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Kraft Heinz discloses probe, takes $15.4B impairment charge

Tammy Whitehouse | February 25, 2019

Following a string of accounting and reporting problems, Kraft Heinz Co. disclosed it is under investigation by the Securities and Exchange Commission and reported a seemingly unrelated $15.4 billion impairment charge.

With its fourth-quarter and full-year 2018 financial results, Kraft Heinz said it received a subpoena from the SEC in October 2018 related to an investigation into the company’s procurement practices. The probe is focused on the company’s accounting policies, procedures, and internal controls related to procurement, including an examination of side agreements and changes to its agreements with vendors.

While cooperating with the SEC investigation, the company said it also launched its own internal review and determined it should record a $25 million increase to the cost of products sold as an out-of-period correction. According to an analysis by Audit...

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