caret-down

Selected Quarterly Financial Information




Items impacting comparability
(a) In the second quarter of fiscal 2007, the company recognized a pre-tax gain of $23 million ($14 million after-tax or $0.04 per share) from the sale of an idle manufacturing facility. The gain was recorded in the Baking and Snacking segment.


(b) In the second quarter of fiscal 2008, the company recognized a $13 million (or $0.3 per share) tax benefit related to the favorable resolution of a state tax contingency.


© In fiscal 2008, the company announced initiatives to improve operational efficiency and long-term profitability including selling certain salty snack food brands and assets in Australia, closing certain production facilities in Australia and Canada, and streamling the company’s management structure. In the fourth quarter, the company recorded pre-tax restructuring charge of $3 million and expenses in cost of products sold of $7 million (aggregate impact of
$7 million after-tax or $.02 per share) in earnings from continuing operations related to these initiatives. The costs were recognized in the following segments: International Soup, Sauces and Beverages – $3 and North America Foodservice – $7. For the fiscal year, the company recorded pre-tax restructuring charges of $175 million and $7 million of expenses in cost of products sold (aggregate impact of $107 million after-tax or $.28 per share)related to these initiatives. The costs were recognized in the following segments: Baking and Snacking – $144, International Soup, Sauces and Beverages – $9, and North America Foodservice – $29.


(d) In the third quarter of fiscal 2007, the company recorded a pre-tax non-cash benefit of $20 million ($13 million after-tax or $0.03 per share) from the reversal of legal reserves due to favorable results in litigation. This benefit was recorded in Unallocated Corporate expenses.


(e) In the third quarter of fiscal 2007, the company recorded a tax benefit of $22 million resulting from the favorable settlement of bilateral advance pricing agreements among the company, the United States and Canada related to royalties. In addition, the company reduced net interest expense by $4 million ($3 million after-tax). The aggregate impact on earnings from continuing operations was $25 million, or $.06 per share.


(f) In fiscal 2008, the company recorded an after-tax gain of $462 million (or $1.21 per share) related to the sale of the Godiva Chocolatier business. In fiscal 2007, the company recorded an after-tax gain of $24 million (or $0.06 per share) related to the sale of the U.K. and Ireland businesses, $1 million of which was recognized in the fourth quarter of fiscal 2007. In the fourth quarter of fiscal 2007, the company recorded a $7million tax benefit in earnings from discontinued operations from the favorable resolution of tax audits in the United Kingdom. The aggregate impact on earnings from discontinued operations was $8 million (or $.02 per share) in the fourth quarter and $31 million (or $.08 per share) for fiscal 2007.