• Fourth-Quarter Net Sales and Organic Sales Decreased 1 Percent
• Fourth-Quarter Earnings Per Share (EPS) of $1.04; Adjusted EPS
  Increased 13 Percent to $0.52
• Full-Year Net Sales and Organic Sales Decreased 1 Percent
• Full-Year EPS of $2.89; Adjusted EPS Increased 3 Percent to $3.04
• Campbell Provides Fiscal 2018 Guidance

CAMDEN, N.J.–(BUSINESS WIRE)–Aug. 31, 2017–
Campbell Soup Company (NYSE:CPB) today reported its
fourth-quarter and full-year results for fiscal 2017.

		Three Months Ended							Twelve Months Ended
($ in millions, except per share)		July 30, 2017		July 31, 2016		% Change			July 30, 2017		July 31, 2016		% Change
Net Sales
As Reported (GAAP)		$1,664		$1,687		(1)%			$7,890		$7,961		(1)%
Organic						(1)%							(1)%
Earnings (Loss) Before Interest and Taxes
As Reported (GAAP)		$440		$(37)		n/m			$1,400		$960		46%
Adjusted		$282		$253		11%			$1,492		$1,467		2%
Diluted Earnings (Loss) Per Share
As Reported (GAAP)		$1.04		$(0.26)		n/m			$2.89		$1.81		60%
Adjusted		$0.52		$0.46		13%			$3.04		$2.94		3%

n/m – not meaningful

Note: A detailed reconciliation of the reported (GAAP) financial
information to the adjusted financial information is included at the end
of this news release.

CEO Comments

Denise Morrison, Campbell’s President and Chief Executive Officer, said,
“The operating environment for the packaged foods industry remains
challenging due to shifting demographics, changing consumer preferences
for food, the adoption of new shopping behaviors and the dynamic
retailer landscape. In these times, sales growth remains a challenge.
Despite multiple headwinds, we finished the year within our guidance and
delivered another year of growth in adjusted EBIT and adjusted EPS.

“In the fourth quarter, Global Biscuits and Snacks was soft on the top
line but generated a solid double-digit earnings increase versus the
year-ago quarter. Americas Simple Meals and Beverages continued to
deliver against its portfolio role, with sales performance in line with
the categories in which we compete and margin expansion. While Campbell
Fresh sales increased slightly and the bottom line was disappointing, we
expect to return to profitable growth going forward.

“In fiscal 2017, we have made progress in several key areas, including
increasing our successful multi-year cost savings initiative to $450
million by the end of fiscal 2020. The pending acquisition of Pacific
Foods will add a purpose-driven, real food brand with a solid track
record of growth to our portfolio. Additionally, our new Campbell Fresh
leadership team has taken steps to enhance our quality processes and
address capacity constraints toward our objective of returning the
division to growth.”

Morrison concluded, “Looking ahead to fiscal 2018, we expect the
operating environment to remain difficult. We will continue to position
Campbell for long-term growth by managing costs aggressively and
re-investing a portion of those savings back in the business with a
focus on our strategic imperatives of real food, digital and e-commerce,
health and well-being, and snacking.”

Fiscal 2018 Guidance

Campbell expects sales to change by -2 to 0 percent, adjusted earnings
before interest and taxes (EBIT) to change by -1 to 1 percent, and
adjusted EPS to change by 0 to 2 percent, or $3.04 to $3.11 per share.
This guidance assumes the impact from currency translation will be
nominal. A non-GAAP reconciliation is not provided for 2018 guidance
since certain items are not estimable, such as pension and
postretirement mark-to-market adjustments, and these items are not
considered to be part of the company’s ongoing business results.

Items Impacting Comparability in the Quarter

Items impacting comparability in the quarter are as follows:

• The current quarter included pre-tax pension and postretirement
  mark-to-market gains of $198 million, or $0.42 per share, as compared
  to pre-tax pension and postretirement mark-to-market losses of $138
  million, or $0.29 per share, in the prior-year quarter.
• The current quarter included pre-tax charges related to cost savings
  initiatives of $40 million, or $0.09 per share, as compared to $11
  million, or $0.02 per share, in the prior-year quarter.
• The current-quarter earnings included a tax benefit of $52 million
  primarily related to the sale of intercompany notes receivable to a
  financial institution, which resulted in the recognition of foreign
  exchange losses on the notes for tax purposes. In addition, the
  company recorded a $6 million reduction to interest expense ($4
  million after tax) related to premiums and fees received on the sale
  of the notes. The aggregate impact was an after-tax gain of $56
  million, or $0.18 per share.
• The prior-year quarter included a pre-tax non-cash impairment charge
  of $141 million, or $0.41 per share, to reduce the carrying value of
  the intangible assets of the Bolthouse Farms carrot and carrot
  ingredients reporting unit.

