Kraft 2004 Annual Report Download - page 29

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Approximately 700 employees elected to retire or terminate employment under the program. These
charges were included in the operating companies income of the following segments:
For the Years Ended
December 31,
2003 2002
(in millions)
U.S. Beverages .......................................... $ 27
U.S. Cheese, Canada & North America Foodservice ................ 43
U.S. Convenient Meals ..................................... 36
U.S. Grocery ............................................ 20
U.S. Snacks & Cereals ..................................... 9
Europe, Middle East & Africa ................................. $6 5
Latin America & Asia Pacific ................................. 2
Asset impairment and exit costs ............................. $6 $142
•Losses (Gains) on Sales of Businesses—During 2004, the Company sold a Brazilian snack nuts
business and trademarks associated with a candy business in Norway for aggregate pre-tax
losses of $3 million. 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. 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 losses (gains) were included in the operating companies income of the
following segments:
For the Years Ended
December 31,
2004 2003 2002
(in millions)
U.S. Grocery ........................................... $— $— $ (8)
Europe, Middle East & Africa ................................ (5) (31)
Latin America & Asia Pacific ................................ 8 (72)
Losses (gains) on sales of businesses ......................... $ 3 $(31) $(80)
•Integration Costs and a Loss on Sale of a Food Factory—During 2003, the Company reversed
$13 million related to integration charges recorded in 2002 and 2001. During 2002, the Company
recorded pre-tax integration-related charges of $115 million to consolidate production lines in
North America, close a Kraft facility and for other consolidation programs. In addition, during
2002, the Company reversed $4 million related to the loss on sale of a food factory. These items
were included in the operating companies income of the following segments:
For the Years Ended
December 31,
2003 2002
(in millions)
U.S. Beverages .......................................... $ (3) $ 55
U.S. Cheese, Canada & North America Foodservice ................ (1) 7
U.S. Convenient Meals ..................................... (2) 27
U.S. Grocery ............................................ (7) 3
U.S. Snacks & Cereals ..................................... 2
Latin America & Asia Pacific ................................. 17
Integration costs and a loss on sale of a food factory ............. $(13) $111
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