
|
|
|
2,589
|
|
|||||
Capital expenditures
|
—
|
|
|
(923
|
)
|
|
(324
|
)
|
|
—
|
|
|
(1,247
|
)
|
|||||
Proceeds from net investment hedges
|
—
|
|
|
104
|
|
|
(13
|
)
|
|
—
|
|
|
91
|
|
|||||
Net proceeds from/(payments on) intercompany lending activities
|
—
|
|
|
690
|
|
|
37
|
|
|
(727
|
)
|
|
—
|
|
|||||
Additional investments in subsidiaries
|
55
|
|
|
(10
|
)
|
|
—
|
|
|
(45
|
)
|
|
—
|
|
|||||
Return of capital
|
8,987
|
|
|
—
|
|
|
—
|
|
|
(8,987
|
)
|
|
—
|
|
|||||
Other investing activities, net
|
—
|
|
|
25
|
|
|
(6
|
)
|
|
—
|
|
|
19
|
|
|||||
Net cash provided by/(used for) investing activities
|
9,042
|
|
|
(114
|
)
|
|
2,283
|
|
|
(9,759
|
)
|
|
1,452
|
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Repayments of long-term debt
|
—
|
|
|
(72
|
)
|
|
(14
|
)
|
|
—
|
|
|
(86
|
)
|
|||||
Proceeds from issuance of long-term debt
|
—
|
|
|
6,978
|
|
|
3
|
|
|
—
|
|
|
6,981
|
|
|||||
Debt issuance costs
|
—
|
|
|
(53
|
)
|
|
—
|
|
|
—
|
|
|
(53
|
)
|
|||||
Net proceeds from/(payments on) intercompany borrowing activities
|
—
|
|
|
(37
|
)
|
|
(690
|
)
|
|
727
|
|
|
—
|
|
|||||
Proceeds from issuance of commercial paper
|
—
|
|
|
6,680
|
|
|
—
|
|
|
—
|
|
|
6,680
|
|
|||||
Repayments of commercial paper
|
—
|
|
|
(6,043
|
)
|
|
—
|
|
|
—
|
|
|
(6,043
|
)
|
|||||
Dividends paid-Series A Preferred Stock
|
(180
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(180
|
)
|
|||||
Dividends paid-common stock
|
(3,584
|
)
|
|
(3,764
|
)
|
|
(16
|
)
|
|
3,780
|
|
|
(3,584
|
)
|
|||||
Redemption of Series A Preferred Stock
|
(8,320
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,320
|
)
|
|||||
Other intercompany capital stock transactions
|
—
|
|
|
(8,374
|
)
|
|
10
|
|
|
8,364
|
|
|
—
|
|
|||||
Other financing activities, net
|
(55
|
)
|
|
47
|
|
|
(8
|
)
|
|
—
|
|
|
(16
|
)
|
|||||
Net cash provided by/(used for) financing activities
|
(12,139
|
)
|
|
(4,638
|
)
|
|
(715
|
)
|
|
12,871
|
|
|
(4,621
|
)
|
|||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
|
—
|
|
|
—
|
|
|
(137
|
)
|
|
—
|
|
|
(137
|
)
|
|||||
Cash, cash equivalents, and restricted cash:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net increase/(decrease)
|
—
|
|
|
(383
|
)
|
|
(274
|
)
|
|
—
|
|
|
(657
|
)
|
|||||
Balance at beginning of period
|
—
|
|
|
3,252
|
|
|
1,660
|
|
|
—
|
|
|
4,912
|
|
|||||
Balance at end of period
|
$
|
—
|
|
|
$
|
2,869
|
|
|
$
|
1,386
|
|
|
$
|
—
|
|
|
$
|
4,255
|
|
|
Parent Guarantor
|
|
Subsidiary Issuer
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by/(used for) operating activities
|
$
|
632
|
|
|
$
|
1,363
|
|
|
$
|
64
|
|
|
$
|
(787
|
)
|
|
$
|
1,272
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash receipts on sold receivables
|
—
|
|
|
—
|
|
|
1,331
|
