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Segment Reporting (Notes) | 3 Months Ended
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Mar. 28, 2026
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting We manage our operating results through four operating segments: North America, Europe and Pacific Developed Markets (“EPDM” or “International Developed Markets”), West and East Emerging Markets (“WEEM”), and Asia Emerging Markets (“AEM”). We have two reportable segments defined by geographic region: North America and International Developed Markets. Our remaining operating segments, consisting of WEEM and AEM, are combined and disclosed as Emerging Markets. Our chief operating decision maker (“CODM”) is our Chief Executive Officer. Our CODM evaluates segment performance based on several factors, including net sales and Segment Adjusted Operating Income. Segment Adjusted Operating Income is defined as operating income/(loss) excluding, when they occur, the impacts of restructuring activities, deal costs, separation costs, unrealized gains/(losses) on commodity hedges (the unrealized gains and losses are recorded in general corporate expenses until realized; once realized, the gains and losses are recorded in the applicable segment’s operating results), impairment losses, and certain non-ordinary course legal and regulatory matters. Segment Adjusted Operating Income is a financial measure that assists our CODM in comparing our performance on a consistent basis by removing the impact of certain items that our CODM believes do not directly reflect our underlying operations. Our CODM also considers monthly budget-to-actual variances and year-over-year performance of Segment Adjusted Operating Income when making decisions about allocating resources to our segments. Our CODM does not use assets by segment to evaluate performance or allocate resources. Therefore, we do not disclose assets by segment. Emerging Markets represents the aggregation of our WEEM and AEM operating segments. Segment Adjusted Operating Income for WEEM and AEM is the measure reported to our chief operating decision maker for purposes of making decisions about allocating resources to these operating segments and assessing their performance. Net sales by segment were (in millions):
| For the Three Months Ended |  |
| March 28, 2026 |  | March 29, 2025 |  |  |  |
Net sales: |  |  |  |  |  |  |
North America | $ | 4,458 |  |  | $ | 4,488 |  |  |  |  |
International Developed Markets | 843 |  |  | 817 |  |  |  |  |
Total segment net sales | 5,301 |  |  | 5,305 |  |  |  |  |
Emerging Markets | 746 |  |  | 694 |  |  |  |  |
Total net sales | $ | 6,047 |  |  | $ | 5,999 |  |  |  |  |
Segment Adjusted Operating Income was (in millions):
| For the Three Months Ended
| March 28, 2026 |  | March 29, 2025
| North America |  | International Developed Markets |  | Total |  | North America |  | International Developed Markets |  | Total
Net Sales | $ | 4,458 |  |  | $ | 843 |  |  |  |  | $ | 4,488 |  |  | $ | 817 |  |  |
Adjusted Cost of Products Sold(a) | 2,885 |  |  | 575 |  |  |  |  | 2,871 |  |  | 568 |  |  |
Other segment items(b) | 599 |  |  | 135 |  |  |  |  | 516 |  |  | 122 |  |  |
Segment Adjusted Operating Income | $ | 974 |  |  | $ | 133 |  |  | $ | 1,107 |  |  | $ | 1,101 |  |  | $ | 127 |  |  | $ | 1,228 |
Emerging Markets |  |  |  |  | 95 |  |  |  |  |  |  | 99 |
General corporate expenses |  |  |  |  | (144) |  |  |  |  |  |  | (128) |
Restructuring activities |  |  |  |  | (22) |  |  |  |  |  |  | (4) |
Unrealized gains/(losses) on commodity hedges |  |  |  |  | 178 |  |  |  |  |  |  | 1 |
Impairment losses |  |  |  |  | (13) |  |  |  |  |  |  | — |
Separation costs |  |  |  |  | (56) |  |  |  |  |  |  | — |
Operating income/(loss) |  |  |  |  | 1,145 |  |  |  |  |  |  | 1,196 |
Interest expense |  |  |  |  | 236 |  |  |  |  |  |  | 229 |
Other expense/(income) |  |  |  |  | (101) |  |  |  |  |  |  | (51) |
Income/(loss) before income taxes |  |  |  |  | $ | 1,010 |  |  |  |  |  |  | $ | 1,018 |
