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

Company: Kraft Heinz Co
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 of future growth rates and margins are not met, if market factors outside of our control change; such as discount rates, market capitalization, income tax rates, foreign currency exchange rates, or inflation, or if management’s expectations or plans otherwise change, including updates to our long-term operating plans, then one or more of our brands might become impaired in the future. Additionally, any decisions to divest certain non-strategic assets could lead to future intangible asset impairments.Definite-lived intangible assets:Definite-lived intangible assets were (in millions): June 28, 2025December 28, 2024GrossAccumulatedAmortizationNetGrossAccumulatedAmortizationNetTrademarks$2,451 $(976)$1,475 $2,392 $(893)$1,499 Customer-related assets3,722 (1,642)2,080 3,665 (1,530)2,135 Other13 (4)9 13 (4)9 $6,186 $(2,622)$3,564 $6,070 $(2,427)$3,643 Amortization expense for definite-lived intangible assets was $62 million for the three months and $123 million for the six months ended June 28, 2025, and $65 million for the three months and $129 million for the six months ended June 29, 2024. Aside from amortization expense, the change in definite-lived intangible assets from December 28, 2024 to June 28, 2025 is primarily related to non-cash intangible asset impairment losses of $11 million related to two definite-lived intangible assets within our International Developed Markets segment and the impact of foreign currency.

We estimate that amortization expense related to definite-lived intangible assets will be approximately $240 million in 2025 and $240 million in each of the following five years.

Note 8.  Income Taxes

The provision for income taxes consists of provisions for federal, state, and non-U.S. income taxes. We operate in an international environment; accordingly, the consolidated effective tax rate is a composite rate reflecting the earnings in various locations and the applicable tax rates. Additionally, the calculation of the percentage point impact of goodwill impairment and other items on the effective tax rate is affected by income/(loss) before income taxes. Further, small movements in tax rates due to a change in tax law or a change