KHC · 10-Q · 2026Q2 · Full report

Operating Expense Trends

Kraft Heinz Co · 2026-08-05 · Importance 20 · Surprise 24

Higher advertising expense reduced second-quarter and six-month 2026 adjusted operating income, with the increase affecting North America, International Developed Markets, and Emerging Markets. North America also incurred increased research and development expenditures during the six months ended June 27, 2026. Separation costs of $10 million in the second quarter and $66 million for six months were recorded in SG&A, primarily for consulting, advisory, employee-related, and technology costs. Higher variable compensation and related tax expense further increased operating costs in each reported segment.

Key facts

• Depreciation and amortization and goodwill and intangible asset impairment losses were adjustments reconciling net loss to operating cash flows, with goodwill and intangible asset impairment losses amounting to $7,365 million for the six months ended June 27, 2026. source
• General corporate expenses were $(178) million for the three months ended June 27, 2026 and $(322) million for the six months ended June 27, 2026. source