10-K 1 khc-20231230.htm 10-K khc-20231230
false2023FY0001637459P3Yhttp://fasb.org/us-gaap/2023#SellingGeneralAndAdministrativeExpenseP3YP3YP3Yhttp://fasb.org/us-gaap/2023#PensionPlansDefinedBenefitMemberhttp://fasb.org/us-gaap/2023#CostOfGoodsAndServicesSoldhttp://fasb.org/us-gaap/2023#InterestExpensehttp://fasb.org/us-gaap/2023#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2023#CostOfGoodsAndServicesSoldhttp://www.kraftheinzcompany.com/20231230#SellingGeneralAndAdministrativeExpenseExcludingImpairmentLosseshttp://fasb.org/us-gaap/2023#InterestExpensehttp://fasb.org/us-gaap/2023#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2023#RevenueFromContractWithCustomerIncludingAssessedTaxhttp://fasb.org/us-gaap/2023#CostOfGoodsAndServicesSoldhttp://www.kraftheinzcompany.com/20231230#SellingGeneralAndAdministrativeExpenseExcludingImpairmentLosseshttp://fasb.org/us-gaap/2023#InterestExpensehttp://fasb.org/us-gaap/2023#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2023#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2023#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2023#LongTermDebtAndCapitalLeaseObligationsCurrenthttp://fasb.org/us-gaap/2023#LongTermDebtAndCapitalLeaseObligationsCurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2023#LongTermDebtAndCapitalLeaseObligationshttp://fasb.org/us-gaap/2023#LongTermDebtAndCapitalLeaseObligations00016374592023-01-012023-12-300001637459us-gaap:CommonStockMember2023-01-012023-12-300001637459khc:FloatingRateSeniorNotesDue2025Member2023-01-012023-12-3000016374592023-07-01iso4217:USD00016374592024-02-10xbrli:shares00016374592021-12-262022-12-3100016374592020-12-272021-12-25iso4217:USDxbrli:shares00016374592023-12-3000016374592022-12-310001637459us-gaap:CommonStockMember2020-12-260001637459us-gaap:AdditionalPaidInCapitalMember2020-12-260001637459us-gaap:RetainedEarningsMember2020-12-260001637459us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-260001637459us-gaap:TreasuryStockCommonMember2020-12-260001637459us-gaap:NoncontrollingInterestMember2020-12-2600016374592020-12-260001637459us-gaap:RetainedEarningsMember2020-12-272021-12-250001637459us-gaap:NoncontrollingInterestMember2020-12-272021-12-250001637459us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-272021-12-2500016374592019-12-292020-12-260001637459us-gaap:AdditionalPaidInCapitalMember2020-12-272021-12-250001637459us-gaap:TreasuryStockCommonMember2020-12-272021-12-250001637459us-gaap:CommonStockMember2021-12-250001637459us-gaap:AdditionalPaidInCapitalMember2021-12-250001637459us-gaap:RetainedEarningsMember2021-12-250001637459us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-250001637459us-gaap:TreasuryStockCommonMember2021-12-250001637459us-gaap:NoncontrollingInterestMember2021-12-2500016374592021-12-250001637459us-gaap:RetainedEarningsMember2021-12-262022-12-310001637459us-gaap:NoncontrollingInterestMember2021-12-262022-12-310001637459us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-262022-12-310001637459us-gaap:AdditionalPaidInCapitalMember2021-12-262022-12-310001637459us-gaap:TreasuryStockCommonMember2021-12-262022-12-310001637459us-gaap:CommonStockMember2022-12-310001637459us-gaap:AdditionalPaidInCapitalMember2022-12-310001637459us-gaap:RetainedEarningsMember2022-12-310001637459us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001637459us-gaap:TreasuryStockCommonMember2022-12-310001637459us-gaap:NoncontrollingInterestMember2022-12-310001637459us-gaap:RetainedEarningsMember2023-01-012023-12-300001637459us-gaap:NoncontrollingInterestMember2023-01-012023-12-300001637459us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-300001637459us-gaap:AdditionalPaidInCapitalMember2023-01-012023-12-300001637459us-gaap:TreasuryStockCommonMember2023-01-012023-12-300001637459us-gaap:CommonStockMember2023-12-300001637459us-gaap:AdditionalPaidInCapitalMember2023-12-300001637459us-gaap:RetainedEarningsMember2023-12-300001637459us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-300001637459us-gaap:TreasuryStockCommonMember2023-12-300001637459us-gaap:NoncontrollingInterestMember2023-12-30khc:segment0001637459srt:MinimumMember2023-01-012023-12-300001637459srt:MaximumMember2023-01-012023-12-300001637459us-gaap:MachineryAndEquipmentMembersrt:MinimumMember2023-12-300001637459srt:MaximumMemberus-gaap:MachineryAndEquipmentMember2023-12-300001637459srt:MaximumMemberus-gaap:BuildingAndBuildingImprovementsMember2023-12-300001637459srt:MaximumMemberus-gaap:SoftwareAndSoftwareDevelopmentCostsMember2023-12-30khc:goodwillReportingUnit0001637459khc:ReportingUnitGoodwillBalanceHeldMember2023-01-012023-12-300001637459khc:HemmerAcquisitionMember2022-03-312022-03-31iso4217:BRL0001637459khc:HemmerAcquisitionMember2022-03-31xbrli:pure0001637459khc:HemmerAcquisitionMember2023-12-300001637459khc:HemmerAcquisitionMember2023-01-012023-12-300001637459us-gaap:TrademarksMemberkhc:HemmerAcquisitionMember2022-03-310001637459us-gaap:CustomerRelationshipsMemberkhc:HemmerAcquisitionMember2022-03-310001637459khc:JustSpicesAcquisitionMember2022-01-180001637459khc:JustSpicesAcquisitionMember2022-01-182022-01-18iso4217:EUR0001637459khc:JustSpicesAcquisitionMember2023-12-300001637459khc:JustSpicesAcquisitionMember2023-07-022023-12-300001637459khc:JustSpicesAcquisitionMember2023-01-012023-12-300001637459khc:JustSpicesAcquisitionMember2022-12-310001637459us-gaap:TrademarksMemberkhc:JustSpicesAcquisitionMember2022-01-180001637459us-gaap:CustomerRelationshipsMemberkhc:JustSpicesAcquisitionMember2022-01-180001637459khc:AssanFoodsAcquisitionMember2021-10-012021-10-010001637459khc:AssanFoodsAcquisitionMember2021-10-010001637459khc:AssanFoodsAcquisitionMember2023-01-012023-12-300001637459khc:AssanFoodsAcquisitionMember2022-12-31khc:business0001637459khc:OtherInternationalDisposalMember2023-12-300001637459us-gaap:AccumulatedTranslationAdjustmentMemberkhc:OtherInternationalDisposalMember2023-12-300001637459khc:PNGTransactionMember2023-01-012023-12-300001637459khc:PNGTransactionMember2023-12-300001637459khc:PNGTransactionMemberus-gaap:AccumulatedTranslationAdjustmentMember2023-12-300001637459khc:PowderedCheeseTransactionMember2022-08-012022-08-310001637459khc:PowderedCheeseTransactionMember2023-10-012023-12-300001637459us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberkhc:CheeseTransactionMember2021-11-290001637459us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberkhc:CheeseTransactionMember2021-11-292021-11-290001637459khc:CheeseTransactionDisposalGroupMemberus-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2021-11-290001637459us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberkhc:PhiladelphiaMemberkhc:CheeseTransactionMember2021-11-292021-11-290001637459us-gaap:LicenseMemberkhc:KraftAndVelveetaMemberkhc:CheeseTransactionMember2021-11-292021-11-290001637459us-gaap:LicenseMemberkhc:PhiladelphiaMemberkhc:CheeseTransactionMember2021-11-292021-11-290001637459us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberus-gaap:LicenseMemberkhc:CheeseTransactionMember2023-01-012023-12-300001637459us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberus-gaap:LicenseMemberkhc:CheeseTransactionMember2021-12-262022-12-310001637459khc:CheeseDivestitureLicensesMember2023-12-3000016374592021-09-262021-12-250001637459us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMemberkhc:NutsTransactionMember2021-02-10khc:manufacturingFacilities0001637459us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMemberkhc:NutsTransactionMember2020-12-272021-03-270001637459us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberkhc:NutsTransactionMember2020-12-272021-12-250001637459khc:RestructuringActivitiesMember2023-01-012023-12-30khc:employee0001637459khc:RestructuringActivitiesMember2021-12-262022-12-310001637459us-gaap:EmployeeSeveranceMemberkhc:RestructuringActivitiesMember2023-01-012023-12-300001637459us-gaap:FacilityClosingMemberkhc:RestructuringActivitiesMember2023-01-012023-12-300001637459khc:OtherImplementationCostsMemberkhc:RestructuringActivitiesMember2023-01-012023-12-300001637459us-gaap:OtherRestructuringMemberkhc:RestructuringActivitiesMember2023-01-012023-12-300001637459khc:RestructuringActivitiesMember2020-12-272021-12-250001637459us-gaap:EmployeeSeveranceMemberkhc:RestructuringActivitiesMember2022-12-310001637459us-gaap:OtherRestructuringMemberkhc:RestructuringActivitiesMember2022-12-310001637459khc:RestructuringActivitiesMember2022-12-310001637459us-gaap:EmployeeSeveranceMemberkhc:RestructuringActivitiesMember2023-12-300001637459us-gaap:OtherRestructuringMemberkhc:RestructuringActivitiesMember2023-12-300001637459khc:RestructuringActivitiesMember2023-12-300001637459us-gaap:CostOfSalesMemberus-gaap:EmployeeSeveranceMember2023-01-012023-12-300001637459us-gaap:CostOfSalesMemberus-gaap:EmployeeSeveranceMember2021-12-262022-12-310001637459us-gaap:CostOfSalesMemberus-gaap:EmployeeSeveranceMember2020-12-272021-12-250001637459us-gaap:EmployeeSeveranceMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2023-01-012023-12-300001637459us-gaap:EmployeeSeveranceMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-12-262022-12-310001637459us-gaap:EmployeeSeveranceMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-12-272021-12-250001637459us-gaap:EmployeeSeveranceMemberus-gaap:NonoperatingIncomeExpenseMember2023-01-012023-12-300001637459us-gaap:EmployeeSeveranceMemberus-gaap:NonoperatingIncomeExpenseMember2021-12-262022-12-310001637459us-gaap:EmployeeSeveranceMemberus-gaap:NonoperatingIncomeExpenseMember2020-12-272021-12-250001637459us-gaap:CostOfSalesMemberus-gaap:FacilityClosingMember2023-01-012023-12-300001637459us-gaap:CostOfSalesMemberus-gaap:FacilityClosingMember2021-12-262022-12-310001637459us-gaap:CostOfSalesMemberus-gaap:FacilityClosingMember2020-12-272021-12-250001637459us-gaap:FacilityClosingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2023-01-012023-12-300001637459us-gaap:FacilityClosingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-12-262022-12-310001637459us-gaap:FacilityClosingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-12-272021-12-250001637459khc:OtherCostsMemberus-gaap:CostOfSalesMember2023-01-012023-12-300001637459khc:OtherCostsMemberus-gaap:CostOfSalesMember2021-12-262022-12-310001637459khc:OtherCostsMemberus-gaap:CostOfSalesMember2020-12-272021-12-250001637459khc:OtherCostsMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2023-01-012023-12-300001637459khc:OtherCostsMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-12-262022-12-310001637459khc:OtherCostsMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-12-272021-12-250001637459khc:OtherCostsMemberus-gaap:NonoperatingIncomeExpenseMember2023-01-012023-12-300001637459khc:OtherCostsMemberus-gaap:NonoperatingIncomeExpenseMember2021-12-262022-12-310001637459khc:OtherCostsMemberus-gaap:NonoperatingIncomeExpenseMember2020-12-272021-12-250001637459us-gaap:OperatingSegmentsMemberkhc:NorthAmericaSegmentMember2023-01-012023-12-300001637459us-gaap:OperatingSegmentsMemberkhc:NorthAmericaSegmentMember2021-12-262022-12-310001637459us-gaap:OperatingSegmentsMemberkhc:NorthAmericaSegmentMember2020-12-272021-12-250001637459us-gaap:OperatingSegmentsMemberkhc:InternationalSegmentMember2023-01-012023-12-300001637459us-gaap:OperatingSegmentsMemberkhc:InternationalSegmentMember2021-12-262022-12-310001637459us-gaap:OperatingSegmentsMemberkhc:InternationalSegmentMember2020-12-272021-12-250001637459us-gaap:CorporateNonSegmentMember2023-01-012023-12-300001637459us-gaap:CorporateNonSegmentMember2021-12-262022-12-310001637459us-gaap:CorporateNonSegmentMember2020-12-272021-12-250001637459us-gaap:LandMember2023-12-300001637459us-gaap:LandMember2022-12-310001637459us-gaap:BuildingAndBuildingImprovementsMember2023-12-300001637459us-gaap:BuildingAndBuildingImprovementsMember2022-12-310001637459khc:EquipmentAndOtherMember2023-12-300001637459khc:EquipmentAndOtherMember2022-12-310001637459us-gaap:ConstructionInProgressMember2023-12-300001637459us-gaap:ConstructionInProgressMember2022-12-310001637459khc:NorthAmericaSegmentMember2021-12-250001637459khc:InternationalSegmentMember2021-12-250001637459khc:NorthAmericaSegmentMember2021-12-262022-12-310001637459khc:InternationalSegmentMember2021-12-262022-12-310001637459khc:NorthAmericaSegmentMember2022-12-310001637459khc:InternationalSegmentMember2022-12-310001637459khc:NorthAmericaSegmentMember2023-01-012023-12-300001637459khc:InternationalSegmentMember2023-01-012023-12-300001637459khc:NorthAmericaSegmentMember2023-12-300001637459khc:InternationalSegmentMember2023-12-300001637459khc:CanadaAndNorthAmericaCoffeeMember2023-07-022023-09-300001637459khc:ContinentalEuropeMember2023-07-022023-09-3000016374592023-07-022023-09-300001637459khc:CanadaAndNorthAmericaCoffeeMember2023-12-300001637459khc:ContinentalEuropeMember2023-12-300001637459khc:ThreeReportingUnitsMemberkhc:PercentRange20OrLessMember2023-07-020001637459khc:ReportingUnitGoodwillBalanceHeldMemberkhc:PercentRange20OrLessMember2023-07-020001637459khc:FourReportingUnitsMemberkhc:PercentRange2050Membersrt:MinimumMember2023-07-020001637459srt:MaximumMemberkhc:FourReportingUnitsMemberkhc:PercentRange2050Member2023-07-020001637459khc:ReportingUnitGoodwillBalanceHeldMemberkhc:PercentRange2050Member2023-07-020001637459khc:PreReorganizationNumberOfReportingUnitsWithReassignmentOfAssetsAndLiabilitiesThatMaintainedAGoodwillBalanceMember2022-03-272022-03-270001637459khc:PreReorganizationNumberOfReportingUnitsWithNoGoodwillBalanceMember2022-03-272022-03-270001637459khc:NorthAmericaSegmentMember2022-03-272022-06-250001637459khc:CanadaRetailMember2022-03-272022-06-250001637459khc:PuertoRicoReportingUnitMember2022-03-272022-06-250001637459khc:CanadaAndNorthAmericaCoffeeMember2022-06-262022-09-240001637459khc:NorthAmericaSegmentMember2020-12-272021-03-270001637459khc:FourReportingUnitsMember2020-12-272021-03-270001637459khc:PuertoRicoReportingUnitMember2021-03-282021-06-260001637459khc:InternationalSegmentMember2020-12-272021-12-250001637459khc:ReportingUnitsWith20OrLessExcessFairValueOverCarryingAmountMember2023-12-300001637459khc:ReportingUnitsWithMoreThan20ExcessFairValueOverCarryingAmountMember2023-12-300001637459khc:NorthAmericaSegmentMember2023-07-022023-09-300001637459khc:InternationalSegmentMember2023-07-022023-09-300001637459khc:MaxwellHouseCoolWhipAndTwoOtherBrandsMember2023-12-300001637459khc:ReportingUnitsWith20OrLessExcessFairValueOverCarryingAmountMember2023-07-020001637459khc:ImpairedBrandMemberkhc:PercentRange20OrLessMember2023-07-020001637459khc:ImpairedBrandMemberkhc:PercentRange2050Membersrt:MinimumMember2023-07-020001637459srt:MaximumMemberkhc:ImpairedBrandMemberkhc:PercentRange2050Member2023-07-020001637459khc:ImpairedBrandMemberkhc:PercentRange2050Member2023-07-020001637459khc:ImpairedBrandMemberkhc:PercentRangeinExcessof50Member2023-07-0200016374592022-03-272022-06-250001637459khc:MaxwellHouseMiracleWhipJetPuffedClassicoMember2022-03-272022-03-27khc:Brand00016374592022-06-262022-09-240001637459khc:NorthAmericaSegmentMember2022-06-262022-09-240001637459khc:InternationalSegmentMember2022-06-262022-09-240001637459khc:PlasmonAndMaxwellHouseMember2021-03-282021-06-260001637459khc:PlasmonAndMaxwellHouseMember2021-03-280001637459khc:PlasmonMemberkhc:InternationalSegmentMember2021-03-282021-06-260001637459khc:NorthAmericaSegmentMemberkhc:MaxwellHouseMember2021-03-282021-06-260001637459khc:KraftBrandMember2021-09-262021-12-250001637459us-gaap:TrademarksMember2023-12-300001637459us-gaap:TrademarksMember2022-12-310001637459us-gaap:CustomerRelationshipsMember2023-12-300001637459us-gaap:CustomerRelationshipsMember2022-12-310001637459us-gaap:OtherIntangibleAssetsMember2023-12-300001637459us-gaap:OtherIntangibleAssetsMember2022-12-3100016374592021-03-282021-06-260001637459us-gaap:InternalRevenueServiceIRSMember2017-12-312018-12-290001637459us-gaap:InternalRevenueServiceIRSMember2018-12-302019-12-280001637459us-gaap:InternalRevenueServiceIRSMember2023-01-012023-12-300001637459khc:CheeseTransactionMember2023-04-022023-07-010001637459khc:NutsTransactionDisposalGroupMember2021-06-272021-12-250001637459khc:A2020OmnibusIncentivePlanMember2020-05-070001637459khc:A2020OmnibusIncentivePlanMember2020-05-072020-05-070001637459khc:A2020OmnibusIncentivePlanMembersrt:MinimumMember2020-05-072020-05-070001637459srt:MaximumMemberkhc:A2020OmnibusIncentivePlanMember2020-05-072020-05-070001637459khc:NonQualifiedStockOptionsMemberkhc:A2020OmnibusIncentivePlanMember2023-01-012023-12-300001637459khc:A2016OmnibusIncentivePlanMember2016-04-300001637459khc:A2016OmnibusIncentivePlanAwardsGrantedPrior2019Member2016-04-302016-04-300001637459srt:MinimumMemberkhc:A2016OmnibusIncentivePlanAwardsGrantedIn2019Member2018-12-302019-12-280001637459srt:MaximumMemberkhc:A2016OmnibusIncentivePlanAwardsGrantedIn2019Member2018-12-302019-12-280001637459khc:NonQualifiedStockOptionsMemberkhc:A2016OmnibusIncentivePlanMember2023-01-012023-12-300001637459khc:A2013OmnibusIncentivePlanMember2015-07-022015-07-020001637459khc:A2013OmnibusIncentivePlanMember2015-07-020001637459khc:NonQualifiedStockOptionsMemberkhc:A2013OmnibusIncentivePlanMember2023-01-012023-12-300001637459khc:A2012PerformanceIncentivePlanMember2015-07-022015-07-020001637459us-gaap:EmployeeStockOptionMemberkhc:A2012PerformanceIncentivePlanMember2023-01-012023-12-30khc:annual_installment0001637459khc:InvoluntaryterminationwithoutcauseMemberkhc:A2012PerformanceIncentivePlanMember2023-01-012023-12-300001637459us-gaap:PerformanceSharesMemberkhc:A2012PerformanceIncentivePlanMember2023-01-012023-12-300001637459us-gaap:EmployeeStockOptionMember2023-01-012023-12-300001637459us-gaap:EmployeeStockOptionMember2021-12-262022-12-310001637459us-gaap:EmployeeStockOptionMember2020-12-272021-12-250001637459us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-12-300001637459us-gaap:RestrictedStockUnitsRSUMember2021-12-262022-12-310001637459us-gaap:RestrictedStockUnitsRSUMember2020-12-272021-12-250001637459us-gaap:RestrictedStockUnitsRSUMember2022-12-310001637459us-gaap:RestrictedStockUnitsRSUMember2023-12-300001637459khc:PSUsMember2023-01-012023-12-300001637459khc:PSUsMember2021-12-262022-12-310001637459khc:PSUsMember2020-12-272021-12-250001637459khc:PSUsMember2022-12-310001637459khc:PSUsMember2023-12-300001637459khc:AllEquityAwardsMember2023-01-012023-12-300001637459khc:AllEquityAwardsMember2021-12-262022-12-310001637459khc:AllEquityAwardsMember2020-12-272021-12-250001637459khc:AllEquityAwardsMember2023-12-300001637459us-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2023-01-012023-12-300001637459us-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459country:USus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459country:USus-gaap:PensionPlansDefinedBenefitMember2021-12-250001637459us-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459us-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2021-12-250001637459country:USus-gaap:PensionPlansDefinedBenefitMember2023-01-012023-12-300001637459country:USus-gaap:PensionPlansDefinedBenefitMember2021-12-262022-12-310001637459us-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2021-12-262022-12-310001637459country:USus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459us-gaap:PensionPlansDefinedBenefitMember2021-12-262022-12-310001637459us-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459us-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459country:USus-gaap:PensionPlansDefinedBenefitMember2020-12-272021-12-250001637459us-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2020-12-272021-12-250001637459country:USus-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459country:USus-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459us-gaap:ForeignPlanMemberus-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459us-gaap:ForeignPlanMemberus-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459country:USus-gaap:EquitySecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459country:USus-gaap:EquitySecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459us-gaap:EquitySecuritiesMemberus-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459us-gaap:EquitySecuritiesMemberus-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459country:USus-gaap:RealEstateMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459country:USus-gaap:RealEstateMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459us-gaap:RealEstateMemberus-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459us-gaap:RealEstateMemberus-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459us-gaap:CashAndCashEquivalentsMembercountry:USus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459us-gaap:CashAndCashEquivalentsMembercountry:USus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459us-gaap:CashAndCashEquivalentsMemberus-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459us-gaap:CashAndCashEquivalentsMemberus-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459country:USus-gaap:PensionPlansDefinedBenefitMemberkhc:CertaininsurancecontractsMember2023-12-300001637459country:USus-gaap:PensionPlansDefinedBenefitMemberkhc:CertaininsurancecontractsMember2022-12-310001637459us-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMemberkhc:CertaininsurancecontractsMember2023-12-300001637459us-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMemberkhc:CertaininsurancecontractsMember2022-12-310001637459country:USkhc:RealAssetsAndDiversifiedCreditMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459country:USus-gaap:PensionPlansDefinedBenefitMemberkhc:ReturnseekingassetsMember2023-12-300001637459country:USus-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2021-12-250001637459country:USus-gaap:PensionPlansDefinedBenefitMemberkhc:ReturnseekingassetsMember2021-12-250001637459khc:MultiAssetCreditMemberus-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459us-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMemberkhc:ReturnseekingassetsMember2023-12-300001637459us-gaap:FairValueInputsLevel12And3Memberkhc:GovernmentbondsMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459us-gaap:FairValueInputsLevel1Memberkhc:GovernmentbondsMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459us-gaap:FairValueInputsLevel2Memberkhc:GovernmentbondsMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459khc:GovernmentbondsMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2023-12-300001637459khc:CorporatebondsandotherfixedincomesecuritiesMemberus-gaap:FairValueInputsLevel12And3Memberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459khc:CorporatebondsandotherfixedincomesecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459khc:CorporatebondsandotherfixedincomesecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459khc:CorporatebondsandotherfixedincomesecuritiesMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2023-12-300001637459us-gaap:FairValueInputsLevel12And3Memberus-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459us-gaap:FairValueInputsLevel1Memberus-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459us-gaap:FairValueInputsLevel2Memberus-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459us-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2023-12-300001637459us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel12And3Memberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459us-gaap:CashAndCashEquivalentsMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2023-12-300001637459us-gaap:RealEstateMemberus-gaap:FairValueInputsLevel12And3Memberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459us-gaap:FairValueInputsLevel1Memberus-gaap:RealEstateMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459us-gaap:FairValueInputsLevel2Memberus-gaap:RealEstateMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459us-gaap:RealEstateMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2023-12-300001637459us-gaap:FairValueInputsLevel12And3Memberus-gaap:PensionPlansDefinedBenefitMemberkhc:CertaininsurancecontractsMember2023-12-300001637459us-gaap:FairValueInputsLevel1Memberus-gaap:PensionPlansDefinedBenefitMemberkhc:CertaininsurancecontractsMember2023-12-300001637459us-gaap:FairValueInputsLevel2Memberus-gaap:PensionPlansDefinedBenefitMemberkhc:CertaininsurancecontractsMember2023-12-300001637459us-gaap:PensionPlansDefinedBenefitMemberkhc:CertaininsurancecontractsMemberus-gaap:FairValueInputsLevel3Member2023-12-300001637459khc:TotalDefinedBenefitPlanPlanAssetsMemberus-gaap:FairValueInputsLevel12And3Memberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459khc:TotalDefinedBenefitPlanPlanAssetsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459khc:TotalDefinedBenefitPlanPlanAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:PensionPlansDefinedBenefitMember2023-12-300001637459khc:TotalDefinedBenefitPlanPlanAssetsMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2023-12-300001637459us-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueMeasuredAtNetAssetValuePerShareMember2023-12-300001637459us-gaap:FairValueInputsLevel12And3Memberkhc:GovernmentbondsMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459us-gaap:FairValueInputsLevel1Memberkhc:GovernmentbondsMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459us-gaap:FairValueInputsLevel2Memberkhc:GovernmentbondsMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459khc:GovernmentbondsMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2022-12-310001637459khc:CorporatebondsandotherfixedincomesecuritiesMemberus-gaap:FairValueInputsLevel12And3Memberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459khc:CorporatebondsandotherfixedincomesecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459khc:CorporatebondsandotherfixedincomesecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459khc:CorporatebondsandotherfixedincomesecuritiesMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2022-12-310001637459us-gaap:FairValueInputsLevel12And3Memberus-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459us-gaap:FairValueInputsLevel1Memberus-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459us-gaap:FairValueInputsLevel2Memberus-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459us-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2022-12-310001637459us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel12And3Memberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459us-gaap:CashAndCashEquivalentsMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2022-12-310001637459us-gaap:RealEstateMemberus-gaap:FairValueInputsLevel12And3Memberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459us-gaap:FairValueInputsLevel1Memberus-gaap:RealEstateMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459us-gaap:FairValueInputsLevel2Memberus-gaap:RealEstateMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459us-gaap:RealEstateMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2022-12-310001637459us-gaap:FairValueInputsLevel12And3Memberus-gaap:PensionPlansDefinedBenefitMemberkhc:CertaininsurancecontractsMember2022-12-310001637459us-gaap:FairValueInputsLevel1Memberus-gaap:PensionPlansDefinedBenefitMemberkhc:CertaininsurancecontractsMember2022-12-310001637459us-gaap:FairValueInputsLevel2Memberus-gaap:PensionPlansDefinedBenefitMemberkhc:CertaininsurancecontractsMember2022-12-310001637459us-gaap:PensionPlansDefinedBenefitMemberkhc:CertaininsurancecontractsMemberus-gaap:FairValueInputsLevel3Member2022-12-310001637459khc:TotalDefinedBenefitPlanPlanAssetsMemberus-gaap:FairValueInputsLevel12And3Memberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459khc:TotalDefinedBenefitPlanPlanAssetsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459khc:TotalDefinedBenefitPlanPlanAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:PensionPlansDefinedBenefitMember2022-12-310001637459khc:TotalDefinedBenefitPlanPlanAssetsMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2022-12-310001637459us-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueMeasuredAtNetAssetValuePerShareMember2022-12-310001637459us-gaap:PensionPlansDefinedBenefitMemberkhc:CertaininsurancecontractsMemberus-gaap:FairValueInputsLevel3Member2023-01-012023-12-300001637459khc:TotalDefinedBenefitPlanPlanAssetsMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2023-01-012023-12-300001637459us-gaap:RealEstateMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2021-12-250001637459us-gaap:RealEstateMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2021-12-262022-12-310001637459us-gaap:PensionPlansDefinedBenefitMemberkhc:CertaininsurancecontractsMemberus-gaap:FairValueInputsLevel3Member2021-12-250001637459us-gaap:PensionPlansDefinedBenefitMemberkhc:CertaininsurancecontractsMemberus-gaap:FairValueInputsLevel3Member2021-12-262022-12-310001637459khc:TotalDefinedBenefitPlanPlanAssetsMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2021-12-250001637459khc:TotalDefinedBenefitPlanPlanAssetsMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2021-12-262022-12-310001637459us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-12-310001637459us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-12-250001637459us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-01-012023-12-300001637459us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-12-262022-12-310001637459us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-12-300001637459us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMembersrt:MinimumMember2023-01-012023-12-300001637459srt:MaximumMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-01-012023-12-300001637459us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-12-272021-12-250001637459us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FixedIncomeSecuritiesMember2023-12-300001637459us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FixedIncomeSecuritiesMember2022-12-310001637459us-gaap:EquitySecuritiesMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-12-300001637459us-gaap:EquitySecuritiesMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-12-310001637459us-gaap:CashAndCashEquivalentsMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-12-300001637459us-gaap:CashAndCashEquivalentsMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-12-310001637459us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberkhc:ReturnseekingassetsMember2023-12-300001637459us-gaap:FairValueInputsLevel12And3Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberkhc:GovernmentbondsMember2023-12-300001637459us-gaap:FairValueInputsLevel1Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberkhc:GovernmentbondsMember2023-12-300001637459us-gaap:FairValueInputsLevel2Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberkhc:GovernmentbondsMember2023-12-300001637459us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberkhc:GovernmentbondsMemberus-gaap:FairValueInputsLevel3Member2023-12-300001637459khc:CorporatebondsandotherfixedincomesecuritiesMemberus-gaap:FairValueInputsLevel12And3Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-12-300001637459khc:CorporatebondsandotherfixedincomesecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-12-300001637459khc:CorporatebondsandotherfixedincomesecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-12-300001637459khc:CorporatebondsandotherfixedincomesecuritiesMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2023-12-300001637459us-gaap:FairValueInputsLevel12And3Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FixedIncomeSecuritiesMember2023-12-300001637459us-gaap:FairValueInputsLevel1Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FixedIncomeSecuritiesMember2023-12-300001637459us-gaap:FairValueInputsLevel2Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FixedIncomeSecuritiesMember2023-12-300001637459us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-12-300001637459us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel12And3Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-12-300001637459us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-12-300001637459us-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-12-300001637459us-gaap:EquitySecuritiesMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2023-12-300001637459us-gaap:FairValueInputsLevel12And3Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:DefinedBenefitPlanCashAndCashEquivalentsMember2023-12-300001637459us-gaap:FairValueInputsLevel1Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:DefinedBenefitPlanCashAndCashEquivalentsMember2023-12-300001637459us-gaap:FairValueInputsLevel2Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:DefinedBenefitPlanCashAndCashEquivalentsMember2023-12-300001637459us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:DefinedBenefitPlanCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel3Member2023-12-300001637459us-gaap:FairValueInputsLevel12And3Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-12-300001637459us-gaap:FairValueInputsLevel1Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-12-300001637459us-gaap:FairValueInputsLevel2Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-12-300001637459us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2023-12-300001637459us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueMeasuredAtNetAssetValuePerShareMember2023-12-300001637459us-gaap:FairValueInputsLevel12And3Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberkhc:GovernmentbondsMember2022-12-310001637459us-gaap:FairValueInputsLevel1Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberkhc:GovernmentbondsMember2022-12-310001637459us-gaap:FairValueInputsLevel2Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberkhc:GovernmentbondsMember2022-12-310001637459us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberkhc:GovernmentbondsMemberus-gaap:FairValueInputsLevel3Member2022-12-310001637459khc:CorporatebondsandotherfixedincomesecuritiesMemberus-gaap:FairValueInputsLevel12And3Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-12-310001637459khc:CorporatebondsandotherfixedincomesecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-12-310001637459khc:CorporatebondsandotherfixedincomesecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-12-310001637459khc:CorporatebondsandotherfixedincomesecuritiesMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2022-12-310001637459us-gaap:FairValueInputsLevel12And3Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FixedIncomeSecuritiesMember2022-12-310001637459us-gaap:FairValueInputsLevel1Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FixedIncomeSecuritiesMember2022-12-310001637459us-gaap:FairValueInputsLevel2Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FixedIncomeSecuritiesMember2022-12-310001637459us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-12-310001637459us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel12And3Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-12-310001637459us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-12-310001637459us-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-12-310001637459us-gaap:EquitySecuritiesMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2022-12-310001637459us-gaap:FairValueInputsLevel12And3Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-12-310001637459us-gaap:FairValueInputsLevel1Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-12-310001637459us-gaap:FairValueInputsLevel2Memberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-12-310001637459us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel3Member2022-12-310001637459us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberus-gaap:FairValueMeasuredAtNetAssetValuePerShareMember2022-12-310001637459us-gaap:PensionPlansDefinedBenefitMember2023-01-012023-12-300001637459us-gaap:PensionPlansDefinedBenefitMember2020-12-272021-12-250001637459us-gaap:CommodityContractMember2023-12-300001637459us-gaap:CommodityContractMember2022-12-310001637459us-gaap:ForeignExchangeContractMember2023-12-300001637459us-gaap:ForeignExchangeContractMember2022-12-310001637459us-gaap:CurrencySwapMember2023-12-300001637459us-gaap:CurrencySwapMember2022-12-310001637459us-gaap:FairValueInputsLevel1Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2023-12-300001637459us-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2023-12-300001637459us-gaap:FairValueInputsLevel12And3Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2023-12-300001637459us-gaap:CurrencySwapMemberus-gaap:FairValueInputsLevel1Memberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-300001637459us-gaap:CurrencySwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-300001637459us-gaap:CurrencySwapMemberus-gaap:FairValueInputsLevel12And3Memberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-300001637459us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel1Member2023-12-300001637459us-gaap:NondesignatedMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CommodityContractMember2023-12-300001637459us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel12And3Member2023-12-300001637459us-gaap:NondesignatedMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ForeignExchangeContractMember2023-12-300001637459us-gaap:NondesignatedMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMember2023-12-300001637459us-gaap:NondesignatedMemberus-gaap:FairValueInputsLevel12And3Memberus-gaap:ForeignExchangeContractMember2023-12-300001637459us-gaap:FairValueInputsLevel1Member2023-12-300001637459us-gaap:FairValueInputsLevel2Member2023-12-300001637459us-gaap:FairValueInputsLevel12And3Member2023-12-300001637459us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2023-12-300001637459us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMember2023-12-300001637459us-gaap:OtherCurrentLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMember2023-12-300001637459us-gaap:FairValueInputsLevel2Memberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:ForeignExchangeContractMember2023-12-300001637459us-gaap:CurrencySwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherCurrentAssetsMember2023-12-300001637459us-gaap:CurrencySwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherNoncurrentAssetsMember2023-12-300001637459us-gaap:OtherCurrentLiabilitiesMemberus-gaap:CurrencySwapMemberus-gaap:FairValueInputsLevel2Member2023-12-300001637459us-gaap:CurrencySwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherNoncurrentLiabilitiesMember2023-12-300001637459us-gaap:OtherCurrentLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CommodityContractMember2023-12-300001637459us-gaap:FairValueInputsLevel2Memberus-gaap:CommodityContractMemberus-gaap:OtherNoncurrentLiabilitiesMember2023-12-300001637459us-gaap:FairValueInputsLevel1Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2022-12-310001637459us-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2022-12-310001637459us-gaap:FairValueInputsLevel12And3Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2022-12-310001637459us-gaap:CurrencySwapMemberus-gaap:FairValueInputsLevel1Memberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001637459us-gaap:CurrencySwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001637459us-gaap:CurrencySwapMemberus-gaap:FairValueInputsLevel12And3Memberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001637459us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel1Member2022-12-310001637459us-gaap:NondesignatedMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CommodityContractMember2022-12-310001637459us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel12And3Member2022-12-310001637459us-gaap:NondesignatedMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ForeignExchangeContractMember2022-12-310001637459us-gaap:NondesignatedMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMember2022-12-310001637459us-gaap:NondesignatedMemberus-gaap:FairValueInputsLevel12And3Memberus-gaap:ForeignExchangeContractMember2022-12-310001637459us-gaap:FairValueInputsLevel1Member2022-12-310001637459us-gaap:FairValueInputsLevel2Member2022-12-310001637459us-gaap:FairValueInputsLevel12And3Member2022-12-310001637459us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2022-12-310001637459us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMember2022-12-310001637459us-gaap:OtherCurrentLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMember2022-12-310001637459us-gaap:FairValueInputsLevel2Memberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:ForeignExchangeContractMember2022-12-310001637459us-gaap:CurrencySwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherCurrentAssetsMember2022-12-310001637459us-gaap:CurrencySwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherNoncurrentAssetsMember2022-12-310001637459us-gaap:OtherCurrentLiabilitiesMemberus-gaap:CurrencySwapMemberus-gaap:FairValueInputsLevel2Member2022-12-310001637459us-gaap:CurrencySwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherNoncurrentLiabilitiesMember2022-12-310001637459us-gaap:NetInvestmentHedgingMembercurrency:EURus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:DebtMember2023-12-300001637459us-gaap:NetInvestmentHedgingMembercurrency:GBPus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:DebtMember2023-12-30iso4217:GBP0001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CurrencySwapMembercurrency:CADus-gaap:DesignatedAsHedgingInstrumentMember2023-12-30iso4217:CAD0001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CurrencySwapMembercurrency:EURus-gaap:DesignatedAsHedgingInstrumentMember2023-12-300001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CurrencySwapMembercurrency:JPYus-gaap:DesignatedAsHedgingInstrumentMember2023-12-30iso4217:JPY0001637459us-gaap:NetInvestmentHedgingMemberus-gaap:OtherContractMembercurrency:EURus-gaap:DesignatedAsHedgingInstrumentMember2023-12-300001637459us-gaap:ForeignExchangeContractMember2023-01-012023-12-300001637459us-gaap:CurrencySwapMember2023-01-012023-12-300001637459us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberkhc:HemmerAcquisitionMember2021-12-262022-12-310001637459us-gaap:CashFlowHedgingMemberus-gaap:SalesMemberus-gaap:ForeignExchangeContractMember2023-01-012023-12-300001637459us-gaap:CashFlowHedgingMemberus-gaap:SalesMemberus-gaap:ForeignExchangeContractMember2021-12-262022-12-310001637459us-gaap:CashFlowHedgingMemberus-gaap:SalesMemberus-gaap:ForeignExchangeContractMember2020-12-272021-12-250001637459us-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMemberus-gaap:ForeignExchangeContractMember2023-01-012023-12-300001637459us-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMemberus-gaap:ForeignExchangeContractMember2021-12-262022-12-310001637459us-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMemberus-gaap:ForeignExchangeContractMember2020-12-272021-12-250001637459us-gaap:CashFlowHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:ForeignExchangeContractMember2023-01-012023-12-300001637459us-gaap:CashFlowHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:ForeignExchangeContractMember2021-12-262022-12-310001637459us-gaap:CashFlowHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:ForeignExchangeContractMember2020-12-272021-12-250001637459us-gaap:CashFlowHedgingMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ForeignExchangeContractMember2023-01-012023-12-300001637459us-gaap:CashFlowHedgingMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ForeignExchangeContractMember2021-12-262022-12-310001637459us-gaap:CashFlowHedgingMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ForeignExchangeContractMember2020-12-272021-12-250001637459us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherNonoperatingIncomeExpenseMember2023-01-012023-12-300001637459us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherNonoperatingIncomeExpenseMember2021-12-262022-12-310001637459us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherNonoperatingIncomeExpenseMember2020-12-272021-12-250001637459us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMember2023-01-012023-12-300001637459us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMember2021-12-262022-12-310001637459us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMember2020-12-272021-12-250001637459us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMember2023-01-012023-12-300001637459us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMember2021-12-262022-12-310001637459us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMember2020-12-272021-12-250001637459us-gaap:NetInvestmentHedgingMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ForeignExchangeContractMember2023-01-012023-12-300001637459us-gaap:NetInvestmentHedgingMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ForeignExchangeContractMember2021-12-262022-12-310001637459us-gaap:NetInvestmentHedgingMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ForeignExchangeContractMember2020-12-272021-12-250001637459us-gaap:NetInvestmentHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2023-01-012023-12-300001637459us-gaap:NetInvestmentHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2021-12-262022-12-310001637459us-gaap:NetInvestmentHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2020-12-272021-12-250001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CurrencySwapMemberus-gaap:OtherNonoperatingIncomeExpenseMember2023-01-012023-12-300001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CurrencySwapMemberus-gaap:OtherNonoperatingIncomeExpenseMember2021-12-262022-12-310001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CurrencySwapMemberus-gaap:OtherNonoperatingIncomeExpenseMember2020-12-272021-12-250001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CurrencySwapMemberus-gaap:InterestExpenseMember2023-01-012023-12-300001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CurrencySwapMemberus-gaap:InterestExpenseMember2021-12-262022-12-310001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CurrencySwapMemberus-gaap:InterestExpenseMember2020-12-272021-12-250001637459us-gaap:CostOfSalesMember2023-01-012023-12-300001637459us-gaap:InterestExpenseMember2023-01-012023-12-300001637459us-gaap:OtherNonoperatingIncomeExpenseMember2023-01-012023-12-300001637459us-gaap:CostOfSalesMember2021-12-262022-12-310001637459us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-12-262022-12-310001637459us-gaap:InterestExpenseMember2021-12-262022-12-310001637459us-gaap:OtherNonoperatingIncomeExpenseMember2021-12-262022-12-310001637459us-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2023-01-012023-12-300001637459us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2023-01-012023-12-300001637459us-gaap:CashFlowHedgingMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2023-01-012023-12-300001637459us-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2021-12-262022-12-310001637459us-gaap:CashFlowHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2021-12-262022-12-310001637459us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2021-12-262022-12-310001637459us-gaap:CashFlowHedgingMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2021-12-262022-12-310001637459us-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-12-300001637459us-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMember2023-01-012023-12-300001637459us-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-12-300001637459us-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-262022-12-310001637459us-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-262022-12-310001637459us-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMember2021-12-262022-12-310001637459us-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-262022-12-310001637459us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-12-300001637459us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMember2023-01-012023-12-300001637459us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-12-300001637459us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-262022-12-310001637459us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-262022-12-310001637459us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMember2021-12-262022-12-310001637459us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-262022-12-310001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CostOfSalesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2023-01-012023-12-300001637459us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2023-01-012023-12-300001637459us-gaap:NetInvestmentHedgingMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2023-01-012023-12-300001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CostOfSalesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2021-12-262022-12-310001637459us-gaap:NetInvestmentHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2021-12-262022-12-310001637459us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2021-12-262022-12-310001637459us-gaap:NetInvestmentHedgingMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2021-12-262022-12-310001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CurrencySwapMemberus-gaap:CostOfSalesMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-12-300001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CurrencySwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMember2023-01-012023-12-300001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CurrencySwapMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-12-300001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CurrencySwapMemberus-gaap:CostOfSalesMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-262022-12-310001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CurrencySwapMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-262022-12-310001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CurrencySwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMember2021-12-262022-12-310001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CurrencySwapMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-262022-12-310001637459us-gaap:NondesignatedMemberus-gaap:CostOfSalesMemberus-gaap:CommodityContractMember2023-01-012023-12-300001637459us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberus-gaap:InterestExpenseMember2023-01-012023-12-300001637459us-gaap:NondesignatedMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:CommodityContractMember2023-01-012023-12-300001637459us-gaap:NondesignatedMemberus-gaap:CostOfSalesMemberus-gaap:CommodityContractMember2021-12-262022-12-310001637459us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-12-262022-12-310001637459us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberus-gaap:InterestExpenseMember2021-12-262022-12-310001637459us-gaap:NondesignatedMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:CommodityContractMember2021-12-262022-12-310001637459us-gaap:NondesignatedMemberus-gaap:CostOfSalesMemberus-gaap:ForeignExchangeContractMember2023-01-012023-12-300001637459us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2023-01-012023-12-300001637459us-gaap:NondesignatedMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ForeignExchangeContractMember2023-01-012023-12-300001637459us-gaap:NondesignatedMemberus-gaap:CostOfSalesMemberus-gaap:ForeignExchangeContractMember2021-12-262022-12-310001637459us-gaap:NondesignatedMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:ForeignExchangeContractMember2021-12-262022-12-310001637459us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2021-12-262022-12-310001637459us-gaap:NondesignatedMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ForeignExchangeContractMember2021-12-262022-12-310001637459us-gaap:NondesignatedMemberus-gaap:CurrencySwapMemberus-gaap:CostOfSalesMember2023-01-012023-12-300001637459us-gaap:NondesignatedMemberus-gaap:CurrencySwapMemberus-gaap:InterestExpenseMember2023-01-012023-12-300001637459us-gaap:NondesignatedMemberus-gaap:CurrencySwapMemberus-gaap:OtherNonoperatingIncomeExpenseMember2023-01-012023-12-300001637459us-gaap:NondesignatedMemberus-gaap:CurrencySwapMemberus-gaap:CostOfSalesMember2021-12-262022-12-310001637459us-gaap:NondesignatedMemberus-gaap:CurrencySwapMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-12-262022-12-310001637459us-gaap:NondesignatedMemberus-gaap:CurrencySwapMemberus-gaap:InterestExpenseMember2021-12-262022-12-310001637459us-gaap:NondesignatedMemberus-gaap:CurrencySwapMemberus-gaap:OtherNonoperatingIncomeExpenseMember2021-12-262022-12-310001637459us-gaap:SalesMember2020-12-272021-12-250001637459us-gaap:CostOfSalesMember2020-12-272021-12-250001637459us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-12-272021-12-250001637459us-gaap:InterestExpenseMember2020-12-272021-12-250001637459us-gaap:OtherNonoperatingIncomeExpenseMember2020-12-272021-12-250001637459us-gaap:CashFlowHedgingMemberus-gaap:SalesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2020-12-272021-12-250001637459us-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2020-12-272021-12-250001637459us-gaap:CashFlowHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2020-12-272021-12-250001637459us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2020-12-272021-12-250001637459us-gaap:CashFlowHedgingMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2020-12-272021-12-250001637459us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-272021-12-250001637459us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-272021-12-250001637459us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMember2020-12-272021-12-250001637459us-gaap:CurrencySwapMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-272021-12-250001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CostOfSalesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2020-12-272021-12-250001637459us-gaap:NetInvestmentHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2020-12-272021-12-250001637459us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2020-12-272021-12-250001637459us-gaap:NetInvestmentHedgingMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2020-12-272021-12-250001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CurrencySwapMemberus-gaap:CostOfSalesMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-272021-12-250001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CurrencySwapMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-272021-12-250001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CurrencySwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMember2020-12-272021-12-250001637459us-gaap:NetInvestmentHedgingMemberus-gaap:CurrencySwapMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-272021-12-250001637459us-gaap:NondesignatedMemberus-gaap:CostOfSalesMemberus-gaap:CommodityContractMember2020-12-272021-12-250001637459us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-12-272021-12-250001637459us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberus-gaap:InterestExpenseMember2020-12-272021-12-250001637459us-gaap:NondesignatedMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:CommodityContractMember2020-12-272021-12-250001637459us-gaap:NondesignatedMemberus-gaap:CostOfSalesMemberus-gaap:ForeignExchangeContractMember2020-12-272021-12-250001637459us-gaap:NondesignatedMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:ForeignExchangeContractMember2020-12-272021-12-250001637459us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2020-12-272021-12-250001637459us-gaap:NondesignatedMemberus-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ForeignExchangeContractMember2020-12-272021-12-250001637459us-gaap:NondesignatedMemberus-gaap:CurrencySwapMemberus-gaap:CostOfSalesMember2020-12-272021-12-250001637459us-gaap:NondesignatedMemberus-gaap:CurrencySwapMemberus-gaap:InterestExpenseMember2020-12-272021-12-250001637459us-gaap:NondesignatedMemberus-gaap:CurrencySwapMemberus-gaap:OtherNonoperatingIncomeExpenseMember2020-12-272021-12-250001637459us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:DebtMember2023-01-012023-12-300001637459us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:DebtMember2021-12-262022-12-310001637459us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:DebtMember2020-12-272021-12-250001637459us-gaap:AccumulatedTranslationAdjustmentMember2020-12-260001637459us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-260001637459us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-12-260001637459us-gaap:AccumulatedTranslationAdjustmentMember2020-12-272021-12-250001637459khc:AccumulatedGainLossNetNetInvestmentHedgeParentMember2020-12-272021-12-250001637459us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-12-272021-12-250001637459us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2020-12-272021-12-250001637459us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-272021-12-250001637459us-gaap:AccumulatedTranslationAdjustmentMember2021-12-250001637459us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-250001637459us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-250001637459us-gaap:AccumulatedTranslationAdjustmentMember2021-12-262022-12-310001637459khc:AccumulatedGainLossNetNetInvestmentHedgeParentMember2021-12-262022-12-310001637459us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-262022-12-310001637459us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2021-12-262022-12-310001637459us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-262022-12-310001637459us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310001637459us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310001637459us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-12-310001637459us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-12-300001637459khc:AccumulatedGainLossNetNetInvestmentHedgeParentMember2023-01-012023-12-300001637459us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-12-300001637459us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2023-01-012023-12-300001637459us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-12-300001637459us-gaap:AccumulatedTranslationAdjustmentMember2023-12-300001637459us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-12-300001637459us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-12-300001637459khc:AccumulatedGainLossNetNetInvestmentHedgeParentMemberus-gaap:ForeignExchangeContractMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-300001637459khc:AccumulatedGainLossNetNetInvestmentHedgeParentMemberus-gaap:ForeignExchangeContractMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-12-262022-12-310001637459khc:AccumulatedGainLossNetNetInvestmentHedgeParentMemberus-gaap:ForeignExchangeContractMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-12-272021-12-250001637459us-gaap:CurrencySwapMemberkhc:AccumulatedGainLossNetNetInvestmentHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-300001637459us-gaap:CurrencySwapMemberkhc:AccumulatedGainLossNetNetInvestmentHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-12-262022-12-310001637459us-gaap:CurrencySwapMemberkhc:AccumulatedGainLossNetNetInvestmentHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-12-272021-12-250001637459us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ForeignExchangeContractMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-300001637459us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ForeignExchangeContractMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-12-262022-12-310001637459us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ForeignExchangeContractMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-12-272021-12-250001637459us-gaap:CurrencySwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-300001637459us-gaap:CurrencySwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-12-262022-12-310001637459us-gaap:CurrencySwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-12-272021-12-250001637459us-gaap:InterestRateContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-300001637459us-gaap:InterestRateContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-12-262022-12-310001637459us-gaap:InterestRateContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-12-272021-12-250001637459us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberkhc:AccumulatedGainLossNetHedgeParentMember2023-01-012023-12-300001637459us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberkhc:AccumulatedGainLossNetHedgeParentMember2021-12-262022-12-310001637459us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberkhc:AccumulatedGainLossNetHedgeParentMember2020-12-272021-12-250001637459us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-300001637459us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-12-262022-12-310001637459us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-12-272021-12-250001637459us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-300001637459us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-12-262022-12-310001637459us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-12-272021-12-250001637459khc:AccumulatedDefinedBenefitPlansAdjustmentSettlementAndCurtailmentAttributableToParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-300001637459khc:AccumulatedDefinedBenefitPlansAdjustmentSettlementAndCurtailmentAttributableToParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-12-262022-12-310001637459khc:AccumulatedDefinedBenefitPlansAdjustmentSettlementAndCurtailmentAttributableToParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-12-272021-12-250001637459us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-12-300001637459us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-262022-12-310001637459us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-272021-12-250001637459srt:MinimumMember2023-12-300001637459srt:MaximumMember2023-12-300001637459us-gaap:SettledLitigationMemberkhc:SECInvestigationMember2020-12-272021-12-250001637459us-gaap:RevolvingCreditFacilityMember2022-07-080001637459khc:LineOfCreditFacilityRevolvingCreditFacilitySubLimitForBorrowingsInAlternativeCurrenciesMember2022-07-080001637459khc:SwinglineSubFacilityMember2022-07-080001637459us-gaap:LetterOfCreditMember2022-07-080001637459khc:RevolvingCommitmentsAndorTermLoansMember2022-07-0800016374592022-07-080001637459us-gaap:RevolvingCreditFacilityMember2021-12-262022-12-310001637459us-gaap:RevolvingCreditFacilityMember2023-01-012023-12-300001637459us-gaap:RevolvingCreditFacilityMember2023-12-300001637459us-gaap:RevolvingCreditFacilityMember2022-12-310001637459us-gaap:CommercialPaperMember2023-12-300001637459us-gaap:CommercialPaperMember2022-12-310001637459us-gaap:CommercialPaperMember2023-01-012023-12-300001637459us-gaap:CommercialPaperMember2021-12-262022-12-310001637459khc:OtherU.S.dollarnotesMembersrt:MinimumMember2023-12-300001637459khc:OtherU.S.dollarnotesMembersrt:MaximumMember2023-12-300001637459khc:OtherU.S.dollarnotesMember2023-12-300001637459khc:OtherU.S.dollarnotesMember2022-12-310001637459khc:EuronotesMembersrt:MinimumMember2023-12-300001637459srt:MaximumMemberkhc:EuronotesMember2023-12-300001637459khc:EuronotesMember2023-12-300001637459khc:EuronotesMember2022-12-310001637459khc:PoundSterlingSeniorNotesDue2030Member2023-12-300001637459khc:PoundSterlingSeniorNotesDue2030Member2022-12-310001637459khc:OtherBritishpoundsterlingnotesMember2023-12-300001637459khc:OtherBritishpoundsterlingnotesMember2022-12-310001637459khc:OtherlongtermdebtMembersrt:MinimumMember2023-12-300001637459khc:OtherlongtermdebtMembersrt:MaximumMember2023-12-300001637459khc:OtherlongtermdebtMember2023-12-300001637459khc:OtherlongtermdebtMember2022-12-310001637459us-gaap:SeniorNotesMemberkhc:A2022RepurchasesSeniorNotesMember2021-12-262022-12-310001637459khc:Q22022RepurchasesSeniorNotesMemberus-gaap:SeniorNotesMember2022-03-272022-06-250001637459khc:Q32022RepurchasesSeniorNotesMemberus-gaap:SeniorNotesMember2022-06-262022-09-240001637459khc:Q32022RepurchasesSeniorNotesMemberus-gaap:SeniorNotesMember2022-09-252022-12-310001637459khc:A2022RepurchasesSeniorNotesMember2021-12-262022-12-310001637459khc:Q22022RepurchasesSeniorNotesMember2022-03-272022-06-250001637459khc:Q32022RepurchasesSeniorNotesMember2022-06-262022-09-240001637459khc:Q32022RepurchasesSeniorNotesMember2022-09-252022-12-310001637459khc:Q22022RepurchasesSeniorNotesMember2021-12-262022-12-310001637459us-gaap:SeniorNotesMemberkhc:A2022RepurchasesSeniorNotesMember2020-12-272021-12-250001637459khc:Q22022RepurchasesSeniorNotesMemberus-gaap:SeniorNotesMember2021-03-282021-06-260001637459khc:Q32022RepurchasesSeniorNotesMemberus-gaap:SeniorNotesMember2021-06-272021-09-250001637459khc:Q32022RepurchasesSeniorNotesMemberus-gaap:SeniorNotesMember2021-09-262021-12-250001637459khc:A2022RepurchasesSeniorNotesMember2020-12-272021-12-250001637459khc:A2021RepurchasesSeniorNotesMember2020-12-272021-12-250001637459khc:Q22022RepurchasesSeniorNotesMember2020-12-272021-12-250001637459srt:MaximumMemberkhc:Q12021TenderOfferSeniorNotesMemberus-gaap:SeniorNotesMember2021-03-092021-03-090001637459khc:SeniorNotesDueJuly2025Memberus-gaap:SeniorNotesMember2023-12-300001637459khc:SeniorNotesDueJune2026Memberus-gaap:SeniorNotesMember2023-12-300001637459khc:SeniorNotesDueJune2023Memberus-gaap:SeniorNotesMember2023-12-300001637459khc:SeniorNotesDueJune2022Memberus-gaap:SeniorNotesMember2023-12-300001637459khc:Q12021TenderOfferSeniorNotesMemberus-gaap:SeniorNotesMember2021-03-092021-03-090001637459srt:MaximumMemberkhc:Q22021TenderOfferSeniorNotesMemberus-gaap:SeniorNotesMember2021-06-012021-06-260001637459khc:SeniorNotesDueJune2042Memberus-gaap:SeniorNotesMember2023-12-300001637459khc:SeniorNotesDueJuly2035Memberus-gaap:SeniorNotesMember2023-12-300001637459khc:SeniorNotesDueJanuary2029Memberus-gaap:SeniorNotesMember2023-12-300001637459khc:SeniorNotesDueOctober2039Memberus-gaap:SeniorNotesMember2023-12-300001637459khc:SeniorNotesDueApril2030Memberus-gaap:SeniorNotesMember2023-12-300001637459khc:SeniorNotesDueFebruary2040Memberus-gaap:SeniorNotesMember2023-12-300001637459khc:SeniorNotesDueJuly2028Memberus-gaap:SeniorNotesMember2023-12-300001637459us-gaap:SeniorNotesMemberkhc:SeniorNotesDueMarch2032Member2023-12-300001637459khc:SeniorNotesDueJanuary2039Memberus-gaap:SeniorNotesMember2023-12-300001637459khc:SeniorNotesDueAugust2039Memberus-gaap:SeniorNotesMember2023-12-300001637459khc:Q22021TenderOfferSeniorNotesMemberus-gaap:SeniorNotesMember2021-06-012021-06-260001637459srt:MaximumMemberkhc:Q42021TenderOfferSeniorNotesMemberus-gaap:SeniorNotesMember2021-12-062021-12-060001637459khc:SeniorNotesDueMarch2031Memberus-gaap:SeniorNotesMember2023-12-300001637459khc:SeniorNotesDueJuly2045Memberus-gaap:SeniorNotesMember2023-12-300001637459khc:SeniorNotesDueJune2050Memberus-gaap:SeniorNotesMember2023-12-300001637459khc:SeniorNotesDueOctober2049Memberus-gaap:SeniorNotesMember2023-12-300001637459khc:Q42021TenderOfferSeniorNotesMemberus-gaap:SeniorNotesMember2021-12-062021-12-060001637459khc:A2021TenderOffersSeniorNotesMember2020-12-272021-12-250001637459khc:SeniorNotesDueJune2023Memberkhc:A2021DebtRedemptionSeniorNotesMemberus-gaap:SeniorNotesMember2021-04-012021-04-010001637459khc:SeniorNotesDueJuly2025Memberus-gaap:SeniorNotesMember2021-06-262021-06-260001637459khc:A2021DebtRedemptionSeniorNotesMember2021-12-262022-12-310001637459khc:SeniorNotesDueMay2025Memberus-gaap:SeniorNotesMember2023-05-310001637459khc:SeniorNotesDueJune2023Memberus-gaap:SeniorNotesMember2023-05-012023-05-310001637459khc:SeniorNotesDueJune2023Memberus-gaap:SeniorNotesMember2023-06-012023-06-300001637459us-gaap:SeniorNotesMemberkhc:SeniorNotesDueInMarch2022Member2022-03-012022-03-260001637459khc:SeniorNotesDueJune2022Memberus-gaap:SeniorNotesMember2022-06-012022-06-250001637459khc:SeniorNotesDueInAugust2022Memberus-gaap:SeniorNotesMember2022-08-012022-08-270001637459khc:SeniorNotesDueInFebruary2021Memberus-gaap:SeniorNotesMember2021-02-012021-02-280001637459khc:SeniorNotesDueInSeptember2021Memberus-gaap:SeniorNotesMember2021-09-012021-09-2500016374592023-06-300001637459khc:NorthAmericaSegmentMember2020-12-272021-12-250001637459khc:TasteElevationMember2023-01-012023-12-300001637459khc:TasteElevationMember2021-12-262022-12-310001637459khc:TasteElevationMember2020-12-272021-12-250001637459khc:FastFreshMealsMember2023-01-012023-12-300001637459khc:FastFreshMealsMember2021-12-262022-12-310001637459khc:FastFreshMealsMember2020-12-272021-12-250001637459khc:EasyMealsMadeBetterMember2023-01-012023-12-300001637459khc:EasyMealsMadeBetterMember2021-12-262022-12-310001637459khc:EasyMealsMadeBetterMember2020-12-272021-12-250001637459khc:RealFoodSnackingMember2023-01-012023-12-300001637459khc:RealFoodSnackingMember2021-12-262022-12-310001637459khc:RealFoodSnackingMember2020-12-272021-12-250001637459khc:FlavorfulHydrationMember2023-01-012023-12-300001637459khc:FlavorfulHydrationMember2021-12-262022-12-310001637459khc:FlavorfulHydrationMember2020-12-272021-12-250001637459khc:EasyIndulgentDessertsMember2023-01-012023-12-300001637459khc:EasyIndulgentDessertsMember2021-12-262022-12-310001637459khc:EasyIndulgentDessertsMember2020-12-272021-12-250001637459khc:OtherPlatformMember2023-01-012023-12-300001637459khc:OtherPlatformMember2021-12-262022-12-310001637459khc:OtherPlatformMember2020-12-272021-12-250001637459khc:CondimentsandSaucesMember2023-01-012023-12-300001637459khc:CondimentsandSaucesMember2021-12-262022-12-310001637459khc:CondimentsandSaucesMember2020-12-272021-12-250001637459khc:CheeseanddairyMember2023-01-012023-12-300001637459khc:CheeseanddairyMember2021-12-262022-12-310001637459khc:CheeseanddairyMember2020-12-272021-12-250001637459khc:AmbientmealsMember2023-01-012023-12-300001637459khc:AmbientmealsMember2021-12-262022-12-310001637459khc:AmbientmealsMember2020-12-272021-12-250001637459khc:FrozenandchilledmealsMember2023-01-012023-12-300001637459khc:FrozenandchilledmealsMember2021-12-262022-12-310001637459khc:FrozenandchilledmealsMember2020-12-272021-12-250001637459khc:MeatsandseafoodMember2023-01-012023-12-300001637459khc:MeatsandseafoodMember2021-12-262022-12-310001637459khc:MeatsandseafoodMember2020-12-272021-12-250001637459khc:RefreshmentbeveragesMember2023-01-012023-12-300001637459khc:RefreshmentbeveragesMember2021-12-262022-12-310001637459khc:RefreshmentbeveragesMember2020-12-272021-12-250001637459khc:CoffeeMember2023-01-012023-12-300001637459khc:CoffeeMember2021-12-262022-12-310001637459khc:CoffeeMember2020-12-272021-12-250001637459khc:InfantandnutritionMember2023-01-012023-12-300001637459khc:InfantandnutritionMember2021-12-262022-12-310001637459khc:InfantandnutritionMember2020-12-272021-12-250001637459khc:DessertstoppingsandbakingMember2023-01-012023-12-300001637459khc:DessertstoppingsandbakingMember2021-12-262022-12-310001637459khc:DessertstoppingsandbakingMember2020-12-272021-12-250001637459khc:NutsandsaltedsnacksMember2023-01-012023-12-300001637459khc:NutsandsaltedsnacksMember2021-12-262022-12-310001637459khc:NutsandsaltedsnacksMember2020-12-272021-12-250001637459khc:OtherproductsMember2023-01-012023-12-300001637459khc:OtherproductsMember2021-12-262022-12-310001637459khc:OtherproductsMember2020-12-272021-12-250001637459khc:WalmartIncMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2023-01-012023-12-300001637459khc:WalmartIncMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2020-12-272021-12-250001637459country:US2023-01-012023-12-300001637459country:US2021-12-262022-12-310001637459country:US2020-12-272021-12-250001637459country:CA2023-01-012023-12-300001637459country:CA2021-12-262022-12-310001637459country:CA2020-12-272021-12-250001637459country:GB2023-01-012023-12-300001637459country:GB2021-12-262022-12-310001637459country:GB2020-12-272021-12-250001637459khc:OtherGeographicalAreasMember2023-01-012023-12-300001637459khc:OtherGeographicalAreasMember2021-12-262022-12-310001637459khc:OtherGeographicalAreasMember2020-12-272021-12-250001637459country:US2023-12-300001637459country:US2022-12-310001637459us-gaap:NonUsMember2023-12-300001637459us-gaap:NonUsMember2022-12-3100016374592023-10-012023-12-300001637459us-gaap:AllowanceForCreditLossMember2022-12-310001637459us-gaap:AllowanceForCreditLossMember2023-01-012023-12-300001637459us-gaap:AllowanceForCreditLossMember2023-12-300001637459us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2022-12-310001637459us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2023-01-012023-12-300001637459us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2023-12-300001637459us-gaap:AllowanceForCreditLossMember2021-12-250001637459us-gaap:AllowanceForCreditLossMember2021-12-262022-12-310001637459us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2021-12-250001637459us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2021-12-262022-12-310001637459us-gaap:AllowanceForCreditLossMember2020-12-260001637459us-gaap:AllowanceForCreditLossMember2020-12-272021-12-250001637459us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2020-12-260001637459us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2020-12-272021-12-25


