Sara Lee 2010 Annual Report Download

Download and view the complete annual report

Please find the complete 2010 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 96

  • 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
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

STRONGER
SIMPLER
BETTER
2010 Annual Report

Table of contents

  • Page 1
    S TRONGER SIMPLER BETTER 2010 Annual Report

  • Page 2
    Financial highlights Dollars in millions except per share data Years ended July 3, 2010 1 June 27, 2009 1 % Change Results of Operations Continuing operations Net sales Income before income taxes Income Income attributable to Sara Lee Income per share of common stock - diluted Income (loss) ...

  • Page 3
    ... continued to build better capabilities across the company. Our objective: operational excellence in everything we do. Sara Lee is stronger than ever. And we're in a great position to continue to improve our business, accelerate our growth and deliver strong, long-term results. Sara Lee Corporation...

  • Page 4
    ... brands. Market share performance is a good indicator of our progress. In North American Retail, share grew in 10 of our 12 core categories in fiscal 2010. In North American Fresh Bakery, we saw branded share gains recently in spite of a highly competitive environment. And, in International Beverage...

  • Page 5
    ... 2010, we raised our adjusted earnings per share guidance three times and ultimately exceeded it at year-end. We saw adjusted operating segment income increase in most of our segments, highlighted by strong improvement in our two largest businesses: North American Retail and International Beverage...

  • Page 6
    ..., with leading brand positions in retail and foodservice across North America and internationally. We have sharpened our focus on innovation, brand building and operational excellence to grow our business in three large and dynamic categories: meat, bakery and coffee. 4 Sara Lee Corporation

  • Page 7
    ...markets around the world. In the United States, we are known for innovative, high-quality, fresh and frozen bakery products, customer excellence and the power of the Sara Lee brand. We are also a leader in foodservice bakery with our Sara Lee and Chef Pierre pies, cakes and desserts. Internationally...

  • Page 8
    ...management, marketing discipline to supply chain efficiency, we are building a better Sara Lee. Much-improved processes have made us more nimble, with a lower cost structure and a greater ability to reinvest in our business, people, brands and future growth. We'll continue to focus on this. Sara Lee...

  • Page 9
    ... know our consumers, shoppers and customers. The insights we gain are key inputs for our product innovation, marketing and sales programs. 1 KN OW RE IN V E S T We reinvest in our business to drive future growth. R&D, brand building and supply chain improvement are critical to sustaining long-term...

  • Page 10
    ... The Senseo brand continues to launch exciting new coffee pods and machines. Another example: more and more consumers enjoy a cup of espresso made with Nespresso® * coffee machines. With L'OR 8 Sara Lee Corporation * Trademark owned by third parties not connected to Sara Lee Coffee & Tea France.

  • Page 11
    ... any waste. Sara Lee' s coffee innovations come in different shapes and formats. L'OR Espresso capsules were successfully launched in the French retail channel. Douwe Egberts Aromettes is a new way of brewing drip-filter coffee. Each bean-shaped scoop of compressed coffee is good for one delicious...

  • Page 12
    ... of a growing market. Lunch meat is a large, growing and profitable category, both for Sara Lee and its customers. With our well-known Hillshire Farm and Sara Lee brands, lunch meat is a key area of strength and a long-term growth driver for the company. We are currently investing in a state-of-the...

  • Page 13
    ... made with Eco-Grain wheat. Premium-quality, lower-sodium lunch meats from Hillshire Farm and Sara Lee - brands people know and trust - focus on the consumer's desire for better-for-you food options. Sara Lee will continue to focus on this important food trend. And we are further strengthening our...

  • Page 14
    ...'s number-one protein breakfast brand, with a full line of tasty and convenient products that include breakfast sausage, sandwiches, omelets, skillets and bowls. Thoughtfully responding to consumers' changing needs, the Jimmy Dean brand has grown rapidly over the past few years. Jimmy Dean D-lights...

  • Page 15
    We continue to introduce other exciting breakfast products under the Jimmy Dean brand, such as Jimmy D's , a new line of hearty, satisfying breakfast products that combine wholesome turkey sausage with the taste kids love. All products are under 210 calories per serving and are a good or excellent ...

