Amount of (Gain) Loss Recognized in Earnings on Derivatives | ||||||||||||||
Derivatives not Designated as Hedges | Location of (Gain) Loss Recognized in Earnings | 2019 | 2018 | 2017 | ||||||||||
Foreign exchange forward contracts | Cost of products sold | $ | — | $ | (1 | ) | $ | 1 | ||||||
Foreign exchange forward contracts | Other expenses / (income) | — | (1 | ) | 14 | |||||||||
Foreign exchange forward contracts | Loss from discontinued operations | — | — | (1 | ) | |||||||||
Commodity derivative contracts | Cost of products sold | 6 | (2 | ) | (11 | ) | ||||||||
Commodity derivative contracts | Loss from discontinued operations | (1 | ) | — | — | |||||||||
Deferred compensation derivative contracts | Administrative expenses | (2 | ) | (2 | ) | (3 | ) | |||||||
Treasury rate lock contracts | Interest expense | — | (18 | ) | — | |||||||||
Total | $ | 3 | $ | (24 | ) | $ | — |
2019 | 2018 | 2017 | |||||||||
Cash flows from discontinued operating activities: | |||||||||||
Impairment charges | $ | 377 | $ | 694 | $ | 212 | |||||
Depreciation and amortization | 83 | 115 | 125 | ||||||||
Losses on sales of discontinued operations businesses | 32 | — | — | ||||||||
Cash flows from discontinued investing activities: | |||||||||||
Capital expenditures | $ | 59 | $ | 88 | $ | 99 | |||||
Sales of discontinued operations businesses, net of cash divested | 539 | — | — |
Campbell Fresh | Campbell International | ||||||||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||||||||
Net sales | $ | 756 | $ | 950 | $ | 947 | $ | 1,046 | $ | 1,120 | $ | 1,106 | |||||||||||
Impairment charges | $ | 360 | $ | 694 | $ | 212 | $ | 17 | $ | — | $ | — | |||||||||||
Earnings (loss) before taxes from operations | $ | (359 | ) | $ | (721 | ) | $ | (221 | ) | $ | 120 | $ | 163 | $ | 198 | ||||||||
Taxes on earnings (loss) from operations | (78 | ) | (142 | ) | (34 | ) | 41 | 47 | 48 | ||||||||||||||
Loss on sales of businesses / costs associated with selling the businesses | (32 | ) | — | — | (12 | ) | — | — | |||||||||||||||
Tax expense (benefit) of loss on sales / costs associated with selling the businesses | 19 | — | — | (2 | ) | — | — | ||||||||||||||||
Earnings (loss) from discontinued operations | $ | (332 | ) | $ | (579 | ) | $ | (187 | ) | $ | 69 | $ | 116 | $ | 150 |
2019 | Costs Incurred to Date(1) | ||||||
Meals & Beverages | $ | 34 | $ | 212 | |||
Snacks | 40 | 200 | |||||
Corporate | 47 | 160 | |||||
Total | $ | 121 | $ | 572 |
(1) | Includes $25 of pre-tax costs associated with the Snacks segment recognized in 2018 related to the Snyder's-Lance cost transformation program and integration. |
2019 | 2018 | 2017 | |||||||||
Other expenses / (income) | |||||||||||
Amortization of intangible assets | $ | 48 | $ | 20 | $ | 1 | |||||
Impairment of intangible assets(1) | 16 | 54 | — | ||||||||
Net periodic benefit expense (income) other than the service cost | 71 | (225 | ) | (224 | ) | ||||||
Investment losses | 1 | 10 | 9 | ||||||||
Transaction costs(2) | — | 53 | — | ||||||||
Legal settlements | — | 22 | — | ||||||||
Other | 4 | (7 | ) | (2 | ) | ||||||
$ | 140 | $ | (73 | ) | $ | (216 | ) | ||||
Advertising and consumer promotion expense(3) | $ | 347 | $ | 327 | $ | 327 | |||||
Interest expense | |||||||||||
Interest expense | $ | 359 | $ | 186 | $ | 117 | |||||
Less: Interest capitalized | 3 | 3 | 2 | ||||||||
$ | 356 | $ | 183 | $ | 115 |
(1) | See Note 6 for additional information. |
(2) | In 2018, we recognized transaction costs of $53 related to the acquisition of Snyder's-Lance. See Note 4 for additional information. |
(3) | Included in Marketing and selling expenses. |
2019 | 2018 | 2017 | |||||||||
Total pre-tax stock-based compensation expense | $ | 50 | $ | 55 | $ | 53 | |||||
Tax-related benefits | $ | 8 | $ | 9 | $ | 20 |
2019 | 2018 | 2017 | |||||||||
Total pre-tax stock-based compensation expense | $ | 8 | $ | 6 | $ | 7 | |||||
Tax-related benefits | $ | 2 | $ | 2 | $ | 2 |
Balance at Beginning of Period | Charged to/ (Reduction in) Costs and Expenses | Deductions | Acquisitions | Balance at End of Period | |||||||||||||||
Fiscal year ended July 28, 2019 | |||||||||||||||||||
Cash discount | $ | 6 | $ | 132 | $ | (132 | ) | $ | — | $ | 6 | ||||||||
Bad debt reserve | 3 | 1 | (1 | ) | — | 3 | |||||||||||||
Returns reserve(1) | 9 | (2 | ) | (3 | ) | — | 4 | ||||||||||||
Total Accounts receivable allowances | $ | 18 | $ | 131 | $ | (136 | ) | $ | — | $ | 13 | ||||||||
Fiscal year ended July 29, 2018 | |||||||||||||||||||
Cash discount | $ | 4 | $ | 114 | $ | (114 | ) | $ | 2 | $ | 6 | ||||||||
Bad debt reserve | 1 | 1 | (1 | ) | 2 | 3 | |||||||||||||
Returns reserve(1) | 3 | 4 | — | 2 | 9 | ||||||||||||||
Total Accounts receivable allowances | $ | 8 | $ | 119 | $ | (115 | ) | $ | 6 | $ | 18 | ||||||||
Fiscal year ended July 30, 2017 | |||||||||||||||||||
Cash discount | $ | 4 | $ | 109 | $ | (109 | ) | $ | — | $ | 4 | ||||||||
Bad debt reserve | 1 | — | — | — | 1 | ||||||||||||||
Returns reserve(1) | 4 | (1 | ) | — | — | 3 | |||||||||||||
Total Accounts receivable allowances | $ | 9 | $ | 108 | $ | (109 | ) | $ | — | $ | 8 |
(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 $107 in 2019, $104 in 2018, and $102 in 2017, or less than 2% of net sales. |
2019 | 2018 | ||||||
Accounts receivable | |||||||
Customer accounts receivable | $ | 538 | $ | 528 | |||
Allowances | (13 | ) | (18 | ) | |||
Subtotal | $ | 525 | $ | 510 | |||
Other | 49 | 53 | |||||
$ | 574 | $ | 563 | ||||
Inventories | |||||||
Raw materials, containers and supplies | $ | 271 | $ | 312 | |||
Finished products | 592 | 575 | |||||
$ | 863 | $ | 887 | ||||
Plant assets | |||||||
Land | $ | 83 | $ | 82 | |||
Buildings | 1,474 | 1,439 | |||||
Machinery and equipment | 3,473 | 3,554 | |||||
Projects in progress | 185 | 164 | |||||
Total cost | $ | 5,215 | $ | 5,239 | |||
Accumulated depreciation(1) | (2,760 | ) | (2,773 | ) | |||
$ | 2,455 | $ | 2,466 | ||||
Other assets | |||||||
Investments | $ | 77 | $ | 92 | |||
Deferred taxes | 2 | 2 | |||||
Pensions | 21 | 61 | |||||
Other | 27 | 34 | |||||
$ | 127 | $ | 189 |
2019 | 2018 | ||||||
Accrued liabilities | |||||||
Accrued compensation and benefits | $ | 234 | $ | 162 | |||
Fair value of derivatives | 8 | 3 | |||||
Accrued trade and consumer promotion programs | 135 | 130 | |||||
Accrued interest | 97 | 102 | |||||
Restructuring | 29 | 19 | |||||
Other | 106 | 100 | |||||
$ | 609 | $ | 516 | ||||
Other liabilities | |||||||
Pension benefits | $ | 179 | $ | 141 | |||
Deferred compensation | 79 | 90 | |||||
Postretirement benefits | 210 | 206 | |||||
Transition tax on unremitted foreign earnings | — | 7 | |||||
Unrecognized tax benefits | 19 | 22 | |||||
Restructuring | 8 | 24 | |||||
Other | 64 | 57 | |||||
$ | 559 | $ | 547 |
(1) | Depreciation expense was $389 in 2019, $360 in 2018 and $299 in 2017. Depreciation expense of continuing operations was $315 in 2019, $259 in 2018 and $192 in 2017. 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. |
2019 | 2018 | 2017 | |||||||||
Other expenses / (income) | |||||||||||
Amortization of intangible assets | $ | 48 | $ | 20 | $ | 1 | |||||
Impairment of intangible assets(1) | 16 | 54 | — | ||||||||
Net periodic benefit expense (income) other than the service cost | 71 | (225 | ) | (224 | ) | ||||||
Investment losses | 1 | 10 | 9 | ||||||||
Transaction costs(2) | — | 53 | — | ||||||||
Legal settlements | — | 22 | — | ||||||||
Other | 4 | (7 | ) | (2 | ) | ||||||
$ | 140 | $ | (73 | ) | $ | (216 | ) | ||||
Advertising and consumer promotion expense(3) | $ | 347 | $ | 327 | $ | 327 | |||||
Interest expense | |||||||||||
Interest expense | $ | 359 | $ | 186 | $ | 117 | |||||
Less: Interest capitalized | 3 | 3 | 2 | ||||||||
$ | 356 | $ | 183 | $ | 115 |
(1) | See Note 6 for additional information. |
(2) | In 2018, we recognized transaction costs of $53 related to the acquisition of Snyder's-Lance. See Note 4 for additional information. |
(3) | Included in Marketing and selling expenses. |
2019 | 2018 | 2017 | |||||||||
Cash Flows from Operating Activities | |||||||||||
Other | |||||||||||
Benefit related payments | $ | (60 | ) | $ | (59 | ) | $ | (58 | ) | ||
Other | (4 | ) | 5 | 3 | |||||||
$ | (64 | ) | $ | (54 | ) | $ | (55 | ) | |||
Other Cash Flow Information | |||||||||||
Interest paid | $ | 367 | $ | 152 | $ | 110 | |||||
Interest received | $ | 3 | $ | 4 | $ | 5 | |||||
Income taxes paid | $ | 117 | $ | 128 | $ | 320 | |||||
Non-cash Activity | |||||||||||
Build-to-suit lease commitment | $ | 20 | $ | — | $ | — |
2018 | 2017 | |||||||
Net sales | $ | 8,152 | $ | 8,271 | ||||
Earnings from continuing operations attributable to Campbell Soup Company | $ | 834 | $ | 810 | ||||
Earnings from continuing operations per share attributable to Campbell Soup Company - basic | $ | 2.77 | $ | 2.66 | ||||
Earnings from continuing operations per share attributable to Campbell Soup Company - assuming dilution | $ | 2.76 | $ | 2.64 |
Snyder's-Lance | Pacific Foods | |||||||
Cash | $ | 21 | $ | 7 | ||||
Accounts receivable | 220 | 16 | ||||||
Inventories | 219 | 48 | ||||||
Other current assets | 32 | 1 | ||||||
Plant assets | 696 | 78 | ||||||
Goodwill | 3,006 | 202 | ||||||
Other intangible assets | 2,761 | 366 | ||||||
Other assets | 65 | — | ||||||
Short-term debt | (1 | ) | — | |||||
Accounts payable | (124 | ) | (24 | ) | ||||
Accrued liabilities | (115 | ) | (6 | ) | ||||
Deferred income taxes | (597 | ) | — | |||||
Other liabilities | (24 | ) | — | |||||
Noncontrolling interest | (47 | ) | — | |||||
Total assets acquired and liabilities assumed | $ | 6,112 | $ | 688 |
Type | Life in Years | Value | ||||||||
Trademarks | Non-amortizable | Indefinite | $ | 1,997 | ||||||
Customer relationships | Amortizable | 15 | to | 22 | 756 | |||||
Other | Amortizable | 1.5 | 8 | |||||||
Total identifiable intangible assets | $ | 2,761 |
• | amortization of the acquisition date fair value adjustment to inventories of $42 that was recorded in Cost of products sold; |
• | $13 of Restructuring charges; |
• | $12 of Administrative expenses; and |
• | $18 gain in Interest expense on treasury rate lock contracts used to hedge the planned financing of the acquisition. |
2018 | 2017 | |||||||
Net sales | $ | 8,152 | $ | 8,271 | ||||
Earnings from continuing operations attributable to Campbell Soup Company | $ | 834 | $ | 810 | ||||
Earnings from continuing operations per share attributable to Campbell Soup Company - basic | $ | 2.77 | $ | 2.66 | ||||
Earnings from continuing operations per share attributable to Campbell Soup Company - assuming dilution | $ | 2.76 | $ | 2.64 |
2020 | 2021 | 2022 | 2023 | 2024 | Thereafter |
$68 | $54 | $40 | $29 | $21 | $88 |
