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8-K - 8-K - CAMPBELL SOUP CO | a8-kbenefitssegmentchangeq.htm |
Exhibit 99.1
CAMPBELL SOUP COMPANY
Consolidated Statements of Earnings
Recast for the Adoption of Guidance that Changes the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost
(millions, except per share amounts)
(unaudited)
Three Months Ended | Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
Fiscal 2017 | October 30, 2016 | January 29, 2017 | January 29, 2017 | April 30, 2017 | April 30, 2017 | July 30, 2017 | July 30, 2017 | |||||||||||||||||||||
Net sales | $ | 2,202 | $ | 2,171 | $ | 4,373 | $ | 1,853 | $ | 6,226 | $ | 1,664 | $ | 7,890 | ||||||||||||||
Costs and expenses | ||||||||||||||||||||||||||||
Cost of products sold | 1,351 | 1,360 | 2,711 | 1,188 | 3,899 | 1,066 | 4,965 | |||||||||||||||||||||
Marketing and selling expenses | 230 | 240 | 470 | 212 | 682 | 173 | 855 | |||||||||||||||||||||
Administrative expenses | 125 | 141 | 266 | 142 | 408 | 142 | 550 | |||||||||||||||||||||
Research and development expenses | 27 | 25 | 52 | 28 | 80 | 31 | 111 | |||||||||||||||||||||
Other expenses / (income) | 11 | 201 | 212 | (15 | ) | 197 | (206 | ) | (9 | ) | ||||||||||||||||||
Restructuring charges | 1 | (1 | ) | — | — | — | 18 | 18 | ||||||||||||||||||||
Total costs and expenses | 1,745 | 1,966 | 3,711 | 1,555 | 5,266 | 1,224 | 6,490 | |||||||||||||||||||||
Earnings before interest and taxes | 457 | 205 | 662 | 298 | 960 | 440 | 1,400 | |||||||||||||||||||||
Interest expense | 29 | 29 | 58 | 29 | 87 | 25 | 112 | |||||||||||||||||||||
Interest income | 1 | 1 | 2 | 1 | 3 | 2 | 5 | |||||||||||||||||||||
Earnings before taxes | 429 | 177 | 606 | 270 | 876 | 417 | 1,293 | |||||||||||||||||||||
Taxes on earnings | 137 | 76 | 213 | 94 | 307 | 99 | 406 | |||||||||||||||||||||
Net earnings | 292 | 101 | 393 | 176 | 569 | 318 | 887 | |||||||||||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | — | — | — | — | — | — | — | |||||||||||||||||||||
Net earnings attributable to Campbell Soup Company | $ | 292 | $ | 101 | $ | 393 | $ | 176 | $ | 569 | $ | 318 | $ | 887 | ||||||||||||||
Per Share — Basic | ||||||||||||||||||||||||||||
Net earnings attributable to Campbell Soup Company | $ | .95 | $ | .33 | $ | 1.28 | $ | .58 | $ | 1.86 | $ | 1.05 | $ | 2.91 | ||||||||||||||
Weighted average shares outstanding — basic | 308 | 306 | 307 | 304 | 306 | 303 | 305 | |||||||||||||||||||||
Per Share — Assuming Dilution | ||||||||||||||||||||||||||||
Net earnings attributable to Campbell Soup Company | $ | .94 | $ | .33 | $ | 1.27 | $ | .58 | $ | 1.85 | $ | 1.04 | $ | 2.89 | ||||||||||||||
Weighted average shares outstanding — assuming dilution | 310 | 309 | 309 | 306 | 308 | 305 | 307 |
5
CAMPBELL SOUP COMPANY
Consolidated Statements of Earnings
Recast for the Adoption of Guidance that Changes the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost
(millions, except per share amounts)
(unaudited)
Three Months Ended | Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
Fiscal 2016 | November 1, 2015 | January 31, 2016 | January 31, 2016 | May 1, 2016 | May 1, 2016 | July 31, 2016 | July 31, 2016 | |||||||||||||||||||||
