Amount of Gain (Loss) Recognized in Earnings on Derivatives | Amount of Gain (Loss) Recognized in Earnings on Hedged Item | |||||||||||||||||
Derivatives Designated as Fair-Value Hedges | Location of Gain (Loss) Recognized in Earnings | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Interest rate swaps | Interest expense | $ | — | $ | (1 | ) | $ | — | $ | 1 |
Amount of Gain (Loss) Recognized in Earnings on Derivatives | ||||||||||
Derivatives not Designated as Hedges | Location of Gain (Loss) Recognized in Earnings | 2015 | 2014 | |||||||
Foreign exchange forward contracts | Cost of products sold | $ | 2 | $ | 3 | |||||
Foreign exchange forward contracts | Other expenses / (income) | (3 | ) | (12 | ) | |||||
Cross-currency swap contracts | Other expenses / (income) | 58 | 7 | |||||||
Commodity derivative contracts | Cost of products sold | (19 | ) | (4 | ) | |||||
Deferred compensation derivative contracts | Administrative expenses | 7 | 2 | |||||||
Total | $ | 45 | $ | (4 | ) |
2015 | 2014 | |||||||||||||||||||||||
Derivative Instrument | Gross Amounts Presented in the Consolidated Balance Sheet | Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to Netting Agreements | Net Amount | Gross Amounts Presented in the Consolidated Balance Sheet | Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to Netting Agreements | Net Amount | ||||||||||||||||||
Total asset derivatives | $ | 54 | $ | (13 | ) | $ | 41 | $ | 15 | $ | (4 | ) | $ | 11 | ||||||||||
Total liability derivatives | $ | 20 | $ | (13 | ) | $ | 7 | $ | 23 | $ | (4 | ) | $ | 19 |
2015 | 2014 | ||||||
Accounts receivable | |||||||
Customer accounts receivable | $ | 570 | $ | 597 | |||
Allowances | (13 | ) | (12 | ) | |||
Subtotal | $ | 557 | $ | 585 | |||
Other | 90 | 85 | |||||
$ | 647 | $ | 670 | ||||
Inventories | |||||||
Raw materials, containers and supplies | $ | 427 | $ | 399 | |||
Finished products | 566 | 617 | |||||
$ | 993 | $ | 1,016 | ||||
Other current assets | |||||||
Deferred taxes | $ | 115 | $ | 96 | |||
Fair value of derivatives | 32 | 15 | |||||
Other | 52 | 71 | |||||
$ | 199 | $ | 182 | ||||
Plant assets | |||||||
Land | $ | 57 | $ | 62 | |||
Buildings | 1,416 | 1,384 | |||||
Machinery and equipment | 3,802 | 3,856 | |||||
Projects in progress | 238 | 217 | |||||
Total cost | $ | 5,513 | $ | 5,519 | |||
Accumulated depreciation(1) | (3,166 | ) | (3,201 | ) | |||
$ | 2,347 | $ | 2,318 | ||||
Other assets | |||||||
Fair value of derivatives | $ | 22 | $ | — | |||
Deferred taxes | 25 | 32 | |||||
Other | 54 | 55 | |||||
$ | 101 | $ | 87 |
2015 | 2014 | ||||||
Accrued liabilities | |||||||
Accrued compensation and benefits | $ | 255 | $ | 237 | |||
Fair value of derivatives | 12 | 17 | |||||
Accrued trade and consumer promotion programs | 125 | 122 | |||||
Accrued interest | 35 | 37 | |||||
Restructuring | 54 | 31 | |||||
Other | 108 | 109 | |||||
$ | 589 | $ | 553 | ||||
Other liabilities | |||||||
Pension benefits | $ | 233 | $ | 170 | |||
Deferred compensation(2) | 104 | 109 | |||||
Postretirement benefits | 362 | 359 | |||||
Fair value of derivatives | 8 | 6 | |||||
Unrecognized tax benefits | 26 | 23 | |||||
Restructuring | 49 | — | |||||
Other | 68 | 62 | |||||
$ | 850 | $ | 729 |
(1) | Depreciation expense was $286 in 2015, $287 in 2014 and $393 in 2013. These amounts included $1 in 2013 related to discontinued operations. Buildings are depreciated over periods ranging from 7 to 45 years. Machinery and equipment are depreciated over periods generally ranging from 2 to 20 years. |
(2) | The deferred compensation obligation represents unfunded plans maintained for the purpose of providing our directors and certain of our executives the opportunity to defer a portion of their compensation. All forms of compensation contributed to the deferred compensation plans are accounted for in accordance with the underlying program. Deferrals and our contributions are credited to an investment account in the participant's name, although no funds are actually contributed to the investment account and no investments are actually purchased. Seven investment choices are available, including: (1) a book account that tracks the total return on our stock; (2) a book account that tracks the performance of the Vanguard Institutional Index; (3) a book account that tracks the performance of the Vanguard Extended Market Index; (4) a book account that tracks the performance of the Vanguard Total International Stock Index; (5) a book account that tracks the performance of the Vanguard Total Bond Market Index; (6) a book account that tracks the performance of the Vanguard Short-Term Bond Index; and (7) a book account that tracks the BlackRock Liquidity TempFund. Participants can reallocate investments daily and are entitled to the gains and losses on investment funds. We recognize an amount in the Consolidated Statements of Earnings for the market appreciation/depreciation of each fund. |
Type | Life in Years | Value | ||||||||
Trademarks | Non-amortizable | Indefinite | $ | 383 | ||||||
Customer relationships | Amortizable | 20 | 132 | |||||||
Distributor relationship | Amortizable | 7 | 2 | |||||||
Technology and patents | Amortizable | 9 | to | 17 | 43 | |||||
Formula and recipes | Amortizable | 5 | 20 | |||||||
Total identifiable intangible assets | $ | 580 |
U.S. Simple Meals | Global Baking and Snacking | International Simple Meals and Beverages | U.S. Beverages | Bolthouse and Foodservice | Corporate | Total | |||||||||||||||||||||
Severance pay and benefits | $ | 33 | $ | 41 | $ | 5 | $ | 8 | $ | 4 | $ | 3 | $ | 94 | |||||||||||||
Implementation and other costs | 5 | 2 | — | 1 | — | 22 | 30 | ||||||||||||||||||||
$ | 38 | $ | 43 | $ | 5 | $ | 9 | $ | 4 | $ | 25 | $ | 124 |
U.S. Simple Meals | Global Baking and Snacking | International Simple Meals and Beverages | U.S. Beverages | Bolthouse and Foodservice | Corporate | Total | |||||||||||||||||||||
Severance pay and benefits | $ | 7 | $ | 23 | $ | 6 | $ | 2 | $ | 2 | $ | 1 | $ | 41 | |||||||||||||
Asset impairment | 1 | — | 11 | — | — | — | 12 | ||||||||||||||||||||
Other exit costs | — | — | 1 | — | — | — | 1 | ||||||||||||||||||||
$ | 8 | $ | 23 | $ | 18 | $ | 2 | $ | 2 | $ | 1 | $ | 54 |
U.S. Simple Meals | Global Baking and Snacking | International Simple Meals and Beverages | U.S. Beverages | Bolthouse and Foodservice | Total | ||||||||||||||||||
Severance pay and benefits | $ | 19 | $ | 2 | $ | 5 | $ | 7 | $ | 2 | $ | 35 | |||||||||||
Accelerated depreciation/asset impairment | 64 | 10 | 3 | 22 | — | 99 | |||||||||||||||||
Other exit costs | 7 | 2 | 1 | 2 | — | 12 | |||||||||||||||||
$ | 90 | $ | 14 | $ | 9 | $ | 31 | $ | 2 | $ | 146 |
2015 | 2014 | 2013 | |||||||||
Other Expenses/(Income) | |||||||||||
Foreign exchange (gains)/losses(1) | $ | — | $ | 6 | $ | 3 | |||||
Amortization of intangible assets | 17 | 18 | 14 | ||||||||
Impairment of intangible assets(2) | 6 | — | — | ||||||||
Acquisition related costs | — | — | 10 | ||||||||
Other | 1 | (2 | ) | 2 | |||||||
$ | 24 | $ | 22 | $ | 29 | ||||||
Advertising and consumer promotion expense(3) | $ | 385 | $ | 411 | $ | 419 | |||||
Interest expense | |||||||||||
Interest expense | $ | 111 | $ | 124 | $ | 138 | |||||
Less: Interest capitalized | 3 | 2 | 3 | ||||||||
$ | 108 | $ | 122 | $ | 135 |
(1) | 2014 included a loss of $9 on foreign exchange forward contracts used to hedge the proceeds from the sale of the European simple meals business. |
(2) | In 2015, we recognized a $6 impairment charge related to minor trademarks. See also Note 6. |
(3) | Included in Marketing and selling expenses. |
2015 | 2014 | ||||||
Accounts receivable | |||||||
Customer accounts receivable | $ | 570 | $ | 597 | |||
Allowances | (13 | ) | (12 | ) | |||
Subtotal | $ | 557 | $ | 585 | |||
Other | 90 | 85 | |||||
$ | 647 | $ | 670 | ||||
Inventories | |||||||
Raw materials, containers and supplies | $ | 427 | $ | 399 | |||
Finished products | 566 | 617 | |||||
$ | 993 | $ | 1,016 | ||||
Other current assets | |||||||
Deferred taxes | $ | 115 | $ | 96 | |||
Fair value of derivatives | 32 | 15 | |||||
Other | 52 | 71 | |||||
$ | 199 | $ | 182 | ||||
Plant assets | |||||||
Land | $ | 57 | $ | 62 | |||
Buildings | 1,416 | 1,384 | |||||
Machinery and equipment | 3,802 | 3,856 | |||||
Projects in progress | 238 | 217 | |||||
Total cost | $ | 5,513 | $ | 5,519 | |||
Accumulated depreciation(1) | (3,166 | ) | (3,201 | ) | |||
$ | 2,347 | $ | 2,318 | ||||
Other assets | |||||||
Fair value of derivatives | $ | 22 | $ | — | |||
Deferred taxes | 25 | 32 | |||||
Other | 54 | 55 | |||||
$ | 101 | $ | 87 |
2015 | 2014 | ||||||
Accrued liabilities | |||||||
Accrued compensation and benefits | $ | 255 | $ | 237 | |||
Fair value of derivatives | 12 | 17 | |||||
Accrued trade and consumer promotion programs | 125 | 122 | |||||
Accrued interest | 35 | 37 | |||||
Restructuring | 54 | 31 | |||||
Other | 108 | 109 | |||||
$ | 589 | $ | 553 | ||||
Other liabilities | |||||||
Pension benefits | $ | 233 | $ | 170 | |||
Deferred compensation(2) | 104 | 109 | |||||
Postretirement benefits | 362 | 359 | |||||
Fair value of derivatives | 8 | 6 | |||||
Unrecognized tax benefits | 26 | 23 | |||||
Restructuring | 49 | — | |||||
Other | 68 | 62 | |||||
$ | 850 | $ | 729 |
(1) | Depreciation expense was $286 in 2015, $287 in 2014 and $393 in 2013. These amounts included $1 in 2013 related to discontinued operations. Buildings are depreciated over periods ranging from 7 to 45 years. Machinery and equipment are depreciated over periods generally ranging from 2 to 20 years. |
(2) | The deferred compensation obligation represents unfunded plans maintained for the purpose of providing our directors and certain of our executives the opportunity to defer a portion of their compensation. All forms of compensation contributed to the deferred compensation plans are accounted for in accordance with the underlying program. Deferrals and our contributions are credited to an investment account in the participant's name, although no funds are actually contributed to the investment account and no investments are actually purchased. Seven investment choices are available, including: (1) a book account that tracks the total return on our stock; (2) a book account that tracks the performance of the Vanguard Institutional Index; (3) a book account that tracks the performance of the Vanguard Extended Market Index; (4) a book account that tracks the performance of the Vanguard Total International Stock Index; (5) a book account that tracks the performance of the Vanguard Total Bond Market Index; (6) a book account that tracks the performance of the Vanguard Short-Term Bond Index; and (7) a book account that tracks the BlackRock Liquidity TempFund. Participants can reallocate investments daily and are entitled to the gains and losses on investment funds. We recognize an amount in the Consolidated Statements of Earnings for the market appreciation/depreciation of each fund. |
2015 | 2014 | 2013 | |||||||||
Other Expenses/(Income) | |||||||||||
Foreign exchange (gains)/losses(1) | $ | — | $ | 6 | $ | 3 | |||||
Amortization of intangible assets | 17 | 18 | 14 | ||||||||
Impairment of intangible assets(2) | 6 | — | — | ||||||||
Acquisition related costs | — | — | 10 | ||||||||
Other | 1 | (2 | ) | 2 | |||||||
$ | 24 | $ | 22 | $ | 29 | ||||||