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 31, 2016 | $ | (124 | ) | $ | (41 | ) | $ | 61 | $ | (104 | ) | |||||
Other comprehensive income (loss) before reclassifications | 40 | 12 | 8 | 60 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 7 | (16 | ) | (9 | ) | ||||||||||
Net current-period other comprehensive income (loss) | 40 | 19 | (8 | ) | 51 | |||||||||||
Balance at July 30, 2017 | $ | (84 | ) | $ | (22 | ) | $ | 53 | $ | (53 | ) | |||||
Other comprehensive income (loss) before reclassifications | (70 | ) | 16 | 7 | (47 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 2 | (20 | ) | (18 | ) | ||||||||||
Net current-period other comprehensive income (loss) | (70 | ) | 18 | (13 | ) | (65 | ) | |||||||||
Balance at July 29, 2018 | $ | (154 | ) | $ | (4 | ) | $ | 40 | $ | (118 | ) | |||||
Cumulative effect of a change in accounting principle(4) | 2 | (3 | ) | 10 | 9 | |||||||||||
Other comprehensive income (loss) before reclassifications | (68 | ) | (2 | ) | — | (70 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss)(5) | 2 | — | (21 | ) | (19 | ) | ||||||||||
Net current-period other comprehensive income (loss) | (66 | ) | (2 | ) | (21 | ) | (89 | ) | ||||||||
Balance at July 28, 2019 | $ | (218 | ) | $ | (9 | ) | $ | 29 | $ | (198 | ) |
(1) | Included a tax expense of $4 as of July 28, 2019, and $6 as of July 29, 2018, July 30, 2017, and July 31, 2016. |
(2) | Included a tax benefit of $2 as of July 28, 2019, $4 as of July 29, 2018, $12 as of July 30, 2017, and $23 as of July 31, 2016. |
(3) | Included a tax expense of $8 as of July 28, 2019, $25 as of July 29, 2018, $30 as of July 30, 2017, and $35 as of July 31, 2016. |
(4) | Reflects the adoption of the FASB guidance on stranded tax effects. See Note 2 for additional information. |
(5) | Reflects the reclassification from sale of businesses. See Note 3 for additional information. |
Details about Accumulated Other Comprehensive Income (Loss) Components | 2019 | 2018 | 2017 | Location of (Gain) Loss Recognized in Earnings | ||||||||||
(Gains) losses on cash flow hedges: | ||||||||||||||
Foreign exchange forward contracts | $ | (4 | ) | $ | 5 | $ | 3 | Cost of products sold | ||||||
Foreign exchange forward contracts | — | — | 1 | Other expenses / (income) | ||||||||||
Foreign exchange forward contracts | 2 | (4 | ) | 3 | Loss from discontinued operations | |||||||||
Forward starting interest rate swaps | 2 | 2 | 4 | Interest expense | ||||||||||
Total before tax | — | 3 | 11 | |||||||||||
Tax expense (benefit) | — | (1 | ) | (4 | ) | |||||||||
(Gain) loss, net of tax | $ | — | $ | 2 | $ | 7 | ||||||||
Pension and postretirement benefit adjustments: | ||||||||||||||
Prior service credit | $ | (28 | ) | $ | (27 | ) | $ | (25 | ) | Other expenses / (income) | ||||
Tax expense (benefit) | 7 | 7 | 9 | |||||||||||
(Gain) loss, net of tax | $ | (21 | ) | $ | (20 | ) | $ | (16 | ) |
2019 | 2018 | ||||||
Commercial paper | $ | 853 | $ | 1,140 | |||
Notes | 500 | 300 | |||||
Current portion of Canadian credit facility | — | 90 | |||||
Capital leases | 1 | — | |||||
Build-to-suit lease commitment | 20 | — | |||||
Other(1) | (3 | ) | (5 | ) | |||
Total short-term borrowings | $ | 1,371 | $ | 1,525 |
(1) | Includes unamortized net discount/premium on debt issuances and debt issuance costs. |
Type | Fiscal Year of Maturity | Rate | 2019 | 2018 | ||||||||
Canadian credit facility | 2019 | Variable | $ | — | $ | 90 | ||||||
Notes | 2019 | 4.50% | — | 300 | ||||||||
Notes | 2020 | Variable | 500 | 500 | ||||||||
Notes | 2021 | Variable | 400 | 400 | ||||||||
Senior Term Loan | 2021 | Variable | 499 | 900 | ||||||||
Notes | 2021 | 3.30% | 650 | 650 | ||||||||
Notes | 2021 | 4.25% | 500 | 500 | ||||||||
Debentures | 2021 | 8.88% | 200 | 200 | ||||||||
Notes | 2023 | 2.50% | 450 | 450 | ||||||||
Notes | 2023 | 3.65% | 1,200 | 1,200 | ||||||||
Notes | 2025 | 3.95% | 850 | 850 | ||||||||
Notes | 2025 | 3.30% | 300 | 300 | ||||||||
Notes | 2028 | 4.15% | 1,000 | 1,000 | ||||||||
Notes | 2043 | 3.80% | 400 | 400 | ||||||||
Notes | 2048 | 4.80% | 700 | 700 | ||||||||
Capital leases | 3 | — | ||||||||||
Other(1) | (49 | ) | (59 | ) | ||||||||
Total | $ | 7,603 | $ | 8,381 | ||||||||
Less current portion | 500 | 390 | ||||||||||
Total long-term debt | $ | 7,103 | $ | 7,991 |
(1) | Includes unamortized net discount/premium on debt issuances and debt issuance costs. |
Balance Sheet Classification | 2019 | 2018 | |||||||
Asset Derivatives | |||||||||
Derivatives designated as hedges: | |||||||||
Foreign exchange forward contracts | Current assets of discontinued operations | $ | — | $ | 1 | ||||
Total derivatives designated as hedges | $ | — | $ | 1 | |||||
Derivatives not designated as hedges: | |||||||||
Commodity derivative contracts | Other current assets | $ | 3 | $ | 5 | ||||
Deferred compensation derivative contracts | Other current assets | 1 | 1 | ||||||
Foreign exchange forward contracts | Other current assets | 1 | 3 | ||||||
Total derivatives not designated as hedges | $ | 5 | $ | 9 | |||||
Total asset derivatives | $ | 5 | $ | 10 |
Balance Sheet Classification | 2019 | 2018 | |||||||
Liability Derivatives | |||||||||
Derivatives designated as hedges: | |||||||||
Foreign exchange forward contracts | Current liabilities of discontinued operations | $ | 2 | $ | 2 | ||||
Total derivatives designated as hedges | $ | 2 | $ | 2 | |||||
Derivatives not designated as hedges: | |||||||||
Commodity derivative contracts | Accrued liabilities | $ | 6 | $ | 3 | ||||
Foreign exchange forward contracts | Accrued liabilities | 2 | — | ||||||
Commodity derivative contracts | Other liabilities | — | 1 | ||||||
Total derivatives not designated as hedges | $ | 8 | $ | 4 | |||||
Total liability derivatives | $ | 10 | $ | 6 |
2019 | 2018 | |||||||||||||||||||||||
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 | $ | 5 | $ | (2 | ) | $ | 3 | $ | 10 | $ | (3 | ) | $ | 7 | ||||||||||
Total liability derivatives | $ | 10 | $ | (2 | ) | $ | 8 | $ | 6 | $ | (3 | ) | $ | 3 |
Total Cash-Flow Hedge OCI Activity | |||||||||||||
Derivatives Designated as Cash-Flow Hedges | 2019 | 2018 | 2017 | ||||||||||
OCI derivative gain (loss) at beginning of year | $ | (8 | ) | $ | (34 | ) | $ | (64 | ) | ||||
Effective portion of changes in fair value recognized in OCI: | |||||||||||||
Foreign exchange forward contracts | (3 | ) | 8 | (4 | ) | ||||||||
Forward starting interest rate swaps | — | 15 | 23 | ||||||||||
Amount of (gain) loss reclassified from OCI to earnings: | Location in Earnings | ||||||||||||
Foreign exchange forward contracts | Cost of products sold | (4 | ) | 5 | 3 | ||||||||
Foreign exchange forward contracts | Other expenses / (income) | — | — | 1 | |||||||||
Foreign exchange forward contracts | Loss from discontinued operations | 2 | (4 | ) | 3 | ||||||||
Forward starting interest rate swaps | Interest expense | 2 | 2 | 4 | |||||||||
OCI derivative gain (loss) at end of year | $ | (11 | ) | $ | (8 | ) | $ | (34 | ) |
Amount of (Gain) Loss Recognized in Earnings on Derivatives | ||||||||||||||
Derivatives not Designated as Hedges | Location of (Gain) Loss Recognized in Earnings | 2019 | 2018 | 2017 | ||||||||||
Foreign exchange forward contracts | Cost of products sold | $ | — | $ | (1 | ) | $ | 1 | ||||||
Foreign exchange forward contracts | Other expenses / (income) | — | (1 | ) | 14 | |||||||||
Foreign exchange forward contracts | Loss from discontinued operations | — | — | (1 | ) | |||||||||
Commodity derivative contracts | Cost of products sold | 6 | (2 | ) | (11 | ) | ||||||||
Commodity derivative contracts | Loss from discontinued operations | (1 | ) | — | — | |||||||||
Deferred compensation derivative contracts | Administrative expenses | (2 | ) | (2 | ) | (3 | ) | |||||||
Treasury rate lock contracts | Interest expense | — | (18 | ) | — | |||||||||
Total | $ | 3 | $ | (24 | ) | $ | — |
2019 | 2018 | 2017 | |||||||||
Total pre-tax stock-based compensation expense | $ | 50 | $ | 55 | $ | 53 | |||||
Tax-related benefits | $ | 8 | $ | 9 | $ | 20 |
2019 | 2018 | 2017 | |||||||||
Total pre-tax stock-based compensation expense | $ | 8 | $ | 6 | $ | 7 | |||||
Tax-related benefits | $ | 2 | $ | 2 | $ | 2 |
Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||
(Options in thousands) | (In years) | |||||||||||
Exercisable at July 29, 2018 | 1,537 | $ | 50.36 | |||||||||
Granted | 596 | $ | 35.74 | |||||||||
Exercised | — | $ | — | |||||||||
Terminated | (74 | ) | $ | 49.05 | ||||||||
Outstanding at July 28, 2019 | 2,059 | $ | 46.17 | 7.3 | $ | 3 | ||||||
Exercisable at July 28, 2019 | 1,035 | $ | 50.88 | 5.9 | $ | — |
2019 | 2018 | 2017 | |||
Risk-free interest rate | 2.79% | 2.06% | 1.28% | ||
Expected dividend yield | 3.84% | 2.95% | 2.26% | ||
Expected volatility | 25.28% | 19.60% | 18.64% | ||
Expected term | 6.1 years | 6 years | 6 years | ||
Grant-date fair value | $6.27 | $6.67 | $7.51 |
Units | Weighted- Average Grant-Date Fair Value | |||||
(Restricted stock units in thousands) | ||||||
Nonvested at July 29, 2018 | 1,652 | $ | 47.01 | |||
Granted | 1,340 | $ | 36.51 | |||
Vested | (711 | ) | $ | 47.83 | ||
Forfeited | (321 | ) | $ | 40.67 | ||
Nonvested at July 28, 2019 | 1,960 | $ | 40.57 |
Units | Weighted- Average Grant-Date Fair Value | |||||
(Restricted stock units in thousands) | ||||||
Nonvested at July 29, 2018 | 1,664 | $ | 46.66 | |||
Granted | 388 | $ | 31.29 | |||
Vested | — | $ | — | |||
Forfeited | (744 | ) | $ | 55.07 | ||
Nonvested at July 28, 2019 | 1,308 | $ | 37.33 |
2019 | 2018 | 2017 | |||
Risk-free interest rate | 2.80% | 1.58% | 0.85% | ||
Expected dividend yield | 3.79% | 2.95% | 2.26% | ||
Expected volatility | 24.50% | 19.07% | 17.78% | ||
Expected term | 3 years | 3 years | 3 years |
Campbell Fresh | Campbell International | ||||||||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||||||||
Net sales | $ | 756 | $ | 950 | $ | 947 | $ | 1,046 | $ | 1,120 | $ | 1,106 | |||||||||||
Impairment charges | $ | 360 | $ | 694 | $ | 212 | $ | 17 | $ | — | $ | — | |||||||||||
Earnings (loss) before taxes from operations | $ | (359 | ) | $ | (721 | ) | $ | (221 | ) | $ | 120 | $ | 163 | $ | 198 | ||||||||
Taxes on earnings (loss) from operations | (78 | ) | (142 | ) | (34 | ) | 41 | 47 | 48 | ||||||||||||||
Loss on sales of businesses / costs associated with selling the businesses | (32 | ) | — | — | (12 | ) | — | — | |||||||||||||||
Tax expense (benefit) of loss on sales / costs associated with selling the businesses | 19 | — | — | (2 | ) | — | — | ||||||||||||||||
Earnings (loss) from discontinued operations | $ | (332 | ) | $ | (579 | ) | $ | (187 | ) | $ | 69 | $ | 116 | $ | 150 |
Campbell International | Campbell Fresh | Campbell International | Total | |||||||||||||
July 28, 2019 | July 29, 2018 | July 29, 2018 | July 29, 2018 | |||||||||||||
