Sara Lee 2011 Annual Report Download - page 99

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As of July 2, 2011, the accrued liabilities remaining in the
Consolidated Balance Sheet related to these completed actions
total $14 million and represent certain severance obligations.
These accrued amounts are expected to be satisfied in cash and
will be funded from operations.
Note 7 – Common Stock
Changes in outstanding shares of common stock for the past three
years were:
Shares in thousands 2011 2010 2009
Beginning balances 662,118 695,658 706,359
Stock issuances
Stock option and benefit plans 3,211 1,055 38
Restricted stock plans 1,992 1,741 543
Reacquired shares (80,221) (36,417) (11,390)
Other – 81 108
Ending balances 587,100 662,118 695,658
Common stock dividends and dividend-per-share amounts
declared on outstanding shares of common stock were:
In millions except per share data 2011 2010 2009
Common stock dividends declared $«275 $«299 $«306
Dividends per share amount declared $0.46 $0.44 $0.44
During 2010, the corporation’s Board of Directors had authorized
a $3.0 billion share repurchase program. In March of 2010, the
corporation repurchased 36.4 million shares at a cost of $500 mil-
lion under this program using an accelerated share repurchase
program (ASR). The ASR provides for a final settlement adjustment
at termination in either shares of common stock or cash based on
the final volume weighted average stock price. In 2011, the corpo-
ration paid $13 million as a final settlement on the ASR. During
2011, the corporation also repurchased 80.2 million shares at
a cost of $1.3 billion.
As of July 2, 2011, the remaining amount authorized for
repurchase is $1.2 billion of common stock under an existing share
repurchase program, plus 13.5 million shares of common stock
that remain authorized for repurchase under the corporation’s prior
share repurchase program. However, the corporation does not
expect to continue with any further share repurchases.
• Recognized costs related to the implementation of common
information systems across the organization in order to improve
operational efficiencies. These costs primarily relate to the amor-
tization of certain capitalized software costs.
• Recognized costs associated with the transition of business
support services to an outside third party vendor as part of a
business process outsourcing initiative.
The following table summarizes the net charges taken for the exit,
disposal and transformation/Project Accelerate activities approved
during 2009 and the related status as of July 2, 2011. The accrued
amounts remaining represent those cash expenditures necessary to
satisfy remaining obligations. The majority of the cash payments to
satisfy the accrued costs are expected to be paid in the next year.
The corporation does not anticipate any additional material future
charges related to the 2009 actions. The composition of these
charges and the remaining accruals are summarized below.
Employee
Termination IT and
and Other Other
In millions Benefits Costs Total
Exit, disposal and other costs
recognized during 2009 $101 $«19 $120
Charges recognized in
discontinued operations 13 3 16
Non-cash charges – (2) (2)
Cash payments (23) (14) (37)
Accrued costs as of June 27, 2009 91 6 97
Non-cash charges (3) – (3)
Cash payments (53) (2) (55)
Change in estimate (11) (1) (12)
Foreign exchange impacts (2) – (2)
Accrued costs as of July 3, 2010 22 3 25
Cash payments (10) – (10)
Change in estimate (6) – (6)
Foreign exchange impacts 1–1
Accrued costs as of July 2, 2011 $÷÷7 $÷«3 $÷10
Other Restructuring Actions Prior to 2009, the corporation had
approved and completed various actions to exit certain defined
business activities and lower its cost structure, and these actions
have had minimal impact on current year results. In 2011, adjust-
ments were made to certain accrued obligations remaining for these
completed actions. These adjustments related to the final settlement
of certain planned termination actions which decreased income
from continuing operations before income taxes by $2 million and
are reported in the “Net charges for exit activities, asset and busi-
ness dispositions” line of the Consolidated Statements of Income.
96/97 Sara Lee Corporation and Subsidiaries