A detailed reconciliation of the reported (GAAP) financial information
to the adjusted information is included at the end of this news release.

Fourth-Quarter Results

Sales decreased 1 percent to $1.664 billion driven by a 1 percent
decline in organic sales, reflecting lower volume.

Gross margin increased from 32.4 percent to 43.0 percent. Excluding
items impacting comparability, adjusted gross margin increased 0.8
percentage points from 36.1 percent to 36.9 percent. The increase in
adjusted gross margin was primarily driven by productivity improvements
and the benefits from cost savings initiatives, partly offset by cost
inflation and higher supply chain costs.

Marketing and selling expenses decreased 34 percent to $143 million.
Excluding items impacting comparability, adjusted marketing and selling
expenses decreased 12 percent primarily due to lower advertising and
consumer promotion expenses lapping marketing levels above historical
levels in the prior-year quarter and the benefits from cost savings
initiatives. Administrative expenses decreased 54 percent to $86
million. Excluding items impacting comparability, adjusted
administrative expenses decreased 5 percent primarily due to the
benefits from cost savings initiatives.

The company reported EBIT of $440 million as compared to a loss of $37
million in the prior-year quarter. Excluding items impacting
comparability, adjusted EBIT increased 11 percent to $282 million,
reflecting lower adjusted marketing and selling expenses, as well as a
higher adjusted gross margin percentage, partly offset by lower sales.

Net interest expense decreased 18 percent to $23 million. Excluding
items impacting comparability in the current year, adjusted net interest
expense increased $1 million to $29 million, reflecting higher average
interest rates on the debt portfolio, partly offset by lower average
levels of debt. The tax rate was 23.7 percent as compared to 24.6
percent in the prior year. Excluding items impacting comparability, the
adjusted tax rate increased 0.8 percentage points to 37.2 percent.

The company reported EPS of $1.04 in the quarter. Excluding items
impacting comparability in both periods, adjusted EPS increased 13
percent to $0.52 per share, compared with $0.46 per share in the
year-ago quarter.

Full-Year Results

Sales decreased 1 percent to $7.890 billion driven by a 1 percent
decline in organic sales, reflecting lower volume and higher promotional
spending.

EBIT increased from $960 million to $1.400 billion. Excluding items
impacting comparability, adjusted EBIT increased 2 percent to $1.492
billion, reflecting a higher adjusted gross margin percentage and lower
adjusted administrative expenses, due in part to lower incentive
compensation costs, partly offset by lower sales volume.

Net interest expense decreased 4 percent to $107 million. Excluding
items impacting comparability in the current year, adjusted net interest
expense increased $2 million to $113 million, reflecting higher average
interest rates on the debt portfolio, partly offset by lower average
levels of debt. The tax rate decreased 2.3 percentage points to 31.4
percent. Excluding items impacting comparability, the adjusted tax rate
decreased 0.2 percentage points to 32.4 percent.

The company reported EPS of $2.89. Excluding items impacting
comparability in both years, adjusted EPS increased 3 percent to $3.04
per share, compared with $2.94 per share a year ago.

Cash flow from operations was $1.291 billion as compared to $1.491
billion a year ago. The year-over-year decline was primarily due to
lapping significant working capital reductions in the prior year, as
well as lower cash earnings and lower receipts from hedging activities
in the current year.

Segment Operating Review

An analysis of net sales and operating earnings by reportable segment
follows:

Three Months Ended July 30, 2017
($ in millions)
		Americas Simple Meals and Beverages		Global Biscuits and Snacks		Campbell Fresh		Total
Net Sales, as Reported		$815		$624		$225		$1,664
Volume and Mix		(2)%		(2)%		(1)%		(2)%
Promotional Spending		(1)%		1%		2%		-%
Organic Net Sales		(3)%		-%*		1%		(1)%*
Currency		-%		-%		-%		-%
% Change vs. Prior Year		(3)%		-%		1%		(1)%
Segment Operating Earnings		$198		$109		$(8)
% Change vs. Prior Year		4%		35%		n/m

n/m – not meaningful

* Numbers do not add due to rounding.

Note: A detailed reconciliation of the reported (GAAP) net sales to
organic net sales is included at the end of this news release.

