Kraft 2005 Annual Report Download - page 65

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MERRILL CORPORATION EYOUNG// 8-MAR-06 09:45 DISK126:[06CHI5.06CHI1135]DU1135A.;17
mrll.fmt Free: 100D /120D Foot: 0D/ 0D VJ RSeq: 9 Clr: 0
DISK024:[PAGER.PSTYLES]UNIVERSAL.BST;51
KRAFT FOODS-FSC CERTIFIED-10K/AR Proj: P1102CHI06 Job: 06CHI1135 File: DU1135A.;17
Merrill Corporation/Chicago (312) 786-6300 Page Dim: 8.250X 10.750Copy Dim: 38. X 54.3
Total:
The pre-tax asset impairment, exit and implementation costs discussed above, for the years ended
December 31, 2005 and 2004, were included in the operating companies income of the following
segments:
For the Year Ended December 31, 2005
Total
Asset
Impairment
Restructuring Asset and Exit Implementation
Costs Impairment Costs Costs Total
(in millions)
U.S. Beverages ................. $ 9 $ — $ 9 $ 2 $ 11
U.S. Cheese, Canada & North America
Foodservice .................. 33 113 146 20 166
U.S. Convenient Meals ............ 12 12 7 19
U.S. Grocery ................... 6 93 99 2 101
U.S. Snacks & Cereals ............ 6 63 69 24 93
Europe, Middle East & Africa ....... 127 127 26 153
Latin America & Asia Pacific ........ 17 17 6 23
Total—Continuing Operations ....... $210 $269 $479 $ 87 $566
For the Year Ended December 31, 2004
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. This charge was included in the operating
companies income of the Europe, Middle East and Africa segment.
Note 4. Related Party Transactions:
Altria Group, Inc.’s subsidiary, Altria Corporate Services, Inc., provides the Company with various
services, including planning, legal, treasury, auditing, insurance, human resources, office of the
secretary, corporate affairs, information technology, aviation and tax services. Billings for these services,
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6 C Cs: 44212