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-K
(Mark One)
 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 30, 2023
or
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________

Commission File Number 001-37482
kraftheinzlogo56.jpg
The Kraft Heinz Company
(Exact name of registrant as specified in its charter)
Delaware 46-2078182
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
One PPG Place,Pittsburgh,Pennsylvania 15222
(Address of Principal Executive Offices)(Zip Code)

Registrant’s telephone number, including area code: (412) 456-5700

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of exchange on which registered
Common stock, $0.01 par valueKHCThe Nasdaq Stock Market LLC
Floating Rate Senior Notes due 2025KHC25The Nasdaq Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act:
None.
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes  No 
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes  No 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to § 240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No
The aggregate market value of the shares of common stock held by non-affiliates of the registrant, computed by reference to the closing price of such stock as of the last business day of the registrant’s most recently completed second quarter, was approximately $32.1 billion. As of February 10, 2024, there were 1,213,099,787 shares of the registrant’s common stock outstanding.
Documents Incorporated by Reference
Portions of the registrant's definitive proxy statement to be filed with the Securities and Exchange Commission in connection with its annual meeting of stockholders expected to be held on May 2, 2024 are incorporated by reference into Part III hereof.



Table of Contents



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
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 benefits from strategic acquisitions, divestitures, alliances, joint ventures, or investments; our ability to successfully execute our strategic initiatives; the impacts of our international operations; our ability to protect intellectual property rights; 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; the influence of our largest stockholder; our level of 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; compliance with laws and regulations and related legal claims or regulatory enforcement actions; failure to maintain an effective system of internal controls; a downgrade in our credit rating; the impact of sales of our common stock in the public market; the impact of our share repurchases or any change in our share repurchase activity; our ability to continue to pay a regular dividend and the amounts of any such dividends; disruptions in the global economy caused by geopolitical conflicts, unanticipated business disruptions and natural events in the locations in which we or our customers, suppliers, distributors, or regulators operate; economic and political conditions in the United States and various other nations where we do business (including inflationary pressures, instability in financial institutions, general economic slowdown, recession, or a potential U.S. federal government shutdown); 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; our dependence on information technology and systems, including service interruptions, misappropriation of data, or breaches of security; increased pension, labor, and people-related expenses; changes in tax laws and interpretations and the final determination of tax audits, including transfer pricing matters, and any related litigation; volatility of capital markets and other macroeconomic factors; and other factors. For additional information on these and other factors that could affect our forward-looking statements, see Item 1A, Risk Factors. We disclaim and do not undertake any obligation to update, revise, or withdraw any forward-looking statement in this report, except as required by applicable law or regulation.



PART I
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”), and Asia Emerging Markets (“AEM”) — in order to enable enhanced focus on the different strategies required for each of these regions as part of our long-term strategic plan.
As a result of these changes, we expect to have two reportable segments: North America and International Developed Markets. We anticipate that our remaining operating segments, consisting of WEEM and AEM, will be combined and disclosed as Emerging Markets. We expect that the change to our reportable segments will be effective in the first quarter of 2024.
See Note 20, Segment Reporting, in Item 8, Financial Statements and Supplementary Data, for our geographic financial information by segment.
Resources
Trademarks and Intellectual Property:
Our trademarks are material to our business and are among our most valuable assets. Depending on the country, trademarks generally remain valid for as long as they are in use or their registration status is maintained. Significant trademarks by segment based on net sales in 2023 were:
Majority Owned and Licensed Trademarks
North AmericaKraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Capri Sun*, Maxwell House, Kool-Aid, Jell-O
InternationalHeinz, ABC, Master, Quero, Kraft, Golden Circle, Wattie’s, Pudliszki, Plasmon
    *Used under license.
We sell certain products under brands we license from third parties. In 2023, brands used under licenses from third parties included Capri Sun packaged drink pouches for sale in our North America segment. We also grant certain licenses to third parties to use our intellectual property rights in select jurisdictions. In 2021, in our agreements with an affiliate of Groupe Lactalis (“Lactalis”), related to the sale of certain assets in our global cheese business, we each granted the other party various licenses to use certain of our and their respective intellectual property rights in perpetuity, including perpetual licenses for the Kraft and Velveeta brands for certain cheese products.
We also own numerous patents worldwide. We consider our portfolio of patents, patent applications, patent licenses under patents owned by third parties, proprietary trade secrets, technology, know-how processes, and related intellectual property rights to be material to our operations. Patents, issued or applied for, cover inventions ranging from packaging techniques to processes relating to specific products and to the products themselves. While our patent portfolio is material to our business, the loss of one patent or a group of related patents would not have a material adverse effect on our business.
1


Our issued patents extend for varying periods according to the date of the patent application filing or grant and the legal term of patents in the various countries where patent protection is obtained. The actual protection afforded by a patent, which can vary from country to country, depends upon the type of patent, the scope of its coverage as determined by the patent office or courts in the country, and the availability of legal remedies in the country.
Raw Materials and Packaging:
We manufacture (and contract for the manufacture of) our products from a wide variety of raw materials. We purchase and use large quantities of commodities, including dairy products, meat products, tomato products, soybean and vegetable oils, sugar and other sweeteners, coffee beans, wheat and processed grains, eggs, and other fruits and vegetables to manufacture our products. In addition, we purchase and use significant quantities of resins, fiberboard, metals, and cardboard to package our products, and we use electricity, diesel fuel, and natural gas in the manufacturing and distribution of our products. For commodities that we use across many of our product categories, such as corrugated paper and energy, we coordinate sourcing requirements and centralize procurement to leverage our scale. In addition, some of our product lines and brands separately source raw materials that are specific to their operations. We source these commodities from a variety of providers, including large, international producers and smaller, local, independent sellers. Where appropriate, we seek to establish preferred purchaser status and have developed strategic partnerships with many of our suppliers with the objective of achieving favorable pricing and dependable supply for many of our commodities. The prices of raw materials that we use in our products are affected by external factors, such as global competition for resources, currency fluctuations, severe weather or global climate change, pandemics, geopolitical conflicts, consumer, industrial, or investment demand, and changes in governmental regulation and trade, tariffs, alternative energy, and agricultural programs. In 2023, we continued to experience higher commodity costs and supply chain costs, including manufacturing, procurement, and logistics costs largely due to inflationary pressures concentrated in the first half of the year.
Our procurement teams monitor worldwide supply and cost trends so we can obtain ingredients and packaging needed for production at competitive prices. Although the prices of our principal raw materials can be expected to fluctuate, we believe there will be an adequate supply of the raw materials we use and that they are generally available from numerous sources. We use a range of 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. We actively monitor changes to commodity costs so that we can seek to mitigate the effect through pricing and other operational measures.
Research and Development
Our research and development efforts focus on achieving the following four objectives:
product innovations, renovations, and new technologies to meet changing consumer needs, support our environmental and sustainability goals, and drive growth;
world-class and uncompromising food safety, quality, and consistency;
superior, consumer-preferred product and package performance; and
continuous process, product, and supply chain optimization.
Competition
Our products are sold in highly competitive marketplaces, which continue to experience increased concentration and the growing presence of e-commerce retailers, large-format retailers, and discounters. Our competitors include large national and international food and beverage companies and numerous local and regional companies. We compete with both branded and private label products sold by retailers, wholesalers, and cooperatives. We compete on the basis of product innovation, price, product quality, nutritional value, service, taste, convenience, brand recognition and loyalty, effectiveness of marketing and distribution, promotional activity, and the ability to identify and satisfy changing consumer preferences. Improving our market position or introducing new products requires substantial advertising and promotional expenditures.
2


Sales
Sales and Customers:
Our products are sold through our own sales organizations and through independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience, value, and club stores; pharmacies and drug stores; mass merchants; foodservice distributors; and institutions, including hotels, restaurants, bakeries, hospitals, health care facilities, and government agencies. Our products are also sold online through various e-commerce platforms and retailers.
We have key customers in different regions around the world. In 2023, the five largest customers in our North America segment accounted for approximately 46% of North America segment net sales and the five largest customers in our International segment accounted for approximately 14% of International segment net sales. Our largest customer, Walmart Inc., represented approximately 21% of our net sales in 2023 and 2022, and approximately 22% of our net sales in 2021. Both of our segments have sales to Walmart Inc.
As of December 30, 2023, we manage our sales portfolio through six consumer-driven product platforms. A platform is a lens created for the portfolio based on a grouping of real consumer needs and includes the following for Kraft Heinz: Taste Elevation, Fast Fresh Meals, Easy Meals Made Better, Real Food Snacking, Flavorful Hydration, and Easy Indulgent Desserts. The platforms are modular and configurable by reportable segment and market and help us to manage and organize our business effectively by providing insight into our various product categories and brands. Further, each platform is assigned a role within our business to help inform our resource allocation and investment decisions, which are made at the reportable segment level. These roles include: Grow, Energize, and Stabilize. The role of a platform may also vary by reportable segment and market. We are currently evaluating our existing platforms and roles and anticipate changes to align with our future growth strategy.
Net Sales by Platform:
Net sales by platform as a percentage of consolidated net sales for the periods presented were:
December 30, 2023December 31, 2022December 25, 2021
Taste Elevation34 %31 %28 %
Fast Fresh Meals22 %23 %25 %
Easy Meals Made Better20 %20 %19 %
Real Food Snacking%%%
Flavorful Hydration%%%
Easy Indulgent Desserts%%%
Other%%10 %
Net Sales by Product Category:
The product categories that contributed 10% or more to consolidated net sales in any of the periods presented were:
December 30, 2023December 31, 2022December 25, 2021
Condiments and sauces34 %31 %28 %
Cheese and dairy14 %15 %19 %
Ambient foods11 %12 %11 %
Frozen and chilled foods11 %11 %10 %
Meats and seafood%10 %10 %
Seasonality
Although crops constituting certain of our raw food ingredients are harvested on a seasonal basis, the majority of our products are produced throughout the year.
Seasonal factors inherent in our business change the demand for products, including holidays, changes in seasons, or other annual events. While these factors influence our quarterly net sales, operating income/(loss), and cash flows at the product level, unless the timing of such events shift period-over-period (e.g., a shift in Easter timing), this seasonality does not typically have a significant effect on our consolidated results of operations or segment results.
3


Government Regulation
The manufacture and sale of consumer food and beverage products is highly regulated. Our business operations, including the production, transportation, storage, distribution, sale, display, advertising, marketing, labeling, quality, and safety of our products and their ingredients, and our occupational safety, health, and privacy practices, are subject to various laws and regulations. In the United States, our activities are subject to regulation by various federal government agencies, including the Food and Drug Administration, Department of Agriculture, Federal Trade Commission, Department of Labor, Department of Commerce, and Environmental Protection Agency, as well as various state and local agencies. We are also subject to numerous laws and regulations outside of the United States in markets where our products are manufactured, distributed, or sold, including laws and regulations governing food safety, health and safety, anti-corruption, and data privacy. In our business dealings, we are also required to comply with the U.S. Foreign Corrupt Practices Act (“FCPA”), the U.K. Bribery Act, the U.S. Trade Sanctions Reform and Export Enhancement Act, and various other anti-corruption regulations in the regions in which we operate. We rely on legal and operational compliance programs, as well as in-house and outside counsel, to guide our businesses in complying with applicable laws and regulations. In addition, regulatory regime changes may add cost and complexity to our compliance efforts.
Environmental Regulation:
Our activities throughout the world are highly regulated and subject to government oversight regarding environmental matters. Various laws concerning the handling, storage, and disposal of hazardous materials and the operation of facilities in environmentally sensitive locations may impact aspects of our operations.
In the United States, where a significant portion of our business operates, these laws and regulations include the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act, and the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”). CERCLA imposes joint and several liability on each potentially responsible party. We are involved in a number of active proceedings in the United States under CERCLA (and other state actions under similar legislation) related to certain closed, inactive, or divested operations for which we retain liability.
As of December 30, 2023, we had accrued an amount we deemed appropriate for environmental remediation. Based on information currently available, we believe that the ultimate resolution of existing environmental remediation actions and our general compliance with environmental laws and regulations will not have a material effect on our earnings or financial condition. However, it is difficult to predict with certainty the potential impact of future compliance efforts and environmental remedial actions and, thus, future costs associated with such matters may exceed current reserves.
Human Capital Management
We are driven by our Purpose, our Vision—To sustainably grow by delighting more consumers globally, and our Values—We are consumer obsessed, We dare to do better every day, We champion great people, We demand diversity, We do the right thing, and We own it. We recognize that a strong company culture is vital to our overall success. Our Purpose, Vision, and Values are the foundation upon which our culture is built. They represent the expectations we have for ourselves and the environment we aspire to create for our Company.

Our people are at the heart of who we are at Kraft Heinz. We drive growth through accountability, development opportunities, career ownership, and autonomy and recognize and reward outstanding performance at every level, creating a true spirit of meritocracy. We strive to channel our employees’ passion, curiosity, and attitude to make an impact on our future and our legacy by leading as learners, acting as owners, and being change agents. Our Board of Directors (“Board”), through the Human Capital and Compensation Committee, oversees our human resources strategy, key policies, and our 2025 diversity, inclusion, and belonging aspirations.
Engagement and Inclusion:
We are committed to attracting, developing, and retaining diverse, world-class talent and creating an engaging and inclusive culture that embodies our Purpose, Vision, and Values. As of December 30, 2023, Kraft Heinz had approximately 36,000 employees globally. Driven by our Value We champion great people, we support our employees’ health, safety, and professional development and reward outstanding performance at every level. Our rewards strategies (compensation, benefits, recognition, and wellbeing) aim to help our employees help themselves to LiveWell. LiveWell represents our total rewards offerings that are designed to attract and engage highly skilled talent, meet individual and family needs, and inspire, celebrate, and engage our people and teams through enhanced interactions in moments that matter in an environment where employees feel productive, trusted, and empowered.
Guided by our Values, we conduct a global engagement survey annually to provide employees with an opportunity to share anonymous feedback with management across a variety of topic areas. The results and comments are reviewed by the Board, senior leadership, managers, and human resources to help determine where changes are needed to support our people and teams.
4


Diversity, inclusion, and belonging are key drivers for engagement. For us, it also means having our diverse consumer base represented in our workforce and included in relevant business decisions. We live our Value of We demand diversity by focusing on three strategic areas: hiring and growing talent from diverse backgrounds and perspectives, developing inclusive leaders, and tracking and reporting our progress.

Our Business Resource Groups (BRGs) are employee-led, multi-functional groups based upon shared common interests. They help foster an engaged and inclusive environment where all talent grows and thrives, create a network of support for employees, and serve as a resource for the organization on topics related to their focus area.

Our Global Inclusion Council has been established to create strategic accountability for results. It also provides governance and oversight of reporting on diversity efforts and initiatives. The Council is comprised of executive leaders and members of the Board. We have 2025 diversity, equity, inclusion, and belonging (“DEI&B”) aspirations that have shaped some of our guiding principles.

Our long-term ambition is to have demographic parity in the countries in which we operate and to be recognized as a top quartile company in inclusion. Our aspirations include that 50% of our global management positions be filled by women and 30% of our salaried U.S. employee population identify as people of color. Our DEI&B efforts have continued to be expanded as part of our multi-year strategy. Each day, we are working to create a healthier, more equitable global workplace and world. As of December 30, 2023:
43% of employees in global management positions identified as women;
29% of salaried employees in the U.S. identified as people of color;
33% of our Executive Leadership Team identified as women; and
78% of our Executive Leadership Team identified as people of color.
As we progress on our 2025 aspirations, we are focused on:
Hiring, Investing in, and Growing Talent from Diverse Backgrounds and Perspectives through expanded recruiting partnerships with Historically Black Colleges and Universities, diverse professional organizations, and training in our hiring process to reduce bias and promote equal employment opportunities.
Developing Inclusive Leaders through an interactive learning experience for managers on interrupting bias in our Organizational People Review process and their role in creating an inclusive environment.
Tracking and Reporting Our Progress year over year through oversight by the Kraft Heinz Global Inclusion Council.
Wellbeing and Safety:
Our employees’ health, safety, and wellbeing are a top priority. We establish and administer company-wide policies and processes to protect the health, safety, and security of our employees, subcontractors, and all those who visit our facilities, and to comply with applicable regulations. We review and monitor our performance closely to drive improvement. To help us evaluate how effective our safety efforts are in lowering incidents rates, we use a Total Recordable Incident Rate (“TRIR”). TRIR is a medical incident rate based on the U.S. Occupational Safety and Health Administration (OSHA) record-keeping criteria (injuries per 200,000 hours). Our TRIR globally was 0.53 in 2023 and 2022.
Our global LiveWell program focuses on four wellbeing elements — physical, emotional, financial, and social health — and provides specific programs and resources to support our employees and their families within each of these areas.
Learning and Development:
Through Kraft Heinz Ownerversity, we provide learning opportunities for each of our employees, designed to inspire and grow talent within Kraft Heinz while developing employees’ capabilities to help them navigate their career journey. Our learning and development offerings are created to enable employees to live our Value We dare to do better every day and own their personal learning and development. We believe this empowers employees to execute with excellence in their current role, accelerate their learning curve, and grow a great career. Through Ownerversity, employees have access to custom Kraft Heinz training, learning and development materials, and external content libraries and articles.
Rewards and Compensation:
Our Total Rewards philosophy is to provide a meaningful and flexible spectrum of programs that equitably support our diverse workforce and their families. Total Rewards includes compensation elements of salary and wages and incentives, healthcare, savings and insurance plans, wellbeing plans, employee recognition programs, and other voluntary elected benefits. We aim for global consistency while respecting local market practices and employee preferences. The plans are designed to be market competitive and data-driven to promote our high-performance and results-oriented growth culture and realize our Purpose to Make Life Delicious for employees and their families.
5


Ethics and Transparency:
The Kraft Heinz Ethics Helpline is available to our partners, suppliers, customers, and consumers to ask questions or report potential violations of various policies and ethical guidelines, including our Code of Conduct, Supplier Guiding Principles, and Global Human Rights Policy.
We report more detailed information regarding our programs and initiatives related to our people and human capital management in our Environmental Social Governance Report (“ESG Report”). Our 2023 ESG Report, which provides our progress through 2022, is available on our website at www.kraftheinzcompany.com/esg. The information on our website, including our ESG Report, is not, and shall not be deemed to be, a part of this Annual Report on Form 10-K or incorporated into any other filings we make with the Securities and Exchange Commission (“SEC”).
6


Information about our Executive Officers
The following are our executive officers as of February 10, 2024:
Name and TitleAgeBusiness Experience in the Past Five Years
Carlos Abrams-Rivera,
Chief Executive Officer and Director
56
Chief Executive Officer (since December 2023); President Kraft Heinz (August to December 2023); Executive Vice President and President, North America (December 2021 to August 2023); and U.S. Zone President (February 2020 to December 2021). Executive Vice President and President, Campbell Snacks (May 2019 to February 2020), and President, Campbell Snacks (March 2018 to May 2019) at Campbell Soup Company (“Campbell”), a food and beverage company.
Andre Maciel,
Executive Vice President and Global Chief Financial Officer
49
Executive Vice President and Global Chief Financial Officer (since March 2022); Senior Vice President, U.S. Chief Financial Officer, and Head of Digital Transformation (September 2019 to March 2022); Managing Director, Continental Europe (January to August 2019); Chief Financial Officer, U.S. (2017 to January 2019); and Head of U.S. Commercial Finance (2015 to 2017).
Diana Frost,
Global Chief Growth Officer

41
Global Chief Growth Officer (since December 2023); Chief Growth Officer, North America (August to December 2023); Head of North America Disruption and Canada Chief Marketing Officer (January to August 2022); and Chief Growth Officer, Canada (September 2020 to December 2021). Head of Portfolio Transformation, Mars Wrigley (January 2019 to September 2020) at Mars, Incorporated, a multinational confections company.
Rashida La Lande,
Executive Vice President and Chief Legal and Corporate Affairs Officer
50
Executive Vice President and Chief Legal and Corporate Affairs Officer (since December 2023); Executive Vice President, Global General Counsel, and Chief Sustainability and Corporate Affairs Officer (December 2021 to December 2023); Corporate Secretary (2018 to May 2022); Senior Vice President, Global General Counsel and Head of ESG (formerly CSR) and Government Affairs (2018 to December 2021); and Senior Vice President and Global General Counsel (2018).
Marcos Eloi Lima,
Executive Vice President and Global Chief Procurement and Sustainability Officer
46
Executive Vice President and Global Chief Procurement and Sustainability Officer (since December 2023); Executive Vice President and Global Chief Procurement Officer (December 2021 to December 2023); Chief Procurement Officer (October 2019 to December 2023); and Advisor in the area of procurement (July to October 2019). Vice President Procurement & Sustainability Middle Americas Zone (2016 to July 2019) at Anheuser-Busch InBev SA/NV (“AB InBev”), a multinational drink and brewing holdings company.
Pedro Navio,
Executive Vice President and President, North America

43Executive Vice President and President, North America (since December 2023); President – Taste, Meals, and Away From Home (March 2022 to December 2023); President, Latin America (November 2019 to February 2022); and President, Brazil (2017 to November 2019).
Cory Onell,
Executive Vice President and Chief Omnichannel Sales and Asian Emerging Markets Officer

50
Executive Vice President and Chief Omnichannel Sales and Asian Emerging Markets Officer (since December 2023) and Chief Sales Officer, U.S. (August 2020 to December 2023). Senior Vice President and Head of U.S. Retail Sales (April to July 2020) at The J. M. Smucker Company, a food and beverage company. Senior Vice President, Sales (2017 to April 2020) at Campbell.
Flávio Barros Torres,
Executive Vice President and Global Chief Supply Chain Officer
54
Executive Vice President and Global Chief Supply Chain Officer (since December 2021); and Head of Global Operations (January 2020 to December 2021). Global Operations Vice President (2017 to 2019) at AB InBev.
Melissa Werneck,
Executive Vice President and Global Chief People Officer
51
Executive Vice President and Global Chief People Officer (since December 2021); Global Chief People Officer (2016 to December 2021); and Head of Global Human Resources, Performance and Information Technology (2015 to 2016).
Available Information
Our website address is www.kraftheinzcompany.com. The information on our website is not, and shall not be deemed to be, a part of this Annual Report on Form 10-K or incorporated into any other filings we make with the SEC. Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”), are available free of charge on our website as soon as reasonably practicable after we electronically file them with, or furnish them to, the SEC. In addition, the SEC maintains a website at www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers, including Kraft Heinz, that are electronically filed with the SEC.
7


