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EX-10.1 - EX-10.1 - Kraft Heinz Co | d736701dex101.htm |
8-K - 8-K - Kraft Heinz Co | d736701d8k.htm |
Exhibit 99.1
SUPPLEMENTAL HISTORICAL SEGMENT FINANCIAL INFORMATION AND SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
Table of Contents
Page No. | ||||
Introduction |
1 | |||
Results of Operations by Segment |
2 | |||
Non-GAAP Financial Measures |
3 |
Unless the context otherwise requires, the terms we, us, our, Kraft Heinz, and the Company each refer to The Kraft Heinz Company.
Forward-Looking Statements
This supplemental information contains a number of forward-looking statements. Words such as anticipate, reflect, invest, see, make, expect, give, deliver, drive, believe, improve, assess, reassess, remain, evaluate, grow, will, plan, intend, and variations of such words and similar future or conditional expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding our plans, impacts of accounting standards and guidance, growth, legal matters, taxes, costs and cost savings, impairments, and dividends. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties, many of which are difficult to predict and beyond our control.
Important factors that may affect our business and operations and that may cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, operating in a highly competitive industry; our ability to correctly predict, identify, and interpret changes in consumer preferences and demand, to offer new products to meet those changes, and to respond to competitive innovation; changes in the retail landscape or the loss of key retail customers; changes in our relationships with significant customers, suppliers, and other business relationships; our ability to maintain, extend, and expand our reputation and brand image; our ability to leverage our brand value to compete against private label products; our ability to drive revenue growth in our key product categories, increase our market share, or add products that are in faster-growing and more profitable categories; product recalls or product liability claims; unanticipated business disruptions; our ability to identify, complete, or realize the benefits from strategic acquisitions, alliances, divestitures, joint ventures, or other investments; our ability to realize the anticipated benefits from prior or future streamlining actions to reduce fixed costs, simplify or improve processes, and improve our competitiveness; our ability to successfully execute our strategic initiatives; the impacts of our international operations; economic and political conditions in the United States and in various other nations where we do business; changes in our management team or other key personnel and our ability to hire or retain key personnel or a highly skilled and diverse global workforce; risks associated with information technology and systems, including service interruptions, misappropriation of data, or breaches of security; impacts of natural events in the locations in which we or our customers, suppliers, distributors, or regulators operate; our ownership structure; our indebtedness and ability to pay such indebtedness, as well as our ability to comply with covenants under our debt instruments; additional impairments of the carrying amounts of goodwill or other indefinite-lived intangible assets; foreign exchange rate fluctuations; volatility in commodity, energy, and other input costs; volatility in the market value of all or a portion of the commodity derivatives we use; increased pension, labor and people-related expenses; compliance with laws, regulations, and related interpretations and related legal claims or other regulatory enforcement actions, including additional risks and uncertainties related to any potential actions resulting from the Securities and Exchange Commissions ongoing investigation, as well as potential additional subpoenas, litigation, and regulatory proceedings; an inability to remediate the material weaknesses in our internal control over financial reporting or additional material weaknesses or other deficiencies in the future or the failure to maintain an effective system of internal controls; our failure to prepare and timely file our periodic reports; the restatement of certain of our previously issued consolidated financial statements, which resulted in unanticipated costs and may affect investor confidence and raise reputational issues; our ability to protect intellectual property rights; tax law changes or interpretations; the impact of future sales of our common stock in the public markets; our ability to continue to pay a regular dividend and the amounts of any such dividends; volatility of capital markets and other macroeconomic factors; a downgrade in our credit rating; and other factors. For additional information on these and other factors that could affect our forward-looking statements, see Item 1A, Risk Factors, disclosed in our Annual Report on Form 10-K for the year ended December 28, 2019. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this report, except as required by applicable law or regulation.
Introduction
Background:
In the first quarter of our fiscal year 2020, we reorganized our segments. For informational purposes only, we have furnished this exhibit to present the effects of these changes to certain previously disclosed financial information, including certain unaudited information related to our results of operations by segment and non-GAAP financial measures, for the years ended December 28, 2019, December 29, 2018, and December 30, 2017, as well as for each of the three months ended March 30, 2019, June 29, 2019, September 28, 2019, and December 28, 2019. The segment reorganization in the first quarter of our fiscal year 2020 had no impact on our consolidated financial statements for any of the periods presented in our Annual Report on Form 10-K for the year ended December 28, 2019 (2019 Form 10-K) filed on February 14, 2020.