Twelve Months Ended July 30, 2017
($ in millions)
		Americas Simple Meals and Beverages		Global Biscuits and Snacks		Campbell Fresh		Total
Net Sales, as Reported		$4,325		$2,598		$967		$7,890
Volume and Mix		(1)%		1%		(5)%		(1)%
Promotional Spending		(1)%		-%		1%		(1)%
Organic Net Sales		(1)%*		-%*		(5)%*		(1)%*
Currency		-%		1%		-%		-%
% Change vs. Prior Year		(1)%		1%		(5)%		(1)%
Segment Operating Earnings		$1,120		$454		$(9)
% Change vs. Prior Year		5%		8%		n/m

n/m – not meaningful

* Numbers do not add due to rounding.

Note: A detailed reconciliation of the reported (GAAP) net sales to
organic net sales is included at the end of this news release.

Americas Simple Meals and Beverages

Sales in the quarter decreased 3 percent to $815 million driven
primarily by declines in soup and V8 beverages. Sales of U.S.
soup decreased 4 percent driven by declines in condensed soups, broth
and ready-to-serve soups, reflecting a reduction in retailer inventory
levels while consumer takeaway in measured channels was comparable to
the prior-year quarter. For the fiscal year, sales of U.S. soup
decreased 1 percent.

Segment operating earnings in the quarter increased 4 percent to $198
million. The increase was primarily driven by lower advertising and
consumer promotion expenses and lower administrative expenses, partly
offset by lower sales volume and a lower gross margin percentage.

Global Biscuits and Snacks

Sales in the quarter were comparable to the prior year at $624 million,
as gains in Pepperidge Farm snacks, reflecting continued growth in Goldfish
crackers, as well as gains in Arnott’s biscuits in Australia,
were offset by declines in Indonesia.

Segment operating earnings increased 35 percent to $109 million. The
increase was primarily driven by a higher gross margin percentage, lower
advertising and consumer promotion expenses and lower administrative
expenses.

Campbell Fresh

Sales in the quarter increased 1 percent to $225 million driven
primarily by higher sales of Garden Fresh Gourmet, carrots and carrot
ingredients. Sales of Bolthouse Farms refrigerated beverages
declined slightly, reflecting supply constraints.

Segment operating earnings in the quarter decreased from $8 million to a
loss of $8 million, reflecting higher administrative expenses, higher
carrot costs and the continued cost impact of enhanced quality processes
and related beverage capacity constraints.

Segment operating earnings for the year decreased from $60 million to a
loss of $9 million, reflecting lower sales volume and unfavorable mix,
higher carrot costs, and the full year cost impact of enhanced quality
processes and related beverage capacity constraints, as well as higher
administrative expenses.

Corporate

Corporate in the fourth quarter of fiscal 2017 included pension and
postretirement mark-to-market gains of $198 million and charges related
to cost savings initiatives of $22 million. Corporate in the fourth
quarter of fiscal 2016 included a non-cash impairment charge of $141
million, pension and postretirement mark-to-market losses of $138
million and charges related to cost savings initiatives of $12 million.
The remaining decrease in expenses primarily reflects gains on open
commodity hedges.

Conference Call

Campbell will host a conference call to discuss these results today at
8:30 a.m. Eastern Daylight Time. To join in the U.S., dial (833)
659-8619. To join outside of the U.S., dial +1 (703) 639-1316. The
access code is 6692641. Access to a live webcast of the call with
accompanying slides, as well as a replay of the call, will be available
at investor.campbellsoupcompany.com.
A recording of the call will also be available until midnight on Sept.
14, 2017, at +1 (404) 537-3406. The access code for the replay is
6692641.

About Campbell Soup Company

Campbell (NYSE:CPB) is driven and inspired by our Purpose, “Real food
that matters for life’s moments.” We make a range of high-quality soups
and simple meals, beverages, snacks and packaged fresh foods. For
generations, people have trusted Campbell to provide authentic,
flavorful and readily available foods and beverages that connect them to
each other, to warm memories and to what’s important today. Led by our
iconic Campbell’s brand, our portfolio includes Pepperidge
Farm, Bolthouse Farms, Arnott’s, V8, Swanson, Pace, Prego, Plum, Royal
Dansk, Kjeldsens and Garden Fresh Gourmet. Founded in 1869,
Campbell has a heritage of giving back and acting as a good steward of
the planet’s natural resources. The company is a member of the Standard
& Poor’s 500 and the Dow Jones Sustainability Indexes. For more
information, visit www.campbellsoupcompany.com
or follow company news on Twitter via @CampbellSoupCo.
To learn more about how we make our food and the choices behind the
ingredients we use, visit www.whatsinmyfood.com.