Item 1A. Risk Factors.
Our business is subject to various risks and uncertainties. In addition to the risks described elsewhere in this Annual Report on Form 10-K, any of the risks and uncertainties described below could materially adversely affect our business, financial condition, and results of operations and should be considered when evaluating Kraft Heinz. Although the risks are organized and described separately, many of the risks are interrelated. While we believe we have identified and discussed the material risks affecting our business below, there may be additional risks and uncertainties that are not presently known or that are not currently believed to be material that may adversely affect our business, performance, or financial condition in the future.
Industry Risks
We operate in a highly competitive industry.
The food and beverage industry is highly competitive across all of our product offerings. Our principal competitors in these categories are manufacturers and retailers with their own branded and private label products. We compete based on product innovation, price, product quality, nutritional value, service, taste, convenience, brand recognition and loyalty, effectiveness of marketing and distribution, promotional activity, and the ability to identify and satisfy changing consumer preferences.
We may need to reduce our prices, or be restricted or delayed in our ability to increase prices, in response to competitive, customer, consumer, regulatory, or macroeconomic pressures, including pressures related to private label products that are generally sold at lower prices. These pressures have restricted, and may in the future continue to restrict, our ability to increase prices and maintain those price increases in response to commodity and other cost increases, including those related to inflationary pressures. We expect that there could be a difference between the timing of when we take pricing actions and the impact of those beneficial actions on our results of operations. Additionally, the pricing actions we take have, in some instances, negatively impacted, and could continue to negatively impact, our market share. Failure to effectively assess, timely change, and properly set pricing, promotions, or trade incentives may negatively impact our ability to achieve our objectives.
In addition, in order to remain competitive, we rely on our ability to secure new retailers and maintain or add shelf space for our products. If we are unable to secure sufficient and attractive shelf space, adequate product visibility, and attractive pricing for our products with retailers, our products may be disadvantaged against our competitors. Even if we obtain preferred product visibility and shelf space, our new and existing products may fail to achieve the sales expectations set by retailers, which may cause these retailers to remove our products from their shelves.
The rapid emergence of new distribution channels, particularly e-commerce, may create consumer price deflation, affecting our retail customer relationships and presenting additional challenges to increasing prices in response to commodity or other cost increases, including those related to inflationary pressures. We may also need to increase or reallocate spending on marketing, retail trade incentives, materials, advertising, and new product, platform, or channel innovation to maintain or increase market share. These expenditures are subject to risks, including uncertainties about trade and consumer acceptance of our efforts. If we are unable to compete effectively, our profitability, financial condition, and operating results may decline.
Our success depends on 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.
Consumer preferences for food and beverage products change continually and rapidly. Our success depends on our ability to predict, identify, and interpret the tastes and dietary habits of consumers. We must continue to offer products that appeal to consumer preferences, including with respect to health and wellness. If we do not offer products that appeal to consumers, our sales and market share will decrease, which could materially and adversely affect our product sales, financial condition, and operating results.
Moreover, weak economic conditions, recessions, inflation, severe or unusual weather events, global or local pandemics, including COVID-19, as well as other factors, could affect consumer preferences and demand, at times, causing a strain on our supply chain due, in part, to retailers, distributors, or carriers modifying their restocking, fulfillment, or shipping practices. Failure to adequately respond to these changes could adversely affect our product sales, financial condition, and operating results.
We must distinguish between short-term trends and long-term changes in consumer preferences. If we do not accurately predict which shifts in consumer preferences will be long-term, or if we fail to introduce new and improved products to satisfy those preferences, our sales could decline. In addition, because of our varied consumer base, we must offer an array of products that satisfies a broad spectrum of consumer preferences. If we fail to expand our product offerings successfully across product categories or platforms, or if we do not rapidly develop products in faster-growing or more profitable categories, demand for our products could decrease, which could materially and adversely affect our product sales, financial condition, and operating results.
8


Prolonged negative perceptions concerning the health, environmental, or social implications of certain food and beverage products, ingredients, or packaging materials could influence consumer preferences and acceptance of our products and marketing programs. Our ability to refine the ingredient and nutrition profiles of and packaging for our products as well as to maintain focus on ethical sourcing and supply chain management opportunities to address evolving consumer preferences are important to our growth. We strive to respond to consumer preferences and social expectations, but we may not be successful in our efforts. Continued negative perceptions and failure to satisfy consumer preferences could materially and adversely affect our product sales, financial condition, and operating results.
In addition, our growth depends on our successful development, introduction, and marketing of innovative new products and line extensions. There are inherent risks associated with new product or packaging introductions, including uncertainties about trade and consumer acceptance or potential impacts on our existing product offerings. We may be required to increase expenditures for new product development. Successful innovation depends on our ability to correctly anticipate customer and consumer acceptance, to obtain, protect, and maintain necessary intellectual property rights, and to avoid infringing upon the intellectual property rights of others. We must also be able to respond successfully to technological advances (including artificial intelligence, machine learning, and augmented reality, which may become critical in interpreting consumer preferences in the future) by and intellectual property rights of our competitors, and failure to do so could compromise our competitive position and impact our product sales, financial condition, and operating results.
Changes in the retail landscape or the loss of key retail customers could adversely affect our financial performance.
Retail customers, such as supermarkets, warehouse clubs, and food distributors in our major markets, may continue to consolidate, resulting in fewer but larger customers for our business across various channels. These larger customers may seek to leverage their positions to improve their profitability by demanding improved efficiency, lower pricing, more favorable terms, increased promotional programs, or specifically tailored product offerings. In addition, larger retailers have scale to develop supply chains that permit them to operate with reduced inventories or to develop and market their own private label products. Retail consolidation and increasing retailer power could materially and adversely affect our product sales, financial condition, and operating results.
Retail consolidation also increases the risk that adverse changes in our customers’ business operations or financial performance may have a corresponding adverse effect on us, which could be material. For example, if our customers cannot access sufficient funds or financing, then they may delay, decrease, or cancel purchases of our products, or delay or fail to pay us for previous purchases, which could materially and adversely affect our product sales, financial condition, and operating results.
In addition, technology-based systems, which give consumers the ability to shop through e-commerce websites and mobile commerce applications, are also significantly altering the retail landscape in many of our markets. If we are unable to adjust to developments in these changing landscapes, we may be disadvantaged in key channels and with certain consumers, which could materially and adversely affect our product sales, financial condition, and operating results.
Changes in our relationships with significant customers or suppliers, or in other business relationships, could adversely impact us.
We derive significant portions of our sales from certain significant customers (see Sales and Customers within Item 1, Business). Some or all of our significant customers may not continue to purchase our products in the same mix or quantities or on the same terms as in the past, particularly as increasingly powerful retailers may demand lower pricing and focus on developing their own brands. The loss of a significant customer or a material reduction in sales or a change in the mix of products we sell to a significant customer could materially and adversely affect our product sales, financial condition, and operating results.
Disputes with significant suppliers, including disputes related to pricing or performance, could adversely affect our ability to supply products to our customers and could materially and adversely affect our product sales, financial condition, and operating results. In addition, terminations of relationships with other significant contractual counterparties, including licensors, could adversely affect our portfolio, product sales, financial condition, and operating results.
In addition, the financial condition of such customers, suppliers, and other significant contractual counterparties are affected in large part by conditions and events that are beyond our control. Significant deterioration in the financial conditions of significant customers or suppliers, or in other business relationships, could materially and adversely affect our product sales, financial condition, and operating results.
9


Maintaining, extending, and expanding our reputation and brand image are essential to our business success.
We have many iconic brands with long-standing consumer recognition across the globe. Our success depends on our ability to maintain brand image for our existing products, extend our brands to new platforms, and expand our brand image with new product offerings.
We seek to maintain, extend, and expand our brand image through marketing investments, including advertising and consumer promotions, and product innovation. Negative perceptions of food and beverage marketing could adversely affect our brand image or lead to stricter regulations and scrutiny of our marketing practices. Moreover, adverse publicity about legal or regulatory action against us, our quality and safety, our environmental or social impacts, our other environmental, social, human capital, or governance practices or positions, our products becoming unavailable to consumers, or our suppliers (including as a result of human rights issues) and, in some cases, our competitors, could damage our reputation and brand image, undermine our customers’ or consumers’ confidence, and reduce demand for our products, even if the regulatory or legal action is unfounded or not material to our operations. Furthermore, existing or increased legal or regulatory restrictions on our advertising, consumer promotions, and marketing, or our response to those restrictions, could limit our efforts to maintain, extend, and expand our brands.
In addition, our success in maintaining, extending, and expanding our brand image depends on our ability to adapt to a rapidly changing media environment. We increasingly rely on social media and online dissemination of advertising campaigns. The growing use of social and digital media increases the speed and extent that information, including misinformation, and opinions can be shared. Negative posts or comments about us, our brands or our products, or our suppliers and, in some cases, our competitors, on social or digital media, whether or not valid, could seriously damage our brands and reputation. In addition, we might fail to appropriately target our marketing efforts, anticipate consumer preferences, or invest sufficiently in maintaining, extending, and expanding our brand image. Placement of our advertisements in social and digital media may also result in damage to our brands if the media itself experiences negative publicity. If we do not maintain, extend, and expand our reputation or brand image, then our product sales, financial condition, and operating results could be materially and adversely affected.
We must leverage our brand value to compete against private label products.
In nearly all of our product categories, we compete with branded products as well as private label products, which are typically sold at lower prices. Our products must provide higher value or quality to consumers than alternatives, particularly during periods of economic uncertainty or weakness or inflation. Consumers may not buy our products if relative differences in value or quality between our products and private label products change in favor of competitors’ products or if consumers perceive such a change. If consumers prefer private label products, then we could lose market share or sales volume, or our product mix could shift to lower margin offerings. A change in consumer preferences could also cause us to increase capital, marketing, and other expenditures, which could materially and adversely affect our product sales, financial condition, and operating results.
We may be unable 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.
Our future results will depend on our ability to drive revenue growth in our key product categories or platforms as well as growth in the food and beverage industry in the geographies in which we operate. Our future results will also depend on our ability to enhance our portfolio by adding innovative new products in faster-growing and more profitable categories or platforms and our ability to increase market share in our existing product categories or platforms. Our failure to drive revenue growth, limit market share decreases in our key product categories or platforms, or develop innovative products for new and existing categories or platforms could materially and adversely affect our product sales, financial condition, and operating results.
Product recalls or other product liability claims could materially and adversely affect us.
Selling products for human consumption involves inherent legal and other risks, including product contamination, spoilage, product tampering, allergens, or other adulteration. We have decided and could in the future decide to, and have been or could in the future be required to, recall products due to suspected or confirmed product contamination, adulteration, product mislabeling or misbranding, tampering, undeclared allergens, or other deficiencies. Product recalls or market withdrawals could result in significant losses due to their costs, the destruction of product inventory, and lost sales due to the unavailability of the product for a period of time.
We could also be adversely affected if consumers lose confidence in the safety and quality of our food products or ingredients, or the food safety system generally. Adverse attention about these types of concerns, whether or not valid, may damage our reputation, discourage consumers from buying our products, or cause production and delivery disruptions that could negatively impact our net sales and financial condition.
10


We may also suffer losses if our products or operations violate applicable laws or regulations or if our products cause injury, illness, or death. In addition, our marketing could face claims of false or deceptive advertising or other criticism. A significant product liability or other legal judgment or a related regulatory enforcement action against us, or a significant product recall, may materially and adversely affect our reputation and profitability. Moreover, even if a product liability or fraud claim is unsuccessful, has no merit, or is not pursued to conclusion, the negative publicity surrounding assertions against our products or processes could materially and adversely affect our product sales, financial condition, and operating results.
Climate change and legal or regulatory responses may have a long-term adverse impact on our business and results of operations.
Global average temperatures are gradually increasing due to increased concentration of carbon dioxide and other greenhouse gases in the atmosphere, which is projected to contribute to significant changes in weather patterns around the globe, an increase in the frequency and severity of natural disasters, and changes in agricultural productivity. Increasing concern over climate change may adversely impact demand for our products, or increase our operating costs, due to changes in consumer preferences that cause consumers to switch away from products or ingredients considered to have a high climate change impact.
Increased natural disasters and decreased agricultural productivity in certain regions of the world as a result of changing weather patterns may limit the availability or increase the cost of natural resources and commodities, including dairy products, meat products, tomato products, soybean and vegetable oils, sugar and other sweeteners, coffee beans, wheat and processed grains, eggs, and other fruits and vegetables to manufacture our products, and could further decrease food security for communities around the world. Climate change, and its environmental impacts, could also affect our ability, and our suppliers’ ability, to procure necessary commodities at costs and in quantities we currently experience and may require us to increase costs or make additional unplanned capital expenditures. Further, an increase in the frequency and severity of natural disasters could result in disruptions for us, our customers, suppliers, vendors, co-manufacturers, and distributors and impact our employees’ abilities to commute or work from home effectively. These disruptions could make it more difficult and costly for us to deliver our products, obtain raw materials or other supplies through our supply chain, maintain or resume operations, or perform other critical corporate functions, could reduce customer demand for our products, and could increase the cost of insurance.
Additionally, there is an increased focus by foreign, federal, state, and local regulatory and legislative bodies regarding environmental policies relating to climate change, regulating greenhouse gas emissions (including carbon pricing or a carbon tax), energy policies, disclosure obligations, and sustainability. Increased energy or compliance costs and expenses due to the impacts of climate change, as well as additional legal or regulatory requirements regarding climate change designed to reduce or mitigate the effects of carbon dioxide and other greenhouse gas emissions on the environment could be costly and may cause disruptions in, or an increase in the costs associated with, the running of our manufacturing and processing facilities and our business, as well as increase distribution and supply chain costs. Moreover, compliance with any such legal or regulatory requirements may require us to make significant changes to our business operations and long-term operating plans, which will likely incur substantial time, attention, and costs. Even if we make changes to align ourselves with such legal or regulatory requirements, we may still be subject to significant penalties if such laws and regulations are interpreted and applied in a manner inconsistent with our practices. The effects of climate change and legal or regulatory initiatives to address climate change could have a long-term adverse impact on our business and results of operations.
11


Finally, we might fail to effectively address increased attention from the media, stockholders, activists, and other stakeholders on climate change and related environmental sustainability matters. Such failure, or the perception that we have failed to act responsibly with respect to such matters or to effectively respond to new or additional regulatory requirements regarding climate change, whether or not valid, could result in adverse publicity and negatively affect our business and reputation. Additionally, from time to time we establish and publicly announce environmental, social, and governance goals, commitments, and aspirations, including to reduce our impact on the environment. Our ability to achieve any stated goal, target, or objective is subject to numerous factors and conditions, many of which are outside of our control. Examples of such factors include evolving regulatory requirements affecting sustainability standards or disclosures or imposing different requirements, the pace of changes in technology, the availability of requisite financing, and the availability of suppliers that can meet our sustainability and other standards. Furthermore, standards for tracking and reporting such matters continue to evolve. Our selection of voluntary disclosure frameworks and standards, and the interpretation or application of those frameworks and standards, may change from time to time or differ from those of others. Methodologies for reporting this data may be updated and previously reported data may be adjusted to reflect improvement in availability and quality of third-party data, changing assumptions, changes in the nature and scope of our operations, and other changes in circumstances. Our processes and controls for reporting sustainability and other matters across our operations and supply chain are evolving along with multiple disparate standards for identifying, measuring, and reporting sustainability metrics, including sustainability-related disclosures that may be required by the SEC, European Union, and other foreign, federal, state, and local regulatory and legislative bodies, and such standards may change over time, which could result in significant revisions to our current goals, reported progress in achieving such goals, or ability to achieve such goals in the future. If we fail to achieve, or are perceived to have failed or been delayed in achieving, or improperly report on our progress toward achieving these goals and commitments, it could negatively affect consumer preference for our products or investor confidence in our stock, as well as expose us to government enforcement actions and private litigation.
Business Risks
We may not successfully identify, complete, or realize the benefits from strategic acquisitions, divestitures, alliances, joint ventures, or investments.
From time to time, we have evaluated and may continue to evaluate acquisition candidates, alliances, joint ventures, or investments that may strategically fit our business objectives, and, as a result of some of these evaluations, we have acquired businesses or assets that we deem to be a strategic fit. We have also divested and may consider divesting businesses that do not meet our strategic objectives or growth or profitability targets. These activities may present financial, managerial, and operational risks including, but not limited to, diversion of management’s attention from existing core businesses; difficulties in integrating, or inability to successfully integrate, acquired businesses, including integrating or separating personnel and financial and other systems; inability to effectively and immediately implement control environment processes across a diverse employee population; adverse effects on existing or acquired customer and supplier business relationships; and potential disputes with buyers, sellers, or partners. Activities in such areas are regulated by numerous antitrust and competition laws in the United States, Canada, the European Union, the United Kingdom, and elsewhere. We have in the past and may in the future be required to obtain approval of these transactions by competition authorities or to satisfy other legal requirements, and we may be unable to obtain such approvals or satisfy such requirements, each of which may result in additional costs, time delays, or our inability to complete such transactions, which could materially and adversely affect our financial condition and operating results.
To the extent we undertake acquisitions, alliances, joint ventures, investments, or other developments in new geographies or categories, we may face additional risks related to such developments. For example, risks related to foreign operations are discussed below under the risk factor titled “Our international operations subject us to additional risks and costs and may cause our profitability to decline.
To the extent we undertake divestitures, we may face additional risks related to such activities. For example, risks related to our ability to find appropriate buyers, obtain applicable regulatory and governmental approvals, execute transactions on favorable terms, separate divested business operations with minimal impact to our remaining operations, and effectively manage any transitional service arrangements. Further, our divestiture activities have in the past required, and may in the future require, us to recognize impairment charges. Any of these factors could materially and adversely affect our financial condition and operating results.
We may not be able to successfully execute our strategic initiatives.
We plan to continue to conduct strategic initiatives in various markets. Consumer demands, behaviors, tastes, and purchasing trends may differ in these markets and, as a result, our sales strategies may not be successful and our product sales may not meet expectations, or the margins on those sales may be less than currently anticipated. We may also face difficulties integrating new business operations with our current sourcing, distribution, information technology systems, and other operations. Additionally, we may not successfully complete any planned strategic initiatives, including achieving any previously announced productivity efficiencies and financial targets, any new business may not be profitable or meet our
12


expectations, or any divestiture may not be completed without disruption. Any of these challenges could hinder our success in new markets or new distribution channels, which could adversely affect our results of operations and financial condition.
Our international operations subject us to additional risks and costs and may cause our profitability to decline.
We are a global company with sales and operations in numerous countries within developed and emerging markets. Approximately 31% of our 2023 net sales were generated outside of the United States. As a result, we are subject to risks inherent in global operations. These risks, which can vary substantially by market, are described in many of the risk factors discussed in this section, and also include:
compliance with U.S. laws affecting operations outside of the United States, including anti-bribery and corruption laws such as the FCPA;
changes in the mix of earnings in countries with differing statutory tax rates, the valuation of deferred tax assets and liabilities, tax laws or their interpretations, or tax audit implications;
the imposition of increased or new tariffs, quotas, trade barriers, or similar restrictions on our sales or imports (including those that may affect our sourcing operations and the availability of raw materials and commodities), trade agreements, regulations, taxes, or policies that might negatively affect our sales or costs;
foreign currency devaluations or fluctuations in foreign currency values, including risks arising from the significant and rapid fluctuations in foreign currency exchange markets and the decisions made and positions taken to hedge such volatility;
compliance with antitrust and competition laws, data privacy laws, human rights laws, and a variety of other local, national, and multi-national regulations and laws in multiple jurisdictions;
discriminatory or conflicting fiscal policies in or across foreign jurisdictions;
changes in capital controls, including foreign currency exchange controls, governmental foreign currency policies, or other limits on our ability to import raw materials or finished product into various countries or repatriate cash from outside the United States;
challenges associated with cross-border product distribution, including economic sanctions, export controls, and labor restrictions;
changes in local regulations and laws, the uncertainty of enforcement of remedies in foreign jurisdictions, and foreign ownership restrictions and the potential for nationalization or expropriation of property or other resources;
risks and costs associated with political and economic instability, military conflict, corruption, anti-American sentiment, and social and ethnic unrest in the countries in which we operate;
the risks of operating in developing or emerging markets in which there are significant uncertainties regarding the interpretation, application, and enforceability of laws and regulations and the enforceability of contract rights and intellectual property rights;
changing labor conditions and difficulties in staffing our operations;
greater risk of uncollectible accounts or trade receivables and longer collection cycles; and
design, implementation, and use of effective control environment processes across our various operations and employee base.
Slow economic growth or high unemployment in the markets in which we operate could constrain consumer spending, and declining consumer purchasing power could adversely impact our profitability. Any of these factors could result in increased costs or decreased sales, and could materially and adversely affect our product sales, financial condition, and results of operations.
Additionally, forced labor concerns have rapidly become a global area of interest, and have resulted in, and are expected to continue to result in, new regulations in the markets in which we operate. For example, the Uyghur Forced Labor Prevention Act (“UFLPA”) prohibits the import of articles, merchandise, apparel, and goods mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region (“Xinjiang”) of the People's Republic of China, or by entities identified by the U.S. government on the UFLPA Entity List. As a result of the UFLPA, materials and products we import into the United States could be held by U.S. Customs and Border Protection based on a suspicion that inputs used in such materials or products originated from Xinjiang or that they may have been produced by Chinese suppliers alleged to participate in forced labor, pending our provision of satisfactory evidence to the contrary. Among other consequences, such an outcome could result in negative publicity that harms our brands and reputation and could result in a delay or our complete inability to import such materials or products, which could result in inventory shortages and greater supply chain compliance costs.
13


