Kraft 2010 Annual Report Download - page 70

Summary results of operations for the Post cereals business through August 4, 2008, were as follows:
For the Year Ended
December 31,
2008
(in millions)
Net revenues $ 666
Earnings before income taxes 189
Provision for income taxes (70)
Gain on discontinued operations, net of income taxes 926
Earnings and gain from discontinued operations, net of income taxes $ 1,045
Other Divestitures:
The EU Commission required, as a condition of our Cadbury acquisition, that we divest certain Cadbury confectionery operations in Poland and Romania. In
2010, we completed the sale of the assets of the confectionery operations in Poland and Romania. The total proceeds from the divestitures were $342 million
and the impacts of these divestitures were primarily reflected as adjustments to the purchase price allocations.
In 2009, we received $41 million in net proceeds and recorded pre-tax losses of $6 million on the divestitures of our Balance bar operations in the U.S., a
juice operation in Brazil and a plant in Spain. We recorded after-tax gains of $58 million on these divestitures, primarily due to the differing book and tax
bases of our Balance bar operations.
In 2008, we received $153 million in net proceeds, and recorded pre-tax losses of $92 million on divestitures, primarily related to a Nordic and Baltic snacks
operation and four operations in Spain. We recorded after-tax losses of $64 million on these divestitures.
Included in the 2008 divestitures were the following, which were a condition of the EU Commission's approval of our Groupe Danone S.A. global LU biscuit
business ("LU Biscuit") acquisition:
• We divested a biscuit operation in Spain. From this divestiture, we received $86 million in net proceeds and recorded pre-tax losses of $74
million.
• We divested another biscuit operation in Spain and a trademark in Hungary that we had previously acquired as part of the LU Biscuit acquisition.
As such, the impacts of these divestitures were reflected as adjustments to the purchase price allocations.
These gains and losses on divestitures do not reflect the related asset impairment charges discussed in Note 5, Goodwill and Intangible Assets.
The aggregate operating results of the divestitures discussed above, other than the divestiture of the Frozen Pizza and Post cereals businesses, were not
material to our financial statements in any of the periods presented. Refer to Note 16, Segment Reporting, for details of the gains and losses on divestitures by
segment.
Note 3. Inventories:
Inventories at December 31, 2010 and 2009 were:
2010 2009
(in millions)
Raw materials $ 1,743 $ 1,410
Finished product 3,567 2,365
Inventories, net $ 5,310 $ 3,775
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