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UNITED STATES
証券取引委員会
ワシントンD.C. 20549

フォーム10-Q
（表1）
☒ 証券取引法第13条または第15条(d)に基づく四半期報告書
報告期間が終了した2023年6月30日をもって2024年9月28日
または
☐ 証券取引法第13条または第15条(d)に基づく移行報告書
移行期間：__________から__________まで

報告書番号：001-37482
kraftheinzlogo49.jpg
The クラフト・ハインツ社会社
（会社設立時の指定名）
デラウェア 46-2078182
（設立または組織の州または管轄区域）（国税庁雇用者識別番号）
One PPG Place、ピッツバーグペンシルバニア州 15222
(主要執行オフィスの住所)（郵便番号）

(412) 456-5700
（登録者の電話番号（市外局番を含む））

（法人格の設立または組織の州またはその他の管轄区域）
（前回の報告以来変更された場合の前名称、前住所、および前決算期）

法律第12条（b）項に基づく登録証券
各クラスの名称取引シンボル登録されている各取引所の名称
普通株式、$0.01の割面価値KHCThe Nasdaq Stock Market LLC
KHC25ナスダック取引所The Nasdaq Stock Market LLC
2029年までの3.500％優先債/シニア債(KHC29)
KHC29
The Nasdaq Stock Market LLC

本登録者が、前述の12か月間（あるいは登録者が当該報告書を提出しなければならなかった短い期間）において、証券取引法第13条または15条（d）で定められた提出すべき報告書を全て提出したかどうかをチェックマークで示し、(2) 本登録者が過去90日間にわたってその提出要件に従っていたかどうかを示します。はい ☒なし☐
規則405に基づき、本章の§232.405に規定されている対話型データファイルを、過去12か月間（またはそのようなファイルを提出する義務があった期間の短い場合）に電子提出したかどうかをチェックマークで示してください。はい ☒なし☐
申請者が大型加速装置、加速装置、ノンアクセル装置、小規模報告会社、または新興グロース会社である場合は、註記欄にチェックマークを付けてください。規則120億2に記載されている「大型加速装置」、「加速装置」、「小規模報告会社」、「新興グロース会社」の定義を参照してください。
大型加速ファイラー☒加速ファイラー☐
非加速ファイラー☐レポート義務のある中小企業☐新興成長企業☐



新興成長企業の場合は、証券取引法第13条（a）に基づく新しいまたは改訂された財務会計基準の遵守に対する延長移行期間を使用しないことを選択したかどうかにチェックマークをつけてください。 ☐
登録者が殻会社である場合は、Exchange法のRule 12b-2で定義された「殻会社」であることを示してください。 はい☐いいえ ☒

2024年10月26日時点で、 1,209,174,894登録者の普通株式の発行済み株式数は32,817,464株です。


目次
コンテキストによって異なる場合を除き、用語「我々」「私たち」「弊社」「クラフトハインツ」「会社」は、クラフトハインツカンパニーとその全ての子会社を指します。


出典：Nutex Health, Inc。
このフォーム10-Qには多くの将来を見据えた記述が含まれています。「予期する」「信じる」「できる」「見積もる」「期待する」「将来」「意図する」「計画する」「するだろう」「などの単語やこれらの類似未来形や条件形の表現は、将来を見据えた記述を識別するために意図されています。これらの将来を見据えた記述には、ただし、限定されないが、弊社の計画、会計基準と指導の影響、成長、法的事項、税金、費用および費用の節約、減損、および配当に関する記述が含まれます。これらの将来を見据えた記述は、経営陣の現在の期待を反映しており、将来の業績を保証するものではなく、予測が困難であり、弊社のコントロールを超える多くのリスクと不確実性にさらされています。
ビジネスおよび業務に影響を与える可能性のある重要な要素、および前向きな声明とは異なる実際の結果となる可能性のある要素には、以下のようなものがありますが、これらに限定されません：競争の激しい業種での運営、消費者の嗜好や需要の変化を正確に予測し、特定し、解釈し、それに応じた新製品を提供し、競争のイノベーションに対応する能力、小売業界の変化または主要小売顧客の喪失、重要な顧客やサプライヤーとの関係、または他のビジネス関係の変化、評判とブランドイメージを維持、拡大、および増強する能力、ブランド価値を活用してプライベートブランド製品と競争する能力、主要な製品カテゴリやプラットフォームでの売上高の成長、市場シェアの増加、または成長率の高いより利益の出るカテゴリに製品を追加する能力、製品の回収やその他の製品責任請求、気候変動と法的または規制上の対応、戦略的な買収、売却、提携、合弁事業、または投資の特定、完了、または利益の実現の能力、戦略的なイニシアチブを成功裏に遂行する能力、国際運営の影響、知的財産権を保護する能力、事前または将来の固定費削減、プロセスの合理化または改善、競争力の向上からの利益が予想どおりに実現する能力、最大の株主による影響、負債の水準、および債務契約に遵守する能力、商標の帳簿価額またはその他の無形固定資産の帳簿価額の追加の減損、為替相場の変動、ベンチマークなど、商品、エネルギー、およびその他の原材料費の変動、弊社が使用する商品デリバティブの全体または一部の市場価値の変動、法律および規制の遵守、それに関連する法的請求または規制執行措置、内部統制システムの有効性の維持、信用格付けの引き下げ、公開市場での普通株式の販売の影響、当社の株式自己取得ならびに当社の株式自己取得活動の変更、定期的な配当の継続とその配当金の額、当社やお客様、サプライヤー、流通業者、または規制機関が業務を展開する場所における地政学的な紛争、予期しない業務の混乱、および自然災害によるグローバル経済への影響、当社が事業を行う米国およびその他の各国の経済および政治状況（インフレ圧力、金融機関の不安定性、一般的な経済の減速、不況、または潜在的な米国政府のシャットダウン）、当社の経営チームやその他の主要な人員の変更、および主要な人員や高度な技能を持つ多様なグローバル労働力を採用または維持する能力、情報技術およびシステムへの依存、サービスの中断、データの不正利用、またはセキュリティの侵害、年金、労働、および人材に関連する費用の増加、税法および解釈の変更と税務審査の最終決定、その他の訴訟、資本市場の変動およびその他のマクロ経済要因、その他の要素。当社の前向きな声明に影響を及ぼす可能性のあるこれらおよびその他の要素の追加情報については、当社の2023年12月30日までの年次報告書10-kの1A項目「リスクファクター」を参照してください。本報告書の前向きな声明のいかなる更新、修正、または撤回についても、適用される法律または規制により要求される限り、免責および何らの義務も負いません。
弊社は、ir.kraftheinzcompany.comを投資家との関係を維持するための媒体として利用しており、Kraft Heinzに関する重要な情報やマテリアルな情報を定期的に配信しています。これには、四半期および年次の業績結果やプレゼンテーション、プレスリリースやその他の発表、ウェブキャスト、アナリストプレゼンテーション、投資家向けイベント、持続可能性イニシアチブ、財務情報、企業統治に関する取り組みなどが含まれます。過去のプレゼンテーションやイベントのアーカイブも提供しています。当社の投資家向けウェブサイトを追跡し、SECへの提出書類に加えて、タイムリーな情報を入手するようお勧めします。なお、当社ウェブサイトの情報は、この10-Q報告書の一部ではなく、この報告書またはSECへのその他の提出書類と参照の目的で組み込まれたものではありません。


第I部　財務情報
第1項。財務諸表。
The Kraft Heinz Company
損益計算書の簡易連結
（百万ドル、1株当たり金額を除く）
（未確定）
終了した3か月間終了した9か月間
2024年9月28日2023年9月30日2024年9月28日2023年9月30日
純売上高$6,383 $6,570 $19,270 $19,780 
製品の販売コスト4,197 4,335 12,547 13,171 
売上総利益2,186 2,235 6,723 6,609 
減損損失を除く販売費、一般管理費859 920 2,718 2,675 
のれん減損損失707 510 1,561 510 
無形資産の減損損損失721 152 721 152 
販売費、一般管理費2,287 1,582 5,000 3,337 
営業利益/ (損失)(101)653 1,723 3,272 
支払利息230 228 685 683 
その他の費用/（収入）(48)(35)(56)(94)
税引前利益/ (損失)(283)460 1,094 2,683 
所得税の引当金/（給付）7 206 480 594 
当期純利益/ (損失)(290)254 614 2,089 
非支配持分に帰属する純利益/（損失）— (8)1 (9)
普通株主に帰属する純利益/（損失）$(290)$262 $613 $2,098 
普通株主に適用される1株当たりのデータ：
基本収益/（損失）$(0.24)$0.21 $0.51 $1.71 
希薄化後の収益/（損失）(0.24)0.21 0.50 1.70 
続く注記を参照して下さい。
1

The Kraft Heinz Company
総合損益計算書の簡易連結
（百万ドル）
（未確定）
終了した3か月間終了した9か月間
2024年9月28日2023年9月30日2024年9月28日2023年9月30日
当期純利益/ (損失)$(290)$254 $614 $2,089 
その他の包括利益/ (損失)、税引後:
外貨換算調整369 (355)77 (61)
純投資ヘッジの純繰延利益/（損失）(128)92 (25)17 
純投資ヘッジの有効性評価から除外された金額9 7 27 21 
純投資ヘッジの純繰延損失/（利益）を純利益/（損失）に再分類しました(9)(8)(27)(21)
キャッシュフローヘッジの純繰延利益/（損失）(8)14 (5)5 
キャッシュフローヘッジの有効性評価から除外された金額6 3 5 13 
キャッシュフローヘッジの純繰延損失/（利益）を純利益/（損失）に再分類しました(26)13 (7)(18)
公正価値ヘッジの有効性評価から除外された金額(12)— (9)— 
雇用後給付金の純損失/（利益）を純利益/（損失）に再分類しました(3)(1)(10)(8)
その他の包括利益の合計/ (損失)198 (235)26 (52)
包括利益/ (損失) の合計(92)19 640 2,037 
非支配持分に帰属する包括利益/（損失）7 (11)(30)(8)
普通株主に帰属する包括利益/（損失）$(99)$30 $670 $2,045 
続く注記を参照して下さい。
2

The Kraft Heinz Company
簡易合算貸借対照表
（百万ドル、1株当たり金額を除く）
（未確定）
 2024年9月28日2023年12月30日
資産
現金及び現金同等物$1,284 $1,400 
売掛金（当座評価法による控除額を差し引いた金額：資産 2024年6月29日時点で$32 2024年9月28日時点 および $38 2023年12月30日
2,178 2,112 
在庫 3,872 3,614 
前払費用228 234 
その他の流動資産633 566 
売却予定資産7 3 
流動資産合計8,202 7,929 
固定資産、装置及び器具、純額7,137 7,122 
のれん28,946 30,459 
無形資産、純額41,802 42,448 
その他の固定資産2,479 2,381 
資産合計$88,566 $90,339 
負債および純資産
コマーシャルペーパーおよびその他の短期負債$13 $— 
長期借入金の短期部分695 638 
支払調整4,553 4,627 
積立されたマーケティング752 733 
非現金費用の調整:273 258 
その他の流動負債1,442 1,781 
流動負債合計7,728 8,037 
新規買債務19,383 19,394 
繰延税金資産10,023 10,201 
後払いの年金コスト140 143 
長期の未収入1,386 1,424 
その他の長期負債1,437 1,418 
負債合計40,097 40,617 
債務と義務事項 (注14)
交換可能な非支配株式6 34 
株式資本: 
普通株式、1株当たり0.001ドルの割額株式、承認済み株式総数900,000,000株、発行済み株式577,806,659株、2023年12月31日時点での流通株式540,387,949株、発行済み株式577,805,623株、2023年3月31日時点での流通株式545,459,814株、追加資本金0.01（許可株式数5,000株式を承認済み; 1,254発行済み株式数は1,209 2024年9月28日時点で発行済普通株式数; 1,249発行済み株式数は1,218 2023年12月30日の発行済み株式数は
12 12 
追加の資本金52,106 52,037 
留保利益／（欠損）521 1,367 
累積その他綜合利益(損)(2,547)(2,604)
自己株式、購入原価法による(45 2024年9月28日の株式 31 2023年12月30日時点での株式数は
(1,764)(1,286)
株主資本の合計48,328 49,526 
非支配持分135 162 
全株式48,463 49,688 
負債合計および株主資本合計$88,566 $90,339 
続く注記を参照して下さい。
3

The Kraft Heinz Company
株主資本変動計算書の簡易連結
(百万単位)
（未確定）
普通株式追加払込資本利益剰余金/（赤字）その他の包括利益の累積/（損失）自己株式、原価で非支配持分総資本
2023年12月30日の残高$12 $52,037 $1,367 $(2,604)$(1,286)$162 $49,688 
償還可能な非支配持分を除く純利益/（損失）— — 801 — — 2 803 
償還可能な非支配持分を除くその他の包括利益/（損失）— — — (65)— (29)(94)
配当金申告普通株式（$）0.40 一株当たり)
— — (488)— — — (488)
配当金申告非支配持分（$）98.77 一株当たり)
— — — — — (7)(7)
普通株式の買戻し— — — — (280)— (280)
ストックオプションの行使、その他の株式報奨の発行、その他— 13 — — 15 3 31 
2024年3月30日の残高$12 $52,050 $1,680 $(2,669)$(1,551)$131 $49,653 
償還可能な非支配持分を除く純利益/（損失）— — 102 — — (1)101 
償還可能な非支配持分を除くその他の包括利益/（損失）— — — (69)— (4)(73)
配当金申告普通株式（$）0.40 一株当たり)
— — (485)— — — (485)
普通株式の買戻し— — — — (204)— (204)
ストックオプションの行使、その他の株式報奨の発行、その他— 36 — — (7)— 29 
2024年6月29日の残高$12 $52,086 $1,297 $(2,738)$(1,762)$126 $49,021 
償還可能な非支配持分を除く純利益/（損失）— — (290)— — — (290)
償還可能な非支配持分を除くその他の包括利益/（損失）— — — 191 — 8 199 
配当金申告普通株式（$）0.40 一株当たり)
— — (486)— — — (486)
ストックオプションの行使、その他の株式報奨の発行、その他— 20 — — (2)1 19 
2024年9月28日の残高$12 $52,106 $521 $(2,547)$(1,764)$135 $48,463 
4

普通株式資本剰余金留保利益/(赤字)その他包括利益/(損失)自己株式（取得原価法）非支配株主持分株式ファンド
2022年12月31日の残高$12 $51,834 $489 $(2,810)$(847)$152 $48,830 
当期純利益（引き換え可能な非支配株主持分を除く）— — 836 — — 1 837 
その他の包括利益（引き換え可能な非支配株主持分を除く）— — — 62 — 4 66 
普通株式に宣言の配当（$0.40株式当たり)
— — (494)— — — (494)
オプションの行使、その他の株式報酬の発行、普通株式の自社株式買取り、およびその他— 76 — — (5)3 74 
2023年4月1日時点の残高$12 $51,910 $831 $(2,748)$(852)$160 $49,313 
当期純利益（引き換え可能な非支配株主持分を除く）— — 1,000 — — — 1,000 
その他の包括利益（引き換え可能な非支配株主持分を除く）— — — 117 — — 117 
普通株式に宣言の配当（$0.40株式当たり)
— — (495)— — — (495)
オプションの行使、その他の株式報酬の発行、普通株式の自社株式買取り、およびその他— 57 — — (18)— 39 
2023年7月1日の残高$12 $51,967 $1,336 $(2,631)$(870)$160 $49,974 
当期純利益（引き換え可能な非支配株主持分を除く）— — 262 — — (2)260 
その他の包括利益（引き換え可能な非支配株主持分を除く）— — — (232)— (3)(235)
普通株式に宣言の配当（$0.40株式当たり)
— — (494)— — — (494)
オプションの行使、その他の株式報酬の発行、普通株式の自社株式買取り、およびその他— 37 — — (111)3 (71)
2023年9月30日の残高$12 $52,004 $1,104 $(2,863)$(981)$158 $49,434 
続く注記を参照して下さい。
5

The Kraft Heinz Company
簡易連結キャッシュフロー計算書
（百万ドル）
（未確定）
終了した9か月間
2024年9月28日2023年9月30日
営業活動によるキャッシュフロー:
当期純利益/ (損失)$614 $2,089 
純利益/（損失）を営業キャッシュフローと調整するための調整： 
減価償却と償却714 710 
雇用後の福利厚生プランの以前のサービス費用/（クレジット）の償却(6)(10)
売却関連のライセンス収入(41)(41)
株式報奨報酬費用83 110 
繰延所得税規定/（特典）(277)(15)
雇用後の福利厚生制度の拠出金16 (18)
のれんと無形資産の減損損失2,282 662 
非貨幣通貨切り下げ7 27 
事業売却の損失/（利益）78 2 
その他の商品、純額(39)(44)
流動資産および負債の変動：
売掛金(83)(16)
インベントリ(392)(277)
買掛金48 (221)
その他の流動資産(129)139 
その他の流動負債(79)(477)
営業活動によって提供された（使用された）純現金2,796 2,620 
投資活動によるキャッシュフロー:
資本支出(777)(779)
事業の売却による収入（処分された現金と運転資本の調整を差し引いたもの）5 — 
無形資産を取得するための支払い(140)— 
その他の投資活動、純額63 41 
投資活動によって提供された（使用された）純現金(849)(738)
財務活動によるキャッシュフロー:
長期債務の返済(607)(823)
長期債務の発行による収入594 657 
配当金の支払い(1,452)(1,474)
普通株式の買戻し(538)(150)
その他の財務活動、純額(43)(26)
財務活動によって提供された（使用された）純現金(2,046)(1,816)
現金、現金同等物、および制限付現金に対する為替レートの変動の影響(17)(53)
現金、現金同等物、および制限付現金
純増加/（減少）(116)13 
期首残高1,404 1,041 
期末残高$1,288 $1,054 
続く注記を参照して下さい。
6