Advertising and consumer promotion expense(3) | $ | 385 | $ | 411 | $ | 419 | |||||
Interest expense | |||||||||||
Interest expense | $ | 111 | $ | 124 | $ | 138 | |||||
Less: Interest capitalized | 3 | 2 | 3 | ||||||||
$ | 108 | $ | 122 | $ | 135 |
(1) | 2014 included a loss of $9 on foreign exchange forward contracts used to hedge the proceeds from the sale of the European simple meals business. |
(2) | In 2015, we recognized a $6 impairment charge related to minor trademarks. See also Note 6. |
(3) | Included in Marketing and selling expenses. |
2015 | 2014 | 2013 | |||||||||
Cash Flows from Operating Activities | |||||||||||
Other non-cash charges to net earnings | |||||||||||
Non-cash compensation/benefit related expense | $ | 78 | $ | 114 | $ | 134 | |||||
Other | 16 | 4 | 21 | ||||||||
$ | 94 | $ | 118 | $ | 155 | ||||||
Other | |||||||||||
Benefit related payments | $ | (53 | ) | $ | (52 | ) | $ | (54 | ) | ||
Other | 1 | (1 | ) | (4 | ) | ||||||
$ | (52 | ) | $ | (53 | ) | $ | (58 | ) | |||
Other Cash Flow Information | |||||||||||
Interest paid | $ | 111 | $ | 122 | $ | 124 | |||||
Interest received | $ | 3 | $ | 3 | $ | 10 | |||||
Income taxes paid | $ | 333 | $ | 421 | $ | 345 |
2015 | 2014 | 2013 | |||||||||
Net sales | $ | 8,174 | $ | 8,372 | $ | 8,327 | |||||
Earnings from continuing operations attributable to Campbell Soup Company | $ | 693 | $ | 741 | $ | 684 | |||||
Earnings per share from continuing operations attributable to Campbell Soup Company - assuming dilution | $ | 2.21 | $ | 2.34 | $ | 2.16 |
Garden Fresh Gourmet | Kelsen | Plum | Bolthouse Farms | |||||||||||||
Cash | $ | — | $ | 2 | $ | 1 | $ | 3 | ||||||||
Accounts receivable | 10 | 20 | 15 | 74 | ||||||||||||
Inventories | 5 | 50 | 20 | 122 | ||||||||||||
Other current assets | — | 2 | 1 | 8 | ||||||||||||
Plant assets | 22 | 47 | 2 | 335 | ||||||||||||
Goodwill | 116 | 140 | 128 | 692 | ||||||||||||
Other intangible assets | 86 | 173 | 133 | 580 | ||||||||||||
Other assets | — | — | — | 8 | ||||||||||||
Short-term debt | — | (32 | ) | — | (1 | ) | ||||||||||
Accounts payable | (6 | ) | (13 | ) | (12 | ) | (59 | ) | ||||||||
Accrued liabilities | (1 | ) | (10 | ) | (5 | ) | (29 | ) | ||||||||
Long-term debt | — | (4 | ) | — | (1 | ) | ||||||||||
Deferred income taxes | — | (44 | ) | (34 | ) | (156 | ) | |||||||||
Other liabilities | — | — | — | (15 | ) | |||||||||||
Total assets acquired and liabilities assumed | $ | 232 | $ | 331 | $ | 249 | $ | 1,561 |
Type | Life in Years | Value | ||||||||
Trademarks | Non-amortizable | Indefinite | $ | 383 | ||||||
Customer relationships | Amortizable | 20 | 132 | |||||||
Distributor relationship | Amortizable | 7 | 2 | |||||||
Technology and patents | Amortizable | 9 | to | 17 | 43 | |||||
Formula and recipes | Amortizable | 5 | 20 | |||||||
Total identifiable intangible assets | $ | 580 |
2015 | 2014 | 2013 | |||||||||
Net sales | $ | 8,174 | $ | 8,372 | $ | 8,327 | |||||
Earnings from continuing operations attributable to Campbell Soup Company | $ | 693 | $ | 741 | $ | 684 | |||||
Earnings per share from continuing operations attributable to Campbell Soup Company - assuming dilution | $ | 2.21 | $ | 2.34 | $ | 2.16 |
2016 | 2017 | 2018 | 2019 | 2020 | Thereafter |
$38 | $26 | $22 | $17 | $15 | $21 |
Foreign Currency Translation Adjustments(1) | Gains (Losses) on Cash Flow Hedges(2) | Pension and Postretirement Benefit Plan Adjustments(3) | Total Accumulated Comprehensive Income (Loss) | |||||||||||||
Balance at July 28, 2013 | $ | 170 | $ | 5 | $ | (740 | ) | $ | (565 | ) | ||||||
Other comprehensive income (loss) before reclassifications | (14 | ) | (8 | ) | (35 | ) | (57 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (19 | ) | — | 72 | 53 | |||||||||||
Net current-period other comprehensive income (loss) | (33 | ) | (8 | ) | 37 | (4 | ) | |||||||||
Balance at August 3, 2014 | $ | 137 | $ | (3 | ) | $ | (703 | ) | $ | (569 | ) | |||||
Other comprehensive income (loss) before reclassifications | (322 | ) | (2 | ) | (77 | ) | (401 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | 61 | 61 | ||||||||||||
Net current-period other comprehensive income (loss) | (322 | ) | (2 | ) | (16 | ) | (340 | ) | ||||||||
Balance at August 2, 2015 | $ | (185 | ) | $ | (5 | ) | $ | (719 | ) | $ | (909 | ) |
(1) | Included a tax expense of $6 as of August 2, 2015, $7 as of August 3, 2014, and $9 as of July 28, 2013. The amount reclassified from other comprehensive income was related to the divestiture of the European simple meals business and was included in Earnings (loss) from discontinued operations. |
(2) | Included a tax benefit of $5 as of August 2, 2015, $1 as of August 3, 2014, and a tax expense of $3 as of July 28, 2013. |
(3) | Included a tax benefit of $417 as of August 2, 2015, $405 as of August 3, 2014, and $424 as of July 28, 2013. The amount reclassified in 2014 from other comprehensive income included pre-tax settlement charges of $22, or $14 after tax. |
Details about Accumulated Other Comprehensive Income (Loss) Components | 2015 | 2014 | 2013 | Location of (Gain) Loss Recognized in Earnings | ||||||||||
(Gains) losses on cash flow hedges: | ||||||||||||||
Foreign exchange forward contracts | $ | (4 | ) | $ | (4 | ) | $ | 1 | Cost of products sold | |||||
Foreign exchange forward contracts | (1 | ) | 1 | (1 | ) | Other expenses / (income) | ||||||||
Forward starting interest rate swaps | 4 | 3 | 4 | Interest expense | ||||||||||
Total before tax | (1 | ) | — | 4 | ||||||||||
Tax expense (benefit) | 1 | — | (1 | ) | ||||||||||
(Gain) loss, net of tax | $ | — | $ | — | $ | 3 | ||||||||
Pension and postretirement benefit adjustments: | ||||||||||||||
Prior service credit | $ | (2 | ) | $ | (2 | ) | $ | (2 | ) | (1) | ||||
Net actuarial losses | 98 | 113 | 124 | (1) | ||||||||||
Total before tax | 96 | 111 | 122 | |||||||||||
Tax expense (benefit) | (35 | ) | (39 | ) | (54 | ) | ||||||||
(Gain) loss, net of tax | $ | 61 | $ | 72 | $ | 68 |
(1) | In 2014, net actuarial losses of $2 were recognized in Earnings (loss) from discontinued operations as a result of the sale of the European simple meals business. Excluding the net actuarial losses related to the sale of the business in 2014, these items are included in the components of net periodic benefit costs (see Note 11 for additional details). |
2015 | 2014 | ||||||
Commercial paper | $ | 1,532 | $ | 1,406 | |||
Current portion of long-term debt | — | 300 | |||||
Variable-rate bank borrowings | 1 | 47 | |||||
Fixed-rate bank borrowings | 9 | 17 | |||||
Capital leases | 1 | 1 | |||||
$ | 1,543 | $ | 1,771 |
Type | Fiscal Year of Maturity | Rate | 2015 | 2014 | ||||||||
Notes | 2015 | 3.38% | $ | — | $ | 300 | ||||||
Notes | 2017 | 3.05% | 400 | 400 | ||||||||
Notes | 2019 | 4.50% | 300 | 300 | ||||||||
Notes | 2021 | 4.25% | 500 | 500 | ||||||||
Debentures | 2021 | 8.88% | 200 | 200 | ||||||||
Notes | 2023 | 2.50% | 450 | 450 | ||||||||
Notes | 2025 | 3.30% | 300 | — | ||||||||
Notes | 2043 | 3.80% | 400 | 400 | ||||||||
Capital leases | 10 | 3 | ||||||||||
Other(1) | (8 | ) | (9 | ) | ||||||||
Total | $ | 2,552 | $ | 2,544 | ||||||||
Less current portion | — | 300 | ||||||||||
Total long-term debt | $ | 2,552 | $ | 2,244 |
(1) | Other includes unamortized net premium/discount on debt issuances. |
Balance Sheet Classification | 2015 | 2014 | |||||||
Asset Derivatives | |||||||||
Derivatives designated as hedges: | |||||||||
Foreign exchange forward contracts | Other current assets | $ | 3 | $ | 1 | ||||
Forward starting interest rate swaps | Other current assets | — | 11 | ||||||
Total derivatives designated as hedges | $ | 3 | $ | 12 | |||||
Derivatives not designated as hedges: | |||||||||
Commodity derivative contracts | Other current assets | $ | 1 | $ | 2 | ||||
Cross-currency swap contracts | Other current assets | 18 | — | ||||||
Deferred compensation derivative contracts | Other current assets | 1 | — | ||||||
Foreign exchange forward contracts | Other current assets | 9 | 1 | ||||||
Cross-currency swap contracts | Other assets | 22 | — | ||||||
Total derivatives not designated as hedges | $ | 51 | $ | 3 | |||||
Total asset derivatives | $ | 54 | $ | 15 |
Balance Sheet Classification | 2015 | 2014 | |||||||
Liability Derivatives | |||||||||
Derivatives designated as hedges: | |||||||||
Foreign exchange forward contracts | Accrued liabilities | $ | — | $ | 1 | ||||
Forward starting interest rate swaps | Other liabilities | 8 | — | ||||||
Total derivatives designated as hedges | $ | 8 | $ | 1 | |||||
Derivatives not designated as hedges: | |||||||||
Commodity derivative contracts | Accrued liabilities | $ | 10 | $ | 10 | ||||
Cross-currency swap contracts | Accrued liabilities | — | 1 | ||||||
Deferred compensation derivative contracts | Accrued liabilities | — | 3 | ||||||
Foreign exchange forward contracts | Accrued liabilities | 2 | 2 | ||||||
Commodity derivative contracts | Other liabilities | — | 1 | ||||||
Cross-currency swap contracts | Other liabilities | — | 5 | ||||||
Total derivatives not designated as hedges | $ | 12 | $ | 22 | |||||
Total liability derivatives | $ | 20 | $ | 23 |
2015 | 2014 | |||||||||||||||||||||||
Derivative Instrument | Gross Amounts Presented in the Consolidated Balance Sheet | Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to Netting Agreements | Net Amount | Gross Amounts Presented in the Consolidated Balance Sheet | Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to Netting Agreements | Net Amount | ||||||||||||||||||
Total asset derivatives | $ | 54 | $ | (13 | ) | $ | 41 | $ | 15 | $ | (4 | ) | $ | 11 | ||||||||||
Total liability derivatives | $ | 20 | $ | (13 | ) | $ | 7 | $ | 23 | $ | (4 | ) | $ | 19 |
Total Cash-Flow Hedge OCI Activity | |||||||||
2015 | 2014 | ||||||||
OCI derivative gain (loss) at beginning of year | $ | (4 | ) | $ | 8 | ||||
Effective portion of changes in fair value recognized in OCI: | |||||||||
Foreign exchange forward contracts | 18 | — | |||||||
Forward starting interest rate swaps | (23 | ) | (12 | ) | |||||
Amount of (gain) loss reclassified from OCI to earnings: | Location in Earnings | ||||||||
Foreign exchange forward contracts | Cost of products sold | (4 | ) | (4 | ) | ||||
Foreign exchange forward contracts | Other expenses / (income) | (1 | ) | 1 | |||||
Forward starting interest rate swaps | Interest expense | 4 | 3 | ||||||
OCI derivative gain (loss) at end of year | $ | (10 | ) | $ | (4 | ) |
Amount of Gain (Loss) Recognized in Earnings on Derivatives | Amount of Gain (Loss) Recognized in Earnings on Hedged Item | |||||||||||||||||
Derivatives Designated as Fair-Value Hedges | Location of Gain (Loss) Recognized in Earnings | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Interest rate swaps | Interest expense | $ | — | $ | (1 | ) | $ | — | $ | 1 |
Amount of Gain (Loss) Recognized in Earnings on Derivatives | ||||||||||
Derivatives not Designated as Hedges | Location of Gain (Loss) Recognized in Earnings | 2015 | 2014 | |||||||
Foreign exchange forward contracts | Cost of products sold | $ | 2 | $ | 3 | |||||
Foreign exchange forward contracts | Other expenses / (income) | (3 | ) | (12 | ) | |||||
Cross-currency swap contracts | Other expenses / (income) | 58 | 7 | |||||||
Commodity derivative contracts | Cost of products sold | (19 | ) | (4 | ) | |||||
Deferred compensation derivative contracts | Administrative expenses | 7 | 2 | |||||||
