Kraft 2012 Annual Report Download - page 28

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The increase in interest and other expense, net was due to the $6.0 billion debt issuance in June 2012, the $3.6 billion
debt exchange in July 2012, and the $0.4 billion transfer of debt from Mondele¯z International in October 2012.
Diluted EPS for the year ended December 29, 2012 decreased $0.03 per share due to the dilutive impact of stock-based
awards outstanding. Diluted EPS for the year ended December 31, 2011 did not include the impact of these awards as
they were not outstanding prior to the Spin-Off.
The market-based impacts to postemployment benefit plans reflect our new strategy to follow a mark-to-market accounting
policy for our postemployment benefit obligations. For a description of this accounting policy change, see Critical
Accounting Policies - Postemployment Benefit Plans later in this section.
2011 compared with 2010
For the Years Ended
December 31,
2011
December 31,
2010 $ change % change
(in millions, except per
share data)
Net revenues $ 18,655 $ 17,797 $ 858 4.8%
Operating income 2,828 2,965 (137) (4.6%)
Earnings from continuing operations 1,775 1,890 (115) (6.1%)
Net earnings 1,775 3,534 (1,759) (49.8%)
Diluted EPS from continuing operations 3.00 3.20 (0.20) (6.0%)
Diluted EPS 3.00 5.98 (2.98) (49.8%)
Net Revenues - Net revenues increased $858 million (4.8%) to $18,655 million in 2011, and Organic Net Revenues(1)
increased $976 million (5.7%) to $18,147 million as follows:
For the Years Ended
December 31,
2011
December 31,
2010 $ Change % Change
(in millions)
Net revenues $ 18,655 $ 17,797 $ 858 4.8%
Impact of divestitures (91) (547) 456 2.8pp
Impact of the 53rd week of shipments in 2011 (226) - (226) (1.3)pp
Impact of foreign currency (91) - (91) (0.5)pp
Sales to Mondele¯ z International (100) (79) (21) (0.1)pp
Organic Net Revenues (1) $ 18,147 $ 17,171 $ 976 5.7%
Volume/mix $ (140) (0.8)pp
Net pricing $ 1,116 6.5pp
(1) Please see the Non-GAAP Financial Measures section at the end of this item.
Organic Net Revenue grew across all segments, driven by higher net pricing, partially offset by unfavorable volume/mix.
Higher net pricing was reflected in all segments as we increased pricing to offset higher commodity costs. Unfavorable
volume/mix was driven by lower shipments in the Grocery, Cheese, Refrigerated Meals, and International & Foodservice
segments, partially offset by higher shipments in the Beverages segment and favorable mix in the International &
Foodservice segment. Divestitures (primarily the Starbucks CPG business and the Frozen Pizza business) had an
unfavorable impact of $456 million on net revenues. The 53rd week of shipments in 2011 increased net revenues by $226
million. Favorable foreign currency increased net revenues by $91 million, due to the strength of the Canadian dollar
relative to the U.S. dollar, and net revenues rose $21 million from higher sales to Mondele¯ z International.
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