  • Page 16
    Accelerating productivity everywhere. Across Sara Lee, we are constantly looking for a better way to approach everything we do. We call it continuous improvement. Improvement is an ongoing effort at Sara Lee: simplifying our business model, increasing process efficiencies and reducing our costs. ...

  • Page 17
    ... American Fresh Bakery business, for instance, by increasing our local market scale and reducing business complexity. We lowered the number of different breads, buns and rolls we produce and sharpened our sales and operations planning. And we continue to introduce innovative, value-added products...

  • Page 18
    ... wellness and nutrition, actively supporting the communities in which our people live and work, and protecting our planet. You can read more about our programs and initiatives in the 2010 sustainability report, available on our Web site at www.saralee.com/sustainability. 16 Sara Lee Corporation

  • Page 19
    ... sheets 54 Consolidated statements of equity 55 Consolidated statements of cash flows 56 Notes to financial statements 89 Report of independent registered public accounting firm 90 Management's report 91 Performance graph 92 Directors and senior corporate officers 93 Investor information Sara Lee...

  • Page 20
    Financial summary Dollars in millions except per share data Years ended July 3, 2010 1 June 27, 2009 June 28, 2008 June 30, 2007 July 1, 2006 Results of Operations Continuing operations Net sales Operating income Income before income taxes Income (loss) Income (loss) attributable to Sara Lee ...

  • Page 21
    ... price increases with pricing actions and to offset any operating costs increases with continuous improvement savings. The company's business results are also heavily influenced by changes in foreign currency exchange rates. For the most recently completed fiscal year, approximately 40% of net sales...

  • Page 22
    .... Adjusted net sales declined 2.8%. • Reported operating income for the year was $918 million, an increase of $431 million, which resulted from a $286 million reduction in impairment charges, improved operating results for the North American Retail and International Beverage business segments and...

  • Page 23
    ... investments held by the corporation. More information regarding impairment charges can be found in Note 4 to the Consolidated Financial Statements, "Impairment Charges." The reported results were also impacted by certain discrete tax matters that affect comparability. They include audit settlements...

  • Page 24
    Financial review Impact of Significant Items on Income from Continuing Operations and Net Income Year ended July 3, 2010 In millions except per share data Pretax Impact Net Income Diluted EPS Impact 1 Pretax Impact Year ended June 27, 2009 Net Income Diluted EPS Impact 1 Pretax Impact Year ended ...

  • Page 25
    ...Adjusted operating income Net Sales Net sales in 2010 were $10,793 million, a decrease of $89 million, or 0.8% versus 2009. Net sales were impacted by changes in foreign currency exchange rates, particularly the European euro, Brazilian real and Australian dollar, which increased reported net sales...

  • Page 26
    ...employee benefit costs and a shift in product sales mix, which was partially offset by pricing actions. Selling, General and Administrative Expenses In millions 2010 2009 2008 Operating Income Operating income increased by $431 million, or 88.6% in 2010. The year-over-year net impact of the changes...

  • Page 27
    ... Financial Statements, "Exit, Disposal and Transformation Activities." In 2010 and 2009, the North American Fresh Bakery segment recognized charges to establish estimated partial withdrawal liabilities as a result of the cessation of contributions to two multi-employer pension plans. The corporation...

  • Page 28
    ... household and body care businesses. The corporation expects to incur charges in future fiscal years from the remittance of foreign earnings. See the discussion of Repatriation of Foreign Earnings and Income Taxes in the Liquidity section of Management's Discussion and Analysis for more information...

  • Page 29
    ... its common stock as part of an ongoing share repurchase program. The corporation repurchased 36.4 million shares in 2010, 11.4 million shares in 2009 and 19.7 million shares in 2008. Discontinued Operations The results of the corporation's household and body care and Mexican meats businesses, which...

  • Page 30
    ... pies, cakes, cheesecakes and other desserts. The major brands include Hillshire Farm, Ball Park, Jimmy Dean, Sara Lee and State Fair. North American Fresh Bakery sells a wide variety of fresh bakery products to retail and institutional customers in North America including bread, buns, bagels, rolls...

  • Page 31
    ... 2009 2008 Income (loss) from continuing operations before income taxes North American Retail North American Fresh Bakery North American Foodservice International Beverage International Bakery Total operating segment income Amortization of intangibles General corporate expenses Other Mark-to-market...