The following unaudited financial information is based on our historical financial statements after giving effect to the segment reorganization in the first quarter of our fiscal year 2020. You should read this report in conjunction with our audited consolidated financial statements and related notes in our 2019 Form 10-K. The financial information contained in this report is not indicative of future or annual results.
Segment Changes:
As previously described in our 2019 Form 10-K, prior to the reorganization of our segments in the first quarter of our fiscal year 2020, we managed and reported our operating results through four segments. We had three reportable segments defined by geographic region: United States, Canada, and Europe, Middle East, and Africa (EMEA). Our remaining businesses were combined and disclosed as Rest of World. Rest of World comprised two operating segments: Latin America and Asia Pacific (APAC).
During the third quarter of our fiscal year 2019, certain organizational changes were announced that impacted our fiscal year 2020 internal reporting and reportable segments. As a result of these changes, we combined our EMEA, Latin America, and APAC zones to form the International zone. In addition, we moved our Puerto Rico business from the Latin America zone to the United States zone to consolidate and streamline the management of our product categories and supply chain.
Therefore, effective in the first quarter of 2020, we manage and report our operating results through three reportable segments defined by geographic region: United States, International, and Canada.
1
Results of Operations by Segment
In this supplemental information, we disclose 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 from GAAP financial measures see the Non-GAAP Financial Measures section.
Management evaluates segment performance based on several factors, including net sales, Organic Net Sales, and Segment Adjusted EBITDA. Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section for additional information. Segment Adjusted EBITDA is defined as net income/(loss) from continuing operations before interest expense, other expense/(income), provision for/(benefit from) income taxes, and depreciation and amortization (excluding integration and restructuring expenses); in addition to these adjustments, we exclude, when they occur, the impacts of integration and restructuring expenses, 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 segments operating results), impairment losses, and equity award compensation expense (excluding integration and restructuring expenses). Segment Adjusted EBITDA is a tool 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.
2019 compared to 2018 | 2018 compared to 2017 | |||||||||||||||
For the Year Ended | ||||||||||||||||
December 28, 2019 |
December 29, 2018 |
December 29, 2018 |
December 30, 2017 |
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(in millions) | ||||||||||||||||
United States |
||||||||||||||||
Net sales |
$ | 17,844 | $ | 18,218 | $ | 18,218 | $ | 18,324 | ||||||||
Organic Net Sales(a) |
17,844 | 18,218 | 18,218 | 18,324 | ||||||||||||
Segment Adjusted EBITDA |
4,829 | 5,242 | 5,242 | 5,898 | ||||||||||||
International |
||||||||||||||||
Net sales |
5,251 | 5,877 | 5,877 | 5,575 | ||||||||||||
Organic Net Sales(a) |
5,417 | 5,443 | 5,533 | 5,210 | ||||||||||||
Segment Adjusted EBITDA |
1,004 | 1,335 | 1,335 | 1,238 | ||||||||||||
Canada |
||||||||||||||||
Net sales |
1,882 | 2,173 | 2,173 | 2,177 | ||||||||||||
Organic Net Sales(a) |
1,700 | 1,732 | 1,735 | 1,747 | ||||||||||||
Segment Adjusted EBITDA |
487 | 608 | 608 | 636 | ||||||||||||
(a) This is a non-GAAP financial measure. See the Non-GAAP Financial Measures section for more information.