The Kraft Heinz Company
総合財務諸表の注釈
注1.会計方針 「Performance-Based Awards（成果に基づく受賞）」は、第7.7条に基づき、委員会によって設定されたパフォーマンス目標や他の事業目標の達成に依存して現金、株式またはその他の受賞を受け取るための受賞です。
米国通常受け入れられる会計原則（米国GAAP）に従って作成された財務諸表に通常含まれる特定の情報および脚注の開示が、SECの規則に従って省略されています。管理部門の意見では、これらの中間財務諸表には、提示された期間の業績を公正に表示するために必要なすべての調整（通常の繰り返し調整のみで構成されています）および債務が含まれています。
私たちは、カレンダーの各年の12月の最後の土曜日に終了する52週または53週の決算年度を運営しています。文脈によって異なる場合を除き、ここに含まれる年および四半期への言及は、私たちの決算年度および決算四半期を指します。私たちの2024年度決算は、2024年12月28日に終了する52週の期間を予定しており、2023年度決算は2023年12月30日に終了した52週の期間でした。
2023年12月30日の簡約連結貸借対照表データは、監査済み財務諸表から派生していますが、全ての米国会計基準（U.S. GAAP）で必要な開示事項は含まれていません。これらの諸表は、2023年12月30日までの当社の監査済み連結財務諸表および関連ノートと共に、当社の年次報告書（Form 10-K）で読むべきです。中間期の結果は、将来の業績や年度の結果を必ずしも示すわけではありません。
連結財務諸表の原則
縮小された連結財務諸表にはクラフトハインツカンパニーと当社が支配する全子会社が含まれます。全てのグループ企業間取引は取り除かれます。
報告可能セグメント
2024年第1四半期に、当社の内部報告体制と報告セグメントが変更されました。これにより、当社は国際セグメントをヨーロッパおよび太平洋先進市場（EPDMまたは国際先進市場）、西部および東部新興市場（WEEM）、アジア新興市場（AEM）の3つのオペレーティングセグメントに分割し、これらの地域ごとに必要な異なる戦略に焦点を当てるための長期戦略計画の一環として可能にしました。その後、当社は事業成績を〜を通じて管理しています "4人" オペレーティングセグメントを持っています。 two 地域によって定義された報告セグメントを持っています: 北米および国際先進市場。WEEmおよびAEmで構成される当社の残りのオペレーティングセグメントは、新興市場として組み合わせて開示されます。
見積もりの使用
私たちは、アメリカの統合原則会計基準（U.S. GAAP）に従って、簡易連結財務諸表を作成しています。これには、資産、負債、引当金、費用の報告金額に影響を与える会計政策の選択、見積もり、仮定が必要です。これらの会計政策の選択、見積もり、仮定は、私たちの最良の見積りと判断に基づいています。私たちは、歴史的な経験や現在の経済状況を含む他の要因を考慮し、会計政策の選択、見積もり、仮定を継続的に評価しています。現在の事実に基づいて、これらの見積もりは合理的であると考えています。事実と状況が要求する場合には、会計政策の選択、見積もり、仮定を調整します。市場の変動、為替レートの変動などは、私たちの見積もりと仮定に固有の不確実性を増大させます。将来の出来事とその影響は正確には決定できないため、実際の結果は見積もりと大きく異なる場合があります。実際の金額が見積もりと異なる場合、その修正は、実際の金額が判明した期間における連結決算結果に含まれます。過去において、年間の見積もりと実際の金額の差異があった場合でも、簡易連結財務諸表に実質的な影響を及ぼすことはありませんでした。
再分類
私たちは以前に報告された特定の財務情報を再分類および調整し、現在の期間のプレゼンテーションに合わせました。
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現金,現金 及び現金同等物, 」「Crime Cam 24/7」 制限つき株式 現金
現金及び現金同等物には、銀行の定期預金、マネーマーケット・ファンド、および元本満期が3か月以下のすべての高流動性投資が含まれます。現金相当物の実勘定額は公正価値にほぼ等しいです。出金や使用に法的制限がある現金および現金同等物は、状況に応じて他の流動資産または他の非流動資産に分類され、圧縮連結貸借対照表に記載されます。2024年9月28日時点で、そのうち$2 百万の制限付き現金が他の流動資産に記録され、$2 百万の制限付き現金が他の非流動資産に記録されています。2023年12月30日時点で、2024年9月28日時点での他の流動資産に記録された制限付き現金は$3百万ドルと$1 百万を保有していました。現金、現金同等物、および制限現金の合計額は、2024年6月29日時点で$1,288百万1,404 百万でした。
ノート2.重要な会計方針
私たちの会計方針には、2023年12月30日までの年次報告書 (Form 10-k) で開示されたものと比べて、重大な変更はありませんでした。
注釈3 新しい会計基準
未採用の会計基準
セグメント報告（280番）-報告可能なセグメントの開示の改善：
2023年11月、財務会計基準審議会（「FASB」）は、会計基準改善のために会計基準アップデート（「ASU」）2023-07を発行し、会計基準編纂（「ASC」）280におけるセグメント開示要件を改善しました。 セグメント報告書 主要なセグメント費用についての開示を強化するため、本ガイダンスは、常に最高経営責任者およびその他のセグメント責任者に提供される主要なセグメント費用および各報告測定に含まれるその他のセグメント費用を提供することを企業に要求します。また、本ASUは、ASC 280に従って年次に開示される情報と中間セグメント報告の要件を整合させることにより、中間開示要件も強化します。本ASUは、2024年の年次報告書および2025年の四半期報告書から適用されます。早期適用も許可されています。新ガイダンスは、財務諸表中で提示されたすべての前期について、適用時期で特定されたカテゴリに基づいて、主要なセグメント費用およびその他のセグメントアイテムの金額が開示される必要があります。私たちは、連結財務諸表の注記に与える影響をまだ評価中です。
所得税（トピック 740）-所得税に関する開示の改善：
2023年12月、FASbはASC 740の所得税開示要件を改善するためにASU 2023-09を発行しました。 所得税このガイダンスは、報告企業の実効税率調整と所得税支払いに関する別個の情報を提供することを要求します。このASUは、2024年12月15日以降の年度開始時から効力を発揮し、当社の2025年年報に影響を与えます。ガイダンスは、適用対象となる場合には前向きに適用され、その選択肢により遡及的に適用することもできます。早期適用は許可されています。この基準は、会社の所得税に関する追加的な開示を必要としますが、このASUが財務諸表に重大な影響を与えることは予想されていません。
ノート4。 買収と売却
売却
ロシアの乳幼児取引：
2024年3月11日、私たちはロシアでの乳幼児栄養事業を第三者に販売し、総現金考慮で約$ミリオンの売却を完了しました（「ロシア乳幼児トランザクション」）。ロシア乳幼児トランザクションの結果、2024年第一四半期の私たちの連結貸借対照表において他の費用/(収入)で無視できるほどの税引前利益を認識しました。25ロシアインファント取引（「ロシアインファント取引」）。ロシアインファント取引の結果、2024年第1四半期の短縮連結損益計算書において、その他の費用/(収入)で無視できるほど小さな税引前利益を認識しました。
パプアニューギニアの取引:
2024年2月5日、パプアニューギニアの子会社であるHugo Canning Company Limitedの全株式を第三者に売却し、総額約＄ 【空白】 の現金対価で取引閉鎖日から2年間にわたり順次支払う予定です（「パプアニューギニアの取引」と呼びます）。 パプアニューギニアのトランザクションの結果、2024年第一四半期の売却ビジネスの税引き前損失約＄ 【空白】 百万ドルを他の経費/収入として当期純利益計算書に認識しましたが、そのうち約＄ 【空白】 百万ドルは為替損失の解放に関連しています。22パプアニューギニアの取引により、2024年第一四半期の売却ビジネス損失 約＄ 【空白】 百万ドルを含む他の経費/収入でその合計金額は約＄ 【空白】 百万ドルです。 この売却ビジネスの税引き前損失は、取引閉鎖日に総額約＄ 【空白】 の現金対価による取引によって生じました。802024年第1四半期の私たちの連結損益計算書におけるその他の費用/(収益)は、おおよそcurrencyドル41約＄ 【空白】 百万ドルは蓄積された外貨損失の解放に関連しています。
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取引の費用:
2024年9月28日と2023年9月30日に終了した3か月および9か月について、私たちは売却に関連する取引コストをほとんど負担しました。これらの取引コストは販売、一般管理および管理費用（「SG＆A」）に認識しました。
ノート5。 リストラ活動
当社の再編活動に関する詳細情報については、2023年12月30日までの年次報告書10-kの連結財務諸表および関連注記をご覧ください。
再編活動：
私たちは、主に組織設計の合理化に焦点を当てたリストラプログラムをグローバルに実施しています。2024年9月28日に終了した9か月間で、私たちはおよそ 100 これらのプログラムに関連する役職。2024年9月28日現在、約 40 2024年の残りの期間にポジションを追加しました。2024年9月28日に終了した3か月間、リストラ活動の結果、収益はドルになりました7 百万、これには$の純利益が含まれています6 その他のリストラ費用から百万ドル、純利益は1 退職金と従業員福利厚生費用から100万ドル。2024年9月28日に終了した9か月間、リストラ活動の結果、収益はドルになりました8 百万、これには$の純利益が含まれています7 退職金や従業員福利厚生の費用から100万ドル、純給付金は1 百万ドルはその他のリストラ費用に充てられます。リストラ活動の結果、多額の費用が発生しました45 3か月で百万と27 2023年9月30日に終了した9か月間は100万です。
私たちの再編成プロジェクトのコストの基礎を満たす営業中止および売却費用としての純負債残高（百万ドル）は次の通りです：
退職金と従業員福利厚生費用その他の出口費用合計
2023年12月30日の残高$23 $14 $37 
料金/（クレジット）(7)— (7)
現金支払い(13)(1)(14)
現金以外の利用1 — 1 
2024年9月28日の残高$4 $13 $17 
2024年9月28日時点の解雇手当および従業員給付コストの大部分は、2024年末までに支払われると予想されています。その他退職に関する負債は主にリース義務に関連しています。これらの義務の現金の影響は、2024年から2031年までのリース期間中継続されます。
総費用/収入：
事業再編に関連する合計費用/(収入) は、損益計算書の項目別に分けて、(百万ドル単位で)次の通りでした:
期間終了時点： 9月30日期間終了時点： 9月30日
2024年9月28日2023年9月30日2024年9月28日2023年9月30日
退職手当および従業員給付コスト - 製品販売費用$(1)$2 $(1)$7 
解雇手当および従業員給付費 - ＳＧ＆Ａ— — (5)(7)
解雇手当および従業員給付費 - その他の費用/(収益)— — (1)2 
資産関連費用 - 商品販売原価— 41 — 32 
資産関連費用 - ＳＧ＆Ａ— — — (1)
その他の費用 - 商品販売原価1 1 3 5 
その他の費用 - SG&A— 1 3 (11)
その他の費用 - その他の費用/(収入)(7)— (7)— 
$(7)$45 $(8)$27 
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再編成活動はセグメント調整後の営業利益（ノート16で定義されたもの）に含まれていません。 セグメントレポーティング). 各部門へのこのような費用／収益の割り当ての税引前影響額は（百万ドル単位で）次の通りでした：
終了した3か月間終了した9か月間
 2024年9月28日2023年9月30日2024年9月28日2023年9月30日
北アメリカ$— $9 $(1)$(1)
国際先進国市場(8)— (10)(1)
エマージング・マーケット(a)
— 36 — 42 
一般企業経費1 — 3 (13)
$(7)$45 $(8)$27 
（a）新興市場は、私たちのWEEmおよびAEmの事業セグメントの集約を表しています。
注記6。在庫
在庫は以下の通りでした（百万単位で）：
2024年9月28日2023年12月30日
パッケージと成分$970 $1,014 
予備部品247 233 
仕掛品348 338 
完成品2,307 2,029 
在庫 $3,872 $3,614 
注記7。のんびりとした運賃と無形資産
グッドウィル：
注釈1に記載されているように、 「Performance-Based Awards（成果に基づく受賞）」は、第7.7条に基づき、委員会によって設定されたパフォーマンス目標や他の事業目標の達成に依存して現金、株式またはその他の受賞を受け取るための受賞です。2024年第1四半期に、国際セグメントをEPDm、WEEm、およびAEmの3つの運営セグメントに分割しました。この再編成により、当社の運営セグメントが変更されましたが、以前のIntenationalセグメントの営業部門の構成には影響を与えず、したがって、減損トリガーイベントを示すものではありませんでした。このセグメントの変更の影響を、すべての過去の期間に反映しています。
2024年の第二四半期の最初の日である2024年3月31日をもって、北米セグメント内の当社の報告ユニット構成に影響を与える組織変更が行われました（「Q2北米再編成」）。 2 当社の北米報告ユニットであるTaste、Meals、およびAway From Home（以下「TMA」とする）、およびFresh、Beverages、Desserts（以下「FBD」とする）は、Taste Elevation、Ready Meals and Snacking（以下「TMS」とする）、Hydration＆Desserts（以下「HD」とする）、Meat＆Cheese（以下「MC」とする）、およびAway from Home＆Kraft Heinz Ingredients（以下「AFH」とする）に組織再編成されました。この再編成はカナダおよび北米コーヒー（CNAC）およびその他の北米報告ユニットには影響を与えませんでした。
グッドウィルの総額の変動は、セグメント別に以下の通りでした（単位：百万）：
北アメリカ
国際先進国市場
エマージング・マーケット
合計
2023年12月30日の残高$27,248 $2,687 $524 $30,459 
減損損失(898)(479)(184)(1,561)
翻訳の調整とその他(14)85 (23)48 
2024年9月28日の残高$26,336 $2,293 $317 $28,946 
2024年の累計償却損失のテスト
Q2北米再編の結果、資産と負債を該当する報告単位に再割り当てし、相対フェアバリューアプローチを用いて営業の簡易判断価値法を割り当てました。当該報告単位について、再編前および再編後にインタームの減価償却テスト（または「2024年移行テスト」）を行いました。
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当社のQ2北米事前再編成のTMAおよびFBD報告部門の減損テストの一環として、2024年3月31日時点のこれらの妥当な価値を推定するために、所得法に基づく割引キャッシュフロー法を利用しました two これらの報告単位の公正価値が帳簿価額を上回り、減損は記録されませんでした。
2024年3月31日時点で、私たちはQ2北米再編成後の減損テストを行い、新たな北米報告単位（TMS、HD、MC、AFH）をテストしました。私たちは報告単位の公正価値を推定するために所得アプローチの割引キャッシュフロー法を利用しました。Q2北米再編成後の減損テストの結果、私たちはSG＆Aの北米セグメントにおいて非現金の減損損失を約＄1000万認識しました。8542024年第2四半期に、北米セグメントのSG＆Aに約＄1000万の減損損失が発生しました。854MC報告単位に関連する＄1000万の減損損失は、減損後の純資産額が約＄10億であったグッドウィルの担保金額に起因しています。2.5MC報告単位の減損は、以前はHDおよびMC報告単位およびTMSのスナッキング部門のすべての純資産を保有していた旧FBD報告単位の分割によるものです。15.9減損の必要ない他の3つの報告単位は、約＄10億のグッドウィル担保額があったTMS、約＄10億のグッドウィル担保額があったHD、および約＄10億のグッドウィル担保額があったAFHです。4.3約  十億ドル；およびグッドウィルの帳簿価額が約 $ であった AFH2.810Kフォームを元にしたCallon Petroleum Companyの会計年度が2023年12月31日に終了した年度について、発行済みの普通株式は66508277株でした。
2024年の年次減損テストは、2024年の第3四半期の初日である2024年6月30日に実施しました。報告単位の公正価値を見積もるために、インカムアプローチの割引キャッシュフロー法を利用しました。2024年の年次減損テストの結果、販売管理費における現金以外ののれん減損損失が約$であることがわかりました479100万ドルは、国際先進国市場セグメント内のヨーロッパ大陸報告部門に関するものです。$184100万ユーロは新興市場における当社のラテンアメリカの報告部門に関するもので、そして$は44100万は、北米セグメント内のAFH報告ユニットに関連しています。ヨーロッパ大陸の報告部門の減損は、主に、非中核カテゴリーにおける将来の収益性の仮定が以前の見積もりから引き下げられたことと ジャストスパイス ビジネス、および製品構成の変更による会社間のロイヤルティ費用の増加。当社のLatAm報告部門の減損は、主に、将来の収益性の仮定が以前の見積もりから引き下げられたことと、米ドルに対するブラジルレアルの外貨為替レートの下落を含むマイナスのマクロ経済的要因によるものです。これらの減損を差し引いた後ののれん帳簿価は約 $2.8当社のAFH報告単位は10億ドル、約$501ヨーロッパ大陸の報告単位では100万ですが、中南米の報告単位にはのれん帳簿価額は残っていません。
これらのテストを行う際、この四半期報告書（Form 10-Q）の提出日までに知られていた情報を取り入れました。
2024年度の減損テスト時点で、当社の報告ユニットのうち、 20%未満の公正価値持株高に対して$24.2 十億ドルの総商標帯持高を持つものには、TMS、MC、AFH、CNAC、北ヨーロッパ、およびヨーロッパ大陸が含まれていました。当社のHDとアジアの報告ユニットは、 20-50%の持株高持株高を持ち、2024年度の減損テスト時点で$4.6 十億ドルの総商標帯持高を持っていました。
2024年9月28日現在、当社は維持しています 12 報告ユニット、 8 そのうちのいくつかは、当社の善意残高を構成しています。 8 これらの報告ユニットの善意の帳簿価額は、2024年6月29日時点で合計で $28.9 2024年9月28日には、10億ドルがあります。
2024年6月29日時点で、商標に対する積み立て済みの減損損失は$xx億であり、13.4 2024年9月28日時点での総額は、10億ドルです。11.8
2023年の期間中の資産価値の減損テスト
私たちは、2023年の第3四半期の初日である2023年7月2日に2023年の年次減損テストを実施しました。このテストを実施するにあたり、2023年9月30日に終了した期間の四半期報告書をForm 10-Qに提出した日からわかっていた情報を組み入れました。報告単位の公正価値を見積もるために、インカムアプローチの割引キャッシュフロー法を利用しました。2023年の年次減損テストの結果、現金以外ののれん減損損失は約$でした510販売管理費は百万円で、これには1ドルが含まれます452北米セグメント内のカナダおよび北米コーヒー（「CNAC」）報告部門における100万件の減損損失と58以前の国際セグメント内の大陸ヨーロッパ報告部門における100万件の減損損損失。これらの減損は主に、金利の上昇、時価総額の減少、その他の市場投入の影響を受けた割引率の上昇によって引き起こされました。
11

追加の善意に関する考慮事項
公正な価値評価には相当な判断力が必要であり、基になる仮定、見積もり、市場要因の変化に敏感です。個別の報告単位の公正な価値を見積もるには、将来の計画や業種、経済、規制条件に関する仮定と見積もりが必要です。これらの仮定と見積もりには、将来の年次純現金流入（純売上高、製品販売原価、SG＆A、減価償却費、運転資本、設備投資を含む）、所得税率、割引率、成長率、その他の市場要因が含まれます。現在の成長率と利益率の期待が達成されない場合、割引率、時価総額、所得税率、外国為替レート、インフレなどの管理外の市場要因が変化する場合、または経営陣の期待または計画が変更された場合（長期的な運営計画の更新を含む）、当社のいくつかの報告単位が将来的に減悪される可能性があります。加えて、特定の非戦略的資産を売却するという決定は、グッドウィルの減損を引き起こし、将来的にも減損を引き起こす可能性があります。
2024年および2023年に損失処理された当社のレポーティングユニットはそれぞれ公正価値に各々減損され、該当の減損テスト日において残余公正価値と帳簿価額との差はゼロとなりました。したがって、これらのレポーティングユニットとその他のレポーティングユニットも、2024年の年次減損テスト時点において帳簿価額を上回る公正価値の余剰額が％を上回っていない場合、将来の減損リスクが高まります。 20今後の前提条件、見積もり、市場要因が変化した場合、2024年の年次減損テスト時点において帳簿価額を上回る公正価値の余剰額が％未満であるレポーティングユニットには、将来の減損リスクが高まります。残りのレポーティングユニットは、2024年の年次減損テスト時点において帳簿価額を上回る公正価値の余剰額が％を超えていましたが、この金額も将来の前提条件、見積もり、市場要因が大幅に変化した場合には減損の影響を受けやすいです。 202024年の年次減損テスト時点において帳簿価額を上回る公正価値の余剰額が％を超えているにも関わらず、この金額も将来の前提条件、見積もり、市場要因が大幅に変化した場合には減損の影響を受けやすいです。
無期限寿命無形資産：
無定形無形資産の帳簿価額の変動は、主に商標からなりました（百万ドル単位）：
2023年12月30日の残高$38,502 
減損損失(593)
翻訳調整およびその他の調整137 
2024年9月28日の残高$38,046 
2024年の中間における有限でない無形資産の価値減少テスト
我々の無期限の無形資産残高は、いくつかの個別のブランドで構成されており、その総持ち株価額は$でした。38.0 2024年9月28日には、10億ドルがあります。
2024年6月30日の2024年の年次減損テストの結果、現金以外の無形資産の減損損失が$であることがわかりました5932024年第3四半期の販管費は、当社に関連する百万円です ランチアブル、クラウセン、 そして ワッティーズ ブランド。私たちは、収益アプローチに基づくロイヤリティからの救済法を利用して、公正価値と記録された現金以外の減損損失を$と見積もりました560北米セグメントでは100万ドル、そして$33国際先進国市場セグメントで100万件。商標の所有権と合致しています。の障がい ランチアブル そして ワッティーズ ブランドの主な要因は、将来の収益成長率と利益率の仮定が以前の見積もりから減少したことによるものです。の障がい クラウセン ブランドは主に、将来の利益率の仮定を以前の見積もりから引き下げたことが原因です。これらの減損を差し引いた後、これらのブランドの帳簿価総額は $1.210億。
2024年の年次減損試験の時点で、あるブランド 20帳簿価額を上回る公正価値の割合は、減損後の帳簿価額の合計が$でした18.1 10億の、ブランドと 20-50帳簿価額を上回る公正価値の％は、帳簿価額の合計が$でした2.8 10億、そしてそれを超えたブランド 50帳簿価額を上回る公正価値の％は、帳簿価額の合計が$でした16.9 10億。
2023年の年初から日本法では無定期無形資産の価値の減損テスト
2023年7月2日時点の2023年度の評価損耗テストの結果、SG&Aに関連する無形資産の減損損失（非キャッシュ）を認識しました。152Maxwell House、Cool Whip、およびその他2ブランドに関連する2023年第3四半期の非キャッシュ減損損失は、$百万をSG&Aで認識しました。 Maxwell House、Cool Whipなどの名称を持つ4つのブランドの減損は、主に割引率の上昇、金利の上昇、時価総額の減少、その他市場投入要素、将来の売上高成長の低下の持続的な期待、および減少した利益率の期待によるものでした。 収益アプローチの下でロイヤルティ率からの救済を利用して公正価値を見積もり、商標の所有権に一致する形で、North Americaセグメントでは$百万、旧国際セグメントでは$百万の非キャッシュ減損損失を計上しました。1392023年第3四半期のSG&Aには、$百万の無形資産の減損損失（非現金）を認識しました。13これら4つのブランドの減損は、主に割引率の上昇、金利の上昇、時価総額の減少、その他市場投入要素、将来の売上高成長の低下の持続的な期待、および利益率の低下の期待によるものでした。
12