Our intellectual property rights are valuable, and any inability to protect them could reduce the value of our products and brands.
We consider our intellectual property rights, particularly and most notably our trademarks, but also our patents, trade secrets, trade dress, copyrights, and licensing agreements, to be a significant and valuable aspect of our business. We attempt to protect our intellectual property rights through a combination of patent, trademark, copyright, trade secret, and trade dress laws, as well as licensing agreements, third-party nondisclosure and assignment agreements, policing of third-party misuses of our intellectual property, and securing our information technology systems. Our failure to develop or adequately protect our trademarks, products, new features of our products, or our technology, or any change in law or other changes that serve to lessen or remove the current legal protections of our intellectual property, may diminish our competitiveness and could materially and adversely affect our product sales, business, and financial condition. We also license certain intellectual property, most notably trademarks, from third parties. To the extent that we are not able to contract with these third parties on favorable terms or maintain our relationships with these third parties, our rights to use certain intellectual property could be impacted, which may adversely impact our results from operations.
We may be unaware of intellectual property rights of others that may cover some of our technology, brands, or products. Any litigation regarding patents or other intellectual property could be costly and time-consuming and could divert the attention of our management and key personnel from our business operations. Third-party claims of intellectual property infringement might also require us to enter into costly license agreements. We also may be subject to significant damages or injunctions against development and sale of certain products.
We may be unable to realize the anticipated benefits from prior or future streamlining actions to reduce fixed costs, simplify or improve processes, or improve our competitiveness.
We have implemented a number of initiatives, including development of an operations center and strategic long-term collaboration with suppliers, that we believe are important to position our business for future success and growth. We have evaluated and continue to evaluate changes to our organizational structure and operations to enable us to reduce costs, simplify or improve processes, and improve our competitiveness. Our future success may depend upon our ability to realize the benefits of these or other cost-saving initiatives. In addition, certain of our initiatives may lead to increased costs in other aspects of our business such as increased conversion, outsourcing, or distribution costs. We must accurately predict costs and be efficient in executing any plans to achieve cost savings and operate efficiently in the highly competitive food and beverage industry, particularly in an environment of increased competition. To capitalize on our efforts, we must carefully evaluate investments in our business and execute in those areas with the most potential return on investment. If we are unable to realize the anticipated benefits from any cost-saving efforts, we could be cost disadvantaged in the marketplace, and our competitiveness, production, profitability, financial condition, and operating results could be adversely affected.
Berkshire Hathaway Inc. has the ability to exert influence over us and significant influence over matters requiring stockholder approval.
As of December 30, 2023, Berkshire Hathaway Inc. (“Berkshire Hathaway”) owns approximately 26.7% of our common stock. Three members of our Board are officers and/or directors of Berkshire Hathaway or its affiliates. As a result, Berkshire Hathaway has the potential to exercise influence over management and Board decisions, including those affecting our capital structure, such as the issuance of additional capital stock, the incurrence of additional indebtedness, the implementation of stock repurchase programs, and the declaration and amount of dividends. Berkshire Hathaway also has influence over any action requiring the approval of the holders of our common stock, including adopting any amendments to our charter, electing directors, and approving mergers or sales of substantially all of our capital stock or assets. In addition, Berkshire Hathaway is in the business of making investments in companies and may from time to time acquire and hold interests in businesses that compete directly or indirectly with us. Berkshire Hathaway may also pursue acquisition opportunities that may be complementary to our business, and, as a result, those opportunities may not be available to us.
Financial Risks
Our level of indebtedness, as well as our ability to comply with covenants under our debt instruments, could adversely affect our business and financial condition.
We have a substantial amount of indebtedness and are permitted to incur a substantial amount of additional indebtedness, including secured debt. Our existing debt, together with any incurrence of additional indebtedness, could have important consequences, including, but not limited to:
increasing our vulnerability to general adverse economic and industry conditions;
limiting our ability to obtain additional financing for working capital, capital expenditures, research and development, debt service requirements, acquisitions, and general corporate or other purposes;
14


resulting in a downgrade to our credit rating, which could adversely affect our cost of funds, including our commercial paper programs, liquidity, and access to capital markets;
restricting us from making strategic acquisitions or causing us to make non-strategic divestitures;
limiting our ability to adjust to changing market conditions and place us at a competitive disadvantage compared to our competitors who are not as highly leveraged;
making it more difficult for us to make payments on our existing indebtedness;
requiring a substantial portion of cash flow from operations to be dedicated to the payment of principal and interest on our indebtedness, thereby reducing our ability to use our cash flow to fund our operations, payments of dividends, capital expenditures, and future business opportunities;
exposing us to risks related to fluctuations in foreign currency, as we earn profits in a variety of foreign currencies and the majority of our debt is denominated in U.S. dollars; and
in the case of any additional indebtedness, exacerbating the risks associated with our substantial financial leverage.
In addition, we may not generate sufficient cash flow from operations or future debt or equity financings may not be available to us to enable us to pay our indebtedness or to fund other needs. As a result, we may need to refinance all or a portion of our indebtedness on or before maturity. We may not be able to refinance any of our indebtedness on favorable terms, or at all. Any inability to generate sufficient cash flow or to refinance our indebtedness on favorable terms could have a material adverse effect on our financial condition.
Our debt instruments contain customary representations, warranties, and covenants, including a financial covenant in our senior unsecured revolving credit facility (the “Senior Credit Facility”) to maintain a minimum shareholders’ equity balance (excluding accumulated other comprehensive income/(losses)). The creditors who hold our debt could accelerate amounts due in the event that we default, which could potentially trigger a default or acceleration of the maturity of our other debt. If our operating performance declines, or if we are unable to comply with any covenant, such as our ability to timely prepare and file our periodic reports with the SEC, we have in the past needed and may in the future need to obtain waivers from the required creditors under our debt instruments to avoid being in default.
If we breach any covenants under our debt instruments and seek a waiver, we may not be able to obtain a waiver from the required creditors, or we may not be able to remedy compliance within the terms of any waivers approved by the required creditors. If this occurs, we would be in default under our debt instruments and unable to access our Senior Credit Facility. In addition, certain creditors could exercise their rights, as described above, and we could be forced into bankruptcy or liquidation.
Additional impairments of the carrying amounts of goodwill or other indefinite-lived intangible assets could negatively affect our financial condition and results of operations.
As of December 30, 2023, we maintain 11 reporting units, seven of which comprise our goodwill balance. Our indefinite-lived intangible asset balance primarily consists of a number of individual brands. We test our reporting units and brands for impairment annually as of the first day of our third quarter, 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.
15


Reporting units and brands that have 20% or less excess fair value over carrying amount as of the 2023 annual impairment test we performed as of July 2, 2023 have a heightened risk of future impairments if any assumptions, estimates, or market factors change in the future. 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, income tax considerations, discount rates, growth rates, royalty rates, contributory asset charges, and other market factors. Our current expectations also include certain assumptions that could be negatively impacted if we are unable to meet our pricing expectations in relation to inflation. 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, which could negatively affect our operating results or net worth. Furthermore, changes in reporting units, including as a result of integrating a new acquisition into an existing reporting unit that has a fair value below carrying amount of goodwill, have led, and could in the future lead, to an impairment of goodwill. Additionally, any decisions to divest certain non-strategic assets has led, and could in the future lead, to goodwill or intangible asset impairments.
Reporting units with 10% or less fair value over carrying amount had an aggregate goodwill carrying amount after impairment of $17.6 billion as of the 2023 annual impairment test and included Taste, Meals, and Away from Home (“TMA”), Northern Europe, Continental Europe, and Canada and North America Coffee (“CNAC”). Reporting units with 10-20% fair value over carrying amount had an aggregate goodwill carrying amount of $12.5 billion as of the 2023 annual impairment test and included Fresh, Beverages, and Desserts (“FBD”) and Latin America (“LATAM”). Our Asia reporting unit had between 20-50% fair value over carrying amount with an aggregate goodwill carrying amount of $309 million as of the 2023 annual impairment test. Our reporting units that have less than 5% excess fair value over carrying amount as of the 2023 annual impairment test are considered at a heightened risk of future impairments and include our TMA, Continental Europe, and CNAC reporting units, which had an aggregate goodwill carrying amount of $15.9 billion. Our four remaining reporting units had no goodwill carrying amount at the time of the 2023 annual impairment test. After the 2023 annual impairment test and after reclassifying two indefinite-lived intangible asset brands to definite-lived trademarks, our indefinite-lived brands with 10% or less fair value over carrying amount had an aggregate carrying amount of $16.2 billion as of the 2023 annual impairment test and included Kraft, Oscar Mayer, Velveeta, Maxwell House, Cool Whip, and Jet Puffed. Brands with 10-20% fair value over carrying amount had an aggregate carrying amount of $2.4 billion as of the 2023 annual impairment test and included Miracle Whip and Ore-Ida. The aggregate carrying amount of brands with fair value over carrying amount between 20-50% was $4.2 billion as of the 2023 annual impairment test. Although the remaining brands, with a carrying amount of $15.7 billion, have more than 50% excess fair value over carrying amount as of the 2023 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 amount as of the 2023 annual impairment test are considered at a heightened risk of future impairments and include our Kraft, Velveeta, Maxwell House, Cool Whip, and Jet Puffed brands, which had an aggregate carrying amount of $13.5 billion.
Our net sales and net income may be exposed to foreign exchange rate fluctuations.
We derive a substantial portion of our net sales from international markets. We hold assets, incur liabilities, earn revenue, and pay expenses in a variety of currencies other than the U.S. dollar, primarily the Canadian dollar, euro, British pound sterling, Brazilian real, Australian dollar, Chinese renminbi, Indonesian rupiah, New Zealand dollar, and Russian ruble. Since our consolidated financial statements are reported in U.S. dollars, fluctuations in foreign currency exchange rates from period to period, which have been more volatile recently, will have an impact on our reported results. We have implemented foreign currency hedges intended to reduce our exposure to changes in foreign currency exchange rates. However, these hedging strategies may not be successful, and any of our unhedged foreign exchange exposures will continue to be subject to market fluctuations. In addition, in certain circumstances, we may incur costs in one currency related to services or products for which we are paid in a different currency. As a result, factors associated with our international operations, including changes in foreign currency exchange rates, could significantly affect our results of operations and financial condition.
Commodity, energy, and other input prices are volatile and could negatively affect our consolidated operating results.
We purchase and use large quantities of commodities, including dairy products, meat products, tomato products, soybean and vegetable oils, sugar and other sweeteners, coffee beans, wheat and processed grains, eggs, and other fruits and vegetables to manufacture our products. In addition, we purchase and use significant quantities of resins, fiberboard, metals, and cardboard to package our products, and we use other inputs, such as electricity, natural gas, and water, to operate our facilities. We are also exposed to changes in oil prices, including diesel fuel, which influence both our packaging and transportation costs. Prices for commodities, energy, and other supplies are volatile and can fluctuate due to conditions that are difficult to predict, including global competition for resources, inflationary pressure, foreign currency fluctuations, geopolitical conditions or conflicts
16


(including the ongoing conflicts between Russia and Ukraine and in the Middle East and rising tensions between China and Taiwan), cybersecurity incidents, severe weather, natural disasters, global climate change, water risk, pandemics, crop failures, crop shortages due to plant disease or insect and other pest infestation, consumer, industrial, or investment demand, and changes in governmental regulation and trade, tariffs, alternative energy, including increased demand for biofuels, and agricultural programs. Additionally, we may be unable to maintain favorable arrangements with respect to the costs of procuring raw materials, packaging, services, and transporting products, which could result in increased expenses and negatively affect our operations. Furthermore, the cost of raw materials and finished products may fluctuate due to changes in cross-currency transaction rates. In addition, disruptions in the global economy caused by the ongoing conflict between Russia and Ukraine have caused, and could continue to cause, increased volatility of commodity and energy costs. Rising commodity, energy, and other input costs could materially and adversely affect our cost of operations, including the manufacture, transportation, and distribution of our products, which could materially and adversely affect our financial condition and operating results.
Although we monitor our exposure to commodity and other input prices as an integral part of our overall risk management program, and seek to hedge against input price increases to the extent we deem appropriate, we do not fully hedge against changes in commodity prices, and our hedging strategies may not protect us from increases in specific raw materials costs. For example, hedging our costs for one of our key commodities, dairy products, is difficult because dairy futures markets are not as liquid as many other commodities futures markets. Continued volatility or sustained increases in the prices of commodities and other supplies we purchase could increase the costs of our products, and our profitability could suffer. Moreover, increases in the prices of our products to cover these increased costs may result in lower sales volumes, or we may be constrained from increasing the prices of our products by competitive and consumer pressures. If we are not successful in our hedging activities, or if we are unable to price our products to cover increased costs, then commodity and other input price volatility or increases could materially and adversely affect our financial condition and operating results.
In 2023, we continued to experience higher commodity costs and supply chain costs, including manufacturing, procurement, and logistics costs largely due to inflationary pressures concentrated in the first half of the year. Although we take measures to mitigate the impact of this inflation through pricing actions and efficiency gains, if these measures are not effective our financial condition, operating results, and cash flows could be materially adversely affected. Even if such measures are effective, we expect that there could 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 take have, in some instances, negatively impacted and could continue to negatively impact our market share.
Volatility in the market value of all or a portion of the derivatives we use to manage exposures to fluctuations in commodity prices may cause volatility in our gross profit and net income.
We use commodity futures, options, and swaps to economically hedge the price of certain input costs, including dairy products, vegetable oils, corn, coffee beans, wheat products, meat products, sugar cane, and cocoa beans. We recognize gains and losses based on changes in the values of these commodity derivatives. We recognize these gains and losses in cost of products sold in our consolidated statements of income. We recognize the unrealized gains and losses on these commodity derivatives in general corporate expenses until realized; once realized, the gains and losses are recorded in the applicable segment’s operating results. Accordingly, changes in the values of our commodity derivatives may cause volatility in our gross profit and net income.
Regulatory Risks
Our compliance with laws and regulations, and related legal claims or regulatory enforcement actions, could expose us to significant liabilities and damage our reputation.
As a large, global food and beverage company, we operate in a highly regulated environment with constantly evolving legal and regulatory frameworks. Various laws and regulations govern our practices including, but not limited to, those related to advertising and marketing, product claims and labeling, food production, environmental matters (including climate change), packaging and waste management (including packaging containing PFAS), intellectual property, consumer protection and product liability, commercial disputes, trade and export controls, anti-trust, data privacy, labor and employment, workplace health and safety, forced labor, such as the UFLPA, and tax. As a consequence, we face a heightened risk of legal claims and regulatory enforcement actions in the ordinary course of business. In addition, the imposition of new laws, changes in laws or regulatory requirements or changing interpretations thereof, and differing or competing regulations and standards across the markets where our products are made, manufactured, distributed, and sold have in the past and could continue to result in higher compliance costs, capital expenditures, and higher production costs, adversely impacting our product sales, financial condition, and results of operations. Furthermore, actions we have taken or may take, or decisions we have made or may make, in response to pandemics (including the COVID-19 pandemic), may result in investigations, legal claims, or litigation against us. In addition, claims about the health impacts of consumption of our products, or ingredients, components, or substances
17


present or allegedly present in those products or packaging, have resulted in, and could in the future result in, us being subject to regulations, fines, lawsuits, or taxes that could adversely impact our business.
As a result of any such legal claims or regulatory enforcement actions, we could be subject to monetary judgments, settlements, and civil and criminal actions, including fines, injunctions, product recalls, penalties, disgorgement of profits, or activity restrictions, which could materially and adversely affect our reputation, product sales, financial condition, results of operations, and cash flows. We evaluate these legal claims and regulatory enforcement actions to assess the likelihood of unfavorable outcomes and to estimate, if possible, the amount of potential losses. Based on these assessments and estimates, we establish reserves and disclose relevant material litigation claims, legal proceedings, or regulatory enforcement actions as appropriate and in accordance with SEC rules and accounting principles generally accepted in the United States of America (“U.S. GAAP”). Our assessments and estimates are based on the information available to management at the time and involve a significant amount of judgment. Actual outcomes or losses may differ materially from our current assessments and estimates. In addition, even if a claim is unsuccessful, without merit, or not pursued to completion, the cost of defending against or responding to such a claim, including expenses and management time, could adversely affect our financial condition and operating results.
If we fail to maintain an effective system of internal controls, we may not be able to accurately and timely report our financial results, which could negatively impact our business, investor confidence, and the price of our common stock.
If we are unable to maintain effective internal control over financial reporting or disclosure controls and procedures, our ability to record, process, and report financial information accurately and to prepare financial statements within required time periods could be adversely affected, which could subject us to litigation, investigations, or penalties; negatively affect our liquidity, our access to capital markets, perceptions of our creditworthiness, our ability to complete acquisitions, our ability to maintain compliance with covenants under our debt instruments or derivative arrangements regarding the timely filing of periodic reports, or investor confidence in our financial reporting; or cause defaults, accelerations, or cross-accelerations under our debt instruments or derivative arrangements to the extent we are unable to obtain waivers from the required creditors or counterparties or to cure any breaches, any of which may require management resources or cause our stock price to decline.
A downgrade in our credit rating could adversely impact interest costs or access to future borrowings.
Our borrowing costs can be affected by short and long-term credit ratings assigned by rating organizations. A decrease in these credit ratings could limit our access to capital markets and increase our borrowing costs, which could materially and adversely affect our financial condition and operating results. As of the date of this filing, our long-term debt is rated BBB by S&P Global Ratings and Fitch Ratings and Baa2 by Moody’s Investor Services, Inc., with a stable outlook from all three ratings agencies.
Registered Securities Risks
Sales of our common stock in the public market could cause volatility in the price of our common stock or cause the share price to fall.
Sales of a substantial number of shares of our common stock in the public market, including sales of our common stock by Berkshire Hathaway, or the perception that these sales might occur, could depress the market price of our common stock, and could impair our ability to raise capital through the sale of additional equity securities. A sustained depression in the market price of our common stock has happened and could in the future happen, which could also reduce our market capitalization below the book value of net assets, which could increase the likelihood of recognizing goodwill or indefinite-lived intangible asset impairment losses that could negatively affect our financial condition and results of operations.
Kraft Heinz and Berkshire Hathaway are party to a registration rights agreement requiring us to register for resale under the Securities Act all registrable shares held by Berkshire Hathaway, which represents all shares of our common stock held by Berkshire Hathaway as of the date of the closing of the 2015 Merger. As of December 30, 2023, registrable shares represented approximately 26.7% of all outstanding shares of our common stock. Although the registrable shares are subject to certain holdback and suspension periods, the registrable shares are not subject to a “lock-up” or similar restriction under the registration rights agreement. Accordingly, offers and sales of a large number of registrable shares may be made pursuant to an effective registration statement under the Securities Act in accordance with the terms of the registration rights agreement. Sales of our common stock by Berkshire Hathaway to other persons would likely result in an increase in the number of shares being traded in the public market and may increase the volatility of the price of our common stock.
Our share repurchase program may not be fully consummated and the anticipated enhanced long-term stockholder value may not be realized, and share repurchases could increase the volatility of the price of our stock.
In November 2023, the Board authorized the Company to repurchase up to $3.0 billion, exclusive of fees, of our outstanding common stock through December 26, 2026. Our repurchase program does not obligate us to repurchase any specific dollar amount or to acquire any specific number of shares. The timing and amount of any repurchases, if any, will depend on factors
18


such as our historical and expected business performance and cash and liquidity positions, the price of our stock, economic and market conditions, and corporate and regulatory requirements. Our share repurchase program could affect the price of our stock and increase volatility and may be suspended or terminated at any time. We cannot guarantee that we will repurchase shares or conduct future share repurchase programs, or that any such programs, even if fully implemented, will result in long-term increases to stockholder value. Any failure to fully implement our repurchase program may negatively impact our reputation, investor confidence, and the price of the Company’s common stock.
Our ability to pay regular dividends to our stockholders and the amounts of any such dividends are subject to the discretion of the Board and may be limited by our financial condition, debt agreements, or limitations under Delaware law.
Although it is currently anticipated that we will continue to pay regular quarterly dividends, any such determination to pay dividends and the amounts thereof will be at the discretion of the Board and will be dependent on then-existing conditions, including our financial condition, income, legal requirements, including limitations under Delaware law, debt agreements, and other factors the Board deems relevant. The Board has previously decided, and may in the future decide, in its sole discretion, to change the amount or frequency of dividends or discontinue the payment of dividends entirely. For these reasons, stockholders will not be able to rely on dividends to receive a return on investment. Accordingly, realization of any gain on shares of our common stock may depend on the appreciation of the price of our common stock, which may not occur.
General Risk Factors
Disruptions in the global economy caused by geopolitical conflicts could adversely affect our business, financial condition, and results of operations.
Escalation of geopolitical tensions related to military conflict, including increased trade barriers or restrictions on global trade, could result in, among other things, supply chain disruptions, changes in consumer demand, increased cyberattacks, and impacts on foreign exchange rates and financial markets, any of which may adversely affect our business, financial condition, and results of operations. Although we do not have operations in Ukraine, and our business in Russia generated approximately 1% of our consolidated net sales for the year ended December 30, 2023, the military conflict between Russia and Ukraine has caused, and could continue to cause, negative impacts on our business and the global economy. Governments in the United States, Canada, United Kingdom, and European Union have each imposed export controls and economic sanctions on certain industry sectors and parties in Russia. Further, the Russian government has placed restrictions on the transfer of funds to and from Russian entities, making it more difficult to operate in Russia. Failure to comply with applicable sanctions and measures could subject us to regulatory penalties, temporary or permanent loss of assets, or our ability to conduct business operations in Russia. While less than 1% of consolidated total assets are located in Russia as of December 30, 2023, our Russian assets may be partially or fully impaired in future periods, or our business operations terminated, based on actions taken by Russia, other parties, or us. The effects of current geopolitical conflicts, including the conflicts between Russia and Ukraine and in the Middle East and rising tensions between China and Taiwan, as well as potential future geopolitical tensions, could heighten many of our known risks described in this Item 1A, Risk Factors.
Unanticipated business disruptions and natural events in the locations in which we or our customers, suppliers, distributors, or regulators operate could adversely affect our ability to provide products to our customers or our results of operations.
We have a complex network of suppliers, owned and leased manufacturing locations, co-manufacturing locations, distribution networks, and information systems that support our ability to consistently provide our products to our customers. Factors that are hard to predict or beyond our control, such as weather or other geological events or natural disasters, including hurricanes, earthquakes, floods, tsunamis, or wild fires (whether as a result of climate change or otherwise), raw material shortages, fires or explosions, political unrest, geopolitical conflicts (including the ongoing conflicts between Russia and Ukraine and in the Middle East), terrorism, civil strife, acts of war, public corruption, expropriation, generalized labor unrest or labor shortages, or pandemics (including COVID-19), could damage or disrupt our operations or the operations of our customers, suppliers, vendors, co-manufacturers, distributors, or regulators. These factors include, but are not limited to:
natural disasters, labor strikes, or other disruptions at any of our facilities or our suppliers’ or distributors’ facilities may impair or delay the delivery of our products; and
illness of our workforce, or the workforce of third parties with which we do business, due to influenza or pandemics, could disrupt production of our products in one or more of our manufacturing facilities, or cause our suppliers, vendors, distributors, or third-party manufacturers to fail to meet their obligations to us.
19


