Mondelez International Reports 2013 Results
Financial Schedules and GAAP to Non-GAAP Information
Earnings Release
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Full Year Highlights
- Net revenues increased 0.8%; Organic Net Revenues(1) grew 3.9%, despite a (0.8)pp impact from lower coffee revenues
- Strong market share performance(2) with nearly 70% of revenues gaining or holding share
- Emerging markets revenues increased nearly 9%; BRIC markets up nearly 10%
- Operating Income margin was 11.2%; Adjusted Operating Income(1) margin was 12.0%
- Diluted EPS was $2.19; Adjusted EPS(1) was $1.51, up 13.5% on a constant currency basis
- Company repurchased $2.7 billion of shares
- Net debt reduced by $0.5 billion; tendered and refinanced $3 billion of higher cost debt
Fourth Quarter Highlights
- Net revenues decreased 0.1%; Organic Net Revenues increased 2.5%, despite a (0.7)pp impact from lower coffee revenues
- Operating Income margin was 10.6%; Adjusted Operating Income margin increased 2.9 pp to 13.9%
- Diluted EPS was $1.00; Adjusted EPS was $0.42, up 16% on a constant currency basis
2014 Outlook
- Organic Net Revenue to grow at or above category growth, approximately 4%
- Adjusted Operating Income growth of low double digits on a constant currency basis, resulting in an expected Adjusted Operating Income margin in the high 12% range
- Adjusted EPS of $1.73 to $1.78, up double digits on a constant currency basis
"In our first full year as a global snacking company, we delivered solid revenue growth and strong market share performance in the face of a significant slowdown in our categories as 2013 progressed," said
"We're committed to improving results in 2014 and beyond. Specifically, we expect to grow organic revenue at or above our category growth rate, which we estimate at approximately 4 percent in 2014. In addition, we remain focused on increasing efficiency and aggressively reducing costs in both our supply chain and overheads to deliver strong margin gains throughout the year. Although we anticipate near-term economic conditions will remain challenging, the plans we are executing give us great confidence in our potential to significantly expand margins and deliver strong top-line growth in 2014 and the years ahead."
Full Year Results
Net revenues were
Organic Net Revenues increased 3.9 percent, driven by strong volume/mix of 3.4 percentage points as well as favorable pricing of 0.5 percentage points. Lower coffee revenues, reflecting the pass-through of lower green coffee costs, tempered growth by 0.8 percentage points. Market share performance was strong with nearly 70 percent of revenues gaining or holding share.
Revenues from emerging markets4 were up 8.8 percent, led by a nearly 10 percent gain in the BRIC markets5. Developed markets6 increased 0.8 percent as growth in
Power Brands grew 6.5 percent. Oreo, Tuc, Club Social, belVita and Barni biscuits, Cadbury Dairy Milk and Lacta chocolate and Tassimo coffee each posted double-digit increases.
Adjusted Operating Income increased 4.7 percent on a constant currency basis. Volume/mix-driven gross profit growth was partially offset by increased investments in sales capabilities and route-to-market expansion as well as the net impact of one-time items7. Adjusted Operating Income margin was 12.0 percent, down 0.2 percentage points, including a negative impact of 0.3 percentage points due to the devaluation of the Venezuelan bolivar.
Adjusted EPS was
Free
Revision to Net Earnings and EPS
In the first nine months of 2013, the company incorrectly recorded certain non-cash, tax-related items. The company has corrected the recording of these items, which reduced 2013 diluted EPS by
Fourth Quarter Results
Net revenues were
Organic Net Revenues increased 2.5 percent, nearly all due to volume/mix. The pass-through of lower coffee commodity costs tempered growth by 0.7 percentage points. Revenues from emerging markets increased 5.9 percent, led by low-teens growth in
Power Brands continued to grow faster than the company average, up 4.1 percent, led by Tuc, Club Social, belVita and Barni biscuits, Cadbury Dairy Milk, Milka and Lacta chocolate and Tassimo coffee.
Adjusted Operating Income increased 31.5 percent on a constant currency basis, reflecting overhead reductions, particularly in
Adjusted EPS was
Revenue Results by Region
Fourth quarter net revenues decreased 4.5 percent. Organic Net Revenues grew 10.4 percent as pricing in the inflationary economies of
Fourth quarter net revenues decreased 13.3 percent. Organic Net Revenues were down 6.1 percent due to lower pricing across most of the region and unfavorable volume/mix in China.
EEMEA: Full year net revenues increased 4.8 percent. Organic Net Revenues grew 9.2 percent, as strong volume/mix gains were partially offset by lower pricing, mostly from coffee in Eastern Europe. Revenue growth was broad-based with double-digit gains in
Fourth quarter net revenues increased 2.9 percent. Organic Net Revenues grew 8.2 percent, driven almost entirely by strong volume/mix gains.
Fourth quarter net revenues increased 4.8 percent. Organic Net Revenues increased 1.0 percent, with continued volume/mix momentum in chocolate, coffee and biscuits. These gains were partially offset by lower pricing in coffee and soft, but improved performance in gum. Lower coffee revenues negatively affected the region's growth by 2.2 percentage points. The region's Power Brands grew 3.0 percent.
Fourth quarter net revenues increased 1.5 percent. Organic Net Revenues increased 3.1 percent, driven by strong biscuits volume/mix gains. As expected, gum revenues improved sequentially, but still declined mid-single digits, reflecting stabilization in market shares as most customer shelves have now been reset. The region's Power Brands grew 4.5 percent.
Share Repurchases
During 2013, the company repurchased
Outlook
"We expect organic revenues to grow approximately 4 percent in 2014, which is at or above the growth of our categories," said
"Additionally, we expect to drive low double-digit growth in Adjusted Operating Income at constant currency, fueled by our focused efforts to reduce overheads, restructure our global supply chain and improve product mix, while continuing to invest in emerging markets. We anticipate this increase will result in an Adjusted Operating Income margin in the high 12 percent range and be the primary lever in delivering Adjusted EPS of
Conference Call
About
End Notes
- Please see discussion of Non-GAAP Financial Measures at the end of this press release.
-
Market share performance is defined as the percentage of revenues for the biscuits, chocolate, gum, candy, coffee, powdered beverage and cream cheese categories in key markets with share either increasing or flat versus the same prior year period. Based on Global Nielsen data for measured channels for available periods through
December 2013 . -
On
December 13, 2013 , the independent arbitrator in the dispute between Kraft Foods Group andStarbucks Coffee Company issued a decision and Final Award that Starbucks must pay$2.8 billion in total cash compensation for its unilateral termination of the companies' license and supply agreement. The award included compensation for the fair market value of the agreement, a premium for improper termination, interest and attorney's fees. Starbucks has paid the entire amount owed pursuant to the ruling, and Kraft Foods Group directed the recovery awarded to the company. The company recorded a gain, net of taxes, of$1.6 billion during the fourth quarter of 2013. -
Emerging markets consist of the
Latin America andEastern Europe ,Middle East andAfrica regions in their entirety; theAsia Pacific region, excludingAustralia ,New Zealand andJapan ; and the following countries from theEurope region:Poland , Czech & Slovak Republics,Hungary ,Bulgaria ,Romania , the Baltics and the East Adriatic countries. -
The BRIC markets are
Brazil ,Russia ,India andChina . -
Developed markets include the entire
North America region, theEurope region excluding the countries included in the emerging markets definition, andAustralia ,New Zealand andJapan from theAsia Pacific region. -
Current year one-time items include the gains on sales of properties in
India (Asia Pacific ) and theUK ,Norway andItaly (Europe ), and accounting calendar changes (Europe ). Prior year one-time items include the gains on sales of properties inRussia andTurkey (EEMEA), an asset impairment charge related to a trademark inJapan (Asia Pacific ), the reversal of aCadbury reserve accrual (Europe ) and proceeds from insurance settlements (Latin America andAsia Pacific ). The net impact of these one-time items decreased Adjusted Operating Income growth and Adjusted Operating Income margin by 0.8 pp and 0.2 pp, respectively. -
During the fourth quarter, the company determined it needed to revise its results for certain incorrectly recorded non-cash, tax-related items. The impact to previously reported 2013 quarters was a
$59 million reduction of net earnings. The impact to fiscal years prior to 2013 was an increase in net earnings which totaled$90 million . Please see the schedules detailing the revisions for the first nine months of 2013 at the end of this press release. -
Current year one-time items in the fourth quarter include the gains on sales of properties in
India (Asia Pacific ) and theUK andItaly (Europe ) and accounting calendar changes (Europe ). Prior year one-time items include an asset impairment charge related to a trademark inJapan (Asia Pacific ). The net impact of these one-time items increased Adjusted Operating Income growth and Adjusted Operating Income margin by 9.2 pp and 1.0 pp, respectively. -
The Gulf Cooperation Council (GCC) countries areBahrain ,Kuwait ,Oman ,Qatar , Saudi Arabia and theUnited Arab Emirates . -
Adjusted EPS guidance of
$1.73-$1.78 is based on 2013 average currency rates.