Cash and cash equivalents | $ | 148 | $ | 8 | $ | 169 | $ | 177 | ||||||||
Accounts receivable, net | 135 | 84 | 138 | 222 | ||||||||||||
Inventories | 135 | 161 | 151 | 312 | ||||||||||||
Other current assets | 10 | 3 | 12 | 15 | ||||||||||||
Current assets | $ | 428 | $ | 256 | $ | 470 | $ | 726 | ||||||||
Plant assets, net of depreciation | $ | 340 | $ | 413 | $ | 354 | $ | 767 | ||||||||
Goodwill | 661 | — | 716 | 716 | ||||||||||||
Other intangible assets, net of amortization | 135 | 381 | 151 | 532 | ||||||||||||
Other assets | 31 | 4 | 31 | 35 | ||||||||||||
Total assets | $ | 1,595 | $ | 1,054 | $ | 1,722 | $ | 2,776 | ||||||||
Short-term borrowings | $ | 232 | $ | — | $ | 371 | $ | 371 | ||||||||
Payable to suppliers and others | 109 | 79 | 109 | 188 | ||||||||||||
Accrued liabilities | 114 | 39 | 121 | 160 | ||||||||||||
Accrued income taxes | 14 | — | 12 | 12 | ||||||||||||
Current liabilities | $ | 469 | $ | 118 | $ | 613 | $ | 731 | ||||||||
Long-term debt | $ | 6 | $ | — | $ | 7 | $ | 7 | ||||||||
Deferred taxes | 32 | (1 | ) | 36 | 35 | |||||||||||
Other liabilities | 27 | 5 | 17 | 22 | ||||||||||||
Total liabilities | $ | 534 | $ | 122 | $ | 673 | $ | 795 |
2019 | 2018 | 2017 | |||||||||
Cash flows from discontinued operating activities: | |||||||||||
Impairment charges | $ | 377 | $ | 694 | $ | 212 | |||||
Depreciation and amortization | 83 | 115 | 125 | ||||||||
Losses on sales of discontinued operations businesses | 32 | — | — | ||||||||
Cash flows from discontinued investing activities: | |||||||||||
Capital expenditures | $ | 59 | $ | 88 | $ | 99 | |||||
Sales of discontinued operations businesses, net of cash divested | 539 | — | — |
Impairment Charges | Fair Value | |||||||||||||||||||||||||||||||
Plant Assets | Amortizable Intangibles | Trademark | Goodwill | Plant Assets | Amortizable Intangibles | Trademark | Goodwill | |||||||||||||||||||||||||
Continuing Operations | ||||||||||||||||||||||||||||||||
July 29, 2018 | ||||||||||||||||||||||||||||||||
Plum | $ | 54 | $ | 61 | ||||||||||||||||||||||||||||
Discontinued Operations | ||||||||||||||||||||||||||||||||
January 27, 2019 | ||||||||||||||||||||||||||||||||
Bolthouse Farms carrot and carrot ingredients | $ | 104 | $ | 55 | $ | 18 | $ | 102 | $ | 25 | $ | 30 | ||||||||||||||||||||
Bolthouse Farms refrigerated beverages and salad dressings | $ | 9 | $ | 22 | $ | 74 | $ | 100 | $ | 12 | $ | 76 | ||||||||||||||||||||
Garden Fresh Gourmet | $ | 2 | $ | 39 | $ | 23 | $ | 25 | $ | — | $ | — | ||||||||||||||||||||
October 28, 2018 | ||||||||||||||||||||||||||||||||
Refrigerated soup | $ | 14 | $ | 38 | ||||||||||||||||||||||||||||
April 29, 2018 | ||||||||||||||||||||||||||||||||
Deli | $ | 11 | $ | 13 | $ | 81 | $ | 53 | $ | 23 | $ | — | ||||||||||||||||||||
Bolthouse Farms refrigerated beverages and salad dressings | $ | 130 | $ | 384 | $ | 150 | $ | — | ||||||||||||||||||||||||
January 28, 2018 | ||||||||||||||||||||||||||||||||
Bolthouse Farms carrot and carrot ingredients | $ | 75 | $ | — | ||||||||||||||||||||||||||||
January 29, 2017 | ||||||||||||||||||||||||||||||||
Bolthouse Farms carrot and carrot ingredients | $ | 20 | $ | 127 | $ | 48 | $ | 75 | ||||||||||||||||||||||||
Garden Fresh Gourmet | $ | 1 | $ | 64 | $ | 37 | $ | 52 |
2019 | 2018 | |||||||
Fair value at beginning of year | $ | 77 | $ | 49 | ||||
Gains (losses) | (1 | ) | 9 | |||||
Purchases | — | 19 | ||||||
Fair value at end of year | $ | 76 | $ | 77 |
• | 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 July 28, 2019 | Fair Value Measurements at July 28, 2019 Using Fair Value Hierarchy | Fair Value as of July 29, 2018 | Fair Value Measurements at July 29, 2018 Using Fair Value Hierarchy | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Foreign exchange forward contracts(1) | $ | 1 | $ | — | $ | 1 | $ | — | $ | 4 | $ | — | $ | 4 | $ | — | |||||||||||||||
Commodity derivative contracts(2) | 3 | 2 | 1 | — | 5 | 5 | — | — | |||||||||||||||||||||||
Deferred compensation derivative contracts(3) | 1 | — | 1 | — | 1 | — | 1 | — | |||||||||||||||||||||||
Deferred compensation investments(4) | 4 | 4 | — | — | 6 | 6 | — | — | |||||||||||||||||||||||
Fair value option investments(5) | 76 | — | — | 76 | 77 | — | — | 77 | |||||||||||||||||||||||
Total assets at fair value | $ | 85 | $ | 6 | $ | 3 | $ | 76 | $ | 93 | $ | 11 | $ | 5 | $ | 77 |
Fair Value as of July 28, 2019 | Fair Value Measurements at July 28, 2019 Using Fair Value Hierarchy | Fair Value as of July 29, 2018 | Fair Value Measurements at July 29, 2018 Using Fair Value Hierarchy | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Foreign exchange forward contracts(1) | $ | 4 | $ | — | $ | 4 | $ | — | $ | 2 | $ | — | $ | 2 | $ | — | |||||||||||||||
Commodity derivative contracts(2) | 6 | 3 | 3 | — | 4 | 3 | 1 | — | |||||||||||||||||||||||
Deferred compensation obligation(4) | 95 | 95 | — | — | 108 | 108 | — | — | |||||||||||||||||||||||
Total liabilities at fair value | $ | 105 | $ | 98 | $ | 7 | $ | — | $ | 114 | $ | 111 | $ | 3 | $ | — |
(1) | Based on observable market transactions of spot currency rates and forward rates. |
(2) | Based on quoted futures exchanges and on observable prices of futures and options transactions in the marketplace. |
(3) | Based on LIBOR and equity index swap rates. |
(4) | Based on the fair value of the participants’ investments. |
(5) | Primarily represents investments in equity securities that are not readily marketable and are accounted for under the fair value option. The investments were funded by Acre. See Note 15 for additional information. Fair value is based on analyzing recent transactions and transactions of comparable companies, and the discounted cash flow method. In addition, allocation methods, including the option pricing method, are used in distributing fair value among various equity holders according to rights and preferences. |
2019 | 2018 | |||||||
Fair value at beginning of year | $ | 77 | $ | 49 | ||||
Gains (losses) | (1 | ) | 9 | |||||
Purchases | — | 19 | ||||||
Fair value at end of year | $ | 76 | $ | 77 |
Impairment Charges | Fair Value | |||||||||||||||||||||||||||||||
Plant Assets | Amortizable Intangibles | Trademark | Goodwill | Plant Assets | Amortizable Intangibles | Trademark | Goodwill | |||||||||||||||||||||||||
Continuing Operations | ||||||||||||||||||||||||||||||||
July 29, 2018 | ||||||||||||||||||||||||||||||||
Plum | $ | 54 | $ | 61 | ||||||||||||||||||||||||||||
Discontinued Operations | ||||||||||||||||||||||||||||||||
January 27, 2019 | ||||||||||||||||||||||||||||||||
Bolthouse Farms carrot and carrot ingredients | $ | 104 | $ | 55 | $ | 18 | $ | 102 | $ | 25 | $ | 30 | ||||||||||||||||||||
Bolthouse Farms refrigerated beverages and salad dressings | $ | 9 | $ | 22 | $ | 74 | $ | 100 | $ | 12 | $ | 76 | ||||||||||||||||||||
Garden Fresh Gourmet | $ | 2 | $ | 39 | $ | 23 | $ | 25 | $ | — | $ | — | ||||||||||||||||||||
October 28, 2018 | ||||||||||||||||||||||||||||||||
Refrigerated soup | $ | 14 | $ | 38 | ||||||||||||||||||||||||||||
April 29, 2018 | ||||||||||||||||||||||||||||||||
Deli | $ | 11 | $ | 13 | $ | 81 | $ | 53 | $ | 23 | $ | — | ||||||||||||||||||||
Bolthouse Farms refrigerated beverages and salad dressings | $ | 130 | $ | 384 | $ | 150 | $ | — | ||||||||||||||||||||||||
January 28, 2018 | ||||||||||||||||||||||||||||||||
Bolthouse Farms carrot and carrot ingredients | $ | 75 | $ | — | ||||||||||||||||||||||||||||
January 29, 2017 | ||||||||||||||||||||||||||||||||
Bolthouse Farms carrot and carrot ingredients | $ | 20 | $ | 127 | $ | 48 | $ | 75 | ||||||||||||||||||||||||
Garden Fresh Gourmet | $ | 1 | $ | 64 | $ | 37 | $ | 52 |
2019 | 2018 | ||||||||||||||
Fair Value | Fair Value | Redemption Frequency | Redemption Notice Period Range | ||||||||||||
Short-term investments | $ | 23 | $ | 21 | Daily | 1 Day | |||||||||
Commingled funds: | |||||||||||||||
Equities | 319 | 310 | Daily, | Monthly | 2 | to | 60 Days | ||||||||
Fixed income | 35 | 31 | Daily | 1 Day | |||||||||||
Blended | 84 | 85 | Primarily Daily | 1 | to | 20 Days | |||||||||
Real estate funds | 107 | 89 | Quarterly | 45 | to | 90 Days | |||||||||
Hedge funds | 76 | 95 | Monthly | 5 | to | 30 Days | |||||||||
Total | $ | 644 | $ | 631 |
• | 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. |
Type | Life in Years | Value | ||||||||
Trademarks | Non-amortizable | Indefinite | $ | 1,997 | ||||||
Customer relationships | Amortizable | 15 | to | 22 | 756 | |||||
Other | Amortizable | 1.5 | 8 | |||||||
Total identifiable intangible assets | $ | 2,761 |
Meals & Beverages | Snacks | Total | |||||||||
Net balance at July 30, 2017 | $ | 780 | $ | 31 | $ | 811 | |||||
Acquisitions | 202 | 2,866 | 3,068 | ||||||||
Foreign currency translation adjustment | (4 | ) | (11 | ) | (15 | ) | |||||
Net balance at July 29, 2018 | $ | 978 | $ | 2,886 | $ | 3,864 | |||||
Changes in preliminary purchase price allocation | — | 140 | 140 | ||||||||
Acquisition | — | 21 | 21 | ||||||||
Foreign currency translation adjustment | (1 | ) | (7 | ) | (8 | ) | |||||
Net balance at July 28, 2019 | $ | 977 | $ | 3,040 | $ | 4,017 |
2019 | 2018 | |||||||||||||||||||||||
Intangible Assets | Estimated Useful Lives | Cost | Accumulated Amortization | Net | Cost | Accumulated Amortization | Net | |||||||||||||||||
Amortizable intangible assets | ||||||||||||||||||||||||
Customer relationships | 10 | to | 22 | $ | 855 | $ | (70 | ) | $ | 785 | $ | 917 | $ | (26 | ) | $ | 891 | |||||||
Other | 1.5 | to | 20 | 14 | (13 | ) | 1 | 14 | (5 | ) | 9 | |||||||||||||
Total amortizable intangible assets | $ | 869 | $ | (83 | ) | $ | 786 | $ | 931 | $ | (31 | ) | $ | 900 | ||||||||||
Non-amortizable intangible assets | ||||||||||||||||||||||||
Trademarks | 2,629 | 2,764 | ||||||||||||||||||||||
Total net intangible assets | $ | 3,415 | $ | 3,664 |
2019 | 2018 | 2017 | |||||||||
Income taxes: | |||||||||||
Currently payable: | |||||||||||
Federal | $ | 104 | $ | 93 | $ | 241 | |||||
State | 19 | 26 | 39 | ||||||||
Non-U.S. | 5 | 11 | 2 | ||||||||
128 | 130 | 282 | |||||||||
Deferred: | |||||||||||
Federal | 19 | (26 | ) | 97 | |||||||
State | 7 | 14 | 2 | ||||||||
Non-U.S. | (3 | ) | (12 | ) | 11 | ||||||
23 | (24 | ) | 110 | ||||||||
$ | 151 | $ | 106 | $ | 392 |
2019 | 2018 | 2017 | ||||||||||
Earnings from continuing operations before income taxes: | ||||||||||||
United States | $ | 624 | $ | 832 | $ | 1,264 | ||||||
Non-U.S. | 1 | (2 | ) | 52 | ||||||||
$ | 625 | $ | 830 | $ | 1,316 |
2019 | 2018 | 2017 | ||||||
Federal statutory income tax rate | 21.0 | % | 21.0 | % | 35.0 | % | ||
State income taxes (net of federal tax benefit) | 2.2 | 3.0 | 2.1 | |||||
Tax effect of international items | — | (0.5 | ) | (0.4 | ) | |||