(a) Adjusted Cost of Products Sold is defined as cost of products sold excluding, when they occur, the impacts of restructuring activities, deal costs, unrealized gains/(losses) on commodity hedges (the unrealized gains and losses are recorded in general corporate expenses until realized; once realized, the gains and losses are recorded in the applicable segment’s operating results), impairment losses, separation costs, and certain non-ordinary course legal and regulatory matters. (b) Other segment items for North America and International Developed Markets includes SG&A, primarily for marketing and advertising expenses, employee compensation-related expenses, amortization of definite-lived intangible assets, and research and development costs. Total depreciation and amortization expense by segment was (in millions):
| For the Three Months Ended |  |
| March 28, 2026 |  | March 29, 2025 |  |  |  |
Depreciation and amortization expense: |  |  |  |  |  |  |
North America | $ | 162 |  |  | $ | 155 |  |  |  |  |
International Developed Markets | 37 |  |  | 36 |  |  |  |  |
Total segment depreciation and amortization expense | 199 |  |  | 191 |  |  |  |  |
Emerging Markets | 30 |  |  | 28 |  |  |  |  |
General corporate expenses | 16 |  |  | 12 |  |  |  |  |
Total depreciation and amortization expense | $ | 245 |  |  | $ | 231 |  |  |  |  |
Total capital expenditures by segment were (in millions):
| For the Three Months Ended |  |
| March 28, 2026 |  | March 29, 2025 |  |  |  |
Capital expenditures: |  |  |  |  |  |  |
North America | $ | 140 |  |  | $ | 139 |  |  |  |  |
International Developed Markets | 42 |  |  | 45 |  |  |  |  |
Total segment capital expenditures | 182 |  |  | 184 |  |  |  |  |
Emerging Markets | 25 |  |  | 26 |  |  |  |  |
General corporate expenses | 33 |  |  | 28 |  |  |  |  |
Total capital expenditures | $ | 240 |  |  | $ | 238 |  |  |  |  |
In the first quarter of 2026, we modified our net sales disaggregation disclosure to present net sales by product category. This change has been reflected in all periods presented. We report net sales through ten product categories: Condiments, Sauces and Spreads, Ambient Meals and Sides, Refreshment Beverages, Meats, Frozen Meals and Sides, Cheese, Refrigerated Snacks, Desserts, Coffee, and Other. •Condiments, Sauces, and Spreads primarily includes Heinz ketchup and other condiments, Kraft mayonnaise and dressings, Philadelphia cream cheese, Classico pasta sauces, and Miracle Whip, among other condiments and sauces. •Ambient Meals and Sides primarily includes Kraft and Velveeta Mac & Cheese varieties, Heinz beans and soups, Stove Top stuffing mix. and other shelf stable products. •Refreshment Beverages primarily includes Capri-Sun and Kool-Aid ready-to-drink beverages, Crystal Light powdered beverages, and Mio liquid concentrates. •Meats primarily includes Oscar Mayer cold cuts, bacon, and hot dogs. •Frozen Meals and Sides primarily includes Ore-Ida frozen potato products, and other frozen snacks and meals. •Cheese primarily includes our Kraft and Velveeta cheese varieties. •Refrigerated Snacks primarily includes Lunchables meal kits, Claussen pickles, and other refrigerated varieties. •Desserts primarily includes Jell-O, Cool Whip and other dry packaged, refrigerated, and frozen desserts. •Coffee primarily includes Maxwell House coffee and other coffee products. •Other primarily includes our infant foods varieties and other regional products. Net sales by category were (in millions):
| For the Three Months Ended |  |
| March 28, 2026 |  | March 29, 2025 |  |  |  |
Condiments, Sauces, and Spreads | $ | 2,702 |  |  | $ | 2,607 |  |  |  |  |
Ambient Meals and Sides | 747 |  |  | 742 |  |  |  |  |
Refreshment Beverages | 502 |  |  | 502 |  |  |  |  |
Meats | 459 |  |  | 487 |  |  |  |  |
Frozen Meals and Sides | 402 |  |  | 419 |  |  |  |  |
Cheese | 390 |  |  | 396 |  |  |  |  |
Refrigerated Snacks | 283 |  |  | 289 |  |  |  |  |
Desserts | 244 |  |  | 226 |  |  |  |  |
Coffee | 232 |  |  | 222 |  |  |  |  |
Other | 86 |  |  | 109 |  |  |  |  |
Total net sales | $ | 6,047 |  |  | $ | 5,999 |  |  |  |  |

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