Kraft 2004 Annual Report Download - page 60

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Total:
The pre-tax asset impairment, exit and implementation costs discussed above, for the year ended
December 31, 2004, were included in the operating companies income of the following segments:
Total Equity
Asset Impairment
Impairment and
Restructuring Asset and Exit Implementation
Costs Impairment Costs Costs Total
(in millions)
U.S. Beverages ................. $ 9 $ — $ 9 $ 4 $ 13
U.S. Cheese, Canada & North America
Foodservice .................. 103 8 111 8 119
U.S. Convenient Meals ............ 41 41 4 45
U.S. Grocery ................... 8 8 6 14
U.S. Snacks & Cereals ............ 222 222 18 240
Europe, Middle East & Africa ....... 180 180 56 236
Latin America & Asia Pacific ........ 20 12 32 1 33
Total—Continuing Operations ....... 583 20 603 97 700
Discontinued Operations .......... 124 124 8 132
Total ......................... $583 $144 $727 $105 $832
Other:
During 2003, the Company recorded a pre-tax charge of $6 million for asset impairment and exit
costs related to the closure of a Nordic snacks plant. During 2002, the Company recorded a pre-tax
charge of $142 million related to employee acceptances under a voluntary retirement program.
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 and 2002:
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
Note 4. Related Party Transactions:
Altria Group, Inc.’s subsidiary, Altria Corporate Services, Inc., provides the Company with various
services, including planning, legal, treasury, accounting, auditing, insurance, human resources, office of
the secretary, corporate affairs, information technology, aviation and tax services. Billings for these
services, which were based on the cost to Altria Corporate Services, Inc. to provide such services and a
management fee, were $310 million, $318 million and $327 million for the years ended December 31,
2004, 2003 and 2002, respectively. These costs were paid to Altria Corporate Services, Inc. monthly.
Although the cost of these services cannot be quantified on a stand-alone basis, management has
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