Federal manufacturing deduction | — | (1.4 | ) | (2.2 | ) | |||
Tax Reform - impact on U.S. deferred tax assets and liabilities(1) | — | (21.7 | ) | — | ||||
Tax Reform - transition tax(1) | 0.3 | 6.4 | — | |||||
Effect of higher U.S. federal statutory tax rate(1) | — | 5.3 | — | |||||
Foreign exchange losses(2) | — | — | (3.8 | ) | ||||
Divestiture impact on deferred taxes | 1.2 | — | — | |||||
Other | (0.5 | ) | 0.7 | (0.9 | ) | |||
Effective income tax rate | 24.2 | % | 12.8 | % | 29.8 | % |
(1) | The Tax Cuts and Jobs Act of 2017 (the Act) was enacted into law on December 22, 2017, and made significant changes to corporate taxation. Changes under the Act included: |
• | Reducing the federal corporate tax rate from 35% to 21% effective January 1, 2018. A blended rate applied for fiscal 2018 non-calendar year end companies for the fiscal periods that included the effective date of the rate change. The impact of this is shown as \"Effect of higher U.S. federal statutory tax rate;\" |
• | Repealing the exception for deductibility of performance-based compensation to covered employees, which impacted us beginning in 2019, along with expanding the number of covered employees; |
• | Transitioning to a territorial system for taxation on foreign earnings along with the imposition of a transition tax in 2018 on the deemed repatriation of unremitted foreign earnings; |
• | Immediate expensing of machinery and equipment placed into service after September 27, 2017; |
• | Eliminating the deduction for domestic manufacturing activities, which impacted us beginning in 2019; |
• | Changes to the taxation of multinational companies, including a new minimum tax on Global Intangible Low-Taxed Income, a new Base Erosion Anti-Abuse Tax, and a new U.S. corporate deduction for Foreign-Derived Intangible Income, all of which were effective for us beginning in 2019; and |
• | Limiting the deductibility of interest expense to 30% of adjusted taxable income, which was effective for us beginning in 2019. |
(2) | The 2017 rate was favorably impacted by a $52 benefit primarily related to the sale of intercompany notes receivable to a financial institution, which resulted in the recognition of foreign exchange losses. |
2019 | 2018 | ||||||
Depreciation | $ | 336 | $ | 342 | |||
Amortization | 877 | 868 | |||||
Other | 16 | 35 | |||||
Deferred tax liabilities | 1,229 | 1,245 | |||||
Benefits and compensation | 157 | 144 | |||||
Pension benefits | 46 | 24 | |||||
Tax loss carryforwards | 43 | 65 | |||||
Capital loss carryforwards | 287 | 88 | |||||
Outside basis difference | 116 | — | |||||
Other | 82 | 92 | |||||
Gross deferred tax assets | 731 | 413 | |||||
Deferred tax asset valuation allowance | (427 | ) | (133 | ) | |||
Deferred tax assets, net of valuation allowance | 304 | 280 | |||||
Net deferred tax liability | $ | 925 | $ | 965 |
2019 | 2018 | 2017 | |||||||||
Balance at beginning of year | $ | 32 | $ | 64 | $ | 63 | |||||
Increases related to prior-year tax positions | 1 | — | 4 | ||||||||
Decreases related to prior-year tax positions | (1 | ) | (37 | ) | — | ||||||
Increases related to current-year tax positions | 2 | 2 | 4 | ||||||||
Settlements | (9 | ) | (1 | ) | (7 | ) | |||||
Lapse of statute | (1 | ) | — | — | |||||||
Increase due to acquisitions | — | 4 | — | ||||||||
Balance at end of year | $ | 24 | $ | 32 | $ | 64 |
Increase / (decrease) in expense | 2017 | |||
Cost of products sold | $ | 134 | ||
Marketing and selling expenses | $ | 38 | ||
Administrative expenses | $ | 62 | ||
Research and development expenses | $ | 13 | ||
Other expenses / (income) | $ | (247 | ) |
Increase / (decrease) in expense | 2017 | |||
Cost of products sold | $ | 134 | ||
Marketing and selling expenses | $ | 38 | ||
Administrative expenses | $ | 62 | ||
Research and development expenses | $ | 13 | ||
Other expenses / (income) | $ | (247 | ) |
As Reported | Balances Without Adoption | Increase/(Decrease) Due to Adoption | ||||||||||
Accrued liabilities | $ | 609 | $ | 605 | $ | 4 | ||||||
Accrued income taxes | 15 | 16 | (1 | ) | ||||||||
Total current liabilities | 3,385 | 3,382 | 3 | |||||||||
Total liabilities | 12,036 | 12,033 | 3 | |||||||||
Campbell Soup Company shareholders' equity | ||||||||||||
Earnings retained in the business | $ | 1,993 | $ | 1,996 | $ | (3 | ) | |||||
Total Campbell Soup Company shareholders' equity | 1,103 | 1,106 | (3 | ) | ||||||||
Total equity | 1,112 | 1,115 | (3 | ) |
As Reported | Balances Without Adoption | Increase/(Decrease) Due to Adoption | ||||||||||
Net sales | $ | 8,107 | $ | 8,099 | $ | 8 | ||||||
Cost of products sold | $ | 5,414 | $ | 5,413 | $ | 1 | ||||||
Total costs and expenses | $ | 7,128 | $ | 7,127 | $ | 1 | ||||||
Earnings before interest and taxes | $ | 979 | $ | 972 | $ | 7 | ||||||
Earnings before taxes | $ | 625 | $ | 618 | $ | 7 | ||||||
Taxes on earnings | 151 | 149 | 2 | |||||||||
Earnings from continuing operations attributable to Campbell Soup Company | $ | 474 | $ | 469 | $ | 5 | ||||||
Per Share — Basic | ||||||||||||
Earnings from continuing operations attributable to Campbell Soup Company(1) | $ | 1.57 | $ | 1.56 | $ | .02 | ||||||
Per Share — Assuming Dilution | ||||||||||||
Earnings from continuing operations attributable to Campbell Soup Company | $ | 1.57 | $ | 1.55 | $ | .02 |
(1) | The sum of individual per share amounts may not add due to rounding. |
2019 | 2018 | |||||||||||||||||||||||
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 | $ | 5 | $ | (2 | ) | $ | 3 | $ | 10 | $ | (3 | ) | $ | 7 | ||||||||||
Total liability derivatives | $ | 10 | $ | (2 | ) | $ | 8 | $ | 6 | $ | (3 | ) | $ | 3 |
2019 | 2018 | |||||||||||||||||||||||
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 | $ | 5 | $ | (2 | ) | $ | 3 | $ | 10 | $ | (3 | ) | $ | 7 | ||||||||||
Total liability derivatives | $ | 10 | $ | (2 | ) | $ | 8 | $ | 6 | $ | (3 | ) | $ | 3 |
Pension | |||||||||||
2019 | 2018 | 2017 | |||||||||
Service cost | $ | 21 | $ | 24 | $ | 26 | |||||
Interest cost | 82 | 74 | 86 | ||||||||
Expected return on plan assets | (143 | ) | (144 | ) | (144 | ) | |||||
Amortization of prior service cost | 1 | — | — | ||||||||
Recognized net actuarial (gain) loss | 120 | (104 | ) | (198 | ) | ||||||
Special termination benefits | — | 2 | — | ||||||||
Curtailment gains | — | (2 | ) | — | |||||||
Settlement charge | 28 | — | — | ||||||||
Net periodic benefit expense (income) | $ | 109 | $ | (150 | ) | $ | (230 | ) |
Postretirement | |||||||||||
2019 | 2018 | 2017 | |||||||||
Service cost | $ | 1 | $ | 1 | $ | 1 | |||||
Interest cost | 8 | 7 | 10 | ||||||||
Amortization of prior service credit | (29 | ) | (27 | ) | (25 | ) | |||||
Recognized net actuarial (gain) loss | 14 | (16 | ) | (14 | ) | ||||||
Net periodic benefit expense (income) | $ | (6 | ) | $ | (35 | ) | $ | (28 | ) |
Pension | Postretirement | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Obligation at beginning of year | $ | 2,257 | $ | 2,450 | $ | 235 | $ | 276 | ||||||||
Service cost | 21 | 24 | 1 | 1 | ||||||||||||
Interest cost | 82 | 74 | 8 | 7 | ||||||||||||
Actuarial loss (gain) | 168 | (110 | ) | 14 | (16 | ) | ||||||||||
Participant contributions | — | — | — | 1 | ||||||||||||
Plan amendments | — | 2 | — | (11 | ) | |||||||||||
Benefits paid | (154 | ) | (165 | ) | (24 | ) | (26 | ) | ||||||||
Settlements | (20 | ) | — | — | — | |||||||||||
Medicare subsidies | — | — | 1 | 3 | ||||||||||||
Other | (1 | ) | (2 | ) | — | — | ||||||||||
Special termination benefits | — | 2 | — | — | ||||||||||||
Curtailment | — | (2 | ) | — | — | |||||||||||
Foreign currency adjustment | (8 | ) | (16 | ) | — | — | ||||||||||
Benefit obligation at end of year | $ | 2,345 | $ | 2,257 | $ | 235 | $ | 235 |
2019 | 2018 | |||||||
Fair value at beginning of year | $ | 2,154 | $ | 2,183 | ||||
Actual return on plan assets | 162 | 137 | ||||||
Employer contributions | 5 | 5 | ||||||
Benefits paid | (141 | ) | (155 | ) | ||||
Settlements | (20 | ) | — | |||||
Foreign currency adjustment | (7 | ) | (16 | ) | ||||
Fair value at end of year | $ | 2,153 | $ | 2,154 |
Pension | Postretirement | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Other assets | $ | 21 | $ | 61 | $ | — | $ | — | ||||||||
Accrued liabilities | 14 | 14 | 25 | 29 | ||||||||||||
Other liabilities | 179 | 141 | 210 | 206 | ||||||||||||
Noncurrent liabilities of discontinued operations | 20 | 9 | — | — | ||||||||||||
Net amounts recognized | $ | 192 | $ | 103 | $ | 235 | $ | 235 |
Amounts recognized in accumulated other comprehensive income (loss) consist of: | Pension | Postretirement | ||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Prior service (cost) credit | $ | (1 | ) | $ | (2 | ) | $ | 38 | $ | 67 |
2019 | 2018 | |||||||
Projected benefit obligation | $ | 1,771 | $ | 249 | ||||
Accumulated benefit obligation | $ | 1,749 | $ | 241 | ||||
Fair value of plan assets | $ | 1,558 | $ | 85 |
Pension | Postretirement | |||||||
2019 | 2018 | 2019 | 2018 | |||||
Discount rate | 3.46% | 4.15% | 3.28% | 4.06% | ||||
Rate of compensation increase | 3.20% | 3.21% | 3.25% | 3.25% |
Pension | ||||||
2019 | 2018 | 2017 | ||||
Discount rate | 4.15% | 3.74% | 3.39% | |||
Expected return on plan assets | 6.86% | 6.84% | 7.09% | |||
Rate of compensation increase | 3.21% | 3.24% | 3.25% |
2019 | 2018 | |||
Health care cost trend rate assumed for next year | 6.25% | 6.75% | ||
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 | 2023 | 2023 |
Strategic Target | 2019 | 2018 | |||
Equity securities | 39% | 42% | 42% | ||
Debt securities | 50% | 46% | 46% | ||
Real estate and other | 11% | 12% | 12% | ||
Total | 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 July 28, 2019 | Fair Value Measurements at July 28, 2019 Using Fair Value Hierarchy | Fair Value as of July 29, 2018 | Fair Value Measurements at July 29, 2018 Using Fair Value Hierarchy | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Short-term investments | $ | 78 | $ | 32 | $ | 46 | $ | — | $ | 61 | $ | 29 | $ | 32 | $ | — | |||||||||||||||
Equities: | |||||||||||||||||||||||||||||||
U.S. | 267 | 267 | — | — | 284 | 284 | — | — | |||||||||||||||||||||||
Non-U.S. | 217 | 217 | — | — | 230 | 230 | — | — | |||||||||||||||||||||||
Corporate bonds: | |||||||||||||||||||||||||||||||
U.S. | 635 | — | 635 | — | 597 | — | 597 | — | |||||||||||||||||||||||
Non-U.S. | 142 | — | 142 | — | 138 | — | 138 | — | |||||||||||||||||||||||
Government and agency bonds: | |||||||||||||||||||||||||||||||
U.S. | 73 | — | 73 | — | 70 | — | 70 | — | |||||||||||||||||||||||
Non-U.S. | 29 | — | 29 | — | 33 | — | 33 | — | |||||||||||||||||||||||
Municipal bonds | 64 | — | 64 | — | 61 | — | 61 | — | |||||||||||||||||||||||