Net sales | $ | 2,203 | $ | 2,201 | $ | 4,404 | $ | 1,870 | $ | 6,274 | $ | 1,687 | $ | 7,961 | ||||||||||||||
Costs and expenses | ||||||||||||||||||||||||||||
Cost of products sold | 1,378 | 1,386 | 2,764 | 1,183 | 3,947 | 1,086 | 5,033 | |||||||||||||||||||||
Marketing and selling expenses | 207 | 228 | 435 | 220 | 655 | 197 | 852 | |||||||||||||||||||||
Administrative expenses | 137 | 150 | 287 | 146 | 433 | 142 | 575 | |||||||||||||||||||||
Research and development expenses | 24 | 25 | 49 | 28 | 77 | 28 | 105 | |||||||||||||||||||||
Other expenses / (income) | 121 | (11 | ) | 110 | 23 | 133 | 272 | 405 | ||||||||||||||||||||
Restructuring charges | 21 | 9 | 30 | 2 | 32 | (1 | ) | 31 | ||||||||||||||||||||
Total costs and expenses | 1,888 | 1,787 | 3,675 | 1,602 | 5,277 | 1,724 | 7,001 | |||||||||||||||||||||
Earnings (loss) before interest and taxes | 315 | 414 | 729 | 268 | 997 | (37 | ) | 960 | ||||||||||||||||||||
Interest expense | 29 | 28 | 57 | 29 | 86 | 29 | 115 | |||||||||||||||||||||
Interest income | 1 | 1 | 2 | 1 | 3 | 1 | 4 | |||||||||||||||||||||
Earnings before taxes | 287 | 387 | 674 | 240 | 914 | (65 | ) | 849 | ||||||||||||||||||||
Taxes on earnings | 93 | 122 | 215 | 55 | 270 | 16 | 286 | |||||||||||||||||||||
Net earnings (loss) | 194 | 265 | 459 | 185 | 644 | (81 | ) | 563 | ||||||||||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | — | — | — | — | — | — | — | |||||||||||||||||||||
Net earnings (loss) attributable to Campbell Soup Company | $ | 194 | $ | 265 | $ | 459 | $ | 185 | $ | 644 | $ | (81 | ) | $ | 563 | |||||||||||||
Per Share — Basic | ||||||||||||||||||||||||||||
Net earnings (loss) attributable to Campbell Soup Company | $ | .63 | $ | .85 | $ | 1.48 | $ | .60 | $ | 2.08 | $ | (.26 | ) | $ | 1.82 | |||||||||||||
Weighted average shares outstanding — basic | 310 | 310 | 310 | 309 | 309 | 308 | 309 | |||||||||||||||||||||
Per Share — Assuming Dilution | ||||||||||||||||||||||||||||
Net earnings (loss) attributable to Campbell Soup Company | $ | .62 | $ | .85 | $ | 1.47 | $ | .59 | $ | 2.07 | $ | (.26 | ) | $ | 1.81 | |||||||||||||
Weighted average shares outstanding — assuming dilution | 312 | 312 | 312 | 311 | 311 | 310 | 311 |
6
CAMPBELL SOUP COMPANY
Consolidated Statements of Earnings
Recast for the Adoption of Guidance that Changes the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost
(millions, except per share amounts)
(unaudited)
Twelve Months Ended | ||||
Fiscal 2015 | August 2, 2015 | |||
Net sales | $ | 8,082 | ||
Costs and expenses | ||||
Cost of products sold | 5,258 | |||
Marketing and selling expenses | 872 | |||
Administrative expenses | 580 | |||
Research and development expenses | 109 | |||
Other expenses / (income) | 107 | |||
Restructuring charges | 102 | |||
Total costs and expenses | 7,028 | |||
Earnings before interest and taxes | 1,054 | |||
Interest expense | 108 | |||
Interest income | 3 | |||
Earnings before taxes | 949 | |||
Taxes on earnings | 283 | |||
Net earnings | 666 | |||
Less: Net earnings (loss) attributable to noncontrolling interests | — | |||
Net earnings attributable to Campbell Soup Company | $ | 666 | ||
Per Share — Basic | ||||
Net earnings attributable to Campbell Soup Company | $ | 2.13 | ||