For the Three Months Ended | ||||||||||||||||
March 30, 2019 |
June 29, 2019 |
September 28, 2019 |
December 28, 2019 |
|||||||||||||
(in millions) | ||||||||||||||||
United States |
||||||||||||||||
Net sales |
$ | 4,224 | $ | 4,533 | $ | 4,385 | $ | 4,702 | ||||||||
Organic Net Sales(a) |
4,224 | 4,533 | 4,385 | 4,702 | ||||||||||||
Segment Adjusted EBITDA |
1,139 | 1,257 | 1,160 | 1,273 | ||||||||||||
International |
||||||||||||||||
Net sales |
1,285 | 1,313 | 1,276 | 1,377 | ||||||||||||
Organic Net Sales(a) |
1,327 | 1,383 | 1,313 | 1,394 | ||||||||||||
Segment Adjusted EBITDA |
238 | 267 | 260 | 239 | ||||||||||||
Canada |
||||||||||||||||
Net sales |
450 | 560 | 415 | 457 | ||||||||||||
Organic Net Sales(a) |
376 | 450 | 418 | 456 | ||||||||||||
Segment Adjusted EBITDA |
121 | 143 | 107 | 116 | ||||||||||||
(a) This is a non-GAAP financial measure. See the Non-GAAP Financial Measures section for more information.
2
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 consolidated financial statements prepared in accordance with U.S. GAAP, we have presented Organic Net Sales, Adjusted EBITDA, and Constant Currency Adjusted EBITDA, 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), or other measures prescribed by U.S. GAAP, and there are limitations to using non-GAAP financial measures.
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. Management believes that presenting our non-GAAP financial measures (i.e., Organic Net Sales, Adjusted EBITDA, and Constant Currency Adjusted EBITDA) 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 years exchange rate, with the exception of highly inflationary subsidiaries, for which we calculate the previous years results using the current years exchange rate. Organic Net Sales is a tool 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.
Adjusted EBITDA is defined as net income/(loss) from continuing operations before interest expense, other expense/(income), provision for/(benefit from) income taxes, and depreciation and amortization (excluding integration and restructuring expenses); in addition to these adjustments, we exclude, when they occur, the impacts of integration and restructuring expenses, deal costs, unrealized losses/(gains) on commodity hedges, impairment losses, and equity award compensation expense (excluding integration and restructuring expenses). We also present Adjusted EBITDA on a constant currency basis. We calculate the impact of currency on Adjusted EBITDA by holding exchange rates constant at the previous years exchange rate, with the exception of highly inflationary subsidiaries, for which we calculate the previous years results using the current years exchange rate. Adjusted EBITDA and Constant Currency Adjusted EBITDA are tools 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.
3
The Kraft Heinz Company
Reconciliation of Net Sales to Organic Net Sales
For the Year Ended
(dollars in millions)
(Unaudited)
Net Sales | Impact of Currency |
Acquisitions and Divestitures |
Organic Net Sales |
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December 28, 2019 |
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United States |
$ | 17,844 | $ | | $ | | $ | 17,844 | ||||||||
International |
5,251 | (217) | 51 | 5,417 | ||||||||||||
Canada |
1,882 | (45) | 227 | 1,700 | ||||||||||||
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Kraft Heinz |
$ | 24,977 | $ | (262) | $ | 278 | $ | 24,961 | ||||||||
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December 29, 2018 |
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United States |
$ | 18,218 | $ | | $ | | $ | 18,218 | ||||||||
International |
5,877 | 243 | 191 | 5,443 | ||||||||||||
