Company: KHC
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001637459-25-000152
Chunk: 118

Company: Kraft Heinz Co
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 8
Chunk 118
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2024. We determined the fair value of our long-term debt using Level 2 inputs. Fair values are generally estimated based on quoted market prices for identical or similar instruments.Synthetic Lease Arrangements:In June 2023, we entered into a non-cancellable synthetic lease for a distribution facility, for which we are the construction agent, for which we now anticipate the estimated construction cost to be approximately $625 million. The lease will commence upon completion of construction of the facility which is now expected to be in the later part of 2027. The term of the lease is five years after commencement. At the end of the lease term, we will be required to either purchase the facility or, in the event that option is not elected, to remarket the facility. Upon lease commencement, the lease classification, right-of-use asset, and lease liability will be determined and recorded. The lease arrangement contains a residual value guarantee of 100% of the total construction cost. The construction agreement and lease contain covenants that are consistent with our Senior Credit Facility.

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Note 15.  Earnings Per Share

Our earnings per common share (“EPS”) were:For the Three Months EndedFor the Six Months EndedJune 28, 2025June 29, 2024June 28, 2025June 29, 2024 (in millions, except per share data)Basic Earnings Per Common Share:Net income/(loss) attributable to common shareholders$(7,824)$102 $(7,112)$903 Weighted average shares of common stock outstanding1,185 1,212 1,190 1,213 Net earnings/(loss)$(6.60)$0.08 $(5.98)$0.74 Diluted Earnings Per Common Share:Net income/(loss) attributable to common shareholders$(7,824)$102 $(7,112)$903 Weighted average shares of common stock outstanding1,185 1,212 1,190 1,213 Effect of dilutive equity awards— 4 — 6 Weighted average shares of common stock outstanding, including dilutive effect1,185 1,216 1,190 1,219 Net earnings/(loss)$(6.60)$0.08 $(5.98)$0.74 We use the treasury stock method to calculate the dilutive effect of outstanding equity awards in the denominator for diluted EPS. Anti-dilutive shares