Weighted average shares outstanding — basic | 312 | |||
Per Share — Assuming Dilution | ||||
Net earnings attributable to Campbell Soup Company | $ | 2.13 | ||
Weighted average shares outstanding — assuming dilution | 313 |
7
CAMPBELL SOUP COMPANY
Segment Information
Recast for Change in Business Segments
(millions)
(unaudited)
Three Months Ended | Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
Fiscal 2017 | October 30, 2016 | January 29, 2017 | January 29, 2017 | April 30, 2017 | April 30, 2017 | July 30, 2017 | July 30, 2017 | |||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||||
Americas Simple Meals and Beverages | $ | 1,278 | $ | 1,215 | $ | 2,493 | $ | 966 | $ | 3,459 | $ | 797 | $ | 4,256 | ||||||||||||||
Global Biscuits and Snacks | 690 | 696 | 1,386 | 639 | 2,025 | 642 | 2,667 | |||||||||||||||||||||
Campbell Fresh | 234 | 260 | 494 | 248 | 742 | 225 | 967 | |||||||||||||||||||||
Total | $ | 2,202 | $ | 2,171 | $ | 4,373 | $ | 1,853 | $ | 6,226 | $ | 1,664 | $ | 7,890 |
Earnings before interest and taxes | ||||||||||||||||||||||||||||
Americas Simple Meals and Beverages | $ | 380 | $ | 311 | $ | 691 | $ | 224 | $ | 915 | $ | 196 | $ | 1,111 | ||||||||||||||
Global Biscuits and Snacks | 115 | 137 | 252 | 100 | 352 | 111 | 463 | |||||||||||||||||||||
Campbell Fresh | 1 | (3 | ) | (2 | ) | 1 | (1 | ) | (8 | ) | (9 | ) | ||||||||||||||||
Corporate | (38 | ) | (241 | ) | (279 | ) | (27 | ) | (306 | ) | 159 | (147 | ) | |||||||||||||||
Restructuring charges | (1 | ) | 1 | — | — | — | (18 | ) | (18 | ) | ||||||||||||||||||
Total | $ | 457 | $ | 205 | $ | 662 | $ | 298 | $ | 960 | $ | 440 | $ | 1,400 |
8
CAMPBELL SOUP COMPANY
Segment Information
Recast for Change in Business Segments
(millions)
(unaudited)
Three Months Ended | Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
Fiscal 2016 | November 1, 2015 | January 31, 2016 | January 31, 2016 | May 1, 2016 | May 1, 2016 | July 31, 2016 | July 31, 2016 | |||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||||
Americas Simple Meals and Beverages | $ | 1,285 | $ | 1,220 | $ | 2,505 | $ | 983 | $ | 3,488 | $ | 825 | $ | 4,313 | ||||||||||||||
Global Biscuits and Snacks | 669 | 699 | 1,368 | 624 | 1,992 | 639 | 2,631 | |||||||||||||||||||||
Campbell Fresh | 249 | 282 | 531 | 263 | 794 | 223 | 1,017 | |||||||||||||||||||||
Total | $ | 2,203 | $ | 2,201 | $ | 4,404 | $ | 1,870 | $ | 6,274 | $ | 1,687 | $ | 7,961 |
Earnings (loss) before interest and taxes | ||||||||||||||||||||||||||||
Americas Simple Meals and Beverages | $ | 359 | $ | 288 | $ | 647 | $ | 224 | $ | 871 | $ | 189 | $ | 1,060 | ||||||||||||||
Global Biscuits and Snacks | 118 | 143 | 261 | 87 | 348 | 83 | 431 | |||||||||||||||||||||
Campbell Fresh | 18 | 21 | 39 | 13 | 52 | 8 | 60 | |||||||||||||||||||||
Corporate | (159 | ) | (29 | ) | (188 | ) | (54 | ) | (242 | ) | (318 | ) | (560 | ) | ||||||||||||||
Restructuring charges | (21 | ) | (9 | ) | (30 | ) | (2 | ) | (32 | ) | 1 | (31 | ) | |||||||||||||||
Total | $ | 315 | $ | 414 | $ | 729 | $ | 268 | $ | 997 | $ | (37 | ) | $ | 960 |
9
CAMPBELL SOUP COMPANY
Segment Information
Recast for Change in Business Segments
(millions)
(unaudited)
Twelve Months Ended | ||||
Fiscal 2015 | August 2, 2015 | |||