Forward-Looking Statements
This press release contains a number of forward-looking statements. Words, and variations of words, such as "will," "expect," "anticipate," "estimate," "intend," "likely," "growth," "deliver," "outlook," "guidance" and similar expressions are intended to identify our forward-looking statements, including, but not limited to, statements about: our future performance, including our future revenue growth, earnings per share and margins; the drivers of our future performance, including cost reductions, productivity and efficiency improvements and investments in emerging markets; economic conditions; category growth; and our Outlook, including 2014 Organic Net Revenue growth, Adjusted Operating Income growth, Adjusted Operating Income margin and Adjusted EPS. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from those indicated in our forward-looking statements. Such factors include, but are not limited to, risks from operating globally and in emerging markets, continued consumer weakness, continued volatility of commodity and other input costs, pricing actions, continued weakness in economic conditions, business disruptions, increased competition and tax law changes. Please also see our risk factors, as they may be amended from time to time, set forth in our filings with the
Non-GAAP Financial Measures
The company reports its financial results in accordance with accounting principles generally accepted in
Our non-GAAP financial measures and corresponding metrics reflect how we evaluate our operating results currently and provide improved comparability of operating results. As new events or circumstances arise, these definitions could change over time:
- "Organic Net Revenues" is defined as net revenues excluding the impacts of acquisitions, divestitures (including businesses under sales agreements and exits of major product lines under a sale or licensing agreement), Integration Program costs, accounting calendar changes and foreign currency rate fluctuations.
- "Adjusted Gross Profit" is defined as gross profit excluding the impact of pension costs related to obligations transferred in the Spin-Off, the 2012-2014 Restructuring Program, the Integration Program and other acquisition integration costs and the operating results of divestitures (including businesses under sales agreements and exits of major product lines under a sale or licensing agreement). We also evaluate growth in our Adjusted Gross Profit on a constant currency basis.
-
"Adjusted Operating Income" and "Adjusted Segment Operating Income" are defined as operating income (or segment operating income) excluding the impact of Spin-Off Costs, pension costs related to the obligations transferred in the Spin-Off, the 2012-2014 Restructuring Program, the Integration Program and other acquisition integration costs, the benefit from the
Cadbury acquisition-related indemnification resolution, gains / losses from divestitures or acquisitions, acquisition-related costs and the operating results of divestitures (including businesses under sales agreements and exits of major product lines under a sale or licensing agreement). We also evaluate growth in our Adjusted Operating Income and Adjusted Segment Operating Income on a constant currency basis. -
"Adjusted EPS" (previously referred to as "Operating EPS") is defined as diluted EPS attributable to
Mondelez International from continuing operations excluding the impact of Spin-Off Costs, pension costs related to the obligations transferred in the Spin-Off, the 2012-2014 Restructuring Program, the Integration Program and other acquisition integration costs, the benefit from theCadbury acquisition-related indemnification resolution, the loss on debt extinguishment and related expenses, the residual tax impact from the resolution of the Starbucks arbitration, gains / losses from divestitures or acquisitions, acquisition-related costs and net earnings from divestitures (including businesses under sales agreements and exits of major product lines under a sale or licensing agreement), and including an interest expense adjustment related to the Spin-Off transaction. We also evaluate growth in our Adjusted EPS on a constant currency basis. -
"Free Cash Flow excluding items" is defined as Free Cash Flow (net cash provided by operating activities less capital expenditures) excluding the following: (1) net cash received due to the resolution of the Starbucks arbitration, and (2) the cash payments made for accrued interest and other related fees associated with the debt tendered on
December 18, 2013 .
We believe that the presentation of these non-GAAP financial measures, when considered together with our U.S. GAAP financial measures and the reconciliations to the corresponding U.S. GAAP financial measures, provides you with a more complete understanding of the factors and trends affecting our business than could be obtained absent these disclosures. In addition, the non-GAAP measures the company is using may differ from non-GAAP measures used by other companies. Because GAAP financial measures on a forward-looking basis are neither accessible nor deemed to be significantly different from the non-GAAP financial measures, and reconciling information is not available without unreasonable effort, the company has not provided that information with regard to the non-GAAP financial measures in the company's Outlook.
See the attached schedules for supplemental financial data and corresponding reconciliations of the non-GAAP financial measures referred to above to the most comparable GAAP financial measures for the three and twelve months ended
Segment Operating Income
Management uses segment operating income to evaluate segment performance and allocate resources. The company believes it is appropriate to disclose this measure to help investors analyze segment performance and trends. Segment operating income excludes unrealized gains and losses on hedging activities (which are a component of cost of sales), general corporate expenses (which are a component of selling, general and administrative expenses), amortization of intangibles, the benefit from the
|
|||||||
Condensed Consolidated Statements of Earnings |
|||||||
For the Three Months Ended |
Schedule 1 |
||||||
(in millions of dollars, except per share data) (Unaudited) |
|||||||
As Reported/Revised (GAAP) |
|||||||
2013 |
2012 |
% Change Fav / (Unfav) |
|||||
Net revenues |
|
|
(0.1)% |
||||
Cost of sales |
5,995 |
5,945 |
(0.8)% |
||||
Gross profit |
3,493 |
3,550 |
(1.6)% |
||||
Gross profit margin |
36.8% |
37.4% |
|||||
Selling, general and administrative expenses |
2,294 |
2,575 |
10.9% |
||||
Asset impairment and exit costs |
138 |
69 |
(100.0)% |
||||
Gains on acquisition and divestitures, net |
(2) |
(107) |
(100.0)% |
||||
Amortization of intangibles |
53 |
54 |
1.9% |
||||
Operating income |
1,010 |
959 |
5.3% |
||||
Operating income margin |
10.6% |
10.1% |
|||||
Interest and other expense, net |
847 |
295 |
(100.0+)% |
||||
Earnings from continuing operations before income taxes |
163 |
664 |
(75.5)% |
||||
Provision / (benefit) for income taxes |
(7) |
68 |
100.0+% |
||||
Effective tax rate |
(4.3)% |
10.2% |
|||||
Earnings from continuing operations |
$ 170 |
$ 596 |
(71.5)% |
||||
Earnings from discontinued operations, net of income taxes |
1,603 |
(18) |
100.0+% |
||||
Net earnings |
$ 1,773 |
$ 578 |
100.0+% |
||||
Noncontrolling interest |
7 |
9 |
22.2% |
||||
Net earnings attributable to |
$ 1,766 |
$ 569 |
100.0+% |
||||
Per share data: |
|||||||
Basic earnings per share attributable to |
|||||||
- Continuing operations |
$ 0.09 |
$ 0.33 |
(72.7)% |
||||
- Discontinued operations |
0.92 |
(0.01) |
100.0+% |
||||
Net earnings attributable to |
$ 1.01 |
$ 0.32 |
100.0+% |
||||
Diluted earnings per share attributable to |
|||||||
- Continuing operations |
$ 0.09 |
$ 0.33 |
(72.7)% |
||||
- Discontinued operations |
0.91 |
(0.01) |
100.0+% |
||||
Net earnings attributable to |
$ 1.00 |
$ 0.32 |
100.0+% |
||||
Average shares outstanding: |
|||||||
Basic |
1,743 |
1,781 |
2.1% |
||||
