v3.26.1
Segment Reporting (Notes)
 3 Months Ended
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, 2026March 29, 2025
Net sales:
North America$4,458 $4,488 
International Developed Markets843 817 
Total segment net sales5,301 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, 2026March 29, 2025
North AmericaInternational Developed MarketsTotalNorth AmericaInternational Developed MarketsTotal
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 hedges178 1 
Impairment losses(13)— 
Separation costs
(56)— 
Operating income/(loss)1,145 1,196 
Interest expense236 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, 2026March 29, 2025
Depreciation and amortization expense:
North America$162 $155 
International Developed Markets37 36 
Total segment depreciation and amortization expense199 191 
Emerging Markets30 28 
General corporate expenses16 12 
Total depreciation and amortization expense$245 $231 
Total capital expenditures by segment were (in millions):
For the Three Months Ended
March 28, 2026March 29, 2025
Capital expenditures:
North America$140 $139 
International Developed Markets42 45 
Total segment capital expenditures182 184 
Emerging Markets25 26 
General corporate expenses33 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, 2026March 29, 2025
Condiments, Sauces, and Spreads$2,702 $2,607 
Ambient Meals and Sides747 742 
Refreshment Beverages502 502 
Meats459 487 
Frozen Meals and Sides402 419 
Cheese390 396 
Refrigerated Snacks283 289 
Desserts244 226 
Coffee232 222 
Other86 109 
Total net sales$6,047 $5,999