Company: KHC
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001637459-25-000061
Chunk: 76

Company: Kraft Heinz Co
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 8
Chunk 76
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 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 three months ended March 29, 2025, we eliminated approximately 370 positions related to these programs. As of March 29, 2025, we expect to eliminate approximately 370 additional positions during the remainder of 2025. For the three months ended March 29, 2025, restructuring activities resulted in net expenses of $4 million from severance and employee benefit costs. Restructuring activities resulted in income of $3 million for the three months ended March 30, 2024.

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Our net liability balance for restructuring project costs that qualify as exit and disposal costs under U.S. GAAP was (in millions):Severance and Employee Benefit CostsOther Exit CostsTotalBalance at December 28, 2024$29 $11 $40 Charges/(credits)4 — 4 Cash payments(7)(1)(8)Balance at March 29, 2025$26 $10 $36 We expect the majority of the liability for severance and employee benefit costs as of March 29, 2025 to be paid by the second quarter of 2025. The liability for other exit costs primarily relates to lease obligations. The cash impact of these obligations will continue for the duration of the lease terms, which expire between 2026 and 2031.Total Expenses/(Income):Total expense/(income) related to restructuring activities, by income statement caption, were (in millions):For the Three Months EndedMarch 29, 2025March 30, 2024Severance and employee benefit costs - Cost of products sold$(2)$— Severance and employee benefit costs - SG&A6 (6)Other costs - Cost of products sold— 1 Other costs - SG&A— 2 $4 $(3)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 Ended March 29, 2025March 30, 2024North America$4 $(2)International Developed Markets(3)(1)General corporate expenses3 — $4 $(3)

Note 6.  Inventories

Inventories consisted of