Canada |
2,173 | | 441 | 1,732 | ||||||||||||
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Kraft Heinz |
$ | 26,268 | $ | 243 | $ | 632 | $ | 25,393 | ||||||||
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Year-over-year growth rates |
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United States |
(2.0)% | 0.0 pp | 0.0 pp | (2.0)% | ||||||||||||
International |
(10.6)% | (7.6) pp | (2.5) pp | (0.5)% | ||||||||||||
Canada |
(13.4)% | (2.1) pp | (9.4) pp | (1.9)% | ||||||||||||
Kraft Heinz |
(4.9)% | (1.9) pp | (1.3) pp | (1.7)% |
4
The Kraft Heinz Company
Reconciliation of Net Sales to Organic Net Sales
For the Year Ended
(dollars in millions)
(Unaudited)
Net Sales | Impact of Currency |
Acquisitions and Divestitures |
Organic Net Sales |
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December 29, 2018 |
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United States |
$ | 18,218 | $ | | $ | | $ | 18,218 | ||||||||
International |
5,877 | (9) | 353 | 5,533 | ||||||||||||
Canada |
2,173 | (5) | 443 | 1,735 | ||||||||||||
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Kraft Heinz |
$ | 26,268 | $ | (14) | $ | 796 | $ | 25,486 | ||||||||
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December 30, 2017 |
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United States |
$ | 18,324 | $ | | $ | | $ | 18,324 | ||||||||
International |
5,575 | 144 | 221 | 5,210 | ||||||||||||
Canada |
2,177 | | 430 | 1,747 | ||||||||||||
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Kraft Heinz |
$ | 26,076 | $ | 144 | $ | 651 | $ | 25,281 | ||||||||
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Year-over-year growth rates |
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United States |
(0.6)% | 0.0 pp | 0.0 pp | (0.6)% | ||||||||||||
International |
5.4% | (3.0) pp | 2.2 pp | 6.2% | ||||||||||||
Canada |
(0.2)% | (0.3) pp | 0.7 pp | (0.6)% | ||||||||||||
Kraft Heinz |
0.7% | (0.6) pp | 0.5 pp | 0.8% |
5
The Kraft Heinz Company
Reconciliation of Net Sales to Organic Net Sales
For the Three Months Ended
(dollars in millions)
(Unaudited)
Net Sales | Impact of Currency |
Acquisitions and Divestitures |
Organic Net Sales |
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March 30, 2019 |
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United States |
$ | 4,224 | $ | | $ | | $ | 4,224 | ||||||||
International |
1,285 | (93) | 51 | 1,327 | ||||||||||||
Canada |
450 | (21) | 95 | 376 | ||||||||||||
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Kraft Heinz |
$ | 5,959 | $ | (114) | $ | 146 | $ | 5,927 | ||||||||
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March 31, 2018 |
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United States |
$ | 4,387 | $ | | $ | | $ | 4,387 | ||||||||
International |
1,433 | 39 | 68 | 1,326 | ||||||||||||
Canada |
484 | | 93 | 391 | ||||||||||||
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Kraft Heinz |
$ | 6,304 | $ | 39 | $ | 161 | $ | 6,104 | ||||||||
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Year-over-year growth rates |
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United States |
(3.7)% | 0.0 pp | 0.0 pp | (3.7)% | ||||||||||||
International |
(10.4)% | (9.1) pp | (1.3) pp | % | ||||||||||||
Canada |
(7.0)% | (4.5) pp | 1.3 pp | (3.8)% | ||||||||||||
Kraft Heinz |
(5.5)% | (2.4) pp | (0.2) pp | (2.9)% |
6
The Kraft Heinz Company
Reconciliation of Net Sales to Organic Net Sales
For the Three Months Ended
(dollars in millions)
(Unaudited)
Net Sales | Impact of Currency |
Acquisitions and Divestitures |
Organic Net Sales |
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June 29, 2019 |