2023年の年次減損テストの一環として、当社の以前のインターナショナルセグメントにおける商標に関連する無形資産2つを無定形無限ライフ無形資産から有限定生無形資産に再分類しました。これらのブランドの公正価値評価を2023年の年次減損テストの一環として行った後、2023年の年次減損テストの一部として、7月2日現在で無期限無定形資産から有限定生商標に$　百万を移転し、2023年9月30日現在で3か月分の償却費用を認識しました。732023年の年次減損テストの一環として、7月2日現在で無期限無定形無形資産から有限定生商標に$　百万を移転し、2023年9月30日現在で3か月分の償却費用を認識しました。
追加の無形資産の有限されない評価に関する考慮事項
公正な価値の決定にはかなりの判断が必要であり、基になる仮定、見積もり、市場要因の変化に敏感です。個々のブランドの公正な価値を推定するには、将来の計画、業種、経済、規制条件に関する仮定と見積もりが必要です。これらの仮定と見積もりには、将来の年次純キャッシュフローの見積もり、税務上の考慮事項、割引率、成長率、ロイヤルティ率、貢献資産の負担額、その他の市場要因が含まれます。将来の成長率や利益率の期待が達成されない場合や、割引率、時価総額、法人税率、外国通貨の為替レート、インフレなどの当社のコントロール外の市場要因の変化、または管理陣の期待や計画が変更された場合、長期運営計画の更新を含む場合には、当社の1つ以上のブランドが将来において減損する可能性があります。その他、非戦略的資産の売却を決定したことや引き続き非戦略的資産の減損につながる可能性があります。
2024年および2023年に減損された当社のブランドは、それぞれの公正価値まで減額され、適用される減損テスト日現在の帳簿価額に対して余剰の公正価値はゼロとなりました。したがって、これらおよびその他の個別ブランドは、 20%またはそれ以下の余剰公正価値が2024年の年間減損テスト時点で帳簿価額に対して存在しているため、将来的に仮定、見積もり、または市場要因が変化した場合、将来の減損のリスクが高まります。残りのブランドは、 20%の余剰公正価値が2024年の年間減損テスト時点で帳簿価額に対して存在していましたが、これらの金額も将来的に仮定、見積もり、または市場要因が大きく変化した場合、減損の影響を受けやすくなります。
有形固定資産:
無形資産のうち、有形寿命のある資産の金額は（百万円）：
 2024年9月28日2023年12月30日
グロス累積
償却		ネットグロス累積
償却		ネット
商標$2,442 $(886)$1,556 $2,313 $(755)$1,558 
顧客関連資産3,715 (1,524)2,191 3,710 (1,331)2,379 
その他の12 (3)9 12 (3)9 
$6,169 $(2,413)$3,756 $6,035 $(2,089)$3,946 
2024年第2四半期、私たちは一部の商標を使用するための独占的で撤回不能で無償で永続的な権利を付与する修正されたライセンス契約に調印しました。 TGI Friday 製造、流通、販売、および売上用の一部のTGI Fridayライセンス製品を製造、流通、販売するための商標 TGI Friday TGI Fridayライセンス関連の現金総額はおよそ$140百万。このTGIフライデーライセンスを27年の耐用年数で償却される有形無形資産として認識しました。 27年 の寿命。
2024年第3四半期、非現金の明確な有形無形資産減損損失額を認識しました$128百万SG&Aに関連する Just Spices 商標および顧客関連の資産。商標についてはロイヤリティからの救済法を使用し、顧客関連の資産については配布者方法を使用して公正な価値を推定し、所有権に応じてContinent Europe報告部門内のInternational Developed Marketsセグメントに非現金の減損損失を計上しました。商標と顧客関連の資産の減損は、将来の売上高成長および利益率の想定が以前の予想から低下したことが主な原因でした。 Just Spices 商標および顧客関連の資産の減損は、主に将来の売上高成長および利益率の想定が前回の期待から低下したことに起因しています。
有形無形資産の償却費は2024年6月29日までの3ヶ月で〇〇ドル、2024年6月29日までの6ヶ月で〇〇ドルであり、2023年7月1日までの6ヶ月で〇〇ドルです。償却費以外に、2023年12月30日から2024年6月29日までの間の有形無形資産の変化は、主にTGI Fridayライセンスおよび外国通貨の影響に関連しています。62 3か月間の収益は100万ドル、そして100万ドルです。191 9か月間で2024年9月28日に終了し、資産は1,000万ドルで、そのうち$61 3か月で1,000万ドル、$187 9か月間で2023年9月30日に終了し、無形資産の明確な存続期間が変化した点について、その主な原因はTGI Friday Licenseの取得に関するものであり、$128100万ドルの非現金減損損失は、 Just Spices 商標および顧客関連資産に関連する先進国市場の非現金減損損失、および外国通貨の影響の影響があります。
我々は、有形固定資産に関連する償却費が2024年におよそ$、2025年から2028年におよそ$ミリオン、そして2029年におよそ$ミリオンになると予測しています。250 2024年には$ミリオン、その後の4年間には$ミリオン、そして2029年には$ミリオンになると予測されています。250 次の3年間それぞれ$1000万、および$240 2028年と2029年に$1000万
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デリバティブの使用目的と戦略所得税
法人税引当金には、連邦、州、および米国外の法人税に関する引当金が含まれています。我々は国際環境で活動しているため、連結有効税率は、さまざまな場所での収益と適用税率を反映した複合税率です。さらに、のれん資産減損とその他の項目が有する税率への影響を百分率ポイントで計算することは、税引前の収益（損失）によって影響を受けます。また、税法の変更や税率の変更による税引当金残高の再評価により、我々の有効税率に変動が生じます。私たちの四半期法人税引当金は、推定された年間の有効税率に基づいて決定され、発生した期間の法人税引当金において惟一または異例の項目に起因する税金を調整します。2024年9月28日時点での推定年間有効税率は20.5%、2023年9月30日時点でも20.5%です。
2024年9月28日までの3か月間の当社の実効税率は、費用が 2.5%の税前損失についてであり、営業開発資産の減損損失の不利な実効税率影響を含んでいます 23.1%でした。これらの非現金減損損失の影響に加えて、当社の実効税率は、一部の外国管轄区での評価引当金の設定によって不利な影響を受けましたが、これは、2023年の米国の所得と控除の見積もりおよび米国外のさまざまな管轄区での税引前利益の地理的ミックスの有利な変化によって部分的に相殺されました。
2023年9月30日までの3か月間の実効税率は、前年同期比で費用がかかりました。 44.7%の税金が前年同期比で、善後と無形資産の減損損失の不利な実効税率の影響を含んで含まれました。 24.3これらの非現金減損損失の影響に加えて、2022年の米国の所得と控除の見積もりの変更、および各種の米国以外の管轄区域における税引前収益の地理的構成の変動により、実効税率は好影響を受けましたが、不確かな税務ポジションの準備金における増加を含む一定の純額の特定の項目により部分的に相殺されました。
3か月間の実効税率の前年同期比の変化は、主にのれんおよび無形資産の減損損失の悪影響と、特定の外国管轄区域における評価引当金の設定によるものであり、前年同期の2022年の米国の所得および控除の見積もりのより好ましい変化によって部分的に相殺されました。
2024年9月28日までの9か月間の実効税率は、税引き前所得に対する費用でした。 43.9％であり、これには、商標権および無形資産減損損失の不利な実効税率影響を含んでいます。 22.9％です。これらの非現金減損損失の影響に加え、特定の純離散項目により、実効税率は不利に影響を受けました。これには、特定の外国管轄区において評価引当金を設定すること、及び様々な米国以外の管轄区での税引き前所得の有利な地理的構成による一部の相殺が含まれます。
2023年9月30日終了の9か月間の有効税率は、売上高の支出でした。 22.1%の税金が前年同期比で、善後と無形資産の減損損失の不利な実効税率の影響を含んで含まれました。 3.9これらの非キャッシュの減損損失の影響に加えて、当社の有効税率は、さまざまな米国外の管轄区域における税引き前収益の地理的ミックスおよび特定の正味個別項目によって好影響を受けました。これには、2017年の所得税審査の結論に基づく米国主に不確実な税務立場準備金の正味減少および当該年の時効の経過によるIRS（米国内国歳入庁）による所得税審査の結論から主に生じた」）、およびその他にも不利な正味個別項目の影響がありました。2.1%）、および一部の2022年の米国の所得と控除の見積もりの好転による影響を受けました。これらの影響は、特定の不利な正味個別項目の影響が部分的に相殺されました。
3か月間の実効税率の対前年比の増加は、主にグッドウィルおよび無形資産の減損損失の不利な影響、特定の外国管轄区における評価免除の設立、前年期間における不確かな税務立場の備蓄の純減少の影響が主な要因でした。
Other Income Tax Matters:
We are currently under examination for income taxes by the IRS for the years 2018 through 2022. In the third quarter of 2023, we received two Notices of Proposed Adjustment (the “NOPAs”) relating to transfer pricing with our foreign subsidiaries. The NOPAs propose an increase to our U.S. taxable income that could result in additional U.S. federal income tax expense and liability of approximately $200 million for 2018 and approximately $210 million for 2019, excluding interest, and assert penalties of approximately $85 million for each of 2018 and 2019. We strongly disagree with the IRS’s positions, believe that our tax positions are well documented and properly supported, and intend to vigorously contest the positions taken by the IRS and pursue all available administrative and judicial remedies. Therefore, we have not recorded any reserves related to this issue. We continue to maintain the same operating model and transfer pricing methodology with our foreign subsidiaries that was in place for the years 2018 and 2019, and the IRS began its audit of 2020, 2021, and 2022 during the first quarter of 2024. We believe our income tax reserves are appropriate for all open tax years and that final adjudication of this matter will not have a material impact on our results of operations and cash flows. However, the ultimate outcome of this matter is uncertain, and if we are required to pay the IRS additional U.S. taxes, interest, and/or potential penalties, our results of operations and cash flows could be materially affected.
14

The Organization for Economic Co-operation and Development (OECD), a global coalition of member countries, proposed a two-pillar plan to reform international taxation. The proposals aim to ensure a fairer distribution of profits among countries and impose a floor on tax competition through the introduction of a global minimum tax. Many countries have enacted or begun the process of enacting laws based on the two-pillar plan proposals. As part of our planning for the changes resulting from this tax reform, we are currently evaluating certain updates to our organizational structure. The OECD and implementing countries are expected to continue to make further revisions to their legislation and release additional guidance. We will continue to monitor developments to determine any potential impact in the countries in which we operate.
Note 9. Employees’ Stock Incentive Plans
Stock Options:
Our stock option activity and related information was:
Number of Stock OptionsWeighted Average Exercise Price
(per share)
Outstanding at December 30, 20238,022,540 $46.87 
Granted654,724 35.13 
Forfeited(1,467,229)46.75 
Exercised(308,010)25.95 
Outstanding at September 28, 20246,902,025 46.71 
The aggregate intrinsic value of stock options exercised during the period was insignificant for the nine months ended September 28, 2024.
Restricted Stock Units:
Our restricted stock unit (“RSU”) activity and related information was:
Number of UnitsWeighted Average Grant Date Fair Value
(per share)
Outstanding at December 30, 20237,722,870 $36.80 
Granted3,085,347 35.33 
Forfeited(731,541)37.23 
Vested(3,242,886)34.12 
Outstanding at September 28, 20246,833,790 37.36 
The aggregate fair value of RSUs that vested during the period was $115 million for the nine months ended September 28, 2024.
Performance Share Units:
Our performance share unit (“PSU”) activity and related information was:
Number of UnitsWeighted Average Grant Date Fair Value
(per share)
Outstanding at December 30, 20234,855,432 $33.65 
Granted2,591,382 29.14 
Forfeited(833,074)32.36 
Vested(1,143,479)33.36 
Outstanding at September 28, 20245,470,261 31.76 
The aggregate fair value of PSUs that vested during the period was $40 million for the nine months ended September 28, 2024.
Note 10. Postemployment Benefits
See our consolidated financial statements and related notes in our Annual Report on Form 10-K for the year ended December 30, 2023 for additional information on our postemployment-related accounting policies.
15

Pension Plans
Components of Net Pension Cost/(Benefit):
Net pension cost/(benefit) consisted of the following (in millions):
For the Three Months Ended
U.S. PlanNon-U.S. Plans
September 28, 2024September 30, 2023September 28, 2024September 30, 2023
Service cost$— $— $2 $2 
Interest cost33 35 14 17 
Expected return on plan assets(49)(48)(21)(23)
Amortization of prior service costs/(credits)1 — — 1 
Amortization of unrecognized losses/(gains)— — 3 4 
Other— — (7)— 
Net pension cost/(benefit)$(15)$(13)$(9)$1 
For the Nine Months Ended
U.S. PlanNon-U.S. Plans
September 28, 2024September 30, 2023September 28, 2024September 30, 2023
Service cost$1 $1 $5 $5 
Interest cost100 106 42 50 
Expected return on plan assets(147)(146)(63)(66)
Amortization of prior service costs/(credits)1 — 1 1 
Amortization of unrecognized losses/(gains)— — 9 10 
Special/contractual termination benefits— — (1)2 
Other— — (7)— 
Net pension cost/(benefit)$(45)$(39)$(14)$2 
We present all non-service cost components of net pension cost/(benefit) within other expense/(income) on our condensed consolidated statements of income.
Employer Contributions:
Related to our non-U.S. pension plans, we contributed $5 million during the nine months ended September 28, 2024 and plan to make further contributions of approximately $2 million during the remainder of 2024. We did not contribute to our U.S. pension plan during the nine months ended September 28, 2024 and do not plan to make contributions during the remainder of 2024. Estimated future contributions take into consideration current economic conditions, which at this time are expected to have minimal impact on expected contributions for the remainder of 2024. Our actual contributions and plans may change due to many factors, including changes in tax, employee benefit, or other laws and regulations, tax deductibility, significant differences between expected and actual pension asset performance or interest rates, or other factors.
In 2023, we settled one of our U.K. defined benefit pension plans, which resulted in a surplus asset. During the third quarter of 2024, the surplus asset was distributed to Kraft Heinz as a negative contribution in the amount of $29 million net of tax, which is shown as a cash inflow on the Consolidated Statements of Cash Flows.
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Postretirement Plans
Components of Net Postretirement Cost/(Benefit):
Net postretirement cost/(benefit) consisted of the following (in millions):
For the Three Months EndedFor the Nine Months Ended
September 28, 2024September 30, 2023September 28, 2024September 30, 2023
Service cost$1 $1 $2 $2 
Interest cost8 10 24 28 
Expected return on plan assets(14)(14)(42)(41)
Amortization of prior service costs/(credits)(3)(4)(8)(11)
Amortization of unrecognized losses/(gains)(5)(3)(16)(11)
Net postretirement cost/(benefit)$(13)$(10)$(40)$(33)
We present all non-service cost components of net postretirement cost/(benefit) within other expense/(income) on our condensed consolidated statements of income.
Employer Contributions:
During the nine months ended September 28, 2024, we contributed $8 million to our postretirement benefit plans. We plan to make further contributions of approximately $4 million to our postretirement benefit plans during the remainder of 2024. Estimated future contributions take into consideration current economic conditions, which at this time are expected to have minimal impact on expected contributions for the remainder of 2024. Our actual contributions and plans may change due to many factors, including changes in tax, employee benefit, or other laws and regulations, tax deductibility, significant differences between expected and actual postretirement plan asset performance or interest rates, or other factors.
Note 11. Financial Instruments
See our consolidated financial statements and related notes in our Annual Report on Form 10-K for the year ended December 30, 2023 for additional information on our overall risk management strategies, our use of derivatives, and our related accounting policies.
Derivative Volume:
The notional values of our outstanding derivative instruments were (in millions):
Notional Amount
September 28, 2024December 30, 2023
Commodity contracts$1,032 $954 
Foreign exchange contracts4,399 4,618 
Cross-currency contracts7,397 6,133 
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Fair Value of Derivative Instruments:
The fair values and the levels within the fair value hierarchy of derivative instruments recorded on the condensed consolidated balance sheets were (in millions):
September 28, 2024
Quoted Prices in Active Markets for Identical Assets and Liabilities
(Level 1)		Significant Other Observable Inputs
(Level 2)		Total Fair Value
AssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities
Derivatives designated as hedging instruments:
Foreign exchange contracts(a)
$— $— $9 $38 $9 $38 
Cross-currency contracts(b)
— — 142 254 142 254 
Derivatives not designated as hedging instruments:
Commodity contracts(c)
36 48 6 7 42 55 
Foreign exchange contracts(a)
— — 19 26 19 26 
Cross-currency contracts(b)
— — 9 — 9 — 
Total fair value$36 $48 $185 $325 $221 $373 
(a)    At September 28, 2024, the fair value of our derivative assets was recorded in other current assets ($27 million) and other non-current assets ($1 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($48 million) and other non-current liabilities ($16 million).
(b)    At September 28, 2024, the fair value of our derivative assets was recorded in other current assets ($58 million) and other non-current assets ($93 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($45 million) and other non-current liabilities ($209 million).
(c)     At September 28, 2024, the fair value of our derivative assets was recorded in other current assets ($40 million) and other non-current assets ($2 million), and the fair value of derivative liabilities was recorded in other current liabilities ($49 million) and non-current liabilities ($6 million).
December 30, 2023
Quoted Prices in Active Markets for Identical Assets and Liabilities
(Level 1)		Significant Other Observable Inputs
(Level 2)		Total Fair Value
AssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities
Derivatives designated as hedging instruments:
Foreign exchange contracts(a)
$— $— $12 $42 $12 $42 
Cross-currency contracts(b)
— — 140 165 140 165 
Derivatives not designated as hedging instruments:
Commodity contracts(c)
20 59 3 7 23 66 
Foreign exchange contracts(a)
— — 17 23 17 23 
Total fair value$20 $59 $172 $237 $192 $296 
(a)    At December 30, 2023, the fair value of our derivative assets was recorded in other current assets ($21 million) and other non-current assets ($8 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($51 million) and other non-current liabilities ($14 million).
(b)    At December 30, 2023, the fair value of our derivative assets was recorded in other current assets ($37 million) and other non-current assets ($103 million), and the fair value of our derivative liabilities was recorded in other current liabilities ($31 million) and other non-current liabilities ($134 million).
(c)    At December 30, 2023, the fair value of our derivative assets was recorded in other current assets and the fair value of derivative liabilities was recorded in other current liabilities ($64 million) and other non-current liabilities ($2 million).
Our derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. We elect to record the gross assets and liabilities of our derivative financial instruments on the condensed consolidated balance sheets. If the derivative financial instruments had been netted on the condensed consolidated balance sheets, the asset and liability positions each would have been reduced by $152 million at September 28, 2024 and $130 million at December 30, 2023. We had posted collateral related to commodity derivative margin requirements of $12 million at September 28, 2024 and $41 million at December 30, 2023, which were included in prepaid expenses on our condensed consolidated balance sheets.
Level 1 financial assets and liabilities consist of commodity future and options contracts and are valued using quoted prices in active markets for identical assets and liabilities.
18