Diluted |
1,761 |
1,793 |
1.8% |
|
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
||||||||||||||||
Net Revenues |
||||||||||||||||
For the Three Months Ended |
Schedule 2 |
|||||||||||||||
($ in millions) (Unaudited) |
||||||||||||||||
As Reported/Revised (GAAP) |
Impact of Divestitures (1) |
Impact of Acquisitions (2) |
Impact of Accounting Calendar Changes |
Impact of Currency |
Organic (Non-GAAP) |
|||||||||||
2013 |
||||||||||||||||
|
$ 1,337 |
$ - |
$ - |
$ - |
$ 209 |
$ 1,546 |
||||||||||
|
1,209 |
- |
- |
- |
100 |
1,309 |
||||||||||
|
1,065 |
- |
(32) |
- |
55 |
1,088 |
||||||||||
|
4,033 |
(2) |
- |
(19) |
(135) |
3,877 |
||||||||||
|
1,844 |
(8) |
- |
- |
18 |
1,854 |
||||||||||
|
$ 9,488 |
$ (10) |
$ (32) |
$ (19) |
$ 247 |
$ 9,674 |
||||||||||
2012 |
||||||||||||||||
|
$ 1,400 |
$ - |
$ - |
$ - |
$ - |
$ 1,400 |
||||||||||
|
1,394 |
- |
- |
- |
- |
1,394 |
||||||||||
|
1,035 |
(29) |
- |
- |
- |
1,006 |
||||||||||
|
3,850 |
(13) |
- |
- |
- |
3,837 |
||||||||||
|
1,816 |
(18) |
- |
- |
- |
1,798 |
||||||||||
|
$ 9,495 |
$ (60) |
$ - |
$ - |
$ - |
$ 9,435 |
||||||||||
Organic Growth Drivers |
||||||||||||||||
Vol / Mix |
Price |
|||||||||||||||
% Change |
||||||||||||||||
|
(4.5)% |
- pp |
- pp |
- pp |
14.9pp |
10.4% |
(1.0)pp |
11.4pp |
||||||||
|
(13.3)% |
- |
- |
- |
7.2 |
(6.1)% |
(1.7) |
(4.4) |
||||||||
|
2.9% |
3.0 |
(3.1) |
- |
5.4 |
8.2% |
8.1 |
0.1 |
||||||||
|
4.8% |
0.3 |
- |
(0.5) |
(3.6) |
1.0% |
3.0 |
(2.0) |
||||||||
|
1.5% |
0.6 |
- |
- |
1.0 |
3.1% |
3.2 |
(0.1) |
||||||||
|
(0.1)% |
0.6pp |
(0.4)pp |
(0.2)pp |
2.6pp |
2.5% |
2.3pp |
0.2pp |
(1) |
Includes (a) 2013 divestitures in |
(2) |
On |
|
||||||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
||||||||||||||||||||||||||
Operating Income |
||||||||||||||||||||||||||
For the Three Months Ended |
Schedule 3 |
|||||||||||||||||||||||||
($ in millions) (Unaudited) |
||||||||||||||||||||||||||
% Change |
||||||||||||||||||||||||||
As Reported/Revised (GAAP) |
Integration Program and other Acquisition Integration costs (1) |
Spin-Off Costs and Related Adjustments (2) |
2012-2014 Restructuring Program costs (3) |
Operating Income from Divestitures |
Gains on Divestitures, net |
Acquisition-related costs |
As Adjusted (Non-GAAP) |
Impact of Currency |
As Adjusted Constant FX (Non-GAAP) |
As Reported (GAAP) |
As Adjusted (Non-GAAP) |
As Adjusted Constant FX (Non-GAAP) |
||||||||||||||
2013 |
||||||||||||||||||||||||||
|
$ 145 |
$ 25 |
$ - |
$ 12 |
$ - |
$ - |
$ - |
$ 182 |
$ 44 |
$ 226 |
(31.9)% |
(19.1)% |
0.4% |
|||||||||||||
|
113 |
19 |
- |
2 |
- |
- |
- |
134 |
20 |
154 |
(14.4)% |
(10.1)% |
3.4% |
|||||||||||||
|
97 |
20 |
- |
7 |
- |
- |
- |
124 |
7 |
131 |
(19.2)% |
1.6% |
7.4% |
|||||||||||||
|
521 |
46 |
- |
62 |
- |
- |
- |
629 |
(19) |
610 |
14.5% |
27.1% |
23.2% |
|||||||||||||
|
246 |
- |
- |
85 |
(1) |
- |
- |
330 |
1 |
331 |
14.4% |
27.4% |
27.8% |
|||||||||||||
Unrealized G/(L) on Hedging Activities |
7 |
- |
- |
- |
- |
- |
- |
7 |
- |
7 |
100.0+% |
100.0+% |
100.0+% |
|||||||||||||
General corporate expenses |
(68) |
- |
29 |
- |
(1) |
- |
- |
(40) |
- |
(40) |
63.6% |
65.8% |
65.8% |
|||||||||||||
Amortization of intangibles |
(53) |
- |
- |
- |
- |
- |
- |
(53) |
(1) |
(54) |
1.9% |
1.9% |
- |
|||||||||||||
Benefit from indemnification resolution |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|||||||||||||
Gains on divestitures, net |
2 |
- |
- |
- |
- |
(2) |
- |
- |
- |
- |
(98.1)% |
- |
- |
|||||||||||||
Acquisition-related costs |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
100.0% |
- |
- |
|||||||||||||
|
$ 1,010 |
$ 110 |
$ 29 |
$ 168 |
$ (2) |
$ (2) |
$ - |
$ 1,313 |
$ 52 |
$ 1,365 |
5.3% |
26.5% |
31.5% |
|||||||||||||
2012 |
||||||||||||||||||||||||||
|
$ 213 |
$ 10 |
$ 2 |
$ - |
$ - |
$ - |
$ - |
$ 225 |
$ - |
$ 225 |
||||||||||||||||
|
132 |
17 |
- |
- |
- |
- |
- |
149 |
- |
149 |
||||||||||||||||
|
120 |
7 |
- |
- |
(5) |
- |
- |
122 |
- |
122 |
||||||||||||||||
|
455 |
38 |
1 |
6 |
(5) |
- |
- |
495 |
- |
495 |
||||||||||||||||
|
215 |
2 |
9 |
37 |
(4) |
- |
- |
259 |
- |
259 |
||||||||||||||||
Unrealized G/(L) on Hedging Activities |
(41) |
- |
- |
- |
- |
- |
- |
(41) |
- |
(41) |
||||||||||||||||
General corporate expenses |
(187) |
2 |
67 |
(2) |
3 |
- |
- |
(117) |
- |
(117) |
||||||||||||||||
Amortization of intangibles |
(54) |
- |
- |
- |
- |
- |
- |
(54) |
- |
(54) |
||||||||||||||||
Benefit from indemnification resolution |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||
Gains on divestitures, net |
107 |
- |
- |
- |
- |
(107) |
- |
- |
- |
- |
||||||||||||||||
Acquisition-related costs |
(1) |
- |
- |
- |
- |
- |
1 |
- |
- |
- |
||||||||||||||||
|
$ 959 |
$ 76 |
$ 79 |
$ 41 |
$ (11) |
$ (107) |
$ 1 |
$ 1,038 |
$ - |
$ 1,038 |
||||||||||||||||
(1) |
Integration Program costs are defined as the costs associated with combining the |
(2) |
Spin-Off Costs represent transaction and transition costs associated with preparing the businesses for independent operations consisting primarily of financial advisory fees, legal fees, accounting fees, tax services and information systems infrastructure duplication, and financing and related costs to redistribute debt and secure investment grade ratings for both the Kraft Foods Group business and the |
(3) |
Restructuring Program costs represent restructuring and related implementation costs reflecting primarily severance, asset disposals and other manufacturing-related costs. |
|
||||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
||||||||||||||||||||||||
Condensed Consolidated Statements of Earnings |
||||||||||||||||||||||||
For the Three Months Ended |
Schedule 4 |
|||||||||||||||||||||||
(in millions of dollars, except per share data) (Unaudited) |
||||||||||||||||||||||||
As Reported/Revised (GAAP) |
Integration Program and other Acquisition Integration costs (1) |
Spin-Off Costs (2) |
Spin-Off Interest Adjustment (2) |
2012-2014 Restructuring Program Costs (3) |
Loss on Debt Extinguishment and related expenses (4) |
Residual Tax Associated with Starbucks Arbitration |
Net Earnings from Divestitures |
Gains on Divestitures, net |
Acquisition-related costs |
As Adjusted (Non-GAAP) |
||||||||||||||
2013 |
||||||||||||||||||||||||
Operating income |
$ 1,010 |
$ 110 |
$ 29 |
$ - |
$ 168 |
$ - |
$ - |
$ (2) |
$ (2) |
$ - |
$ 1,313 |
|||||||||||||
Operating income margin |
10.6% |
13.9% |
||||||||||||||||||||||
Interest and other expense, net |
847 |
- |
- |
- |
- |
(612) |
- |
- |
- |
- |
235 |
|||||||||||||
Earnings from continuing operations before income taxes |
163 |
110 |
29 |
- |
168 |
612 |
- |
(2) |
(2) |
- |
1,078 |
|||||||||||||
Provision for income taxes |
(7) |
23 |
13 |
- |
40 |
224 |
36 |
- |
- |
- |
329 |
|||||||||||||
Effective tax rate |
(4.3)% |
30.5% |
||||||||||||||||||||||
Earnings from continuing operations |
170 |
87 |
16 |
- |
128 |
388 |
(36) |
(2) |
(2) |
- |
749 |
|||||||||||||
Noncontrolling interest |
7 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
7 |
|||||||||||||
Net earnings attributable to |
$ 163 |
$ 87 |
$ 16 |
$ - |
$ 128 |
$ 388 |
$ (36) |
$ (2) |
$ (2) |
$ - |
$ 742 |
|||||||||||||
Per share data: |
||||||||||||||||||||||||
Diluted earnings per share attributable to |
||||||||||||||||||||||||
- Continuing operations |
$ 0.09 |
$ 0.05 |
$ 0.01 |
$ - |
$ 0.07 |
$ 0.22 |
$ (0.02) |
$ - |
$ - |
$ - |
$ 0.42 |
|||||||||||||
Average shares outstanding: |
||||||||||||||||||||||||
Diluted |
1,761 |
|||||||||||||||||||||||
2012 |
||||||||||||||||||||||||
Operating income |
$ 959 |
$ 76 |
$ 79 |
$ - |
$ 41 |
$ - |
$ - |
$ (11) |
$ (107) |
$ 1 |
$ 1,038 |
|||||||||||||
- |
||||||||||||||||||||||||
Operating income margin |
10.1% |
11.0% |
||||||||||||||||||||||
Interest and other expense, net |
295 |
- |
10 |
(26) |
- |
- |
- |
- |
- |
- |
279 |
|||||||||||||
Earnings from continuing operations before income taxes |
664 |
76 |
69 |
26 |
41 |
- |
- |
(11) |
(107) |
1 |
759 |
|||||||||||||
Provision for income taxes |
68 |
10 |
17 |
10 |
15 |
- |
- |
(2) |
(48) |
- |
70 |
|||||||||||||
Effective tax rate |
10.2% |
9.2% |
||||||||||||||||||||||