Total | $ | 45 | $ | (4 | ) |
Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||
(Options in thousands) | (In years) | |||||||||||
Outstanding at August 3, 2014 | 408 | $ | 28.33 | |||||||||
Granted | — | $ | — | |||||||||
Exercised | (331 | ) | $ | 27.98 | ||||||||
Terminated | (3 | ) | $ | 26.36 | ||||||||
Outstanding at August 2, 2015 | 74 | $ | 29.91 | 0.4 | $ | 1 | ||||||
Exercisable at August 2, 2015 | 74 | $ | 29.91 | 0.4 | $ | 1 |
Units | Weighted- Average Grant-Date Fair Value | |||||
(Restricted stock units in thousands) | ||||||
Nonvested at August 3, 2014 | 2,994 | $ | 37.69 | |||
Granted | 1,183 | $ | 43.00 | |||
Vested | (1,303 | ) | $ | 35.89 | ||
Forfeited | (464 | ) | $ | 37.00 | ||
Nonvested at August 2, 2015 | 2,410 | $ | 41.40 |
Units | Weighted- Average Grant-Date Fair Value | |||||
(Restricted stock units in thousands) | ||||||
Nonvested at August 3, 2014 | 861 | $ | 38.15 | |||
Granted | 874 | $ | 43.39 | |||
Vested | — | $ | — | |||
Forfeited | (156 | ) | $ | 41.23 | ||
Nonvested at August 2, 2015 | 1,579 | $ | 40.75 |
2015 | 2014 | 2013 | |||
Risk-free interest rate | 0.97% | 0.60% | 0.30% | ||
Expected dividend yield | 2.91% | 2.98% | 3.26% | ||
Expected volatility | 16.20% | 15.76% | 15.07% | ||
Expected term | 3 years | 3 years | 3 years |
2014 | 2013 | |||||||
Net sales | $ | 137 | $ | 532 | ||||
Gain on sale of the European simple meals business | $ | 141 | $ | — | ||||
Impairment on the European simple meals business | — | (396 | ) | |||||
Earnings from operations, before taxes | 14 | 65 | ||||||
Earnings (loss) before taxes | $ | 155 | $ | (331 | ) | |||
Taxes on earnings | (74 | ) | 100 | |||||
Earnings (loss) from discontinued operations | $ | 81 | $ | (231 | ) |
2013 | ||||||||
Intangible assets | Impairment | Fair Value | ||||||
Blå Band | $ | 1 | $ | 19 | ||||
Heisse Tasse | $ | 4 | $ | 6 | ||||
Isomitta | $ | 8 | $ | 4 | ||||
Royco | $ | 23 | $ | 53 |
• | Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. |
• | Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with observable market data. |
• | Level 3: Unobservable inputs, which are valued based on our estimates of assumptions that market participants would use in pricing the asset or liability. |
Fair Value as of August 2, 2015 | Fair Value Measurements at August 2, 2015 Using Fair Value Hierarchy | Fair Value as of August 3, 2014 | Fair Value Measurements at August 3, 2014 Using Fair Value Hierarchy | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Forward starting interest rate swaps(1) | $ | — | $ | — | $ | — | $ | — | $ | 11 | $ | — | $ | 11 | $ | — | |||||||||||||||
Foreign exchange forward contracts(2) | 12 | — | 12 | — | 2 | — | 2 | — | |||||||||||||||||||||||
Commodity derivative contracts(3) | 1 | 1 | — | — | 2 | 1 | 1 | — | |||||||||||||||||||||||
Cross-currency swap contracts(4) | 40 | — | 40 | — | — | — | — | — | |||||||||||||||||||||||
Deferred compensation derivative contracts(5) | 1 | — | 1 | — | — | — | — | — | |||||||||||||||||||||||
Total assets at fair value | $ | 54 | $ | 1 | $ | 53 | $ | — | $ | 15 | $ | 1 | $ | 14 | $ | — |
Fair Value as of August 2, 2015 | Fair Value Measurements at August 2, 2015 Using Fair Value Hierarchy | Fair Value as of August 3, 2014 | Fair Value Measurements at August 3, 2014 Using Fair Value Hierarchy | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Forward starting interest rate swaps(1) | $ | 8 | $ | — | $ | 8 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Foreign exchange forward contracts(2) | 2 | — | 2 | — | 3 | — | 3 | — | |||||||||||||||||||||||
Commodity derivative contracts(3) | 10 | 10 | — | — | 11 | 11 | — | — | |||||||||||||||||||||||
Cross-currency swap contracts(4) | — | — | — | — | 6 | — | 6 | — | |||||||||||||||||||||||
Deferred compensation derivative contracts(5) | — | — | — | — | 3 | — | 3 | — | |||||||||||||||||||||||
Deferred compensation obligation(6) | 120 | 120 | — | — | 123 | 123 | — | — | |||||||||||||||||||||||
Total liabilities at fair value | $ | 140 | $ | 130 | $ | 10 | $ | — | $ | 146 | $ | 134 | $ | 12 | $ | — |
(1) | Based on LIBOR swap rates. |
(2) | Based on observable market transactions of spot currency rates and forward rates. |
(3) | Based on quoted futures exchanges and on observable prices of futures and options transactions in the marketplace. |
(4) | Based on observable local benchmarks for currency and interest rates. |
(5) | Based on LIBOR and equity index swap rates. |
(6) | Based on the fair value of the participants’ investments. |
2013 | ||||||||
Intangible assets | Impairment | Fair Value | ||||||
Blå Band | $ | 1 | $ | 19 | ||||
Heisse Tasse | $ | 4 | $ | 6 | ||||
Isomitta | $ | 8 | $ | 4 | ||||
Royco | $ | 23 | $ | 53 |
2015 | 2014 | ||||||||||||||||||||||
Fair Value | Unfunded Commitments | Fair Value | Unfunded Commitments | Redemption Frequency | Redemption Notice Period Range | ||||||||||||||||||
Short-term investments | $ | 28 | $ | — | $ | 37 | $ | — | Daily | 1 Day | |||||||||||||
Commingled funds: | |||||||||||||||||||||||
Equities | 375 | — | 393 | — | Daily, | Monthly | 1 | to | 120 Days | ||||||||||||||
Fixed income | 31 | — | 36 | — | Daily | 1 Day | |||||||||||||||||
Blended | 79 | — | 95 | — | Primarily Daily | 1 | to | 20 Days | |||||||||||||||
Real estate funds | 117 | 3 | 109 | 7 | Primarily Quarterly | 1 | to | 90 Days | |||||||||||||||
Hedge funds | 175 | 25 | 151 | 47 | Monthly, | Quarterly | 5 | to | 95 Days | ||||||||||||||
Total | $ | 805 | $ | 28 | $ | 821 | $ | 54 |
• | Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. |
• | Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with observable market data. |
• | Level 3: Unobservable inputs, which are valued based on our estimates of assumptions that market participants would use in pricing the asset or liability. |
U.S. Simple Meals | Global Baking and Snacking | International Simple Meals and Beverages | U.S. Beverages | Bolthouse and Foodservice | Total | ||||||||||||||||||
Balance at July 28, 2013 | $ | 450 | $ | 775 | $ | 122 | $ | 112 | $ | 838 | $ | 2,297 | |||||||||||
Acquisition | — | 140 | — | — | — | 140 | |||||||||||||||||
Foreign currency translation adjustment | — | 3 | (7 | ) | — | — | (4 | ) | |||||||||||||||
Balance at August 3, 2014 | $ | 450 | $ | 918 | $ | 115 | $ | 112 | $ | 838 | $ | 2,433 | |||||||||||
Acquisition | — | — | — | — | 116 | 116 | |||||||||||||||||
Foreign currency translation adjustment | — | (186 | ) | (19 | ) | — | — | (205 | ) | ||||||||||||||
Balance at August 2, 2015 | $ | 450 | $ | 732 | $ | 96 | $ | 112 | $ | 954 | $ | 2,344 |
Intangible Assets | 2015 | 2014 | ||||||
Amortizable intangible assets | ||||||||
Customer relationships | $ | 222 | $ | 178 | ||||
Technology | 40 | 40 | ||||||
Other | 35 | 35 | ||||||
Total gross amortizable intangible assets | $ | 297 | $ | 253 | ||||
Accumulated amortization | (52 | ) | (35 | ) | ||||
Total net amortizable intangible assets | $ | 245 | $ | 218 | ||||
Non-amortizable intangible assets | ||||||||
Trademarks | 960 | 957 | ||||||
Total net intangible assets | $ | 1,205 | $ | 1,175 |
2015 | 2014 | 2013 | |||||||||
Income taxes: | |||||||||||
Currently payable: | |||||||||||
Federal | $ | 246 | $ | 252 | $ | 268 | |||||
State | 31 | 30 | 24 | ||||||||
Non-U.S. | 55 | 42 | 47 | ||||||||
332 | 324 | 339 | |||||||||
Deferred: | |||||||||||
Federal | (31 | ) | 32 | (58 | ) | ||||||
State | 2 | 2 | (6 | ) | |||||||
Non-U.S. | (4 | ) | (11 | ) | — | ||||||
(33 | ) | 23 | (64 | ) | |||||||
$ | 299 | $ | 347 | $ | 275 | ||||||
Earnings from continuing operations before income taxes: | |||||||||||
United States | $ | 850 | $ | 995 | $ | 815 | |||||
Non-U.S. | 140 | 78 | 140 | ||||||||
$ | 990 | $ | 1,073 | $ | 955 |
2015 | 2014 | 2013 | ||||||
Federal statutory income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State income taxes (net of federal tax benefit) | 2.2 | 2.0 | 1.1 | |||||
Tax effect of international items | (2.4 | ) | (1.0 | ) | (2.6 | ) | ||
Settlement of tax contingencies | (0.7 | ) | — | (0.1 | ) | |||
Federal manufacturing deduction | (2.8 | ) | (2.3 | ) | (2.7 | ) | ||
Other | (1.1 | ) | (1.4 | ) | (1.9 | ) | ||
Effective income tax rate | 30.2 | % | 32.3 | % | 28.8 | % |
2015 | 2014 | ||||||
Depreciation | $ | 306 | $ | 300 | |||
Amortization | 541 | 541 | |||||
Other | 16 | 17 | |||||
Deferred tax liabilities | 863 | 858 | |||||
Benefits and compensation | 298 | 294 | |||||
Pension benefits | 92 | 63 | |||||
Tax loss carryforwards | 44 | 49 | |||||
Capital loss carryforwards | 85 | 112 | |||||
Other | 101 | 70 | |||||
Gross deferred tax assets | 620 | 588 | |||||
Deferred tax asset valuation allowance | (122 | ) | (151 | ) | |||
Net deferred tax assets | 498 | 437 | |||||
Net deferred tax liability | $ | 365 | $ | 421 |
2015 | 2014 | 2013 | |||||||||
Balance at beginning of year | $ | 71 | $ | 61 | $ | 48 | |||||
Increases related to prior-year tax positions | 9 | — | 28 | ||||||||
Decreases related to prior-year tax positions | — | (1 | ) | (7 | ) | ||||||
Increases related to current-year tax positions | 5 | 11 | 9 | ||||||||
Settlements | (27 | ) | — | (15 | ) | ||||||
Lapse of statute | — | — | (2 | ) | |||||||
Balance at end of year | $ | 58 | $ | 71 | $ | 61 |
Intangible Assets | 2015 | 2014 | ||||||
Amortizable intangible assets | ||||||||
Customer relationships | $ | 222 | $ | 178 | ||||
Technology | 40 | 40 | ||||||
Other | 35 | 35 | ||||||
Total gross amortizable intangible assets | $ | 297 | $ | 253 | ||||
Accumulated amortization | (52 | ) | (35 | ) | ||||
Total net amortizable intangible assets | $ | 245 | $ | 218 | ||||
Non-amortizable intangible assets | ||||||||
Trademarks | 960 | 957 | ||||||
Total net intangible assets | $ | 1,205 | $ | 1,175 |
Pension | |||||||||||
2015 | 2014 | 2013 | |||||||||
Service cost | $ | 28 | $ | 42 | $ | 57 | |||||
Interest cost | 105 | 115 | 108 | ||||||||
Expected return on plan assets | (173 | ) | (176 | ) | (177 | ) | |||||
Amortization of prior service credit | (1 | ) | (1 | ) | (1 | ) | |||||
Recognized net actuarial loss | 84 | 76 | 108 | ||||||||
Curtailment loss | 1 | — | 3 | ||||||||
Settlement charges | — | 22 | — | ||||||||
Net periodic benefit expense | $ | 44 | $ | 78 | $ | 98 |
Postretirement | |||||||||||
2015 | 2014 | 2013 | |||||||||
Service cost | $ | 2 | $ | 2 | $ | 3 | |||||
Interest cost | 15 | 17 | 15 | ||||||||
Amortization of prior service credit | (1 | ) | (1 | ) | (1 | ) | |||||
Recognized net actuarial loss | 14 | 13 | 15 | ||||||||
Curtailment loss | 6 | — | — | ||||||||
Net periodic benefit expense | $ | 36 | $ | 31 | $ | 32 |
Pension | Postretirement | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Obligation at beginning of year | $ | 2,539 | $ | 2,489 | $ | 388 | $ | 390 | ||||||||
Service cost | 28 | 42 | 2 | 2 | ||||||||||||
Interest cost | 105 | 115 | 15 | 17 | ||||||||||||
Actuarial loss | 107 | 154 | 7 | 5 | ||||||||||||
Participant contributions | — | — | 3 | 6 | ||||||||||||
Benefits paid | (151 | ) | (191 | ) | (33 | ) | (35 | ) | ||||||||
Medicare subsidies | — | — | 4 | 3 | ||||||||||||
Other | (1 | ) | (4 | ) | — | — | ||||||||||
Settlements | — | (43 | ) | — | — | |||||||||||
Curtailment | 1 | — | 6 | — | ||||||||||||
Foreign currency adjustment | (59 | ) | (12 | ) | — | — | ||||||||||
Divestiture | — | (11 | ) | — | — | |||||||||||
