Sara Lee 2008 Annual Report Download - page 12

10 Sara Lee Corporation and Subsidiaries
Financial summary
Dollars in millions except per share data Years ended June 28, 2008 1June 30, 2007 2July 1, 2006 3July 2, 2005 4July 3, 2004 5,6
Results of Operations
Continuing operations
Net sales $13,212 $11,983 $11,175 $11,115 $11,029
Operating income7260 562 416 943 1,015
Income before income taxes 160 429 189 746 824
Income (loss) (41) 440 31 616 553
Effective tax rate 125.6% (2.6) % 83.6% 17.5% 32.8%
Income (loss) per share of common stock
Basic $«÷(0.06) $÷÷0.59 $÷÷0.04 $÷÷0.78 $÷÷0.70
Diluted (0.06) 0.59 0.04 0.77 0.69
Income (loss) from discontinued operations (14) 48 123 103 719
Gain (loss) on sale of discontinued operations (24) 16 401 – –
Net income (loss) (79) 504 555 719 1,272
Net income (loss) per share of common stock
Basic (0.11) 0.68 0.72 0.91 1.61
Diluted (0.11) 0.68 0.72 0.90 1.59
Financial Position
Total assets $10,830 $11,755 $14,660 $14,540 $15,044
Total debt 3,188 4,220 5,914 4,613 5,253
Per Common Share
Dividends declared8$÷÷0.42 $÷÷0.50 $÷÷0.59 $÷÷0.79 $÷÷0.78
Book value at year-end83.98 3.51 3.22 3.28 3.34
Market value at year-end 12.18 17.40 16.02 19.65 23.17
Shares used in the determination of net income per share
Basic (in millions) 715 741 766 789 788
Diluted (in millions) 715 743 768 796 798
Other Information – Continuing Operations Only9
Net cash flow from operating activities $÷÷«596 $÷÷«404 $÷«÷405 $÷÷«521 $÷1,188
Net cash from (used in) investing activities (188) 615 704 (123) (113)
Net cash from (used in) financing activities (1,806) (857) 509 (491) (1,443)
Depreciation 398 395 389 375 375
Media advertising expense 325 313 298 333 293
Total advertising and promotion expense 594 566 531 546 518
Capital expenditures 509 598 438 395 383
Common stockholders of record 70,000 76,000 82,000 87,000 91,000
Number of employees 44,000 46,000 50,000 50,000 58,000
The amounts above include the impact of certain significant items. Significant items include exit activities, asset and business dispositions, including the spin off of the Hanesbrands
business in 2007, impairment charges, transformation charges, accelerated depreciation and amortization, hurricane losses, settlement and curtailment gains or losses, a change
in the vacation policy and various significant tax matters. Further details of these items are included in the Financial Review on page 13.
1In 2008, the impact of significant items decreased income from continuing operations before income taxes and income from continuing operations by $941 and $765, respectively.
2In 2007, the impact of significant items decreased income from continuing operations before income taxes and income from continuing operations by $417 and $90, respectively.
3In 2006, the impact of significant items decreased income from continuing operations before income taxes and income from continuing operations by $468 and $220, respectively.
4In 2005, the impact of significant items decreased income from continuing operations before income taxes by $54 and increased income from continuing operations by $169.
553-week year.
6In 2004, the impact of significant items, excluding the impact of the 53rd week, decreased income from continuing operations before income taxes and income from continuing
operations by $11 and $5, respectively.
7Operating income is reconciled between the income from each of the corporation’s business segments to income from continuing operations before income taxes in Note 22
of the Consolidated Financial Statements titled, “Business Segment Information.”
8Certain prior year amounts have been restated to correct a misstatement in dividends and common stockholders’ equity. See Note 1 of the Consolidated Financial Statements
for additional information.
9Financial amounts only include results for businesses reported in continuing operations.
The Consolidated Financial Statements and Notes and the Financial Review should be read in conjunction with the Financial Summary.