Company: KHC
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001637459-25-000152
Chunk: 100

Company: Kraft Heinz Co
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 8
Chunk 100
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 available administrative and judicial remedies. Therefore, we have not recorded any reserves related to this issue. 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. We believe our income tax reserves are appropriate for all open tax years and that final adjudication of this matter will not have a material impact on our results of operations and cash flows. However, the ultimate outcome of this matter is uncertain, and if we are required to pay the IRS additional U.S. taxes, interest, and/or potential penalties, our results of operations and cash flows could be materially affected.

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was signed into law in the United States. The OBBBA includes changes to U.S. tax law that will be applicable to the Company beginning in 2025. These changes include provisions allowing accelerated tax deductions for qualified property and research and development expenditures. We are currently evaluating the law and its impact on our financial statements.

Note 9.  Employees’ Stock Incentive Plans

Stock Options:Our stock option activity and related information was:Number of Stock OptionsWeighted Average Exercise Price(per share)Outstanding at December 28, 20246,720,421 $46.44 Granted936,208 30.71 Forfeited(1,786,327)50.30 Outstanding at June 28, 20255,870,302 42.75 Restricted Stock Units:Our restricted stock unit (“RSU”) activity and related information was:Number of UnitsWeighted Average Grant Date Fair Value (per share)Outstanding at December 28, 20246,705,507 $37.31 Granted2,423,731 30.96 Forfeited(565,221)35.43 Vested(1,909,147)38.44 Outstanding at June 28, 20256,654,870 34.84 The aggregate fair value of RSUs that vested during the period was $58 million for the six months ended June 28, 2025.

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Performance Share Units:Our performance share unit (“PSU”) activity and related information was:Number of UnitsWeighted Average Grant Date Fair Value (per share)