Benefit obligation at end of year | $ | 2,569 | $ | 2,539 | $ | 392 | $ | 388 |
2015 | 2014 | |||||||
Fair value at beginning of year | $ | 2,364 | $ | 2,275 | ||||
Actual return on plan assets | 143 | 276 | ||||||
Employer contributions | 5 | 46 | ||||||
Benefits paid | (141 | ) | (179 | ) | ||||
Settlements | — | (43 | ) | |||||
Foreign currency adjustment | (55 | ) | (11 | ) | ||||
Fair value at end of year | $ | 2,316 | $ | 2,364 |
Pension | Postretirement | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Other assets | $ | — | $ | 7 | $ | — | $ | — | ||||||||
Accrued liabilities | (20 | ) | (12 | ) | (30 | ) | (29 | ) | ||||||||
Other liabilities | (233 | ) | (170 | ) | (362 | ) | (359 | ) | ||||||||
Net amount recognized | $ | (253 | ) | $ | (175 | ) | $ | (392 | ) | $ | (388 | ) |
Pension | Postretirement | |||||||||||||||
Amounts recognized in accumulated other comprehensive loss consist of: | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Net actuarial loss | $ | 1,051 | $ | 1,019 | $ | 90 | $ | 96 | ||||||||
Prior service credit | (1 | ) | (2 | ) | (4 | ) | (5 | ) | ||||||||
Total | $ | 1,050 | $ | 1,017 | $ | 86 | $ | 91 |
2015 | 2014 | |||||||
Projected benefit obligation | $ | 1,926 | $ | 269 | ||||
Accumulated benefit obligation | $ | 1,906 | $ | 257 | ||||
Fair value of plan assets | $ | 1,684 | $ | 92 |
Pension | Postretirement | |||||||
2015 | 2014 | 2015 | 2014 | |||||
Discount rate | 4.19% | 4.33% | 4.00% | 4.00% | ||||
Rate of compensation increase | 3.29% | 3.30% | 3.25% | 3.25% |
Pension | ||||||
2015 | 2014 | 2013 | ||||
Discount rate | 4.33% | 4.82% | 4.05% | |||
Expected return on plan assets | 7.62% | 7.62% | 7.65% | |||
Rate of compensation increase | 3.30% | 3.30% | 3.31% |
2015 | 2014 | |||
Health care cost trend rate assumed for next year | 7.75% | 8.25% | ||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 4.50% | 4.50% | ||
Year that the rate reaches the ultimate trend rate | 2022 | 2022 |
Increase | Decrease | |||||||
Effect on service and interest cost | $ | 1 | $ | (1 | ) | |||
Effect on the 2015 accumulated benefit obligation | $ | 25 | $ | (22 | ) |
Strategic Target | 2015 | 2014 | |||
Equity securities | 51% | 50% | 51% | ||
Debt securities | 35% | 34% | 33% | ||
Real estate and other | 14% | 16% | 16% | ||
Net periodic benefit expense | 100% | 100% | 100% |
• | Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. |
• | Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with observable market data. |
• | Level 3: Unobservable inputs, which are valued based on our estimates of assumptions that market participants would use in pricing the asset or liability. |
Fair Value as of August 2, 2015 | Fair Value Measurements at August 2, 2015 Using Fair Value Hierarchy | Fair Value as of August 3, 2014 | Fair Value Measurements at August 3, 2014 Using Fair Value Hierarchy | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Short-term investments | $ | 32 | $ | 32 | $ | — | $ | — | $ | 23 | $ | 23 | $ | — | $ | — | |||||||||||||||
Equities: | |||||||||||||||||||||||||||||||
U.S. | 386 | 386 | — | — | 378 | 378 | — | — | |||||||||||||||||||||||
Non-U.S. | 312 | 312 | — | — | 332 | 332 | — | — | |||||||||||||||||||||||
Corporate bonds: | |||||||||||||||||||||||||||||||
U.S. | 494 | — | 494 | — | 469 | — | 469 | — | |||||||||||||||||||||||
Non-U.S. | 102 | — | 102 | — | 114 | — | 114 | — | |||||||||||||||||||||||
Government and agency bonds: | |||||||||||||||||||||||||||||||
U.S. | 42 | — | 42 | — | 62 | — | 62 | — | |||||||||||||||||||||||
Non-U.S. | 36 | — | 36 | — | 46 | — | 46 | — | |||||||||||||||||||||||
Municipal bonds | 68 | — | 68 | — | 84 | — | 84 | — | |||||||||||||||||||||||
Mortgage and asset backed securities | 9 | — | 9 | — | 13 | — | 13 | — | |||||||||||||||||||||||
Real estate | 14 | 8 | — | 6 | 8 | 5 | — | 3 | |||||||||||||||||||||||
Hedge funds | 39 | — | — | 39 | 30 | — | — | 30 | |||||||||||||||||||||||
Derivative assets | 5 | — | 5 | — | 8 | — | 8 | — | |||||||||||||||||||||||
Derivative liabilities | (6 | ) | — | (6 | ) | — | (6 | ) | — | (6 | ) | — | |||||||||||||||||||
Total assets at fair value | $ | 1,533 | $ | 738 | $ | 750 | $ | 45 | $ | 1,561 | $ | 738 | $ | 790 | $ | 33 | |||||||||||||||
Investments measured at net asset value: | |||||||||||||||||||||||||||||||
Short-term investments | 28 | 37 | |||||||||||||||||||||||||||||
Commingled funds: | |||||||||||||||||||||||||||||||
Equities | 375 | 393 | |||||||||||||||||||||||||||||
Fixed income | 31 | 36 | |||||||||||||||||||||||||||||
Blended | 79 | 95 | |||||||||||||||||||||||||||||
Real estate | 117 | 109 | |||||||||||||||||||||||||||||
Hedge funds | 175 | 151 | |||||||||||||||||||||||||||||
Total investments measured at net asset value: | 805 | 821 | |||||||||||||||||||||||||||||
Other items to reconcile to fair value of plan assets | (22 | ) | (18 | ) | |||||||||||||||||||||||||||
Total pension assets at fair value | $ | 2,316 | $ | 2,364 |
Real Estate | Hedge Funds | Total | ||||||||||
Fair value at August 3, 2014 | $ | 3 | $ | 30 | $ | 33 | ||||||
Actual return on plan assets | 1 | 2 | 3 | |||||||||
Purchases | 2 | 7 | 9 | |||||||||
Sales | — | — | — | |||||||||
Settlements | — | — | — | |||||||||
Transfers out of Level 3 | — | — | — | |||||||||
Fair value at August 2, 2015 | $ | 6 | $ | 39 | $ | 45 |
Real Estate | Hedge Funds | Total | ||||||||||
Fair value at July 28, 2013 | $ | — | $ | 25 | $ | 25 | ||||||
Actual return on plan assets | — | 1 | 1 | |||||||||
Purchases | 3 | 4 | 7 | |||||||||
Sales | — | — | — | |||||||||
Settlements | — | — | — | |||||||||
Transfers out of Level 3 | — | — | — | |||||||||
Fair value at August 3, 2014 | $ | 3 | $ | 30 | $ | 33 |
2015 | 2014 | ||||||||||||||||||||||
Fair Value | Unfunded Commitments | Fair Value | Unfunded Commitments | Redemption Frequency | Redemption Notice Period Range | ||||||||||||||||||
Short-term investments | $ | 28 | $ | — | $ | 37 | $ | — | Daily | 1 Day | |||||||||||||
Commingled funds: | |||||||||||||||||||||||
Equities | 375 | — | 393 | — | Daily, | Monthly | 1 | to | 120 Days | ||||||||||||||
Fixed income | 31 | — | 36 | — | Daily | 1 Day | |||||||||||||||||
Blended | 79 | — | 95 | — | Primarily Daily | 1 | to | 20 Days | |||||||||||||||
Real estate funds | 117 | 3 | 109 | 7 | Primarily Quarterly | 1 | to | 90 Days | |||||||||||||||
Hedge funds | 175 | 25 | 151 | 47 | Monthly, | Quarterly | 5 | to | 95 Days | ||||||||||||||
Total | $ | 805 | $ | 28 | $ | 821 | $ | 54 |
Pension | Postretirement | |||||||
2016 | $ | 246 | $ | 30 | ||||
2017 | $ | 169 | $ | 31 | ||||
2018 | $ | 165 | $ | 31 | ||||
2019 | $ | 168 | $ | 31 | ||||
2020 | $ | 165 | $ | 31 | ||||
2021-2025 | $ | 828 | $ | 141 |
2015 | |||||||||||||||
First | Second | Third | Fourth | ||||||||||||
Net sales | $ | 2,255 | $ | 2,234 | $ | 1,900 | $ | 1,693 | |||||||
Gross profit | 783 | 728 | 682 | 612 | |||||||||||
Net earnings attributable to Campbell Soup Company | 234 | 207 | 182 | 68 | |||||||||||
Per share - basic | |||||||||||||||
Net earnings attributable to Campbell Soup Company | .75 | .66 | .59 | .22 | |||||||||||
Dividends | .312 | .312 | .312 | .312 | |||||||||||
Per share - assuming dilution | |||||||||||||||
Net earnings attributable to Campbell Soup Company | .74 | .66 | .58 | .22 | |||||||||||
Market price | |||||||||||||||
High | $ | 45.12 | $ | 47.45 | $ | 48.31 | $ | 49.54 | |||||||
Low | $ | 41.15 | $ | 42.70 | $ | 44.45 | $ | 44.92 |
2015 | |||||||||||||||
First | Second | Third | Fourth | ||||||||||||
In 2015, the following charges were recorded in Net earnings attributable to Campbell Soup Company: | |||||||||||||||
Restructuring charges and implementation costs (see Note 8) | $ | — | $ | — | $ | 11 | $ | 67 | |||||||
Per share - assuming dilution | |||||||||||||||
Restructuring charges and implementation costs | — | — | .04 | .21 |
2014 | |||||||||||||||
First | Second | Third | Fourth | ||||||||||||
Net sales | $ | 2,165 | $ | 2,281 | $ | 1,970 | $ | 1,852 | |||||||
Gross profit | 777 | 814 | 676 | 631 | |||||||||||
Earnings from continuing operations attributable to Campbell Soup Company | 181 | 235 | 184 | 137 | |||||||||||
Earnings (loss) from discontinued operations | (9 | ) | 90 | — | — | ||||||||||
Net earnings attributable to Campbell Soup Company | 172 | 325 | 184 | 137 | |||||||||||
Per share - basic | |||||||||||||||
Earnings from continuing operations attributable to Campbell Soup Company | .58 | .75 | .59 | .44 | |||||||||||
Earnings (loss) from discontinued operations | (.03 | ) | .29 | — | — | ||||||||||
Net earnings attributable to Campbell Soup Company(1) | .55 | 1.04 | .59 | .44 | |||||||||||
Dividends | .312 | .312 | .312 | .312 | |||||||||||
Per share - assuming dilution | |||||||||||||||
Earnings from continuing operations attributable to Campbell Soup Company | .57 | .74 | .58 | .43 | |||||||||||
Earnings (loss) from discontinued operations | (.03 | ) | .28 | — | — | ||||||||||
Net earnings attributable to Campbell Soup Company(1) | .54 | 1.03 | .58 | .43 | |||||||||||
Market price | |||||||||||||||
High | $ | 48.08 | $ | 43.70 | $ | 45.48 | $ | 46.67 | |||||||
Low | $ | 39.87 | $ | 38.30 | $ | 39.60 | $ | 41.39 |
(1) | The sum of the individual per share amounts may not add due to rounding. |
2014 | |||||||||||||||
First | Second | Third | Fourth | ||||||||||||
In 2014, the following charges were recorded in Earnings from continuing operations: | |||||||||||||||
Restructuring charges and related costs (see Note 8) | $ | 15 | $ | 5 | $ | 1 | $ | 15 | |||||||
Pension settlement charges (see Note 11) | — | — | 11 | 3 | |||||||||||
Loss on foreign exchange forward contracts related to the sale of the European simple meals business (see Note 19) | 6 | — | — | — | |||||||||||
Tax expense associated with the sale of the European simple meals business | 7 | — | — | — | |||||||||||
Per share - assuming dilution | |||||||||||||||
Restructuring charges and related costs | .05 | .02 | — | .05 | |||||||||||
Pension settlement charges | — | — | .03 | .01 | |||||||||||
Loss on foreign exchange forward contracts related to the sale of the European simple meals business | .02 | — | — | — | |||||||||||
Tax expense associated with the sale of the European simple meals business | .02 | — | — | — | |||||||||||
In 2014, the following charges (gains) were recorded in Earnings (loss) from discontinuing operations: | |||||||||||||||
Taxes, costs associated with the sale, and gain on sale of the European simple meals business (see Note 4) | $ | 18 | $ | (90 | ) | — | — | ||||||||
Per share - assuming dilution | |||||||||||||||
Taxes, costs associated with the sale, and gain on sale of the European simple meals business (see Note 4) | .06 | (.28 | ) | — | — |
Details about Accumulated Other Comprehensive Income (Loss) Components | 2015 | 2014 | 2013 | Location of (Gain) Loss Recognized in Earnings | ||||||||||
(Gains) losses on cash flow hedges: | ||||||||||||||
Foreign exchange forward contracts | $ | (4 | ) | $ | (4 | ) | $ | 1 | Cost of products sold | |||||
Foreign exchange forward contracts | (1 | ) | 1 | (1 | ) | Other expenses / (income) | ||||||||
Forward starting interest rate swaps | 4 | 3 | 4 | Interest expense | ||||||||||
Total before tax | (1 | ) | — | 4 | ||||||||||
Tax expense (benefit) | 1 | — | (1 | ) | ||||||||||
(Gain) loss, net of tax | $ | — | $ | — | $ | 3 | ||||||||
Pension and postretirement benefit adjustments: | ||||||||||||||
