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8-K - FORM 8-K - Kraft Foods Group, Inc. | d506178d8k.htm |
Exhibit 99.1
Kraft Foods Group, Inc.
Condensed Consolidated Statements of Earnings
(in millions of dollars, except per share data) (Unaudited)
2012 Quarters | 2012 | |||||||||||||||||||
First | Second | Third | Fourth | Full Year | ||||||||||||||||
Net revenues |
$ | 4,453 | $ | 4,786 | $ | 4,606 | $ | 4,494 | $ | 18,339 | ||||||||||
Cost of sales |
3,004 | 3,150 | 3,017 | 3,328 | 12,499 | |||||||||||||||
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Gross profit |
1,449 | 1,636 | 1,589 | 1,166 | 5,840 | |||||||||||||||
Selling, general and administrative expenses |
670 | 687 | 806 | 866 | 3,029 | |||||||||||||||
Asset impairment and exit costs |
38 | 38 | 26 | 39 | 141 | |||||||||||||||
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Operating income |
741 | 911 | 757 | 261 | 2,670 | |||||||||||||||
Operating income margin |
16.6 | % | 19.0 | % | 16.4 | % | 5.8 | % | 14.6 | % | ||||||||||
Interest and other expense, net |
(2 | ) | (21 | ) | (106 | ) | (129 | ) | (258 | ) | ||||||||||
Royalty income from Mondelēz International |
12 | 16 | 13 | | 41 | |||||||||||||||
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Earnings before income taxes |
751 | 906 | 664 | 132 | 2,453 | |||||||||||||||
Provision for income taxes |
268 | 303 | 198 | 42 | 811 | |||||||||||||||
Effective tax rate |
35.7 | % | 33.4 | % | 29.8 | % | 31.8 | % | 33.1 | % | ||||||||||
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Net earnings |
$ | 483 | $ | 603 | $ | 466 | $ | 90 | $ | 1,642 | ||||||||||
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Per common share data1,2: |
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Basic earnings per share |
$ | 0.82 | $ | 1.02 | $ | 0.79 | $ | 0.15 | $ | 2.77 | ||||||||||
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Diluted earnings per share |
$ | 0.82 | $ | 1.02 | $ | 0.79 | $ | 0.15 | $ | 2.75 | ||||||||||
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Weighted-average common shares outstanding: |
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Basic |
591 | 591 | 591 | 591 | 591 | |||||||||||||||
Diluted |
591 | 591 | 591 | 596 | 596 |
1 | On October 1, 2012, Mondelēz International, Inc. distributed 592 million shares of Kraft Foods Group common stock to Mondelēz International's shareholders in connection with its spin-off of Kraft Foods Group. Basic and diluted earnings per common share and the average number of common shares outstanding were retrospectively restated for the first, second, and third quarters presented above for the number of Kraft Foods Group shares outstanding immediately following this transaction. We grant shares of restricted stock and restricted stock units that are considered to be participating securities. Due to the presence of participating securities, we have calculated our earnings per share using the two-class method. |
2 | Basic and diluted EPS are computed independently for each of the periods presented. Accordingly, the sum of the quarterly EPS amounts may not equal the total for the year. |
Kraft Foods Group, Inc.
Condensed Consolidated Statements of Earnings
(in millions of dollars, except per share data) (Unaudited)
2011 Quarters | 2011 | |||||||||||||||||||||
First | Second | Third | Fourth | Full Year | ||||||||||||||||||
Net revenues |
$ | 4,405 | $ | 4,741 | $ | 4,474 | $ | 5,035 | $ | 18,655 | ||||||||||||
Cost of sales |
2,889 | 3,191 | 3,109 | 3,624 | 12,813 | |||||||||||||||||
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Gross profit |
1,516 | 1,550 | 1,365 | 1,411 | 5,842 | |||||||||||||||||
Selling, general and administrative expenses |
766 | 709 | 638 | 903 | 3,016 | |||||||||||||||||
Asset impairment and exit costs |
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Operating income |
750 | 841 | 729 | 508 | 2,828 | |||||||||||||||||
Operating income margin |
17.0 | % | 17.7 | % | 16.3 | % | 10.1 | % | 15.2 | % | ||||||||||||
Interest and other expense, net |
(2 | ) | (1 | ) | (3 | ) | (1 | ) | (7 | ) | ||||||||||||
Royalty income from Mondelēz International |
10 | 13 | 14 | 18 | 55 | |||||||||||||||||
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Earnings before income taxes |
758 | 853 | 740 | 525 | 2,876 | |||||||||||||||||
Provision for income taxes |
276 | 310 | 308 | 207 | 1,101 | |||||||||||||||||
Effective tax rate |
36.4 | % | 36.3 | % | 41.6 | % | 39.4 | % | 38.3 | % | ||||||||||||
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Net earnings |
$ | 482 | $ | 543 | $ | 432 | $ | 318 | $ | 1,775 | ||||||||||||
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Per common share data1,2: |
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Basic earnings per share |
$ | 0.82 | $ | 0.92 | $ | 0.73 | $ | 0.54 | $ | 3.00 | ||||||||||||
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Diluted earnings per share |
$ | 0.82 | $ | 0.92 | $ | 0.73 | $ | 0.54 | $ | 3.00 | ||||||||||||
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Weighted-average common shares outstanding: |
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Basic |
591 | 591 | 591 | 591 | 591 | |||||||||||||||||
Diluted |
591 | 591 | 591 | 591 | 591 |
1 | On October 1, 2012, Mondelēz International, Inc. distributed 592 million shares of Kraft Foods Group common stock to Mondelēz International's shareholders in connection with its spin-off of Kraft Foods Group. Basic and diluted earnings per common share and the average number of common shares outstanding were retrospectively restated for the four quarters and the full year presented above for the number of Kraft Foods Group shares outstanding immediately following this transaction. We grant shares of restricted stock and restricted stock units that are considered to be participating securities. Due to the presence of participating securities, we have calculated our earnings per share using the two-class method. |
2 | Basic and diluted EPS are computed independently for each of the periods presented. Accordingly, the sum of the quarterly EPS amounts may not equal the total for the year. |
Kraft Foods Group, Inc.
