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28
Meals & Desserts
For the Years Ended
December 28,
2013 December 29,
2012 $ Change % Change
(in millions)
Net revenues $ 2,305 $ 2,311 $ (6) (0.3)%
Organic Net Revenues(1) 2,305 2,311 (6) (0.3)%
Segment operating income 665 712 (47) (6.6)%
For the Years Ended
December 29,
2012 December 31,
2011 $ Change % Change
(in millions)
Net revenues $ 2,311 $ 2,271 $ 40 1.8 %
Organic Net Revenues(1) 2,311 2,242 69 3.1 %
Segment operating income 712 722 (10) (1.4)%
(1) See the Non-GAAP Financial Measures section at the end of this item.
2013 compared with 2012:
Net revenues and Organic Net Revenues decreased 0.3%, due to unfavorable volume/mix (3.2 pp), partially offset
by higher net pricing (2.9 pp). Unfavorable volume/mix was due primarily to lower shipments of ready-to-eat
desserts. Higher net pricing was driven primarily by pricing actions in dinners.
Segment operating income decreased 6.6%, due primarily to higher marketing spending as well as unfavorable
volume/mix. This decrease was partially offset by pricing actions in dinners and lower overhead costs.
2012 compared with 2011:
Net revenues increased 1.8%, despite the impact of the 53rd week of shipments in 2011 (1.3 pp). Organic Net
Revenues increased 3.1%, driven by higher net pricing (1.6 pp) and favorable volume/mix (1.5 pp, including a
favorable impact from customer trade inventory reductions). Higher net pricing was due primarily to pricing actions
in dinners. Favorable volume/mix was driven by higher shipments in dinners due in part to new products, partially
offset by lower shipments of ready-to-eat desserts.
Segment operating income decreased 1.4%, due primarily to costs incurred for the Restructuring Program,
unfavorable volume/mix driven by ready-to-eat desserts, and unfavorable pricing net of commodity costs. This
decrease was partially offset by lower overhead costs and lower manufacturing costs driven by net productivity.