  • Page 32
    ... Items by Business Segment In millions 2010 2009 2008 North American Retail North American Fresh Bakery North American Foodservice International Beverage International Bakery Impact on the business segments General corporate expenses Impact on income from continuing operations before income taxes...

  • Page 33
    ... operating segment income increased $70 million, or 38.7%, due to the favorable impact of pricing actions; savings from continuous improvement programs; and an improved product mix; which were partially offset by higher commodity, labor and fuel costs and lower unit volumes. Sara Lee Corporation...

  • Page 34
    Financial review North American Fresh Bakery Dollar Change Percent Change Dollar Change Percent Change In millions 2010 2009 2009 2008 Net sales Less: Increase/(decrease) in net sales from Impact of 53rd week Adjusted net sales Operating segment income Less: Increase/(decrease) in operating ...

  • Page 35
    ... impact on the year-over-year profit comparisons in the beverage category beginning in 2011. Operating segment income increased by $89 million. The net impact of the change in impairment charges, pension curtailment gain and exit activities, asset and business dispositions, accelerated depreciation...

  • Page 36
    ... to price increases. Unit volumes in the foodservice channel decreased slightly due in part to a decline in liquid coffee concentrates. Operating segment income decreased by $58 million, or 10.5%. Changes in foreign currency exchange rates decreased operating segment income by $41 million. The net...

  • Page 37
    ... operating segment income decreased by $7 million, or 13.0%, due to the negative impact of pricing actions, lower unit volumes, and an unfavorable sales mix shift to lower margin products partially offset by lower commodity costs and continuous improvement savings. 2009 versus 2008 Net sales...

  • Page 38
    ... spending in 2010 was to expand meat production capacity in North American Retail and to implement new software to improve North American operations. The corporation expects capital expenditures for property and equipment to be approximately $400 - $450 million in 2011, an increase over 2010 due to...

  • Page 39
    ... Sara Lee made substantial progress toward divesting its International Household and Body Care businesses in fiscal 2010. The company announced and closed transactions for the divestiture of the Indian insecticides business to Godrej for â,¬185 million in the fourth quarter of 2010 and the air care...

  • Page 40
    ... Lee's board of directors intends to maintain and gradually increase the corporation's current $0.44 per share annualized dividend. The previously announced $200 million voluntary cash contribution to the company's pension plans was made in the fourth quarter of fiscal 2010. The company continues...

  • Page 41
    ... reinvest overseas earnings primarily attributable to existing overseas cash and the book value of the household and body care businesses. Cash and Equivalents, Short-Term Investments and Cash Flow The corporation's cash balance of $955 million at the end of 2010 was invested in interest-bearing...

  • Page 42
    ... & Poor's, Moody's Investors Service and FitchRatings, as of July 3, 2010, were as follows. Senior Unsecured Obligations Off-Balance Sheet Arrangements The off-balance sheet arrangements that are reasonably likely to have a current or future effect on the corporation's financial condition are lease...

  • Page 43
    ... future periods using interest rates in effect at the end of 2010. See Note 12 to the Consolidated Financial Statements for further details on the corporation's long-term debt. Purchase obligations include expenditures to purchase goods and services in the ordinary course of business for production...

  • Page 44
    ... location could impact the corporation's operations, cash flows and liquidity. Foreign Exchange, Interest and Commodity Risks The corporation is exposed to market risk from changes in foreign currency exchange rates, interest rates and commodity prices. To mitigate the risk from interest rate...

  • Page 45
    ... also adjusts the previous year's operating segment income for the impact of any changes in foreign currency exchange rates. Critical Accounting Estimates The corporation's summary of significant accounting policies is discussed in Note 2 to the Consolidated Financial Statements. The application of...

  • Page 46
    ... on the balance sheet at the lower of cost or market. Obsolete, damaged and excess inventories are carried at net realizable value. Historical recovery rates, current market conditions, future marketing and sales plans and spoilage rates are key factors used by the corporation in assessing the...

  • Page 47
    ... units that continue to carry significant Earthgrains goodwill balances at the end of 2010 include North American foodservice bakery with $476 million, North American fresh bakery with $288 million, and International Bakery France with $162 million. Although we currently believe the operations...

