Company: KHC
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001637459-25-000152
Chunk: 61

Company: Kraft Heinz Co
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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able segments — North America and International Developed Markets. Segment Adjusted Operating Income is a financial measure that can assist management and investors in comparing our performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our underlying operations. Management also uses Segment Adjusted Operating Income to allocate resources.

Under highly inflationary accounting, the financial statements of a subsidiary are remeasured into our reporting currency (U.S. dollars) based on the legally available exchange rate at which we expect to settle the underlying transactions. Exchange gains and losses from the remeasurement of monetary assets and liabilities are reflected in other expense/(income) on our condensed consolidated statements of income, as nonmonetary currency devaluation, rather than accumulated other comprehensive income/(losses) on our condensed consolidated balance sheets, until such time as the economy is no longer considered highly inflationary. See Note 2, Significant Accounting Policies, to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 28, 2024, for additional information. We apply highly inflationary accounting to the results of our subsidiaries in Venezuela, Turkey, and Egypt, which are all in Emerging Markets.

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Net Sales:

For the Three Months EndedFor the Six Months EndedJune 28, 2025June 29, 2024June 28, 2025June 29, 2024(in millions)Net sales:North America$4,757 $4,921 $9,245 $9,749 International Developed Markets897 885 1,714 1,740 Emerging Markets698 670 1,392 1,398 Total net sales$6,352 $6,476 $12,351 $12,887 

Organic Net Sales:

For the Three Months EndedFor the Six Months EndedJune 28, 2025June 29, 2024June 28, 2025June 29, 2024(in millions)Organic Net Sales(a):North America$4,761 $4,921 $9,276 $9,749 International Developed Markets866 885 1,706 1,740 Emerging Markets701 652 1,429 1,352 Total Organic Net Sales$6,328 $6,458 $12,411 $12,841 

(a)    Organic Net Sales is a non-GAAP financial measure. See