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United States |
$ | 4,533 | $ | | $ | | $ | 4,533 | ||||||||
International |
1,313 | (70) | | 1,383 | ||||||||||||
Canada |
560 | (21) | 131 | 450 | ||||||||||||
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Kraft Heinz |
$ | 6,406 | $ | (91) | $ | 131 | $ | 6,366 | ||||||||
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June 30, 2018 |
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United States |
$ | 4,538 | $ | | $ | | $ | 4,538 | ||||||||
International |
1,588 | 101 | 74 | 1,413 | ||||||||||||
Canada |
564 | | 111 | 453 | ||||||||||||
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Kraft Heinz |
$ | 6,690 | $ | 101 | $ | 185 | $ | 6,404 | ||||||||
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Year-over-year growth rates |
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United States |
(0.1)% | 0.0 pp | 0.0 pp | (0.1)% | ||||||||||||
International |
(17.2)% | (10.3) pp | (4.9) pp | (2.0)% | ||||||||||||
Canada |
(0.7)% | (3.6) pp | 3.8 pp | (0.9)% | ||||||||||||
Kraft Heinz |
(4.2)% | (2.8) pp | (0.8) pp | (0.6)% |
7
The Kraft Heinz Company
Reconciliation of Net Sales to Organic Net Sales
For the Three Months Ended
(dollars in millions)
(Unaudited)
Net Sales | Impact of Currency |
Acquisitions and Divestitures |
Organic Net Sales |
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September 28, 2019 |
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United States |
$ | 4,385 | $ | | $ | | $ | 4,385 | ||||||||
International |
1,276 | (37) | | 1,313 | ||||||||||||
Canada |
415 | (4) | 1 | 418 | ||||||||||||
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Kraft Heinz |
$ | 6,076 | $ | (41) | $ | 1 | $ | 6,116 | ||||||||
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September 29, 2018 |
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United States |
$ | 4,457 | $ | | $ | | $ | 4,457 | ||||||||
International |
1,401 | 71 | 23 | 1,307 | ||||||||||||
Canada |
525 | | 104 | 421 | ||||||||||||
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Kraft Heinz |
$ | 6,383 | $ | 71 | $ | 127 | $ | 6,185 | ||||||||
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Year-over-year growth rates |
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United States |
(1.6)% | 0.0 pp | 0.0 pp | (1.6)% | ||||||||||||
International |
(8.9)% | (7.6) pp | (1.8) pp | 0.5% | ||||||||||||
Canada |
(21.1)% | (0.8) pp | (19.8) pp | (0.5)% | ||||||||||||
Kraft Heinz |
(4.8)% | (1.7) pp | (2.0) pp | (1.1)% |
8
The Kraft Heinz Company
Reconciliation of Net Sales to Organic Net Sales
For the Three Months Ended
(dollars in millions)
(Unaudited)
Net Sales | Impact of Currency |
Acquisitions and Divestitures |
Organic Net Sales |
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December 28, 2019 |
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United States |
$ | 4,702 | $ | | $ | | $ | 4,702 | ||||||||
International |
1,377 | (17) | | 1,394 | ||||||||||||
Canada |
457 | 1 | | 456 | ||||||||||||
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Kraft Heinz |
$ | 6,536 | $ | (16) | $ | | $ | 6,552 | ||||||||
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December 29, 2018 |
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United States |
$ | 4,836 | $ | | $ | | $ | 4,836 | ||||||||
International |
1,455 | 32 | 26 | 1,397 | ||||||||||||
Canada |
600 | | 133 | 467 | ||||||||||||
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Kraft Heinz |
$ | 6,891 | $ | 32 | $ | 159 | $ | 6,700 | ||||||||
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Year-over-year growth rates |
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United States |
