Kraft 2008 Annual Report Download - page 58

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property, plant and equipment of $6 million, and was recorded as asset impairment and exit costs on the consolidated statement of earnings. In January 2007, we
announced the sale of our hot cereal assets and trademarks. We recorded an asset impairment charge of $69 million in the fourth quarter of 2006 in connection
with the anticipated sale. The charge included the write-off of a portion of the associated goodwill of $15 million, intangible assets of $52 million and property,
plant and equipment of $2 million, and was recorded as asset impairment and exit costs on the consolidated statement of earnings. The transaction closed in 2007
and no further impairment charges were incurred for this divestiture.
During 2005, we sold our fruit snacks assets and incurred an asset impairment charge of $93 million in recognition of the sale. During December 2005, we
reached agreements to sell certain assets in Canada and a small biscuit brand in the U.S. and incurred asset impairment charges of $176 million in recognition of
these sales. These transactions closed in 2006 and no further impairment charges were incurred for these divestitures. These aggregate charges, which included
the write-off of the associated goodwill of $13 million, intangible assets of $118 million and asset write-downs of $138 million were recorded as asset
impairment and exit costs on the consolidated statement of earnings.
Total - Asset Impairment, Exit and Implementation Costs
We included the asset impairment, exit and implementation costs discussed above, for the years ended December 31, 2007, 2006 and 2005 in segment operating
income as follows:
For the Year Ended December 31, 2007
Restructuring
Costs
Asset
Impairment
Total Asset
Impairment
and Exit Costs
Implementation
Costs
Total
(in millions)
North America Beverages $ 13 $ 120 $ 133 $ 7 $ 140
North America Cheese &
Foodservice 61 - 61 27 88
North America Convenient Meals 23 - 23 15 38
North America Grocery 71 - 71 7 78
North America Snacks & Cereals 18 - 18 15 33
European Union 108 - 108 44 152
Developing Markets (1)
38 - 38 12 50
Total $ 332 $ 120 $ 452 $ 127 $ 579
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 (1)
74 11 85 8 93
Total $ 578 $ 424 $ 1,002 $ 95 $ 1,097
56
Source: KRAFT FOODS INC, 10-K, February 25, 2008 Powered by Morningstar® Document Research℠