Sara Lee 2008 Annual Report Download - page 61

Non-cancelable
Employee Lease and Asset and
Termination Other Losses on Business Transformation Vacation
and Other Contractual Abandonment Disposition Accelerated Costs – IT Policy
In millions Benefits Obligations of Assets Actions Depreciation and Other Change Total
Exit and disposal costs recognized during 2006 $159 $«8 $«6 $«(80) $«39 $«159 $(14) $«277
Cash payments (42) (6) – (31) – (117) – (196)
Charges against assets and other non-cash charges – – (6) – (39) (26) 14 (57)
Asset and business disposition gains (losses) –––119–––119
Foreign exchange impacts 3––––––3
Accrued costs as of July 1, 2006 1202–8–16–146
Cash payments (59) (2) – (8) – (15) – (84)
Change in estimate (6)3–––––(3)
Foreign exchange impacts 5––––––5
Accrued costs as of June 30, 2007 603–––1–64
Cash payments (28) (1) – – – (1) – (30)
Change in estimate 1–––––-–1
Foreign exchange impacts 8––––––8
Accrued costs as of June 28, 2008 $««41 $«2 $«– $««««– $«««– $«««««– $«««– $«««43
The following table summarizes the employee terminations
by location and business segment.
North North
American American Household
Retail Retail International International and
Number of employees Meats Bakery Foodservice Beverage Bakery Body Care Corporate Total
United States 32827194––225720
Canada –––––1–1
Europe – – – 675 138 182 1 996
Australia – – – 38 17 73 – 128
Asia –––––28–28
328 271 94 713 155 286 26 1,873
Other Restructuring Actions In prior periods, the corporation had
approved and completed various actions to exit certain defined
business activities and lower its cost structure.
During 2007, adjustments were made to certain accrued obliga-
tions remaining for these completed actions. These adjustments
related to the final settlement of certain planned termination actions
for amounts more favorable than originally anticipated. These adjust-
ments resulted in an increase of $3 to income from continuing
operations before income taxes and are reported in the “Net charges
for exit activities, asset and business dispositions” line of the
Consolidated Statements of Income.
During 2006, adjustments were made to certain accrued obliga-
tions remaining for these completed actions. These adjustments
related to the final settlement of certain planned termination actions
for amounts more favorable than originally anticipated. These
adjustments resulted in an increase of $7 to income from continuing
operations before income taxes and are reported in the “Net charges
for exit activities, asset and business dispositions” line of the
Consolidated Statements of Income.
As of June 28, 2008, the accrued liabilities remaining in the
Consolidated Balance Sheet related to these completed actions total
$7 and represent certain severance obligations. These accrued
amounts are expected to be satisfied in cash and will be funded from
operations. In 2008 there were no significant adjustments made
to these reserves.
Note 6 – Common Stock
Changes in outstanding shares of common stock for the past three
years were:
Shares in thousands 2008 2007 2006
Beginning balances 724,433 760,980 785,895
Stock issuances
Stock option and benefit plans 1,163 2,556 1,613
Restricted stock plans 320 2,514 3,481
Other 112 113 63
Reacquired shares (19,669) (41,730) (30,072)
Ending balances 706,359 724,433 760,980
Sara Lee Corporation and Subsidiaries 59