Balance Sheet: Assets

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

Kraft Heinz Co., consolidated balance sheet: assets

US$ in millions

	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 31, 2015
Cash and cash equivalents	2,279)	1,130)	1,629)	4,204)	4,837)
Trade receivables, net of allowances	1,973)	2,129)	921)	769)	871)
Sold receivables	—)	—)	353)	129)	583)
Income taxes receivable	173)	152)	582)	260)	—)
Inventories	2,721)	2,667)	2,815)	2,684)	2,618)
Prepaid expenses	384)	400)	345)	—)	—)
Other current assets	445)	1,221)	621)	707)	871)
Assets held for sale	122)	1,376)	—)	—)	—)
Current assets	8,097)	9,075)	7,266)	8,753)	9,780)
Property, plant and equipment, net	7,055)	7,078)	7,120)	6,688)	6,524)
Goodwill	35,546)	36,503)	44,824)	44,125)	43,051)
Intangible assets, net	48,652)	49,468)	59,449)	59,297)	62,120)
Other non-current assets	2,100)	1,337)	1,573)	1,617)	1,498)
Non-current assets	93,353)	94,386)	112,966)	111,727)	113,193)
Total assets	101,450)	103,461)	120,232)	120,480)	122,973)

Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Total assets experienced a sustained contraction between 2015 and 2019, decreasing from US$ 122,973 million to US$ 101,450 million. This overall decline is primarily attributed to significant reductions in non-current assets, specifically through the impairment of intangible assets and goodwill.

Intangible Asset and Goodwill Impairment: A substantial downward adjustment in asset valuation occurred between 2017 and 2018. Goodwill fell from US$ 44,824 million in 2017 to US$ 36,503 million in 2018, while net intangible assets decreased from US$ 59,449 million to US$ 49,468 million in the same interval. These reductions indicate significant non-cash impairment charges that heavily impacted the total balance sheet valuation.
Liquidity and Cash Management: Cash and cash equivalents showed a volatile downward trend for the majority of the analyzed period, dropping from US$ 4,837 million in 2015 to a minimum of US$ 1,130 million in 2018, before recovering to US$ 2,279 million in 2019. Current assets generally declined from US$ 9,780 million in 2015 to US$ 8,097 million in 2019, reflecting a tightening of short-term liquidity over the five-year window.
Working Capital Trends: Inventories remained remarkably stable, fluctuating within a narrow range between US$ 2,618 million and US$ 2,815 million. In contrast, trade receivables, net of allowances, exhibited a sharp increase in 2018, rising to US$ 2,129 million from US$ 921 million in 2017, suggesting a shift in credit terms or a slower collection cycle toward the end of the period.
Fixed Asset Stability: Property, plant, and equipment, net, demonstrated steady growth from 2015 to 2017, reaching US$ 7,120 million, before plateauing at approximately US$ 7,055 million by 2019. This indicates a period of investment followed by a phase of maintenance where depreciation largely offset new capital expenditures.

Kraft Heinz Co. (NASDAQ:KHC)

Balance Sheet: Assets

Assets: Selected Items

Current Assets: Selected Items