Sara Lee 2008 Annual Report Download - page 80

Download and view the complete annual report

Please find page 80 of the 2008 Sara Lee annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 84

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

Reconciliation of non-GAAP measures
Reconciliation of Diluted EPS from Continuing Operations,
as Reported, to Adjusted EPS from Continuing Operations
“Adjusted EPS” excludes from diluted EPS from continuing operations,
as reported, the per share impact of tobacco sale proceeds and
significant items, net, recognized in the fiscal period presented.
With respect to fiscal 2007, adjusted EPS also includes the per
share impact of a tax benefit recognized from the sale of shares
of a subsidiary.
June 28, June 30,
Year ended 2008 2007
Diluted EPS from continuing operations, as reported $(0.06) $«0.59
Less
Net impact of significant items on income
from continuing operations (1.07) (0.13)
Tobacco sale proceeds 0.18 0.16
Add
Subsidiary tax benefit – first quarter 2007 –0.21
Adjusted EPS from continuing operations1$«0.83 $«0.77
1 EPS amounts are rounded to the nearest $0.01 and may not add to the total.
Reconciliation of Operating Income to Adjusted Operating Income
and of Operating Margin to Adjusted Operating Margin
“Adjusted operating income” excludes from the corporation’s
consolidated income from continuing operations before taxes, the
impact of significant items and businesses acquired or divested
after the start of the fiscal period and presents fiscal 2007 results
at fiscal 2008 currency exchange rates.
“Adjusted operating margin” is a non-GAAP financial measure
that equals adjusted operating income divided by adjusted net sales
of the corporation.
Dollar Percent
In millions 2008 2007 Change Change
Total Sara Lee
Net sales –
total business segments $13,263 $12,008 $1,255
Intersegment (51) (25) (26)
Net sales 13,212 11,983 1,229 10.3 %
Increase/(decrease) in
net sales from
Changes in foreign currency
exchange rates – (650) 650
Acquisition/disposition 22–
Adjusted net sales $13,210 $12,631 $÷«579 4.6 %
Total operating
segment income $÷÷«451 $÷÷«858 $÷(407) (47.4) %
Amortization of trademarks
and other intangibles (67) (64) (3)
General corporate expenses (254) (352) 98
Contingent sales proceeds 130 120 10
Operating income $÷÷«260 $÷÷«562 $÷(302) (53.6) %
Operating margin % 2.0 % 4.7 % (2.7) %
Increase/(decrease) in
operating income from
Contingent sale proceeds $÷÷«130 $÷÷«120 $÷÷«10
Changes in foreign currency
exchange rates – (81) 81
Exit activities, asset and
business dispositions (38) (94) 56
Transformation charges (51) (119) 68
Accelerated depreciation (1) (32) 31
Impairment charges (851) (172) (679)
Acquisition (1) – (1)
Adjusted operating income $÷1,072 $÷÷«940 $÷«132 13.9 %
Adjusted operating margin % 8.1 % 7.4 % 0.7 %
78 Sara Lee Corporation and Subsidiaries