Mortgage and asset backed securities | 36 | — | 36 | — | 15 | — | 15 | — | |||||||||||||||||||||||
Real estate | 9 | 5 | — | 4 | 10 | 4 | — | 6 | |||||||||||||||||||||||
Hedge funds | 32 | — | 32 | 34 | — | — | 34 | ||||||||||||||||||||||||
Derivative assets | 4 | — | 4 | — | 8 | — | 8 | — | |||||||||||||||||||||||
Derivative liabilities | (6 | ) | — | (6 | ) | — | (4 | ) | — | (4 | ) | — | |||||||||||||||||||
Total assets at fair value | $ | 1,580 | $ | 521 | $ | 1,023 | $ | 36 | $ | 1,537 | $ | 547 | $ | 950 | $ | 40 | |||||||||||||||
Investments measured at net asset value: | |||||||||||||||||||||||||||||||
Short-term investments | 23 | 21 | |||||||||||||||||||||||||||||
Commingled funds: | |||||||||||||||||||||||||||||||
Equities | 319 | 310 | |||||||||||||||||||||||||||||
Fixed income | 35 | 31 | |||||||||||||||||||||||||||||
Blended | 84 | 85 | |||||||||||||||||||||||||||||
Real estate | 107 | 89 | |||||||||||||||||||||||||||||
Hedge funds | 76 | 95 | |||||||||||||||||||||||||||||
Total investments measured at net asset value: | 644 | 631 | |||||||||||||||||||||||||||||
Other items to reconcile to fair value of plan assets | (71 | ) | (14 | ) | |||||||||||||||||||||||||||
Total pension plan assets at fair value | $ | 2,153 | $ | 2,154 |
Real Estate | Hedge Funds | Total | ||||||||||
Fair value at July 29, 2018 | $ | 6 | $ | 34 | $ | 40 | ||||||
Actual return on plan assets | 1 | — | 1 | |||||||||
Purchases | — | — | — | |||||||||
Sales | (3 | ) | (2 | ) | (5 | ) | ||||||
Settlements | — | — | — | |||||||||
Transfers out of Level 3 | — | — | — | |||||||||
Fair value at July 28, 2019 | $ | 4 | $ | 32 | $ | 36 |
Real Estate | Hedge Funds | Total | ||||||||||
Fair value at July 30, 2017 | $ | 7 | $ | 38 | $ | 45 | ||||||
Actual return on plan assets | 2 | 2 | 4 | |||||||||
Purchases | — | — | — | |||||||||
Sales | (3 | ) | (6 | ) | (9 | ) | ||||||
Settlements | — | — | — | |||||||||
Transfers out of Level 3 | — | — | — | |||||||||
Fair value at July 29, 2018 | $ | 6 | $ | 34 | $ | 40 |
2019 | 2018 | ||||||||||||||
Fair Value | Fair Value | Redemption Frequency | Redemption Notice Period Range | ||||||||||||
Short-term investments | $ | 23 | $ | 21 | Daily | 1 Day | |||||||||
Commingled funds: | |||||||||||||||
Equities | 319 | 310 | Daily, | Monthly | 2 | to | 60 Days | ||||||||
Fixed income | 35 | 31 | Daily | 1 Day | |||||||||||
Blended | 84 | 85 | Primarily Daily | 1 | to | 20 Days | |||||||||
Real estate funds | 107 | 89 | Quarterly | 45 | to | 90 Days | |||||||||
Hedge funds | 76 | 95 | Monthly | 5 | to | 30 Days | |||||||||
Total | $ | 644 | $ | 631 |
Pension | Postretirement | |||||||
2020 | $ | 172 | $ | 25 | ||||
2021 | $ | 170 | $ | 23 | ||||
2022 | $ | 164 | $ | 22 | ||||
2023 | $ | 158 | $ | 21 | ||||
2024 | $ | 153 | $ | 19 | ||||
2025-2029 | $ | 728 | $ | 78 |
2019 | |||||||||||||||
First | Second | Third | Fourth | ||||||||||||
Net sales | $ | 2,202 | $ | 2,172 | $ | 1,953 | $ | 1,780 | |||||||
Gross profit | 726 | 706 | 655 | 606 | |||||||||||
Earnings (loss) from continuing operations attributable to Campbell Soup Company | 180 | 176 | 123 | (5 | ) | ||||||||||
Earnings (loss) from discontinued operations | 14 | (235 | ) | (39 | ) | (3 | ) | ||||||||
Net earnings (loss) attributable to Campbell Soup Company | 194 | (59 | ) | 84 | (8 | ) | |||||||||
Per share - basic | |||||||||||||||
Earnings (loss) from continuing operations attributable to Campbell Soup Company | .60 | .58 | .41 | (.02 | ) | ||||||||||
Earnings (loss) from discontinued operations | .05 | (.78 | ) | (.13 | ) | (.01 | ) | ||||||||
Net earnings (loss) attributable to Campbell Soup Company (1) | .64 | (.20 | ) | .28 | (.03 | ) | |||||||||
Dividends | .35 | .35 | .35 | .35 | |||||||||||
Earnings per share - assuming dilution | |||||||||||||||
From continuing operations attributable to Campbell Soup Company | .60 | .58 | .41 | (.02 | ) | ||||||||||
From discontinued operations | .05 | (.78 | ) | (.13 | ) | (.01 | ) | ||||||||
Net attributable to Campbell Soup Company (1) | .64 | (.20 | ) | .28 | (.03 | ) |
(1) | The sum of individual per share amounts may not add due to rounding. |
2019 | |||||||||||||||
First | Second | Third | Fourth | ||||||||||||
In 2019, the following charges (gains) were recorded in Earnings (loss) from continuing operations attributable to Campbell Soup Company: | |||||||||||||||
Restructuring charges, implementation costs and other related costs | $ | 34 | $ | 18 | $ | 16 | $ | 24 | |||||||
Impairment charges | — | — | — | 13 | |||||||||||
Pension and postretirement benefit mark-to-market adjustments | — | — | — | 93 | |||||||||||
Pension settlement | — | — | 22 | — | |||||||||||
Tax reform | — | 2 | — | — | |||||||||||
Per share - assuming dilution | |||||||||||||||
Restructuring charges, implementation costs and other related costs | .11 | .06 | .05 | .08 | |||||||||||
Impairment charges | — | — | — | .04 | |||||||||||
Pension and postretirement benefit mark-to-market adjustments | — | — | — | .31 | |||||||||||
Pension settlement | — | — | .07 | — | |||||||||||
Tax reform | — | .01 | — | — | |||||||||||
In 2019, the following charges (gains) were recorded in Earnings (loss) from discontinued operations: | |||||||||||||||
Restructuring charges, implementation costs and other related costs | $ | 1 | $ | — | $ | (1 | ) | $ | — | ||||||
Impairment charges | 11 | 264 | — | 12 | |||||||||||
Costs associated with divestitures | — | 8 | 48 | 4 | |||||||||||
Pension benefit mark-to-market adjustments | — | — | — | 9 | |||||||||||
Per share - assuming dilution | |||||||||||||||
Restructuring charges, implementation costs and other related costs | — | — | — | — | |||||||||||
Impairment charges | .04 | .87 | — | .04 | |||||||||||
Costs associated with divestitures | — | .03 | .16 | .01 | |||||||||||
Pension benefit mark-to-market adjustments | — | — | — | .03 |
2018 | |||||||||||||||
First | Second | Third | Fourth | ||||||||||||
Net sales | $ | 1,638 | $ | 1,614 | $ | 1,618 | $ | 1,745 | |||||||
Gross profit | 656 | 637 | 533 | 548 | |||||||||||
Earnings from continuing operations attributable to Campbell Soup Company | 227 | 314 | 57 | 126 | |||||||||||
Earnings (loss) from discontinued operations | 48 | (29 | ) | (450 | ) | (32 | ) | ||||||||
Net earnings (loss) attributable to Campbell Soup Company | 275 | 285 | (393 | ) | 94 | ||||||||||
Per share - basic | |||||||||||||||
Earnings from continuing operations attributable to Campbell Soup Company | .75 | 1.04 | .19 | .42 | |||||||||||
Earnings (loss) from discontinued operations | .16 | (.10 | ) | (1.50 | ) | (.11 | ) | ||||||||
Net earnings (loss) attributable to Campbell Soup Company(1) | .91 | .95 | (1.31 | ) | .31 | ||||||||||
Dividends | .35 | .35 | .35 | .35 | |||||||||||
Per share - assuming dilution | |||||||||||||||
Earnings from continuing operations attributable to Campbell Soup Company | .75 | 1.04 | .19 | .42 | |||||||||||
Earnings (loss) from discontinued operations | .16 | (.10 | ) | (1.50 | ) | (.11 | ) | ||||||||
Net earnings (loss) attributable to Campbell Soup Company(1) | .91 | .95 | (1.31 | ) | .31 |
(1) | The sum of individual per share amounts may not add due to rounding. |
2018 | |||||||||||||||
First | Second | Third | Fourth | ||||||||||||
In 2018, the following charges (gains) were recorded in Earnings from continuing operations attributable to Campbell Soup Company: | |||||||||||||||
Restructuring charges, implementation costs and other related costs | $ | 12 | $ | 45 | $ | 41 | $ | 34 | |||||||
Impairment charges | — | — | — | 41 | |||||||||||
Pension and postretirement benefit mark-to-market adjustments | (9 | ) | — | — | (90 | ) | |||||||||
Transaction and integration costs | — | 19 | 46 | 8 | |||||||||||
Claim settlement | — | — | 15 | — | |||||||||||
Tax reform | — | (124 | ) | — | (6 | ) | |||||||||
Per share - assuming dilution | |||||||||||||||
Restructuring charges, implementation costs and other related costs | .04 | .15 | .14 | .11 | |||||||||||
Impairment charges | — | — | — | .14 | |||||||||||
Pension and postretirement benefit mark-to-market adjustments | (.03 | ) | — | — | (.30 | ) | |||||||||
Transaction and integration costs | — | .06 | .15 | .03 | |||||||||||
Claim settlement | — | — | .05 | — | |||||||||||
Tax reform | — | (.41 | ) | — | (.02 | ) | |||||||||
In 2018, the following charges (gains) were recorded in Earnings (loss) from discontinued operations: | |||||||||||||||
Restructuring charges, implementation costs and other related costs | — | 1 | 4 | (1 | ) | ||||||||||
Impairment charges | — | 74 | 497 | — | |||||||||||
Pension benefit mark-to-market and curtailment adjustments | — | — | — | (3 | ) | ||||||||||
Per share - assuming dilution | |||||||||||||||
Restructuring charges, implementation costs and other related costs | — | — | .01 | — | |||||||||||
Impairment charges | — | .25 | 1.65 | — | |||||||||||
Pension benefit mark-to-market and curtailment adjustments | — | — | — | (.01 | ) |
Details about Accumulated Other Comprehensive Income (Loss) Components | 2019 | 2018 | 2017 | Location of (Gain) Loss Recognized in Earnings | ||||||||||
(Gains) losses on cash flow hedges: | ||||||||||||||
Foreign exchange forward contracts | $ | (4 | ) | $ | 5 | $ | 3 | Cost of products sold | ||||||
Foreign exchange forward contracts | — | — | 1 | Other expenses / (income) | ||||||||||
Foreign exchange forward contracts | 2 | (4 | ) | 3 | Loss from discontinued operations | |||||||||
Forward starting interest rate swaps | 2 | 2 | 4 | Interest expense | ||||||||||
Total before tax | — | 3 | 11 | |||||||||||
Tax expense (benefit) | — | (1 | ) | (4 | ) | |||||||||
(Gain) loss, net of tax | $ | — | $ | 2 | $ | 7 | ||||||||
Pension and postretirement benefit adjustments: | ||||||||||||||
Prior service credit | $ | (28 | ) | $ | (27 | ) | $ | (25 | ) | Other expenses / (income) | ||||
Tax expense (benefit) | 7 | 7 | 9 | |||||||||||
(Gain) loss, net of tax | $ | (21 | ) | $ | (20 | ) | $ | (16 | ) |
2019 | 2018(1) | 2017 | Recognized as of July 28, 2019(1) | ||||||||||||
Restructuring charges | $ | 31 | $ | 55 | $ | 11 | $ | 229 | |||||||
Administrative expenses | 62 | 99 | 33 | 263 | |||||||||||
Cost of products sold | 18 | 45 | 4 | 67 | |||||||||||
Marketing and selling expenses | 7 | 3 | — | 10 | |||||||||||
Research and development expenses | 3 | — | — | 3 | |||||||||||
Total pre-tax charges | $ | 121 | $ | 202 | $ | 48 | $ | 572 |
(1) | Includes $13 of Restructuring charges and $12 of Administrative expenses associated with the Snyder's-Lance cost transformation program and integration recognized in 2018. |
2019 | 2018 | 2017 | Recognized as of July 28, 2019(1) | ||||||||||||
Total pre-tax charges | $ | — | $ | 8 | $ | 10 | $ | 23 |
Recognized as of July 28, 2019 | |||
Severance pay and benefits(1) | $ | 205 | |