Level 2 financial assets and liabilities consist of commodity swaps, foreign exchange forwards, options, and swaps, and cross-currency contracts. Commodity swaps are valued using an income approach based on the observable market commodity index prices less the contract rate multiplied by the notional amount. Foreign exchange forwards and swaps are valued using an income approach based on observable market forward rates less the contract rate multiplied by the notional amount. Foreign exchange options are valued using an income approach based on a Black-Scholes-Merton formula. This formula uses present value techniques and reflects the time value and intrinsic value based on observable market rates. Cross-currency contracts are valued based on observable market spot and swap rates.
We did not have any Level 3 financial assets or liabilities in any period presented.
Our calculation of the fair value of financial instruments takes into consideration the risk of nonperformance, including counterparty credit risk.
Net Investment Hedging:
At September 28, 2024, we had the following items designated as net investment hedges:
•Non-derivative foreign-currency denominated debt with principal amounts of €300 million and £400 million; and
•Cross-currency contracts with notional amounts of C$1.8 billion ($1.3 billion), €2.1 billion ($2.3 billion), JPY9.6 billion ($68 million), and CNY2.5 billion ($344 million).
We periodically use non-derivative instruments such as non-U.S. dollar financing transactions or non-U.S. dollar assets or liabilities, including intercompany loans, to hedge the exposure of changes in underlying foreign-currency denominated subsidiary net assets, and they are designated as net investment hedges. At September 28, 2024, we had a euro intercompany loan with a notional amount of $363 million designated as a net investment hedge.
The component of the gains and losses on our net investment in these designated foreign operations, driven by changes in foreign exchange rates, are economically offset by fair value movements on the effective portion of our cross-currency contracts and foreign exchange contracts and remeasurements of our foreign-currency denominated debt.
Cash Flow Hedge Coverage:
At September 28, 2024, we had entered into foreign exchange contracts designated as cash flow hedges for periods not exceeding the next 22 months and into cross-currency contracts designated as cash flow hedges for periods not exceeding the next 54 months.
Fair Value Hedge Coverage:
In 2024, we designated cross-currency contracts as fair value hedges of the foreign currency exposure of foreign currency denominated intercompany loans. At September 28, 2024, the notional amounts of the cross-currency contracts were £683 million ($864 million) and MXN4.8 billion ($251 million) and the carrying value of the hedged items was $1.2 billion. The gains/(losses) on the hedged item, driven by changes in foreign exchange rates, are economically offset by fair value movements on the effective portion of our cross-currency contract, which is reported in the same income statement line item in the same period. The amounts excluded from the assessment of effectiveness are recognized in earnings over the life of the hedge on a systematic and rational basis in the same line item as the hedged item.
Deferred Hedging Gains and Losses on Fair Value and Cash Flow Hedges:
Based on our valuation at September 28, 2024 and assuming market rates remain constant through contract maturities, we expect transfers to net income/(loss) of the existing losses reported in accumulated other comprehensive income/(losses) on interest rate cash flow hedges, cross-currency cash flow hedges, and cross-currency fair value hedges during the next 12 months to be insignificant. Additionally, we expect transfers to net income/(loss) of the existing gains reported in accumulated other comprehensive income/(losses) on foreign-currency cash flow hedges during the next 12 months to be insignificant.
19

Derivative Impact on the Statements of Comprehensive Income:
The following table presents the pre-tax amounts of derivative gains/(losses) deferred into accumulated other comprehensive income/(losses) and the income statement line item that will be affected when reclassified to net income/(loss) (in millions):
Accumulated Other Comprehensive Income/(Losses) ComponentGains/(Losses) Recognized in Other Comprehensive Income/(Losses) Related to Derivatives Designated as Hedging InstrumentsLocation of Gains/(Losses) When Reclassified to Net Income/(Loss)
For the Three Months EndedFor the Nine Months Ended
September 28, 2024September 30, 2023September 28, 2024September 30, 2023
Cash flow hedges:
Foreign exchange contracts$(14)$29 $17 $11 Cost of products sold
Foreign exchange contracts (excluded component)1 (3)(5)(6)Cost of products sold
Foreign exchange contracts (2)— (2)— SG&A
Foreign exchange contracts(38)— (11)— Other expense/(income)
Foreign exchange contracts (excluded component)5 — 5 — Other expense/(income)
Cross-currency contracts61 (14)2 20 Other expense/(income)
Cross-currency contracts (excluded component)— 7 — 20 Other expense/(income)
Cross-currency contracts(6)(7)(21)(20)Interest expense
Interest rate contracts— — — (3)Interest expense
Net investment hedges:
Foreign exchange contracts(3)1 (3)4 Other expense/(income)
Foreign exchange contracts (excluded component)1 — 1 1 Interest expense
Cross-currency contracts(101)77 5 7 Other expense/(income)
Cross-currency contracts (excluded component)10 10 34 27 Interest expense
Fair value hedges:
Cross-currency contracts (excluded component)(24)— (21)— Other expense/(income)
Total gains/(losses) recognized in statements of comprehensive income$(110)$100 $1 $61 
20

Derivative Impact on the Statements of Income:
The following tables present the pre-tax amounts of derivative gains/(losses) recorded to net income/(loss) and the affected income statement line items (in millions):
For the Three Months Ended
September 28, 2024September 30, 2023
Cost of products soldInterest expenseOther expense/(income)Cost of products soldInterest expenseOther expense/(income)
Total amounts presented in the condensed consolidated statements of income in which the following effects were recorded$4,197 $230 $(48)$4,335 $228 $(35)
Gains/(losses) related to derivatives designated as hedging instruments:
Cash flow hedges:(a)
Foreign exchange contracts$4 $— $(39)$8 $— $— 
Foreign exchange contracts (excluded component)(1)— 3 (3)— — 
Cross-currency contracts— (6)81 — (8)(31)
Cross-currency contracts (excluded component)— — — — — 7 
Net investment hedges:(a)
Foreign exchange contracts (excluded component)— 1 — — 1 — 
Cross-currency contracts (excluded component)— 10 — — 9 — 
Fair Value hedges:
Cross-currency contracts — — (56)— — — 
Hedged items(b)
— — 56 — — — 
Gains/(losses) related to derivatives not designated as hedging instruments:
Commodity contracts(6)— — 24 — — 
Foreign exchange contracts— — — — — (5)
Cross-currency contracts— — 13 — — (1)
Total gains/(losses) recognized in statements of income$(3)$5 $58 $29 $2 $(30)
(a)    Represents the pre-tax amounts of derivative gains/(losses) reclassified from accumulated other comprehensive income/(losses) to net income/(loss).
(b)    Represents the pre-tax amounts of the hedged items gains/(losses) in fair value hedges.
21

For the Nine Months Ended
September 28, 2024September 30, 2023
Cost of products soldInterest expenseOther expense/(income)Cost of products soldInterest expenseOther expense/(income)
Total amounts presented in the condensed consolidated statements of income in which the following effects were recorded$12,547 $685 $(56)$13,171 $683 $(94)
Gains/(losses) related to derivatives designated as hedging instruments:
Cash flow hedges:(a)
Foreign exchange contracts$9 $— $(12)$27 $— $— 
Foreign exchange contracts (excluded component)(5)— 6 (8)— — 
Cross-currency contracts— (21)23 — (21)(2)
Cross-currency contracts (excluded component)— — — — — 20 
Net investment hedges:(a)
Foreign exchange contracts (excluded component)— 1 — — 1 — 
Cross-currency contracts (excluded component)— 34 — — 26 — 
Fair Value hedges:
Cross-currency contracts — — (63)— — — 
Hedged items(b)
— — 63 — — — 
Gains/(losses) related to derivatives not designated as hedging instruments:
Commodity contracts(4)— — (50)— — 
Foreign exchange contracts— — 9 — — (12)
Interest rates contracts(c)
— — (3)— — — 
Cross-currency contracts— — (6)— — 2 
Total gains/(losses) recognized in statements of income$— $14 $17 $(31)$6 $8 
(a)    Represents the pre-tax amounts of derivative gains/(losses) reclassified from accumulated other comprehensive income/(losses) to net income/(loss).
(b)    Represents the pre-tax amounts of the hedged items gains/(losses) in fair value hedges.
(c)    Represents recognition of realized hedge losses resulting from the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring.
Non-Derivative Impact on Statements of Comprehensive Income:
Related to our non-derivative foreign currency denominated debt instruments designated as net investment hedges, we recognized pre-tax losses of $66 million for the three months and $35 million for the nine months ended September 28, 2024 and pre-tax gains of $44 million for the three months and $12 million for the nine months ended September 30, 2023. These amounts were recognized in other comprehensive income/(loss).
22

Note 12. Accumulated Other Comprehensive Income/(Losses)
The components of, and changes in, accumulated other comprehensive income/(losses), net of tax, were as follows (in millions):
Foreign Currency Translation AdjustmentsNet Postemployment Benefit Plan AdjustmentsNet Cash Flow Hedge AdjustmentsNet Fair Value HedgesTotal
Balance as of December 30, 2023$(2,634)$15 $15 $— $(2,604)
Foreign currency translation adjustments108 — — — 108 
Net deferred gains/(losses) on net investment hedges(25)— — — (25)
Amounts excluded from the effectiveness assessment of net investment hedges27 — — — 27 
Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss)(27)— — — (27)
Net deferred gains/(losses) on cash flow hedges— — (5)— (5)
Amounts excluded from the effectiveness assessment of cash flow hedges— — 5 — 5 
Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss)— — (7)— (7)
Amounts excluded from the effectiveness assessment of fair value hedges— — — (9)(9)
Net postemployment benefit losses/(gains) reclassified to net income/(loss)— (10)— — (10)
Total other comprehensive income/(loss)83 (10)(7)(9)57 
Balance as of September 28, 2024$(2,551)$5 $8 $(9)$(2,547)
The gross amount and related tax benefit/(expense) recorded in, and associated with, each component of other comprehensive income/(loss) were as follows (in millions):
For the Three Months Ended
September 28, 2024September 30, 2023
Before Tax AmountTaxNet of Tax AmountBefore Tax AmountTaxNet of Tax Amount
Foreign currency translation adjustments$362 $— $362 $(352)$— $(352)
Net deferred gains/(losses) on net investment hedges(170)42 (128)122 (30)92 
Amounts excluded from the effectiveness assessment of net investment hedges11 (2)9 10 (3)7 
Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss)(11)2 (9)(10)2 (8)
Net deferred gains/(losses) on cash flow hedges1 (9)(8)8 6 14 
Amounts excluded from the effectiveness assessment of cash flow hedges6 — 6 4 (1)3 
Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss)(42)16 (26)27 (14)13 
Amounts excluded from the effectiveness assessment of fair value hedges(24)12 (12)— — — 
Net postemployment benefit losses/(gains) reclassified to net income/(loss)(4)1 (3)(2)1 (1)
23

For the Nine Months Ended
September 28, 2024September 30, 2023
Before Tax AmountTaxNet of Tax AmountBefore Tax AmountTaxNet of Tax Amount
Foreign currency translation adjustments$108 $— $108 $(62)$— $(62)
Net deferred gains/(losses) on net investment hedges(33)8 (25)23 (6)17 
Amounts excluded from the effectiveness assessment of net investment hedges35 (8)27 28 (7)21 
Net deferred losses/(gains) on net investment hedges reclassified to net income/(loss)(35)8 (27)(27)6 (21)
Net deferred gains/(losses) on cash flow hedges(15)10 (5)8 (3)5 
Amounts excluded from the effectiveness assessment of cash flow hedges— 5 5 14 (1)13 
Net deferred losses/(gains) on cash flow hedges reclassified to net income/(loss)3 (10)(7)(16)(2)(18)
Amounts excluded from the effectiveness assessment of fair value hedges(21)12 (9)— — — 
Net postemployment benefit losses/(gains) reclassified to net income/(loss)(13)3 (10)(11)3 (8)