Net sales | ||||
Americas Simple Meals and Beverages | $ | 4,416 | ||
Global Biscuits and Snacks | 2,698 | |||
Campbell Fresh | 968 | |||
Total | $ | 8,082 |
Earnings before interest and taxes | ||||
Americas Simple Meals and Beverages | $ | 943 | ||
Global Biscuits and Snacks | 388 | |||
Campbell Fresh | 61 | |||
Corporate | (236 | ) | ||
Restructuring charges | (102 | ) | ||
Total | $ | 1,054 |
10
Reconciliation of Fiscal 2017, 2016, and 2015 GAAP to Non-GAAP Financial Measures Recast for the Adoption of Guidance that Changes the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost
We use 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. We believe that also presenting certain non-GAAP financial measures provides additional information to facilitate comparison of our historical operating results and trends in our underlying operating results, and provides transparency on how we evaluate our business. We use these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating our performance.
The following items impacted earnings:
(1) | We recognize actuarial gains and losses as of the measurement date, which is our fiscal year end, or more frequently if an interim remeasurement is required. In fiscal 2017, 2016, and 2015, we recognized mark-to-market adjustments in Other expenses / (income) for defined benefit pension and postretirement plans. |
(2) | In fiscal 2015, we implemented a new enterprise design and initiatives to reduce costs and to streamline our organizational structure. In fiscal 2017, we expanded these cost savings initiatives by further optimizing our supply chain network, primarily in North America, continuing to evolve our operating model to drive efficiencies, and more fully integrating our recent acquisitions. In fiscal 2017, we recorded Restructuring charges and implementation costs and other related costs in Administrative expenses and in Cost of products sold. In fiscal 2016 and 2015, we recorded Restructuring charges and implementation costs and other related costs in Administrative expenses related to these initiatives. In fiscal 2016, we also recorded a reduction to Restructuring charges related to fiscal 2014 initiatives. |
(3) | In the second quarter of fiscal 2017, we 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 and recorded non-cash impairment charges related to the intangible assets of the reporting units. In the fourth quarter of fiscal 2016, as part of the annual review of intangible assets, we recorded a non-cash impairment charge related to the intangible assets of the Bolthouse Farms carrot and carrot ingredients reporting unit. The charges were included in Other expenses / (income). |
(4) | In fiscal 2017, we recorded a tax benefit 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, we recorded a reduction to interest expense related to premiums and fees received on the sale of the notes. |
(5) | In fiscal 2016, we recorded a gain in Other expenses / (income) from a settlement of a claim related to the Kelsen acquisition. |
11
The tables below reconcile financial information, presented in accordance with GAAP, to financial information excluding certain items for fiscal 2017, 2016, and 2015.