Prior service credit | $ | (2 | ) | $ | (2 | ) | $ | (2 | ) | (1) | ||||
Net actuarial losses | 98 | 113 | 124 | (1) | ||||||||||
Total before tax | 96 | 111 | 122 | |||||||||||
Tax expense (benefit) | (35 | ) | (39 | ) | (54 | ) | ||||||||
(Gain) loss, net of tax | $ | 61 | $ | 72 | $ | 68 |
(1) | In 2014, net actuarial losses of $2 were recognized in Earnings (loss) from discontinued operations as a result of the sale of the European simple meals business. Excluding the net actuarial losses related to the sale of the business in 2014, these items are included in the components of net periodic benefit costs (see Note 11 for additional details). |
Recognized as of August 2, 2015 | |||
Severance pay and benefits | $ | 94 | |
Implementation and other costs | 30 | ||
Total | $ | 124 |
Accrued Balance at August 3, 2014 | 2015 Charges | 2015 Cash Payments | Foreign Currency Translation Adjustment | Accrued Balance at August 2, 2015 (3) | ||||||||||||||||
Severance pay and benefits | $ | — | $ | 87 | $ | (1 | ) | $ | (1 | ) | $ | 85 | ||||||||
Other costs | — | 8 | — | — | 8 | |||||||||||||||
$ | — | 95 | $ | (1 | ) | $ | (1 | ) | $ | 93 | ||||||||||
Non-cash benefits(1) | 7 | |||||||||||||||||||
Implementation costs(2) | 22 | |||||||||||||||||||
Total charges | $ | 124 |
(1) | Represents postretirement and pension curtailment costs. See Note 11. |
(2) | Includes other costs recognized as incurred that are not reflected in the restructuring reserve in the Consolidated Balance Sheet. The costs are included in Administrative expenses in the Consolidated Statements of Earnings. |
U.S. Simple Meals | Global Baking and Snacking | International Simple Meals and Beverages | U.S. Beverages | Bolthouse and Foodservice | Corporate | Total | |||||||||||||||||||||
Severance pay and benefits | $ | 33 | $ | 41 | $ | 5 | $ | 8 | $ | 4 | $ | 3 | $ | 94 | |||||||||||||
Implementation and other costs | 5 | 2 | — | 1 | — | 22 | 30 | ||||||||||||||||||||
$ | 38 | $ | 43 | $ | 5 | $ | 9 | $ | 4 | $ | 25 | $ | 124 |
• | We streamlined our salaried workforce in North America and our workforce in the Asia Pacific region. Approximately 250 positions were eliminated. |
• | Together with our joint venture partner Swire Pacific Limited, we restructured manufacturing and streamlined operations for our soup and broth business in China. As a result, certain assets were impaired, and approximately 100 positions were eliminated. |
• | In Australia, we implemented an initiative to improve supply chain efficiency by relocating production from our biscuit plant in Marleston to Huntingwood. The relocation will continue through 2017 and will result in the elimination of approximately 90 positions. |
• | We implemented an initiative to reduce overhead across the organization by eliminating approximately 85 positions. The actions were completed in 2015. |
Total Program | |||
Severance pay and benefits | $ | 41 | |
Asset impairment | 12 | ||
Other exit costs | 1 | ||
Total | $ | 54 |
Accrued Balance at July 28, 2013 | 2014 Charges | 2014 Cash Payments | Accrued Balance at August 3, 2014 | 2015 Cash Payments | Foreign Currency Translation Adjustment | Accrued Balance at August 2, 2015(2) | ||||||||||||||||||
Severance pay and benefits | $ | — | $ | 41 | (13 | ) | 28 | (16 | ) | (2 | ) | $ | 10 | |||||||||||
Asset impairment | 12 | |||||||||||||||||||||||
Other exit costs(1) | 1 | |||||||||||||||||||||||
Total charges | $ | 54 |
(1) | Includes non-cash costs that are not reflected in the restructuring reserve in the Consolidated Balance Sheet. |
(2) | Includes $4 of severance pay and benefits recorded in Other liabilities in the Consolidated Balance Sheet. |
U.S. Simple Meals | Global Baking and Snacking | International Simple Meals and Beverages | U.S. Beverages | Bolthouse and Foodservice | Corporate | Total | |||||||||||||||||||||
Severance pay and benefits | $ | 7 | $ | 23 | $ | 6 | $ | 2 | $ | 2 | $ | 1 | $ | 41 | |||||||||||||
Asset impairment | 1 | — | 11 | — | — | — | 12 | ||||||||||||||||||||
Other exit costs | — | — | 1 | — | — | — | 1 | ||||||||||||||||||||
$ | 8 | $ | 23 | $ | 18 | $ | 2 | $ | 2 | $ | 1 | $ | 54 |
• | We implemented initiatives to improve our U.S. supply chain cost structure and increase asset utilization across our U.S. thermal plant network, including closing our Sacramento, California, thermal plant, which produced soups, sauces and beverages. The closure resulted in the elimination of approximately 700 full-time positions and was completed in phases. Most of the positions were eliminated in 2013, and operations ceased in August 2013. We shifted the majority of Sacramento's soup, sauce and beverage production to our thermal plants in Maxton, North Carolina; Napoleon, Ohio; and Paris, Texas. We also closed our South Plainfield, New Jersey, spice plant, which resulted in the elimination of 27 positions. We consolidated spice production at our Milwaukee, Wisconsin, plant in 2013. |
• | In Mexico, we entered into commercial arrangements with third-party providers to expand access to manufacturing and distribution capabilities. The third-party providers produce and distribute our beverages, soups, broths and sauces throughout the Mexican market. As a result of these agreements, we closed our plant in Villagrán, Mexico, and eliminated approximately 260 positions in the first quarter of 2014. |
• | We implemented an initiative to improve our Pepperidge Farm bakery supply chain cost structure by closing our plant in Aiken, South Carolina. The plant was closed in May 2014. We shifted the majority of Aiken's bread production to our bakery plant in Lakeland, Florida. Approximately 110 positions were eliminated as a result of the plant closure. |
• | We streamlined our salaried workforce in U.S. Simple Meals, North America Foodservice and U.S. Beverages by approximately 70 positions. This action was substantially completed in August 2013. |
Total Program | |||
Severance pay and benefits | $ | 35 | |
Accelerated depreciation/asset impairment | 99 | ||
Other exit costs | 12 | ||
Total | $ | 146 |
Severance Pay and Benefits | Asset Impairment/Accelerated Depreciation | Non-Cash Benefits(1) | Other Exit Costs(2) | Total Charges | |||||||||||||
Accrued balance at July 29, 2012 | $ | — | |||||||||||||||
2013 charges | 32 | 99 | 3 | 8 | $ | 142 | |||||||||||
2013 cash payments | (15 | ) | |||||||||||||||
Accrued balance at July 28, 2013 | $ | 17 | |||||||||||||||
2014 charges | — | — | — | 4 | $ | 4 | |||||||||||
2014 cash payments | (14 | ) | |||||||||||||||
Accrued balance at August 3, 2014 | $ | 3 | |||||||||||||||
2015 cash payments | (3 | ) | |||||||||||||||
Accrued balance at August 2, 2015 | $ | — |
(1) | Represents pension curtailment costs. See Note 11. |
(2) | Includes non-cash costs and other exit costs recognized as incurred that are not reflected in the restructuring reserve in the Consolidated Balance Sheet. |
U.S. Simple Meals | Global Baking and Snacking | International Simple Meals and Beverages | U.S. Beverages | Bolthouse and Foodservice | Total | ||||||||||||||||||
Severance pay and benefits | $ | 19 | $ | 2 | $ | 5 | $ | 7 | $ | 2 | $ | 35 | |||||||||||
Accelerated depreciation/asset impairment | 64 | 10 | 3 | 22 | — | 99 | |||||||||||||||||
Other exit costs | 7 | 2 | 1 | 2 | — | 12 | |||||||||||||||||
$ | 90 | $ | 14 | $ | 9 | $ | 31 | $ | 2 | $ | 146 |
Foreign Currency Translation Adjustments(1) | Gains (Losses) on Cash Flow Hedges(2) | Pension and Postretirement Benefit Plan Adjustments(3) | Total Accumulated Comprehensive Income (Loss) | |||||||||||||
Balance at July 28, 2013 | $ | 170 | $ | 5 | $ | (740 | ) | $ | (565 | ) | ||||||
Other comprehensive income (loss) before reclassifications | (14 | ) | (8 | ) | (35 | ) | (57 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (19 | ) | — | 72 | 53 | |||||||||||
Net current-period other comprehensive income (loss) | (33 | ) | (8 | ) | 37 | (4 | ) | |||||||||
Balance at August 3, 2014 | $ | 137 | $ | (3 | ) | $ | (703 | ) | $ | (569 | ) | |||||
Other comprehensive income (loss) before reclassifications | (322 | ) | (2 | ) | (77 | ) | (401 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | 61 | 61 | ||||||||||||
Net current-period other comprehensive income (loss) | (322 | ) | (2 | ) | (16 | ) | (340 | ) | ||||||||
Balance at August 2, 2015 | $ | (185 | ) | $ | (5 | ) | $ | (719 | ) | $ | (909 | ) |
(1) | Included a tax expense of $6 as of August 2, 2015, $7 as of August 3, 2014, and $9 as of July 28, 2013. The amount reclassified from other comprehensive income was related to the divestiture of the European simple meals business and was included in Earnings (loss) from discontinued operations. |
(2) | Included a tax benefit of $5 as of August 2, 2015, $1 as of August 3, 2014, and a tax expense of $3 as of July 28, 2013. |
(3) | Included a tax benefit of $417 as of August 2, 2015, $405 as of August 3, 2014, and $424 as of July 28, 2013. The amount reclassified in 2014 from other comprehensive income included pre-tax settlement charges of $22, or $14 after tax. |
Strategic Target | 2015 | 2014 | |||
Equity securities | 51% | 50% | 51% | ||
Debt securities | 35% | 34% | 33% | ||
Real estate and other | 14% | 16% | 16% | ||
Net periodic benefit expense | 100% | 100% | 100% |
• | Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. |
• | Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with observable market data. |
• | Level 3: Unobservable inputs, which are valued based on our estimates of assumptions that market participants would use in pricing the asset or liability. |
Fair Value as of August 2, 2015 | Fair Value Measurements at August 2, 2015 Using Fair Value Hierarchy | Fair Value as of August 3, 2014 | Fair Value Measurements at August 3, 2014 Using Fair Value Hierarchy | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Short-term investments | $ | 32 | $ | 32 | $ | — | $ | — | $ | 23 | $ | 23 | $ | — | $ | — | |||||||||||||||
Equities: | |||||||||||||||||||||||||||||||
U.S. | 386 | 386 | — | — | 378 | 378 | — | — | |||||||||||||||||||||||
Non-U.S. | 312 | 312 | — | — | 332 | 332 | — | — | |||||||||||||||||||||||
Corporate bonds: | |||||||||||||||||||||||||||||||
U.S. | 494 | — | 494 | — | 469 | — | 469 | — | |||||||||||||||||||||||
Non-U.S. | 102 | — | 102 | — | 114 | — | 114 | — | |||||||||||||||||||||||
Government and agency bonds: | |||||||||||||||||||||||||||||||
U.S. | 42 | — | 42 | — | 62 | — | 62 | — | |||||||||||||||||||||||
Non-U.S. | 36 | — | 36 | — | 46 | — | 46 | — | |||||||||||||||||||||||
Municipal bonds | 68 | — | 68 | — | 84 | — | 84 | — | |||||||||||||||||||||||
Mortgage and asset backed securities | 9 | — | 9 | — | 13 | — | 13 | — | |||||||||||||||||||||||
Real estate | 14 | 8 | — | 6 | 8 | 5 | — | 3 | |||||||||||||||||||||||
Hedge funds | 39 | — | — | 39 | 30 | — | — | 30 | |||||||||||||||||||||||
Derivative assets | 5 | — | 5 | — | 8 | — | 8 | — | |||||||||||||||||||||||
Derivative liabilities | (6 | ) | — | (6 | ) | — | (6 | ) | — | (6 | ) | — | |||||||||||||||||||
Total assets at fair value | $ | 1,533 | $ | 738 | $ | 750 | $ | 45 | $ | 1,561 | $ | 738 | $ | 790 | $ | 33 | |||||||||||||||
Investments measured at net asset value: | |||||||||||||||||||||||||||||||
Short-term investments | 28 | 37 | |||||||||||||||||||||||||||||
Commingled funds: | |||||||||||||||||||||||||||||||