Net Revenues, Operating Income and Restructuring Program Costs1 by Segment
(in millions of dollars) (Unaudited)
2012 Quarters | 2012 | 2011 Quarters | 2011 | |||||||||||||||||||||||||||||||||||||
First | Second | Third | Fourth | Full Year | First | Second | Third | Fourth | Full Year | |||||||||||||||||||||||||||||||
Net revenues: |
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Beverages |
$ | 708 | $ | 778 | $ | 682 | $ | 566 | $ | 2,734 | $ | 821 | $ | 779 | $ | 681 | $ | 725 | $ | 3,006 | ||||||||||||||||||||
Cheese |
932 | 900 | 917 | 1,096 | 3,845 | 874 | 875 | 902 | 1,159 | 3,810 | ||||||||||||||||||||||||||||||
Refrigerated Meals |
807 | 903 | 891 | 695 | 3,296 | 792 | 881 | 863 | 792 | 3,328 | ||||||||||||||||||||||||||||||
Grocery |
1,080 | 1,216 | 1,127 | 1,128 | 4,551 | 1,009 | 1,202 | 1,075 | 1,270 | 4,556 | ||||||||||||||||||||||||||||||
International & Foodservice |
926 | 989 | 989 | 1,009 | 3,913 | 909 | 1,004 | 953 | 1,089 | 3,955 | ||||||||||||||||||||||||||||||
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Net revenues |
$ | 4,453 | $ | 4,786 | $ | 4,606 | $ | 4,494 | $ | 18,339 | $ | 4,405 | $ | 4,741 | $ | 4,474 | $ | 5,035 | $ | 18,655 | ||||||||||||||||||||
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2012 Quarters | 2012 | 2011 Quarters | 2011 | |||||||||||||||||||||||||||||||||||||
First | Second | Third | Fourth | Full Year | First | Second | Third | Fourth | Full Year | |||||||||||||||||||||||||||||||
Operating income: |
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Beverages |
$ | 98 | $ | 135 | $ | 76 | $ | (49 | ) | $ | 260 | $ | 161 | $ | 138 | $ | 103 | $ | 48 | $ | 450 | |||||||||||||||||||
Cheese |
167 | 157 | 159 | 135 | 618 | 134 | 143 | 146 | 206 | 629 | ||||||||||||||||||||||||||||||
Refrigerated Meals |
93 | 131 | 114 | 41 | 379 | 105 | 99 | 107 | 8 | 319 | ||||||||||||||||||||||||||||||
Grocery |
339 | 409 | 300 | 256 | 1,304 | 293 | 390 | 318 | 315 | 1,316 | ||||||||||||||||||||||||||||||
International & Foodservice |
101 | 126 | 129 | 125 | 481 | 101 | 143 | 130 | 110 | 484 | ||||||||||||||||||||||||||||||
Unrealized gains / (losses) on hedging activities |
1 | 5 | 52 | (45 | ) | 13 | (3 | ) | (28 | ) | (20 | ) | (13 | ) | (64 | ) | ||||||||||||||||||||||||
Certain postemployment benefit plan costs |
(57 | ) | (42 | ) | (60 | ) | (146 | ) | (305 | ) | (27 | ) | (28 | ) | (37 | ) | (148 | ) | (240 | ) | ||||||||||||||||||||
General corporate expenses |
(1 | ) | (10 | ) | (13 | ) | (56 | ) | (80 | ) | (14 | ) | (16 | ) | (18 | ) | (18 | ) | (66 | ) | ||||||||||||||||||||
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Operating income |
$ | 741 | $ | 911 | $ | 757 | $ | 261 | $ | 2,670 | $ | 750 | $ | 841 | $ | 729 | $ | 508 | $ | 2,828 | ||||||||||||||||||||
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2012 Quarters | 2012 | 2011 Quarters | 2011 | |||||||||||||||||||||||||||||||||||||
First | Second | Third | Fourth | Full Year | First | Second | Third | Fourth | Full Year | |||||||||||||||||||||||||||||||
Restructuring Program costs1: |
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Beverages |
$ | 6 | $ | 11 | $ | 24 | $ | 22 | $ | 63 | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||||||
Cheese |
19 | 26 | 11 | 42 | 98 | | | | | | ||||||||||||||||||||||||||||||
Refrigerated Meals |
6 | 5 | 6 | 13 | 30 | | | | | | ||||||||||||||||||||||||||||||
Grocery |
13 | 10 | 10 | 16 | 49 | | | | | | ||||||||||||||||||||||||||||||
International & Foodservice |
11 | 9 | 3 | 9 | 32 | | | | | | ||||||||||||||||||||||||||||||
Corporate expenses |
| | | 31 | 31 | | | | | | ||||||||||||||||||||||||||||||
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Restructuring Program costs |
$ | 55 | $ | 61 | $ | 54 | $ | 133 | $ | 303 | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||||||
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1 | Restructuring Program costs consist of restructuring costs, implementation costs, and transition costs associated with our spin-off from Mondelēz International, Inc. |