Kraft 2006 Annual Report Download - page 73

Download and view the complete annual report

Please find page 73 of the 2006 Kraft annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

In June 2005, the Company sold substantially all of its sugar confectionery business for approximately $1.4 billion. In 2004, as a result of the anticipated
transaction, the Company recorded non-cash asset impairments totaling $107 million. These charges were included in loss from discontinued operations on the
consolidated statement of earnings.
In December 2004, the Company announced the sale of its U.S. yogurt assets, which closed in the first quarter of 2005. In 2004, as a result of the anticipated
transaction, the Company recorded asset impairments totaling $8 million. This charge was recorded as asset impairment and exit costs on the consolidated
statement of earnings.
Total:
The pre-tax asset impairment, exit and implementation costs discussed above, 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
68
Source: KRAFT FOODS INC, 10-K, March 01, 2007