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The company also said it will not be able to
timely file its quarterly report for the period ended March 30,
sending its shares down 2.24 percent before the bell.
Kraft Heinz also said it received an additional subpoena from
the U.S. Securities and Exchange Commission (SEC) on March 1,
related to the assessment of goodwill and intangible asset
impairments and a request for documents associated with the
procurement business.
The company had disclosed in February it had been subpoenaed by
the SEC related to an investigation into its accounting
policies, procedures and internal controls related to its
procurement. Following the first subpoena, the company, together
with its external counsel and forensic accountants, initiated an
investigation into the procurement practices.
Kraft Heinz had in February also announced a $15.4 billion
write-down of its iconic Kraft and Oscar Mayer brands. Monday's
filing revealed that the misstatements would increase the amount
by about $13 million.
The misstatements in its reports for the years 2016, 2017 and
each of the quarterly and year-to-date periods for the nine
months ended Sept. 29, 2018 mainly relates to incorrect timing
of when certain costs and rebates were initially recognized, the
company said.
The investigation and review required adjustments of about $208
million.
The misstatement was not "quantitatively material" to its
financial statements, the company said.
(Reporting by Aishwarya Venugopal in Bengaluru; Editing by
Shailesh Kuber and Sriraj Kalluvila)
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