Kraft Heinz Co Files 2023 Annual Report on Form 10-K

TL;DR

<b>Kraft Heinz Co has filed its 2023 10-K report detailing financial performance and position for the fiscal year ending December 30, 2023.</b>

AI Summary

Kraft Heinz Co (KHC) filed a Annual Report (10-K) with the SEC on February 15, 2024. Kraft Heinz Co filed its 2023 Form 10-K on February 15, 2024, reporting for the fiscal year ending December 30, 2023. The filing covers the period from January 1, 2023, to December 30, 2023. Key financial statement items referenced include Revenue from Contract with Customer, Cost of Goods and Services Sold, Selling General and Administrative Expense, Interest Expense, and Other Nonoperating Income/Expense. The company's fiscal year end is December 30. The filing includes references to various balance sheet accounts such as Other Assets Noncurrent, Other Liabilities Current, Long-Term Debt and Capital Lease Obligations Current, and Other Liabilities Noncurrent.

Why It Matters

For investors and stakeholders tracking Kraft Heinz Co, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Kraft Heinz's financial health and operational results for the 2023 fiscal year, crucial for investors and stakeholders to assess performance and future outlook. The detailed financial information within the report, including revenue, expenses, and debt obligations, is essential for understanding the company's strategic direction and its ability to manage its business effectively.

Risk Assessment

Risk Level: — Kraft Heinz Co shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine annual report. While it contains detailed financial information, it does not immediately signal any significant new risks or positive developments beyond what is typical for a large public company's annual disclosure.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Kraft Heinz's performance and strategic positioning for the upcoming fiscal year.

Key Numbers

• 2023-12-30 — Fiscal Year End (The end date of the reporting period)
• 2024-02-15 — Filing Date (The date the 10-K was submitted to the SEC)

Key Players & Entities

• Kraft Heinz Co (company) — Filer of the 10-K report
• H.J. Heinz Holding Corp (company) — Former company name
• 2023 (date) — Fiscal year for the report
• 2024-02-15 (date) — Filing date
• 2023-12-30 (date) — Fiscal year end date

FAQ

Industry Context

Kraft Heinz operates in the food and beverage industry, a sector characterized by established brands, consumer preferences, and supply chain dynamics.

Regulatory Implications

The filing is made in accordance with the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures to the SEC.

What Investors Should Do

1. Analyze the revenue and cost of goods sold figures to understand profitability trends.
2. Examine selling, general, and administrative expenses for operational efficiency insights.
3. Review debt and capital lease obligations to assess the company's financial leverage.

Key Dates

• 2024-02-15: 10-K Filing — Annual report submission for fiscal year 2023
• 2023-12-30: Fiscal Year End — End of the reporting period

Year-Over-Year Comparison

This is the 2023 annual report (10-K) filing, following previous filings such as quarterly reports (10-Q) and potentially prior annual reports.

Key Financial Figures

• $0.01 — ange on which registered Common stock, $0.01 par value KHC The Nasdaq Stock Market L
• $27 b — o. With 2023 net sales of approximately $27 billion, we are committed to growing our

Filing Documents

• khc-20231230.htm (10-K) — 3759KB
• exhibit425-descriptionofse.htm (EX-4.25) — 145KB
• exhibit107-ardeferredcompe.htm (EX-10.7) — 67KB
• exhibit1041q42023formofopt.htm (EX-10.41) — 109KB
• exhibit1042q42023formofpsu.htm (EX-10.42) — 135KB
• exhibit1043q42023formofrsu.htm (EX-10.43) — 111KB
• exhibit1044q42023formofmat.htm (EX-10.44) — 111KB
• exhibit1045q42023deferreds.htm (EX-10.45) — 50KB
• exhibit211q42023.htm (EX-21.1) — 96KB
• exhibit221q42023.htm (EX-22.1) — 8KB
• exhibit231q42023.htm (EX-23.1) — 2KB
• exhibit241q42023.htm (EX-24.1) — 21KB
• exhibit311q42023.htm (EX-31.1) — 10KB
• exhibit312q42023.htm (EX-31.2) — 10KB
• exhibit321q42023.htm (EX-32.1) — 6KB
• exhibit322q42023.htm (EX-32.2) — 6KB
• exhibit971clawbackpolicy.htm (EX-97.1) — 28KB
• image_0.jpg (GRAPHIC) — 8KB
• khc-20231230_g1.jpg (GRAPHIC) — 213KB
• khc-20231230_g2.gif (GRAPHIC) — 25KB
• 0001637459-24-000018.txt (&nbsp;) — 24230KB
• khc-20231230.xsd (EX-101.SCH) — 135KB
• khc-20231230_cal.xml (EX-101.CAL) — 155KB
• khc-20231230_def.xml (EX-101.DEF) — 927KB
• khc-20231230_lab.xml (EX-101.LAB) — 1529KB
• khc-20231230_pre.xml (EX-101.PRE) — 1348KB
• khc-20231230_htm.xml (XML) — 4519KB

