Company: KHC
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001637459-25-000166
Chunk: 28

Company: Kraft Heinz Co
Filing Date: 2025-10-29
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 and that the goodwill within the Italy Infant Disposal Group was fully impaired. Accordingly, we recorded a non-cash goodwill impairment loss of $35 million, which was recognized in SG&A, for the three and nine months ended September 27, 2025. Further, we recorded an estimated pre-tax loss on sale of business of $44 million for the three and nine months ended September 27, 2025, which was recognized in other expense/(income) on our condensed consolidated statement of income. Russia Infant Transaction:On March 11, 2024, we closed and finalized the sale of our infant nutrition business in Russia to a third party for total cash consideration of approximately $25 million (the “Russia Infant Transaction”). As a result of the Russia Infant Transaction, we recognized an insignificant pre-tax gain in other expense/(income) on our condensed consolidated statement of income in the first quarter of 2024.Papua New Guinea Transaction:On February 5, 2024, we closed and finalized the sale of 100% of the equity interests in our Papua New Guinea subsidiary, Hugo Canning Company Limited, to a third party for total cash consideration of approximately $22 million (the “Papua New Guinea Transaction”). As a result of the Papua New Guinea Transaction, we recognized a pre-tax loss on sale of business of approximately $80 million in other expense/(income) on our condensed consolidated statement of income in the first quarter of 2024, of which approximately $41 million relates to the release of accumulated foreign currency losses.Deal Costs:We incurred insignificant deal costs for the three and nine months ended September 27, 2025 and insignificant deal costs for the three and nine months ended September 28, 2024 related to our divestitures. We recognized these deal costs in SG&A.

Note 6.  Restructuring Activities

See our consolidated financial statements and related notes in our Annual Report on Form 10-K for the year ended December 28, 2024 for additional information on our restructuring activities.Restructuring Activities:We have restructuring programs globally, which are focused primarily on streamlining our organizational design. For the nine months ended September 27, 2025, we eliminated approximately 580 positions related to these programs. As of September 27, 2025, we expect to eliminate approximately 180 additional positions related to these programs, primarily during the remainder of 2025. For the three months ended September 27, 2025