Kraft 2007 Annual Report Download - page 94

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We incurred asset impairment, exit and implementation costs of $579 million in 2007, $1,097 million in 2006, and $566 million
in 2005. Refer to Note 2, Asset Impairment, Exit and Implementation Costs, for a breakout of charges by segment.
As described in Note 11. Acquisitions, in the third quarter of 2006, we acquired the Spanish and Portuguese operations of UB
and rights to all Nabisco trademarks in the European Union, Eastern Europe, the Middle East and Africa. The redemption of our
outstanding investment in UB resulted in a gain on closing of approximately $251 million. This gain is included in segment
operating income of the European Union segment.
As discussed in Note 12. Divestitures, during 2007, we sold our hot cereal assets and trademarks, our sugar confectionery assets
in Romania and related trademarks and our flavored water and juice brand assets and related trademarks for aggregate gains of
$15 million. During 2006, we sold our rice brand and assets, pet snacks brand and assets, industrial coconut assets, certain
Canadian assets, a small U.S. biscuit brand and a U.S. coffee plant for aggregate gains of $117 million. During 2005, we sold
our fruit snacks assets, U.K. desserts assets, U.S. yogurt assets, a small operation in Colombia, a minor trademark in Mexico and
a small equity investment in Turkey for aggregate gains of $108 million.
These (gains) / losses on divestitures were included in segment operating income as follows:
For the Years Ended December 31,
2007 2006 2005
(in millions)
North America Beverages $ 5 $ 95 $ -
North America Cheese & Foodservice - 8 (1)
North America Convenient Meals - (226) -
North America Grocery - 1 2
North America Snacks & Cereals (12) 5 -
European Union - - (114)
Developing Markets (8) - 5
Gains on divestitures, net $ (15) $ (117) $ (108)
Net revenues by consumer sector, which includes the separation of Foodservice and Kraft International into sector components
and Cereals into the Grocery sector, were:
For the Year Ended December 31, 2007
Kraft North
America
Kraft
International Total
(in millions)
Consumer Sector:
Snacks $ 5,704 $ 5,657 $ 11,361
Beverages 3,499 4,562 8,061
Cheese 5,199 1,729 6,928
Grocery 4,198 926 5,124
Convenient Meals 5,339 428 5,767
Total net revenues $ 23,939 $ 13,302 $ 37,241
For the Year Ended December 31, 2006
Kraft North
America
Kraft
International Total
(in millions)
Consumer Sector:
Snacks $ 5,491 $ 4,537 $ 10,028
Beverages 3,352 3,973 7,325
Cheese 4,857 1,557 6,414
Grocery 4,282 799 5,081
Convenient Meals 5,136 372 5,508
Total net revenues $ 23,118 $ 11,238 $ 34,356
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