Kraft Heinz reduced its reported net income by $150 million going back to 2015 in its recently filed restatement, correcting accounting treatment of certain supplier contracts and related arrangements.
The company also noted a weakness in internal control over financial reporting in the reporting of supplier contracts and related arrangements, along with the testing of goodwill and indefinite-lived intangible assets for impairment. The issues caused a spike in the company’s audit bill, from $9.4 million in 2017 to $19.2 million at the end of 2018.