Earnings from continuing operations |
596 |
66 |
52 |
16 |
26 |
- |
- |
(9) |
(59) |
1 |
689 |
|||||||||||||
Noncontrolling interest |
9 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
9 |
|||||||||||||
Net earnings attributable to |
$ 587 |
$ 66 |
$ 52 |
$ 16 |
$ 26 |
$ - |
$ - |
$ (9) |
$ (59) |
$ 1 |
$ 680 |
|||||||||||||
Per share data: |
||||||||||||||||||||||||
Diluted earnings per share attributable to |
||||||||||||||||||||||||
- Continuing operations |
$ 0.33 |
$ 0.04 |
$ 0.03 |
$ 0.01 |
$ 0.01 |
$ - |
$ - |
$ (0.01) |
$ (0.03) |
$ - |
$ 0.38 |
|||||||||||||
Average shares outstanding: |
||||||||||||||||||||||||
Diluted |
1,793 |
|||||||||||||||||||||||
(1) |
Integration Program costs are defined as the costs associated with combining the |
(2) |
Spin-Off Costs represent transaction and transition costs associated with preparing the businesses for independent operations consisting primarily of financial advisory fees, legal fees, accounting fees, tax services and information systems infrastructure duplication, and financing and related costs to redistribute debt and secure investment grade ratings for both the Kraft Foods Group business and the |
(3) |
Restructuring Program costs represent restructuring and related implementation costs reflecting primarily severance, asset disposals and other manufacturing-related costs. |
(4) |
On |
|
|||||||||||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
|||||||||||||||||||||||||||||||
Operating Income |
|||||||||||||||||||||||||||||||
For the Three Months Ended |
Schedule 5 |
||||||||||||||||||||||||||||||
($ in millions, except percentages) (Unaudited) |
|||||||||||||||||||||||||||||||
2013 |
2012 |
||||||||||||||||||||||||||||||
As Reported (GAAP) |
Integration Program and other Acquisition Integration costs (1) |
Spin-Off Costs and Related Adjustments (2) |
2012-2014 Restructuring Program costs (3) |
Operating Income from Divestitures |
Gains on Divestitures, net |
As Adjusted (Non-GAAP) |
As Revised (GAAP) |
Integration Program and other Acquisition Integration costs (1) |
Spin-Off Costs and Related Adjustments (2) |
2012-2014 Restructuring Program costs (3) |
Operating Income from Divestitures |
Gains on Divestitures, net |
Acquisition-related costs |
As Adjusted (Non-GAAP) |
|||||||||||||||||
|
|||||||||||||||||||||||||||||||
Operating Income |
$ 1,010 |
$ 110 |
$ 29 |
$ 168 |
$ (2) |
$ (2) |
$ 1,313 |
$ 959 |
$ 76 |
$ 79 |
$ 41 |
$ (11) |
$ (107) |
$ 1 |
$ 1,038 |
||||||||||||||||
Growth vs. Prior Year |
5.3% |
26.5% |
|||||||||||||||||||||||||||||
Operating Income Margin |
10.6% |
13.9% |
10.1% |
11.0% |
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Segment Operating Income |
$ 145 |
$ 25 |
$ - |
$ 12 |
$ - |
$ - |
$ 182 |
$ 213 |
$ 10 |
$ 2 |
$ - |
$ - |
$ - |
$ - |
$ 225 |
||||||||||||||||
Growth vs. Prior Year |
(31.9)% |
(19.1)% |
|||||||||||||||||||||||||||||
Segment Operating Income Margin |
10.8% |
13.6% |
15.2% |
16.1% |
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Segment Operating Income |
$ 113 |
$ 19 |
$ - |
$ 2 |
$ - |
$ - |
$ 134 |
$ 132 |
$ 17 |
$ - |
$ - |
$ - |
$ - |
$ - |
$ 149 |
||||||||||||||||
Growth vs. Prior Year |
(14.4)% |
(10.1)% |
|||||||||||||||||||||||||||||
Segment Operating Income Margin |
9.3% |
11.1% |
9.5% |
10.7% |
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Segment Operating Income |
$ 97 |
$ 20 |
$ - |
$ 7 |
$ - |
$ - |
$ 124 |
$ 120 |
$ 7 |
$ - |
$ - |
$ (5) |
$ - |
$ - |
$ 122 |
||||||||||||||||
Growth vs. Prior Year |
(19.2)% |
1.6% |
|||||||||||||||||||||||||||||
Segment Operating Income Margin |
9.1% |
11.6% |
11.6% |
12.1% |
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Segment Operating Income |
$ 521 |
$ 46 |
$ - |
$ 62 |
$ - |
$ - |
$ 629 |
$ 455 |
$ 38 |
$ 1 |
$ 6 |
$ (5) |
$ - |
$ - |
$ 495 |
||||||||||||||||
Growth vs. Prior Year |
14.5% |
27.1% |
|||||||||||||||||||||||||||||
Segment Operating Income Margin |
12.9% |
15.6% |
11.8% |
12.9% |
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
Segment Operating Income |
$ 246 |
$ - |
$ - |
$ 85 |
$ (1) |
$ - |
$ 330 |
$ 215 |
$ 2 |
$ 9 |
$ 37 |
$ (4) |
$ - |
$ - |
$ 259 |
||||||||||||||||
Growth vs. Prior Year |
14.4% |
27.4% |
|||||||||||||||||||||||||||||
Segment Operating Income Margin |
13.3% |
18.0% |
11.8% |
14.4% |
|||||||||||||||||||||||||||
(1) |
Integration Program costs are defined as the costs associated with combining the |
(2) |
Spin-Off Costs represent transaction and transition costs associated with preparing the businesses for independent operations consisting primarily of financial advisory fees, legal fees, accounting fees, tax services and information systems infrastructure duplication, and financing and related costs to redistribute debt and secure investment grade ratings for both the Kraft Foods Group business and the |
(3) |
Restructuring Program costs represent restructuring and related implementation costs reflecting primarily severance, asset disposals and other manufacturing-related costs. |
|
|||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
|||||||||||||||||||||||
Gross Profit |
|||||||||||||||||||||||
For the Three Months Ended |
Schedule 6 |
||||||||||||||||||||||
($ in millions) (Unaudited) |
|||||||||||||||||||||||
% Growth |
|||||||||||||||||||||||
As Reported/Revised (GAAP) |
Integration Program and other Acquisition Integration costs (1) |
Spin-Off Costs and Related Adjustments (2) |
2012-2014 Restructuring Program costs (3) |
Impact of Divestitures |
As Adjusted (Non-GAAP) |
Impact of Currency |
As Adjusted Constant FX (Non-GAAP) |
As Reported (GAAP) |
As Adjusted (Non-GAAP) |
As Adjusted Constant FX (Non-GAAP) |
|||||||||||||
2013 |
|||||||||||||||||||||||
Net Revenues |
|
$ - |
$ - |
$ - |
$ (10) |
$ 9,478 |
|||||||||||||||||
Gross Profit |
|
$ 20 |
$ - |
$ 8 |
$ (3) |
$ 3,518 |
$ 78 |
$ 3,596 |
(1.6)% |
(0.9)% |
1.3% |
||||||||||||
Gross Profit Margin |
36.8% |
37.1% |
|||||||||||||||||||||
2012 |
|||||||||||||||||||||||
Net Revenues |
|
$ - |
$ - |
$ - |
$ (60) |
$ 9,435 |
|||||||||||||||||
Gross Profit |
|
$ 14 |
$ - |
$ 2 |
$ (17) |
$ 3,549 |
|||||||||||||||||
Gross Profit Margin |
37.4% |
37.6% |
|||||||||||||||||||||
(1) |
Integration Program costs are defined as the costs associated with combining the |
(2) |
Spin-Off Costs represent transaction and transition costs associated with preparing the businesses for independent operations consisting primarily of financial advisory fees, legal fees, accounting fees, tax services and information systems infrastructure duplication, and financing and related costs to redistribute debt and secure investment grade ratings for both the Kraft Foods Group business and the |
(3) |
Restructuring Program costs represent restructuring and related implementation costs reflecting primarily severance, asset disposals and other manufacturing-related costs. |
|
|||||
Reconciliation of GAAP to Non-GAAP Measures |
|||||
Diluted EPS |
Schedule 7 |
||||
(Unaudited) |
|||||
Diluted EPS |
% Growth |
||||
Diluted EPS Attributable to |
|||||
Months Ended |
$ 0.32 |
||||
Discontinued operations, net of income taxes |
(0.01) |
||||
Diluted EPS Attributable to |
|||||
operations for the Three Months Ended |
0.33 |
||||
Integration Program and other acquisition integration costs (1) |
0.04 |
||||
Spin-Off Costs (2) |
0.03 |
||||
Spin-Off related adjustments (3) |
0.01 |
||||
2012-2014 Restructuring Program costs (4) |
0.01 |
||||
Gains on acquisition and divestitures, net |
(0.03) |
||||
Net earnings from divestitures |
(0.01) |
||||
Adjusted EPS for the Three Months Ended |
|||||
|
0.38 |
||||
Increase in operations |
0.08 |
||||
Gains on sales of property in 2013 |
0.03 |
||||
Intangible asset impairment charge |
0.01 |
||||
Unrealized gains/(losses) on hedging activities |
0.02 |
||||
Lower interest expense and other expense, net |
0.02 |
||||
Changes in shares outstanding |
0.01 |
||||
Changes in income taxes |
(0.11) |
||||
Adjusted EPS for the Three Months Ended |
|||||
|
0.44 |
15.8% |
|||
Unfavorable foreign currency - translation (5) |
(0.02) |
||||
Adjusted EPS for the Three Months Ended |