Asset impairment/accelerated depreciation | 63 | ||
Implementation costs and other related costs(2) | 304 | ||
Total | $ | 572 |
(1) | Includes $13 of charges associated with the Snyder's-Lance cost transformation program and integration recognized in 2018. |
(2) | Includes $12 of charges associated with the Snyder's-Lance cost transformation program and integration recognized in 2018. |
Severance Pay and Benefits | Non-Cash Benefits(4) | Implementation Costs and Other Related Costs(5) | Asset Impairment/Accelerated Depreciation | Other Non-Cash Exit Costs(6) | Total Charges | |||||||||||||||
Accrued balance at July 30, 2017(1) | $ | 19 | ||||||||||||||||||
2018 charges | 49 | 2 | 115 | 33 | 3 | $ | 202 | |||||||||||||
2018 cash payments | (24 | ) | ||||||||||||||||||
Foreign currency translation adjustment | (1 | ) | ||||||||||||||||||
Accrued balance at July 29, 2018(2) | $ | 43 | ||||||||||||||||||
2019 charges | 31 | — | 72 | 18 | — | $ | 121 | |||||||||||||
2019 cash payments | (36 | ) | ||||||||||||||||||
Foreign currency translation adjustment | (1 | ) | ||||||||||||||||||
Accrued balance at July 28, 2019(3) | $ | 37 |
(1) | Includes $2 of severance pay and benefits recorded in Other liabilities in the Consolidated Balance Sheet. |
(2) | Includes $24 of severance pay and benefits recorded in Other liabilities in the Consolidated Balance Sheet, $1 of which is associated with the Snyder's-Lance cost transformation program and integration. Of total accrued balance, $9 is associated with the Snyder's-Lance cost transformation program and integration. |
(3) | Includes $8 of severance pay and benefits recorded in Other liabilities in the Consolidated Balance Sheet. |
(4) | Represents pension special termination benefits. See Note 11 for additional information. |
(5) | 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, Cost of products sold, Marketing and selling expenses, and Research and development expenses in the Consolidated Statements of Earnings. |
(6) | Includes non-cash costs that are not reflected in the restructuring reserve in the Consolidated Balance Sheet. |
2019 | Costs Incurred to Date(1) | ||||||
Meals & Beverages | $ | 34 | $ | 212 | |||
Snacks | 40 | 200 | |||||
Corporate | 47 | 160 | |||||
Total | $ | 121 | $ | 572 |
(1) | Includes $25 of pre-tax costs associated with the Snacks segment recognized in 2018 related to the Snyder's-Lance cost transformation program and integration. |
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 31, 2016 | $ | (124 | ) | $ | (41 | ) | $ | 61 | $ | (104 | ) | |||||
Other comprehensive income (loss) before reclassifications | 40 | 12 | 8 | 60 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 7 | (16 | ) | (9 | ) | ||||||||||
Net current-period other comprehensive income (loss) | 40 | 19 | (8 | ) | 51 | |||||||||||
Balance at July 30, 2017 | $ | (84 | ) | $ | (22 | ) | $ | 53 | $ | (53 | ) | |||||
Other comprehensive income (loss) before reclassifications | (70 | ) | 16 | 7 | (47 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 2 | (20 | ) | (18 | ) | ||||||||||
Net current-period other comprehensive income (loss) | (70 | ) | 18 | (13 | ) | (65 | ) | |||||||||
Balance at July 29, 2018 | $ | (154 | ) | $ | (4 | ) | $ | 40 | $ | (118 | ) | |||||
Cumulative effect of a change in accounting principle(4) | 2 | (3 | ) | 10 | 9 | |||||||||||
Other comprehensive income (loss) before reclassifications | (68 | ) | (2 | ) | — | (70 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss)(5) | 2 | — | (21 | ) | (19 | ) | ||||||||||
Net current-period other comprehensive income (loss) | (66 | ) | (2 | ) | (21 | ) | (89 | ) | ||||||||
Balance at July 28, 2019 | $ | (218 | ) | $ | (9 | ) | $ | 29 | $ | (198 | ) |
(1) | Included a tax expense of $4 as of July 28, 2019, and $6 as of July 29, 2018, July 30, 2017, and July 31, 2016. |
(2) | Included a tax benefit of $2 as of July 28, 2019, $4 as of July 29, 2018, $12 as of July 30, 2017, and $23 as of July 31, 2016. |
(3) | Included a tax expense of $8 as of July 28, 2019, $25 as of July 29, 2018, $30 as of July 30, 2017, and $35 as of July 31, 2016. |
Strategic Target | 2019 | 2018 | |||
Equity securities | 39% | 42% | 42% | ||
Debt securities | 50% | 46% | 46% | ||
Real estate and other | 11% | 12% | 12% | ||
Total | 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 July 28, 2019 | Fair Value Measurements at July 28, 2019 Using Fair Value Hierarchy | Fair Value as of July 29, 2018 | Fair Value Measurements at July 29, 2018 Using Fair Value Hierarchy | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Short-term investments | $ | 78 | $ | 32 | $ | 46 | $ | — | $ | 61 | $ | 29 | $ | 32 | $ | — | |||||||||||||||
Equities: | |||||||||||||||||||||||||||||||
U.S. | 267 | 267 | — | — | 284 | 284 | — | — | |||||||||||||||||||||||
Non-U.S. | 217 | 217 | — | — | 230 | 230 | — | — | |||||||||||||||||||||||
Corporate bonds: | |||||||||||||||||||||||||||||||
U.S. | 635 | — | 635 | — | 597 | — | 597 | — | |||||||||||||||||||||||
Non-U.S. | 142 | — | 142 | — | 138 | — | 138 | — | |||||||||||||||||||||||
Government and agency bonds: | |||||||||||||||||||||||||||||||
U.S. | 73 | — | 73 | — | 70 | — | 70 | — | |||||||||||||||||||||||
Non-U.S. | 29 | — | 29 | — | 33 | — | 33 | — | |||||||||||||||||||||||
Municipal bonds | 64 | — | 64 | — | 61 | — | 61 | — | |||||||||||||||||||||||
Mortgage and asset backed securities | 36 | — | 36 | — | 15 | — | 15 | — | |||||||||||||||||||||||
Real estate | 9 | 5 | — | 4 | 10 | 4 | — | 6 | |||||||||||||||||||||||
Hedge funds | 32 | — | 32 | 34 | — | — | 34 | ||||||||||||||||||||||||
Derivative assets | 4 | — | 4 | — | 8 | — | 8 | — | |||||||||||||||||||||||
Derivative liabilities | (6 | ) | — | (6 | ) | — | (4 | ) | — | (4 | ) | — | |||||||||||||||||||
Total assets at fair value | $ | 1,580 | $ | 521 | $ | 1,023 | $ | 36 | $ | 1,537 | $ | 547 | $ | 950 | $ | 40 | |||||||||||||||
Investments measured at net asset value: | |||||||||||||||||||||||||||||||
Short-term investments | 23 | 21 | |||||||||||||||||||||||||||||
Commingled funds: | |||||||||||||||||||||||||||||||
Equities | 319 | 310 | |||||||||||||||||||||||||||||
Fixed income | 35 | 31 | |||||||||||||||||||||||||||||
Blended | 84 | 85 | |||||||||||||||||||||||||||||
Real estate | 107 | 89 | |||||||||||||||||||||||||||||
Hedge funds | 76 | 95 | |||||||||||||||||||||||||||||
Total investments measured at net asset value: | 644 | 631 | |||||||||||||||||||||||||||||
Other items to reconcile to fair value of plan assets | (71 | ) | (14 | ) | |||||||||||||||||||||||||||
Total pension plan assets at fair value | $ | 2,153 | $ | 2,154 |
Pension | Postretirement | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Other assets | $ | 21 | $ | 61 | $ | — | $ | — | ||||||||
Accrued liabilities | 14 | 14 | 25 | 29 | ||||||||||||
Other liabilities | 179 | 141 | 210 | 206 | ||||||||||||
Noncurrent liabilities of discontinued operations | 20 | 9 | — | — | ||||||||||||
Net amounts recognized | $ | 192 | $ | 103 | $ | 235 | $ | 235 |
Amounts recognized in accumulated other comprehensive income (loss) consist of: | Pension | Postretirement | ||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Prior service (cost) credit | $ | (1 | ) | $ | (2 | ) | $ | 38 | $ | 67 |
Pension | Postretirement | |||||||
2019 | 2018 | 2019 | 2018 | |||||
Discount rate | 3.46% | 4.15% | 3.28% | 4.06% | ||||
Rate of compensation increase | 3.20% | 3.21% | 3.25% | 3.25% |
Pension | ||||||
2019 | 2018 | 2017 | ||||
Discount rate | 4.15% | 3.74% | 3.39% | |||
Expected return on plan assets | 6.86% | 6.84% | 7.09% | |||
Rate of compensation increase | 3.21% | 3.24% | 3.25% |
2019 | 2018 | |||||||
Projected benefit obligation | $ | 1,771 | $ | 249 | ||||
Accumulated benefit obligation | $ | 1,749 | $ | 241 | ||||
Fair value of plan assets | $ | 1,558 | $ | 85 |
Total Cash-Flow Hedge OCI Activity | |||||||||||||
Derivatives Designated as Cash-Flow Hedges | 2019 | 2018 | 2017 | ||||||||||
OCI derivative gain (loss) at beginning of year | $ | (8 | ) | $ | (34 | ) | $ | (64 | ) | ||||
Effective portion of changes in fair value recognized in OCI: | |||||||||||||
Foreign exchange forward contracts | (3 | ) | 8 | (4 | ) | ||||||||
Forward starting interest rate swaps | — | 15 | 23 | ||||||||||
Amount of (gain) loss reclassified from OCI to earnings: | Location in Earnings | ||||||||||||
Foreign exchange forward contracts | Cost of products sold | (4 | ) | 5 | 3 | ||||||||
Foreign exchange forward contracts | Other expenses / (income) | — | — | 1 | |||||||||
Foreign exchange forward contracts | Loss from discontinued operations | 2 | (4 | ) | 3 | ||||||||
Forward starting interest rate swaps | Interest expense | 2 | 2 | 4 | |||||||||
OCI derivative gain (loss) at end of year | $ | (11 | ) | $ | (8 | ) | $ | (34 | ) |
2019 | 2018 | 2017 | |||||||||
Cash Flows from Operating Activities | |||||||||||
Other | |||||||||||
Benefit related payments | $ | (60 | ) | $ | (59 | ) | $ | (58 | ) | ||
Other | (4 | ) | 5 | 3 | |||||||
$ | (64 | ) | $ | (54 | ) | $ | (55 | ) | |||
Other Cash Flow Information | |||||||||||
Interest paid | $ | 367 | $ | 152 | $ | 110 | |||||
Interest received | $ | 3 | $ | 4 | $ | 5 | |||||
Income taxes paid | $ | 117 | $ | 128 | $ | 320 | |||||
Non-cash Activity | |||||||||||
Build-to-suit lease commitment | $ | 20 | $ | — | $ | — |
2019 | 2018 | |||||||
Fair value at beginning of year | $ | 2,154 | $ | 2,183 | ||||
Actual return on plan assets | 162 | 137 | ||||||
Employer contributions | 5 | 5 | ||||||
Benefits paid | (141 | ) | (155 | ) | ||||
Settlements | (20 | ) | — | |||||
Foreign currency adjustment | (7 | ) | (16 | ) | ||||
Fair value at end of year | $ | 2,153 | $ | 2,154 |
Pension | Postretirement | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Obligation at beginning of year | $ | 2,257 | $ | 2,450 | $ | 235 | $ | 276 | ||||||||
Service cost | 21 | 24 | 1 | 1 | ||||||||||||
Interest cost | 82 | 74 | 8 | 7 | ||||||||||||
Actuarial loss (gain) | 168 | (110 | ) | 14 | (16 | ) | ||||||||||
Participant contributions | — | — | — | 1 | ||||||||||||
Plan amendments | — | 2 | — | (11 | ) | |||||||||||
Benefits paid | (154 | ) | (165 | ) | (24 | ) | (26 | ) | ||||||||
Settlements | (20 | ) | — | — | — | |||||||||||
Medicare subsidies | — | — | 1 | 3 | ||||||||||||
Other | (1 | ) | (2 | ) | — | — | ||||||||||
Special termination benefits | — | 2 | — | — | ||||||||||||
Curtailment | — | (2 | ) | — | — | |||||||||||
Foreign currency adjustment | (8 | ) | (16 | ) | — | — | ||||||||||
Benefit obligation at end of year | $ | 2,345 | $ | 2,257 | $ | 235 | $ | 235 |
2019 | 2018 | 2017 | |||||||||
Income taxes: | |||||||||||
Currently payable: | |||||||||||
Federal | $ | 104 | $ | 93 | $ | 241 | |||||