Fiscal 2017 | Three Months Ended | Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
(millions, except per share amounts) | October 30, 2016 | January 29, 2017 | January 29, 2017 | April 30, 2017 | April 30, 2017 | July 30, 2017 | July 30, 2017 | |||||||||||||||||||||
Gross margin, as reported | $ | 851 | $ | 811 | $ | 1,662 | $ | 665 | $ | 2,327 | $ | 598 | $ | 2,925 | ||||||||||||||
Add: Restructuring charges, implementation costs and other related costs (2) | — | — | — | — | — | 4 | 4 | |||||||||||||||||||||
Adjusted Gross margin | $ | 851 | $ | 811 | $ | 1,662 | $ | 665 | $ | 2,327 | $ | 602 | $ | 2,929 | ||||||||||||||
Adjusted Gross margin percentage | 38.6 | % | 37.4 | % | 38.0 | % | 35.9 | % | 37.4 | % | 36.2 | % | 37.1 | % | ||||||||||||||
Marketing and selling expenses, as reported | $ | 230 | $ | 240 | $ | 470 | $ | 212 | $ | 682 | $ | 173 | $ | 855 | ||||||||||||||
Administrative expenses, as reported | $ | 125 | $ | 141 | $ | 266 | $ | 142 | $ | 408 | $ | 142 | $ | 550 | ||||||||||||||
Deduct: Restructuring charges, implementation costs and other related costs (2) | (8 | ) | — | (11 | ) | (7 | ) | (18 | ) | (18 | ) | (36 | ) | |||||||||||||||
Adjusted Administrative expenses | $ | 117 | $ | 141 | $ | 255 | $ | 135 | $ | 390 | $ | 124 | $ | 514 | ||||||||||||||
Research and development expenses, as reported | $ | 27 | $ | 25 | $ | 52 | $ | 28 | $ | 80 | $ | 31 | $ | 111 | ||||||||||||||
Other expenses / (income), as reported | $ | 11 | $ | 201 | $ | 212 | $ | (15 | ) | $ | 197 | $ | (206 | ) | $ | (9 | ) | |||||||||||
Add (Deduct): Pension and postretirement benefit mark-to-market adjustments (1) | (20 | ) | — | (20 | ) | — | (20 | ) | 198 | 178 | ||||||||||||||||||
Deduct: Impairment charges (3) | — | (212 | ) | (212 | ) | — | (212 | ) | — | (212 | ) | |||||||||||||||||
Adjusted Other expenses / (income) | $ | (9 | ) | $ | (11 | ) | $ | (20 | ) | $ | (15 | ) | $ | (35 | ) | $ | (8 | ) | $ | (43 | ) | |||||||
Earnings before interest and taxes, as reported | $ | 457 | $ | 205 | $ | 662 | $ | 298 | $ | 960 | $ | 440 | $ | 1,400 | ||||||||||||||
Add (Deduct): Pension and postretirement benefit mark-to-market adjustments (1) | 20 | — | 20 | — | 20 | (198 | ) | (178 | ) | |||||||||||||||||||
Add: Restructuring charges, implementation costs and other related costs (2) | 9 | — | 11 | 7 | 18 | 40 | 58 | |||||||||||||||||||||
Add: Impairment charges (3) | — | 212 | 212 | — | 212 | — | 212 | |||||||||||||||||||||
Adjusted Earnings before interest and taxes | $ | 486 | $ | 417 | $ | 905 | $ | 305 | $ | 1,210 | $ | 282 | $ | 1,492 | ||||||||||||||
Interest, net, as reported | $ | 28 | $ | 28 | $ | 56 | $ | 28 | $ | 84 | $ | 23 | $ | 107 | ||||||||||||||
Add: Sale of notes (4) | — | — | — | — | — | 6 | 6 | |||||||||||||||||||||
Adjusted Interest, net | $ | 28 | $ | 28 | $ | 56 | $ | 28 | $ | 84 | $ | 29 | $ | 113 | ||||||||||||||
Adjusted Earnings before taxes | $ | 458 | $ | 389 | $ | 849 | $ | 277 | $ | 1,126 | $ | 253 | $ | 1,379 | ||||||||||||||
Taxes on earnings, as reported | $ | 137 | $ | 76 | $ | 213 | $ | 94 | $ | 307 | $ | 99 | $ | 406 | ||||||||||||||
Add (Deduct): Tax benefit (expense) from pension and postretirement benefit mark-to-market adjustments (1) | 7 | — | 7 | — | 7 | (69 | ) | (62 | ) | |||||||||||||||||||
