Supplemental Financial Information (Tables)

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Statements of Income

The Kraft Heinz Company

Condensed Consolidating Statements of Income

For the Three Months Ended September 30, 2017

(in millions)

(Unaudited)

	Parent Guarantor		Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—	$	4,170		$	2,286		$	(142	)	$	6,314
Cost of products sold	—		2,601			1,541			(142		)	4,000
Gross profit	—		1,569			745			—			2,314
Selling, general and administrative expenses	—		155			498			—			653
Intercompany service fees and other recharges	—		776			(776		)	—			—
Operating income	—		638			1,023			—			1,661
Interest expense	—		296			10			—			306
Other expense/(income), net	—		23			(27		)	—			(4		)
Income/(loss) before income taxes	—		319			1,040			—			1,359
Provision for/(benefit from) income taxes	—		(11		)	427			—			416
Equity in earnings of subsidiaries	944		614			—			(1,558		)	—
Net income/(loss)	944		944			613			(1,558		)	943
Net income/(loss) attributable to noncontrolling interest	—		—			(1		)	—			(1		)
Net income/(loss) excluding noncontrolling interest	$	944	$	944		$	614		$	(1,558	)	$	944
Comprehensive income/(loss) excluding noncontrolling interest	$	1,167	$	1,167		$	1,165		$	(2,332	)	$	1,167

The Kraft Heinz Company

Condensed Consolidating Statements of Income

For the Three Months Ended October 2, 2016

(in millions)

(Unaudited)

	Parent Guarantor		Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—	$	4,206		$	2,233		$	(172	)	$	6,267
Cost of products sold	—		2,700			1,521			(172		)	4,049
Gross profit	—		1,506			712			—			2,218
Selling, general and administrative expenses	—		194			611			—			805
Intercompany service fees and other recharges	—		795			(795		)	—			—
Operating income	—		517			896			—			1,413
Interest expense	—		294			17			—			311
Other expense/(income), net	—		(20		)	17			—			(3		)
Income/(loss) before income taxes	—		243			862			—			1,105
Provision for/(benefit from) income taxes	—		(199		)	461			—			262
Equity in earnings of subsidiaries	842		400			—			(1,242		)	—
Net income/(loss)	842		842			401			(1,242		)	843
Net income/(loss) attributable to noncontrolling interest	—		—			1			—			1
Net income/(loss) excluding noncontrolling interest	$	842	$	842		$	400		$	(1,242	)	$	842
Comprehensive income/(loss) excluding noncontrolling interest	$	547	$	547		$	285		$	(832	)	$	547

The Kraft Heinz Company

Condensed Consolidating Statements of Income

For the Nine Months Ended September 30, 2017

(in millions)

(Unaudited)

	Parent Guarantor		Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—	$	12,941		$	6,856		$	(442	)	$	19,355
Cost of products sold	—		7,825			4,676			(442		)	12,059
Gross profit	—		5,116			2,180			—			7,296
Selling, general and administrative expenses	—		504			1,659			—			2,163
Intercompany service fees and other recharges	—		3,205			(3,205		)	—			—
Operating income	—		1,407			3,726			—			5,133
Interest expense	—		895			31			—			926
Other expense/(income), net	—		(8		)	16			—			8
Income/(loss) before income taxes	—		520			3,679			—			4,199
Provision for/(benefit from) income taxes	—		(92		)	1,297			—			1,205
Equity in earnings of subsidiaries	2,996		2,384			—			(5,380		)	—
Net income/(loss)	2,996		2,996			2,382			(5,380		)	2,994
Net income/(loss) attributable to noncontrolling interest	—		—			(2		)	—			(2		)
Net income/(loss) excluding noncontrolling interest	$	2,996	$	2,996		$	2,384		$	(5,380	)	$	2,996
Comprehensive income/(loss) excluding noncontrolling interest	$	3,539	$	3,539		$	4,351		$	(7,890	)	$	3,539