Forward-Looking Statements

This release contains “forward-looking statements” that reflect the
company’s current expectations about the impact of its future plans and
performance on the company’s business or financial results. These
forward-looking statements, including the statements made regarding
sales, EBIT and EPS guidance for fiscal 2018, rely on a number of
assumptions and estimates that could be inaccurate and which are subject
to risks and uncertainties. The factors that could cause the company’s
actual results to vary materially from those anticipated or expressed in
any forward-looking statement include (1) the company’s ability to
manage changes to its organizational structure and/or business
processes; (2) the company’s ability to realize projected cost savings
and benefits from its efficiency programs; (3) the impact of strong
competitive responses to the company’s efforts to leverage its brand
power in the market; (4) the impact of changes in consumer demand for
the company’s products and favorable perception of the company’s brands;
(5) the impact of product quality and safety issues, including recalls
and product liabilities; (6) the risks associated with trade and
consumer acceptance of the company’s initiatives, including its trade
and promotional programs; (7) the impact of a changing customer
landscape, with value and e-commerce retailers expanding their market
presence, while certain of the company’s key customers continue to
increase their significance to the company’s business; (8) the impact of
changing inventory management practices by certain of the company’s key
customers; (9) the impact of disruptions to the company’s supply chain,
including fluctuations in the supply of and inflation in energy and raw
and packaging materials cost; (10) the impact of non-U.S. operations,
including trade restrictions, public corruption and compliance with
foreign laws and regulations; (11) the ability to complete and to
realize the projected benefits of acquisitions, divestitures and other
business portfolio changes; (12) the uncertainties of litigation and
regulatory actions against the company; (13) the possible disruption to
the independent contractor distribution models used by certain of the
company’s businesses, including as a result of litigation or regulatory
actions affecting their independent contractor classification; (14) the
company’s ability to protect its intellectual property rights; (15) the
impact of an impairment to goodwill or other intangible assets; (16) the
impact of increased liabilities and costs related to the company’s
defined benefit pension plans; (17) the impact of a material failure in
or breach of the company’s information technology systems; (18) the
company’s ability to attract and retain key talent; (19) the impact of
changes in currency exchange rates, tax rates, interest rates, debt and
equity markets, inflation rates, economic conditions, law, regulation
and other external factors; (20) the impact of unforeseen business
disruptions in one or more of the company’s markets due to political
instability, civil disobedience, terrorism, armed hostilities, natural
disasters or other calamities; and (21) other factors described in the
company’s most recent Form 10-K and subsequent Securities and Exchange
Commission filings. The company disclaims any obligation or intent to
update the forward-looking statements in order to reflect events or
circumstances after the date of this release.

CAMPBELL SOUP COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
(millions, except per share amounts)
		Three Months Ended
		July 30, 2017				July 31, 2016
Net sales		$	1,664			$	1,687
Costs and expenses
Cost of products sold		949				1,141
Marketing and selling expenses		143				216
Administrative expenses		86				185
Research and development expenses		20				38
Other expenses / (income)		8				145
Restructuring charges		18				(1		)
Total costs and expenses		1,224				1,724
Earnings (loss) before interest and taxes		440				(37		)
Interest, net		23				28
Earnings (loss) before taxes		417				(65		)
Taxes on earnings		99				16
Net earnings (loss)		318				(81		)
Net loss attributable to noncontrolling interests		—				—
Net earnings (loss) attributable to Campbell Soup Company		$	318			$	(81	)
Per share – basic
Net earnings (loss) attributable to Campbell Soup Company		$	1.05			$	(.26	)
Dividends		$	.35			$	.312
Weighted average shares outstanding – basic		303				308
Per share – assuming dilution
Net earnings (loss) attributable to Campbell Soup Company		$	1.04			$	(.26	)
Weighted average shares outstanding – assuming dilution		305				310

CAMPBELL SOUP COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
(millions, except per share amounts)
		Twelve Months Ended
		July 30, 2017				July 31, 2016
Net sales		$	7,890			$	7,961
Costs and expenses
Cost of products sold		4,831				5,181
Marketing and selling expenses		817				893
Administrative expenses		488				641
Research and development expenses		98				124
Other expenses / (income)		238				131
Restructuring charges		18				31
Total costs and expenses		6,490				7,001
Earnings before interest and taxes		1,400				960
Interest, net		107				111
Earnings before taxes		1,293				849
Taxes on earnings		406				286
Net earnings		887				563
Net loss attributable to noncontrolling interests		—				—
Net earnings attributable to Campbell Soup Company		$	887			$	563
Per share – basic
Net earnings attributable to Campbell Soup Company		$	2.91			$	1.82
Dividends		$	1.40			$	1.248
Weighted average shares outstanding – basic		305				309
Per share – assuming dilution
Net earnings attributable to Campbell Soup Company		$	2.89			$	1.81
Weighted average shares outstanding – assuming dilution		307				311

