Kraft 2006 Annual Report Download - page 39

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Operating income was affected by the following items during 2006, 2005 and 2004:
•
Asset impairment, exit and implementation costs—As discussed in Note 3 to the consolidated financial statements, during 2006, 2005 and
2004, the Company recorded $1,002 million, $479 million and $603 million, respectively, of asset impairment and exit costs on its
consolidated statement of earnings. Additionally, during 2006, 2005 and 2004, the Company recorded pre-tax implementation costs of
$95 million, $87 million and $50 million, respectively. During 2004, the Company also recorded $47 million of pre-tax impairment charges
related to its equity investment in a joint venture in Turkey.
The pre-tax asset impairment, exit and implementation costs for the years ended December 31, 2006, 2005 and 2004, were included in the operating
companies income of the following segments:
For the Year Ended December 31, 2006
Restructuring
Costs
Asset
Impairment
Total Asset
Impairment
and
Exit Costs
Implementation
Costs
Total
(in millions)
North America Beverages $ 21 $ 75 $ 96 $ 12 $ 108
North America Cheese & Foodservice 87 87 15 102
North America Convenient Meals 106 106 12 118
North America Grocery 21 21 9 30
North America Snacks & Cereals 39 168 207 16 223
European Union 230 170 400 23 423
Developing Markets, Oceania & North Asia 74 11 85 8 93
Total—Continuing Operations $ 578 $ 424 $ 1,002 $ 95 $ 1,097
For the Year Ended December 31, 2005
Restructuring
Costs
Asset
Impairment
Total Asset
Impairment
and
Exit Costs
Implementation
Costs
Total
(in millions)
North America Beverages $ 11 $ — $ 11 $ 10 $ 21
North America Cheese & Foodservice 15 15 4 19
North America Convenient Meals 13 13 7 20
North America Grocery 21 206 227 8 235
North America Snacks & Cereals 6 63 69 26 95
European Union 127 127 20 147
Developing Markets, Oceania & North Asia 17 17 12 29
Total—Continuing Operations $ 210 $ 269 $ 479 $ 87 $ 566
35
Source: KRAFT FOODS INC, 10-K, March 01, 2007