|||||
|
0.42 |
10.5% |
|||
Integration Program and other acquisition integration costs (1) |
(0.05) |
||||
Spin-Off Costs (2) |
(0.01) |
||||
2012-2014 Restructuring Program costs (4) |
(0.07) |
||||
Loss on debt extinguishment and related expenses(6) |
(0.22) |
||||
Residual tax impact associated with Starbucks arbitration resolution |
0.02 |
||||
Acquisition-related costs |
- |
||||
Diluted EPS Attributable to |
|||||
operations for the Three Months Ended |
0.09 |
(72.7)% |
|||
Discontinued operations, net of income taxes |
0.91 |
||||
Diluted EPS Attributable to |
|||||
Months Ended |
$ 1.00 |
100.0+% |
|||
(1) |
Integration Program costs are defined as the costs associated with combining the |
(2) |
Spin-Off Costs represent transaction and transition costs associated with preparing the businesses for independent operations consisting primarily of financial advisory fees, legal fees, accounting fees, tax services and information systems infrastructure duplication, and financing and related costs to redistribute debt and secure investment grade ratings for both the Kraft Foods Group business and the |
(3) |
Spin-Off related adjustments include; (a) pension adjustment defined as the estimated benefit plan expense associated with certain benefit plan obligations transferred to Kraft Foods Group in the Spin-Off; and (b) interest adjustment defined as the interest expense associated with the assumed reduction of the |
(4) |
Restructuring Program costs represent restructuring and related implementation costs reflecting primarily severance, asset disposals and other manufacturing-related costs. Restructuring Program costs for the three months ended |
(5) |
Includes the favorable foreign currency impact on |
(6) |
On |
|
|||||||
Condensed Consolidated Statements of Earnings |
|||||||
For the Twelve Months Ended |
Schedule 8 |
||||||
(in millions of dollars, except per share data) (Unaudited) |
|||||||
As Reported/Revised (GAAP) |
|||||||
2013 |
2012 |
% Change Fav / (Unfav) |
|||||
Net revenues |
|
|
0.8% |
||||
Cost of sales |
22,189 |
21,939 |
(1.1)% |
||||
Gross profit |
13,110 |
13,076 |
0.3% |
||||
Gross profit margin |
37.1% |
37.3% |
|||||
Selling, general and administrative expenses |
8,679 |
9,176 |
5.4% |
||||
Asset impairment and exit costs |
273 |
153 |
(78.4)% |
||||
Gains on acquisition and divestitures, net |
(30) |
(107) |
(100.0)% |
||||
Amortization of intangibles |
217 |
217 |
- |
||||
Operating income |
3,971 |
3,637 |
9.2% |
||||
Operating income margin |
11.2% |
10.4% |
|||||
Interest and other expense, net |
1,579 |
1,863 |
15.2% |
||||
Earnings from continuing operations before income taxes |
2,392 |
1,774 |
34.8% |
||||
Provision / (benefit) for income taxes |
60 |
168 |
64.3% |
||||
Effective tax rate |
2.5% |
9.5% |
|||||
Earnings from continuing operations |
$ 2,332 |
$ 1,606 |
45.2% |
||||
Earnings from discontinued operations, net of income taxes |
1,603 |
1,488 |
7.7% |
||||
Net earnings |
$ 3,935 |
$ 3,094 |
27.2% |
||||
Noncontrolling interest |
20 |
27 |
25.9% |
||||
Net earnings attributable to |
$ 3,915 |
$ 3,067 |
27.7% |
||||
Per share data: |
|||||||
Basic earnings per share attributable to |
|||||||
- Continuing operations |
$ 1.30 |
$ 0.90 |
44.4% |
||||
- Discontinued operations |
0.91 |
0.83 |
9.6% |
||||
Net earnings attributable to |
$ 2.21 |
$ 1.73 |
27.7% |
||||
Diluted earnings per share attributable to |
|||||||
- Continuing operations |
$ 1.29 |
$ 0.88 |
46.6% |
||||
- Discontinued operations |
0.90 |
0.83 |
8.4% |
||||
Net earnings attributable to |
$ 2.19 |
$ 1.71 |
28.1% |
||||
Average shares outstanding: |
|||||||
Basic |
1,774 |
1,777 |
0.2% |
||||
Diluted |
1,789 |
1,789 |
- |
||||
|
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
||||||||||||||||
Net Revenues |
||||||||||||||||
For the Twelve Months Ended |
Schedule 9 |
|||||||||||||||
($ in millions) (Unaudited) |
||||||||||||||||
As Reported/Revised (GAAP) |
Impact of Divestitures (1) |
Impact of Acquisitions (2) |
Impact of Accounting Calendar Changes |
Impact of Currency |
Organic (Non-GAAP) |
|||||||||||
2013 |
||||||||||||||||
|
$ 5,382 |
$ - |
$ - |
$ - |
$ 678 |
$ 6,060 |
||||||||||
|
4,952 |
- |
- |
- |
245 |
5,197 |
||||||||||
|
3,915 |
(20) |
(93) |
- |
171 |
3,973 |
||||||||||
|
14,059 |
(11) |
- |
(38) |
(289) |
13,721 |
||||||||||
|
6,991 |
(39) |
- |
- |
35 |
6,987 |
||||||||||
|
$ 35,299 |
$ (70) |
$ (93) |
$ (38) |
$ 840 |
$ 35,938 |
||||||||||
2012 |
||||||||||||||||
|
$ 5,396 |
$ - |
$ - |
$ - |
$ - |
$ 5,396 |
||||||||||
|
5,164 |
- |
- |
- |
- |
5,164 |
||||||||||
|
3,735 |
(96) |
- |
- |
- |
3,639 |
||||||||||
|
13,817 |
(209) |
- |
- |
- |
13,608 |
||||||||||
|
6,903 |
(110) |
- |
- |
- |
6,793 |
||||||||||
|
$ 35,015 |
$ (415) |
$ - |
$ - |
$ - |
$ 34,600 |
||||||||||
Organic Growth Drivers |
||||||||||||||||
Vol / Mix |
Price |
|||||||||||||||
% Change |
||||||||||||||||
|
(0.3)% |
- pp |
- pp |
- pp |
12.6pp |
12.3% |
0.9pp |
11.4pp |
||||||||
|
(4.1)% |
- |
- |
- |
4.7 |
0.6% |
2.5 |
(1.9) |
||||||||
|
4.8% |
2.2 |
(2.5) |
- |
4.7 |
9.2% |
11.0 |
(1.8) |
||||||||
|
1.8% |
1.4 |
- |
(0.3) |
(2.1) |
0.8% |
3.2 |
(2.4) |
||||||||
|
1.3% |
1.0 |
- |
- |
0.6 |
2.9% |
2.5 |
0.4 |
||||||||
|
0.8% |
1.0pp |
(0.2)pp |
(0.1)pp |
2.4pp |
3.9% |
3.4pp |
0.5pp |
||||||||
(1) |
Includes (a) 2013 divestitures in |
(2) |
On |
|
||||||||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
||||||||||||||||||||||||||||
Operating Income |
||||||||||||||||||||||||||||
For the Twelve Months Ended |
Schedule 10 |
|||||||||||||||||||||||||||
($ in millions) (Unaudited) |
||||||||||||||||||||||||||||
% Change |
||||||||||||||||||||||||||||
As Reported/Revised (GAAP) |
Integration Program and other Acquisition Integration costs (1) |
Spin-Off Costs and Related Adjustments (2) |
2012-2014 Restructuring Program costs (3) |
Net Benefit from Indemnification Resolution (4) |
Operating Income from Divestitures |
Gains on Acquisition and Divestitures, net (5) |
Acquisition-related costs |
As Adjusted (Non-GAAP) |
Impact of Currency |
As Adjusted Constant FX (Non-GAAP) |
As Reported (GAAP) |
As Adjusted (Non-GAAP) |
As Adjusted Constant FX (Non-GAAP) |
|||||||||||||||
2013 |
||||||||||||||||||||||||||||
|
$ 570 |
$ 33 |
$ - |
$ 21 |
$ - |
$ - |
$ - |
$ - |
$ 624 |
$ 174 |
$ 798 |
(25.9)% |
(23.3)% |
(2.0)% |
||||||||||||||
|
512 |
41 |
- |
2 |
- |
- |
- |
- |
555 |
38 |
593 |
(22.1)% |
(22.5)% |
(17.2)% |
||||||||||||||
|
379 |
56 |
- |
14 |
- |
7 |
- |
- |
456 |
25 |
481 |
(25.1)% |
(12.0)% |
(7.1)% |
||||||||||||||
|
1,699 |
88 |
- |
131 |
- |
(2) |
- |
- |
1,916 |
(42) |
1,874 |
(3.6)% |
8.7% |
6.3% |
||||||||||||||
|
889 |
1 |
- |
160 |
- |
(11) |
- |
- |
1,039 |
4 |
1,043 |
13.8% |
11.0% |
11.4% |
||||||||||||||
Unrealized G/(L) on Hedging Activities |
62 |
- |
- |
- |
- |
- |
- |
- |
62 |
- |
62 |
100.0+% |
100.0+% |
100.0+% |
||||||||||||||
General corporate expenses (6) |
(287) |
1 |
62 |
2 |
- |
- |
- |
- |
(222) |
2 |
(220) |
60.6% |
30.0% |
30.6% |
||||||||||||||
Amortization of intangibles |
(217) |
- |
- |
- |
- |
- |
- |
- |
(217) |
(1) |
(218) |
- |
- |
(0.5)% |
||||||||||||||
Benefit from indemnification resolution |
336 |
- |
- |
- |
(336) |
- |
- |
- |
- |
- |
- |
100.0% |
- |
- |
||||||||||||||
Gains on acquisition and divestitures, net |
30 |
- |
- |
- |
- |
- |
(30) |
- |
- |
- |
- |
72.0% |
- |
- |
||||||||||||||
Acquisition-related costs |
(2) |
- |
- |
- |
- |
- |
- |
2 |
- |
- |
- |
(100.0)% |
- |
- |
||||||||||||||
|
$ 3,971 |
$ 220 |
$ 62 |
$ 330 |
$ (336) |
$ (6) |
$ (30) |
$ 2 |
$ 4,213 |
$ 200 |
$ 4,413 |
9.2% |
- |
4.7% |
||||||||||||||
2012 |
||||||||||||||||||||||||||||
|
$ 769 |
$ 30 |
$ 8 |
$ 7 |
$ - |
$ - |
$ - |
$ - |
$ 814 |
$ - |
$ 814 |
|||||||||||||||||
|
657 |
40 |
19 |
- |
- |
- |
- |
- |
716 |
- |
716 |
|||||||||||||||||
|
506 |
13 |
- |
- |
- |
(1) |
- |
- |
518 |
- |
518 |
|||||||||||||||||
|
1,762 |
47 |
1 |
6 |
- |
(53) |
- |
- |
1,763 |
- |
1,763 |
|||||||||||||||||
|
781 |
6 |
77 |
98 |
- |
(26) |
- |
- |
936 |
- |
936 |
|||||||||||||||||
Unrealized G/(L) on Hedging Activities |
1 |
- |
- |
- |
- |
- |