  • Page 48
    ... items can have a material impact on income tax expense, net income and liquidity in future periods: • The spin off of the Hanesbrands business that was completed in 2007 has resulted in an increase in the corporation's effective tax rate as the operations that were spun off had, historically...

  • Page 49
    ...value of the household and body care businesses. In its determination of which foreign earnings are permanently reinvested, the corporation considers numerous factors, including the financial requirements of the U.S. parent company, the financial requirements of its foreign subsidiaries, and the tax...

  • Page 50
    ...The corporation's defined benefit pension plans had a net unamortized actuarial loss of $1,143 million in 2010 and $883 million in 2009. The unamortized actuarial loss is reported in the "Accumulated other comprehensive loss" line of the Consolidated Balance Sheet. The increase in the net actuarial...

  • Page 51
    ... pension plans. It is reasonably likely that changes in these external factors will result in changes to the assumptions used by the corporation to measure plan obligations and net periodic benefit cost in future periods. Issued but not yet Effective Accounting Standards Following is a discussion...

  • Page 52
    ..., political developments, interest and inflation rates, accounting standards, taxes and laws and regulations in markets where the corporation competes. Sara Lee undertakes no obligation to publicly update any forwardlooking statements, whether as a result of new information, future events or...

  • Page 53
    Consolidated statements of income Dollars in millions except per share data Years ended July 3, 2010 June 27, 2009 June 28, 2008 Continuing Operations Net sales Cost of sales Selling, general and administrative expenses Net charges for exit activities, asset and business dispositions Impairment ...

  • Page 54
    ... balance sheets Dollars in millions except per share data July 3, 2010 June 27, 2009 Assets Cash and equivalents Trade accounts receivable, less allowances of $69 in 2010 and $72 in 2009 Inventories Finished goods Work in process Materials and supplies Current deferred income taxes Other current...

  • Page 55
    ... payable Accounts payable Accrued liabilities Payroll and employee benefits Advertising and promotion Income taxes payable and current deferred taxes Other accrued liabilities Current maturities of long-term debt Liabilities held for sale Total current liabilities Long-term debt Pension obligation...

  • Page 56
    ... Stock issuances - restricted stock Stock option and benefit plans Share repurchases and retirement Pension/Postretirement - adjustment to change in measurement date, net of tax of $7 ESOP tax benefit, redemptions and other Balances at June 27, 2009 Net income Translation adjustments, net of tax...

  • Page 57
    ... income taxes Pension payments, net of expense Other Change in current assets and liabilities, net of businesses acquired and sold Trade accounts receivable Inventories Other current assets Accounts payable Accrued liabilities Accrued taxes Net cash from operating activities Investment Activities...

  • Page 58
    ...and liabilities of discontinued operations are aggregated and reported on separate lines of the Consolidated Balance Sheets. Financial Statement Corrections During the fourth quarter of 2010, the corporation corrected two errors which reduced net income by $10 million in 2010. One adjustment related...

  • Page 59
    ... administrative expenses" line in the Consolidated Statements of Income. Total media advertising expense for continuing operations was $217 million in 2010, $168 million in 2009 and $187 million in 2008. Contingent Sale Proceeds The corporation sold its European cut tobacco business in 1999. Under...

  • Page 60
    ...reported on a separate line of the income statement. Prior to disposition, the assets and liabilities of discontinued operations are aggregated and reported on separate lines of the balance sheet. Gains and losses related to the sale of business components that do not meet the discontinued operation...

  • Page 61
    ... to estimate the fair values of the reporting units. In making this assessment, management relies on a number of factors to discount anticipated future cash flows, including operating results, business plans and present value techniques. In 2010, the fair value of reporting units is estimated based...

  • Page 62
    ... Balance Sheet. The funded status is measured as the difference between the fair market value of the plan assets and the benefit obligation. Beginning in 2009, the corporation measures its plan assets and liabilities as of its fiscal year end. For a defined benefit pension plan, the benefit...

  • Page 63
    ...the "Selling, general and administrative expenses" line in the Consolidated Statements of Income. Derivatives are recorded in the Consolidated Balance Sheets at fair value in other assets and other liabilities. For more information about accounting for derivatives see Note 15, "Financial Instruments...