Add: Tax benefit from restructuring charges, implementation costs and other related costs (2) | 3 | — | 4 | 3 | 7 | 14 | 21 | |||||||||||||||||||||
Add: Tax benefit from impairment charges (3) | — | 32 | 32 | — | 32 | — | 32 | |||||||||||||||||||||
Add: Tax benefit from sale of notes (4) | — | — | — | — | — | 50 | 50 | |||||||||||||||||||||
Adjusted Taxes on earnings | $ | 147 | $ | 108 | $ | 256 | $ | 97 | $ | 353 | $ | 94 | $ | 447 | ||||||||||||||
Adjusted effective income tax rate | 32.1 | % | 27.8 | % | 30.2 | % | 35.0 | % | 31.3 | % | 37.2 | % | 32.4 | % | ||||||||||||||
Net earnings attributable to Campbell Soup Company, as reported | $ | 292 | $ | 101 | $ | 393 | $ | 176 | $ | 569 | $ | 318 | $ | 887 | ||||||||||||||
Add (Deduct): Net adjustment from pension and postretirement benefit mark-to-market adjustments (1) | 13 | — | 13 | — | 13 | (129 | ) | (116 | ) | |||||||||||||||||||
Add: Net adjustment from restructuring charges, implementation costs and other related costs (2) | 6 | — | 7 | 4 | 11 | 26 | 37 | |||||||||||||||||||||
Add: Net adjustment from impairment charges (3) | — | 180 | 180 | — | 180 | — | 180 | |||||||||||||||||||||
Deduct: Net adjustment from sale of notes (4) | — | — | — | — | — | (56 | ) | (56 | ) | |||||||||||||||||||
Adjusted Net earnings attributable to Campbell Soup Company | $ | 311 | $ | 281 | $ | 593 | $ | 180 | $ | 773 | $ | 159 | $ | 932 |
12
Diluted net earnings per share attributable to Campbell Soup Company, as reported | $ | .94 | $ | .33 | $ | 1.27 | $ | .58 | $ | 1.85 | $ | 1.04 | $ | 2.89 | ||||||||||||||
Add (Deduct): Net adjustment from pension and postretirement benefit mark-to-market adjustments (1) | .04 | — | .04 | — | .04 | (.42 | ) | (.38 | ) | |||||||||||||||||||
Add: Net adjustment from restructuring charges, implementation costs and other related costs (2) | .02 | — | .02 | .01 | .04 | .09 | .12 | |||||||||||||||||||||
Add: Net adjustment from impairment charges (3) | — | .58 | .58 | — | .58 | — | .59 | |||||||||||||||||||||
Deduct: Net adjustment from sale of notes (4) | — | — | — | — | — | (.18 | ) | (.18 | ) | |||||||||||||||||||
Adjusted Diluted net earnings per share attributable to Campbell Soup Company* | $ | 1.00 | $ | .91 | $ | 1.92 | $ | .59 | $ | 2.51 | $ | .52 | $ | 3.04 |
____________________________________
*The sum of the individual per share amounts may not add due to rounding.
13
Fiscal 2016 | Three Months Ended | Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
(millions, except per share amounts) | November 1, 2015 | January 31, 2016 | January 31, 2016 | May 1, 2016 | May 1, 2016 | July 31, 2016 | July 31, 2016 | |||||||||||||||||||||
Gross margin, as reported | $ | 825 | $ | 815 | $ | 1,640 | $ | 687 | $ | 2,327 | $ | 601 | $ | 2,928 | ||||||||||||||
Gross margin percentage, as reported | 37.4 | % | 37.0 | % | 37.2 | % | 36.7 | % | 37.1 | % | 35.6 | % | 36.8 | % | ||||||||||||||
Marketing and selling expenses, as reported | $ | 207 | $ | 228 | $ | 435 | $ | 220 | $ | 655 | $ | 197 | $ | 852 | ||||||||||||||
Administrative expenses, as reported | $ | 137 | $ | 150 | $ | 287 | $ | 146 | $ | 433 | $ | 142 | $ | 575 | ||||||||||||||
Deduct: Restructuring charges, implementation costs and other related costs (2) | (15 | ) | (7 | ) | (22 | ) | (13 | ) | (35 | ) | (12 | ) | (47 | ) | ||||||||||||||
