Company: KHC
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001637459-25-000061
Chunk: 77

Company: Kraft Heinz Co
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 8
Chunk 77
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 the following (in millions):March 29, 2025December 28, 2024Packaging and ingredients$904 $950 Spare parts251 245 Work in process308 310 Finished products2,128 1,871 Inventories$3,591 $3,376 

8

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 Translation adjustments and other4 74 2 80 Balance at March 29, 2025$26,236 $2,208 $309 $28,753 2025 Year-to-Date Goodwill Impairment TestingIn the first quarter of 2025, certain organizational changes occurred that impacted our reporting unit composition within our International Developed Markets segment (the “Q1 Europe reorganization”). Two of our International Developed Market reporting units — Northern Europe (“NE”) and Continental Europe (“CE”) — were combined into one reporting unit, Western Europe (“WE”). None of our other reporting units were impacted by this reorganization.As a result of this reorganization, the existing assets and liabilities of the impacted reporting units were combined and we performed an interim impairment test (or transition test) on the affected reporting units on both a pre- and post-reorganization basis. We performed our pre-reorganization and post-reorganization tests as of December 29, 2024, which was our first day of 2025.As part of our pre-reorganization impairment test of the NE and CE reporting units, and post-reorganization test of the WE reporting unit, we utilized the discounted cash flow method under the income approach to estimate the fair values as of December 29, 2024. As a result of these tests, we concluded that the fair value of these reporting units exceeded their carrying amounts and no impairment was recorded. The goodwill carrying amount of the WE reporting unit is $2.2 billion as of the transition test date.As of March 29, 2025, we maintain 11 reporting units, seven of which comprise our goodwill balance. These seven reporting units had an aggregate goodwill carrying amount of $28.8 billion at March 29, 2025.Accumulated impairment losses to goodwill were $13.5 billion as of March