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26
Segment operating income decreased 42.2%, due primarily to costs incurred for the Restructuring Program,
unfavorable volume/mix, unfavorable pricing net of commodity costs, and higher marketing spending. This was
partially offset by lower overhead costs.
Cheese
For the Years Ended
December 28,
2013 December 29,
2012 $ Change % Change
(in millions)
Net revenues $ 3,925 $ 3,829 $ 96 2.5 %
Organic Net Revenues(1) 3,874 3,817 57 1.5 %
Segment operating income 634 618 16 2.6 %
For the Years Ended
December 29,
2012 December 31,
2011 $ Change % Change
(in millions)
Net revenues $ 3,829 $ 3,788 $ 41 1.1 %
Organic Net Revenues(1) 3,817 3,742 75 2.0 %
Segment operating income 618 629 (11) (1.7)%
(1) See the Non-GAAP Financial Measures section at the end of this item.
2013 compared with 2012:
Net revenues increased 2.5%, which includes the impact of higher sales to International (1.0 pp).
Organic Net Revenues increased 1.5%, driven primarily by favorable volume/mix (1.6 pp) as higher shipments of
natural cheese and sandwich cheese were partially offset by lower shipments of snacking cheese, due in part to a
voluntary string cheese recall.
Segment operating income increased 2.6% as lower marketing spending, lower overhead costs, favorable volume/
mix, and lower manufacturing costs driven by net productivity were partially offset by unfavorable pricing net of
commodity costs.
2012 compared with 2011:
Net revenues increased 1.1%, despite the impact of the 53rd week of shipments in 2011 (1.2 pp). Organic Net
Revenues increased 2.0%, driven primarily by higher net pricing (2.4 pp) in the grated, specialty, recipe, and
natural cheese categories.
Segment operating income decreased 1.7%, due primarily to costs incurred for the Restructuring Program and
higher marketing spending, partially offset by higher net pricing and lower manufacturing costs driven by net
productivity.