Kraft 2003 Annual Report Download - page 55

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operating companies income of the following segments for the years
ended December 31, 2003 and 2002:
(in millions)
2003 2002
Cheese, Meals and Enhancers $60
Biscuits, Snacks and Confectionery 3
Beverages, Desserts and Cereals 47
Oscar Mayer and Pizza 25
Europe, Middle East and Africa $6 5
Latin America and Asia Pacific 2
Asset impairment and exit costs $6 $142
• Gains on Sales of Businesses—During 2003, the Company sold a
European rice business and a branded fresh cheese business in Italy
for aggregate pre-tax gains of $31 million. These pre-tax gains were
included in the operating companies income of the Europe, Middle
East and Africa segment. During 2002, the Company sold its Latin
American yeast and industrial bakery ingredients business, resulting
in a pre-tax gain of $69 million, and several small food businesses,
resulting in pre-tax gains of $11 million. These pre-tax gains were
included in the operating companies income of the following
segments: Biscuits, Snacks and Confectionery, $8 million; and Latin
America and Asia Pacific, $72 million.
See Notes 4 and 5, respectively, regarding divestitures
and acquisitions.
(in millions)
For the Years Ended December 31, 2003 2002 2001
Depreciation expense:
Cheese, Meals and Enhancers $206 $193 $ 180
Biscuits, Snacks and Confectionery 150 140 135
Beverages, Desserts and Cereals 124 115 113
Oscar Mayer and Pizza 62 58 55
Total Kraft Foods North America 542 506 483
Europe, Middle East and Africa 223 167 158
Latin America and Asia Pacific 39 36 39
Total Kraft Foods International 262 203 197
Total depreciation expense $804 $709 $ 680
Capital expenditures:
Cheese, Meals and Enhancers $226 $268 $ 266
Biscuits, Snacks and Confectionery 193 213 162
Beverages, Desserts and Cereals 184 194 202
Oscar Mayer and Pizza 110 133 131
Total Kraft Foods North America 713 808 761
Europe, Middle East and Africa 276 265 231
Latin America and Asia Pacific 96 111 109
Total Kraft Foods International 372 376 340
Total capital expenditures $1,085 $1,184 $1,101
Geographic data for net revenues, total assets and long-lived assets
(which consist of all non-current assets, other than goodwill, other
intangible assets, net, and prepaid pension assets) were as follows:
(in millions)
For the Years Ended December 31, 2003 2002 2001
Net revenues:
United States $19,545 $19,395 $19,193
Europe 6,752 5,908 5,667
Other 4,713 4,420 4,374
Total net revenues $31,010 $29,723 $29,234
Total assets:
United States $44,674 $44,406 $44,420
Europe 10,114 8,738 7,362
Other 4,497 3,956 4,016
Total assets $59,285 $57,100 $55,798
Long-lived assets:
United States $6,451 $6,382 $ 6,360
Europe 2,757 2,432 2,132
Other 1,831 1,596 1,668
Total long-lived assets $11,039 $10,410 $10,160
Note 14. Benefit Plans:
In December 2003, the FASB issued a revised SFAS No. 132,
“Employers’ Disclosures about Pensions and Other Postretirement
Benefits.” In 2003, the Company adopted the revised disclosure
requirements of this pronouncement, except for certain disclosures
about non-U.S. plans and estimated future benefit payments which
are not required until 2004.
The Company sponsors noncontributory defined benefit pension
plans covering substantially all U.S. employees. Pension coverage
for employees of the Company’s non-U.S. subsidiaries is provided,
to the extent deemed appropriate, through separate plans, many of
which are governed by local statutory requirements. In addition, the
Company’s U.S. and Canadian subsidiaries provide health care and
other benefits to substantially all retired employees. Health care
benefits for retirees outside the United States and Canada are
generally covered through local government plans.
The plan assets and benefit obligations of the Company’s U.S.
pension plans are measured at December 31 of each year.