(2.8)% | 0.0 pp | 0.0 pp | (2.8)% | ||||||||||||
International |
(5.4)% | (3.3) pp | (1.8) pp | (0.3)% | ||||||||||||
Canada |
(23.8)% | 0.1 pp | (21.4) pp | (2.5)% | ||||||||||||
Kraft Heinz |
(5.1)% | (0.6) pp | (2.3) pp | (2.2)% |
9
The Kraft Heinz Company
Reconciliation of Net Income/(Loss) to Adjusted EBITDA
For the Year Ended
(dollars in millions)
(Unaudited)
December 28, 2019 |
December 29, 2018 |
December 30, 2017 |
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Net income/(loss) |
$ | 1,933 | $ | (10,254) | $ | 10,932 | ||||||
Interest expense |
1,361 | 1,284 | 1,234 | |||||||||
Other expense/(income) |
(952) | (168) | (627) | |||||||||
Provision for/(benefit from) income taxes |
728 | (1,067) | (5,482) | |||||||||
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Operating income/(loss) |
3,070 | (10,205) | 6,057 | |||||||||
Depreciation and amortization (excluding integration and restructuring expenses) |
985 | 919 | 907 | |||||||||
Integration and restructuring expenses |
102 | 297 | 583 | |||||||||
Deal costs |
19 | 23 | | |||||||||
Unrealized losses/(gains) on commodity hedges |
(57) | 21 | 19 | |||||||||
Impairment losses |
1,899 | 15,936 | 49 | |||||||||
Equity award compensation expense (excluding integration and restructuring expenses) |
46 | 33 | 49 | |||||||||
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Adjusted EBITDA |
$ | 6,064 | $ | 7,024 | $ | 7,664 | ||||||
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10
The Kraft Heinz Company
Reconciliation of Net Income/(Loss) to Adjusted EBITDA
For the Three Months Ended
(dollars in millions)
(Unaudited)
March 30, 2019 |
June 29, 2019 |
September 28, 2019 |
December 28, 2019 |
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Net income/(loss) |
$ | 404 | $ | 448 | $ | 898 | $ | 183 | ||||||||
Interest expense |
321 | 316 | 398 | 326 | ||||||||||||
Other expense/(income) |
(380) | (133) | (380) | (59) | ||||||||||||
Provision for/(benefit from) income taxes |
217 | 103 | 264 | 144 | ||||||||||||
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Operating income/(loss) |
562 | 734 | 1,180 | 594 | ||||||||||||
Depreciation and amortization (excluding integration and restructuring expenses) |
234 | 253 | 243 | 255 | ||||||||||||
Integration and restructuring expenses |
27 | 14 | 15 | 46 | ||||||||||||
Deal costs |
8 | 5 | 6 | | ||||||||||||
Unrealized losses/(gains) on commodity hedges |
(29) | (10) | 9 | (27) | ||||||||||||
Impairment losses |
620 | 598 | 5 | 676 | ||||||||||||
Equity award compensation expense (excluding integration and restructuring expenses) |
9 | 6 | 11 | 20 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA |
$ | 1,431 | $ | 1,600 | $ | 1,469 | $ | 1,564 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
11
The Kraft Heinz Company
Reconciliation of Net Income/(Loss) to Adjusted EBITDA
For the Three Months Ended
(dollars in millions)
(Unaudited)
March 31, 2018 |
June 30, 2018 |
September 29, 2018 |
December 29, 2018 |
|||||||||||||
Net income/(loss) |
$ | 1,003 | $ | 753 | $ | 618 | $ | (12,628) | ||||||||
Interest expense |
317 | 316 | 326 | 325 | ||||||||||||
Other expense/(income) |
(90) | (20) | (71) | 13 | ||||||||||||
Provision for/(benefit from) income taxes |
270 | 308 | 201 | (1,846) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income/(loss) |
1,500 | 1,357 | 1,074 | (14,136) | ||||||||||||
Depreciation and amortization (excluding integration and restructuring expenses) |
199 | 235 | 245 | 240 | ||||||||||||
Integration and restructuring expenses |
90 | 93 | 32 | 82 | ||||||||||||
Deal costs |
9 | 7 | 3 | 4 | ||||||||||||
Unrealized losses/(gains) on commodity hedges |