Equities | 375 | 393 | |||||||||||||||||||||||||||||
Fixed income | 31 | 36 | |||||||||||||||||||||||||||||
Blended | 79 | 95 | |||||||||||||||||||||||||||||
Real estate | 117 | 109 | |||||||||||||||||||||||||||||
Hedge funds | 175 | 151 | |||||||||||||||||||||||||||||
Total investments measured at net asset value: | 805 | 821 | |||||||||||||||||||||||||||||
Other items to reconcile to fair value of plan assets | (22 | ) | (18 | ) | |||||||||||||||||||||||||||
Total pension assets at fair value | $ | 2,316 | $ | 2,364 |
Pension | Postretirement | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Other assets | $ | — | $ | 7 | $ | — | $ | — | ||||||||
Accrued liabilities | (20 | ) | (12 | ) | (30 | ) | (29 | ) | ||||||||
Other liabilities | (233 | ) | (170 | ) | (362 | ) | (359 | ) | ||||||||
Net amount recognized | $ | (253 | ) | $ | (175 | ) | $ | (392 | ) | $ | (388 | ) |
Pension | Postretirement | |||||||||||||||
Amounts recognized in accumulated other comprehensive loss consist of: | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Net actuarial loss | $ | 1,051 | $ | 1,019 | $ | 90 | $ | 96 | ||||||||
Prior service credit | (1 | ) | (2 | ) | (4 | ) | (5 | ) | ||||||||
Total | $ | 1,050 | $ | 1,017 | $ | 86 | $ | 91 |
Pension | ||||||
2015 | 2014 | 2013 | ||||
Discount rate | 4.33% | 4.82% | 4.05% | |||
Expected return on plan assets | 7.62% | 7.62% | 7.65% | |||
Rate of compensation increase | 3.30% | 3.30% | 3.31% |
Pension | Postretirement | |||||||
2015 | 2014 | 2015 | 2014 | |||||
Discount rate | 4.19% | 4.33% | 4.00% | 4.00% | ||||
Rate of compensation increase | 3.29% | 3.30% | 3.25% | 3.25% |
2015 | 2014 | |||||||
Projected benefit obligation | $ | 1,926 | $ | 269 | ||||
Accumulated benefit obligation | $ | 1,906 | $ | 257 | ||||
Fair value of plan assets | $ | 1,684 | $ | 92 |
Total Cash-Flow Hedge OCI Activity | |||||||||
2015 | 2014 | ||||||||
OCI derivative gain (loss) at beginning of year | $ | (4 | ) | $ | 8 | ||||
Effective portion of changes in fair value recognized in OCI: | |||||||||
Foreign exchange forward contracts | 18 | — | |||||||
Forward starting interest rate swaps | (23 | ) | (12 | ) | |||||
Amount of (gain) loss reclassified from OCI to earnings: | Location in Earnings | ||||||||
Foreign exchange forward contracts | Cost of products sold | (4 | ) | (4 | ) | ||||
Foreign exchange forward contracts | Other expenses / (income) | (1 | ) | 1 | |||||
Forward starting interest rate swaps | Interest expense | 4 | 3 | ||||||
OCI derivative gain (loss) at end of year | $ | (10 | ) | $ | (4 | ) |
2015 | 2014 | 2013 | |||||||||
Cash Flows from Operating Activities | |||||||||||
Other non-cash charges to net earnings | |||||||||||
Non-cash compensation/benefit related expense | $ | 78 | $ | 114 | $ | 134 | |||||
Other | 16 | 4 | 21 | ||||||||
$ | 94 | $ | 118 | $ | 155 | ||||||
Other | |||||||||||
Benefit related payments | $ | (53 | ) | $ | (52 | ) | $ | (54 | ) | ||
Other | 1 | (1 | ) | (4 | ) | ||||||
$ | (52 | ) | $ | (53 | ) | $ | (58 | ) | |||
Other Cash Flow Information | |||||||||||
Interest paid | $ | 111 | $ | 122 | $ | 124 | |||||
Interest received | $ | 3 | $ | 3 | $ | 10 | |||||
Income taxes paid | $ | 333 | $ | 421 | $ | 345 |
2015 | 2014 | |||||||
Fair value at beginning of year | $ | 2,364 | $ | 2,275 | ||||
Actual return on plan assets | 143 | 276 | ||||||
Employer contributions | 5 | 46 | ||||||
Benefits paid | (141 | ) | (179 | ) | ||||
Settlements | — | (43 | ) | |||||
Foreign currency adjustment | (55 | ) | (11 | ) | ||||
Fair value at end of year | $ | 2,316 | $ | 2,364 |
Pension | Postretirement | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Obligation at beginning of year | $ | 2,539 | $ | 2,489 | $ | 388 | $ | 390 | ||||||||
Service cost | 28 | 42 | 2 | 2 | ||||||||||||
Interest cost | 105 | 115 | 15 | 17 | ||||||||||||
Actuarial loss | 107 | 154 | 7 | 5 | ||||||||||||
Participant contributions | — | — | 3 | 6 | ||||||||||||
Benefits paid | (151 | ) | (191 | ) | (33 | ) | (35 | ) | ||||||||
Medicare subsidies | — | — | 4 | 3 | ||||||||||||
Other | (1 | ) | (4 | ) | — | — | ||||||||||
Settlements | — | (43 | ) | — | — | |||||||||||
Curtailment | 1 | — | 6 | — | ||||||||||||
Foreign currency adjustment | (59 | ) | (12 | ) | — | — | ||||||||||
Divestiture | — | (11 | ) | — | — | |||||||||||
Benefit obligation at end of year | $ | 2,569 | $ | 2,539 | $ | 392 | $ | 388 |
2015 | 2014 | 2013 | |||||||||
Income taxes: | |||||||||||
Currently payable: | |||||||||||
Federal | $ | 246 | $ | 252 | $ | 268 | |||||
State | 31 | 30 | 24 | ||||||||
Non-U.S. | 55 | 42 | 47 | ||||||||
332 | 324 | 339 | |||||||||
Deferred: | |||||||||||
Federal | (31 | ) | 32 | (58 | ) | ||||||
State | 2 | 2 | (6 | ) | |||||||
Non-U.S. | (4 | ) | (11 | ) | — | ||||||
(33 | ) | 23 | (64 | ) | |||||||
$ | 299 | $ | 347 | $ | 275 | ||||||
Earnings from continuing operations before income taxes: | |||||||||||
United States | $ | 850 | $ | 995 | $ | 815 | |||||
Non-U.S. | 140 | 78 | 140 | ||||||||
$ | 990 | $ | 1,073 | $ | 955 |
Type | Fiscal Year of Maturity | Rate | 2015 | 2014 | ||||||||
Notes | 2015 | 3.38% | $ | — | $ | 300 | ||||||
Notes | 2017 | 3.05% | 400 | 400 | ||||||||
Notes | 2019 | 4.50% | 300 | 300 | ||||||||
Notes | 2021 | 4.25% | 500 | 500 | ||||||||
Debentures | 2021 | 8.88% | 200 | 200 | ||||||||
Notes | 2023 | 2.50% | 450 | 450 | ||||||||
Notes | 2025 | 3.30% | 300 | — | ||||||||
Notes | 2043 | 3.80% | 400 | 400 | ||||||||
Capital leases | 10 | 3 | ||||||||||
Other(1) | (8 | ) | (9 | ) | ||||||||
Total | $ | 2,552 | $ | 2,544 | ||||||||
Less current portion | — | 300 | ||||||||||
Total long-term debt | $ | 2,552 | $ | 2,244 |
(1) | Other includes unamortized net premium/discount on debt issuances. |
2015 | 2014 | ||||||
Depreciation | $ | 306 | $ | 300 | |||
Amortization | 541 | 541 | |||||
Other | 16 | 17 | |||||
Deferred tax liabilities | 863 | 858 | |||||
Benefits and compensation | 298 | 294 | |||||
Pension benefits | 92 | 63 | |||||
Tax loss carryforwards | 44 | 49 | |||||
Capital loss carryforwards | 85 | 112 | |||||
Other | 101 | 70 | |||||
Gross deferred tax assets | 620 | 588 | |||||
Deferred tax asset valuation allowance | (122 | ) | (151 | ) | |||
Net deferred tax assets | 498 | 437 | |||||
Net deferred tax liability | $ | 365 | $ | 421 |
Balance Sheet Classification | 2015 | 2014 | |||||||
Asset Derivatives | |||||||||
Derivatives designated as hedges: | |||||||||
Foreign exchange forward contracts | Other current assets | $ | 3 | $ | 1 | ||||
Forward starting interest rate swaps | Other current assets | — | 11 | ||||||
Total derivatives designated as hedges | $ | 3 | $ | 12 | |||||
Derivatives not designated as hedges: | |||||||||
Commodity derivative contracts | Other current assets | $ | 1 | $ | 2 | ||||
Cross-currency swap contracts | Other current assets | 18 | — | ||||||
Deferred compensation derivative contracts | Other current assets | 1 | — | ||||||
Foreign exchange forward contracts | Other current assets | 9 | 1 | ||||||
Cross-currency swap contracts | Other assets | 22 | — | ||||||
Total derivatives not designated as hedges | $ | 51 | $ | 3 | |||||
Total asset derivatives | $ | 54 | $ | 15 |
Balance Sheet Classification | 2015 | 2014 | |||||||
Liability Derivatives | |||||||||
Derivatives designated as hedges: | |||||||||
Foreign exchange forward contracts | Accrued liabilities | $ | — | $ | 1 | ||||
Forward starting interest rate swaps | Other liabilities | 8 | — | ||||||
Total derivatives designated as hedges | $ | 8 | $ | 1 | |||||
Derivatives not designated as hedges: | |||||||||
Commodity derivative contracts | Accrued liabilities | $ | 10 | $ | 10 | ||||
Cross-currency swap contracts | Accrued liabilities | — | 1 | ||||||
Deferred compensation derivative contracts | Accrued liabilities | — | 3 | ||||||
Foreign exchange forward contracts | Accrued liabilities | 2 | 2 | ||||||
Commodity derivative contracts | Other liabilities | — | 1 | ||||||
Cross-currency swap contracts | Other liabilities | — | 5 | ||||||
Total derivatives not designated as hedges | $ | 12 | $ | 22 | |||||
Total liability derivatives | $ | 20 | $ | 23 |
2014 | 2013 | |||||||
Net sales | $ | 137 | $ | 532 | ||||
Gain on sale of the European simple meals business | $ | 141 | $ | — | ||||
Impairment on the European simple meals business | — | (396 | ) | |||||
Earnings from operations, before taxes | 14 | 65 | ||||||
Earnings (loss) before taxes | $ | 155 | $ | (331 | ) | |||
Taxes on earnings | (74 | ) | 100 | |||||
Earnings (loss) from discontinued operations | $ | 81 | $ | (231 | ) |
Increase | Decrease | |||||||
Effect on service and interest cost | $ | 1 | $ | (1 | ) | |||
Effect on the 2015 accumulated benefit obligation | $ | 25 | $ | (22 | ) |
Real Estate | Hedge Funds | Total | ||||||||||
Fair value at August 3, 2014 | $ | 3 | $ | 30 | $ | 33 | ||||||
Actual return on plan assets | 1 | 2 | 3 | |||||||||
Purchases | 2 | 7 | 9 | |||||||||
Sales | — | — | — | |||||||||
Settlements | — | — | — | |||||||||
Transfers out of Level 3 | — | — | — | |||||||||
Fair value at August 2, 2015 | $ | 6 | $ | 39 | $ | 45 |
Real Estate | Hedge Funds | Total | ||||||||||
Fair value at July 28, 2013 | $ | — | $ | 25 | $ | 25 | ||||||
Actual return on plan assets | — | 1 | 1 | |||||||||
Purchases | 3 | 4 | 7 | |||||||||
Sales | — | — | — | |||||||||
Settlements | — | — | — | |||||||||
Transfers out of Level 3 | — | — | — | |||||||||
Fair value at August 3, 2014 | $ | 3 | $ | 30 | $ | 33 |
2015 | 2014 | 2013 | ||||||
Federal statutory income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State income taxes (net of federal tax benefit) | 2.2 | 2.0 | 1.1 | |||||
Tax effect of international items | (2.4 | ) | (1.0 | ) | (2.6 | ) | ||
Settlement of tax contingencies | (0.7 | ) | — | (0.1 | ) | |||
Federal manufacturing deduction | (2.8 | ) | (2.3 | ) | (2.7 | ) | ||
Other | (1.1 | ) | (1.4 | ) | (1.9 | ) | ||
Effective income tax rate | 30.2 | % | 32.3 | % | 28.8 | % |
Pension | Postretirement | |||||||
2016 | $ | 246 | $ | 30 | ||||
2017 | $ | 169 | $ | 31 | ||||
2018 | $ | 165 | $ | 31 | ||||
2019 | $ | 168 | $ | 31 | ||||
2020 | $ | 165 | $ | 31 | ||||
2021-2025 | $ | 828 | $ | 141 |
Fair Value as of August 2, 2015 | Fair Value Measurements at August 2, 2015 Using Fair Value Hierarchy | Fair Value as of August 3, 2014 | Fair Value Measurements at August 3, 2014 Using Fair Value Hierarchy | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Forward starting interest rate swaps(1) | $ | — | $ | — | $ | — | $ | — | $ | 11 | $ | — | $ | 11 | $ | — | |||||||||||||||
Foreign exchange forward contracts(2) | 12 | — | 12 | — | 2 | — | 2 | — | |||||||||||||||||||||||
Commodity derivative contracts(3) | 1 | 1 | — | — | 2 | 1 | 1 | — | |||||||||||||||||||||||
Cross-currency swap contracts(4) | 40 | — | 40 | — | — | — | — | — | |||||||||||||||||||||||
Deferred compensation derivative contracts(5) | 1 | — | 1 | — | — | — | — | — | |||||||||||||||||||||||
Total assets at fair value | $ | 54 | $ | 1 | $ | 53 | $ | — | $ | 15 | $ | 1 | $ | 14 | $ | — |
Fair Value as of August 2, 2015 | Fair Value Measurements at August 2, 2015 Using Fair Value Hierarchy | Fair Value as of August 3, 2014 | Fair Value Measurements at August 3, 2014 Using Fair Value Hierarchy | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Forward starting interest rate swaps(1) | $ | 8 | $ | — | $ | 8 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Foreign exchange forward contracts(2) | 2 | — | 2 | — | 3 | — | 3 | — | |||||||||||||||||||||||