24

The amounts reclassified from accumulated other comprehensive income/(losses) were as follows (in millions):
Accumulated Other Comprehensive Income/(Losses) Component Reclassified from Accumulated Other Comprehensive Income/(Losses) to Net Income/(Loss)Affected Line Item in the Statements of Income
For the Three Months EndedFor the Nine Months Ended
September 28, 2024September 30, 2023September 28, 2024September 30, 2023
Losses/(gains) on net investment hedges:
Foreign exchange contracts(a)
$(1)$(1)$(1)$(1)Interest expense
Cross-currency contracts(a)
(10)(9)(34)(26)Interest expense
Losses/(gains) on cash flow hedges:
Foreign exchange contracts(b)
(3)(5)(4)(19)Cost of products sold
Foreign exchange contracts(b)
36 — 6 — Other expense/(income)
Cross-currency contracts(b)
(81)24 (23)(18)Other expense/(income)
Cross-currency contracts(b)
6 8 21 21 Interest expense
Interest rate contracts(c)
— — 3 — Other expense/(income)
Losses/(gains) on hedges before income taxes(53)17 (32)(43)
Losses/(gains) on hedges, income taxes18 (12)(2)4 
Losses/(gains) on hedges$(35)$5 $(34)$(39)
Losses/(gains) on postemployment benefits:
Amortization of unrecognized losses/(gains)(d)
$(2)$1 $(7)$(1)
Amortization of prior service costs/(credits)(d)
(2)(3)(6)(10)
Losses/(gains) on postemployment benefits before income taxes(4)(2)(13)(11)
Losses/(gains) on postemployment benefits, income taxes1 1 3 3 
Losses/(gains) on postemployment benefits$(3)$(1)$(10)$(8)
(a)    Represents recognition of the excluded component in net income/(loss).
(b)    Includes amortization of the excluded component and the effective portion of the related hedges.
(c)    Represents recognition of realized hedge losses resulting from the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring.
(d)    These components are included in the computation of net periodic postemployment benefit costs. See Note 10, Postemployment Benefits, for additional information.
In this note we have excluded activity and balances related to noncontrolling interest due to their insignificance. This activity was primarily related to foreign currency translation adjustments.
Note 13. Financing Arrangements
Transfers of Financial Assets:
We have a nonrecourse accounts receivable factoring program whereby certain eligible receivables are sold to third party financial institutions in exchange for cash. The program provides us with an additional means for managing liquidity. Under the terms of the arrangement, we act as the collecting agent on behalf of the financial institutions to collect amounts due from customers for the receivables sold. We account for the transfer of receivables as a true sale at the point control is transferred through derecognition of the receivable on our condensed consolidated balance sheet. There were no receivables sold under this accounts receivable factoring program during the three and nine months ended September 28, 2024, and no amounts outstanding as of September 28, 2024. Receivables sold under this accounts receivable factoring program were $242 million during the three months and $863 million during the nine months ended September 30, 2023, and there were no amounts outstanding as of December 30, 2023. There were no incremental costs of factoring receivables under this arrangement for the three and nine months ended September 28, 2024 and there was an insignificant amount for the three and nine months ended September 30, 2023. The proceeds from the sales of receivables are included in cash flows from operating activities on the condensed consolidated statement of cash flows.
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Trade Payables Programs:
In order to manage our cash flow and related liquidity, we work with our suppliers to optimize our terms and conditions, which include the extension of payment terms. Our current payment terms with our suppliers, which we deem to be commercially reasonable, generally range from 0 to 250 days. We also maintain agreements with third party administrators that allow participating suppliers to track payment obligations from us, and, at the sole discretion of the supplier, sell one or more of those payment obligations to participating financial institutions. We have no economic interest in a supplier’s decision to enter into these agreements and no direct financial relationship with the financial institutions related to these programs. We pledged no assets in connection with our trade payable programs. Our obligations to our suppliers, including amounts due and scheduled payment terms, are not impacted. All amounts due to participating suppliers are paid to the third party on the original invoice due dates, regardless of whether a particular invoice was sold. Supplier participation in these agreements is voluntary. We estimate that the amounts outstanding under these programs were $0.8 billion at September 28, 2024 and December 30, 2023. The amounts were included in accounts payable on our condensed consolidated balance sheets.
Note 14. Commitments, Contingencies, and Debt
Legal Proceedings
We are involved in legal proceedings, claims, and governmental inquiries, inspections, or investigations (“Legal Matters”) arising in the ordinary course of our business. While we cannot predict with certainty the results of Legal Matters in which we are currently involved or may in the future be involved, we do not expect that the ultimate costs to resolve the Legal Matters that are currently pending will have a material adverse effect on our financial condition, results of operations, or cash flows.
Class Actions and Stockholder Derivative Actions:
Certain of The Kraft Heinz Company’s current and former officers and directors and 3G Capital, Inc. and several of its subsidiaries and affiliates (the “3G Entities”) were named as defendants in two stockholder derivative actions previously pending in the Delaware Court of Chancery, Datnoff, et al. v. Behring, et al., which was filed on May 6, 2022, and Felicetti, et al. v. Behring, et al., which was filed on March 6, 2023. The complaints alleged state law claims and contended that The Kraft Heinz Company’s Board of Directors wrongfully refused plaintiffs’ demands to pursue legal action against the named defendants. Specifically, the complaints alleged that certain of the Company’s current and former officers and directors breached their fiduciary duties to the Company by purportedly making materially misleading statements and omissions regarding the Company’s financial performance and the impairment of its goodwill and intangible assets. The complaints further alleged that the 3G Entities and certain of the Company’s current and former officers and directors breached their fiduciary duties by engaging in insider trading and misappropriating the Company’s material, non-public information, or aided and abetted such alleged breaches of fiduciary duty. The complaints sought relief against the defendants, principally in the form of damages, disgorgement of all profits obtained from the alleged insider trading, contribution and indemnification, and an award of attorneys’ fees and costs. The defendants filed a motion to dismiss the complaints, which the Delaware Chancery Court granted in an order dated July 23, 2024, dismissing the complaints with prejudice. The plaintiffs filed a notice of appeal on August 19, 2024, followed by a notice of voluntary dismissal of the appeal on September 3, 2024. The Delaware Supreme Court closed the case on September 4, 2024, formally concluding this matter in full.
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Certain of The Kraft Heinz Company’s current and former officers and directors and the 3G Entities were also named as defendants in a consolidated stockholder derivative action, In re Kraft Heinz Company Derivative Litigation, which was filed in the Delaware Court of Chancery. The consolidated amended complaint, which was filed on April 27, 2020, alleged state law claims, contending that the 3G Entities were controlling stockholders who owed fiduciary duties to the Company, and that they breached those duties by allegedly engaging in insider trading and misappropriating the Company’s material, non-public information. The complaint further alleged that certain of The Kraft Heinz Company’s current and former officers and directors breached their fiduciary duties to the Company by purportedly making materially misleading statements and omissions regarding the Company’s financial performance and the impairment of its goodwill and intangible assets, and by supposedly approving or allowing the 3G Entities’ alleged insider trading. The complaint sought relief against the defendants in the form of damages, disgorgement of all profits obtained from the alleged insider trading, contribution and indemnification, and an award of attorneys’ fees and costs. The defendants filed a motion to dismiss the consolidated amended complaint, which motion the Delaware Chancery Court granted in an order dated December 15, 2021. The plaintiffs filed a notice of appeal on January 13, 2022, and the Delaware Supreme Court affirmed the trial court’s dismissal with prejudice of the consolidated amended complaint in an order dated August 1, 2022. One of the plaintiffs in said dismissed derivative litigation subsequently filed a new complaint, Erste Asset Management v. Hees, et al., against certain current and former officers and directors of The Kraft Heinz Company on November 28, 2023 in the Delaware Court of Chancery, seeking to reinstate the plaintiff’s previously-dismissed claims and recover attorneys’ fees and costs incurred in the dismissed litigation on the basis of alleged newly discovered evidence. Specifically, the plaintiff alleges the 3G Entities caused the Company to make false and misleading public disclosures regarding the independence of two directors of The Kraft Heinz Company, one of whose independence plaintiff contends formed a basis for the court’s prior dismissal of the consolidated amended complaint. The defendants filed a motion to dismiss the complaint, which the Delaware Chancery Court granted in an order dated August 8, 2024, dismissing the complaint with prejudice. The plaintiff filed a notice of appeal on September 5, 2024. We intend to vigorously defend against this lawsuit; however, we cannot reasonably estimate the potential range of loss, if any, due to the early stage of the proceedings.
Environmental Actions:
Since March 2024, the Company has been engaged in ongoing discussions with the U.S. Department of Justice, joined by the U.S. Environmental Protection Agency (“U.S. EPA”) and the Indiana Department of Environmental Management, concerning alleged violations of the Clean Water Act related to a Company facility in Kendallville, Indiana. Previously, the Company entered into an Administrative Order on Consent with the U.S. EPA that requires the Company to implement a compliance plan to address related alleged violations of the Clean Water Act related to the facility in Kendallville, Indiana. While we cannot predict with certainty the resolution of these discussions, we do not expect that the ultimate costs to resolve this matter will have a material adverse effect on our financial condition, results of operations, or cash flows.
Debt
We may from time to time seek to retire or purchase our outstanding debt through redemptions, tender offers, cash purchases, prepayments, refinancing, exchange offers, open market or privately negotiated transactions, Rule 10b5-1 plans, or otherwise.
Borrowing Arrangements:
Together with Kraft Heinz Foods Company (“KHFC”), our 100% owned operating subsidiary, we have a credit agreement, which provides for a five-year senior unsecured revolving credit facility in an aggregate amount of $4.0 billion (as amended, the “Senior Credit Facility”). On September 27, 2024, we entered into an agreement to extend the maturity date of our Senior Credit Facility from July 8, 2028 to July 8, 2029. See Note 16, Debt, to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 30, 2023 for information on our borrowing arrangements.
Our long-term debt contains customary representations, covenants, and events of default. We were in compliance with all financial covenants as of September 28, 2024.
Debt Issuances:
In the first quarter of 2024, KHFC, our 100% owned operating subsidiary, issued 550 million euro aggregate principal amount of 3.500% senior notes due March 2029 (the “2024 Notes”). The 2024 Notes are fully and unconditionally guaranteed by The Kraft Heinz Company as to payment of principal, premium, and interest on a senior unsecured basis. We used the net proceeds from the 2024 Notes for general corporate purposes, including to fund the repayment of our 550 million euro senior notes that matured in May 2024.
In May 2023, KHFC issued 600 million euro aggregate principal amount of floating rate senior notes due May 2025 (the “2023 Notes”). The 2023 Notes are fully and unconditionally guaranteed by The Kraft Heinz Company as to payment of principal and interest on a senior unsecured basis. We used the proceeds from the 2023 Notes for general corporate purposes, including to partially fund the repayment of our 750 million euro senior notes that matured in June 2023.
Debt Issuance Costs:
Debt issuance costs related to the 2024 Notes and 2023 Notes were insignificant.
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Debt Repayments:
In May 2024, we repaid 550 million euro aggregate principal amount of senior notes that matured in the period.
In June 2023, we repaid 750 million euro aggregate principal amount of senior notes that matured in the period.
Fair Value of Debt:
At September 28, 2024, the aggregate fair value of our total debt was $19.9 billion as compared with a carrying value of $20.1 billion. At December 30, 2023, the aggregate fair value of our total debt was $19.6 billion as compared with a carrying value of $20.0 billion. Our short-term debt had a carrying value that approximated its fair value at September 28, 2024 and December 30, 2023. We determined the fair value of our long-term debt using Level 2 inputs. Fair values are generally estimated based on quoted market prices for identical or similar instruments.
Synthetic Lease Arrangements:
As previously disclosed in our Annual Report on Form 10-K for the year ended December 30, 2023, in June 2023, we entered into a non-cancellable synthetic lease for a distribution facility, for which we are the construction agent. In the first half of 2024, we encountered a construction delay that is expected to postpone the originally planned commencement date and is expected to require substantial incremental construction costs to remediate. We are currently evaluating the potential implications of this delay to the Company, the results of which cannot be reasonably determined at this time.
Note 15. Earnings Per Share
Our earnings per common share (“EPS”) were:
For the Three Months EndedFor the Nine Months Ended
September 28, 2024September 30, 2023September 28, 2024September 30, 2023
 (in millions, except per share data)
Basic Earnings Per Common Share:
Net income/(loss) attributable to common shareholders$(290)$262 $613 $2,098 
Weighted average shares of common stock outstanding1,210 1,229 1,212 1,228 
Net earnings/(loss)$(0.24)$0.21 $0.51 $1.71 
Diluted Earnings Per Common Share:
Net income/(loss) attributable to common shareholders$(290)$262 $613 $2,098 
Weighted average shares of common stock outstanding1,210 1,229 1,212 1,228 
Effect of dilutive equity awards— 6 5 7 
Weighted average shares of common stock outstanding, including dilutive effect1,210 1,235 1,217 1,235 
Net earnings/(loss)$(0.24)$0.21 $0.50 $1.70 
We use the treasury stock method to calculate the dilutive effect of outstanding equity awards in the denominator for diluted EPS. Anti-dilutive shares were 15 million for the three months and 6 million for the nine months ended September 28, 2024 and 7 million for the three and nine months ended September 30, 2023.
Note 16. Segment Reporting
In the first quarter of 2024, our internal reporting and reportable segments changed. We divided our International segment into three operating segments — EPDM, WEEM, and AEM — to enable enhanced focus on the different strategies required for each of these regions as part of our long-term strategic plan. Subsequently, we manage our operating results through four operating segments. We have two reportable segments defined by geographic region: North America and International Developed Markets. Our remaining operating segments, consisting of WEEM and AEM, are combined and disclosed as Emerging Markets. We have reflected this segment change in all historical periods presented.
As part of the segment reorganization, management reallocated certain corporate expenses previously reported within our International segment to general corporate expenses. This reflects management’s approach to centrally manage these expenses. We have reflected this reallocation in all historical periods presented.
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Our chief operating decision maker (“CODM”) evaluates segment performance based on several factors, including net sales and Segment Adjusted Operating Income. In the first quarter of 2024, following changes to our segments, our CODM reevaluated and changed the primary measure utilized to evaluate segment profitability from Segment Adjusted EBITDA to Segment Adjusted Operating Income. This change is expected to allow our CODM to better evaluate segment performance in line with our long-term strategic plan. Segment Adjusted Operating Income is defined as operating income/(loss) excluding, when they occur, the impacts of restructuring activities, deal costs, unrealized gains/(losses) on commodity hedges (the unrealized gains and losses are recorded in general corporate expenses until realized; once realized, the gains and losses are recorded in the applicable segment’s operating results), impairment losses, and certain non-ordinary course legal and regulatory matters. Emerging Markets represents the aggregation of our WEEM and AEM operating segments. Adjusted Operating Income for WEEM and AEM is the measure reported to our chief operating decision maker for purposes of making decisions about allocating resources to these operating segments and assessing their performance. Segment Adjusted Operating Income is a financial measure that assists our CODM in comparing our performance on a consistent basis by removing the impact of certain items that our CODM believes do not directly reflect our underlying operations. Our CODM also uses Segment Adjusted Operating Income to allocate resources. We have reflected this change from Segment Adjusted EBITDA to Segment Adjusted Operating Income in all historical periods presented.
Our CODM does not use assets by segment to evaluate performance or allocate resources. Therefore, we do not disclose assets by segment.
Net sales by segment were (in millions):
For the Three Months EndedFor the Nine Months Ended
September 28, 2024September 30, 2023September 28, 2024September 30, 2023
Net sales:
North America$4,826 $4,995 $14,575 $14,959 
International Developed Markets882 883 2,622 2,675 
Total segment net sales5,708 5,878 17,197 17,634 
Emerging Markets net sales
675 692 2,073 2,146 
Total net sales$6,383 $6,570 $19,270 $19,780 
Segment Adjusted Operating Income was (in millions):
For the Three Months EndedFor the Nine Months Ended
September 28, 2024September 30, 2023September 28, 2024September 30, 2023
Segment Adjusted Operating Income:
North America$1,237 $1,245 $3,793 $3,701 
International Developed Markets135 129 397 376 
Total Segment Adjusted Operating Income1,372 1,374 4,190 4,077 
Emerging Markets(a)
84 88 232 286 
General corporate expenses(126)(150)(447)(455)
Restructuring activities— (45)— (25)
Unrealized gains/(losses) on commodity hedges(3)48 30 53 
Impairment losses(1,428)(662)(2,282)(662)
Certain non-ordinary course legal and regulatory matters— — — (2)
Operating income/(loss)(101)653 1,723 3,272 
Interest expense230 228 685 683 
Other expense/(income)(48)(35)(56)(94)
Income/(loss) before income taxes$(283)$460 $1,094 $2,683 
(a) Emerging Markets represents the aggregation of our WEEM and AEM operating segments.
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In the first quarter of 2024, we changed the way we manage our product portfolio to align with our future growth strategy. As of September 28, 2024, we manage our product portfolio through eight consumer-driven product platforms: Taste Elevation, Easy Ready Meals, Substantial Snacking, Desserts, Hydration, Cheese, Coffee, and Meats. A platform is a lens created for the portfolio based on a grouping of consumer needs. The platforms help us to manage and organize our business effectively by providing insight into our various product categories and brands.
Taste Elevation includes condiments, sauces, dressings, and spreads. Easy Ready Meals includes Kraft Mac & Cheese varieties, frozen potato products, and other frozen meals. Substantial Snacking includes Lunchables meal kits, frozen snacks, and pickles. Desserts includes dry packaged desserts, refrigerated ready to eat desserts, and other dessert toppings. Hydration includes ready to drink beverages, powdered beverages, and liquid concentrates. Cheese includes American sliced and recipe cheeses. Coffee includes mainstream coffee, coffee pods, and premium coffee. Meats includes cold cuts, bacon, and hot dogs.
Each platform is assigned a role within our business to help inform our resource allocation and investment decisions, which are made at the operating segment level. These roles include: Accelerate, Protect, and Balance. Our Accelerate role contains platforms that are expected to have high growth potential, generate higher gross margins, and are in markets in which we have higher market share. Our Protect role contains platforms that are expected to have moderate growth potential, tend to generate higher gross margins, and are in markets in which we have higher market share. Our Balance role contains platforms that include commodity-heavy categories with relatively flat growth potential but help us to maintain our brand footprint.
We have reflected this change to our platforms in all historical periods presented.
Net sales by platform were (in millions):
For the Three Months EndedFor the Nine Months Ended
September 28, 2024September 30, 2023September 28, 2024September 30, 2023
ACCELERATE
Taste Elevation$2,825 $2,788 $8,443 $8,514 
Easy Ready Meals1,171 1,213 3,497 3,592 
Substantial Snacking317 387 955 1,070 
Total Accelerate4,313 4,388 12,895 13,176 
PROTECT
Desserts292 284 815 813 
Hydration539 540 1,635 1,743 
Total Protect831 824 2,450 2,556 
BALANCE
Cheese426 433 1,273 1,310 
Coffee200 219 621 647 
Meats538 568 1,633 1,670 
Other75 138 398 421 
Total Balance1,239 1,358 3,925 4,048 
Total net sales$6,383 $6,570 $19,270 $19,780 

