Sara Lee 2013 Annual Report Download - page 25

The Hillshire Brands Company 23
IMPACT OF SIGNIFICANT ITEMS ON INCOME FROM CONTINUING OPERATIONS,
NET INCOME AND DILUTED EARNINGS PER SHARE
Year ended June 29, 2013 Year ended June 30, 2012 Year ended July 2, 2011
Pretax Diluted Pretax Diluted Pretax Diluted
In millions except per share data Impact Net Income EPS Impact 1Impact Net Income EPS Impact 1Impact Net Income EPS Impact 1
Significant items affecting comparability of income
from continuing operations and net income
Continuing operations
Severance/retention charges $÷(4) $÷(2) $(0.02) $÷(31) $÷(20) $(0.17) $÷÷(40) $«(25) $(0.20)
Lease & contractual obligation exit costs (12) (8) (0.06) (55) (35) (0.29) – – –
Consulting, advisory & other costs (38) (25) (0.20) (110) (84) (0.70) (34) (27) (0.22)
Income from asset dispositions 6 4 0.03 – – – – – –
Accelerated depreciation (29) (18) (0.15) (46) (29) (0.25) (2) (1) (0.01)
Total restructuring actions (77) (49) (0.40) (242) (168) (1.40) (76) (53) (0.42)
Other
Impairment charges (1) (1) (0.01) (14) (9) (0.07) (15) (9) (0.08)
Litigation accrual – – – (11) (7) (0.06) – – –
Gain on HBI tax settlement – – – 15 15 0.12 – – –
Pension curtailment/withdrawal/other (5) (3) (0.03) (6) (4) (0.03) – – –
Foreign tax indemnification charge 10 10 0.08 3 4 0.03 – – –
Workers’ compensation deposit adjustment 7 5 0.04 – – – – – –
Debt extinguishment costs – – – (39) (25) (0.21) (55) (35) (0.28)
Impact on income from continuing
operations before income taxes (66) (38) (0.31) (294) (194) (1.62) (146) (97) (0.78)
Significant tax matters
Tax audit settlements/reserve adjustments – 10 0.09 – 1 0.01 – 4 0.03
Impact on income from continuing operations (66) (28) (0.23) (294) (193) (1.61) (146) (93) (0.75)
Discontinued operations
Severance/retention charges – – – (73) (55) (0.46) (136) (97) (0.78)
Consulting, advisory & other costs (3) (2) (0.02) (145) (105) (0.87) (48) (37) (0.31)
Lease & contractual obligation exit costs – – – (108) (79) (0.66) – – –
Accelerated depreciation – – – – – – (3) (2) (0.02)
Impairment charges – – – (414) (365) (3.05) (6) (5) (0.04)
Pension curtailment/withdrawal 1 1 – (6) (3) (0.02) (1) (1) (0.01)
Thailand flood loss – – – (2) (1) (0.01) – – –
Indirect tax reserve – Brazil – – – (1) (1) (0.01) – – –
Antitrust (provision)/reversal – – – – – – 27 18 0.15
Licensing agreement termination charge – – – – – – (39) (27) (0.21)
Gain on sale of discontinued operations 68 53 0.43 772 405 3.38 1,304 731 5.85
Tax basis difference – 4 0.03 – 186 1.56 – 120 0.96
Tax on unremitted earnings – – – – 471 3.94 – (6) (0.05)
Tax audit settlements/reserve adjustments – 1 0.01 – 80 0.67 – 23 0.18
Valuation allowance adjustment – – – – (66) (0.55) – 2 0.02
Impact on discontinued operations 66 57 0.46 23 467 3.90 1,098 719 5.76
Impact of using diluted versus basic shares – – – – – 0.07 – – –
Impact on net income $÷«– $«29 $«0.23 $(271) $«274 $«2.36 $«÷952 $626 $«5.01
Impact on income from continuing
operations before income taxes
Cost of sales $(11) $÷(28) $÷÷÷(2)
Selling, general and administrative expenses (45) (132) (36)
Exit and business dispositions (9) (81) (38)
Impairment charges (1) (14) (15)
Impact on operating income (66) (255) (91)
Debt extinguishment costs – (39) (55)
Total $(66) $(294) $÷(146)
Diluted earnings per share – continuing operations
As reported $«1.49 $(0.16) $«0.46
Less: Impact of significant items (0.23) (1.61) (0.75)
Adjusted earnings per share $«1.72 $«1.45 $«1.21
1 The 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.