These or other disruptions may require additional resources to restore our supply chain or distribution network. While we insure against many of these events and certain business interruption risks and have policies and procedures to manage business continuity planning, such insurance may not compensate us for any losses incurred and our business continuity plans may not effectively resolve the issues in a timely manner. To the extent we are unable to respond to disruptions in our operations, whether by finding alternative suppliers or replacing capacity at key manufacturing or distribution locations; to quickly repair damage to our information, production, or supply systems; or to financially mitigate the likelihood or potential impact of such events, or effectively manage them if they occur, we may be late in delivering, or unable to deliver, products to our customers or to track orders, inventory, receivables, and payables. If that occurs, our customers’ confidence in us and long-term demand for our products could decline. Any of these events could materially and adversely affect our product sales, financial condition, and results of operations.
Our performance may be adversely affected by economic and political conditions in the United States and in various other nations where we do business.
Our performance has been in the past and may continue in the future to be impacted by economic and political conditions in the United States and in other nations where we do business. Economic and financial uncertainties in our international markets, changes to major international trade arrangements, and the imposition of tariffs by certain foreign governments could negatively impact our operations and sales. Other factors impacting our operations in the United States and in international locations where we do business include changes in laws, export and import restrictions, foreign currency exchange rates, foreign currency devaluation, cash repatriation restrictions, recessionary conditions, governmental subsidies provided to our consumers, foreign ownership restrictions, nationalization, the impact of hyperinflationary environments, a potential U.S. federal government shutdown, terrorist acts, political unrest, and military conflict. Such factors in either domestic or foreign jurisdictions, and our responses to them, could materially and adversely affect our product sales, financial condition, and operating results.
We rely on our management team and other key personnel and may be unable to hire or retain key personnel or a highly skilled and diverse global workforce.
We depend on the skills, working relationships, and continued services of key personnel, including our experienced management team. In addition, our ability to achieve our operating goals depends on our ability to identify, hire, train, and retain qualified individuals. We compete with other companies both within and outside of our industry for talented personnel, and we may lose key personnel or fail to attract, train, and retain other talented personnel and a diverse global workforce with the skills and in the locations we need to operate and grow our business. Unplanned turnover, failure to attract and develop personnel with key emerging capabilities such as e-commerce and digital marketing skills, or failure to develop adequate succession plans for leadership positions, including the Chief Executive Officer position, could deplete our institutional knowledge base and erode our competitiveness. Further, equity-based compensation is a key component of our compensation program and essential for attracting and retaining qualified personnel. As a result, the lack of positive performance in our stock price may adversely affect our ability to attract or retain key personnel. Changes in immigration laws and policies could also make it more difficult for us to recruit or relocate skilled employees. Any such loss, failure, or limitation could adversely affect our product sales, financial condition, and operating results.
We are significantly dependent on information technology, and we may be unable to protect our information systems against service interruption, misappropriation of data, or breaches of security.
We rely on information technology networks and systems, including the Internet, to process, transmit, and store electronic and financial information, to manage a variety of business processes and activities, and to comply with regulatory, legal, and tax requirements. We also depend on our information technology infrastructure for digital marketing activities and for electronic communications among our locations, personnel, customers, and suppliers. These information technology systems, some of which are managed by third parties, may be susceptible to damage, invasions, disruptions, or shutdowns due to hardware failures, computer viruses, hacker attacks and other cybersecurity risks, telecommunication failures, user errors, catastrophic events, or other factors. Geopolitical tensions or conflicts, and the rapid evolution and increased adoption of artificial intelligence technologies may further heighten the risk of cybersecurity attacks. If our information technology systems suffer severe damage, disruption, or shutdown, by unintentional or malicious actions of employees or contractors or by cyberattacks, and our business continuity plans do not effectively resolve the issues in a timely manner, we could experience business disruptions, reputational damage, transaction errors, processing inefficiencies, the leakage of confidential information, and the loss of customers and sales, causing our product sales, financial condition, and operating results to be adversely affected and the reporting of our financial results to be delayed. While we have developed and implemented security measures and internal controls designed to protect against cyber and other security threats, such measures cannot provide absolute security and may not be successful in preventing future security breaches. Moreover, these threats are constantly evolving, thereby making it more difficult to successfully defend against them or to implement adequate preventative measures. We may not have the current capability to detect certain vulnerabilities, which may allow those vulnerabilities to persist in our systems over long periods of time. In the past, we have experienced security incidents resulting from unauthorized access to or use of our systems
20


or those of third parties, which to date, have not had a material impact on our operations; however, there is no assurance that the impact of any security incidents will not be material in the future.
In addition, if we are unable to prevent security breaches or disclosure of non-public information, we may suffer financial and reputational damage, litigation or remediation costs, fines, or penalties because of the unauthorized disclosure of confidential information belonging to us or to our partners, customers, consumers, or suppliers. While we maintain a cyber insurance policy that provides coverage for security incidents, we cannot be certain that our coverage will be adequate for liabilities actually incurred, that insurance will continue to be available to us on financially reasonable terms, or at all, or that any insurer will not deny coverage as to any future claim.
Misuse, leakage, or falsification of information could result in violations of data privacy laws and regulations, damage to our reputation and credibility, loss of opportunities to acquire or divest of businesses or brands, and loss of our ability to commercialize products developed through research and development efforts and, therefore, could have a negative impact on net sales. In addition, we may suffer financial and reputational damage because of lost or misappropriated confidential information belonging to us, our current or former employees, or to our suppliers or consumers, and may become subject to legal action and increased regulatory oversight. We could also be required to spend significant financial and other resources to remedy the damage caused by a security breach or to repair or replace networks and information systems.
We are also subject to various laws and regulations that are continuously evolving and developing regarding privacy, data protection, and data security, including those related to the collection, storage, handling, use, disclosure, transfer, and security of personal data. Such laws and regulations, as well as their interpretation and application, may vary from jurisdiction to jurisdiction, which can result in inconsistent or conflicting requirements. The European Union’s General Data Protection Regulation (“GDPR”), and similar regulations implemented in other non-U.S. geographies, adds a broad array of requirements with respect to personal data, including the public disclosure of significant data breaches, and imposes substantial penalties for non-compliance. The California Consumer Privacy Act (“CCPA”) and the California Privacy Rights Act (“CPRA”), which amended the CCPA, among other things, impose additional requirements with respect to disclosure and deletion of personal information of California residents. The CCPA and CPRA provide civil penalties for violations, as well as a private right of action for data breaches. Similar legislation in other states imposes transparency and other obligations with respect to personal data of their respective residents and provide residents with similar rights. GDPR, CCPA, CPRA, and other privacy and data protection laws may increase our costs of compliance and risks of non-compliance, which could result in substantial penalties.
Our results could be adversely impacted as a result of increased pension, labor, and people-related expenses.
Inflationary pressures, shortages in the labor market, increased employee turnover, and changes in the availability of our workers could increase labor costs, which could have a material adverse effect on our consolidated operating results or financial condition. Our labor costs include the cost of providing employee benefits in the United States, Canada, and other foreign jurisdictions, including pension, health and welfare, and severance benefits. Any declines in market returns could adversely impact the funding of pension plans, the assets of which are invested in a diversified portfolio of equity and fixed-income securities and other investments. Additionally, the annual costs of benefits vary with increased costs of health care and the outcome of collectively bargained wage and benefit agreements.
Furthermore, we may be subject to increased costs or experience adverse effects to our operating results if we are unable to renew collectively bargained agreements on satisfactory terms. Our financial condition and ability to meet the needs of our customers could be materially and adversely affected if strikes or work stoppages or interruptions occur as a result of delayed negotiations with union-represented employees both in and outside of the United States.
We continue to observe a competitive labor market. Employee turnover, changes in the availability of our workers, and labor shortages in our supply chain have resulted in, and could continue to result in, increased costs and have, and could again, impact our ability to meet consumer demand, both of which could negatively affect our financial condition, results of operations, or cash flows.
Changes in tax laws and interpretations could adversely affect our business.
We are subject to income and other taxes in the United States and in numerous foreign jurisdictions. Our domestic and foreign tax liabilities are dependent on the jurisdictions in which profits are determined to be earned and taxed. Additionally, the amount of taxes paid is subject to our interpretation of applicable tax laws in the jurisdictions in which we operate. A number of factors influence our effective tax rate, including changes in tax laws and treaties as well as the interpretation of existing laws and rules. Federal, state, and local governments and administrative bodies within the United States, which represents the majority of our operations, and other foreign jurisdictions have implemented, or are considering, a variety of broad tax, trade, and other regulatory reforms that may impact us. Additionally, 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
21


global minimum tax. Many countries have enacted or begun the process of enacting laws based on the two-pillar plan proposals. It is not currently possible to accurately determine the potential comprehensive impact of these or future changes, but these changes could have a material impact on our effective tax rate, financial condition, and business.
Significant judgment, knowledge, and experience are required in determining our worldwide provision for income taxes. Our future effective tax rate is impacted by a number of factors including changes in the valuation of our deferred tax assets and liabilities, changes in geographic mix of income, changes in expenses not deductible for tax, including impairment of goodwill, and changes in available tax credits. In the ordinary course of our business, there are many transactions and calculations where the ultimate tax determination is uncertain. We are also regularly subject to audits by tax authorities. Although we believe our tax estimates are reasonable, the final determination of tax audits, including transfer pricing matters, and any related litigation could be materially different from our historical income tax provisions and accruals. For example, we are currently under examination for income taxes by the Internal Revenue Service (“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; however, the ultimate outcome of this matter is uncertain, and if we are required to pay the IRS additional U.S. taxes, interest, and potential penalties, our results of operations and cash flows could be materially affected. 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. Economic and political pressures to increase tax revenue in various jurisdictions may make resolving tax disputes more difficult. The results of an audit or litigation could adversely affect our financial statements in the period or periods for which that determination is made.
Volatility of capital markets or macroeconomic factors could adversely affect our business.
Changes in financial and capital markets, including market disruptions, instability in financial institutions, limited liquidity, and interest rate volatility, may increase the cost of financing as well as the risks of refinancing maturing debt. Additionally, some of our customers, suppliers, and counterparties are highly leveraged. Consolidations in some of the industries in which our customers operate have created larger customers, some of which are highly leveraged and facing increased competition and continued credit market volatility. These factors have caused some customers to be less profitable, increasing our exposure to credit risk. A significant adverse change in the financial and/or credit position of a customer, supplier, or counterparty could require us to assume greater credit risk relating to that customer or counterparty and could limit our ability to collect receivables. This could have an adverse impact on our financial condition and liquidity.
Item 1B. Unresolved Staff Comments.
None.
Item 1C. Cybersecurity
Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure
The Company assesses, identifies, and manages cybersecurity risk using a data-driven risk management program intended to reduce risks to the following impact classes: the Company’s obligations to prevent harm to parties, including employees, customers, and stockholders; and the Company’s business objectives.
As part of our cybersecurity strategy, we set risk targets based on our risk thresholds using industry-recognized standards for controlling and evaluating the risk of cybersecurity threats. The Company has developed cybersecurity policies supported by defined standards, including identity and access control, network controls, operational security, information classification, cybersecurity risk management, incident management and reporting, and security in software development lifecycle.
We undertake scheduled and targeted cybersecurity risk assessments to identify and prioritize risks to our three impact classes so that foreseeably harmed parties (which include our employees, contractors, partners, customers, stockholders, consumers, and suppliers) are explicitly included in our risk analysis and risk management priorities. We plan for, implement, and improve safeguards that are designed to reduce unacceptable risks to any foreseeably harmed party. We engage third-party service providers (including contractors and vendors) as part of our normal business operations, including collaborating with third-party experts to assist with evaluating, identifying, and managing our cybersecurity risks.
22


Our cybersecurity risk management program includes:
Ongoing audits of third-party service providers, including penetration testing and reviews of program maturity based on the National Institute of Standards and Technology (“NIST”) cybersecurity framework;
Due diligence reviews of third-party service providers’ information security programs;
Regular phishing, social engineering, and cybersecurity awareness training for employees with Company emails and access to connected devices;
Annual tabletop exercises to educate and train our personnel on response capabilities and inform adjustments to our controls and response;
Regular consultation with external advisors and specialists regarding opportunities and enhancements to strengthen our cybersecurity practices and policies;
Ongoing cybersecurity event monitoring, management, and testing of incident response procedures; and
Ongoing enhancements to cybersecurity capabilities based on evolving threats.
We have adopted an incident response plan that applies in the event of a cybersecurity threat or incident to provide a standardized framework for responding to such cybersecurity incidents. The plan sets out a coordinated approach to investigating, containing, documenting, and mitigating incidents, including reporting findings and keeping senior management, the Board, and other key stakeholders informed and involved as appropriate. The plan is aligned to NIST guidance. It also adheres to standards of practice and includes the involvement of any personnel who may detect incidents, respond to incidents, resolve incidents, and manage communications and responsibilities with authorities about those incidents. The plan applies to all Company personnel (including third-party contractors, vendors, and partners) that perform functions or services requiring access to secure Company information, and to all devices and network services that are owned or managed by the Company.
We also employ systems and processes designed to oversee, identify, and reduce the potential impact of a cybersecurity incident at a third-party service provider. We maintain a third-party cyber risk management process to review and monitor potentially material third-party service providers’ security controls. Third-party service providers are required to provide independent attestation reports of their control environment, which are reviewed to validate that the controls meet Company security requirements. In the absence of such reports, third-party service providers are required to complete a detailed questionnaire describing their controls and provide relevant documentation. As part of the third-party risk management process, we request and review annual penetration test reports for the third-party service providers designed to assess whether all high and medium risk findings are addressed. The control environments for third-party service providers are reviewed annually.
Our cybersecurity risk mitigation strategy includes the use of cybersecurity insurance that provides protection against certain potential losses arising from certain cybersecurity incidents.
Risk management concerns, priorities, and progress are reported to the Company’s Enterprise Risk Committee quarterly as part of the Company’s overall enterprise risk management process. Risk management reports describe cybersecurity priorities, planned safeguards, and resource requirements necessary to achieve acceptable risk outcomes for foreseeably harmed parties.
The Company governs cybersecurity risk through a risk management program designed to enable employees, members of the Audit Committee, Enterprise Risk Committee, executive officers, and other personnel to make informed decisions about cybersecurity risk management that are appropriate for their level of responsibility. Our Chief Information Security Officer (“CISO”) oversees the team responsible for leading enterprise-wide information security strategy, policy, standards, architecture, and processes. Our CISO has extensive cybersecurity knowledge and skills gained from more than 20 years of work experience in information security in the consumer goods, banking, legal, healthcare, and education sectors as well as the government. Our CISO holds a master’s degree in computer and information systems security/information assurance and designations as a Certified Information Systems Security Professional (CISSP) and Certified Information Security Manager (CISM). The CISO evaluates cybersecurity risks, plans for reduction of risks, directs resources and priorities to improve cybersecurity safeguards, measures the results of those efforts, reports to our senior and executive leaders (including our Global Chief Information Officer and Global Chief Financial Officer), the Enterprise Risk Management Committee, and the Audit Committee regarding our cybersecurity risk priorities and progress, and solicits support from senior and executive leaders to further reduce risks through resources, prioritization, or other means. The CISO receives reports on cybersecurity threats from our Security Operations Center, external threat intel, trusted third-party security suppliers, and a peer network of CISOs at other global companies on an ongoing basis. Our Security Operations Center verifies and validates the threat information and modifies our detection and preventative controls as appropriate. Our CISO works closely with our Chief Global Ethics and Compliance Officer and Chief Legal and Corporate Affairs Officer to oversee compliance with legal, regulatory, and contractual security requirements. The CISO’s team evaluates third-party service providers to a degree commensurate with the risk their services pose to us. As part of that program, we also provide feedback to service providers about risks they can reduce using commercially available safeguards. Additionally, the information security team works in partnership with the Company’s internal audit team to review information technology-related internal controls as part of our overall internal controls process.
23


The Audit Committee is responsible for oversight of the Company’s information technology and cybersecurity risks. To fulfill its oversight responsibilities, the Audit Committee reviews the measures implemented by the Company to identify and mitigate cybersecurity risks and the Audit Committee receives updates from our Global Chief Information Officer and CISO at least twice a year, which cover topics related to information security, privacy, and cybersecurity risks, and the risk management processes, including the status of significant cybersecurity incidences, the emerging threat landscape, and the status of projects to strengthen the Company’s information security posture. The Audit Committee regularly reports to the Board on information technology, cybersecurity, and privacy matters. We have protocols by which certain cybersecurity incidents that meet established reporting thresholds are escalated within the Company and, where appropriate, reported promptly to the Audit Committee or Board, with ongoing updates regarding any such incident until it has been addressed.
We also rely on information technology, third-party service providers, and strategic joint venture partners to support our business and operations, including our secure processing of personal, confidential, financial, sensitive, proprietary, and other types of information, and to enable our service offerings. Despite ongoing efforts to improve our and third parties’ ability to protect against cybersecurity threats, we may not be able to protect all information systems, products, and service technologies.
While we have not experienced any material cybersecurity threats or incidents as of the date of this Annual Report on Form 10-K, there can be no guarantee that we will not be the subject of future successful attacks, threats, or incidents that may materially affect the Company or its business strategy, results of operations or financial condition. Additional information on cybersecurity-related risks is discussed under the heading “We are significantly dependent on information technology, and we may be unable to protect our information systems against service interruption, misappropriation of data, or breaches of security.” under Item 1A, Risk Factors.
Item 2. Properties.
Our corporate co-headquarters are located in Pittsburgh, Pennsylvania and Chicago, Illinois. Our co-headquarters are leased and house certain executive offices, our U.S. business units, and our administrative, finance, legal, and human resource functions. We maintain additional owned and leased offices throughout the regions in which we operate.
We manufacture our products in our network of manufacturing and processing facilities located throughout the world. As of December 30, 2023, we operated 75 manufacturing and processing facilities. We own 70 and lease five of these facilities. Our manufacturing and processing facilities count by segment as of December 30, 2023 was:
OwnedLeased
North America322
International383
We maintain all of our manufacturing and processing facilities in good condition and believe they are suitable and are adequate for our present needs. We also enter into co-manufacturing arrangements with third parties if we determine it is advantageous to outsource the production of any of our products.
In 2023, we ceased operations of our facility in Irvine, California in our North America segment and two manufacturing facilities in China within our International segment as part of our planned restructuring activities. See Note 5, Restructuring Activities, in Item 8, Financial Statements and Supplementary Data, for additional information on our exit and disposal costs.
Item 3. Legal Proceedings.
See Note 15, Commitments and Contingencies, in Item 8, Financial Statements and Supplementary Data.
Item 4. Mine Safety Disclosures.
Not applicable.
PART II
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Our common stock is listed on The Nasdaq Stock Market LLC (Nasdaq) under the ticker symbol “KHC.” At February 10, 2024, there were approximately 37,627 holders of record of our common stock.
See Equity and Dividends in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, for a discussion of cash dividends declared on our common stock.
24


Comparison of Cumulative Total Return
The following graph compares the cumulative total return on our common stock with the cumulative total return of the S&P 500 Index and the S&P Consumer Staples Food and Soft Drink Products, which we consider to be our peer group. Companies included in the S&P Consumer Staples Food and Soft Drink Products index change periodically and are presented on the basis of the index as it is comprised on December 30, 2023. This graph covers the five-year period from December 28, 2018 (the last trading day of our fiscal year 2018) through December 29, 2023 (the last trading day of our fiscal year 2023). The graph shows total shareholder return assuming $100 was invested on December 28, 2018 and the dividends were reinvested on a daily basis.
Screenshot 2024-01-10 164448 1.10.24.gif

Kraft HeinzS&P 500S&P Consumer Staples Food and Soft Drink Products
December 28, 2018$100.00 $100.00 $100.00 
December 27, 201976.72 132.97 128.43 
December 24, 202089.80 154.78 135.53 
December 23, 202194.37 200.34 153.96 
December 30, 2022113.64 165.48 170.15 
December 29, 2023107.91 208.99 161.89 
The above performance graph shall not be deemed to be “soliciting material” or to be “filed” with the SEC or subject to Regulation 14A or 14C, or to the liabilities of Section 18 of the Exchange Act.
25


Issuer Purchases of Equity Securities During the Three Months Ended December 30, 2023
Our share repurchase activity in the three months ended December 30, 2023 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)
10/01/2023 11/04/2023
143,353 $33.74 — $— 
11/05/2022 12/02/2023
2,139,192 35.12 2,135,574 2,925 
12/03/2023 12/30/2023
6,153,670 36.60 6,149,491 2,700 
Total8,436,215 8,285,065 
(a)    Includes (1) shares purchased pursuant to the share repurchase program described in (b) below, (2) shares repurchased to offset the dilutive effect of the exercise of stock options using option exercise proceeds and the vesting restricted stock units (“RSUs”) and performance share units (“PSUs”), and (3) 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 6. [Reserved].
26