Adjusted Administrative expenses | $ | 122 | $ | 143 | $ | 265 | $ | 133 | $ | 398 | $ | 130 | $ | 528 | ||||||||||||||
Research and development expenses, as reported | $ | 24 | $ | 25 | $ | 49 | $ | 28 | $ | 77 | $ | 28 | $ | 105 | ||||||||||||||
Other expenses / (income), as reported | $ | 121 | $ | (11 | ) | $ | 110 | $ | 23 | $ | 133 | $ | 272 | $ | 405 | |||||||||||||
Add (Deduct): Pension and postretirement benefit mark-to-market adjustments (1) | (128 | ) | 7 | (121 | ) | (54 | ) | (175 | ) | (138 | ) | (313 | ) | |||||||||||||||
Deduct: Impairment charges (3) | — | — | — | — | — | (141 | ) | (141 | ) | |||||||||||||||||||
Add: Claim settlement (5) | — | — | — | 25 | 25 | — | 25 | |||||||||||||||||||||
Adjusted Other expenses / (income) | $ | (7 | ) | $ | (4 | ) | $ | (11 | ) | $ | (6 | ) | $ | (17 | ) | $ | (7 | ) | $ | (24 | ) | |||||||
Earnings (loss) before interest and taxes, as reported | $ | 315 | $ | 414 | $ | 729 | $ | 268 | $ | 997 | $ | (37 | ) | $ | 960 | |||||||||||||
Add (Deduct): Pension and postretirement benefit mark-to-market adjustments (1) | 128 | (7 | ) | 121 | 54 | 175 | 138 | 313 | ||||||||||||||||||||
Add: Restructuring charges, implementation costs and other related costs (2) | 36 | 16 | 52 | 15 | 67 | 11 | 78 | |||||||||||||||||||||
Add: Impairment charges (3) | — | — | — | — | — | 141 | 141 | |||||||||||||||||||||
Deduct: Claim settlement (5) | — | — | — | (25 | ) | (25 | ) | — | (25 | ) | ||||||||||||||||||
Adjusted Earnings before interest and taxes | $ | 479 | $ | 423 | $ | 902 | $ | 312 | $ | 1,214 | $ | 253 | $ | 1,467 | ||||||||||||||
Interest, net, as reported | $ | 28 | $ | 27 | $ | 55 | $ | 28 | $ | 83 | $ | 28 | $ | 111 | ||||||||||||||
Adjusted Earnings before taxes | $ | 451 | $ | 396 | $ | 847 | $ | 284 | $ | 1,131 | $ | 225 | $ | 1,356 | ||||||||||||||
Taxes on earnings, as reported | $ | 93 | $ | 122 | $ | 215 | $ | 55 | $ | 270 | $ | 16 | $ | 286 | ||||||||||||||
Add (Deduct): Tax benefit (expense) from pension and postretirement benefit mark-to-market adjustments (1) | 48 | (3 | ) | 45 | 20 | 65 | 48 | 113 | ||||||||||||||||||||
Add: Tax benefit from restructuring charges, implementation costs and other related costs (2) | 13 | 6 | 19 | 6 | 25 | 4 | 29 | |||||||||||||||||||||
Add: Tax benefit from impairment charges (3) | — | — | — | — | — | 14 | 14 | |||||||||||||||||||||
Adjusted Taxes on earnings | $ | 154 | $ | 125 | $ | 279 | $ | 81 | $ | 360 | $ | 82 | $ | 442 | ||||||||||||||
Adjusted effective income tax rate | 34.1 | % | 31.6 | % | 32.9 | % | 28.5 | % | 31.8 | % | 36.4 | % | 32.6 | % | ||||||||||||||
Net earnings (loss) attributable to Campbell Soup Company, as reported | $ | 194 | $ | 265 | $ | 459 | $ | 185 | $ | 644 | $ | (81 | ) | $ | 563 | |||||||||||||
Add (Deduct): Net adjustment from pension and postretirement benefit mark-to-market adjustments (1) | 80 | (4 | ) | 76 | 34 | 110 | 90 | 200 | ||||||||||||||||||||
Add: Net adjustment from restructuring charges, implementation costs and other related costs (2) | 23 | 10 | 33 | 9 | 42 | 7 | 49 | |||||||||||||||||||||
Add: Net adjustment from impairment charges (3) | — | — | — | — | — | 127 | 127 | |||||||||||||||||||||
Deduct: Net adjustment from claim settlement (5) | — | — | — | (25 | ) | (25 | ) | — | (25 | ) | ||||||||||||||||||