Commodity derivative contracts(3) | 10 | 10 | — | — | 11 | 11 | — | — | |||||||||||||||||||||||
Cross-currency swap contracts(4) | — | — | — | — | 6 | — | 6 | — | |||||||||||||||||||||||
Deferred compensation derivative contracts(5) | — | — | — | — | 3 | — | 3 | — | |||||||||||||||||||||||
Deferred compensation obligation(6) | 120 | 120 | — | — | 123 | 123 | — | — | |||||||||||||||||||||||
Total liabilities at fair value | $ | 140 | $ | 130 | $ | 10 | $ | — | $ | 146 | $ | 134 | $ | 12 | $ | — |
(1) | Based on LIBOR swap rates. |
(2) | Based on observable market transactions of spot currency rates and forward rates. |
(3) | Based on quoted futures exchanges and on observable prices of futures and options transactions in the marketplace. |
(4) | Based on observable local benchmarks for currency and interest rates. |
(5) | Based on LIBOR and equity index swap rates. |
(6) | Based on the fair value of the participants’ investments. |
2016 | 2017 | 2018 | 2019 | 2020 | Thereafter |
$38 | $26 | $22 | $17 | $15 | $21 |
U.S. Simple Meals | Global Baking and Snacking | International Simple Meals and Beverages | U.S. Beverages | Bolthouse and Foodservice | Total | ||||||||||||||||||
Balance at July 28, 2013 | $ | 450 | $ | 775 | $ | 122 | $ | 112 | $ | 838 | $ | 2,297 | |||||||||||
Acquisition | — | 140 | — | — | — | 140 | |||||||||||||||||
Foreign currency translation adjustment | — | 3 | (7 | ) | — | — | (4 | ) | |||||||||||||||
Balance at August 3, 2014 | $ | 450 | $ | 918 | $ | 115 | $ | 112 | $ | 838 | $ | 2,433 | |||||||||||
Acquisition | — | — | — | — | 116 | 116 | |||||||||||||||||
Foreign currency translation adjustment | — | (186 | ) | (19 | ) | — | — | (205 | ) | ||||||||||||||
Balance at August 2, 2015 | $ | 450 | $ | 732 | $ | 96 | $ | 112 | $ | 954 | $ | 2,344 |
2015 | 2014 | |||
Health care cost trend rate assumed for next year | 7.75% | 8.25% | ||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 4.50% | 4.50% | ||
Year that the rate reaches the ultimate trend rate | 2022 | 2022 |
Postretirement | |||||||||||
2015 | 2014 | 2013 | |||||||||
Service cost | $ | 2 | $ | 2 | $ | 3 | |||||
Interest cost | 15 | 17 | 15 | ||||||||
Amortization of prior service credit | (1 | ) | (1 | ) | (1 | ) | |||||
Recognized net actuarial loss | 14 | 13 | 15 | ||||||||
Curtailment loss | 6 | — | — | ||||||||
Net periodic benefit expense | $ | 36 | $ | 31 | $ | 32 |
Pension | |||||||||||
2015 | 2014 | 2013 | |||||||||
Service cost | $ | 28 | $ | 42 | $ | 57 | |||||
Interest cost | 105 | 115 | 108 | ||||||||
Expected return on plan assets | (173 | ) | (176 | ) | (177 | ) | |||||
Amortization of prior service credit | (1 | ) | (1 | ) | (1 | ) | |||||
Recognized net actuarial loss | 84 | 76 | 108 | ||||||||
Curtailment loss | 1 | — | 3 | ||||||||
Settlement charges | — | 22 | — | ||||||||
Net periodic benefit expense | $ | 44 | $ | 78 | $ | 98 |
2015 | 2014 | 2013 | ||||||||||
Net sales | ||||||||||||
Simple Meals | $ | 4,446 | $ | 4,511 | $ | 4,446 | ||||||
Baked Snacks | 2,502 | 2,571 | 2,408 | |||||||||
Beverages | 1,134 | 1,186 | 1,198 | |||||||||
Total | $ | 8,082 | $ | 8,268 | $ | 8,052 |
2015 | |||||||||||||||
First | Second | Third | Fourth | ||||||||||||
Net sales | $ | 2,255 | $ | 2,234 | $ | 1,900 | $ | 1,693 | |||||||
Gross profit | 783 | 728 | 682 | 612 | |||||||||||
Net earnings attributable to Campbell Soup Company | 234 | 207 | 182 | 68 | |||||||||||
Per share - basic | |||||||||||||||
Net earnings attributable to Campbell Soup Company | .75 | .66 | .59 | .22 | |||||||||||
Dividends | .312 | .312 | .312 | .312 | |||||||||||
Per share - assuming dilution | |||||||||||||||
Net earnings attributable to Campbell Soup Company | .74 | .66 | .58 | .22 | |||||||||||
Market price | |||||||||||||||
High | $ | 45.12 | $ | 47.45 | $ | 48.31 | $ | 49.54 | |||||||
Low | $ | 41.15 | $ | 42.70 | $ | 44.45 | $ | 44.92 |
2015 | |||||||||||||||
First | Second | Third | Fourth | ||||||||||||
In 2015, the following charges were recorded in Net earnings attributable to Campbell Soup Company: | |||||||||||||||
Restructuring charges and implementation costs (see Note 8) | $ | — | $ | — | $ | 11 | $ | 67 | |||||||
Per share - assuming dilution | |||||||||||||||
Restructuring charges and implementation costs | — | — | .04 | .21 |
2014 | |||||||||||||||
First | Second | Third | Fourth | ||||||||||||
Net sales | $ | 2,165 | $ | 2,281 | $ | 1,970 | $ | 1,852 | |||||||
Gross profit | 777 | 814 | 676 | 631 | |||||||||||
Earnings from continuing operations attributable to Campbell Soup Company | 181 | 235 | 184 | 137 | |||||||||||
Earnings (loss) from discontinued operations | (9 | ) | 90 | — | — | ||||||||||
Net earnings attributable to Campbell Soup Company | 172 | 325 | 184 | 137 | |||||||||||
Per share - basic | |||||||||||||||
Earnings from continuing operations attributable to Campbell Soup Company | .58 | .75 | .59 | .44 | |||||||||||
Earnings (loss) from discontinued operations | (.03 | ) | .29 | — | — | ||||||||||
Net earnings attributable to Campbell Soup Company(1) | .55 | 1.04 | .59 | .44 | |||||||||||
Dividends | .312 | .312 | .312 | .312 | |||||||||||
Per share - assuming dilution | |||||||||||||||
Earnings from continuing operations attributable to Campbell Soup Company | .57 | .74 | .58 | .43 | |||||||||||
Earnings (loss) from discontinued operations | (.03 | ) | .28 | — | — | ||||||||||
Net earnings attributable to Campbell Soup Company(1) | .54 | 1.03 | .58 | .43 | |||||||||||
Market price | |||||||||||||||
High | $ | 48.08 | $ | 43.70 | $ | 45.48 | $ | 46.67 | |||||||
Low | $ | 39.87 | $ | 38.30 | $ | 39.60 | $ | 41.39 |
(1) | The sum of the individual per share amounts may not add due to rounding. |
2014 | |||||||||||||||
First | Second | Third | Fourth | ||||||||||||
In 2014, the following charges were recorded in Earnings from continuing operations: | |||||||||||||||
Restructuring charges and related costs (see Note 8) | $ | 15 | $ | 5 | $ | 1 | $ | 15 | |||||||
Pension settlement charges (see Note 11) | — | — | 11 | 3 | |||||||||||
Loss on foreign exchange forward contracts related to the sale of the European simple meals business (see Note 19) | 6 | — | — | — | |||||||||||
Tax expense associated with the sale of the European simple meals business | 7 | — | — | — | |||||||||||
Per share - assuming dilution | |||||||||||||||
Restructuring charges and related costs | .05 | .02 | — | .05 | |||||||||||
Pension settlement charges | — | — | .03 | .01 | |||||||||||
Loss on foreign exchange forward contracts related to the sale of the European simple meals business | .02 | — | — | — | |||||||||||
Tax expense associated with the sale of the European simple meals business | .02 | — | — | — | |||||||||||
In 2014, the following charges (gains) were recorded in Earnings (loss) from discontinuing operations: | |||||||||||||||
Taxes, costs associated with the sale, and gain on sale of the European simple meals business (see Note 4) | $ | 18 | $ | (90 | ) | — | — | ||||||||
Per share - assuming dilution | |||||||||||||||
Taxes, costs associated with the sale, and gain on sale of the European simple meals business (see Note 4) | .06 | (.28 | ) | — | — |
Garden Fresh Gourmet | Kelsen | Plum | Bolthouse Farms | |||||||||||||
Cash | $ | — | $ | 2 | $ | 1 | $ | 3 | ||||||||
Accounts receivable | 10 | 20 | 15 | 74 | ||||||||||||
Inventories | 5 | 50 | 20 | 122 | ||||||||||||
Other current assets | — | 2 | 1 | 8 | ||||||||||||
Plant assets | 22 | 47 | 2 | 335 | ||||||||||||
Goodwill | 116 | 140 | 128 | 692 | ||||||||||||
Other intangible assets | 86 | 173 | 133 | 580 | ||||||||||||
Other assets | — | — | — | 8 | ||||||||||||
Short-term debt | — | (32 | ) | — | (1 | ) | ||||||||||
Accounts payable | (6 | ) | (13 | ) | (12 | ) | (59 | ) | ||||||||
Accrued liabilities | (1 | ) | (10 | ) | (5 | ) | (29 | ) | ||||||||
Long-term debt | — | (4 | ) | — | (1 | ) | ||||||||||
Deferred income taxes | — | (44 | ) | (34 | ) | (156 | ) | |||||||||
Other liabilities | — | — | — | (15 | ) | |||||||||||
Total assets acquired and liabilities assumed | $ | 232 | $ | 331 | $ | 249 | $ | 1,561 |
Total Program | |||
Severance pay and benefits | $ | 41 | |
Asset impairment | 12 | ||
Other exit costs | 1 | ||
Total | $ | 54 |
Total Program | |||
Severance pay and benefits | $ | 35 | |
Accelerated depreciation/asset impairment | 99 | ||
Other exit costs | 12 | ||
Total | $ | 146 |
Recognized as of August 2, 2015 | |||
Severance pay and benefits | $ | 94 | |
Implementation and other costs | 30 | ||
Total | $ | 124 |
Accrued Balance at August 3, 2014 | 2015 Charges | 2015 Cash Payments | Foreign Currency Translation Adjustment | Accrued Balance at August 2, 2015 (3) | ||||||||||||||||
Severance pay and benefits | $ | — | $ | 87 | $ | (1 | ) | $ | (1 | ) | $ | 85 | ||||||||
Other costs | — | 8 | — | — | 8 | |||||||||||||||
$ | — | 95 | $ | (1 | ) | $ | (1 | ) | $ | 93 | ||||||||||
Non-cash benefits(1) | 7 | |||||||||||||||||||
Implementation costs(2) | 22 | |||||||||||||||||||
Total charges | $ | 124 |
(1) | Represents postretirement and pension curtailment costs. See Note 11. |
(2) | Includes other costs recognized as incurred that are not reflected in the restructuring reserve in the Consolidated Balance Sheet. The costs are included in Administrative expenses in the Consolidated Statements of Earnings. |
Severance Pay and Benefits | Asset Impairment/Accelerated Depreciation | Non-Cash Benefits(1) | Other Exit Costs(2) | Total Charges | |||||||||||||
Accrued balance at July 29, 2012 | $ | — | |||||||||||||||
2013 charges | 32 | 99 | 3 | 8 | $ | 142 | |||||||||||
2013 cash payments | (15 | ) | |||||||||||||||
Accrued balance at July 28, 2013 | $ | 17 | |||||||||||||||
2014 charges | — | — | — | 4 | $ | 4 | |||||||||||
2014 cash payments | (14 | ) | |||||||||||||||
Accrued balance at August 3, 2014 | $ | 3 | |||||||||||||||
2015 cash payments | (3 | ) | |||||||||||||||
Accrued balance at August 2, 2015 | $ | — |
(1) | Represents pension curtailment costs. See Note 11. |
(2) | Includes non-cash costs and other exit costs recognized as incurred that are not reflected in the restructuring reserve in the Consolidated Balance Sheet |
Accrued Balance at July 28, 2013 | 2014 Charges | 2014 Cash Payments | Accrued Balance at August 3, 2014 | 2015 Cash Payments | Foreign Currency Translation Adjustment | Accrued Balance at August 2, 2015(2) | ||||||||||||||||||
Severance pay and benefits | $ | — | $ | 41 | (13 | ) | 28 | (16 | ) | (2 | ) | $ | 10 | |||||||||||
Asset impairment | 12 | |||||||||||||||||||||||
Other exit costs(1) | 1 | |||||||||||||||||||||||
Total charges | $ | 54 |
(1) | Includes non-cash costs that are not reflected in the restructuring reserve in the Consolidated Balance Sheet. |
(2) | Includes $4 of severance pay and benefits recorded in Other liabilities in the Consolidated Balance Sheet. |
2015 | 2014 | 2013 | ||||||||||
Net sales | ||||||||||||
United States | $ | 6,400 | $ | 6,432 | $ | 6,195 | ||||||
Australia | 646 | 709 | 801 | |||||||||
Other countries | 1,036 | 1,127 | 1,056 | |||||||||
Total | $ | 8,082 | $ | 8,268 | $ | 8,052 |
2015 | 2014 | 2013 | ||||||||||
Long-lived assets | ||||||||||||
United States | $ | 1,942 | $ | 1,844 | $ | 1,804 | ||||||