- |
- |
1 |
- |
1 |
|||||||||||||||||
General corporate expenses |
(728) |
4 |
407 |
(1) |
- |
1 |
- |
- |
(317) |
- |
(317) |
|||||||||||||||||
Amortization of intangibles |
(217) |
- |
- |
- |
- |
- |
- |
- |
(217) |
- |
(217) |
|||||||||||||||||
Benefit from indemnification resolution |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|||||||||||||||||
Gains on acquisition and divestitures, net |
107 |
- |
- |
- |
- |
- |
(107) |
- |
- |
- |
- |
|||||||||||||||||
Acquisition-related costs |
(1) |
- |
- |
- |
- |
- |
- |
1 |
- |
- |
- |
|||||||||||||||||
|
$ 3,637 |
$ 140 |
$ 512 |
$ 110 |
$ - |
$ (79) |
$ (107) |
$ 1 |
$ 4,214 |
$ - |
$ 4,214 |
|||||||||||||||||
(1) |
Integration Program costs are defined as the costs associated with combining the |
(2) |
Spin-Off Costs represent transaction and transition costs associated with preparing the businesses for independent operations consisting primarily of financial advisory fees, legal fees, accounting fees, tax services and information systems infrastructure duplication, and financing and related costs to redistribute debt and secure investment grade ratings for both the Kraft Foods Group business and the |
(3) |
Restructuring Program costs represent restructuring and related implementation costs reflecting primarily severance, asset disposals and other manufacturing-related costs. |
(4) |
As part of our 2010 |
(5) |
On |
(6) |
General corporate expenses include corporate functions and project expenses as well as other general corporate expenses. For the twelve months ended |
|
||||||||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
||||||||||||||||||||||||||||
Condensed Consolidated Statements of Earnings |
||||||||||||||||||||||||||||
For the Twelve Months Ended |
Schedule 11 |
|||||||||||||||||||||||||||
(in millions of dollars, except per share data) (Unaudited) |
||||||||||||||||||||||||||||
As Reported/Revised (GAAP) |
Integration Program and other Acquisition Integration costs (1) |
Spin-Off Costs (2) |
Spin-Off Pension Adjustment (2) |
Spin-Off Interest Adjustment (2) |
2012-2014 Restructuring Program Costs (3) |
Net Benefit from Indemnification Resolution (4) |
Loss on Debt Extinguishment and related expenses (5) |
Residual Tax Associated with Starbucks Arbitration |
Net Earnings from Divestitures |
Gains on Acquisition and Divestitures, net (6) |
Acquisition-related costs |
As Adjusted (Non-GAAP) |
||||||||||||||||
2013 |
||||||||||||||||||||||||||||
Operating income |
$ 3,971 |
$ 220 |
$ 62 |
$ - |
$ - |
$ 330 |
$ (336) |
$ - |
$ - |
$ (6) |
$ (30) |
$ 2 |
$ 4,213 |
|||||||||||||||
Operating income margin |
11.2% |
12.0% |
||||||||||||||||||||||||||
Interest and other expense, net |
1,579 |
- |
- |
- |
- |
- |
49 |
(612) |
- |
- |
- |
(5) |
1,011 |
|||||||||||||||
Earnings from continuing operations before income taxes |
2,392 |
220 |
62 |
- |
- |
330 |
(385) |
612 |
- |
(6) |
(30) |
7 |
3,202 |
|||||||||||||||
Provision for income taxes |
60 |
45 |
23 |
- |
- |
82 |
(22) |
224 |
36 |
(2) |
39 |
- |
485 |
|||||||||||||||
Effective tax rate |
2.5% |
15.1% |
||||||||||||||||||||||||||
Earnings from continuing operations |
2,332 |
175 |
39 |
- |
- |
248 |
(363) |
388 |
(36) |
(4) |
(69) |
7 |
2,717 |
|||||||||||||||
Noncontrolling interest |
20 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
20 |
|||||||||||||||
Net earnings attributable to |
$ 2,312 |
$ 175 |
$ 39 |
$ - |
$ - |
$ 248 |
$ (363) |
$ 388 |
$ (36) |
$ (4) |
$ (69) |
$ 7 |
$ 2,697 |
|||||||||||||||
Per share data: |
||||||||||||||||||||||||||||
Diluted earnings per share attributable to |
||||||||||||||||||||||||||||
- Continuing operations |
$ 1.29 |
$ 0.10 |
$ 0.02 |
$ - |
$ - |
$ 0.14 |
$ (0.20) |
$ 0.22 |
$ (0.02) |
$ - |
$ (0.04) |
$ - |
$ 1.51 |
|||||||||||||||
Average shares outstanding: |
||||||||||||||||||||||||||||
Diluted |
1,789 |
|||||||||||||||||||||||||||
2012 |
||||||||||||||||||||||||||||
Operating income |
$ 3,637 |
$ 140 |
$ 444 |
$ 68 |
$ - |
$ 110 |
$ - |
$ - |
$ - |
$ (79) |
$ (107) |
$ 1 |
$ 4,214 |
|||||||||||||||
Operating income margin |
10.4% |
12.2% |
||||||||||||||||||||||||||
Interest and other expense, net |
1,863 |
- |
(609) |
- |
(161) |
- |
- |
- |
- |
- |
- |
- |
1,093 |
|||||||||||||||
Earnings from continuing operations before income taxes |
1,774 |
140 |
1,053 |
68 |
161 |
110 |
- |
- |
- |
(79) |
(107) |
1 |
3,121 |
|||||||||||||||
Provision for income taxes |
168 |
6 |
347 |
26 |
60 |
40 |
- |
- |
- |
(20) |
(48) |
- |
579 |
|||||||||||||||
Effective tax rate |
9.5% |
18.6% |
||||||||||||||||||||||||||
Earnings from continuing operations |
1,606 |
134 |
706 |
42 |
101 |
70 |
- |
- |
- |
(59) |
(59) |
1 |
2,542 |
|||||||||||||||
Noncontrolling interest |
27 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
27 |
|||||||||||||||
Net earnings attributable to |
$ 1,579 |
$ 134 |
$ 706 |
$ 42 |
$ 101 |
$ 70 |
$ - |
$ - |
$ - |
$ (59) |
$ (59) |
$ 1 |
$ 2,515 |
|||||||||||||||
Per share data: |
||||||||||||||||||||||||||||
Diluted earnings per share attributable to |
||||||||||||||||||||||||||||
- Continuing operations |
$ 0.88 |
$ 0.08 |
$ 0.39 |
$ 0.02 |
$ 0.06 |
$ 0.04 |
$ - |
$ - |
$ - |
$ (0.03) |
$ (0.03) |
$ - |
$ 1.41 |
|||||||||||||||
Average shares outstanding: |
||||||||||||||||||||||||||||
Diluted |
1,789 |
|||||||||||||||||||||||||||
(1) |
Integration Program costs are defined as the costs associated with combining the |
(2) |
Spin-Off Costs represent transaction and transition costs associated with preparing the businesses for independent operations consisting primarily of financial advisory fees, legal fees, accounting fees, tax services and information systems infrastructure duplication, and financing and related costs to redistribute debt and secure investment grade ratings for both the Kraft Foods Group business and the |
(3) |
Restructuring Program costs represent restructuring and related implementation costs reflecting primarily severance, asset disposals and other manufacturing-related costs. |
(4) |
As part of our 2010 |
(5) |
On |
(6) |
On |
|
|||||||||||||||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
|||||||||||||||||||||||||||||||||||
Operating Income |
|||||||||||||||||||||||||||||||||||
For the Twelve Months Ended |
Schedule 12 |
||||||||||||||||||||||||||||||||||
($ in millions, except percentages) (Unaudited) |
|||||||||||||||||||||||||||||||||||
2013 |
2012 |
||||||||||||||||||||||||||||||||||
As Reported (GAAP) |
Integration Program and other Acquisition Integration costs (1) |
Spin-Off Costs and Related Adjustments (2) |
2012-2014 Restructuring Program costs (3) |
Net Benefit from Indemnification Resolution (4) |
Operating Income from Divestitures |
Gains on Acquisition and Divestitures, net (5) |
Acquisition-related costs |
As Adjusted (Non-GAAP) |
As Revised (GAAP) |
Integration Program and other Acquisition Integration costs (1) |
Spin-Off Costs and Related Adjustments (2) |
2012-2014 Restructuring Program costs (3) |
Operating Income from Divestitures |
Gains on Acquisition and Divestitures, net (5) |
Acquisition-related costs |
As Adjusted (Non-GAAP) |
|||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
Operating Income |
$ 3,971 |
$ 220 |
$ 62 |
$ 330 |
$ (336) |
$ (6) |
$ (30) |
$ 2 |
$ 4,213 |
$ 3,637 |
$ 140 |
$ 512 |
$ 110 |
$ (79) |
$ (107) |
$ 1 |
$ 4,214 |
||||||||||||||||||
Growth vs. Prior Year |
9.2% |
(0.0)% |
|||||||||||||||||||||||||||||||||
Operating Income Margin |
11.2% |
12.0% |
10.4% |
12.2% |
|||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
Segment Operating Income |
$ 570 |
$ 33 |
$ - |
$ 21 |
$ - |
$ - |
$ - |
$ - |
$ 624 |
$ 769 |
$ 30 |
$ 8 |
$ 7 |
$ - |
$ - |
$ - |
$ 814 |
||||||||||||||||||
Growth vs. Prior Year |
(25.9)% |
(23.3)% |
|||||||||||||||||||||||||||||||||
Segment Operating Income Margin |
10.6% |
11.6% |
14.3% |
15.1% |
|||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
Segment Operating Income |
$ 512 |
$ 41 |
$ - |
$ 2 |
$ - |
$ - |
$ - |
$ - |
$ 555 |
$ 657 |
$ 40 |
$ 19 |
$ - |
$ - |
$ - |
$ - |
$ 716 |
||||||||||||||||||
Growth vs. Prior Year |
(22.1)% |
(22.5)% |