Adjusted Net earnings attributable to Campbell Soup Company | $ | 297 | $ | 271 | $ | 568 | $ | 203 | $ | 771 | $ | 143 | $ | 914 |
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Diluted net earnings (loss) per share attributable to Campbell Soup Company, as reported | $ | .62 | $ | .85 | $ | 1.47 | $ | .59 | $ | 2.07 | $ | (.26 | ) | $ | 1.81 | |||||||||||||
Add (Deduct): Net adjustment from pension and postretirement benefit mark-to-market adjustments (1) | .26 | (.01 | ) | .24 | .11 | .35 | .29 | .64 | ||||||||||||||||||||
Add: Net adjustment from restructuring charges, implementation costs and other related costs (2) | .07 | .03 | .11 | .03 | .14 | .02 | .16 | |||||||||||||||||||||
Add: Net adjustment from impairment charges (3) | — | — | — | — | — | .41 | .41 | |||||||||||||||||||||
Deduct: Net adjustment from claim settlement (5) | — | — | — | (.08 | ) | (.08 | ) | — | (.08 | ) | ||||||||||||||||||
Adjusted Diluted net earnings per share attributable to Campbell Soup Company | $ | .95 | $ | .87 | $ | 1.82 | $ | .65 | $ | 2.48 | $ | .46 | $ | 2.94 |
Fiscal 2015 | Twelve Months Ended | |||
(millions, except per share amounts) | August 2, 2015 | |||
Gross margin, as reported | $ | 2,824 | ||
Gross margin percentage, as reported | 34.9 | % | ||
Marketing and selling expenses, as reported | $ | 872 | ||
Administrative expenses, as reported | $ | 580 | ||
Deduct: Restructuring charges and implementation costs (2) | (22 | ) | ||
Adjusted Administrative expenses | $ | 558 | ||
Research and development expenses, as reported | $ | 109 | ||
Other expenses / (income), as reported | $ | 107 | ||
Deduct: Pension and postretirement benefit mark-to-market adjustments (1) | (138 | ) | ||
Adjusted Other expenses / (income) | $ | (31 | ) | |
Earnings before interest and taxes, as reported | $ | 1,054 | ||
Add: Pension and postretirement benefit mark-to-market adjustments (1) | 138 | |||
Add: Restructuring charges and implementation costs (2) | 124 | |||
Adjusted Earnings before interest and taxes | $ | 1,316 | ||
Interest, net, as reported | $ | 105 | ||
Adjusted Earnings before taxes | $ | 1,211 | ||
Taxes on earnings, as reported | $ | 283 | ||
Add: Tax benefit from pension and postretirement benefit mark-to-market adjustments (1) | 51 | |||
Add: Tax benefit from restructuring charges and implementation costs (2) | 46 | |||
Adjusted Taxes on earnings | $ | 380 | ||
Adjusted effective income tax rate | 31.4 | % | ||
Net earnings attributable to Campbell Soup Company, as reported | $ | 666 | ||
Add: Net adjustment from pension and postretirement benefit mark-to-market adjustments (1) | 87 | |||
Add: Net adjustment from restructuring charges and implementation costs (2) | 78 | |||
Adjusted Net earnings attributable to Campbell Soup Company | $ | 831 | ||
Diluted net earnings per share attributable to Campbell Soup Company, as reported | $ | 2.13 | ||
Add: Net adjustment from pension and postretirement benefit mark-to-market adjustments (1) | .28 | |||
Add: Net adjustment from restructuring charges and implementation costs (2) | .25 | |||
Adjusted Diluted net earnings per share attributable to Campbell Soup Company* | $ | 2.65 |
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*The sum of the individual per share amounts may not add due to rounding.
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