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Note 17. Other Financial Data
Condensed Consolidated Statements of Income Information
Other expense/(income) consists of the following (in millions):
For the Three Months EndedFor the Nine Months Ended
September 28, 2024September 30, 2023September 28, 2024September 30, 2023
Amortization of postemployment benefit plans prior service costs/(credits)$(2)$(3)$(6)$(10)
Net pension and postretirement non-service cost/(benefit)(a)
(38)(22)(101)(68)
Loss/(gain) on sale of business(1)— 78 2 
Interest income(16)(12)(49)(28)
Foreign exchange losses/(gains)7 (25)(28)21 
Derivative losses/(gains)(2)30 46 (8)
Other miscellaneous expense/(income)4 (3)4 (3)
Other expense/(income)$(48)$(35)$(56)$(94)
(a) Excludes amortization of postemployment benefit plans prior service costs/(credits).
We present all non-service cost components of net pension cost/(benefit) and net postretirement cost/(benefit) within other expense/(income) on our condensed consolidated statements of income. See Note 10, Postemployment Benefits, for additional information on these components, including any curtailments and settlements, as well as information on our prior service costs/(credits) amortization. See Note 11, Financial Instruments, for information related to our derivative impacts.
Other expense/(income) was $48 million of income for the three months ended September 28, 2024 compared to $35 million of income for the three months ended September 30, 2023. This change was primarily driven by a $2 million net gain on derivative activities in the third quarter of 2024 compared to a $30 million net loss on derivative activities in the third quarter of 2023,a $16 million increase in non-cash net pension and postretirement non-service benefits compared to the third quarter of 2023, and $16 million in interest income in the third quarter of 2024 compared to $12 million in interest income in the third quarter of 2023. These positive impacts on other expense/(income) were partially offset by a $7 million net foreign exchange loss in the third quarter of 2024 compared to a $25 million net foreign exchange gain in the third quarter of 2023 and $4 million in other miscellaneous expense in the third quarter of 2024 compared to $3 million of income in the third quarter of 2023.
Other expense/(income) was $56 million of income for the nine months ended September 28, 2024 compared to $94 million of income for the nine months ended September 30, 2023. This change was primarily driven by a $78 million net loss on the sale of businesses in 2024 compared to a $2 million net loss on the sale of business in 2023 and a $46 million net loss on derivative activities in 2024 compared to a $8 million net gain on derivative activities in 2023, which was partially offset by a $28 million net foreign exchange gain in 2024 compared to a $21 million net foreign exchange loss in 2023, a $33 million increase in net pension and postretirement non-service benefit compared to 2023, and $49 million in interest income in 2024 compared to $28 million in interest income in 2023.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Overview
Objective:
The following discussion provides an analysis of our financial condition and results of operations from management's perspective and should be read in conjunction with the condensed consolidated financial statements and related notes included in Item 1, Financial Statements, of this Quarterly Report on Form 10-Q. Our objective is to also provide discussion of material events and uncertainties known to management that are reasonably likely to cause reported financial information not to be indicative of future operating results or of future financial condition and to offer information that provides an understanding of our financial condition, results of operations, and cash flows.
Description of the Company:
We manufacture and market food and beverage products, including condiments and sauces, cheese and dairy, meals, meats, refreshment beverages, coffee, and other grocery products throughout the world.
In the first quarter of 2024, our internal reporting structure and reportable segments changed. We divided our International segment into three operating segments — Europe and Pacific Developed Markets (“EPDM” or “International Developed Markets”), West and East Emerging Markets (“WEEM”), and Asia Emerging Markets (“AEM”) — to enable enhanced focus on the different strategies required for each of these regions as part of our long-term strategic plan. Subsequently, we manage our operating results through four operating segments. We have two reportable segments defined by geographic region: North America and International Developed Markets. Our remaining operating segments, consisting of WEEM and AEM, are combined and disclosed as Emerging Markets. We have reflected this change in all historical periods presented.
See Note 16, Segment Reporting, in Item 1, Financial Statements, for our financial information by segment.
Acquisitions and Divestitures:
In the first quarter of 2024, we closed the sale of the Russia Infant Transaction and the Papua New Guinea Transaction. See Note 4, Acquisitions and Divestitures, in Item 1, Financial Statements, for additional information on divestiture activities.
Conflict Between Russia and Ukraine:
For the nine months ended September 28, 2024 and the year ended December 30, 2023, approximately 1% of consolidated net sales, operating income, and Adjusted Operating Income were generated from our business in Russia. As of September 28, 2024, less than 1% of consolidated total assets were located in Russia and we had approximately 800 employees in Russia. We have no operations or employees in Ukraine and insignificant net sales through distributors. We will continue to monitor the impact that this conflict has on our business; however, through the third quarter of 2024, the conflict between Russia and Ukraine did not have a material impact on our financial condition, results of operations, or cash flows.
Items Affecting Comparability of Financial Results
Inflation and Supply Chain Impacts:
During the nine months ended September 28, 2024, we experienced increased stability of input and supply chain costs as compared to the prior year period. We expect inflation to continue to moderate through the remainder of 2024 and to be lower than we experienced in 2023. While these costs have a negative impact on our results of operations, we have taken measures to mitigate the impact of this inflation through efficiency initiatives, pricing actions, and hedging strategies. However, there has been, and we expect that there could continue to be, a difference between the timing of when these beneficial actions impact our results of operations and when the cost inflation is incurred. Additionally, the pricing actions we have taken have, in some instances, negatively impacted, and could continue to negatively impact, our market share.
Results of Operations
We disclose in this report certain non-GAAP financial measures. These non-GAAP financial measures assist management in comparing our performance on a consistent basis for purposes of business decision-making by removing the impact of certain items that management believes do not directly reflect our underlying operations. For additional information and reconciliations to the most closely comparable financial measures presented in our condensed consolidated financial statements, which are calculated in accordance with U.S. GAAP see Non-GAAP Financial Measures.
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Consolidated Results of Operations
Summary of Results:
For the Three Months EndedFor the Nine Months Ended
September 28, 2024September 30, 2023% ChangeSeptember 28, 2024September 30, 2023% Change
(in millions, except per share data)(in millions, except per share data)
Net sales$6,383 $6,570 (2.8)%$19,270 $19,780 (2.6)%
Operating income/(loss)(101)653 (115.5)%1,723 3,272 (47.3)%
Net income/(loss)(290)254 (214.2)%614 2,089 (70.6)%
Net income/(loss) attributable to common shareholders(290)262 (210.7)%613 2,098 (70.8)%
Diluted EPS(0.24)0.21 (214.3)%0.50 1.70 (70.6)%
Net Sales:
For the Three Months EndedFor the Nine Months Ended
September 28, 2024September 30, 2023% ChangeSeptember 28, 2024September 30, 2023% Change
(in millions)(in millions)
Net sales$6,383 $6,570 (2.8)%$19,270 $19,780 (2.6)%
Organic Net Sales(a)
6,399 6,543 (2.2)%19,332 19,671 (1.7)%
(a)     Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item.
Three Months Ended September 28, 2024 Compared to the Three Months Ended September 30, 2023:
Net sales decreased 2.8% to $6.4 billion for the three months ended September 28, 2024 compared to $6.6 billion for the three months ended September 30, 2023, including the unfavorable impacts of foreign currency (0.4 pp) and acquisitions and divestitures (0.2 pp). Organic Net Sales decreased 2.2% to $6.4 billion for the three months ended September 28, 2024 compared to $6.5 billion for the three months ended September 30, 2023, primarily due to the unfavorable volume/mix (3.4 pp), which more than offset higher pricing (1.2 pp). Higher pricing in North America and Emerging Markets was partially offset by lower pricing in International Developed Markets. Volume/mix in North America and International Developed Markets was unfavorable, while volume/mix in Emerging Markets was favorable.
Nine Months Ended September 28, 2024 Compared to the Nine Months Ended September 30, 2023:
Net sales decreased 2.6% to $19.3 billion for the nine months ended September 28, 2024 compared to $19.8 billion for the nine months ended September 30, 2023, including unfavorable impacts of foreign currency (0.7 pp) and acquisitions and divestitures (0.2 pp). Organic Net Sales decreased 1.7% to $19.3 billion for the nine months ended September 28, 2024 compared to $19.7 billion for the nine months ended September 30, 2023, primarily due to the unfavorable volume/mix (3.3 pp), which more than offset higher pricing (1.6 pp). Higher pricing in North America and Emerging Markets was partially offset by lower pricing in International Developed Markets. Volume/mix in both North America and International Developed Markets was unfavorable, while volume/mix in Emerging Markets was favorable.
Net Income/(Loss):
For the Three Months EndedFor the Nine Months Ended
September 28, 2024September 30, 2023% ChangeSeptember 28, 2024September 30, 2023% Change
(in millions)(in millions)
Operating income/(loss)$(101)$653 (115.5)%$1,723 $3,272 (47.3)%
Net income/(loss)(290)254 (214.2)%614 2,089 (70.6)%
Net income/(loss) attributable to common shareholders(290)262 (210.7)%613 2,098 (70.8)%
Adjusted Operating Income(a)
1,330 1,312 1.4 %3,975 3,908 1.7 %
(a)    Adjusted Operating Income is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item.
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Three Months Ended September 28, 2024 Compared to the Three Months Ended September 30, 2023:
Operating income/(loss) decreased 115.5% to losses of $101 million for the three months ended September 28, 2024 compared to income of $653 million for the three months ended September 30, 2023, due to non-cash impairment losses that were $766 million higher in the current year period. Excluding the impact of these non-cash impairment losses, operating income/(loss) increased $12 million driven by higher pricing; the beneficial impact from our efficiency initiatives, primarily in procurement; and lower variable compensation expense, partially offset by unfavorable volume/mix; increased manufacturing expenses due, in part, to increased labor costs; and unfavorable changes in unrealized losses/(gains) on commodity hedges.
Net income/(loss) decreased 214.2% to losses of $290 million for the three months ended September 28, 2024 compared to income of $254 million for the three months ended September 30, 2023. This decrease was due to the unfavorable changes in operating income/(loss) factors discussed above, which more than offset the lower income tax expense and the favorable changes in other expense/(income). Interest expense was flat compared to the prior year period.
•Our effective tax rate for the three months ended September 28, 2024 was an expense of 2.5% on pre-tax losses, compared to an expense of 44.7% on pre-tax income for the three months ended September 30, 2023. Our effective tax rate included a net unfavorable impact of goodwill and intangible asset impairment losses in both the current year period (23.1%), and in the prior year period (24.3%). The year-over-year change in the effective tax rate for the three-month period was primarily due to the unfavorable impact of goodwill and intangible asset impairment losses and the establishment of valuation allowances in certain foreign jurisdictions, partially offset by more favorable changes in estimates of certain 2022 U.S. income and deductions in the prior year period.
•Other expense/(income) was $48 million of income for the three months ended September 28, 2024 compared to $35 million of income for the three months ended September 30, 2023. The year-over-year increase was primarily driven by an increase in non-cash net pension and postretirement non-service benefits.
Adjusted Operating Income increased 1.4% to $1.3 billion for the three months ended September 28, 2024 compared to $1.3 billion for the three months ended September 30, 2023, primarily driven by higher pricing; the beneficial impact from our efficiency initiatives, primarily in procurement; and lower variable compensation expense. These favorable impacts more than offset unfavorable volume/mix; increased manufacturing expenses due, in part, to increased labor costs, and the unfavorable impact of foreign currency (0.2 pp).
Nine Months Ended September 28, 2024 Compared to the Nine Months Ended September 30, 2023:
Operating income/(loss) decreased 47.3% to income of $1.7 billion for the nine months ended September 28, 2024 compared to income of $3.3 billion for the nine months ended September 30, 2023, due to non-cash impairment losses that were $1.6 billion higher in the current year period. Excluding the impact of these non-cash impairment losses, operating income/(loss) increased $71 million driven by higher pricing; the beneficial impact from our efficiency initiatives, primarily in procurement and logistics; and lower variable compensation expense, partially offset by unfavorable volume/mix; increased manufacturing expenses due, in part, to increased labor costs; and increased SG&A due to investments in advertising, technology, and research and development.
Net income/(loss) decreased 70.6% to income of $614 million for the nine months ended September 28, 2024 compared to income of $2.1 billion for the nine months ended September 30, 2023. This decrease was due to the unfavorable changes in operating income/(loss) factors discussed above and unfavorable changes in other expense/(income), partially offset by lower income tax expense. Interest expense was flat compared to the prior year period.
•Our effective tax rate for the nine months ended September 28, 2024 was an expense of 43.9% on pre-tax income, compared to an expense of 22.1% on pre-tax income for the nine months ended September 30, 2023. Our effective tax rate included a net unfavorable impact of goodwill and intangible asset impairment losses in both the current year period (22.9%), and in the prior year period (3.9%). The year-over-year increase in the effective tax rate for the nine-month period was primarily due to the unfavorable impact of goodwill and intangible asset impairment losses, the establishment of valuation allowances in certain foreign jurisdictions, and the impact of a net decrease in uncertain tax position reserves in the prior year period.
•Other expense/(income) was $56 million of income for the nine months ended September 28, 2024 compared to $94 million of income for the nine months ended September 30, 2023. The year-over-year decrease was primarily due to a $78 million net loss on the sale of businesses in 2024, which was partially offset by an increase in net pension and postretirement non-service benefits, an increase in interest income, and net foreign exchange gains in 2024.
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Adjusted Operating Income increased 1.7% to $4.0 billion for the nine months ended September 30, 2023 compared to $3.9 billion for the nine months ended September 30, 2023, primarily driven by higher pricing; the beneficial impact from our efficiency initiatives, primarily in procurement and logistics; and lower variable compensation expense. These favorable impacts more than offset unfavorable volume/mix; increased manufacturing expenses due, in part, to increased labor costs; increased SG&A due to investments in advertising, technology, and research and development; and the unfavorable impact of foreign currency (0.5 pp).
Diluted EPS:
For the Three Months EndedFor the Nine Months Ended
September 28, 2024September 30, 2023% ChangeSeptember 28, 2024September 30, 2023% Change
Diluted EPS$(0.24)$0.21 (214.3)%$0.50 $1.70 (70.6)%
Adjusted EPS(a)
0.75 0.72 4.2 %2.22 2.20 0.9 %
(a)    Adjusted EPS is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item.
Three Months Ended September 28, 2024 Compared to the Three Months Ended September 30, 2023:
Diluted EPS decreased 214.3% to $(0.24) for the three months ended September 28, 2024 compared to $0.21 for the three months ended September 30, 2023, primarily due to the net income/(loss) factors discussed above, which more than offset the favorable impact of our common stock repurchases.
For the Three Months Ended
September 28, 2024September 30, 2023$ Change% Change
Diluted EPS$(0.24)$0.21 $(0.45)(214.3)%
Restructuring activities— 0.03 (0.03)
Unrealized losses/(gains) on commodity hedges— (0.03)0.03 
Impairment losses0.99 0.50 0.49 
Nonmonetary currency devaluation— 0.01 (0.01)
Adjusted EPS(a)
$0.75 $0.72 $0.03 4.2 %
Key drivers of change in Adjusted EPS(a):
Results of operations$0.01 
Effective tax rate0.01 
Effect of common stock repurchases(b)
0.01 
$0.03 
(a) Adjusted EPS is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item.
(b) Includes the impact of the change in the weighted average shares of common stock outstanding, including dilutive effect, which is primarily due to shares purchased pursuant to our publicly announced share repurchase program. See Note 15, Earnings Per Share, for more information on our weighted average shares outstanding.
Adjusted EPS increased 4.2% to $0.75 for the three months ended September 28, 2024 compared to $0.72 for the three months ended September 30, 2023. This increase was primarily due to higher Adjusted Operating Income, lower taxes on adjusted earnings, and the favorable impact of our common stock repurchases.
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Nine Months Ended September 28, 2024 Compared to the Nine Months Ended September 30, 2023:
Diluted EPS decreased 70.6% to $0.50 for the nine months ended September 28, 2024 compared to $1.70 for the nine months ended September 30, 2023, primarily due to the net income/(loss) factors discussed above, which more than offset the favorable impact of our common stock repurchases.
For the Nine Months Ended
September 28, 2024September 30, 2023$ Change% Change
Diluted EPS$0.50 $1.70 $(1.20)(70.6)%
Restructuring activities— 0.02 (0.02)
Unrealized losses/(gains) on commodity hedges(0.02)(0.03)0.01 
Impairment losses1.69 0.50 1.19 
Nonmonetary currency devaluation— 0.02 (0.02)
Certain significant discrete income tax items— (0.01)0.01 
Adjusted EPS(a)
$2.22 $2.20 $0.02 0.9 %
Key drivers of change in Adjusted EPS(a):
Results of operations$0.04 
Effective tax rate(0.05)
Effect of common stock repurchases(b)
0.03 
$0.02 
(a) Adjusted EPS is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item.
(b) Includes the impact of the change in the weighted average shares of common stock outstanding, including dilutive effect, which is primarily due to shares purchased pursuant to our publicly announced share repurchase program. See Note 15, Earnings Per Share, for more information on our weighted average shares outstanding.
Adjusted EPS increased 0.9% to $2.22 for the nine months ended September 28, 2024 compared to $2.20 for the nine months ended September 30, 2023. This increase was primarily due to higher Adjusted Operating Income and the favorable impact of our common stock repurchases, which more than offset higher taxes on adjusted earnings.
Results of Operations by Segment
We manage our operating results through four operating segments. We have two reportable segments defined by geographic region: North America and International Developed Markets. Our remaining operating segments, consisting of WEEM and AEM, are combined and disclosed as Emerging Markets.
Management evaluates segment performance based on several factors, including net sales, Organic Net Sales, and Segment Adjusted Operating Income. In the first quarter of 2024, certain measures utilized by management to evaluate segment performance changed, including a change from Segment Adjusted EBITDA to Segment Adjusted Operating Income in order to drive a stronger connection to our long-term strategic plan. Segment Adjusted Operating Income is defined as operating income/(loss) excluding, when they occur, the impacts of restructuring activities, deal costs, unrealized gains/(losses) on commodity hedges (the unrealized gains and losses are recorded in general corporate expenses until realized; once realized, the gains and losses are recorded in the applicable segment’s operating results), impairment losses, and certain non-ordinary course legal and regulatory matters. Segment Adjusted Operating Income for Emerging Markets, which represents the aggregation of our WEEM and AEM operating segments, is defined and presented consistently with the Segment Adjusted Operating Income of our reportable segments — North America and International Developed Markets. Segment Adjusted Operating Income is a financial measure that can assist management and investors in comparing our performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our underlying operations. Management also uses Segment Adjusted Operating Income to allocate resources. We have reflected this change from Segment Adjusted EBITDA to Segment Adjusted Operating Income in all historical periods presented.
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Under highly inflationary accounting, the financial statements of a subsidiary are remeasured into our reporting currency (U.S. dollars) based on the legally available exchange rate at which we expect to settle the underlying transactions. Exchange gains and losses from the remeasurement of monetary assets and liabilities are reflected in other expense/(income) on our condensed consolidated statements of income, as nonmonetary currency devaluation, rather than accumulated other comprehensive income/(losses) on our condensed consolidated balance sheets, until such time as the economy is no longer considered highly inflationary. See Note 2, Significant Accounting Policies, to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 30, 2023, for additional information. We apply highly inflationary accounting to the results of our subsidiaries in Venezuela, Argentina, and Turkey, which are all included in Emerging Markets.
Net Sales:
For the Three Months EndedFor the Nine Months Ended
September 28, 2024September 30, 2023September 28, 2024September 30, 2023
(in millions)
Net sales:
North America$4,826 $4,995 $14,575 $14,959 
International Developed Markets882 883 2,622 2,675 
Emerging Markets
675 692 2,073 2,146 
Total net sales$6,383 $6,570 $19,270 $19,780 

Organic Net Sales:
For the Three Months EndedFor the Nine Months Ended
September 28, 2024September 30, 2023September 28, 2024September 30, 2023
(in millions)
Organic Net Sales(a):
North America$4,834 $4,995 $14,590 $14,959 
International Developed Markets867 883 2,612 2,675 
Emerging Markets
698 665 2,130 2,037 
Total Organic Net Sales$6,399 $6,543 $19,332 $19,671 
(a)     Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item.

