Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Kraft Heinz Co., consolidated statement of comprehensive income

US$ in millions

12 months ended:	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 31, 2015
Net income (loss)	1,933)	(10,254)	10,990)	3,642)	647)
Foreign currency translation adjustments	246)	(1,187)	1,184)	(986)	(1,604)
Net deferred gains (losses) on net investment hedges	1)	284)	(353)	226)	506)
Amounts excluded from the effectiveness assessment of net investment hedges	22)	7)	—)	—)	—)
Net deferred (gains) losses on net investment hedges reclassified to net income (loss)	(16)	(7)	—)	—)	—)
Net deferred gains (losses) on cash flow hedges	(10)	99)	(113)	46)	(6)
Amounts excluded from the effectiveness assessment of cash flow hedges	29)	2)	—)	—)	—)
Net deferred (gains) losses on cash flow hedges reclassified to net income (loss)	(41)	(44)	85)	(87)	120)
Net actuarial gains (losses) arising during the period	(70)	58)	69)	(40)	23)
Prior service (costs) credits arising during the period	1)	3)	17)	97)	923)
Net postemployment benefit (gains) losses reclassified to net income (loss)	(234)	(118)	(309)	(207)	(85)
Other comprehensive income (loss), net of tax	(72)	(903)	580)	(951)	(123)
Comprehensive income (loss)	1,861)	(11,157)	11,570)	2,691)	524)
Comprehensive (income) loss attributable to noncontrolling interest	(5)	76)	3)	(16)	13)
Comprehensive income (loss) attributable to Kraft Heinz	1,856)	(11,081)	11,573)	2,675)	537)

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).

The financial performance between 2015 and 2019 is characterized by extreme volatility in both net income and comprehensive income. After a period of substantial growth that peaked in 2017, a severe contraction occurred in 2018, followed by a partial recovery in 2019.

Net and Comprehensive Income Volatility: Net income exhibited a sharp upward trajectory from 647 million USD in 2015 to a peak of 10,990 million USD in 2017. This growth was abruptly reversed in 2018, resulting in a net loss of 10,254 million USD. Profitability returned in 2019 with a net income of 1,933 million USD. Comprehensive income attributable to the company mirrored these fluctuations, reaching a high of 11,573 million USD in 2017 and a low of negative 11,081 million USD in 2018.
Foreign Currency and Hedge Impacts: Foreign currency translation adjustments showed significant instability throughout the period. Values fluctuated from a loss of 1,604 million USD in 2015 to a gain of 1,184 million USD in 2017, before returning to a loss of 1,187 million USD in 2018. Net deferred gains and losses on net investment and cash flow hedges remained relatively immaterial compared to the primary income figures, though they contributed to the overall variability of other comprehensive income.
Postemployment Benefit Trends: A marked decline is observed in prior service credits, which dropped from 923 million USD in 2015 to just 1 million USD by 2019. Additionally, the company consistently reclassified net postemployment benefit gains to net income as losses each year, with the most significant reclassification of 309 million USD occurring in 2017.
Other Comprehensive Income (OCI) Analysis: Other comprehensive income, net of tax, remained inconsistent, recording losses in 2015, 2016, 2018, and 2019. The only positive contribution to OCI occurred in 2017, amounting to 580 million USD. This inconsistency highlights the impact of non-operational items, particularly currency translations and pension adjustments, on the total comprehensive income.

AI Ask an analyst for more

Download chart

Kraft Heinz Co. (NASDAQ:KHC)

Statement of Comprehensive Income