The Kraft Heinz Company

Condensed Consolidating Statements of Income

For the Nine Months Ended October 2, 2016

(in millions)

(Unaudited)

	Parent Guarantor		Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—	$	13,156		$	6,948		$	(474	)	$	19,630
Cost of products sold	—		8,273			4,704			(474		)	12,503
Gross profit	—		4,883			2,244			—			7,127
Selling, general and administrative expenses	—		778			1,787			—			2,565
Intercompany service fees and other recharges	—		3,320			(3,320		)	—			—
Operating income	—		785			3,777			—			4,562
Interest expense	—		782			42			—			824
Other expense/(income), net	—		66			(71		)	—			(5		)
Income/(loss) before income taxes	—		(63		)	3,806			—			3,743
Provision for/(benefit from) income taxes	—		(349		)	1,394			—			1,045
Equity in earnings of subsidiaries	2,688		2,402			—			(5,090		)	—
Net income/(loss)	2,688		2,688			2,412			(5,090		)	2,698
Net income/(loss) attributable to noncontrolling interest	—		—			10			—			10
Net income/(loss) excluding noncontrolling interest	$	2,688	$	2,688		$	2,402		$	(5,090	)	$	2,688
Comprehensive income/(loss) excluding noncontrolling interest	$	2,131	$	2,131		$	2,013		$	(4,144	)	$	2,131

Condensed Consolidating Balance Sheets

The Kraft Heinz Company

Condensed Consolidating Balance Sheets

As of September 30, 2017

(in millions)

(Unaudited)

	Parent Guarantor		Subsidiary Issuer		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	—	$	217	$	1,224	$	—		$	1,441
Trade receivables	—		4		934		—			938
Receivables due from affiliates			725		205		(930		)	—
Dividends due from affiliates	101		—		—		(101		)	—
Sold receivables	—		—		427		—			427
Inventories	—		2,087		1,101		—			3,188
Short-term lending due from affiliates	—		2,098		3,513		(5,611		)	—
Other current assets	—		3,229		391		(2,386		)	1,234
Total current assets	101		8,360		7,795		(9,028		)	7,228
Property, plant and equipment, net	—		4,506		2,428		—			6,934
Goodwill	—		11,067		33,791		—			44,858
Investments in subsidiaries	58,759		72,096		—		(130,855		)	—
Intangible assets, net	—		3,258		56,242		—			59,500
Long-term lending due from affiliates	—		1,700		2,000		(3,700		)	—
Other assets	—		499		1,032		—			1,531
TOTAL ASSETS	$	58,860	$	101,486	$	103,288	$	(143,583	)	$	120,051
LIABILITIES AND EQUITY
Commercial paper and other short-term debt	$	—	$	443	$	12	$	—		$	455
Current portion of long-term debt	—		2,583		172		—			2,755
Short-term lending due to affiliates	—		3,513		2,098		(5,611		)	—
Trade payables	—		2,324		1,623		—			3,947
Payables due to affiliates	—		205		725		(930		)	—
Accrued marketing	—		124		369		—			493
Accrued postemployment costs	—		84		74		—			158
Income taxes payable	—		—		2,555		(2,386		)	169
Interest payable	—		284		11		—			295
Dividends due to affiliates	—		101		—		(101		)	—
Other current liabilities	101		497		517		—			1,115
Total current liabilities	101		10,158		8,156		(9,028		)	9,387
Long-term debt	—		27,396		903		—			28,299
Long-term borrowings due to affiliates	—		2,000		1,921		(3,921		)	—
Deferred income taxes	—		1,368		19,530		—			20,898
Accrued postemployment costs	—		1,508		300		—			1,808
Other liabilities	—		297		391		—			688
TOTAL LIABILITIES	101		42,727		31,201		(12,949		)	61,080
Total shareholders’ equity	58,759		58,759		71,875		(130,634		)	58,759
Noncontrolling interest	—		—		212		—			212
TOTAL EQUITY	58,759		58,759		72,087		(130,634		)	58,971
TOTAL LIABILITIES AND EQUITY	$	58,860	$	101,486	$	103,288	$	(143,583	)	$	120,051