|
|
—
|
|
|
1,331
|
|
|||||
Capital expenditures
|
—
|
|
|
(400
|
)
|
|
(248
|
)
|
|
—
|
|
|
(648
|
)
|
|||||
Proceeds from net investment hedges
|
—
|
|
|
488
|
|
|
—
|
|
|
—
|
|
|
488
|
|
|||||
Net proceeds from/(payments on) intercompany lending activities
|
—
|
|
|
737
|
|
|
(721
|
)
|
|
(16
|
)
|
|
—
|
|
|||||
Payments to acquire Kraft Foods Group, Inc., net of cash acquired
|
—
|
|
|
(9,535
|
)
|
|
67
|
|
|
—
|
|
|
(9,468
|
)
|
|||||
Additional investments in subsidiaries
|
(10,000
|
)
|
|
—
|
|
|
—
|
|
|
10,000
|
|
|
—
|
|
|||||
Return of capital
|
1,570
|
|
|
5
|
|
|
—
|
|
|
(1,575
|
)
|
|
—
|
|
|||||
Other investing activities, net
|
—
|
|
|
(2
|
)
|
|
(10
|
)
|
|
—
|
|
|
(12
|
)
|
|||||
Net cash provided by/(used for) investing activities
|
(8,430
|
)
|
|
(8,707
|
)
|
|
419
|
|
|
8,409
|
|
|
(8,309
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Repayments of long-term debt
|
—
|
|
|
(12,284
|
)
|
|
(30
|
)
|
|
—
|
|
|
(12,314
|
)
|
|||||
Proceeds from issuance of long-term debt
|
—
|
|
|
14,032
|
|
|
802
|
|
|
—
|
|
|
14,834
|
|
|||||
Debt prepayment and extinguishment costs
|
—
|
|
|
(105
|
)
|
|
—
|
|
|
—
|
|
|
(105
|
)
|
|||||
Debt issuance costs
|
—
|
|
|
(94
|
)
|
|
(4
|
)
|
|
—
|
|
|
(98
|
)
|
|||||
Net proceeds from/(payments on) intercompany borrowing activities
|
—
|
|
|
721
|
|
|
(737
|
)
|
|
16
|
|
|
—
|
|
|||||
Proceeds from issuance of common stock to Sponsors
|
10,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,000
|
|
|||||
Dividends paid-Series A Preferred Stock
|
(900
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(900
|
)
|
|||||
Dividends paid-common stock
|
(1,302
|
)
|
|
(2,202
|
)
|
|
(155
|
)
|
|
2,357
|
|
|
(1,302
|
)
|
|||||
Other intercompany capital stock transactions
|
—
|
|
|
10,000
|
|
|
(5
|
)
|
|
(9,995
|
)
|
|
—
|
|
|||||
Other financing activities, net
|
—
|
|
|
(12
|
)
|
|
(56
|
)
|
|
—
|
|
|
(68
|
)
|
|||||
Net cash provided by/(used for) financing activities
|
7,798
|
|
|
10,056
|
|
|
(185
|
)
|
|
(7,622
|
)
|
|
10,047
|
|
|||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
|
—
|
|
|
—
|
|
|
(408
|
)
|
|
—
|
|
|
(408
|
)
|
|||||
Cash, cash equivalents, and restricted cash:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net increase/(decrease)
|
—
|
|
|
2,712
|
|
|
(110
|
)
|
|
—
|
|
|
2,602
|
|
|||||
Balance at beginning of period
|
—
|
|
|
540
|
|
|
1,770
|
|
|
—
|
|
|
2,310
|
|
|||||
Balance at end of period
|
$
|
—
|
|
|
$
|
3,252
|
|
|
$
|
1,660
|
|
|
$
|
—
|
|
|
$
|
4,912
|
|
|
December 30, 2017
|
||||||||||||||||||
|
Parent Guarantor
|
|
Subsidiary Issuer
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
509
|
|
|
$
|
1,120
|
|
|
$
|
—
|
|
|
$
|
1,629
|
|
Restricted cash included in other assets (current)
|
—
|
|
|
135