Business

Item 1. Business. 1

Risk Factors

Item 1A. Risk Factors. 8

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments. 22

Cybersecurit y

Item 1C. Cybersecurit y 22

Properties

Item 2. Properties. 24

Legal Proceedings

Item 3. Legal Proceedings. 24

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 24 PART II 24

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. 24

[Reserved]

Item 6. [Reserved]. 26

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. 27 Overview 27 Consolidated Results of Operations 28 Results of Operations by Segment 30 Liquidity and Capital Resources 32 Commodity Trends 37 Critical Accounting Estimates 37 New Accounting Pronouncements 41 Contingencies 41 Non-GAAP Financial Measures 41

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk. 45

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data. 46 Report of Independent Registered Public Accounting Firm 46 Consolidated Statements of Income 49 Consolidated Statements of Comprehensive Income 50 Consolidated Balance Sheets 51 Consolidated Statements of Equity 52 Consolidated Statements of Cash Flows 53

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 54 Note 1. Basis of Presentation 54 Note 2. Significant Accounting Policies 55 Note 3. New Accounting Standards 59 Note 4. Acquisitions and Divestitures 60 Note 5. Restructuring Activities 65 Note 6. Inventories 66 Note 7. Property, Plant and Equipment 66 Note 8. Goodwill and Intangible Assets 67 Note 9. Income Taxes 72 Note 10. Employees' Stock Incentive Plans 75 Note 11. Postemployment Benefits 78 Note 12. Financial Instruments 88 Note 13. Accumulated Other Comprehensive Income/(Losses) 93 Note 14. Financing Arrangements 95 Note 15. Commitments and Contingencies 96 Note 16. Debt 98 Note 17. Leases 102 Note 18. Capital Stock 103 Note 19. Earnings Per Share 104 Note 20. Segment Reporting 105 Note 21. Other Financial Data 107

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. 109

Controls and Procedures

Item 9A. Controls and Procedures. 109

Other Information

Item 9B. Other Information. 110

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 110 PART III 110

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance. 110

Executive Compensation

Item 11. Executive Compensation. 110

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. 110

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence. 110

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services. 110 PART IV 111

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules. 111

Form 10-K Summary

Item 16. Form 10-K Summary. 116

Signatures

Signatures 117 Valuation and Qualifying Accounts S- 1 Unless the context otherwise requires, the terms "we," "us," "our," "Kraft Heinz," and the "Company" each refer to The Kraft Heinz Company and all of its consolidated subsidiaries.

Forward-Looking Statements

Forward-Looking Statements This Annual Report on Form 10-K 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 reflect management's current expectations and 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 or suppliers, or in 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 or platforms, increase our market share, or add products that are in faster-growing and more profitable categories; product recalls or other product liability claims; climate change and legal or regulatory responses; our ability to identify, complete, or realize the

Business

Item 1. Business. General We are driving transformation at The Kraft Heinz Company (Nasdaq: KHC), inspired by our Purpose, Let's Make Life Delicious . Consumers are at the center of everything we do. With 2023 net sales of approximately $27 billion, we are committed to growing our iconic and emerging food and beverage brands on a global scale. We leverage our scale and agility to unleash the full power of Kraft Heinz across a portfolio of six consumer-driven product platforms. As global citizens, we're dedicated to making a sustainable, ethical impact while helping to feed the world in healthy, responsible ways. On July 2, 2015, through a series of transactions, we consummated the merger of Kraft Foods Group, Inc. ("Kraft") with and into a wholly-owned subsidiary of H.J. Heinz Holding Corporation ("Heinz") (the "2015 Merger"). At the closing of the 2015 Merger, Heinz was renamed The Kraft Heinz Company, and H. J. Heinz Company changed its name to Kraft Heinz Foods Company ("KHFC"). We operate on a 52- or 53-week fiscal year ending on the last Saturday in December in each calendar year. Unless the context requires otherwise, references to years and quarters contained herein pertain to our fiscal years and fiscal quarters. Our 2023 fiscal year was a 52-week period that ended on December 30, 2023, our 2022 fiscal year was a 53-week period that ended on December 31, 2022, and our 2021 fiscal year was a 52-week period that ended on December 25, 2021. Reportable Segments: We manage and report our operating results through two reportable segments defined by geographic region: North America and International. During the fourth quarter of 2023, certain organizational changes were announced that are expected to impact our future internal reporting and reportable segments. We expect to divide our International segment into three operating segments — Europe and Pacific Developed Markets ("EPDM" or "International Developed Markets"), West and East Emerging Markets ("WEEM"

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View this 10-K filing on SEC EDGAR