The Kraft Heinz Company

Condensed Consolidating Balance Sheets

As of December 31, 2016

(in millions)

(Unaudited)

	Parent Guarantor		Subsidiary Issuer		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	—	$	2,830	$	1,374	$	—		$	4,204
Trade receivables	—		12		757		—			769
Receivables due from affiliates	—		712		111		(823		)	—
Dividends due from affiliates	39		—		—		(39		)	—
Sold receivables	—		—		129		—			129
Inventories	—		1,759		925		—			2,684
Short-term lending due from affiliates	—		1,722		2,956		(4,678		)	—
Other current assets	—		2,229		447		(1,709		)	967
Total current assets	39		9,264		6,699		(7,249		)	8,753
Property, plant and equipment, net	—		4,447		2,241		—			6,688
Goodwill	—		11,067		33,058		—			44,125
Investments in subsidiaries	57,358		70,877		—		(128,235		)	—
Intangible assets, net	—		3,364		55,933		—			59,297
Long-term lending due from affiliates	—		1,700		2,000		(3,700		)	—
Other assets	—		501		1,116		—			1,617
TOTAL ASSETS	$	57,397	$	101,220	$	101,047	$	(139,184	)	$	120,480
LIABILITIES AND EQUITY
Commercial paper and other short-term debt	$	—	$	642	$	3	$	—		$	645
Current portion of long-term debt	—		2,032		14		—			2,046
Short-term lending due to affiliates	—		2,956		1,722		(4,678		)	—
Trade payables	—		2,376		1,620		—			3,996
Payables due to affiliates	—		111		712		(823		)	—
Accrued marketing	—		277		472		—			749
Accrued postemployment costs	—		144		13		—			157
Income taxes payable	—		—		1,964		(1,709		)	255
Interest payable	—		401		14		—			415
Dividends due to affiliates	—		39		—		(39		)	—
Other current liabilities	39		588		611		—			1,238
Total current liabilities	39		9,566		7,145		(7,249		)	9,501
Long-term debt	—		28,736		977		—			29,713
Long-term borrowings due to affiliates	—		2,000		1,902		(3,902		)	—
Deferred income taxes	—		1,382		19,466		—			20,848
Accrued postemployment costs	—		1,754		284		—			2,038
Other liabilities	—		424		382		—			806
TOTAL LIABILITIES	39		43,862		30,156		(11,151		)	62,906
Total shareholders’ equity	57,358		57,358		70,675		(128,033		)	57,358
Noncontrolling interest	—		—		216		—			216
TOTAL EQUITY	57,358		57,358		70,891		(128,033		)	57,574
TOTAL LIABILITIES AND EQUITY	$	57,397	$	101,220	$	101,047	$	(139,184	)	$	120,480

Condensed Consolidating Statements of Cash Flows

The Kraft Heinz Company

Condensed Consolidating Statements of Cash Flows

For the Nine Months Ended September 30, 2017

(in millions)

(Unaudited)