|||||||||||||||||||||||||||||||||
Segment Operating Income Margin |
10.3% |
11.2% |
12.7% |
13.9% |
|||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
Segment Operating Income |
$ 379 |
$ 56 |
$ - |
$ 14 |
$ - |
$ 7 |
$ - |
$ - |
$ 456 |
$ 506 |
$ 13 |
$ - |
$ - |
$ (1) |
$ - |
$ - |
$ 518 |
||||||||||||||||||
Growth vs. Prior Year |
(25.1)% |
(12.0)% |
|||||||||||||||||||||||||||||||||
Segment Operating Income Margin |
9.7% |
11.7% |
13.5% |
14.2% |
|||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
Segment Operating Income |
$ 1,699 |
$ 88 |
$ - |
$ 131 |
$ - |
$ (2) |
$ - |
$ - |
$ 1,916 |
$ 1,762 |
$ 47 |
$ 1 |
$ 6 |
$ (53) |
$ - |
$ - |
$ 1,763 |
||||||||||||||||||
Growth vs. Prior Year |
(3.6)% |
8.7% |
|||||||||||||||||||||||||||||||||
Segment Operating Income Margin |
12.1% |
13.6% |
12.8% |
13.0% |
|||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
Segment Operating Income |
$ 889 |
$ 1 |
$ - |
$ 160 |
$ - |
$ (11) |
$ - |
$ - |
$ 1,039 |
$ 781 |
$ 6 |
$ 77 |
$ 98 |
$ (26) |
$ - |
$ - |
$ 936 |
||||||||||||||||||
Growth vs. Prior Year |
13.8% |
11.0% |
|||||||||||||||||||||||||||||||||
Segment Operating Income Margin |
12.7% |
14.9% |
11.3% |
13.8% |
|||||||||||||||||||||||||||||||
(1) |
Integration Program costs are defined as the costs associated with combining the |
(2) |
Spin-Off Costs represent transaction and transition costs associated with preparing the businesses for independent operations consisting primarily of financial advisory fees, legal fees, accounting fees, tax services and information systems infrastructure duplication, and financing and related costs to redistribute debt and secure investment grade ratings for both the Kraft Foods Group business and the |
(3) |
Restructuring Program costs represent restructuring and related implementation costs reflecting primarily severance, asset disposals and other manufacturing-related costs. |
(4) |
As part of our 2010 |
(5) |
On |
|
||||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
||||||||||||||||||||||||
Gross Profit |
||||||||||||||||||||||||
For the Twelve Months Ended |
Schedule 13 |
|||||||||||||||||||||||
($ in millions) (Unaudited) |
||||||||||||||||||||||||
% Growth |
||||||||||||||||||||||||
As Reported/Revised (GAAP) |
Integration Program and other Acquisition Integration costs (1) |
Spin-Off Costs and Related Adjustments (2) |
2012-2014 Restructuring Program costs (3) |
Impact of Divestitures |
As Adjusted (Non-GAAP) |
Impact of Currency |
As Adjusted Constant FX (Non-GAAP) |
As Reported (GAAP) |
As Adjusted (Non-GAAP) |
As Adjusted Constant FX (Non-GAAP) |
||||||||||||||
2013 |
||||||||||||||||||||||||
Net Revenues |
|
$ - |
$ - |
$ - |
$ (70) |
$ 35,229 |
||||||||||||||||||
Gross Profit |
|
$ 58 |
$ - |
$ 10 |
$ (18) |
$ 13,160 |
|
$ 13,446 |
0.3% |
1.0% |
3.2% |
|||||||||||||
Gross Profit Margin |
37.1% |
37.4% |
||||||||||||||||||||||
2012 |
||||||||||||||||||||||||
Net Revenues |
|
$ - |
$ - |
$ - |
$ (415) |
$ 34,600 |
||||||||||||||||||
Gross Profit |
|
$ 28 |
$ 33 |
$ 2 |
$ (115) |
$ 13,024 |
||||||||||||||||||
Gross Profit Margin |
37.3% |
37.6% |
||||||||||||||||||||||
(1) |
Integration Program costs are defined as the costs associated with combining the |
(2) |
Spin-Off Costs represent transaction and transition costs associated with preparing the businesses for independent operations consisting primarily of financial advisory fees, legal fees, accounting fees, tax services and information systems infrastructure duplication, and financing and related costs to redistribute debt and secure investment grade ratings for both the Kraft Foods Group business and the |
(3) |
Restructuring Program costs represent restructuring and related implementation costs reflecting primarily severance, asset disposals and other manufacturing-related costs. |
|
|||||
Reconciliation of GAAP to Non-GAAP Measures |
|||||
Diluted EPS |
Schedule 14 |
||||
(Unaudited) |
|||||
Diluted EPS |
% Growth |
||||
Diluted EPS Attributable to |
|||||
Months Ended |
$ 1.71 |
||||
Discontinued operations, net of income taxes |
0.83 |
||||
Diluted EPS Attributable to |
|||||
operations for the Twelve Months Ended |
0.88 |
||||
Integration Program and other acquisition integration costs (1) |
0.08 |
||||
Spin-Off Costs (2) |
0.39 |
||||
Spin-Off related adjustments (3) |
0.08 |
||||
2012-2014 Restructuring Program costs (4) |
0.04 |
||||
Gains on acquisition and divestitures, net |
(0.03) |
||||
Net earnings from divestitures |
(0.03) |
||||
Adjusted EPS for the Twelve Months Ended |
|||||
|
1.41 |
||||
Increase in operations |
0.04 |
||||
Gains on sales of property in 2013 |
0.03 |
||||
Gains on sales of property in 2012 |
(0.03) |
||||
Intangible asset impairment charge in 2012 |
0.02 |
||||
Unrealized gains/(losses) on hedging activities |
0.03 |
||||
Lower interest and other expense, net |
0.03 |
||||
Changes in shares outstanding |
- |
||||
Changes in income taxes |
0.07 |
||||
Adjusted EPS for the Twelve Months Ended |
|||||
|
1.60 |
13.5% |
|||
Unfavorable foreign currency - translation (5) |
(0.06) |
||||
Unfavorable foreign currency - |
(0.03) |
||||
Adjusted EPS for the Twelve Months Ended |
|||||
|
1.51 |
7.1% |
|||
Integration Program and other acquisition integration costs (1) |
(0.10) |
||||
Spin-Off Costs (2) |
(0.02) |
||||
2012-2014 Restructuring Program costs (4) |
(0.14) |
||||
Net earnings from divestitures |
- |
||||
Net Benefit from Indemnification Resolution (6) |
0.20 |
||||
Loss on debt extinguishment and related expenses (7) |
(0.22) |
||||
Residual tax impact associated with Starbucks arbitration resolution |
0.02 |
||||
Gains on acquisition and divestitures, net (8) |
0.04 |
||||
Acquisition-related costs |
- |
||||
Diluted EPS Attributable to |
|||||
operations for the Twelve Months Ended |
1.29 |
46.6% |
|||
Discontinued operations, net of income taxes |
0.90 |
||||
Diluted EPS Attributable to |
|||||
Months Ended |
$ 2.19 |
28.1% |
|||
(1) |
Integration Program costs are defined as the costs associated with combining the |
(2) |
Spin-Off Costs represent transaction and transition costs associated with preparing the businesses for independent operations consisting primarily of financial advisory fees, legal fees, accounting fees, tax services and information systems infrastructure duplication, and financing and related costs to redistribute debt and secure investment grade ratings for both the Kraft Foods Group business and the |
(3) |
Spin-Off related adjustments include; (a) pension adjustment defined as the estimated benefit plan expense associated with certain benefit plan obligations transferred to Kraft Foods Group in the Spin-Off; and (b) interest adjustment defined as the interest expense associated with the assumed reduction of the |
(4) |
Restructuring Program costs represent restructuring and related implementation costs reflecting primarily severance, asset disposals and other manufacturing-related costs. Restructuring Program costs for the twelve months ended |
(5) |
Includes the favorable foreign currency impact on |
(6) |
As part of our 2010 |
(7) |
On |
(8) |
On |
|
|
Reconciliation of GAAP to Non-GAAP Measures |
|
Net Cash Provided by Operating Activities to Free Cash Flow excluding items |
|
For the Twelve Months Ended |
Schedule 15 |
($ in millions) (Unaudited) |
|
Net Cash Provided by Operating Activities (GAAP) |
$ 6,410 |
Capital Expenditures |
(1,622) |
Free |
$ 4,788 |
Items |
|
Cash impact of the resolution of the Starbucks arbitration (1) |
(2,616) |
Cash payments for accrued interest and other related fees associated with debt tendered as of |
81 |
Free |
$ 2,253 |
(1) |
During the fourth quarter of 2013, the dispute with |
(2) |
On |
|
|||||||||
Select Balance Sheet Items |
|||||||||
($ in millions) (Unaudited) |
Schedule 16 |
||||||||
Working Capital Items |
Cash and Debt |
||||||||
|
|
|
|
||||||
2013 |
2012 |
2013 |
2012 |
||||||
Receivables, net |
$ 5,403 |
$ 6,129 |
Short-term borrowings |
$ 1,636 |
$ 274 |
||||
Inventories, net |
3,743 |
3,741 |
Current portion of long-term debt |
1,003 |
3,577 |
||||
Accounts payable |
5,345 |
4,642 |
