KHC · 10-Q · 2026Q2 · Full report

Debt Extinguishment Gain

Kraft Heinz Co · 2026-08-05 · Importance 36 · Surprise 42 · Matches filing data

Kraft Heinz recorded a $228 million pre-tax gain in the six months ended June 27, 2026 from debt prepayment and extinguishment activities. The gain included a $265 million gain from extinguishment of debt, partially offset by a $37 million loss on an interest-rate hedge. The item was recorded in interest expense/(income) and increased adjusted EPS by $0.14 for the six-month period.

Key facts

• Interest expense/(income) was $31 million of income for the three months ended June 27, 2026 compared to $240 million of expense for the three months ended June 28, 2025, primarily driven by a $265 million gain on extinguishment of debt in connection with the Tender Offer. source
• Interest expense/(income) was $205 million of expense for the six months ended June 27, 2026 compared to $469 million of expense for the six months ended June 28, 2025, primarily driven by a $265 million gain on extinguishment of debt in connection with the Tender Offer. source
• Gross expenses/(income) included in debt prepayment and extinguishment costs were income of $228 million ($171 million after-tax) for the three and six months ended June 27, 2026 and were recorded in interest expense/(income). source
• The income from debt prepayment and extinguishment includes a gain from extinguishment of debt of $265 million which was partially offset by a loss from an interest rate hedge of $37 million. source
• We recognized a gain on extinguishment of debt within interest expense for the three and six months ended June 27, 2026 (amount shown as $ million placeholder in note) source

Impact estimates