CAMPBELL SOUP COMPANY
CONSOLIDATED SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS
(millions, except per share amounts)
		Three Months Ended
		July 30, 2017				July 31, 2016				Percent Change
Sales
Contributions:
Americas Simple Meals and Beverages		$	815			$	842			(3)%
Global Biscuits and Snacks		624				622				—%
Campbell Fresh		225				223				1%
Total sales		$	1,664			$	1,687			(1)%
Earnings
Contributions:
Americas Simple Meals and Beverages		$	198			$	191			4%
Global Biscuits and Snacks		109				81				35%
Campbell Fresh		(8		)		8				n/m
Total operating earnings		299				280				7%
Corporate		159				(318		)
Restructuring charges		(18		)		1
Earnings (loss) before interest and taxes		440				(37		)		n/m
Interest, net		23				28
Taxes on earnings		99				16
Net earnings (loss)		318				(81		)		n/m
Net loss attributable to noncontrolling interests		—				—
Net earnings (loss) attributable to Campbell Soup Company		$	318			$	(81	)		n/m
Per share – assuming dilution
Net earnings (loss) attributable to Campbell Soup Company		$	1.04			$	(.26	)		n/m

CAMPBELL SOUP COMPANY
CONSOLIDATED SUPPLEMENTAL SCHEDULE OF SALES AND EARNINGS
(millions, except per share amounts)
		Twelve Months Ended
		July 30, 2017				July 31, 2016				Percent Change
Sales
Contributions:
Americas Simple Meals and Beverages		$	4,325			$	4,380			(1)%
Global Biscuits and Snacks		2,598				2,564				1%
Campbell Fresh		967				1,017				(5)%
Total sales		$	7,890			$	7,961			(1)%
Earnings
Contributions:
Americas Simple Meals and Beverages		$	1,120			$	1,069			5%
Global Biscuits and Snacks		454				422				8%
Campbell Fresh		(9		)		60				n/m
Total operating earnings		1,565				1,551				1%
Corporate		(147		)		(560		)
Restructuring charges		(18		)		(31		)
Earnings before interest and taxes		1,400				960				46%
Interest, net		107				111
Taxes on earnings		406				286
Net earnings		887				563				58%
Net loss attributable to noncontrolling interests		—				—
Net earnings attributable to Campbell Soup Company		$	887			$	563			58%
Per share – assuming dilution
Net earnings attributable to Campbell Soup Company		$	2.89			$	1.81			60%

CAMPBELL SOUP COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(millions)
		July 30, 2017				July 31, 2016
Current assets		$	1,900			$	1,908
Plant assets, net		2,454				2,407
Intangible assets, net		3,233				3,415
Other assets		139				107
Total assets		$	7,726			$	7,837
Current liabilities		$	2,395			$	2,555
Long-term debt		2,499				2,314
Other liabilities		1,187				1,435
Total equity		1,645				1,533
Total liabilities and equity		$	7,726			$	7,837
Total debt		$	3,536			$	3,533
Cash and cash equivalents		$	319			$	296

CAMPBELL SOUP COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(millions)
		Twelve Months Ended
		July 30, 2017				July 31, 2016
Cash flows from operating activities:
Net earnings		$	887			$	563
Adjustments to reconcile net earnings to operating cash flow
Impairment charges		212				141
Restructuring charges		18				31
Stock-based compensation		60				64
Pension and postretirement benefit expense (income)		(258		)		317
Depreciation and amortization		318				308
Deferred income taxes		93				(30		)
Other, net		18				6
Changes in working capital
Accounts receivable		28				24
Inventories		46				59
Prepaid assets		(27		)		9
Accounts payable and accrued liabilities		(48		)		15
Pension fund contributions		(5		)		(2		)
Net receipts from hedging activities		2				44
Other		(53		)		(58		)
Net cash provided by operating activities		1,291				1,491
Cash flows from investing activities:
Purchases of plant assets		(338		)		(341		)
Sales of plant assets		—				5
Other, net		(30		)		(18		)
Net cash used in investing activities		(368		)		(354		)
Cash flows from financing activities:
Net short-term borrowings (repayments)		245				(762		)
Long-term borrowings		211				215
Long-term repayments		(90		)		—
Repayments of notes payable		(400		)		—
Dividends paid		(420		)		(390		)
Treasury stock purchases		(437		)		(143		)
Treasury stock issuances		2				2
Payments related to tax withholding for stock-based compensation		(22		)		(21		)
Net cash used in financing activities		(911		)		(1,099		)
Effect of exchange rate changes on cash		11				5
Net change in cash and cash equivalents		23				43
Cash and cash equivalents — beginning of period		296				253
Cash and cash equivalents — end of period		$	319			$	296

The company adopted new accounting guidance for stock-based compensation
in the first quarter of 2017. Certain amounts in the prior year were
reclassified to conform to the current-year presentation.