State | 19 | 26 | 39 | ||||||||
Non-U.S. | 5 | 11 | 2 | ||||||||
128 | 130 | 282 | |||||||||
Deferred: | |||||||||||
Federal | 19 | (26 | ) | 97 | |||||||
State | 7 | 14 | 2 | ||||||||
Non-U.S. | (3 | ) | (12 | ) | 11 | ||||||
23 | (24 | ) | 110 | ||||||||
$ | 151 | $ | 106 | $ | 392 |
Type | Fiscal Year of Maturity | Rate | 2019 | 2018 | ||||||||
Canadian credit facility | 2019 | Variable | $ | — | $ | 90 | ||||||
Notes | 2019 | 4.50% | — | 300 | ||||||||
Notes | 2020 | Variable | 500 | 500 | ||||||||
Notes | 2021 | Variable | 400 | 400 | ||||||||
Senior Term Loan | 2021 | Variable | 499 | 900 | ||||||||
Notes | 2021 | 3.30% | 650 | 650 | ||||||||
Notes | 2021 | 4.25% | 500 | 500 | ||||||||
Debentures | 2021 | 8.88% | 200 | 200 | ||||||||
Notes | 2023 | 2.50% | 450 | 450 | ||||||||
Notes | 2023 | 3.65% | 1,200 | 1,200 | ||||||||
Notes | 2025 | 3.95% | 850 | 850 | ||||||||
Notes | 2025 | 3.30% | 300 | 300 | ||||||||
Notes | 2028 | 4.15% | 1,000 | 1,000 | ||||||||
Notes | 2043 | 3.80% | 400 | 400 | ||||||||
Notes | 2048 | 4.80% | 700 | 700 | ||||||||
Capital leases | 3 | — | ||||||||||
Other(1) | (49 | ) | (59 | ) | ||||||||
Total | $ | 7,603 | $ | 8,381 | ||||||||
Less current portion | 500 | 390 | ||||||||||
Total long-term debt | $ | 7,103 | $ | 7,991 |
(1) | Includes unamortized net discount/premium on debt issuances and debt issuance costs. |
2019 | 2018 | ||||||
Depreciation | $ | 336 | $ | 342 | |||
Amortization | 877 | 868 | |||||
Other | 16 | 35 | |||||
Deferred tax liabilities | 1,229 | 1,245 | |||||
Benefits and compensation | 157 | 144 | |||||
Pension benefits | 46 | 24 | |||||
Tax loss carryforwards | 43 | 65 | |||||
Capital loss carryforwards | 287 | 88 | |||||
Outside basis difference | 116 | — | |||||
Other | 82 | 92 | |||||
Gross deferred tax assets | 731 | 413 | |||||
Deferred tax asset valuation allowance | (427 | ) | (133 | ) | |||
Deferred tax assets, net of valuation allowance | 304 | 280 | |||||
Net deferred tax liability | $ | 925 | $ | 965 |
Balance Sheet Classification | 2019 | 2018 | |||||||
Asset Derivatives | |||||||||
Derivatives designated as hedges: | |||||||||
Foreign exchange forward contracts | Current assets of discontinued operations | $ | — | $ | 1 | ||||
Total derivatives designated as hedges | $ | — | $ | 1 | |||||
Derivatives not designated as hedges: | |||||||||
Commodity derivative contracts | Other current assets | $ | 3 | $ | 5 | ||||
Deferred compensation derivative contracts | Other current assets | 1 | 1 | ||||||
Foreign exchange forward contracts | Other current assets | 1 | 3 | ||||||
Total derivatives not designated as hedges | $ | 5 | $ | 9 | |||||
Total asset derivatives | $ | 5 | $ | 10 |
Balance Sheet Classification | 2019 | 2018 | |||||||
Liability Derivatives | |||||||||
Derivatives designated as hedges: | |||||||||
Foreign exchange forward contracts | Current liabilities of discontinued operations | $ | 2 | $ | 2 | ||||
Total derivatives designated as hedges | $ | 2 | $ | 2 | |||||
Derivatives not designated as hedges: | |||||||||
Commodity derivative contracts | Accrued liabilities | $ | 6 | $ | 3 | ||||
Foreign exchange forward contracts | Accrued liabilities | 2 | — | ||||||
Commodity derivative contracts | Other liabilities | — | 1 | ||||||
Total derivatives not designated as hedges | $ | 8 | $ | 4 | |||||
Total liability derivatives | $ | 10 | $ | 6 |
Campbell International | Campbell Fresh | Campbell International | Total | |||||||||||||
July 28, 2019 | July 29, 2018 | July 29, 2018 | July 29, 2018 | |||||||||||||
Cash and cash equivalents | $ | 148 | $ | 8 | $ | 169 | $ | 177 | ||||||||
Accounts receivable, net | 135 | 84 | 138 | 222 | ||||||||||||
Inventories | 135 | 161 | 151 | 312 | ||||||||||||
Other current assets | 10 | 3 | 12 | 15 | ||||||||||||
Current assets | $ | 428 | $ | 256 | $ | 470 | $ | 726 | ||||||||
Plant assets, net of depreciation | $ | 340 | $ | 413 | $ | 354 | $ | 767 | ||||||||
Goodwill | 661 | — | 716 | 716 | ||||||||||||
Other intangible assets, net of amortization | 135 | 381 | 151 | 532 | ||||||||||||
Other assets | 31 | 4 | 31 | 35 | ||||||||||||
Total assets | $ | 1,595 | $ | 1,054 | $ | 1,722 | $ | 2,776 | ||||||||
Short-term borrowings | $ | 232 | $ | — | $ | 371 | $ | 371 | ||||||||
Payable to suppliers and others | 109 | 79 | 109 | 188 | ||||||||||||
Accrued liabilities | 114 | 39 | 121 | 160 | ||||||||||||
Accrued income taxes | 14 | — | 12 | 12 | ||||||||||||
Current liabilities | $ | 469 | $ | 118 | $ | 613 | $ | 731 | ||||||||
Long-term debt | $ | 6 | $ | — | $ | 7 | $ | 7 | ||||||||
Deferred taxes | 32 | (1 | ) | 36 | 35 | |||||||||||
Other liabilities | 27 | 5 | 17 | 22 | ||||||||||||
Total liabilities | $ | 534 | $ | 122 | $ | 673 | $ | 795 |
Real Estate | Hedge Funds | Total | ||||||||||
Fair value at July 29, 2018 | $ | 6 | $ | 34 | $ | 40 | ||||||
Actual return on plan assets | 1 | — | 1 | |||||||||
Purchases | — | — | — | |||||||||
Sales | (3 | ) | (2 | ) | (5 | ) | ||||||
Settlements | — | — | — | |||||||||
Transfers out of Level 3 | — | — | — | |||||||||
Fair value at July 28, 2019 | $ | 4 | $ | 32 | $ | 36 |
Real Estate | Hedge Funds | Total | ||||||||||
Fair value at July 30, 2017 | $ | 7 | $ | 38 | $ | 45 | ||||||
Actual return on plan assets | 2 | 2 | 4 | |||||||||
Purchases | — | — | — | |||||||||
Sales | (3 | ) | (6 | ) | (9 | ) | ||||||
Settlements | — | — | — | |||||||||
Transfers out of Level 3 | — | — | — | |||||||||
Fair value at July 29, 2018 | $ | 6 | $ | 34 | $ | 40 |
2019 | 2018 | 2017 | ||||||
Federal statutory income tax rate | 21.0 | % | 21.0 | % | 35.0 | % | ||
State income taxes (net of federal tax benefit) | 2.2 | 3.0 | 2.1 | |||||
Tax effect of international items | — | (0.5 | ) | (0.4 | ) | |||
Federal manufacturing deduction | — | (1.4 | ) | (2.2 | ) | |||
Tax Reform - impact on U.S. deferred tax assets and liabilities(1) | — | (21.7 | ) | — | ||||
Tax Reform - transition tax(1) | 0.3 | 6.4 | — | |||||
Effect of higher U.S. federal statutory tax rate(1) | — | 5.3 | — | |||||
Foreign exchange losses(2) | — | — | (3.8 | ) | ||||
Divestiture impact on deferred taxes | 1.2 | — | — | |||||
Other | (0.5 | ) | 0.7 | (0.9 | ) | |||
Effective income tax rate | 24.2 | % | 12.8 | % | 29.8 | % |
(1) | The Tax Cuts and Jobs Act of 2017 (the Act) was enacted into law on December 22, 2017, and made significant changes to corporate taxation. Changes under the Act included: |
• | Reducing the federal corporate tax rate from 35% to 21% effective January 1, 2018. A blended rate applied for fiscal 2018 non-calendar year end companies for the fiscal periods that included the effective date of the rate change. The impact of this is shown as \"Effect of higher U.S. federal statutory tax rate;\" |
• | Repealing the exception for deductibility of performance-based compensation to covered employees, which impacted us beginning in 2019, along with expanding the number of covered employees; |
• | Transitioning to a territorial system for taxation on foreign earnings along with the imposition of a transition tax in 2018 on the deemed repatriation of unremitted foreign earnings; |
• | Immediate expensing of machinery and equipment placed into service after September 27, 2017; |
• | Eliminating the deduction for domestic manufacturing activities, which impacted us beginning in 2019; |
• | Changes to the taxation of multinational companies, including a new minimum tax on Global Intangible Low-Taxed Income, a new Base Erosion Anti-Abuse Tax, and a new U.S. corporate deduction for Foreign-Derived Intangible Income, all of which were effective for us beginning in 2019; and |
• | Limiting the deductibility of interest expense to 30% of adjusted taxable income, which was effective for us beginning in 2019. |
(2) | The 2017 rate was favorably impacted by a $52 benefit primarily related to the sale of intercompany notes receivable to a financial institution, which resulted in the recognition of foreign exchange losses. |
2019 | 2018 | 2017 | ||||||||||
Net sales | ||||||||||||
Soup | $ | 2,368 | $ | 2,355 | $ | 2,407 | ||||||
Snacks | 3,918 | 2,438 | 1,619 | |||||||||
Other simple meals | 1,082 | 1,108 | 1,118 | |||||||||
Beverages | 738 | 711 | 693 | |||||||||
Other | 1 | 3 | — | |||||||||
Total | $ | 8,107 | $ | 6,615 | $ | 5,837 |
Pension | Postretirement | |||||||
2020 | $ | 172 | $ | 25 | ||||
2021 | $ | 170 | $ | 23 | ||||
2022 | $ | 164 | $ | 22 | ||||
2023 | $ | 158 | $ | 21 | ||||
2024 | $ | 153 | $ | 19 | ||||
2025-2029 | $ | 728 | $ | 78 |
Fair Value as of July 28, 2019 | Fair Value Measurements at July 28, 2019 Using Fair Value Hierarchy | Fair Value as of July 29, 2018 | Fair Value Measurements at July 29, 2018 Using Fair Value Hierarchy | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Foreign exchange forward contracts(1) | $ | 1 | $ | — | $ | 1 | $ | — | $ | 4 | $ | — | $ | 4 | $ | — | |||||||||||||||
Commodity derivative contracts(2) | 3 | 2 | 1 | — | 5 | 5 | — | — | |||||||||||||||||||||||
Deferred compensation derivative contracts(3) | 1 | — | 1 | — | 1 | — | 1 | — | |||||||||||||||||||||||
Deferred compensation investments(4) | 4 | 4 | — | — | 6 | 6 | — | — | |||||||||||||||||||||||
Fair value option investments(5) | 76 | — | — | 76 | 77 | — | — | 77 | |||||||||||||||||||||||
Total assets at fair value | $ | 85 | $ | 6 | $ | 3 | $ | 76 | $ | 93 | $ | 11 | $ | 5 | $ | 77 |
Fair Value as of July 28, 2019 | Fair Value Measurements at July 28, 2019 Using Fair Value Hierarchy | Fair Value as of July 29, 2018 | Fair Value Measurements at July 29, 2018 Using Fair Value Hierarchy | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Foreign exchange forward contracts(1) | $ | 4 | $ | — | $ | 4 | $ | — | $ | 2 | $ | — | $ | 2 | $ | — | |||||||||||||||
Commodity derivative contracts(2) | 6 | 3 | 3 | — | 4 | 3 | 1 | — | |||||||||||||||||||||||
Deferred compensation obligation(4) | 95 | 95 | — | — | 108 | 108 | — | — | |||||||||||||||||||||||
Total liabilities at fair value | $ | 105 | $ | 98 | $ | 7 | $ | — | $ | 114 | $ | 111 | $ | 3 | $ | — |
(1) | Based on observable market transactions of spot currency rates and forward rates. |
(2) | Based on quoted futures exchanges and on observable prices of futures and options transactions in the marketplace. |
(3) | Based on LIBOR and equity index swap rates. |
(4) | Based on the fair value of the participants’ investments. |
(5) | Primarily represents investments in equity securities that are not readily marketable and are accounted for under the fair value option. The investments were funded by Acre. See Note 15 for additional information. Fair value is based on analyzing recent transactions and transactions of comparable companies, and the discounted cash flow method. In addition, allocation methods, including the option pricing method, are used in distributing fair value among various equity holders according to rights and preferences. |