Long-term debt |
14,482 |
15,574 |
||||
Total Debt |
$ 17,121 |
$ 19,425 |
|||||||
Net Working |
|||||||||
Capital Items |
$ 3,801 |
$ 5,228 |
Cash and cash equivalents |
2,664 |
4,475 |
||||
Net Debt (1) |
$ 14,457 |
$ 14,950 |
|||||||
(1) |
Net debt is defined as total debt, which includes short-term borrowings, current portion of long-term debt and long-term debt, less cash and cash equivalents. |
|
|||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
|||||||||||||||||||||
Condensed Consolidated Statements of Earnings |
|||||||||||||||||||||
For the Three Months Ended |
Schedule 17 |
||||||||||||||||||||
(in millions of dollars, except per share data) (Unaudited) |
|||||||||||||||||||||
As Reported (GAAP) |
Prior Period Tax Revisions |
As Revised (GAAP) |
Integration Program and other Acquisition Integration costs (1) |
Spin-Off Costs (2) |
2012-2014 Restructuring Program Costs (3) |
Net Earnings from Divestitures |
Gain on Acquisition (4) |
Acquisition-related costs |
As Adjusted (Non-GAAP) |
||||||||||||
Operating income |
$ 834 |
$ - |
$ 834 |
$ 21 |
$ 9 |
$ 44 |
$ 1 |
$ (22) |
$ 2 |
$ 889 |
|||||||||||
Operating income margin |
9.5% |
9.5% |
10.2% |
||||||||||||||||||
Interest and other expense, net |
279 |
- |
279 |
- |
- |
- |
- |
- |
(5) |
274 |
|||||||||||
Earnings from continuing operations before income taxes |
555 |
- |
555 |
21 |
9 |
44 |
1 |
(22) |
7 |
615 |
|||||||||||
Provision for income taxes |
(19) |
32 |
13 |
4 |
4 |
11 |
- |
- |
- |
32 |
|||||||||||
Effective tax rate |
(3.4)% |
2.3% |
5.2% |
||||||||||||||||||
Earnings from continuing operations |
574 |
(32) |
542 |
17 |
5 |
33 |
1 |
(22) |
7 |
583 |
|||||||||||
Noncontrolling interest |
6 |
- |
6 |
- |
- |
- |
- |
- |
- |
6 |
|||||||||||
Net earnings attributable to |
$ 568 |
$ (32) |
$ 536 |
$ 17 |
$ 5 |
$ 33 |
$ 1 |
$ (22) |
$ 7 |
$ 577 |
|||||||||||
Per share data: |
|||||||||||||||||||||
Diluted earnings per share attributable to |
|||||||||||||||||||||
- Continuing operations |
$ 0.32 |
$ (0.02) |
$ 0.30 |
$ 0.01 |
$ - |
$ 0.02 |
$ - |
$ (0.01) |
$ - |
$ 0.32 |
|||||||||||
Average shares outstanding: |
|||||||||||||||||||||
Diluted |
1,798 |
1,798 |
|||||||||||||||||||
(1) |
Integration Program costs are defined as the costs associated with combining the |
(2) |
Spin-Off Costs represent transaction and transition costs associated with preparing the businesses for independent operations consisting primarily of financial advisory fees, legal fees, accounting fees, tax services and information systems infrastructure duplication, and financing and related costs to redistribute debt and secure investment grade ratings for both the Kraft Foods Group business and the |
(3) |
Restructuring Program costs represent restructuring and related implementation costs reflecting primarily severance, asset disposals and other manufacturing-related costs. |
(4) |
On |
|
|||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
|||||||||||||||||||
Condensed Consolidated Statements of Earnings |
|||||||||||||||||||
For the Three Months Ended |
Schedule 18 |
||||||||||||||||||
(in millions of dollars, except per share data) (Unaudited) |
|||||||||||||||||||
As Reported (GAAP) |
Prior Period Tax Revisions |
As Revised (GAAP) |
Integration Program and other Acquisition Integration costs (1) |
Spin-Off Costs (2) |
2012-2014 Restructuring Program Costs (3) |
Net Earnings from Divestitures |
Gains on Divestitures, net (4) |
As Adjusted (Non-GAAP) |
|||||||||||
Operating income |
$ 865 |
$ - |
$ 865 |
$ 53 |
$ 15 |
$ 55 |
$ (3) |
$ (6) |
$ 979 |
||||||||||
Operating income margin |
10.1% |
10.1% |
11.4% |
||||||||||||||||
Interest and other expense, net |
235 |
- |
235 |
- |
- |
- |
- |
- |
235 |
||||||||||
Earnings from continuing operations before income taxes |
630 |
- |
630 |
53 |
15 |
55 |
(3) |
(6) |
744 |
||||||||||
Provision for income taxes |
13 |
15 |
28 |
11 |
(1) |
15 |
(1) |
39 |
91 |
||||||||||
Effective tax rate |
2.1% |
4.4% |
12.2% |
||||||||||||||||
Earnings from continuing operations |
617 |
(15) |
602 |
42 |
16 |
40 |
(2) |
(45) |
653 |
||||||||||
Noncontrolling interest |
1 |
- |
1 |
- |
- |
- |
- |
- |
1 |
||||||||||
Net earnings attributable to |
$ 616 |
$ (15) |
$ 601 |
$ 42 |
$ 16 |
$ 40 |
$ (2) |
$ (45) |
$ 652 |
||||||||||
Per share data: |
|||||||||||||||||||
Diluted earnings per share attributable to |
|||||||||||||||||||
- Continuing operations |
$ 0.34 |
$ (0.01) |
$ 0.33 |
$ 0.02 |
$ 0.01 |
$ 0.02 |
$ - |
$ (0.02) |
$ 0.36 |
||||||||||
Average shares outstanding: |
|||||||||||||||||||
Diluted |
1,803 |
1,803 |
|||||||||||||||||
(1) |
Integration Program costs are defined as the costs associated with combining the |
(2) |
Spin-Off Costs represent transaction and transition costs associated with preparing the businesses for independent operations consisting primarily of financial advisory fees, legal fees, accounting fees, tax services and information systems infrastructure duplication, and financing and related costs to redistribute debt and secure investment grade ratings for both the Kraft Foods Group business and the |
(3) |
Restructuring Program costs represent restructuring and related implementation costs reflecting primarily severance, asset disposals and other manufacturing-related costs. |
(4) |
During the three months ended |
|
|||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
|||||||||||||||||||
Condensed Consolidated Statements of Earnings |
|||||||||||||||||||
For the Three Months Ended |
Schedule 19 |
||||||||||||||||||
(in millions of dollars, except per share data) (Unaudited) |
|||||||||||||||||||
As Reported (GAAP) |
Prior Period Tax Revisions |
As Revised (GAAP) |
Integration Program and other Acquisition Integration costs (1) |
Spin-Off Costs (2) |
2012-2014 Restructuring Program Costs (3) |
Net Benefit from Indemnification Resolution (4) |
Net Earnings from Divestitures |
As Adjusted (Non-GAAP) |
|||||||||||
Operating income |
$ 1,262 |
$ - |
|
$ 36 |
$ 9 |
$ 63 |
$ (336) |
$ (2) |
$ 1,032 |
||||||||||
Operating income margin |
14.9% |
14.9% |
12.2% |
||||||||||||||||
Interest and other expense, net |
218 |
- |
218 |
- |
- |
- |
49 |
- |
267 |
||||||||||
Earnings from continuing operations before income taxes |
1,044 |
- |
1,044 |
36 |
9 |
63 |
(385) |
(2) |
765 |
||||||||||
Provision for income taxes |
14 |
12 |
26 |
7 |
7 |
16 |
(22) |
(1) |
33 |
||||||||||
Effective tax rate |
1.3% |
2.5% |
4.3% |
||||||||||||||||
Earnings from continuing operations |
1,030 |
(12) |
1,018 |
29 |
2 |
47 |
(363) |
(1) |
732 |
||||||||||
Noncontrolling interest |
6 |
- |
6 |
- |
- |
- |
- |
- |
6 |
||||||||||
Net earnings attributable to |
$ 1,024 |
$ (12) |
|
$ 29 |
$ 2 |
$ 47 |
$ (363) |
$ (1) |
$ 726 |
||||||||||
Per share data: |
|||||||||||||||||||
Diluted earnings per share attributable to |
|||||||||||||||||||
- Continuing operations |
$ 0.57 |
$ (0.01) |
$ 0.56 |
$ 0.01 |
$ - |
$ 0.03 |
$ (0.20) |
$ - |
$ 0.40 |
||||||||||
Average shares outstanding: |
|||||||||||||||||||
Diluted |
1,794 |
1,794 |
|||||||||||||||||
(1) |
Integration Program costs are defined as the costs associated with combining the |
(2) |
Spin-Off Costs represent transaction and transition costs associated with preparing the businesses for independent operations consisting primarily of financial advisory fees, legal fees, accounting fees, tax services and information systems infrastructure duplication, and financing and related costs to redistribute debt and secure investment grade ratings for both the Kraft Foods Group business and the |
(3) |
Restructuring Program costs represent restructuring and related implementation costs reflecting primarily severance, asset disposals and other manufacturing-related costs. |
(4) |
As part of our 2010 |
SOURCE
News Provided by Acquire Media
- Organic Net Revenue to grow at or above category growth, approximately 4%
- Adjusted Operating Income growth of low double digits on a constant currency basis, resulting in an expected Adjusted Operating Income margin in the high 12% range
- Adjusted EPS of $1.73 to $1.78, up double digits on a constant currency basis