Company: KHC
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001637459-25-000152
Chunk: 19

Company: Kraft Heinz Co
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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2 Other costs - SG&A1 1 1 3 Other costs - Other expense/(income)10 — 10 — $10 $2 $14 $(1)We do not include our restructuring activities within Segment Adjusted Operating Income (as defined in Note 16, Segment Reporting). The pre-tax impact of allocating such expenses/(income) to our segments would have been (in millions):For the Three Months EndedFor the Six Months Ended June 28, 2025June 29, 2024June 28, 2025June 29, 2024North America$11 $1 $15 $(1)International Developed Markets— (1)(3)(2)Emerging Markets(a)(1)— (1)— General corporate expenses— 2 3 2 $10 $2 $14 $(1)

(a)    Emerging Markets represents the aggregation of our WEEM and AEM operating segments.

8

Note 6.  Inventories

Inventories consisted of the following (in millions):June 28, 2025December 28, 2024Packaging and ingredients$846 $950 Spare parts261 245 Work in process263 310 Finished products2,197 1,871 Inventories$3,567 $3,376 

Note 7.  Goodwill and Intangible Assets

Goodwill:Changes in the carrying amount of goodwill, by segment, were (in millions):North AmericaInternational Developed MarketsEmerging MarketsTotalBalance at December 28, 2024$26,232 $2,134 $307 $28,673 Impairment losses(5,875)(819)— (6,694)Translation adjustments and other35 207 5 247 Balance at June 28, 2025$20,392 $1,522 $312 $22,226 Q2 2025 Goodwill Impairment TestingDuring the second quarter of 2025, we concluded that the sustained decline in our share price and market capitalization was a triggering event requiring an interim goodwill impairment assessment for all reporting units. We performed an interim impairment test (“Q2 Impairment Test”) as of the last day of our second quarter, June 28, 2025, and utilized the discounted cash flow method under the income approach to estimate the fair value of