Reconciliation of GAAP to Non-GAAP Financial Measures
Fiscal
Year Ended July 30, 2017

Campbell Soup Company uses certain non-GAAP financial measures as
defined by the Securities and Exchange Commission in certain
communications. These non-GAAP financial measures are measures of
performance not defined by accounting principles generally accepted in
the United States and should be considered in addition to, not in lieu
of, GAAP reported measures. Management believes that also presenting
certain non-GAAP financial measures provides additional information to
facilitate comparison of the company’s historical operating results and
trends in its underlying operating results, and provides transparency on
how the company evaluates its business. Management uses these non-GAAP
financial measures in making financial, operating and planning decisions
and in evaluating the company’s performance.

Organic Net Sales

Organic net sales are net sales excluding the impact of currency.
Management believes that excluding this item, which is not part of the
ongoing business, improves the comparability of year-to-year results. A
reconciliation of net sales as reported to organic net sales follows.

Three Months Ended
		July 30, 2017												July 31, 2016				% Change
(millions)		Net Sales, as Reported				Impact of Currency				Organic Net Sales				Net Sales, as Reported				Net Sales, as Reported			Organic Net Sales
Americas Simple Meals and Beverages		$	815			$	1			$	816			$	842			(3	)%		(3	)%
Global Biscuits and Snacks		624				(3		)		621				622				—	%		—	%
Campbell Fresh		225				—				225				223				1	%		1	%
Total Net Sales		$	1,664			$	(2	)		$	1,662			$	1,687			(1	)%		(1	)%

Year Ended
		July 30, 2017												July 31, 2016				% Change
(millions)		Net Sales, as Reported				Impact of Currency				Organic Net Sales				Net Sales, as Reported				Net Sales, as Reported			Organic Net Sales
Americas Simple Meals and Beverages		$	4,325			$	(1	)		$	4,324			$	4,380			(1	)%		(1	)%
Global Biscuits and Snacks		2,598				(26		)		2,572				2,564				1	%		—	%
Campbell Fresh		967				—				967				1,017				(5	)%		(5	)%
Total Net Sales		$	7,890			$	(27	)		$	7,863			$	7,961			(1	)%		(1	)%

Items Impacting Earnings

The company believes that financial information excluding certain items
that are not considered to be part of the ongoing business, such as
those listed below, improves the comparability of year-to-year results.
Consequently, the company believes that investors may be able to better
understand its results excluding these items.

The following items impacted earnings:

(1)		In the fourth quarter of fiscal 2017, the company incurred gains of $198 million in Costs and expenses ($129 million after tax, or $.42 per share) associated with mark-to-market adjustments for defined benefit pension and postretirement plans. In fiscal 2017, the company incurred gains of $178 million in Costs and expenses ($116 million after tax, or $.38 per share) associated with mark-to-market adjustments for defined benefit pension and postretirement plans. In the fourth quarter of fiscal 2016, the company incurred losses of $138 million in Costs and expenses ($90 million after tax, or $.29 per share) associated with mark-to-market adjustments for defined benefit pension and postretirement plans. In fiscal 2016, the company incurred losses of $313 million in Costs and expenses ($200 million after tax, or $.64 per share) associated with mark-to-market adjustments for defined benefit pension and postretirement plans.
(2)		In fiscal 2015, the company implemented a new enterprise design and initiatives to reduce costs and to streamline its organizational structure. In fiscal 2017, the company expanded these cost savings initiatives by further optimizing its supply chain network, primarily in North America, continuing to evolve its operating model to drive efficiencies, and more fully integrating its recent acquisitions. In the fourth quarter of fiscal 2017, the company recorded Restructuring charges of $18 million and implementation costs and other related costs of $18 million in Administrative expenses and $4 million in Cost of products sold (aggregate impact of $26 million after tax, or $.09 per share) related to these initiatives. In fiscal 2017, the company recorded Restructuring charges of $18 million and implementation costs and other related costs of $36 million in Administrative expenses and $4 million in Cost of products sold (aggregate impact of $37 million after tax, or $.12 per share) related to these initiatives.
		In the fourth quarter of fiscal 2016, the company recorded implementation costs and other related costs of $12 million in Administrative expenses related to the fiscal 2015 initiatives. In the fourth quarter of fiscal 2016, the company also recorded a reduction to Restructuring charges of $1 million related to the fiscal 2014 initiatives. The aggregate after-tax impact of Restructuring charges, implementation costs and other related costs was $7 million, or $.02 per share. In fiscal 2016, the company recorded Restructuring charges of $35 million and implementation costs and other related costs of $47 million in Administrative expenses related to the fiscal 2015 initiatives. The company also recorded a reduction to Restructuring charges of $4 million related to the fiscal 2014 initiatives. The aggregate after-tax impact of Restructuring charges, implementation costs and other related costs was $49 million, or $.16 per share.
(3)		In the second quarter of fiscal 2017, the company performed an interim impairment assessment on the intangible assets of the Bolthouse Farms carrot and carrot ingredients reporting unit and the Garden Fresh Gourmet reporting unit as operating performance was well below expectations and a new leadership team of the Campbell Fresh division initiated a strategic review which led to a revised outlook for future sales, earnings, and cash flow. The company recorded a non-cash impairment charge of $147 million ($139 million after tax, or $.45 per share) related to intangible assets of the Bolthouse Farms carrot and carrot ingredients reporting unit and a non-cash impairment charge of $65 million ($41 million after tax, or $.13 per share) related to the intangible assets of the Garden Fresh Gourmet reporting unit (aggregate pre-tax impact of $212 million, $180 million after tax, or $.59 per share). The charges are included in Other expenses / (income).
		In the fourth quarter of fiscal 2016, as part of the annual review of intangible assets, the company recorded a non-cash impairment charge of $141 million in Other expenses / (income) ($127 million after tax, or $.41 per share) related to the intangible assets of the Bolthouse Farms carrot and carrot ingredients reporting unit.
(4)		In the fourth quarter of fiscal 2017, the company recorded a tax benefit of $52 million in Taxes on earnings primarily related to the sale of intercompany notes receivable to a financial institution, which resulted in the recognition of foreign exchange losses on the notes for tax purposes. In addition, the company recorded a $6 million reduction to interest expense ($4 million after tax) related to premiums and fees received on the sale of the notes. The aggregate impact was $56 million after tax, or $.18 per share.
(5)		In fiscal 2016, the company recorded a gain of $25 million in Other expenses / (income) ($.08 per share) from a settlement of a claim related to the Kelsen acquisition.

The following tables reconcile financial information, presented in
accordance with GAAP, to financial information excluding certain items:

		Three Months Ended
		July 30, 2017												July 31, 2016
(millions, except per share amounts)		As reported				Adjustments(a)				Adjusted				As reported				Adjustments(a)				Adjusted				Adjusted Percent Change
Gross margin		$	715			$	(101	)		$	614			$	546			$	63			$	609			1	%
Gross margin percentage		43.0		%						36.9		%		32.4		%						36.1		%
Marketing and selling expenses		143				29				172				216				(20		)		196
Administrative expenses		86				35				121				185				(57		)		128
Research and development expenses		20				11				31				38				(10		)		28
Other expenses / (income)		8				—				8				145				(141		)		4
Restructuring charges		18				(18		)		—				(1		)		1				—
Earnings (loss) before interest and taxes		$	440			$	(158	)		$	282			$	(37	)		$	290			$	253			11	%
Interest, net		23				6				29				28				—				28
Earnings (loss) before taxes		$	417			$	(164	)		$	253			$	(65	)		$	290			$	225
Taxes		99				(5		)		94				16				66				82
Effective income tax rate		23.7		%						37.2		%		24.6		%						36.4		%
Net earnings (loss) attributable to Campbell Soup Company		$	318			$	(159	)		$	159			$	(81	)		$	224			$	143			11	%
Diluted net earnings (loss) per share attributable to Campbell Soup Company		$	1.04			$	(.52	)		$	.52			$	(.26	)		$	.72			$	.46			13	%
(a)See following table for additional information.

		Three Months Ended
		July 30, 2017																July 31, 2016
(millions, except per share amounts)		Mark- to- market (1)				Restructuring charges, implementation costs and other related costs (2)				Sale of notes (4)				Adjustments				Mark- to- market (1)				Restructuring charges, implementation costs and other related costs (2)				Impairment charges (3)				Adjustments
Gross margin		$	(105	)		$	4			$	—			$	(101	)		$	63			$	—			$	—			$	63
Marketing and selling expenses		29				—				—				29				(20		)		—				—				(20		)
Administrative expenses		53				(18		)		—				35				(45		)		(12		)		—				(57		)
Research and development expenses		11				—				—				11				(10		)		—				—				(10		)
Other expenses / (income)		—				—				—				—				—				—				(141		)		(141		)
Restructuring charges		—				(18		)		—				(18		)		—				1				—				1
Earnings before interest and taxes		$	(198	)		$	40			$	—			$	(158	)		$	138			$	11			$	141			$	290
Interest, net		—				—				6				6				—				—				—				—
Earnings before taxes		$	(198	)		$	40			$	(6	)		$	(164	)		$	138			$	11			$	141			$	290
Taxes		(69		)		14				50				(5		)		48				4				14				66
Net earnings attributable to Campbell Soup Company		$	(129	)		$	26			$	(56	)		$	(159	)		$	90			$	7			$	127			$	224
Diluted net earnings per share attributable to Campbell Soup Company*		$	(.42	)		$	.09			$	(.18	)		$	(.52	)		$	.29			$	.02			$	.41			$	.72
*The sum of the individual per share amounts may not add due to rounding.

