Sara Lee 2011 Annual Report Download - page 117

The amounts reported for operating segment income and
operating income may include, but are not limited to, amounts rec- ognized in the Consolidated Statements of Income for exit activities, asset and business dispositions, impairment charges, transformation/ Accelerate charges, and pension curtailment gains/losses. See the Operating Results by Business Segment section of the Financial Review for additional information regarding these amounts.
In millions 2011 2010 2009 Assets North American Retail $1,432 $1,293 $1,266 North American Foodservice 645 687 754 International Beverage 2,334 1,871 1,932 International Bakery 682 607 719 5,093 4,458 4,671 Net assets held for sale 1,676 2,614 2,827 Other12,764 1,764 1,921
Total assets $9,533 $8,836 $9,419
Depreciation North American Retail $99 $÷÷«97 $÷÷«95 North American Foodservice 40 50 41 International Beverage 95 88 91 International Bakery 22 24 25 256 259 252 Discontinued operations 35 88 109 Other 11 21 22
Total depreciation $÷«302 $÷«368 $÷«383
Additions to Long-Lived Assets North American Retail $÷«232 $÷«163 $÷«110 North American Foodservice 28 32 47 International Beverage 157 85 100 International Bakery 17 20 20 434 300 277 Other 15 6 26
Total additions to long-lived assets $÷«449 $÷«306 $÷«303
1 Principally cash and cash equivalents, certain corporate fixed assets, deferred tax assets
and certain other noncurrent assets.
The corporation’s management uses operating segment income,
which is defined as operating income before general corporate expenses and amortization of trademarks and customer relation- ship intangibles, to evaluate segment performance and allocate resources. Management believes it is appropriate to disclose this measure to help investors analyze the business performance and trends of the various business segments. Interest and other debt expense, as well as income tax expense, are centrally managed, and accordingly, such items are not presented by segment since they are not included in the measure of segment profitability reviewed by management. The accounting policies of the segments are the same as those described in Note 2 to the Consolidated Financial Statements, “Summary of Significant Accounting Policies.”
In millions 2011 2010 2009 Sales North American Retail $2,868 $2,818 $2,767 North American Foodservice 1,566 1,547 1,776 International Beverage 3,548 3,221 3,062 International Bakery 726 785 795 8,708 8,371 8,400 Intersegment (27) (32) (34)
Total $8,681 $8,339 $8,366
Operating Segment Income (Loss) North American Retail $÷«307 $÷«343 $÷«247 North American Foodservice 79 60 (20) International Beverage 452 592 493 International Bakery (12) (14) (194)
Total operating segment income 826 981 526
General corporate expenses (188) (259) (225) Mark-to-market derivative gain/(loss) 11 (13) (12) Amortization of intangibles (22) (21) (21) Contingent sale proceeds – 133 150
Total operating income 627 821 418
Net interest expense (85) (115) (120) Debt extinguishment costs (55) – – Income from continuing operations
before income taxes $÷«487 $÷«706 $÷«298
Net sales for a business segment may include sales between
segments. Such sales are at transfer prices that are equivalent to market value. Revenues from Wal-Mart Stores Inc. represent approximately $1.0 billion $1.0 billion and $900 million of the corporation’s consolidated revenues for continuing operations in 2011, 2010 and 2009, respectively. Each of the corporation’s busi- ness segments sells to this customer, except International Bakery.
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