Company: KHC
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001637459-25-000166
Chunk: 26

Company: Kraft Heinz Co
Filing Date: 2025-10-29
Form: 10-Q
Item: Part I, Item 1
Chunk 26
---
, 2025, we announced our plan to separate the Company into two independent, publicly traded companies through a tax-free spin-off (the “Separation”). The two resulting companies, whose names will be determined at a later date, are referred to as: “Global Taste Elevation Co.”, which will focus on Taste Elevation and shelf-stable meals, and “North American Grocery Co.”, which will focus on certain North American staples. While we currently expect to complete the Separation in the second half of 2026, the transaction is subject to the satisfaction of customary conditions, including final approval by the Kraft Heinz Board of Directors, receipt of favorable tax opinions of our U.S. tax advisors with respect to the tax-free nature of the Separation, and the effectiveness of appropriate filings with the U.S. Securities and Exchange Commission. Therefore, we cannot assure that the Separation will be completed on the anticipated timeline or at all or that the terms of the Separation will not change. 

We incurred $17 million of separation costs for the three and nine months ended September 27, 2025 which were recognized in selling, general and administrative expenses (“SG&A”).

Note 3.  Significant Accounting Policies

There were no significant changes to our accounting policies from those disclosed in our Annual Report on Form 10-K for the year ended December 28, 2024.

Note 4.  New Accounting Standards

Accounting Standards Not Yet AdoptedIncome Taxes (Topic 740) – Improvements to Income Tax Disclosures:In December 2023, the FASB issued ASU 2023-09 to improve income tax disclosure requirements under ASC 740, Income Taxes. The guidance requires entities to provide separate information about a reporting entity’s effective tax rate reconciliation and about income taxes paid. This ASU will be effective for annual periods beginning after December 15, 2024. We currently expect to adopt ASU 2023-09 in our Annual Report on Form 10-K for the year ended December 27, 2025 on a prospective basis. While the standard will require additional disclosures related to the Company’s income taxes, we do not expect this ASU to have an impact on our financial statements.Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40):In November 2024, the FASB issued ASU 2024-03 to improve financial reporting under ASC 220, Income Statement-Reporting Comprehensive Income. The