Item 7. 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 consolidated financial statements and related notes included in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K. 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.
See below for discussion and analysis of our financial condition and results of operations for 2023 compared to 2022. See Item 7, Management’s Discussions and Analysis of Financial Condition and Results of Operations, in our Annual Report on Form 10-K for the year ended December 31, 2022 for a detailed discussion of our financial condition and results of operations for 2022 compared to 2021.
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.
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”), and Asia Emerging Markets (“AEM”) — in order to enable enhanced focus on the different strategies required for each of these regions as part of our long-term strategic plan.
As a result of these changes, we expect to have two reportable segments: North America and International Developed Markets. We anticipate that our remaining operating segments, consisting of WEEM and AEM, will be combined and disclosed as Emerging Markets. We expect that the change to our reportable segments will be effective in the first quarter of 2024.
See Note 20, Segment Reporting, in Item 8, Financial Statements and Supplementary Data, for our financial information by segment.
Conflict Between Russia and Ukraine:
For the years ended December 30, 2023 and December 31, 2022, approximately 1% of consolidated net sales, net income/(loss), and Adjusted EBITDA were generated from our business in Russia. As of December 30, 2023, less than 1% of consolidated total assets were located in Russia and we had approximately 1,100 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 2023, 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
Impairment Losses:
Our results of operations reflect goodwill impairment losses of $510 million and intangible asset impairment losses of $152 million in 2023 compared to goodwill impairment losses of $444 million, intangible asset impairment losses of $469 million, and net property, plant, and equipment asset impairment losses of $86 million in 2022. See Note 4, Acquisitions and Divestitures, and Note 8, Goodwill and Intangible Assets, in Item 8, Financial Statements and Supplementary Data, for additional information on these impairment losses.
53rd Week:
We operate on a 52- or 53-week fiscal year ending on the last Saturday in December in each calendar year. 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.
27


Inflation and Supply Chain Impacts:
During the year ended December 30, 2023, we experienced increased supply chain costs, including procurement, and manufacturing costs, largely due to inflationary pressures concentrated in the first half of the year, as compared to the prior year period. While these costs have a negative impact on our results of operations, we have taken measures to mitigate the impact of this inflation through pricing actions, efficiency gains, 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 consolidated financial statements, which are calculated in accordance with U.S. GAAP, see Non-GAAP Financial Measures.
Consolidated Results of Operations
Summary of Results:
December 30, 2023December 31, 2022% Change
(in millions, except per share data)
Net sales$26,640 $26,485 0.6 %
Operating income/(loss)4,572 3,634 25.8 %
Net income/(loss)2,846 2,368 20.2 %
Net income/(loss) attributable to common shareholders2,855 2,363 20.8 %
Diluted EPS2.31 1.91 20.9 %
Net Sales:
December 30, 2023December 31, 2022% Change
(in millions)
Net sales$26,640 $26,485 0.6 %
Organic Net Sales(a)
26,774 25,889 3.4 %
(a)     Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item.
Fiscal Year 2023 Compared to Fiscal Year 2022:
Net sales increased 0.6% to $26.6 billion in 2023 compared to $26.5 billion in 2022, including the unfavorable impacts of lapping a 53rd week of shipments in the prior period (1.8 pp), foreign currency (0.9 pp), and acquisitions and divestitures (0.1 pp). Organic Net Sales increased 3.4% to $26.8 billion in 2023 compared to $25.9 billion in 2022, primarily driven by higher pricing (8.9 pp), which more than offset unfavorable volume/mix (5.5 pp). Pricing was higher in both segments, while volume/mix was unfavorable in both segments.
Net Income/(Loss):
December 30, 2023December 31, 2022% Change
(in millions)
Operating income/(loss)$4,572 $3,634 25.8 %
Net income/(loss)2,846 2,368 20.2 %
Net income/(loss) attributable to common shareholders2,855 2,363 20.8 %
Adjusted EBITDA(a)
6,307 6,003 5.1 %
(a)    Adjusted EBITDA is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item.
28


Fiscal Year 2023 Compared to Fiscal Year 2022:
Operating income/(loss) increased 25.8% to $4.6 billion in 2023 compared to $3.6 billion in 2022, primarily driven by higher pricing, efficiency gains, lower non-cash impairment losses in the current year period, and the impact of the securities class action lawsuit in the prior year period. These impacts more than offset higher commodity costs, including the impact of realized and unrealized gains and losses on commodity hedges; higher supply chain costs, reflecting inflationary pressure in manufacturing and procurement costs; unfavorable volume/mix; increased selling, general and administrative expenses (“SG&A”), particularly advertising expenses; and the decrease from lapping a 53rd week of shipments in the prior period.
Net income/(loss) increased 20.2% to $2.8 billion in 2023 compared to $2.4 billion in 2022. This increase was driven by the operating income/(loss) factors discussed above and lower interest expense, which more than offset unfavorable changes in other expense/(income) and higher tax expense.
Interest expense was $912 million in 2023 compared to $921 million in 2022.
Our effective tax rate was 21.7% in 2023 compared to 20.2% in 2022. Our 2023 effective tax rate was favorably impacted by the geographic mix of pre-tax income in various non-U.S. jurisdictions. These impacts were partially offset by the impact of certain unfavorable rate reconciling items, primarily non-deductible goodwill impairments and the impact of the federal tax on global intangible low-taxed income (“GILTI”). Our 2022 effective tax rate was impacted by the favorable geographic mix of pre-tax income in various non-U.S. jurisdictions and certain favorable items, primarily the decrease in deferred tax liabilities due to the merger of certain foreign entities, the revaluation of deferred tax balances due to changes in state tax laws, and changes in estimates of certain 2021 U.S. income and deductions. This impact was partially offset by the impact of certain unfavorable items, primarily non-deductible goodwill impairments, the impact of the federal tax on GILTI, and the establishment of uncertain tax positions and valuation allowance reserves. The year-over-year increase in the effective tax rate was due primarily to the decrease in deferred tax liabilities due to the merger of certain foreign entities and the revaluation of deferred tax balances due to changes in state tax laws in the prior year versus the current year.
Other expense/(income) was $27 million of expense in 2023 compared to $253 million of income in 2022. This change was primarily driven by a $67 million net pension and postretirement non-service costs in 2023 compared to a $135 million net pension and postretirement non-service benefit in 2022 due in part to the settlement of one of our U.K. defined benefit pension plans, which resulted in pre-tax losses of $162 million. Further, additional changes in other expense/(income) were driven by a $73 million net foreign exchange loss in 2023 compared to a $106 million net foreign exchange gain in 2022, and a $21 million decrease in gain on sale of businesses. These impacts were partially offset by a $59 million net gain on derivative activities in 2023 compared to an $50 million net loss on derivative activities in 2022, and a $13 million increase in interest income as compared to the prior year period.
Adjusted EBITDA increased 5.1% to $6.3 billion in 2023 compared to $6.0 billion in 2022, primarily due to higher pricing and efficiency gains, which more than offset higher commodity costs, including the impact of realized gains and losses on commodity hedges; higher supply chain costs, reflecting inflationary pressure in manufacturing, procurement, and logistics; unfavorable volume/mix; increased SG&A, particularly in advertising expenses; the decrease from lapping a 53rd week of shipments in the prior period (2.1 pp); and the unfavorable impact of foreign currency (0.9 pp).
Diluted Earnings Per Share (“EPS”):
December 30, 2023December 31, 2022% Change
(in millions, except per share data)
Diluted EPS$2.31 $1.91 20.9 %
Adjusted EPS(a)
2.98 2.78 7.2 %
(a)    Adjusted EPS is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item.
29


Fiscal Year 2023 Compared to Fiscal Year 2022:
Diluted EPS increased 20.9% to $2.31 in 2023 compared to $1.91 in 2022, primarily driven by the net income/(loss) factors discussed above.
December 30, 2023December 31, 2022$ Change% Change
Diluted EPS$2.31 $1.91 $0.40 20.9 %
Restructuring activities0.16 0.05 0.11 
Unrealized losses/(gains) on commodity hedges— 0.04 (0.04)
Impairment losses0.50 0.70 (0.20)
Certain non-ordinary course legal and regulatory matters— 0.13 (0.13)
Losses/(gains) on sale of business— (0.01)0.01 
Other losses/(gains) related to acquisitions and divestitures— (0.02)0.02 
Nonmonetary currency devaluation0.02 0.01 0.01 
Debt prepayment and extinguishment (benefit)/costs— (0.03)0.03 
Certain significant discrete income tax items(0.01)— (0.01)
Adjusted EPS(a)
$2.98 $2.78 $0.20 7.2 %
Key drivers of change in Adjusted EPS(a):
Results of operations$0.27 
53rd week(0.06)
Interest expense0.03 
Other expense/(income)(0.03)
Effective tax rate(0.01)
$0.20 
(a)     Adjusted EPS is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item.
Adjusted EPS increased 7.2% to $2.98 in 2023 compared to $2.78 in 2022 primarily driven by higher Adjusted EBITDA and lower interest expense, which more than offset the decrease from lapping a 53rd week of shipments in the prior period, unfavorable changes in other expense/(income), and higher taxes on adjusted earnings.
Results of Operations by Segment
Management evaluates segment performance based on several factors, including net sales, Organic Net Sales, and Segment Adjusted EBITDA. 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 restructuring activities); in addition to these adjustments, we exclude, when they occur, the impacts of divestiture-related license income, 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, certain non-ordinary course legal and regulatory matters, and equity award compensation expense (excluding restructuring activities). 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. Management also uses Segment Adjusted EBITDA to allocate resources.
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 consolidated statement of income, as nonmonetary currency devaluation, rather than accumulated other comprehensive income/(losses) on our consolidated balance sheet, until such time as the economy is no longer considered highly inflationary. See Note 2, Significant Accounting Policies, in Item 8, Financial Statements and Supplementary Data, for additional information. We apply highly inflationary accounting to the results of our subsidiaries in Venezuela, Argentina, and Turkey, which are all in our International segment.
30


Net Sales:
December 30, 2023December 31, 2022
(in millions)
Net sales:
North America$20,126 $20,340 
International6,514 6,145 
Total net sales$26,640 $26,485 
Organic Net Sales:
2023 Compared to 2022
December 30, 2023December 31, 2022
(in millions)
Organic Net Sales(a):
North America$20,191 $19,983 
International6,583 5,906 
Total Organic Net Sales$26,774 $25,889 
(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 were:
Net SalesCurrencyAcquisitions and Divestitures53rd WeekOrganic Net SalesPriceVolume/Mix
2023 Compared to 2022
North America(1.0)%(0.3) pp0.0 pp(1.7) pp1.0 %7.5 pp(6.5) pp
International6.0 %(3.2) pp(0.5) pp(1.8) pp11.5 %13.6 pp(2.1) pp
Kraft Heinz0.6 %(0.9) pp(0.1) pp(1.8) pp3.4 %8.9 pp(5.5) pp
Adjusted EBITDA:
December 30, 2023December 31, 2022
 (in millions)
Segment Adjusted EBITDA:
North America$5,603 $5,284 
International1,094 1,017 
General corporate expenses(390)(298)
Depreciation and amortization (excluding restructuring activities)(923)(922)
Divestiture-related license income54 56 
Restructuring activities(60)(74)
Deal costs— (9)
Unrealized gains/(losses) on commodity hedges(1)(63)
Impairment losses(662)(999)
Certain non-ordinary course legal and regulatory matters(2)(210)
Equity award compensation expense(141)(148)
Operating income/(loss)4,572 3,634 
Interest expense912 921 
Other expense/(income)27 (253)
Income/(loss) before income taxes$3,633 $2,966 
31


North America:
2023 Compared to 2022
December 30, 2023December 31, 2022% Change
(in millions)
Net sales$20,126 $20,340 (1.0)%
Organic Net Sales(a)
20,191 19,983 1.0 %
Segment Adjusted EBITDA5,603 5,284 6.0 %
(a)     Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item.
Fiscal Year 2023 Compared to Fiscal Year 2022:
Net sales decreased 1.0% to $20.1 billion in 2023 compared to $20.3 billion in 2022, including the decrease from lapping a 53rd week of shipments in the prior period (1.7 pp) and the unfavorable impacts of foreign currency (0.3 pp). Organic Net Sales increased 1.0% to $20.2 billion in 2023 compared to $20.0 billion in 2022, driven by higher pricing (7.5 pp), which more than offset unfavorable volume/mix (6.5 pp). Higher pricing was primarily driven by increases to mitigate higher input costs, particularly in the first half of 2023. Unfavorable volume/mix was primarily due to elasticity impacts from pricing actions and due, in part, to the reduction of Supplemental Nutrition Assistance Program (“SNAP”) benefits.
Segment Adjusted EBITDA increased 6.0% to $5.6 billion in 2023 compared to $5.3 billion in 2022, primarily due to higher pricing and efficiency gains, which more than offset higher commodity costs, including the impact of realized gains and losses on commodity hedges; unfavorable volume/mix; higher supply chain costs, reflecting inflationary pressure in manufacturing costs; increased SG&A, particularly advertising expenses; the decrease from lapping a 53rd week of shipments in the prior period (2.2 pp); and the unfavorable impact of foreign currency (0.3 pp).
International:
2023 Compared to 2022
December 30, 2023December 31, 2022% Change
(in millions)
Net sales$6,514 $6,145 6.0 %
Organic Net Sales(a)
6,583 5,906 11.5 %
Segment Adjusted EBITDA1,094 1,017 7.6 %
(a)    Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item.
Fiscal Year 2023 Compared to Fiscal Year 2022:
Net sales increased 6.0% to $6.5 billion in 2023 compared to $6.1 billion in 2022, including the unfavorable impacts of foreign currency (3.2 pp), lapping a 53rd week of shipments in the prior period (1.8 pp), and acquisitions and divestitures (0.5 pp). Organic Net Sales increased 11.5% to $6.6 billion in 2023 compared to $5.9 billion in 2022, driven by higher pricing (13.6 pp), which more than offset unfavorable volume/mix (2.1 pp). Higher pricing included increases across markets primarily to mitigate higher input costs. Unfavorable volume/mix was primarily due to the elasticity impacts from pricing actions, particularly in our Northern Europe region, which more than offset favorable volume/mix growth in emerging markets within our Eastern Europe and LATAM regions.
Segment Adjusted EBITDA increased 7.6% to $1.1 billion in 2023 compared to $1.0 billion in 2022, primarily due to higher pricing and efficiency gains, partially offset by higher supply chain costs, reflecting inflationary pressure in manufacturing and procurement costs; increased SG&A, particularly advertising expenses; higher commodity costs; unfavorable volume/mix; the unfavorable impact of foreign currency (4.3 pp); and the decrease from lapping a 53rd week of shipments in the prior period (1.8 pp).
Liquidity and Capital Resources
We believe that cash generated from our operating activities, commercial paper programs, and 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.
32


Acquisitions and Divestitures:
In the first quarter of 2022, we acquired 85% of the shares of Just Spices GmbH (“Just Spices”), a German-based company focused on direct-to-consumer sales of premium spice blends, from certain third-party shareholders (the “Just Spices Acquisition”) for cash consideration of approximately $243 million. In the third quarter of 2023, we completed the redemption of an additional 5% of the outstanding shares and own 90% of the controlling interest in Just Spices as of December 30, 2023.
In the second quarter of 2022, we acquired a majority of the outstanding equity interests of Companhia Hemmer Indústria e Comércio (“Hemmer”), a Brazilian food and beverage manufacturing company focused on the condiments and sauces category, from certain third-party shareholders (the “Hemmer Acquisition”) for cash consideration of approximately $279 million.
In the fourth quarter of 2022, we sold our business-to-business powdered cheese business to a third party, Kerry Group, for cash consideration of approximately $108 million (the “Powdered Cheese Transaction”).
In the fourth quarter of 2021, we closed on our transaction with a third party, an affiliate of Groupe Lactalis, to sell certain assets in our global cheese business, as well as to license certain trademarks (the “Cheese Transaction”). In connection with the Cheese Transaction, we paid approximately $620 million of cash taxes in the second quarter of 2022, primarily to U.S. federal and state tax authorities.
See Note 4, Acquisitions and Divestitures, in Item 8, Financial Statements and Supplementary Data, for additional information on our acquisitions and divestitures.
Cash Flow Activity for 2023 Compared to 2022:
Net Cash Provided by/Used for Operating Activities:
Net cash provided by operating activities was $4.0 billion for the year ended December 30, 2023 compared to $2.5 billion for the year ended December 31, 2022. This increase was primarily driven by lower cash outflows in the current year for inventories, primarily related to stock rebuilding in the prior year, lower cash outflows in the current year for cash tax payments driven by cash taxes paid in 2022 related to the Cheese Transaction, higher Adjusted EBITDA in 2023, and lower interest payments in the current period due to the reduction of long-term debt throughout 2022. These impacts were partially offset by cash payments associated with the settlement of the consolidated securities class action lawsuit. See Note 15, Commitments and Contingencies, in Item 8, Financial Statements and Supplementary Data, for additional information on our legal proceedings.
Net Cash Provided by/Used for Investing Activities:
Net cash used for investing activities was $916 million for the year ended December 30, 2023 compared to net cash used for investing activities of $1.1 billion for the year ended December 31, 2022. This change was primarily driven by payments for the Just Spices Acquisition and Hemmer Acquisition in 2022, partially offset by higher proceeds from the settlement of net investment hedges in the prior year period, proceeds from the Powdered Cheese Transaction in 2022, and higher capital expenditures in the current year period. We had 2023 capital expenditures of $1.0 billion compared to 2022 capital expenditures of $916 million. We expect 2024 capital expenditures to be approximately $1.1 billion, primarily driven by capital investments focused on generating growth, including capacity expansion, cost improvement, digital, and automation projects, as well as capital investments in maintenance and technology.
Net Cash Provided by/Used for Financing Activities:
Net cash used for financing activities was $2.7 billion for the year ended December 30, 2023 compared to $3.7 billion for the year ended December 31, 2022. This change was primarily due to proceeds from the issuance of 600 million euro aggregate principal amount floating rate senior notes in 2023 and lower repayments of long-term debt in the current year period, partially offset by increased common stock repurchases primarily driven by our share repurchase program. See Note 16, Debt, in Item 8, Financial Statements and Supplementary Data, for additional information on our debt transactions and Note 18, Capital Stock, in Item 8, Financial Statements and Supplementary Data, for additional information on our share repurchase program.
Cash Held by International Subsidiaries:
Of the $1.4 billion cash and cash equivalents on our consolidated balance sheet at December 30, 2023, $980 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 2023 accumulated earnings of certain international subsidiaries is approximately $60 million. Our undistributed historical 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 December 30, 2023 and December 31, 2022, and relates to local withholding taxes that will be owed when this cash is distributed.
33


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 zero to 220 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 did not pledge any 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 December 30, 2023 and $1.1 billion at December 31, 2022. The amounts were included in trade payables on our consolidated balance sheets.
Borrowing Arrangements:
From time to time, we obtain funding through our commercial paper programs. We had no commercial paper outstanding at December 30, 2023 or at December 31, 2022. Under our U.S. commercial paper program, the maximum amount of commercial paper outstanding was $150 million and $198 million during the years ended December 30, 2023 and December 31, 2022.
In July 2022, together with KHFC, our 100% owned operating subsidiary, we entered into a new credit agreement (the “Credit Agreement”), which provides for a five-year senior unsecured revolving credit facility in an aggregate amount of $4.0 billion (the “Senior Credit Facility”) and replaced our then-existing credit facility (the “Previous Senior Credit Facility”). On July 21, 2023, we entered into an agreement to extend the maturity date of our Senior Credit Facility from July 8, 2027 to July 8, 2028.
No amounts were drawn on our Senior Credit Facility at December 30, 2023 or December 31, 2022. No amounts were drawn on our Senior Credit Facility during the years ended December 30, 2023 or December 31, 2022, or on the Previous Senior Credit Facility during the year ended December 31, 2022.
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 December 30, 2023.
Long-Term Debt:
Our long-term debt, including the current portion, was $20.0 billion at December 30, 2023 and $20.1 billion at December 31, 2022. This decrease was primarily due to the repayment of 750 million euro aggregate principal amount of senior notes due in June 2023, which more than offset the issuance of 600 million euro aggregate principal amount of floating rate senior notes issued in May 2023.
We have aggregate principal amounts of senior notes of approximately 550 million euros maturing in May 2024.
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 December 30, 2023.
See Note 16, Debt, in Item 8, Financial Statements and Supplementary Data, for additional information on our long-term debt activity.
Equity and Dividends:
We paid dividends on our common stock of $2.0 billion in 2023, 2022, and 2021. Additionally, in the first quarter of 2024, our Board declared a cash dividend of $0.40 per share of common stock, which is payable on March 29, 2024 to stockholders of record on March 8, 2024.
The declaration of dividends is subject to the discretion of our Board and depends on various factors, including our net income, financial condition, cash requirements, future prospects, and other factors that our Board deems relevant to its analysis and decision making.
On November 27, 2023, we announced that the Board 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 Exchange Act, privately negotiated transactions, transactions structured through investment banking institutions, or other means. As of December 30, 2023, we had remaining authorization under the share repurchase program of
34


approximately $2.7 billion. The share repurchase program is in addition to our share repurchases to offset the dilutive effect of equity-based compensation.
Aggregate Contractual Obligations:
Related to our current and long-term material cash requirements, the following table summarizes our aggregate contractual obligations at December 30, 2023, which we expect to primarily fund with cash from operating activities (in millions):
Material Cash Requirements
20242025-20262027-20282029 and ThereafterTotal
Long-term debt(a)
$1,509 $4,254 $4,960 $22,398 $33,121 
Finance leases(b)
36 55 47 68 206 
Operating leases(c)
131 240