		Year Ended
		July 30, 2017												July 31, 2016
(millions, except per share amounts)		As reported				Adjustments(a)				Adjusted				As reported				Adjustments(a)				Adjusted				Adjusted Percent Change
Gross margin		$	3,059			$	(81	)		$	2,978			$	2,780			$	176			$	2,956			1	%
Gross margin percentage		38.8		%						37.7		%		34.9		%						37.1		%
Marketing and selling expenses		817				29				846				893				(46		)		847
Administrative expenses		488				17				505				641				(118		)		523
Research and development expenses		98				11				109				124				(20		)		104
Other expenses / (income)		238				(212		)		26				131				(116		)		15
Restructuring charges		18				(18		)		—				31				(31		)		—
Earnings before interest and taxes		$	1,400			$	92			$	1,492			$	960			$	507			$	1,467			2	%
Interest, net		107				6				113				111				—				111
Earnings before taxes		$	1,293			$	86			$	1,379			$	849			$	507			$	1,356
Taxes		406				41				447				286				156				442
Effective income tax rate		31.4		%						32.4		%		33.7		%						32.6		%
Net earnings attributable to Campbell Soup Company		$	887			$	45			$	932			$	563			$	351			$	914			2	%
Diluted net earnings per share attributable to Campbell Soup Company		$	2.89			$	.15			$	3.04			$	1.81			$	1.13			$	2.94			3	%
(a)See following tables for additional information.

		Year Ended
		July 30, 2017
(millions, except per share amounts)		Mark- to- market (1)				Restructuring charges, implementation costs and other related costs (2)				Impairment charges (3)				Sale of notes (4)				Adjustments
Gross margin		$	(85	)		$	4			$	—			$	—			$	(81	)
Marketing and selling expenses		29				—				—				—				29
Administrative expenses		53				(36		)		—				—				17
Research and development expenses		11				—				—				—				11
Other expenses / (income)		—				—				(212		)		—				(212		)
Restructuring charges		—				(18		)		—				—				(18		)
Earnings before interest and taxes		$	(178	)		$	58			$	212			$	—			$	92
Interest, net		—				—				—				6				6
Earnings before taxes		$	(178	)		$	58			$	212			$	(6	)		$	86
Taxes		(62		)		21				32				50				41
Net earnings attributable to Campbell Soup Company		$	(116	)		$	37			$	180			$	(56	)		$	45
Diluted net earnings per share attributable to Campbell Soup Company		$	(.38	)		$	.12			$	.59			$	(.18	)		$	.15

		Year Ended
		July 31, 2016
(millions, except per share amounts)		Mark- to- market (1)				Restructuring charges, implementation costs and other related costs (2)				Impairment charges (3)				Claim settlement (5)				Adjustments
Gross margin		$	176			$	—			$	—			$	—			$	176
Marketing and selling expenses		(46		)		—				—				—				(46		)
Administrative expenses		(71		)		(47		)		—				—				(118		)
Research and development expenses		(20		)		—				—				—				(20		)
Other expenses / (income)		—				—				(141		)		25				(116		)
Restructuring charges		—				(31		)		—				—				(31		)
Earnings before interest and taxes		$	313			$	78			$	141			$	(25	)		$	507
Interest, net		—				—				—				—				—
Earnings before taxes		$	313			$	78			$	141			$	(25	)		$	507
Taxes		113				29				14				—				156
Net earnings attributable to Campbell Soup Company		$	200			$	49			$	127			$	(25	)		$	351
Diluted net earnings per share attributable to Campbell Soup Company		$	.64			$	.16			$	.41			$	(.08	)		$	1.13

View source version on businesswire.com: https://www.businesswire.com/news/home/20170831005297/en/

Source: Campbell Soup Company

Campbell Soup Company
INVESTOR CONTACT:
Ken
Gosnell, 856-342-6081
[email protected]
or
MEDIA
CONTACT:
Carla Burigatto, 856-342-3737
[email protected]