|
|
|
5
|
|
|
—
|
|
|
140
|
|
|||||
Cash, cash equivalents, and restricted cash
|
$
|
—
|
|
|
$
|
644
|
|
|
$
|
1,125
|
|
|
$
|
—
|
|
|
$
|
1,769
|
|
|
December 31, 2016
|
||||||||||||||||||
|
Parent Guarantor
|
|
Subsidiary Issuer
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
2,830
|
|
|
$
|
1,374
|
|
|
$
|
—
|
|
|
$
|
4,204
|
|
Restricted cash included in other assets (current)
|
—
|
|
|
39
|
|
|
3
|
|
|
—
|
|
|
42
|
|
|||||
Restricted cash included in other assets (noncurrent)
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
|||||
Cash, cash equivalents, and restricted cash
|
$
|
—
|
|
|
$
|
2,869
|
|
|
$
|
1,386
|
|
|
$
|
—
|
|
|
$
|
4,255
|
|
•
|
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets;
|
•
|
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles;
|
•
|
provide reasonable assurance that receipts and expenditures are being made only in accordance with management and director authorization; and
|
•
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on the consolidated financial statements.
|
|
Number of securities to be issued upon exercise of outstanding options, warrants and rights
(1)
|
|
Weighted average exercise price per share of outstanding options, warrants and rights
|
|
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
|
||||
Plan Category
|
(a)
|
|
(b)
|
|
(c)
|
||||
Equity compensation plans approved by security holders
|
21,396,351
|
|
|
$
|
41.63
|
|
|
48,723,411
|
|
Equity compensation plans not approved by security holders
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
21,396,351
|
|
|
|
|
48,723,411
|
|
|
Page No.
|
Exhibit No.
|
|
Descriptions
|
2.1
|
|
|
2.2
|
|
|
2.3
|
|
|
2.4
|
|
|
2.5
|
|
|
2.6
|
|
2.7
|
|
|
2.8
|
|
|
2.9
|
|
|
3.1
|
|
|
3.2
|
|
|
4.1
|
|
|
4.2
|
|
|
4.3
|
|
|
4.4
|
|
|
4.5
|
|
|
4.6
|
|
|
4.7
|
|
|
4.8
|
|
|
4.9
|
|
|
4.10
|
|
|
4.11
|
|
4.12
|
|
|
4.13
|
|
|
4.14
|
|
|
4.15
|
|
|
4.16
|
|
|
4.17
|
|
|
4.18
|
|
|
4.19
|
|
|
4.20
|
|
|
4.21
|
|
|
4.22
|
|
|
4.23
|
|
|
4.24
|
|
|
4.25
|
|
|
4.26
|
|
4.27
|
|
|
4.28
|
|
|
4.29
|
|
|
4.30
|
|
|
10.1
|
|
|
10.2
|
|
|
10.3
|
|
|
10.4
|
|
|
10.5
|
|
|
10.6
|
|
|
10.7
|
|
|
10.8
|
|
|
10.9
|
|
|
10.10
|
|
|
10.11
|
|
|
10.12
|
|
|
10.13
|
|
|
10.14
|
|
10.15
|
|
|
10.16
|
|
|
10.17
|
|
|
10.18
|
|
|
10.19
|
|
|
10.20
|
|
|
21.1
|
|
|
23.1
|
|
|
24.1
|
|
|
31.1
|
|
|
31.2
|
|
|
32.1
|
|
|
32.2
|
|
|
101.1
|
|
The following materials from The Kraft Heinz Company’s Annual Report on Form 10-K for the year ended December 30, 2017 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Statements of Equity, (iv) the Consolidated Balance Sheets, (v) the Consolidated Statements of Cash Flows, (vi) Notes to Consolidated Financial Statements, and (vii) document and entity information.