	Parent Guarantor			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by/(used for) operating activities	$	2,161		$	1,185		$	(1,169	)	$	(2,161	)	$	16
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts on sold receivables	—			—			1,633			—			1,633
Capital expenditures	—			(622		)	(334		)	—			(956		)
Net proceeds from/(payments on) intercompany lending activities	—			59			(267		)	208			—
Additional investments in subsidiaries	(15		)	—			—			15			—
Other investing activities, net	—			54			(7		)	—			47
Net cash provided by/(used for) investing activities	(15		)	(509		)	1,025			223			724
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of long-term debt	—			(2,625		)	(11		)	—			(2,636		)
Proceeds from issuance of long-term debt	—			1,496			—			—			1,496
Proceeds from issuance of commercial paper	—			5,495			—			—			5,495
Repayments of commercial paper	—			(5,709		)	—			—			(5,709		)
Net proceeds from/(payments on) intercompany borrowing activities	—			267			(59		)	(208		)	—
Dividends paid-common stock	(2,161		)	(2,161		)	—			2,161			(2,161		)
Other intercompany capital stock transactions	—			15			—			(15		)	—
Other financing activities, net	15			(6		)	17			—			26
Net cash provided by/(used for) financing activities	(2,146		)	(3,228		)	(53		)	1,938			(3,489		)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	—			—			43			—			43
Cash, cash equivalents, and restricted cash:
Net increase/(decrease)	—			(2,552		)	(154		)	—			(2,706		)
Balance at beginning of period	—			2,869			1,386			—			4,255
Balance at end of period	$	—		$	317		$	1,232		$	—		$	1,549

The Kraft Heinz Company

Condensed Consolidating Statements of Cash Flows

For the Nine Months Ended October 2, 2016

(in millions)

(Unaudited)

	Parent Guarantor			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by/(used for) operating activities	$	1,636		$	1,821		$	(805	)	$	(1,636	)	$	1,016
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts on sold receivables	—			—			1,850			—			1,850
Capital expenditures	—			(605		)	(231		)	—			(836		)
Net proceeds from/(payments on) intercompany lending activities	—			565			(74		)	(491		)	—
Additional investments in subsidiaries	—			(10		)	—			10			—
Return of capital	8,987			—			—			(8,987		)	—
Other investing activities, net	—			100			(30		)	—			70
Net cash provided by/(used for) investing activities	8,987			50			1,515			(9,468		)	1,084
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of long-term debt	—			(69		)	(5		)	—			(74		)
Proceeds from issuance of long-term debt	—			6,978			3			—			6,981
Proceeds from issuance of commercial paper	—			4,296			—			—			4,296
Repayments of commercial paper	—			(3,660		)	—			—			(3,660		)
Net proceeds from/(payments on) intercompany borrowing activities	—			74			(565		)	491			—
Dividends paid-Series A Preferred Stock	(180		)	—			—			—			(180		)
Dividends paid-common stock	(2,123		)	(2,303		)	—			2,303			(2,123		)
Redemption of Series A Preferred Stock	(8,320		)	—			—			—			(8,320		)
Other intercompany capital stock transactions	—			(8,320		)	10			8,310			—
Other financing activities, net	—			50			6			—			56
Net cash provided by/(used for) financing activities	(10,623		)	(2,954		)	(551		)	11,104			(3,024		)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	—			—			(17		)	—			(17		)
Cash, cash equivalents, and restricted cash:
Net increase/(decrease)	—			(1,083		)	142			—			(941		)
Balance at beginning of period	—			3,253			1,659			—			4,912
Balance at end of period	$	—		$	2,170		$	1,801		$	—		$	3,971

Reconciliation from Cash and Cash Equivalents to Cash, Cash Equivalents, and Restricted Cash

The following tables provide a reconciliation of cash and cash equivalents, as reported on our unaudited condensed consolidating balance sheets, to cash, cash equivalents, and restricted cash, as reported on our unaudited condensed consolidating statements of cash flows (in millions):

	September 30, 2017
	Parent Guarantor		Subsidiary Issuer		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents	$	—	$	217	$	1,224	$	—	$	1,441
Restricted cash included in other assets (current)	—		100		8		—		108
Cash, cash equivalents, and restricted cash	$	—	$	317	$	1,232	$	—	$	1,549

	December 31, 2016
	Parent Guarantor		Subsidiary Issuer		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents	$	—	$	2,830	$	1,374	$	—	$	4,204
Restricted cash included in other assets (current)	—		39		3		—		42
Restricted cash included in other assets (noncurrent)	—		—		9		—		9
Cash, cash equivalents, and restricted cash	$	—	$	2,869	$	1,386	$	—	$	4,255