2 | 3 | 6 | 10 | ||||||||||||
Impairment losses |
| 234 | 217 | 15,485 | ||||||||||||
Equity award compensation expense (excluding integration and restructuring expenses) |
7 | 20 | 17 | (11) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA |
$ | 1,807 | $ | 1,949 | $ | 1,594 | $ | 1,674 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
12
The Kraft Heinz Company
Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA
For the Year Ended
(dollars in millions)
(Unaudited)
Adjusted EBITDA | Impact of Currency | Constant Currency Adjusted EBITDA |
||||||||||
December 28, 2019 |
||||||||||||
United States |
$ | 4,829 | $ | | $ | 4,829 | ||||||
International |
1,004 | (38) | 1,042 | |||||||||
Canada |
487 | (12) | 499 | |||||||||
General corporate expenses |
(256) | 4 | (260) | |||||||||
|
|
|
|
|
|
|||||||
Kraft Heinz |
$ | 6,064 | $ | (46) | $ | 6,110 | ||||||
|
|
|
|
|
|
|||||||
December 29, 2018 |
||||||||||||
United States |
$ | 5,242 | $ | | $ | 5,242 | ||||||
International |
1,335 | 170 | 1,165 | |||||||||
Canada |
608 | | 608 | |||||||||
General corporate expenses |
(161) | | (161) | |||||||||
|
|
|
|
|
|
|||||||
Kraft Heinz |
$ | 7,024 | $ | 170 | $ | 6,854 | ||||||
|
|
|
|
|
|
|||||||
Year-over-year growth rates |
||||||||||||
United States |
(7.9)% | 0.0 pp | (7.9)% | |||||||||
International |
(24.8)% | (14.3) pp | (10.5)% | |||||||||
Canada |
(19.9)% | (1.9) pp | (18.0)% | |||||||||
General corporate expenses |
58.6% | (2.5) pp | 61.1% | |||||||||
Kraft Heinz |
(13.7)% | (2.8) pp | (10.9)% | |||||||||
13
The Kraft Heinz Company
Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA
For the Year Ended
(dollars in millions)
(Unaudited)
Adjusted EBITDA | Impact of Currency | Constant Currency Adjusted EBITDA |
||||||||||
December 29, 2018 |
||||||||||||
United States |
$ | 5,242 | $ | | $ | 5,242 | ||||||
International |
1,335 | 15 | 1,320 | |||||||||
Canada |
608 | (2) | 610 | |||||||||
General corporate expenses |
(161) | (2) | (159) | |||||||||
|
|
|
|
|
|
|||||||
Kraft Heinz |
$ | 7,024 | $ | 11 | $ | 7,013 | ||||||
|
|
|
|
|
|
|||||||
December 30, 2017 |
||||||||||||
United States |
$ | 5,898 | $ | | $ | 5,898 | ||||||
International |
1,238 | 56 | 1,182 | |||||||||
Canada |
636 | | 636 | |||||||||
General corporate expenses |
(108) | | (108) | |||||||||
|
|
|
|
|
|
|||||||
Kraft Heinz |
$ | 7,664 | $ | 56 | $ | 7,608 | ||||||
|
|
|
|
|
|
|||||||
Year-over-year growth rates |
||||||||||||
United States |
(11.1)% | 0.0 pp | (11.1)% | |||||||||
International |
7.9% | (3.8) pp | 11.7% | |||||||||
Canada |
(4.4)% | (0.3) pp | (4.1)% | |||||||||
General corporate expenses |
48.6% | 1.9 pp | 46.7% | |||||||||
Kraft Heinz |
(8.3)% | (0.5) pp | (7.8)% |
14
The Kraft Heinz Company
Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA
For the Three Months Ended
(dollars in millions)
(Unaudited)
Adjusted EBITDA | Impact of Currency | Constant Currency Adjusted EBITDA |
||||||||||
March 30, 2019 |
||||||||||||
United States |
$ | 1,139 | $ | | $ | 1,139 | ||||||
International |
238 | (17) | 255 | |||||||||
Canada |
121 | (6) | 127 | |||||||||
General corporate expenses |
(67) | 2 | (69) | |||||||||
|
|
|
|
|
|
|||||||
Kraft Heinz |
$ | 1,431 | $ | (21) | $ | 1,452 | ||||||
|
|
|
|
|
|
|||||||
March 31, 2018 |
||||||||||||
United States |
$ | 1,396 | $ | | $ | 1,396 | ||||||
International |
322 | 25 | 297 | |||||||||
Canada |
134 | | 134 | |||||||||
General corporate expenses |
(45) | | (45) | |||||||||
|
|
|
|
|
|
|||||||
Kraft Heinz |
$ | 1,807 | $ | 25 | $ | 1,782 | ||||||
|
|
|
|
|
|
|||||||
Year-over-year growth rates |
||||||||||||
United States |
(18.4)% | 0.0 pp | (18.4)% | |||||||||
International |