|
|
|
|
+
|
|
The Company agrees to furnish supplementally a copy of any omitted attachment to the SEC on a confidential basis upon request.
|
++
|
|
Indicates a management contract or compensatory plan or arrangement.
|
|
|
The Kraft Heinz Company
|
|
Date:
|
February 16, 2018
|
|
|
|
|
By:
|
/s/ David H. Knopf
|
|
|
|
David H. Knopf
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Bernardo Hees
|
|
Chief Executive Officer
|
|
February 16, 2018
|
Bernardo Hees
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/ David H. Knopf
|
|
Executive Vice President and Chief Financial Officer
|
|
February 16, 2018
|
David H. Knopf
|
|
(Principal Financial Officer)
|
|
|
|
|
|
|
|
/s/ Christopher R. Skinger
|
|
Vice President, Global Controller
|
|
February 16, 2018
|
Christopher R. Skinger
|
|
(Principal Accounting Officer)
|
|
|
Alexandre Behring*
|
|
Chairman of the Board
|
|
|
|
John T. Cahill*
|
|
Vice Chairman of the Board
|
|
|
|
Gregory E. Abel*
|
|
Director
|
|
|
|
Warren E. Buffett*
|
|
Director
|
|
|
|
Tracy Britt Cool*
|
|
Director
|
|
|
|
Feroz Dewan*
|
|
Director
|
|
|
|
Jeanne P. Jackson*
|
|
Director
|
|
|
|
Jorge Paulo Lemann*
|
|
Director
|
|
|
|
Mackey J. McDonald*
|
|
Director
|
|
|
|
John C. Pope*
|
|
Director
|
|
|
|
Marcel Herrmann Telles*
|
|
Director
|
*By:
|
/s/ David H. Knopf
|
|
David H. Knopf
|
|
Attorney-In-Fact
|
|
February 16, 2018
|
|
|
|
Additions
|
|
Deductions
|
|
|
||||||||||||
Description
|
Balance at Beginning of Period
|
|
Charged to Costs and Expenses
|
|
Charged to Other Accounts
(a)
|
|
Write-offs and Reclassifications
|
|
Balance at End of Period
|
||||||||||
Year ended
December 30, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowances related to trade accounts receivable
|
$
|
20
|
|
|
$
|
8
|
|
|
$
|
1
|
|
|
$
|
(6
|
)
|
|
$
|
23
|
|
Allowances related to deferred taxes
|
89
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
80
|
|
|||||
|
$
|
109
|
|
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
$
|
(6
|
)
|
|
$
|
103
|
|
Year ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowances related to trade accounts receivable
|
$
|
32
|
|
|
$
|
6
|
|
|
$
|
(4
|
)
|
|
$
|
14
|
|
|
$
|
20
|
|
Allowances related to deferred taxes
|
83
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
89
|
|
|||||
|
$
|
115
|
|
|
$
|
12
|
|
|
$
|
(4
|
)
|
|
$
|
14
|
|
|
$
|
109
|
|
Year ended January 3, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowances related to trade accounts receivable
|
$
|
8
|
|
|
$
|
5
|
|
|
$
|
20
|
|
|
$
|
1
|
|
|
$
|
32
|
|
Allowances related to deferred taxes
|
64
|
|
|
10
|
|
|
12
|
|
|
3
|
|
|
83
|
|
|||||
|
$
|
72
|
|
|
$
|
15
|
|
|
$
|
32
|
|
|
$
|
4
|
|
|
$
|
115
|
|
(a)
|
Primarily relates to acquisitions and currency translation.
|
1 Year Kraft Heinz Chart |
1 Month Kraft Heinz Chart |
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