Drivers of the changes in net sales and Organic Net Sales for the three and nine months ended September 28, 2024 compared to the three and nine months ended September 30, 2023 were:
Net SalesCurrencyAcquisitions and DivestituresOrganic Net SalesPriceVolume/Mix
For the Three Months Ended
North America(3.4)%(0.2) pp0.0 pp(3.2)%1.2 pp(4.4) pp
International Developed Markets(0.2)%1.6 pp0.0 pp(1.8)%(1.0) pp(0.8) pp
Emerging Markets
(2.4)%(4.9) pp(2.4) pp4.9 %3.8 pp1.1 pp
Kraft Heinz(2.8)%(0.4) pp(0.2) pp(2.2)%1.2 pp(3.4) pp
Net SalesCurrencyAcquisitions and DivestituresOrganic Net SalesPriceVolume/Mix
For the Nine Months Ended
North America(2.6)%(0.1) pp0.0 pp(2.5)%1.6 pp(4.1) pp
International Developed Markets(2.0)%0.4 pp0.0 pp(2.4)%(0.1) pp(2.3) pp
Emerging Markets
(3.4)%(6.1) pp(1.9) pp4.6 %3.3 pp1.3 pp
Kraft Heinz(2.6)%(0.7) pp(0.2) pp(1.7)%1.6 pp(3.3) pp
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Adjusted Operating Income:
For the Three Months EndedFor the Nine Months Ended
September 28, 2024September 30, 2023September 28, 2024September 30, 2023
(in millions)
Segment Adjusted Operating Income:
North America$1,237 $1,245 $3,793 $3,701 
International Developed Markets135 129 397 376 
Emerging Markets Segment Adjusted Operating Income(a)
84 88 232 286 
General corporate expenses(126)(150)(447)(455)
Restructuring activities— (45)— (25)
Unrealized gains/(losses) on commodity hedges(3)48 30 53 
Impairment losses(1,428)(662)(2,282)(662)
Certain non-ordinary course legal and regulatory matters— — — (2)
Operating income/(loss)(101)653 1,723 3,272 
Interest expense230 228 685 683 
Other expense/(income)(48)(35)(56)(94)
Income/(loss) before income taxes$(283)$460 $1,094 $2,683 
(a) Segment Adjusted Operating Income for Emerging Markets, which represents the combination of our WEEM and AEM operating segments, is defined and presented consistently with the Segment Adjusted Operating Income of our reportable segments - North America and International Developed Markets.
North America:
For the Three Months EndedFor the Nine Months Ended
September 28, 2024September 30, 2023% ChangeSeptember 28, 2024September 30, 2023% Change
(in millions)(in millions)
Net sales$4,826 $4,995 (3.4)%$14,575 $14,959 (2.6)%
Organic Net Sales(a)
4,834 4,995 (3.2)%14,590 14,959 (2.5)%
Segment Adjusted Operating Income
1,237 1,245 (0.6)%3,793 3,701 2.5 %
(a)     Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item.
Three Months Ended September 28, 2024 Compared to the Three Months Ended September 30, 2023:
Net sales decreased 3.4% to $4.8 billion for the three months ended September 28, 2024 compared to $5.0 billion for the three months ended September 30, 2023, including the unfavorable impacts of foreign currency (0.2 pp). Organic Net Sales decreased 3.2% to $4.8 billion for the three months ended September 28, 2024 compared to $5.0 billion for the three months ended September 30, 2023, primarily due to unfavorable volume/mix (4.4 pp), which more than offset higher pricing (1.2 pp). Higher pricing was taken in certain categories to mitigate higher input costs. Unfavorable volume/mix was primarily driven by shifts in consumer behavior due to economic uncertainty and a decline in Lunchables.
Segment Adjusted Operating Income decreased 0.6% to $1.2 billion for the three months ended September 28, 2024 compared to $1.2 billion for the three months ended September 30, 2023, primarily due to unfavorable volume/mix; increased manufacturing expenses due, in part, to increased labor costs; and the unfavorable impact of foreign currency (0.2 pp), which more than offset higher pricing; the beneficial impact from our efficiency initiatives, primarily in procurement; and lower variable compensation expense.
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Nine Months Ended September 28, 2024 Compared to the Nine Months Ended September 30, 2023:
Net sales decreased 2.6% to $14.6 billion for the nine months ended September 28, 2024 compared to $15.0 billion for the nine months ended September 30, 2023, including the unfavorable impacts of foreign currency (0.1 pp). Organic Net Sales decreased 2.5% to $14.6 billion for the nine months ended September 28, 2024 compared to $15.0 billion for the nine months ended September 30, 2023, primarily due to unfavorable volume/mix (4.1 pp), which more than offset higher pricing (1.6 pp). Higher pricing was primarily driven by increases to mitigate higher input costs. Unfavorable volume/mix was primarily driven by shifts in consumer behavior due to economic uncertainty, a decline in Lunchables, and a temporary plant closure.
Segment Adjusted Operating Income increased 2.5% to $3.8 billion for the nine months ended September 28, 2024 compared to $3.7 billion for the nine months ended September 30, 2023, primarily driven by higher pricing; the beneficial impact from our efficiency initiatives, primarily in procurement and logistics; and lower variable compensation expense. These favorable impacts more than offset unfavorable volume/mix; increased manufacturing expenses due, in part, to increased labor cost; increased SG&A due to investments in advertising, research and development, and technology; increased depreciation expense; and the unfavorable impact of foreign currency (0.1 pp).
International Developed Markets:
For the Three Months EndedFor the Nine Months Ended
September 28, 2024September 30, 2023% ChangeSeptember 28, 2024September 30, 2023% Change
(in millions)(in millions)
Net sales$882 $883 (0.2)%$2,622 $2,675 (2.0)%
Organic Net Sales(a)
867 883 (1.8)%2,612 2,675 (2.4)%
Segment Adjusted Operating Income
135 129 4.2 %397 376 5.6 %
(a)    Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item.
Three Months Ended September 28, 2024 Compared to the Three Months Ended September 30, 2023:
Net sales decreased 0.2% to $882 million for the three months ended September 28, 2024 compared to $883 million for the three months ended September 30, 2023, including the favorable impacts of foreign currency (1.6 pp). Organic Net Sales decreased 1.8% to $867 million for the three months ended September 28, 2024 compared to $883 million for the three months ended September 30, 2023, primarily due to lower pricing (1.0 pp) and unfavorable volume/mix (0.8 pp). Lower pricing was predominantly the result of increased investments in trade within the United Kingdom. Unfavorable volume/mix was due in part to a temporary pause in shipments due to a contract negotiation with certain customers within our Continental Europe region.
Segment Adjusted Operating Income increased 4.2% to $135 million for the three months ended September 28, 2024 compared to $129 million for the three months ended September 30, 2023, primary driven by lower variable compensation expense and the favorable impact of foreign currency (2.2 pp), which more than offset lower pricing and unfavorable volume/mix.
Nine Months Ended September 28, 2024 Compared to the Nine Months Ended September 30, 2023:
Net sales decreased 2.0% to $2.6 billion for the nine months ended September 28, 2024 compared to $2.7 billion for the nine months ended September 30, 2023, including the favorable impacts of foreign currency (0.4 pp). Organic Net Sales decreased 2.4% to $2.6 billion for the nine months ended September 28, 2024 compared to $2.7 billion for the nine months ended September 30, 2023, primarily due to unfavorable volume/mix (2.3 pp) and lower pricing (0.1 pp). Unfavorable volume/mix was due to lower sales in New Zealand due to inventory reduction by a regional customer, and a temporary pause in shipments due to a contract negotiation with certain customers within our Continental Europe region. Lower pricing was predominantly the result of increased investments in trade within the United Kingdom.
Segment Adjusted Operating Income increased 5.6% to $397 million for the nine months ended September 28, 2024 compared to $376 million for the nine months ended September 30, 2023, primarily driven by lapping the prior year business disruption caused by Cyclone Gabrielle within our ANJ region, lower variable compensation expense, and the favorable impact of foreign currency (1.7 pp). These favorable impacts to Segment Adjusted Operating Income more than offset unfavorable volume/mix, increased advertising expense, and lower pricing.
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Emerging Markets:
For the Three Months EndedFor the Nine Months Ended
September 28, 2024September 30, 2023% ChangeSeptember 28, 2024September 30, 2023% Change
(in millions)(in millions)
Net sales$675 $692 (2.4)%$2,073 $2,146 (3.4)%
Organic Net Sales(a)
698 665 4.9 %2,130 2,037 4.6 %
Segment Adjusted Operating Income(b)
84 88 (4.5)%232 286 (19.0)%
(a)    Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item.
(b) Segment Adjusted Operating Income for Emerging Markets, which represents the combination of our WEEM and AEM operating segments, is defined and presented consistently with the Segment Adjusted Operating Income of our reportable segments - North America and International Developed Markets.
Three Months Ended September 28, 2024 Compared to the Three Months Ended September 30, 2023:
Net sales decreased 2.4% to $675 million for the three months ended September 28, 2024 compared to $692 million for the three months ended September 30, 2023, including the unfavorable impacts of foreign currency (4.9 pp) and acquisitions and divestitures (2.4 pp). Organic Net Sales increased 4.9% to $698 million for the three months ended September 28, 2024 compared to $665 million for the three months ended September 30, 2023, primarily driven by higher pricing (3.8 pp) and favorable volume/mix (1.1 pp). Higher pricing was taken primarily in our Eastern Europe region to address higher input costs, which more than offset lower pricing in Brazil as a result of maintaining price gaps to competition. Favorable volume/mix within our Eastern Europe and Asia regions more than offset unfavorable volume/mix in Brazil.
Segment Adjusted Operating Income decreased 4.5% to $84 million for the three months ended September 28, 2024 compared to $88 million for the three months ended September 30, 2023, primarily due to higher supply chain costs reflecting inflationary pressures in our Eastern Europe and LATAM regions, the unfavorable impact of foreign currency (3.5 pp), and increased SG&A as a result of our investments in our go-to-market strategy, primarily in LATAM. These unfavorable impacts to Segment Adjusted Operating Income more than offset higher pricing, favorable volume/mix, and lower variable compensation expense.
Nine Months Ended September 28, 2024 Compared to the Nine Months Ended September 30, 2023:
Net sales decreased 3.4% to $2.1 billion for the nine months ended September 28, 2024 compared to $2.1 billion for the nine months ended September 30, 2023, including the unfavorable impacts of foreign currency (6.1 pp) and acquisitions and divestitures (1.9 pp). Organic Net Sales increased 4.6% to $2.1 billion for the nine months ended September 28, 2024 compared to $2.0 billion for the nine months ended September 30, 2023, primarily driven by higher pricing (3.3 pp) and favorable volume/mix (1.3 pp). Higher pricing was taken primarily in our Eastern Europe region to address higher input costs, which more than offset lower pricing in Brazil as a result of maintaining price gaps to competition. Favorable volume/mix within our Eastern Europe and Asia regions more than offset unfavorable volume/mix in Brazil.
Segment Adjusted Operating Income decreased 19.0% to $232 million for the nine months ended September 28, 2024 compared to $286 million for the nine months ended September 30, 2023, primarily due to higher supply chain costs reflecting inflationary pressures in our Eastern Europe and LATAM regions, the unfavorable impact of foreign currency (6.5 pp); and increased SG&A as a result of our investments in our go-to-market strategy, primarily in LATAM. These unfavorable impacts to Segment Adjusted Operating Income more than offset higher pricing, favorable volume/mix, and lower variable compensation expense.
Liquidity and Capital Resources
We believe that cash generated from our operating activities, commercial paper programs, and our senior unsecured revolving credit facility (the “Senior Credit Facility”) will provide sufficient liquidity to meet our working capital needs, repayments of long-term debt, future contractual obligations, payment of our anticipated quarterly dividends, planned capital expenditures, restructuring expenditures, and contributions to our postemployment benefit plans for the next 12 months. An additional potential source of liquidity is access to capital markets. We intend to use our cash on hand and commercial paper programs for daily funding requirements.
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Cash Flow Activity for the Nine Months Ended September 28, 2024 Compared to the Nine Months Ended September 30, 2023:
Net Cash Provided by/Used for Operating Activities:
Net cash provided by operating activities was $2.8 billion for the nine months ended September 28, 2024 compared to $2.6 billion for the nine months ended September 30, 2023. This increase was primarily due to favorable changes in working capital driven by accounts payable and the lapping of prior year cash payments associated with the settlement of the consolidated securities class action lawsuit, which were partially offset by higher cash outflows for inventory and variable compensation in the 2024 period compared to the 2023 period. Further, net cash provided by operating activities was favorably impacted by increased Adjusted Operating Income.
Net Cash Provided by/Used for Investing Activities:
Net cash used for investing activities was $849 million for the nine months ended September 28, 2024 compared to $738 million for the nine months ended September 30, 2023. This change was primarily driven by our payments to acquire the TGI Friday License. This was offset by favorable hedging settlements in the current period. We expect 2024 capital expenditures to be approximately $1.1 billion compared to the 2023 capital expenditures of $1.0 billion. Our 2024 capital expenditures are expected to be primarily driven by maintenance projects, capital investments focused on generating growth, including capacity expansion and digital projects, as well as investments in technology.
Net Cash Provided by/Used for Financing Activities:
Net cash used for financing activities was $2.0 billion for the nine months ended September 28, 2024 compared to $1.8 billion for the nine months ended September 30, 2023. This change was primarily due to increased common stock repurchases pursuant to our publicly announced share repurchase program, partially offset by reduced debt repayments in the current year period compared to the prior year. See Note 14, Commitments, Contingencies, and Debt for additional information on our debt issuances and repayments.
Cash Held by International Subsidiaries:
Of the $1.3 billion cash and cash equivalents on our condensed consolidated balance sheet at September 28, 2024, $850 million was held by international subsidiaries.
Subsequent to January 1, 2018, we consider the unremitted earnings of certain international subsidiaries that impose local country taxes on dividends to be indefinitely reinvested. For those undistributed earnings considered to be indefinitely reinvested, our intent is to reinvest these funds in our international operations, and our current plans do not demonstrate a need to repatriate the accumulated earnings to fund our U.S. cash requirements. The amount of unrecognized deferred tax liabilities for local country withholding taxes that would be owed, if repatriated, related to our 2018 through 2024 accumulated earnings of certain international subsidiaries is approximately $70 million.
Our undistributed historic earnings in foreign subsidiaries through December 31, 2017 are currently not considered to be indefinitely reinvested. Our deferred tax liability associated with these undistributed historical earnings was insignificant at September 28, 2024 and December 30, 2023 and relates to local withholding taxes that will be owed when this cash is distributed.
Trade Payables Programs:
We maintain agreements with third party administrators that allow participating suppliers to track payment obligations from us, and, at the sole discretion of the supplier, sell one or more of those payment obligations to participating financial institutions. We have no economic interest in a supplier’s decision to enter into these agreements and no direct financial relationship with the financial institutions related to these programs. Our obligations to our suppliers, including amounts due and scheduled payment terms, are not impacted. We estimate that the amounts outstanding under these programs were $0.8 billion at September 28, 2024 and December 30, 2023. See Note 13, Financing Arrangements, in Item 1, Financial Statement, for additional information on our trade payables programs.
Borrowing Arrangements:
From time to time, we obtain funding through our commercial paper programs. We had no commercial paper outstanding at September 28, 2024, at December 30, 2023, or during the nine months ended September 28, 2024 or September 30, 2023.
Our Senior Credit Facility provides for a revolving commitment of $4.0 billion through July 8, 2029. Subject to certain conditions, we may increase the amount of revolving commitments and/or add tranches of term loans in a combined aggregate amount of up to $1.0 billion.
No amounts were drawn on our Senior Credit Facility at September 28, 2024 or December 30, 2023, or during the nine months ended September 28, 2024 or September 30, 2023.
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Our credit agreement contains customary representations, warranties, and covenants that are typical for these types of facilities and could, upon the occurrence of certain events of default, restrict our ability to access our Senior Credit Facility. We were in compliance with all financial covenants as of September 28, 2024.
Long-Term Debt:
Our long-term debt, including the current portion, was $20.1 billion at September 28, 2024 and $20.0 billion at December 30, 2023. This increase was primarily due to the issuance of the 2024 Notes, as well as changes in foreign currency exchange rates on our foreign-denominated debt, partially offset by the 550 million euro aggregate principle amount of senior notes that were repaid at maturity in May 2024.

We have aggregate principal amounts of senior notes of approximately 600 million euros maturing in May 2025.
We may from time to time seek to retire or purchase our outstanding debt through redemptions, tender offers, cash purchases, prepayments, refinancing, exchange offers, open market or privately negotiated transactions, Rule 10b5-1 plans, or otherwise.
Our long-term debt contains customary representations, covenants, and events of default. We were in compliance with all financial covenants as of September 28, 2024.
See Note 14, Commitments, Contingencies, and Debt, in Item 1, Financial Statements, for additional information on our long-term debt activity and Note 16, Debt, to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 30, 2023 for additional information on our borrowing arrangements and long-term debt.
Equity and Dividends:
We paid dividends on our common stock of $1.5 billion for the nine months ended September 28, 2024 and the nine months ended September 30, 2023. Additionally, in the fourth quarter of 2024, our Board of Directors declared a cash dividend of $0.40 per share of common stock, which is payable on December 27, 2024 to stockholders of record on November 29, 2024.
The declaration of dividends is subject to the discretion of our Board of Directors and depends on various factors, including our net income, financial condition, cash requirements, future prospects, and other factors that our Board of Directors deems relevant to its analysis and decision making.
On November 27, 2023, we announced that the Board of Directors approved a share repurchase program authorizing the Company to purchase up to $3.0 billion, exclusive of fees, of the Company’s common stock through December 26, 2026. We are not obligated to repurchase any specific number of shares and the program may be modified, suspended, or discontinued at any time. Under the program, shares may be repurchased in open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), privately negotiated transactions, transactions structured through investment banking institutions, or other means. We purchased no shares during the three months ended September 28, 2024 and 9 million shares during the nine months ended September 28, 2024 and had approximately $2.4 billion remaining authorization under the share repurchase program as of September 28, 2024. The share repurchase program is in addition to our share repurchases to offset the dilutive effect of equity-based compensation.
Aggregate Contractual Obligations:
In the first quarter of 2024, we issued the 2024 Notes, which mature in 2029. See Note 14, Commitments, Contingencies and Debt, in Item 1, Financial Statements, for additional information. There were no other material changes to our aggregate contractual obligations from those disclosed in our Annual Report on Form 10-K for the year ended December 30, 2023.
Supplemental Guarantor Information:
The Kraft Heinz Company (as the “Parent Guarantor”) fully and unconditionally guarantees all the senior unsecured registered notes (collectively, the “KHFC Senior Notes”) issued by KHFC, our 100% owned operating subsidiary (the “Guarantee”). See Note 14, Commitments, Contingencies, and Debt, in Item 1, Financial Statements, and Note 16, Debt, to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 30, 2023 for additional descriptions of these guarantees.
The payment of the principal, interest and premium, when applicable, on the KHFC Senior Notes is fully and unconditionally guaranteed on a senior unsecured basis by the Parent Guarantor, pursuant to the terms and conditions of the applicable indenture. None of the Parent Guarantor’s subsidiaries guarantee the KHFC Senior Notes.
The Guarantee is the Parent Guarantor’s senior unsecured obligation and is: (i) pari passu in right of payment with all of the Parent Guarantor’s existing and future senior indebtedness; (ii) senior in right of payment to all of the Parent Guarantor’s future subordinated indebtedness; (iii) effectively subordinated to all of the Parent Guarantor’s existing and future secured indebtedness to the extent of the value of the assets secured by that indebtedness; and (iv) effectively subordinated to all existing and future indebtedness and other liabilities of the Parent Guarantor’s subsidiaries.
42

The KHFC Senior Notes are obligations exclusively of KHFC and the Parent Guarantor and not of any of the Parent Guarantor’s other subsidiaries. Substantially all of the Parent Guarantor’s operations are conducted through its subsidiaries. The Parent Guarantor’s other subsidiaries are separate legal entities that have no obligation to pay any amounts due under the KHFC Senior Notes or to make any funds available therefor, whether by dividends, loans, or other payments. Except to the extent the Parent Guarantor is a creditor with recognized claims against its subsidiaries, all claims of creditors (including trade creditors) and holders of preferred stock, if any, of its subsidiaries will have priority with respect to the assets of such subsidiaries over its claims (and therefore the claims of its creditors, including holders of the KHFC Senior Notes). Consequently, the KHFC Senior Notes are structurally subordinated to all liabilities of the Parent Guarantor’s subsidiaries and any subsidiaries that it may in the future acquire or establish. The obligations of the Parent Guarantor will terminate and be of no further force or effect in the following circumstances: (i) (a) KHFC’s exercise of its legal defeasance option or, except in the case of a guarantee of any direct or indirect parent of KHFC, covenant defeasance option in accordance with the applicable indenture, or KHFC’s obligations under the applicable indenture have been discharged in accordance with the terms of the applicable indenture or (b) as specified in a supplemental indenture to the applicable indenture; and (ii) the Parent Guarantor has delivered to the trustee an officer’s certificate and an opinion of counsel, each stating that all conditions precedent provided for in the applicable indenture have been complied with. The Guarantee is limited by its terms to an amount not to exceed the maximum amount that can be guaranteed by the Parent Guarantor without rendering the Guarantee voidable under applicable law relating to fraudulent conveyance or fraudulent transfer or similar laws affecting the rights of creditors generally.
The following tables present summarized financial information for the Parent Guarantor and KHFC (as subsidiary issuer of the KHFC Senior Notes) (together, the “Obligor Group”), on a combined basis after the elimination of all intercompany balances and transactions between the Parent Guarantor and subsidiary issuer and investments in any subsidiary that is a non-guarantor.