(25.9)% | (11.6) pp | (14.3)% | |||||||||
Canada |
(10.3)% | (4.3) pp | (6.0)% | |||||||||
General corporate expenses |
48.2% | (2.5) pp | 50.7% | |||||||||
Kraft Heinz |
(20.8)% | (2.3) pp | (18.5)% |
15
The Kraft Heinz Company
Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA
For the Three Months Ended
(dollars in millions)
(Unaudited)
Adjusted EBITDA | Impact of Currency | Constant Currency Adjusted EBITDA |
||||||||||
June 29, 2019 |
||||||||||||
United States |
$ | 1,257 | $ | | $ | 1,257 | ||||||
International |
267 | (14) | 281 | |||||||||
Canada |
143 | (5) | 148 | |||||||||
General corporate expenses |
(67) | 1 | (68) | |||||||||
|
|
|
|
|
|
|||||||
Kraft Heinz |
$ | 1,600 | $ | (18) | $ | 1,618 | ||||||
|
|
|
|
|
|
|||||||
June 30, 2018 |
||||||||||||
United States |
$ | 1,408 | $ | | $ | 1,408 | ||||||
International |
412 | 76 | 336 | |||||||||
Canada |
173 | | 173 | |||||||||
General corporate expenses |
(44) | | (44) | |||||||||
|
|
|
|
|
|
|||||||
Kraft Heinz |
$ | 1,949 | $ | 76 | $ | 1,873 | ||||||
|
|
|
|
|
|
|||||||
Year-over-year growth rates |
||||||||||||
United States |
(10.7)% | 0.0 pp | (10.7)% | |||||||||
International |
(35.3)% | (18.8) pp | (16.5)% | |||||||||
Canada |
(17.0)% | (2.8) pp | (14.2)% | |||||||||
General corporate expenses |
51.9% | (2.7) pp | 54.6% | |||||||||
Kraft Heinz |
(17.9)% | (4.3) pp | (13.6)% |
16
The Kraft Heinz Company
Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA
For the Three Months Ended
(dollars in millions)
(Unaudited)
Adjusted EBITDA | Impact of Currency | Constant Currency Adjusted EBITDA |
||||||||||
September 28, 2019 |
||||||||||||
United States |
$ | 1,160 | $ | | $ | 1,160 | ||||||
International |
260 | (8) | 268 | |||||||||
Canada |
107 | (1) | 108 | |||||||||
General corporate expenses |
(58) | 1 | (59) | |||||||||
|
|
|
|
|
|
|||||||
Kraft Heinz |
$ | 1,469 | $ | (8) | $ | 1,477 | ||||||
|
|
|
|
|
|
|||||||
September 29, 2018 |
||||||||||||
United States |
$ | 1,182 | $ | | $ | 1,182 | ||||||
International |
307 | 46 | 261 | |||||||||
Canada |
144 | | 144 | |||||||||
General corporate expenses |
(39) | | (39) | |||||||||
|
|
|
|
|
|
|||||||
Kraft Heinz |
$ | 1,594 | $ | 46 | $ | 1,548 | ||||||
|
|
|
|
|
|
|||||||
Year-over-year growth rates |
||||||||||||
United States |
(1.8)% | 0.0 pp | (1.8)% | |||||||||
International |
(15.4)% | (18.0) pp | 2.6% | |||||||||
Canada |
(25.7)% | (0.8) pp | (24.9)% | |||||||||
General corporate expenses |
49.8% | (2.8) pp | 52.6% | |||||||||
Kraft Heinz |
(7.8)% | (3.2) pp | (4.6)% |
17
The Kraft Heinz Company
Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA
For the Three Months Ended
(dollars in millions)
(Unaudited)
Adjusted EBITDA | Impact of Currency | Constant Currency Adjusted EBITDA |
||||||||||
December 28, 2019 |
||||||||||||
United States |
$ | 1,273 | $ | | $ | 1,273 | ||||||
International |
239 | 1 | 238 | |||||||||
Canada |
116 | | 116 | |||||||||
General corporate expenses |
(64) | | (64) | |||||||||
|
|
|
|
|
|
|||||||
Kraft Heinz |
$ | 1,564 | $ | 1 | $ | 1,563 | ||||||
|
|
|
|
|
|
|||||||
December 29, 2018 |
||||||||||||
United States |
$ | 1,256 | $ | | $ | 1,256 | ||||||
International |
294 | 23 | 271 | |||||||||
Canada |
157 | | 157 | |||||||||
General corporate expenses |
(33) | | (33) | |||||||||
|
|
|
|
|
|
|||||||
Kraft Heinz |
$ | 1,674 | $ | 23 | $ | 1,651 | ||||||
|
|
|
|
|
|
|||||||
Year-over-year growth rates |
||||||||||||
United States |
1.3% | 0.0 pp | 1.3% | |||||||||
International |
(18.6)% | (7.0) pp | (11.6)% | |||||||||
Canada |
(26.1)% | 0.2 pp | (26.3)% | |||||||||
General corporate expenses |
92.2% | (2.2) pp | 94.4% | |||||||||
Kraft Heinz |
(6.6)% | (1.3) pp | (5.3)% |
18