Company: KHC
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001637459-25-000011
Chunk: 6

Company: Kraft Heinz Co
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 6
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 skill and knowledge. 

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s assessment of the valuation of the non-US deferred tax asset related to the change in entity structure, including controls over the valuation of the business transferred. These procedures also included, among others (i) evaluating the positive and negative evidence available to assess management’s assessment of the realizability of the deferred tax asset related to the change in entity structure; (ii) testing management’s process for developing the fair value estimate of the business, (iii) evaluating the appropriateness of the discounted cash flow method; (iv) testing the completeness and accuracy of underlying data used in the method; and (v) evaluating the reasonableness of the significant assumptions used by management related to net sales, discount rate, long term growth rate, and income tax rates. Evaluating management’s significant assumptions related to net sales, discount rate, and long-term growth rate involved evaluating whether the assumptions used by management were reasonable considering (i) the current and past performance of the transferred business; (ii) the consistency with external market and industry data; and (iii) whether these assumptions were consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in evaluating (i) the appropriateness of the Company’s 

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discounted cash flow method; (ii) the reasonableness of the discount rate, income tax rates, and long-term growth rate assumptions; and (iii) the recognition of future tax benefits associated with this transaction.

/s/ PricewaterhouseCoopers LLP

Chicago, Illinois

February 13, 2025 

We have served as the Company’s or its predecessors' auditor since 1979.

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The Kraft Heinz Company

Consolidated Statements of Income

(in millions, except per share data)

December 28, 2024December 30, 2023December 31, 2022Net sales$25,846 $26,640 $26,485 Cost of products sold16,878 17,714 18,363 Gross profit8,968 8,926 8,122 Selling, general and administrative expenses, excluding impairment losses3,616 3,692 3,575 Goodwill impairment losses1,638 510 444 Intangible asset impairment losses2,031 152