Summarized Statement of Income
For the Nine Months Ended
September 28, 2024
Net sales$12,552 
Gross profit(a)
4,890 
Intercompany service fees and other recharges3,454 
Operating income/(loss)866 
Equity in earnings/(losses) of subsidiaries489 
Net income/(loss)614 
Net income/(loss) attributable to common shareholders614 
(a)    For the nine months ended September 28, 2024, the Obligor Group recorded $339 million of net sales to the non-guarantor subsidiaries and $50 million of purchases from the non-guarantor subsidiaries.
Summarized Balance Sheets
September 28, 2024December 30, 2023
ASSETS
Current assets$5,014 $4,347 
Current assets due from affiliates(a)
586 529 
Non-current assets5,693 5,665 
Goodwill8,823 8,823 
Intangible assets, net1,909 1,993 
Non-current assets due from affiliates(b)
28 16 
LIABILITIES
Current liabilities$4,391 $4,461 
Current liabilities due to affiliates(a)
1,411 2,055 
Non-current liabilities21,371 21,429 
Non-current liabilities due to affiliates(b)
706 500 
(a)    Represents receivables and short-term lending due from and payables and short-term lending due to non-guarantor subsidiaries.
(b)    Represents long-term lending due from and long-term borrowings due to non-guarantor subsidiaries.
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Commodity Trends
We purchase and use large quantities of commodities, including dairy products, meats, sugar and other sweeteners, tomatoes, edible oils, coffee beans, wheat products, fruits and vegetables, and eggs to manufacture our products. In addition, we purchase and use significant quantities of resins, fiberboard, and cardboard to package our products, and we use electricity, diesel fuel, and natural gas in the manufacturing and distribution of our products. We continuously monitor worldwide supply and cost trends of these commodities.
During the nine months ended September 28, 2024, we experienced lower commodity costs primarily for edible oils, wheat products, meats and eggs, while costs for cheese and dairy, and coffee increased. We manage commodity cost volatility primarily through pricing and risk management strategies including utilizing a range of commodity hedging techniques in an effort to limit the impact of price fluctuations on many of our principal raw materials. However, we do not fully hedge against changes in commodity prices, and our hedging strategies may not protect us from increases in specific raw material costs. As a result of these risk management strategies, our commodity costs may not immediately correlate with market price trends.
See our Annual Report on Form 10-K for the year ended December 30, 2023 for additional information on how we manage commodity costs.
Critical Accounting Estimates
Our significant accounting policies are described in Note 2, Significant Accounting Policies, to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 30, 2023.
We prepare our condensed consolidated financial statements in conformity with U.S. GAAP. The preparation of these financial statements requires the use of estimates, judgments, and assumptions. Our critical accounting estimates and assumptions related to goodwill and intangible assets are described below. See Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, in our Annual Report on Form 10-K for the year ended December 30, 2023 for a discussion of our other critical accounting estimates and assumptions.
Goodwill and Intangible Assets:
As of September 28, 2024, we maintain 12 reporting units, eight of which comprise our goodwill balance. These eight reporting units had an aggregate goodwill carrying amount of $28.9 billion at September 28, 2024. Our indefinite-lived intangible asset balance primarily consists of a number of individual brands, which had an aggregate carrying amount of $38.0 billion as of September 28, 2024.
We test our reporting units and brands for impairment annually, or more frequently if events or circumstances indicate it is more likely than not that the fair value of a reporting unit or brand is less than its carrying amount. Such events and circumstances could include a sustained decrease in our market capitalization, increased competition or unexpected loss of market share, increased input costs beyond projections, disposals of significant brands or components of our business, unexpected business disruptions (for example due to a natural disaster, pandemic, or loss of a customer, supplier, or other significant business relationship), unexpected significant declines in operating results, significant adverse changes in the markets in which we operate, changes in income tax rates, changes in interest rates, or changes in management strategy. We test reporting units for impairment by comparing the estimated fair value of each reporting unit with its carrying amount. We test brands for impairment by comparing the estimated fair value of each brand with its carrying amount. If the carrying amount of a reporting unit or brand exceeds its estimated fair value, we record an impairment loss based on the difference between fair value and carrying amount, in the case of reporting units, not to exceed the associated carrying amount of goodwill. See Note 7, Goodwill and Intangible Assets, in Item 1, Financial Statements, for a discussion of the timing of the annual impairment test.
Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions, estimates, and market factors. Estimating the fair value of individual reporting units and brands requires us to make assumptions and estimates regarding our future plans, as well as industry, economic, and regulatory conditions. These assumptions and estimates include estimated future annual net cash flows (including net sales, cost of products sold, SG&A, depreciation and amortization, working capital, and capital expenditures), income tax considerations, discount rates, growth rates, royalty rates, contributory asset charges, and other market factors. If current expectations of future growth rates and margins are not met, if market factors outside of our control, such as discount rates, market capitalization, income tax rates, foreign currency exchange rates, or inflation, change, or if management’s expectations or plans otherwise change, including updates to our long-term operating plans, then one or more of our reporting units or brands might become impaired in the future. Additionally, any decisions to divest certain non-strategic assets has led and could in the future lead to goodwill or intangible asset impairments.
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As detailed in Note 7, Goodwill and Intangible Assets, in Item 1, Financial Statements, we recorded impairment losses related to goodwill and indefinite-lived intangible assets. Our reporting units and brands that were impaired in 2024 and 2023 were written down to their respective fair values resulting in zero excess fair value over carrying amount as of the applicable impairment test dates. Our reporting units and brands that have 20% or less excess fair value over carrying amount as of the 2024 annual impairment test have a heightened risk of future impairments if any assumptions, estimates, or market factors change in the future.
Reporting units with 10% or less fair value over carrying amount, including reporting units that were impaired as part of the Q3 2024 annual impairment test resulting in zero excess fair value over carrying value, had an aggregate goodwill carrying amount after impairment of $22.5 billion as of the 2024 annual impairment test and included TMS, MC, AFH, CNAC, and Continental Europe. Our Northern Europe reporting unit had 10-20% fair value over carrying amount with an aggregate goodwill carrying amount of $1.7 billion as of the 2024 annual impairment test. Our HD and Asia reporting units had 20-50% fair value over carrying amount with an aggregate goodwill carrying amount of $4.6 billion as of the 2024 annual impairment test. Our reporting units that have less than 5% excess fair value over carrying amount as of the 2024 annual impairment test are considered at a heightened risk of future impairments and include our TMS, Continental Europe, and AFH reporting units, which had an aggregate goodwill carrying amount of $19.1 billion. Our four remaining reporting units had no goodwill carrying amount at the time of the 2024 annual impairment test.
Our brands with 10% or less fair value over carrying amount, comprised entirely of brands that were impaired as part of the Q3 2024 annual test resulting in zero excess fair value over carrying amount, had an aggregate carrying amount of $1.2 billion as of the annual 2024 annual impairment test and included Lunchables, Claussen, and Wattie’s. Brands with 10-20% fair value over carrying amount had an aggregate carrying amount of $16.9 billion as of the 2024 annual impairment test and included A1, Bagel Bites, Kraft, Oscar Mayer, and Velveeta. The aggregate carrying amount of brands with fair value over carrying amount 20-50% was $2.8 billion as of the 2024 annual impairment test. Although the remaining brands, with a carrying amount of $16.9 billion, have more than 50% excess fair value over carrying amount as of the 2024 annual impairment test, these amounts are also susceptible to impairments if any assumptions, estimates, or market factors significantly change in the future. Our brands that have less than 5% excess fair value over carrying value as of the 2024 annual impairment test are considered at a heightened risk of future impairments and include our Lunchables, Classen, and Wattie’s brands which had an aggregate carrying amount of $1.2 billion.
We generally utilize the discounted cash flow method under the income approach to estimate the fair value of our reporting units. Some of the more significant assumptions inherent in estimating the fair values include the estimated future annual net cash flows for each reporting unit (including net sales, cost of products sold, SG&A, depreciation and amortization, working capital, and capital expenditures), income tax rates, long-term growth rates, and a discount rate that appropriately reflects the risks inherent in each future cash flow stream. We selected the assumptions used in the financial forecasts using historical data, supplemented by current and anticipated market conditions, estimated product category growth rates, management’s plans, and guideline companies.
We utilize the excess earnings method under the income approach to estimate the fair value of certain of our largest brands. Some of the more significant assumptions inherent in estimating the fair values include the estimated future annual net cash flows for each brand (including net sales, cost of products sold, and SG&A), contributory asset charges, income tax considerations, long-term growth rates, a discount rate that reflects the level of risk associated with the future earnings attributable to the brand, and management’s intent to invest in the brand indefinitely. We selected the assumptions used in the financial forecasts using historical data, supplemented by current and anticipated market conditions, estimated product category growth rates, management’s plans, and guideline companies.
We utilize the relief from royalty method under the income approach to estimate the fair value of our remaining brands. Some of the more significant assumptions inherent in estimating the fair values include the estimated future annual net sales for each brand, royalty rates (as a percentage of net sales that would hypothetically be charged by a licensor of the brand to an unrelated licensee), income tax considerations, long-term growth rates, a discount rate that reflects the level of risk associated with the future cost savings attributable to the brand, and management’s intent to invest in the brand indefinitely. We selected the assumptions used in the financial forecasts using historical data, supplemented by current and anticipated market conditions, estimated product category growth rates, management’s plans, and guideline companies.
The discount rates, long-term growth rates, and royalty rates used to estimate the fair values of our reporting units and our brands with 20% or less excess fair value over carrying amount, as well as the goodwill or brand carrying amounts, as of the 2024 annual impairment test for each reporting unit and brand were as follows:
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Goodwill or Brands Carrying Amount
(in billions)
Discount RateLong-Term Growth RateRoyalty Rate
MinimumMaximumMinimumMaximumMinimumMaximum
Reporting units$24.2 7.8 %12.0 %1.3 %4.0 %
Brands
(excess earnings method)		14.5 8.3 %8.6 %1.3 %1.8 %
Brands
(relief from royalty method)		3.6 8.4 %9.3 %0.5 %2.0 %4.0 %20.0 %
Assumptions used in impairment testing are made at a point in time and require significant judgment; therefore, they are subject to change based on the facts and circumstances present at each annual and interim impairment test date. Additionally, these assumptions are generally interdependent and do not change in isolation. However, as it is reasonably possible that changes in assumptions could occur, as a sensitivity measure, we have presented the estimated effects of isolated changes in discount rates, long-term growth rates, and royalty rates on the fair values of our reporting units and brands with 20% or less excess fair value over carrying amount. These estimated changes in fair value are not necessarily representative of the actual impairment that would be recorded in the event of a fair value decline.
If we had changed the assumptions used to estimate the fair value of our reporting units and brands with 20% or less excess fair value over carrying amount, as a result of the 2024 annual impairment test for each of these reporting units and brands, these isolated changes, which are reasonably possible to occur, would have led to the following increase/(decrease) in the aggregate fair value of these reporting units and brands (in billions):
Discount RateLong-Term Growth RateRoyalty Rate
50-Basis-Point25-Basis-Point100-Basis-Point
IncreaseDecreaseIncreaseDecreaseIncreaseDecrease
Reporting units$(4.0)$4.7 $2.0 $(1.8)
Brands (excess earnings method)(1.2)1.4 0.5 (0.5)
Brands (relief from royalty method)(0.2)0.3 0.1 (0.1)$0.3 $(0.3)
Definite-lived intangible assets are amortized on a straight-line basis over the estimated periods benefited. We review definite-lived intangible assets for impairment when conditions exist that indicate the carrying amount of the assets may not be recoverable. Such conditions could include significant adverse changes in the business climate, current-period operating or cash flow losses, significant declines in forecasted operations, or a current expectation that an asset group will be disposed of before the end of its useful life. We perform undiscounted operating cash flow analyses to determine if an impairment exists. When testing for impairment of definite-lived intangible assets held for use, we group assets at the lowest level for which cash flows are separately identifiable. If an impairment is determined to exist, the loss is calculated based on estimated fair value. Impairment losses on definite-lived intangible assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal.
See Note 7, Goodwill and Intangible Assets, in Item 1, Financial Statements, for our impairment testing results.
New Accounting Pronouncements
See Note 3, New Accounting Standards, in Item 1, Financial Statements, for a discussion of new accounting pronouncements.
Contingencies
See Note 14, Commitments, Contingencies, and Debt, in Item 1, Financial Statements, for a discussion of our contingencies.
Non-GAAP Financial Measures
The non-GAAP financial measures we provide in this report should be viewed in addition to, and not as an alternative for, results prepared in accordance with U.S. GAAP.
To supplement the condensed consolidated financial statements prepared in accordance with U.S. GAAP, we have presented Organic Net Sales, Adjusted Operating Income, and Adjusted EPS, which are considered non-GAAP financial measures. The non-GAAP financial measures presented may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define these non-GAAP financial measures in the same way. These measures are not substitutes for their comparable U.S. GAAP financial measures, such as net sales, net income/(loss), diluted EPS, or other measures prescribed by U.S. GAAP, and there are limitations to using non-GAAP financial measures.
46

Management uses these non-GAAP financial measures to assist in comparing our performance on a consistent basis for purposes of business decision making by removing the impact of certain items that management believes do not directly reflect our underlying operations. We believe that Organic Net Sales, Adjusted Operating Income, and Adjusted EPS provide important comparability of underlying operating results, allowing investors and management to assess the Company’s operating performance on a consistent basis.
Management believes that presenting our non-GAAP financial measures is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items, (ii) permits investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating our results. We believe that the presentation of these non-GAAP financial measures, when considered together with the corresponding U.S. GAAP financial measures and the reconciliations to those measures, provides investors with additional understanding of the factors and trends affecting our business than could be obtained absent these disclosures.
Organic Net Sales is defined as net sales excluding, when they occur, the impact of currency, acquisitions and divestitures, and a 53rd week of shipments. We calculate the impact of currency on net sales by holding exchange rates constant at the previous year’s exchange rate, with the exception of highly inflationary subsidiaries, for which we calculate the previous year’s results using the current year’s exchange rate.
Adjusted Operating Income is defined as operating income excluding, when they occur, the impacts restructuring activities, deal costs, unrealized gains/(losses) on commodity hedges (the unrealized gains and losses are recorded in general corporate expenses until realized; once realized, the gains and losses are recorded in the applicable segment’s operating results), impairment losses, and certain non-ordinary course legal and regulatory matters.
Adjusted EPS is defined as diluted EPS excluding, when they occur, the impacts of restructuring activities, deal costs, unrealized losses/(gains) on commodity hedges, impairment losses, certain non-ordinary course legal and regulatory matters, losses/(gains) on the sale of a business, other losses/(gains) related to acquisitions and divestitures (e.g., tax and hedging impacts), nonmonetary currency devaluation (e.g., remeasurement gains and losses), debt prepayment and extinguishment (benefit)/costs, and certain significant discrete income tax items (e.g., U.S. and non-U.S. tax reform), and including, when they occur, adjustments to reflect preferred stock dividend payments on an accrual basis.
47

The Kraft Heinz Company
Reconciliation of Net Sales to Organic Net Sales
(dollars in millions)
(Unaudited)
Net SalesCurrencyAcquisitions and DivestituresOrganic Net SalesPriceVolume/Mix
Three Months Ended September 28, 2024
North America$4,826 $(8)$— $4,834 
International Developed Markets882 15 — 867 
Emerging Markets
675 (23)— 698 
Kraft Heinz$6,383 $(16)$— $6,399 
Three Months Ended September 30, 2023
North America$4,995 $— $— $4,995 
International Developed Markets883 — — 883 
Emerging Markets
692 11 16 665 
Kraft Heinz$6,570 $11 $16 $6,543 
Year-over-year growth rates
North America(3.4)%(0.2) pp0.0 pp(3.2)%1.2 pp(4.4) pp
International Developed Markets(0.2)%1.6 pp0.0 pp(1.8)%(1.0) pp(0.8) pp
Emerging Markets
(2.4)%(4.9) pp(2.4) pp4.9 %3.8 pp1.1 pp
Kraft Heinz(2.8)%(0.4) pp(0.2) pp(2.2)%1.2 pp(3.4) pp

48

The Kraft Heinz Company
Reconciliation of Net Sales to Organic Net Sales
(dollars in millions)
(Unaudited)
Net SalesCurrencyAcquisitions and DivestituresOrganic Net SalesPriceVolume/Mix
Nine Months Ended September 28, 2024
North America$14,575 $(15)$— $14,590 
International Developed Markets2,622 10 — 2,612 
Emerging Markets
2,073 (69)12 2,130 
Kraft Heinz$19,270 $(74)$12 $19,332 
Nine Months Ended September 30, 2023
North America$14,959 $— $— $14,959 
International Developed Markets2,675 — — 2,675 
Emerging Markets
2,146 59 50 2,037 
Kraft Heinz$19,780 $59 $50 $19,671 
Year-over-year growth rates
North America(2.6)%(0.1) pp0.0 pp(2.5)%1.6 pp(4.1) pp
International Developed Markets(2.0)%0.4 pp0.0 pp(2.4)%(0.1) pp(2.3) pp
Emerging Markets
(3.4)%(6.1) pp(1.9) pp4.6 %3.3 pp1.3 pp
Kraft Heinz(2.6)%(0.7) pp(0.2) pp(1.7)%1.6 pp(3.3) pp

49

The Kraft Heinz Company
Reconciliation of Operating Income/(Loss) to Adjusted Operating Income
(dollars in millions)
(Unaudited)
For the Three Months EndedFor the Nine Months Ended
September 28, 2024September 30, 2023September 28, 2024September 30, 2023
Operating income/(loss)$(101)$653 $1,723 $3,272 
Restructuring activities— 45 — 25 
Unrealized losses/(gains) on commodity hedges3 (48)(30)(53)
Impairment losses1,428 662 2,282 662 
Certain non-ordinary course legal and regulatory matters— — — 2 
Adjusted Operating Income$1,330 $1,312 $3,975 $3,908 
50

The Kraft Heinz Company
Reconciliation of Diluted EPS to Adjusted EPS
(Unaudited)
For the Three Months EndedFor the Nine Months Ended
September 28, 2024September 30, 2023September 28, 2024September 30, 2023
Diluted EPS$(0.24)$0.21 $0.50 $1.70 
Restructuring activities(a)
— 0.03 — 0.02 
Unrealized losses/(gains) on commodity hedges(b)
— (0.03)(0.02)(0.03)
Impairment losses(c)
0.99 0.50 1.69 0.50 
Losses/(gains) on sale of business(d)
— — 0.05 — 
Nonmonetary currency devaluation(e)
— 0.01 — 0.02 
Certain significant discrete income tax items(f)
— — — (0.01)
Adjusted EPS$0.75 $0.72 $2.22 $2.20 
(a)    Gross expenses/(income) included in restructuring activities was income of $7 million ($5 million after-tax) for the three months and $8 million ($6 million after-tax) for the nine months ended September 28, 2024 and expenses of $45 million ($37 million after-tax) for the three months and $27 million ($22 million after-tax) for the nine months ended September 30, 2023 and were recorded in the following income statement line items:
•Cost of products sold included expenses of $2 million for the nine months ended September 28, 2024 and expenses of $44 million for the three and nine months ended September 30, 2023; and
•SG&A included income of $2 million for the nine months ended September 28, 2024 and expenses of $1 million for the three months and income of $19 million for the nine months ended September 30, 2023.
•Other expense/(income) included income of $7 million for the three months and $8 million for the nine months ended September 28, 2024 and expenses of $2 million for the nine months ended September 30, 2023.
(b)    Gross expenses/(income) included in unrealized losses/(gains) on commodity hedges were expenses of $3 million ($2 million after-tax) for the three months and income of $30 million ($22 million after-tax) for the nine months ended September 28, 2024 and income of $48 million ($36 million after-tax) for the three months and $53 million ($40 million after-tax) for the nine months ended September 30, 2023.
(c)    Gross impairment losses included the following:
•Goodwill impairment losses of $707 million ($659 million after-tax) for the three months and $1.6 billion ($1.5 billion after-tax) for the nine months ended September 28, 2024 and $510 million ($510 million after-tax) for the three and nine months ended September 30, 2023, which were recorded in SG&A;
•Intangible asset impairment losses of $721 million ($541 million after-tax) for the three and nine months ended September 28, 2024 and $152 million ($116 million after-tax) for the three and nine months ended September 30, 2023.
(d)    Gross expenses/(income) included in losses/(gains) on sale of business were expenses of zero ($4 million after-tax) for the three months and expenses of $78 million ($57 million after-tax) for the nine months ended September 28, 2024 and expenses of $2 million ($2 million after-tax) for the nine months ended September 30, 2023, and were recorded in other expense/(income).
(e)    Gross expenses included in nonmonetary currency devaluation were $3 million ($3 million after-tax) for the three months and $7 million ($7 million after-tax) for the nine months ended September 28, 2024 and $9 million ($9 million after-tax) for the three months and $27 million ($27 million after-tax) for the nine months ended September 30, 2023 and were recorded in other expense/(income).
(f)    Certain significant discrete income tax items were a benefit of $17 million for the nine months ended September 30, 2023. The benefit represents the reversal of uncertain tax position reserves related to the U.S. Tax Cuts and Jobs Act resulting from a conclusion of the Internal Revenue Service’s income tax examination for the year 2017 and the lapsing of the statute of limitations for such year.
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Item 3. Quantitative and Qualitative Disclosures About Market Risk.
There have been no material changes to our market risk during the nine months ended September 28, 2024. For additional information, refer to Item 7A, Quantitative and Qualitative Disclosures about Market Risk, in our Annual Report on Form 10-K for the year ended December 30, 2023.
Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of September 28, 2024. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures, as of September 28, 2024, were effective and provided reasonable assurance that the information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting during the three months ended September 28, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
During 2024, we started a multi-year migration of certain of our financial processing systems, including the implementation of a new enterprise resource planning (ERP) solution which will replace our existing ERPs. The implementation is expected to occur in phases throughout our businesses over the next several years, and we anticipate the first phase to be completed in the first half of 2025. We are evaluating the design and operating effectiveness of internal controls as they relate to the system upgrades, and we will implement any required control changes prior to relevant go-live dates associated with the system implementations.
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PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
See Note 14, Commitments, Contingencies, and Debt, in Item 1, Financial Statements.
Item 1A. Risk Factors.
There have been no material changes to the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 30, 2023.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Our share repurchase activity in the three months ended September 28, 2024 was:
 
Total Number
of Shares Purchased(a)
Average Price 
Paid Per Share
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(b)
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions)
6/30/2024 — 8/3/2024
9,950 $32.07 — $2,350 
8/4/2024 — 8/31/2024
13,628 35.94 — 2,350 
9/1/2024 — 9/28/2024
8,876 35.45 — 2,350 
Total32,454 — 
(a)    Represents shares withheld for tax liabilities associated with the vesting of RSUs and PSUs.
(b)    On November 27, 2023, the Company announced that the Board of Directors approved a share repurchase program authorizing the Company to purchase up to $3.0 billion of the Company’s common stock through December 26, 2026. The Company is not obligated to repurchase any specific number of shares and the program may be modified, suspended, or discontinued at any time. Under the program, shares may be repurchased in open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act, privately negotiated transactions, transactions structured through investment banking institutions, or other means.
Item 5. Other Information.
(c) Insider Stock Trading Arrangements: On August 5, 2024, a revocable trust of which Miguel Patricio, a member of the Kraft Heinz Board of Directors, is co-trustee and a beneficiary, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 500,000 shares of Kraft Heinz common stock between November 4, 2024, and August 5, 2026, subject to certain conditions.
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Item 6. Exhibits.
Exhibit No.
Descriptions
10.1
10.2
10.3
22.1
31.1
31.2
32.1
32.2
101.1
The following materials from The Kraft Heinz Company’s Quarterly Report on Form 10-Q for the period ended September 28, 2024 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Equity, (v) the Condensed Consolidated Statements of Cash Flows, (vi) Notes to Condensed Consolidated Financial Statements, and (vii) document and entity information.*
104.1
The cover page from The Kraft Heinz Company’s Quarterly Report on Form 10-Q for the three months ended September 28, 2024, formatted in inline XBRL.*
+Indicates a management contract or compensatory plan or arrangement.
*Filed herewith.
**Furnished herewith.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
The Kraft Heinz Company
Date:
October 30, 2024
By:/s/ Andre Maciel
Andre Maciel
Executive Vice President and Global Chief Financial Officer
(Duly Authorized Officer and Principal Financial Officer)
The Kraft Heinz Company
Date:
October 30, 2024
By:/s/ Chris Asher
Chris Asher
Deputy Global Controller
(Principal Accounting Officer)
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