  • Page 64
    ... goodwill reported in continuing operations associated with each business segment and the changes in those amounts during 2010 and 2009 are as follows: North American Retail North American Fresh Bakery North American Foodservice The year-over-year change in the value of trademarks and brand names...

  • Page 65
    ... operations of the International Bakery segment. North American Foodservice and International Bakery Goodwill In 2008, the corporation concluded that the carrying amounts of the North American foodservice bakery and Spanish bakery reporting units exceeded their respective fair values. Management...

  • Page 66
    ...was sold in the third quarter of 2008. As a result of the planned disposition of the body care, European detergents and air care businesses, the corporation anticipates a significant reduction in the expected years of future service for the employees associated with a defined benefit pension plan in...

  • Page 67
    ... for sale as of July 3, 2010 and June 27, 2009, which primarily consists of the net assets of the international household and body care businesses. July 3, 2010 June 27, 2009 In millions After Tax Gain (Loss) In millions 2010 Godrej Sara Lee joint venture Other Total 2008 Mexican Meats $«(23...

  • Page 68
    ... expenses is summarized as follows: In millions 2010 2009 2008 North American Retail North American Fresh Bakery North American Foodservice International Beverage International Bakery Decrease in business segment income Increase in general corporate expenses Total $÷÷4 - 10 12 47 73 34 $107...

  • Page 69
    ... following: • Implemented a plan to terminate 969 employees primarily related to the European beverage and bakery operations and the fresh bakery operations and corporate office group in North America and provide them with severance benefits in accordance with benefit plans previously communicated...

  • Page 70
    ... of certain planned termination actions which increased income from continuing operations before income taxes by $1 million and are reported in the "Net charges for exit activities, asset and business dispositions" line of the Consolidated Statements of Income. As of July 3, 2010, the accrued...

  • Page 71
    ...-pricing model and the following weighted average assumptions: 2010 2009 2008 Balance at June 30, 2007 Goodwill Redenomination Disposition of Mexican Meat business Amortization of net actuarial loss and prior service credit Net actuarial gain arising during the period Other comprehensive income...

  • Page 72
    ... except per share data 2010 2009 2008 Stock Unit Awards Number of options exercisable at end of fiscal year Weighted average exercise price of options exercisable at end of fiscal year Weighted average grant date fair value of options granted during the fiscal year Total intrinsic value of options...

  • Page 73
    ... 25 2,784 (46) $2,738 Income (loss) from continuing operations attributable to Sara Lee Income (loss) from discontinued operations attributable to Sara Lee Gain (loss) on sale of discontinued operations Net income (loss) attributable to Sara Lee Average shares outstanding - basic Dilutive effect of...

  • Page 74
    Notes to financial statements The corporation has a $1.85 billion five-year revolving credit facility expiring in December 2011 that had an annual fee of 0.08% as of July 3, 2010. Pricing under this facility is based on the corporation's current credit rating. As of July 3, 2010, the corporation did...

  • Page 75
    ... products companies. These investigations usually continue for several years and, if violations are found, may result in substantial fines. In connection with these investigations, Sara Lee's household and body care business operating in Europe has received requests for information, made employees...

  • Page 76
    ... with a tax dispute in that country, which has been released subsequent to year end. In 2010, the corporation recognized a $26 million charge for a Mexican tax indemnification related to the corporation's direct selling business that was sold in 2006. 74 Sara Lee Corporation and Subsidiaries

  • Page 77
    ... classified as mark-to-market hedges are reported in earnings in either the "Cost of sales" or "Selling, general and administrative expenses" lines of the Consolidated Statements of Income where the change in value of the underlying transaction is recorded. Sara Lee Corporation and Subsidiaries 75

  • Page 78
    ... Statements of Cash Flows as an operating cash flow, while those derivatives that utilize the mark-to-market hedge accounting model are reported in investing activities when those contracts are realized in cash. Fixed to floating rate swaps are reported as a component 76 Sara Lee Corporation...

  • Page 79
    ... due from customers that the corporation considers highly leveraged were $103 million at July 3, 2010 and $138 million at June 27, 2009. Fair Value Measurements Effective the beginning of 2009, the corporation implemented new accounting guidance related to the fair value of financial assets and...

