Sara Lee 2009 Annual Report Download - page 20

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Financial review
18 Sara Lee Corporation and Subsidiaries
Impact of Significant Items on Income from
Continuing Operations and Net Income
Year ended June 27, 2009 Year ended June 28, 2008 Year ended June 30, 2007
Pretax Diluted EPS Pretax Diluted EPS Pretax Diluted EPS
In millions except per share data Impact Net Income Impact 1Impact Net Income Impact 1Impact Net Income Impact 1
Significant items affecting comparability
of income from continuing operations
and net income
(Charges for) income from exit activities $÷(114) $÷(81) $÷(0.12) $÷(39) $÷(25) $(0.03) $(106) $÷(69) $(0.09)
Income from (charges for) asset and
business disposition activities – (4) (0.01) 1 – – 12 10 0.01
Subtotal (114) (85) (0.12) (38) (25) (0.03) (94) (59) (0.08)
(Charges) income in cost of sales
Transformation charges – IT costs (5) (3) (0.01) (8) (5) (0.01) (10) (6) (0.01)
Accelerated depreciation – – – (1) (1) – (31) (19) (0.03)
Curtailment gain 750.01 ––– –––
Pension partial withdrawal liability charge (13) (9) (0.01) – – – – – –
(Charges) income in SG&A expenses
Transformation charges – IT costs (21) (15) (0.02) (40) (26) (0.04) (42) (27) (0.04)
Transformation/Accelerate charges – Other (18) (12) (0.02) (3) (2) – (67) (44) (0.06)
Accelerated depreciation ––– ––– (1)(1)–
Curtailment gain 1070.01 ––– –––
Gain on property disposition 14 10 0.01 – – – – – –
Pension partial withdrawal liability charge (18) (11) (0.02) – – – – – –
Balance sheet corrections 1170.01 ––– –––
Impairment charges (314) (289) (0.41) (851) (827) (1.16) (172) (145) (0.19)
Impact of significant items on income from
continuing operations before income taxes (461) (395) (0.56) (941) (886) (1.24) (417) (301) (0.41)
Significant tax matters affecting comparability
Deferred tax valuation allowance adjustment – – – – 19 0.03 – (27) (0.04)
Tax benefit on disposition of a business – – – – – – – 169 0.23
Contingent tax obligation adjustment – 15 0.02 – 103 0.14 – 67 0.09
Provision expense corrections – (19) (0.03) – 5 0.01 – – –
Tax benefit on non-recurring foreign
exchange gains –290.04 ––– –––
Other tax adjustments, net – (4) (0.01) – – – – 7 0.01
Impact on income from continuing operations (461) (374) (0.53) (941) (759) (1.06) (417) (85) (0.12)
Significant items impacting
discontinued operations
U.K. Pension plan settlement charge – – – (15) (15) (0.02) – – –
Charge for transformation expenses – – – (1) (1) – (1) (1) –
Gain (loss) on the sale of discontinued
operations, net – – – (23) (24) (0.03) 5 16 0.02
Impact of significant items on net income $÷(461) $(374) $««(0.53) $(980) $(799) $(1.12) $(413) $÷(70) $(0.09)
1The earnings per share (EPS) impact of individual amounts in the table above are rounded to the nearest $0.01 and may not add to the total.