v3.26.1
Segment Reporting (Notes)
 6 Months Ended
Jun. 27, 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.
During the second quarter of 2026, certain organizational changes were announced that are expected to impact our future internal reporting and reportable segments. We plan to combine our WEEM and AEM operating segments to form the Emerging Markets operating segment in order to increase efficiencies and drive sustainable growth across our global business. In conjunction with the creation of the Emerging Markets operating segment, we plan to move remaining European countries within the WEEM operating segment into the EPDM operating segment.
As a result of these changes, we expect to have three reportable segments: North America, Europe and Pacific Developed Markets, and Emerging Markets. We expect that the change to our reportable segments will be effective in the third quarter of 2026.
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 EndedFor the Six Months Ended
June 27, 2026June 28, 2025June 27, 2026June 28, 2025
Net sales:
North America$4,626 $4,757 $9,084 $9,245 
International Developed Markets865 897 1,708 1,714 
Total segment net sales5,491 5,654 10,792 10,959 
Emerging Markets
771 698 1,517 1,392 
Total net sales$6,262 $6,352 $12,309 $12,351 
Segment Adjusted Operating Income was (in millions):
For the Three Months Ended
June 27, 2026June 28, 2025
North AmericaInternational Developed MarketsTotalNorth AmericaInternational Developed MarketsTotal
Net Sales$4,626 $865 $4,757 $897 
Adjusted Cost of Products Sold(a)
2,982 603 3,060 633 
Other segment items(b)
656 138 524 128 
Segment Adjusted Operating Income$988 $124 $1,112 $1,173 $136 $1,309 
Emerging Markets
107 100 
General corporate expenses(178)(133)
Restructuring activities(9)— 
Unrealized gains/(losses) on commodity hedges(101)16 
Impairment losses(7,352)(9,266)
Separation costs
(10)— 
Operating income/(loss)(6,431)(7,974)
Interest expense/(income)(31)240 
Other expense/(income)(24)(47)
Income/(loss) before income taxes$(6,376)$(8,167)
(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.

For the Six Months Ended
June 27, 2026June 28, 2025
North AmericaInternational Developed MarketsTotalNorth AmericaInternational Developed MarketsTotal
Net Sales$9,084 $1,708 $9,245 $1,714 
Adjusted Cost of Products Sold(a)
5,867 1,178 $5,931 $1,201 
Other segment items(b)
1,255 273 $1,040 $250 
Segment Adjusted Operating Income$1,962 $257 $2,219 $2,274 $263 $2,537 
Emerging Markets
202 199 
General corporate expenses(322)(261)
Restructuring activities(31)(4)
Unrealized gains/(losses) on commodity hedges77 17 
Impairment losses(7,365)(9,266)
Separation costs
(66)— 
Operating income/(loss)(5,286)(6,778)
Interest expense/(income)205 469 
Other expense/(income)(125)(98)
Income/(loss) before income taxes$(5,366)$(7,149)
(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 EndedFor the Six Months Ended
June 27, 2026June 28, 2025June 27, 2026June 28, 2025
Depreciation and amortization expense:
North America$166 $161 $328 $316 
International Developed Markets44 38 81 74 
Total segment depreciation and amortization expense210 199 409 390 
Emerging Markets32 28 62 56 
General corporate expenses19 14 35 26 
Total depreciation and amortization expense$261 $241 $506 $472 
Total capital expenditures by segment were (in millions):
For the Three Months EndedFor the Six Months Ended
June 27, 2026June 28, 2025June 27, 2026June 28, 2025
Capital expenditures:
North America$138 $126 $278 $265 
International Developed Markets13 17 55 62 
Total segment capital expenditures151 143 333 327 
Emerging Markets23 25 48 51 
General corporate expenses15 19 48 47 
Total capital expenditures$189 $187 $429 $425 
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 EndedFor the Six Months Ended
June 27, 2026June 28, 2025June 27, 2026June 28, 2025
Condiments, Sauces, and Spreads$2,897 $2,873 $5,599 $5,480 
Ambient Meals and Sides679 679 1,426 1,421 
Refreshment Beverages584 575 1,086 1,077 
Meats481 546 940 1,033 
Frozen Meals and Sides363 378 765 797 
Cheese396 420 786 816 
Refrigerated Snacks298 302 581 591 
Desserts281 280 525 506 
Coffee225 207 457 429 
Other58 92 144 201 
Total net sales$6,262 $6,352 $12,309 $12,351