  • Page 80
    ... financial statements Information on the location and amounts of derivative fair values in the Condensed Consolidated Balance Sheet at July 3, 2010 and June 27, 2009 is as follows: Assets Other Current Assets In millions July 3, 2010 June 27, 2009 Other Non-Current Assets July 3, 2010 June 27, 2009...

  • Page 81
    ... the plans. In 2010, the corporation also recognized a curtailment loss of $10 million associated with its household and body care businesses as a result of the expected decline in expected years of future service. This amount is being reported as part of the results of discontinued operations. See...

  • Page 82
    ... exchange End of year Funded status Amounts recognized on the consolidated balance sheets Noncurrent asset Accrued liabilities Pension obligation Net liability recognized Amounts recognized in accumulated other comprehensive income Unamortized prior service cost Unamortized actuarial loss, net Total...

  • Page 83
    ... of pension plan assets based on fair value as of the respective year-end measurement dates is as follows: 2010 2009 Asset category Equity securities Debt securities Real estate Cash and other Total 16% 74 3 7 100% 24% 63 3 10 100% The overall investment objective is to manage the plan assets so...

  • Page 84
    ... the Consolidated Statements of Income. The charges for both years was recognized in the results of the North American Fresh Bakery segment. Note 17- Postretirement Health-Care and Life-Insurance Plans The corporation provides health-care and life-insurance benefits to certain retired employees and...

  • Page 85
    ...Beginning of year Service cost Interest cost Net benefits paid Plan participant contributions Actuarial (gain) loss Elimination of early measurement date Plan amendments Foreign exchange End of year Fair value of plan assets Funded status Amounts recognized on the consolidated balance sheets Accrued...

  • Page 86
    ... increase in income from continuing operations before income taxes and a tax charge of $121 million related to the corporation's decision to no longer reinvest overseas earnings primarily attributable to existing overseas cash and the book value of the household and body care businesses. Partially...

  • Page 87
    ... year-ends were as follows: In millions 2010 2009 Deferred tax (assets) Pension liability Employee benefits Unrealized foreign exchange Nondeductible reserves Net operating loss and other tax carryforwards Other Gross deferred tax (assets) Less valuation allowances Net deferred tax (assets...

  • Page 88
    ... Beverage sells coffee and tea products in major markets around the world, including Europe, Australia and Brazil. • International Bakery sells a variety of bakery and dough products to retail and foodservice customers in Europe and Australia. The corporation's management uses operating segment...

  • Page 89
    ... Results by Business Segment section of the Financial Review for additional information regarding these amounts. In millions 2010 2009 2008 Assets North American Retail North American Fresh Bakery North American Foodservice International Beverage International Bakery Net assets held for sale...

  • Page 90
    ...Note 21 - Quarterly Financial Data (Unaudited) The corporation's quarterly results for 2010 and 2009 are as follows: Close 2010 Continuing operations Net sales Gross profit Income (loss) Income (loss) per common share Basic Diluted Net income (loss) Net income (loss) per common share Basic Diluted...

  • Page 91
    ... financial statements and on the Company's internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits...

  • Page 92
    ...operating effectiveness of its internal control over financial reporting. Management of the corporation reviewed the results of its assessment with the Audit Committee of our Board of Directors. Based on the corporation's assessment, management has concluded that, as of July 3, 2010, the corporation...

  • Page 93
    ... was equivalent to the percentage of Sara Lee's operating profits in its food and beverage businesses and its household products business, respectively, for the preceding year. Sara Lee's operating profit is calculated using the current year's financial statement presentation, which may be adjusted...

  • Page 94
    ... vice president, chief executive officer, North American Retail and Foodservice Brett J. Hart, 41 Executive vice president, general counsel and corporate secretary Vincent H.A.M. Janssen, 57 Executive vice president, chief executive officer, International Household and Body Care Frank van Oers, 51...

  • Page 95
    ... invest additional cash amounts in Sara Lee Corporation common stock. A complete Plan prospectus as well as other shareholder services forms can be found on our Web site at www.saralee.com in the Investor Relations section (Shareholder Services/Account Access) or you can request further information...

  • Page 96
    Sara Lee Corporation 3500 Lacey Road Downers Grove, IL 60515-5424 + 1.800.SARA.LEE + 1.630.598.6000 www.saralee.com