Australia | 232 | 306 | 317 | |||||||||
Other countries | 173 | 168 | 139 | |||||||||
Total | $ | 2,347 | $ | 2,318 | $ | 2,260 |
2015 | 2014 | 2013 | ||||||||||
Net sales | ||||||||||||
U.S. Simple Meals | $ | 2,930 | $ | 2,944 | $ | 2,849 | ||||||
Global Baking and Snacking | 2,375 | 2,440 | 2,273 | |||||||||
International Simple Meals and Beverages | 700 | 780 | 869 | |||||||||
U.S. Beverages | 689 | 723 | 742 | |||||||||
Bolthouse and Foodservice | 1,388 | 1,381 | 1,319 | |||||||||
Total | $ | 8,082 | $ | 8,268 | $ | 8,052 |
2015 | 2014 | 2013 | ||||||||||
Earnings before interest and taxes | ||||||||||||
U.S. Simple Meals | $ | 677 | $ | 714 | $ | 731 | ||||||
Global Baking and Snacking | 350 | 332 | 316 | |||||||||
International Simple Meals and Beverages | 80 | 106 | 108 | |||||||||
U.S. Beverages | 113 | 127 | 120 | |||||||||
Bolthouse and Foodservice | 107 | 117 | 116 | |||||||||
Corporate(1) | (130 | ) | (149 | ) | (260 | ) | ||||||
Restructuring charges(2) | (102 | ) | (55 | ) | (51 | ) | ||||||
Total | $ | 1,095 | $ | 1,192 | $ | 1,080 |
2015 | 2014 | 2013 | ||||||||||
Depreciation and amortization | ||||||||||||
U.S. Simple Meals | $ | 80 | $ | 77 | $ | 146 | ||||||
Global Baking and Snacking | 87 | 93 | 83 | |||||||||
International Simple Meals and Beverages | 18 | 19 | 23 | |||||||||
U.S. Beverages | 22 | 21 | 39 | |||||||||
Bolthouse and Foodservice | 80 | 80 | 90 | |||||||||
Corporate(4) | 16 | 15 | 15 | |||||||||
Discontinued Operations | — | — | 11 | |||||||||
Total | $ | 303 | $ | 305 | $ | 407 |
2015 | 2014 | 2013 | ||||||||||
Capital expenditures | ||||||||||||
U.S. Simple Meals and U.S. Beverages(3) | $ | 118 | $ | 115 | $ | 82 | ||||||
Global Baking and Snacking | 128 | 120 | 112 | |||||||||
International Simple Meals and Beverages | 28 | 26 | 19 | |||||||||
Bolthouse and Foodservice | 82 | 57 | 83 | |||||||||
Corporate(4) | 24 | 28 | 30 | |||||||||
Discontinued Operations | — | 1 | 10 | |||||||||
Total | $ | 380 | $ | 347 | $ | 336 |
(1) | Represents unallocated corporate expenses. Costs of $22 related to the implementation of our new organizational structure and cost reduction initiatives were included in 2015. Pension settlement charges of $22 associated with a U.S. pension plan were included in 2014. The settlements resulted from the level of lump sum distributions from the plan's assets in 2014, primarily due to the closure of the facility in Sacramento, California. In addition, a loss of $9 on foreign exchange forward contracts related to the sale of the European simple meals business and restructuring-related costs of $3 were included in 2014. Restructuring-related costs of $91 and acquisition costs of $10 were included in 2013. |
(2) | See Note 8 for additional information. |
(3) | Capital expenditures for U.S. Simple Meals and U.S. Beverages are not maintained by segment. |
(4) | Represents primarily corporate offices. |
Units | Weighted- Average Grant-Date Fair Value | |||||
(Restricted stock units in thousands) | ||||||
Nonvested at August 3, 2014 | 861 | $ | 38.15 | |||
Granted | 874 | $ | 43.39 | |||
Vested | — | $ | — | |||
Forfeited | (156 | ) | $ | 41.23 | ||
Nonvested at August 2, 2015 | 1,579 | $ | 40.75 |
Units | Weighted- Average Grant-Date Fair Value | |||||
(Restricted stock units in thousands) | ||||||
Nonvested at August 3, 2014 | 2,994 | $ | 37.69 | |||
Granted | 1,183 | $ | 43.00 | |||
Vested | (1,303 | ) | $ | 35.89 | ||
Forfeited | (464 | ) | $ | 37.00 | ||
Nonvested at August 2, 2015 | 2,410 | $ | 41.40 |
Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||
(Options in thousands) | (In years) | |||||||||||
Outstanding at August 3, 2014 | 408 | $ | 28.33 | |||||||||
Granted | — | $ | — | |||||||||
Exercised | (331 | ) | $ | 27.98 | ||||||||
Terminated | (3 | ) | $ | 26.36 | ||||||||
Outstanding at August 2, 2015 | 74 | $ | 29.91 | 0.4 | $ | 1 | ||||||
Exercisable at August 2, 2015 | 74 | $ | 29.91 | 0.4 | $ | 1 |
2015 | 2014 | 2013 | |||
Risk-free interest rate | 0.97% | 0.60% | 0.30% | ||
Expected dividend yield | 2.91% | 2.98% | 3.26% | ||
Expected volatility | 16.20% | 15.76% | 15.07% | ||
Expected term | 3 years | 3 years | 3 years |
2015 | 2014 | ||||||
Commercial paper | $ | 1,532 | $ | 1,406 | |||
Current portion of long-term debt | — | 300 | |||||
Variable-rate bank borrowings | 1 | 47 | |||||
Fixed-rate bank borrowings | 9 | 17 | |||||
Capital leases | 1 | 1 | |||||
$ | 1,543 | $ | 1,771 |
2015 | 2014 | 2013 | |||||||||
Balance at beginning of year | $ | 71 | $ | 61 | $ | 48 | |||||
Increases related to prior-year tax positions | 9 | — | 28 | ||||||||
Decreases related to prior-year tax positions | — | (1 | ) | (7 | ) | ||||||
Increases related to current-year tax positions | 5 | 11 | 9 | ||||||||
Settlements | (27 | ) | — | (15 | ) | ||||||
Lapse of statute | — | — | (2 | ) | |||||||
Balance at end of year | $ | 58 | $ | 71 | $ | 61 |
Balance at Beginning of Period | Charged to/ (Reduction in) Costs and Expenses | Deductions | Acquisitions | Balance at End of Period | |||||||||||||||
Fiscal year ended August 2, 2015 | |||||||||||||||||||
Cash discount | $ | 4 | $ | 116 | $ | (115 | ) | $ | — | $ | 5 | ||||||||
Bad debt reserve | 3 | 2 | (1 | ) | — | 4 | |||||||||||||
Returns reserve(1) | 5 | — | (1 | ) | — | 4 | |||||||||||||
Total Accounts receivable allowances | $ | 12 | $ | 118 | $ | (117 | ) | $ | — | $ | 13 | ||||||||
Fiscal year ended August 3, 2014 | |||||||||||||||||||
Cash discount | $ | 5 | $ | 114 | $ | (115 | ) | $ | — | $ | 4 | ||||||||
Bad debt reserve | 2 | — | (1 | ) | 2 | 3 | |||||||||||||
Returns reserve(1) | 4 | 1 | — | — | 5 | ||||||||||||||
Total Accounts receivable allowances | $ | 11 | $ | 115 | $ | (116 | ) | $ | 2 | $ | 12 | ||||||||
Fiscal year ended July 28, 2013 | |||||||||||||||||||
Cash discount | $ | 4 | $ | 114 | $ | (113 | ) | $ | — | $ | 5 | ||||||||
Bad debt reserve | 2 | 1 | (1 | ) | — | 2 | |||||||||||||
Returns reserve(1) | 4 | 1 | (1 | ) | — | 4 | |||||||||||||
Total Accounts receivable allowances | $ | 10 | $ | 116 | $ | (115 | ) | $ | — | $ | 11 |
(1) | The returns reserve is evaluated quarterly and adjusted accordingly. During each period, returns are charged to net sales in the Consolidated Statements of Earnings as incurred. Actual returns were approximately $105 in 2015, $118 in 201 and $124 in 2013, or less than 2% of net sales. |
2015 | 2014 | 2013 | ||||||||||
Net sales | ||||||||||||
U.S. Simple Meals | $ | 2,930 | $ | 2,944 | $ | 2,849 | ||||||
Global Baking and Snacking | 2,375 | 2,440 | 2,273 | |||||||||
International Simple Meals and Beverages | 700 | 780 | 869 | |||||||||
U.S. Beverages | 689 | 723 | 742 | |||||||||
Bolthouse and Foodservice | 1,388 | 1,381 | 1,319 | |||||||||
Total | $ | 8,082 | $ | 8,268 | $ | 8,052 |
2015 | 2014 | 2013 | ||||||||||
Earnings before interest and taxes | ||||||||||||
U.S. Simple Meals | $ | 677 | $ | 714 | $ | 731 | ||||||
Global Baking and Snacking | 350 | 332 | 316 | |||||||||
International Simple Meals and Beverages | 80 | 106 | 108 | |||||||||
U.S. Beverages | 113 | 127 | 120 | |||||||||
Bolthouse and Foodservice | 107 | 117 | 116 | |||||||||
Corporate(1) | (130 | ) | (149 | ) | (260 | ) | ||||||
Restructuring charges(2) | (102 | ) | (55 | ) | (51 | ) | ||||||
Total | $ | 1,095 | $ | 1,192 | $ | 1,080 |
2015 | 2014 | 2013 | ||||||||||
Depreciation and amortization | ||||||||||||
U.S. Simple Meals | $ | 80 | $ | 77 | $ | 146 | ||||||
Global Baking and Snacking | 87 | 93 | 83 | |||||||||
International Simple Meals and Beverages | 18 | 19 | 23 | |||||||||
U.S. Beverages | 22 | 21 | 39 | |||||||||
Bolthouse and Foodservice | 80 | 80 | 90 | |||||||||
Corporate(4) | 16 | 15 | 15 | |||||||||
Discontinued Operations | — | — | 11 | |||||||||
Total | $ | 303 | $ | 305 | $ | 407 |
2015 | 2014 | 2013 | ||||||||||
Capital expenditures | ||||||||||||
U.S. Simple Meals and U.S. Beverages(3) | $ | 118 | $ | 115 | $ | 82 | ||||||
Global Baking and Snacking | 128 | 120 | 112 | |||||||||
International Simple Meals and Beverages | 28 | 26 | 19 | |||||||||
Bolthouse and Foodservice | 82 | 57 | 83 | |||||||||
Corporate(4) | 24 | 28 | 30 | |||||||||
Discontinued Operations | — | 1 | 10 | |||||||||
Total | $ | 380 | $ | 347 | $ | 336 |
(1) | Represents unallocated corporate expenses. Costs of $22 related to the implementation of our new organizational structure and cost reduction initiatives were included in 2015. Pension settlement charges of $22 associated with a U.S. pension plan were included in 2014. The settlements resulted from the level of lump sum distributions from the plan's assets in 2014, primarily due to the closure of the facility in Sacramento, California. In addition, a loss of $9 on foreign exchange forward contracts related to the sale of the European simple meals business and restructuring-related costs of $3 were included in 2014. Restructuring-related costs of $91 and acquisition costs of $10 were included in 2013. |
(2) | See Note 8 for additional information. |
(3) | Capital expenditures for U.S. Simple Meals and U.S. Beverages are not maintained by segment. |
(4) | Represents primarily corporate offices. |
2015 | 2014 | 2013 | ||||||||||
Net sales | ||||||||||||
Simple Meals | $ | 4,446 | $ | 4,511 | $ | 4,446 | ||||||
Baked Snacks | 2,502 | 2,571 | 2,408 | |||||||||
Beverages | 1,134 | 1,186 | 1,198 | |||||||||
Total | $ | 8,082 | $ | 8,268 | $ | 8,052 |
2015 | 2014 | 2013 | ||||||||||
Net sales | ||||||||||||
United States | $ | 6,400 | $ | 6,432 | $ | 6,195 | ||||||
Australia | 646 | 709 | 801 | |||||||||
Other countries | 1,036 | 1,127 | 1,056 | |||||||||
Total | $ | 8,082 | $ | 8,268 | $ | 8,052 |
2015 | 2014 | 2013 | ||||||||||
Long-lived assets | ||||||||||||
United States | $ | 1,942 | $ | 1,844 | $ | 1,804 | ||||||
Australia | 232 | 306 | 317 | |||||||||
Other countries | 173 | 168 | 139 | |||||||||
Total | $ | 2,347 | $ | 2,318 | $ | 2,260 |
Balance at Beginning of Period | Charged to/ (Reduction in) Costs and Expenses | Deductions | Acquisitions | Balance at End of Period | |||||||||||||||
Fiscal year ended August 2, 2015 | |||||||||||||||||||
Cash discount | $ | 4 | $ | 116 | $ | (115 | ) | $ | — | $ | 5 | ||||||||
Bad debt reserve | 3 | 2 | (1 | ) | — | 4 | |||||||||||||
Returns reserve(1) | 5 | — | (1 | ) | — | 4 | |||||||||||||
Total Accounts receivable allowances | $ | 12 | $ | 118 | $ | (117 | ) | $ | — | $ | 13 | ||||||||
Fiscal year ended August 3, 2014 | |||||||||||||||||||
Cash discount | $ | 5 | $ | 114 | $ | (115 | ) | $ | — | $ | 4 | ||||||||
Bad debt reserve | 2 | — | (1 | ) | 2 | 3 | |||||||||||||
Returns reserve(1) | 4 | 1 | — | — | 5 | ||||||||||||||
Total Accounts receivable allowances | $ | 11 | $ | 115 | $ | (116 | ) | $ | 2 | $ | 12 | ||||||||
Fiscal year ended July 28, 2013 | |||||||||||||||||||
Cash discount | $ | 4 | $ | 114 | $ | (113 | ) | $ | — | $ | 5 | ||||||||
Bad debt reserve | 2 | 1 | (1 | ) | — | 2 | |||||||||||||
Returns reserve(1) | 4 | 1 | (1 | ) | — | 4 | |||||||||||||
Total Accounts receivable allowances | $ | 10 | $ | 116 | $ | (115 | ) | $ | — | $ | 11 |
(1) | The returns reserve is evaluated quarterly and adjusted accordingly. During each period, returns are charged to net sales in the Consolidated Statements of Earnings as incurred. Actual returns were approximately $105 in 2015, $118 in 201 and $124 in 2013, or less than 2% of net sales. |