2019 | 2018 | |||||||||||||||||||||||
Intangible Assets | Estimated Useful Lives | Cost | Accumulated Amortization | Net | Cost | Accumulated Amortization | Net | |||||||||||||||||
Amortizable intangible assets | ||||||||||||||||||||||||
Customer relationships | 10 | to | 22 | $ | 855 | $ | (70 | ) | $ | 785 | $ | 917 | $ | (26 | ) | $ | 891 | |||||||
Other | 1.5 | to | 20 | 14 | (13 | ) | 1 | 14 | (5 | ) | 9 | |||||||||||||
Total amortizable intangible assets | $ | 869 | $ | (83 | ) | $ | 786 | $ | 931 | $ | (31 | ) | $ | 900 | ||||||||||
Non-amortizable intangible assets | ||||||||||||||||||||||||
Trademarks | 2,629 | 2,764 | ||||||||||||||||||||||
Total net intangible assets | $ | 3,415 | $ | 3,664 |
2020 | 2021 | 2022 | 2023 | 2024 | Thereafter |
$68 | $54 | $40 | $29 | $21 | $88 |
Meals & Beverages | Snacks | Total | |||||||||
Net balance at July 30, 2017 | $ | 780 | $ | 31 | $ | 811 | |||||
Acquisitions | 202 | 2,866 | 3,068 | ||||||||
Foreign currency translation adjustment | (4 | ) | (11 | ) | (15 | ) | |||||
Net balance at July 29, 2018 | $ | 978 | $ | 2,886 | $ | 3,864 | |||||
Changes in preliminary purchase price allocation | — | 140 | 140 | ||||||||
Acquisition | — | 21 | 21 | ||||||||
Foreign currency translation adjustment | (1 | ) | (7 | ) | (8 | ) | |||||
Net balance at July 28, 2019 | $ | 977 | $ | 3,040 | $ | 4,017 |
2019 | 2018 | |||
Health care cost trend rate assumed for next year | 6.25% | 6.75% | ||
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 | 2023 | 2023 |
2019 | 2018 | 2017 | ||||||||||
Earnings from continuing operations before income taxes: | ||||||||||||
United States | $ | 624 | $ | 832 | $ | 1,264 | ||||||
Non-U.S. | 1 | (2 | ) | 52 | ||||||||
$ | 625 | $ | 830 | $ | 1,316 |
2019 | 2018 | |||||||||||||||||||||||
Intangible Assets | Estimated Useful Lives | Cost | Accumulated Amortization | Net | Cost | Accumulated Amortization | Net | |||||||||||||||||
Amortizable intangible assets | ||||||||||||||||||||||||
Customer relationships | 10 | to | 22 | $ | 855 | $ | (70 | ) | $ | 785 | $ | 917 | $ | (26 | ) | $ | 891 | |||||||
Other | 1.5 | to | 20 | 14 | (13 | ) | 1 | 14 | (5 | ) | 9 | |||||||||||||
Total amortizable intangible assets | $ | 869 | $ | (83 | ) | $ | 786 | $ | 931 | $ | (31 | ) | $ | 900 | ||||||||||
Non-amortizable intangible assets | ||||||||||||||||||||||||
Trademarks | 2,629 | 2,764 | ||||||||||||||||||||||
Total net intangible assets | $ | 3,415 | $ | 3,664 |
Pension | |||||||||||
2019 | 2018 | 2017 | |||||||||
Service cost | $ | 21 | $ | 24 | $ | 26 | |||||
Interest cost | 82 | 74 | 86 | ||||||||
Expected return on plan assets | (143 | ) | (144 | ) | (144 | ) | |||||
Amortization of prior service cost | 1 | — | — | ||||||||
Recognized net actuarial (gain) loss | 120 | (104 | ) | (198 | ) | ||||||
Special termination benefits | — | 2 | — | ||||||||
Curtailment gains | — | (2 | ) | — | |||||||
Settlement charge | 28 | — | — | ||||||||
Net periodic benefit expense (income) | $ | 109 | $ | (150 | ) | $ | (230 | ) |
Postretirement | |||||||||||
2019 | 2018 | 2017 | |||||||||
Service cost | $ | 1 | $ | 1 | $ | 1 | |||||
Interest cost | 8 | 7 | 10 | ||||||||
Amortization of prior service credit | (29 | ) | (27 | ) | (25 | ) | |||||
Recognized net actuarial (gain) loss | 14 | (16 | ) | (14 | ) | ||||||
Net periodic benefit expense (income) | $ | (6 | ) | $ | (35 | ) | $ | (28 | ) |
As Reported | Balances Without Adoption | Increase/(Decrease) Due to Adoption | ||||||||||
Accrued liabilities | $ | 609 | $ | 605 | $ | 4 | ||||||
Accrued income taxes | 15 | 16 | (1 | ) | ||||||||
Total current liabilities | 3,385 | 3,382 | 3 | |||||||||
Total liabilities | 12,036 | 12,033 | 3 | |||||||||
Campbell Soup Company shareholders' equity | ||||||||||||
Earnings retained in the business | $ | 1,993 | $ | 1,996 | $ | (3 | ) | |||||
Total Campbell Soup Company shareholders' equity | 1,103 | 1,106 | (3 | ) | ||||||||
Total equity | 1,112 | 1,115 | (3 | ) |
As Reported | Balances Without Adoption | Increase/(Decrease) Due to Adoption | ||||||||||
Net sales | $ | 8,107 | $ | 8,099 | $ | 8 | ||||||
Cost of products sold | $ | 5,414 | $ | 5,413 | $ | 1 | ||||||
Total costs and expenses | $ | 7,128 | $ | 7,127 | $ | 1 | ||||||
Earnings before interest and taxes | $ | 979 | $ | 972 | $ | 7 | ||||||
Earnings before taxes | $ | 625 | $ | 618 | $ | 7 | ||||||
Taxes on earnings | 151 | 149 | 2 | |||||||||
Earnings from continuing operations attributable to Campbell Soup Company | $ | 474 | $ | 469 | $ | 5 | ||||||
Per Share — Basic | ||||||||||||
Earnings from continuing operations attributable to Campbell Soup Company(1) | $ | 1.57 | $ | 1.56 | $ | .02 | ||||||
Per Share — Assuming Dilution | ||||||||||||
Earnings from continuing operations attributable to Campbell Soup Company | $ | 1.57 | $ | 1.55 | $ | .02 |
(1) | The sum of individual per share amounts may not add due to rounding. |
2019 | |||||||||||||||
First | Second | Third | Fourth | ||||||||||||
Net sales | $ | 2,202 | $ | 2,172 | $ | 1,953 | $ | 1,780 | |||||||
Gross profit | 726 | 706 | 655 | 606 | |||||||||||
Earnings (loss) from continuing operations attributable to Campbell Soup Company | 180 | 176 | 123 | (5 | ) | ||||||||||
Earnings (loss) from discontinued operations | 14 | (235 | ) | (39 | ) | (3 | ) | ||||||||
Net earnings (loss) attributable to Campbell Soup Company | 194 | (59 | ) | 84 | (8 | ) | |||||||||
Per share - basic | |||||||||||||||
Earnings (loss) from continuing operations attributable to Campbell Soup Company | .60 | .58 | .41 | (.02 | ) | ||||||||||
Earnings (loss) from discontinued operations | .05 | (.78 | ) | (.13 | ) | (.01 | ) | ||||||||
Net earnings (loss) attributable to Campbell Soup Company (1) | .64 | (.20 | ) | .28 | (.03 | ) | |||||||||
Dividends | .35 | .35 | .35 | .35 | |||||||||||
Earnings per share - assuming dilution | |||||||||||||||
From continuing operations attributable to Campbell Soup Company | .60 | .58 | .41 | (.02 | ) | ||||||||||
From discontinued operations | .05 | (.78 | ) | (.13 | ) | (.01 | ) | ||||||||
Net attributable to Campbell Soup Company (1) | .64 | (.20 | ) | .28 | (.03 | ) |
(1) | The sum of individual per share amounts may not add due to rounding. |
2019 | |||||||||||||||
First | Second | Third | Fourth | ||||||||||||
In 2019, the following charges (gains) were recorded in Earnings (loss) from continuing operations attributable to Campbell Soup Company: | |||||||||||||||
Restructuring charges, implementation costs and other related costs | $ | 34 | $ | 18 | $ | 16 | $ | 24 | |||||||
Impairment charges | — | — | — | 13 | |||||||||||
Pension and postretirement benefit mark-to-market adjustments | — | — | — | 93 | |||||||||||
Pension settlement | — | — | 22 | — | |||||||||||
Tax reform | — | 2 | — | — | |||||||||||
Per share - assuming dilution | |||||||||||||||
Restructuring charges, implementation costs and other related costs | .11 | .06 | .05 | .08 | |||||||||||
Impairment charges | — | — | — | .04 | |||||||||||
Pension and postretirement benefit mark-to-market adjustments | — | — | — | .31 | |||||||||||
Pension settlement | — | — | .07 | — | |||||||||||
Tax reform | — | .01 | — | — | |||||||||||
In 2019, the following charges (gains) were recorded in Earnings (loss) from discontinued operations: | |||||||||||||||
Restructuring charges, implementation costs and other related costs | $ | 1 | $ | — | $ | (1 | ) | $ | — | ||||||
Impairment charges | 11 | 264 | — | 12 | |||||||||||
Costs associated with divestitures | — | 8 | 48 | 4 | |||||||||||
Pension benefit mark-to-market adjustments | — | — | — | 9 | |||||||||||
Per share - assuming dilution | |||||||||||||||
Restructuring charges, implementation costs and other related costs | — | — | — | — | |||||||||||
Impairment charges | .04 | .87 | — | .04 | |||||||||||
Costs associated with divestitures | — | .03 | .16 | .01 | |||||||||||
Pension benefit mark-to-market adjustments | — | — | — | .03 |
2018 | |||||||||||||||
First | Second | Third | Fourth | ||||||||||||
Net sales | $ | 1,638 | $ | 1,614 | $ | 1,618 | $ | 1,745 | |||||||
Gross profit | 656 | 637 | 533 | 548 | |||||||||||
Earnings from continuing operations attributable to Campbell Soup Company | 227 | 314 | 57 | 126 | |||||||||||
Earnings (loss) from discontinued operations | 48 | (29 | ) | (450 | ) | (32 | ) | ||||||||
Net earnings (loss) attributable to Campbell Soup Company | 275 | 285 | (393 | ) | 94 | ||||||||||
Per share - basic | |||||||||||||||
Earnings from continuing operations attributable to Campbell Soup Company | .75 | 1.04 | .19 | .42 | |||||||||||
Earnings (loss) from discontinued operations | .16 | (.10 | ) | (1.50 | ) | (.11 | ) | ||||||||
Net earnings (loss) attributable to Campbell Soup Company(1) | .91 | .95 | (1.31 | ) | .31 | ||||||||||
Dividends | .35 | .35 | .35 | .35 | |||||||||||
Per share - assuming dilution | |||||||||||||||
Earnings from continuing operations attributable to Campbell Soup Company | .75 | 1.04 | .19 | .42 | |||||||||||
Earnings (loss) from discontinued operations | .16 | (.10 | ) | (1.50 | ) | (.11 | ) | ||||||||
Net earnings (loss) attributable to Campbell Soup Company(1) | .91 | .95 | (1.31 | ) | .31 |
(1) | The sum of individual per share amounts may not add due to rounding. |
2018 | |||||||||||||||
First | Second | Third | Fourth | ||||||||||||
In 2018, the following charges (gains) were recorded in Earnings from continuing operations attributable to Campbell Soup Company: | |||||||||||||||
Restructuring charges, implementation costs and other related costs | $ | 12 | $ | 45 | $ | 41 | $ | 34 | |||||||
Impairment charges | — | — | — | 41 | |||||||||||
Pension and postretirement benefit mark-to-market adjustments | (9 | ) | — | — | (90 | ) | |||||||||
Transaction and integration costs | — | 19 | 46 | 8 | |||||||||||
Claim settlement | — | — | 15 | — | |||||||||||
Tax reform | — | (124 | ) | — | (6 | ) | |||||||||
Per share - assuming dilution | |||||||||||||||
Restructuring charges, implementation costs and other related costs | .04 | .15 | .14 | .11 | |||||||||||
Impairment charges | — | — | — | .14 | |||||||||||
Pension and postretirement benefit mark-to-market adjustments | (.03 | ) | — | — | (.30 | ) | |||||||||
Transaction and integration costs | — | .06 | .15 | .03 | |||||||||||
Claim settlement | — | — | .05 | — | |||||||||||
Tax reform | — | (.41 | ) | — | (.02 | ) | |||||||||
In 2018, the following charges (gains) were recorded in Earnings (loss) from discontinued operations: | |||||||||||||||
Restructuring charges, implementation costs and other related costs | — | 1 | 4 | (1 | ) | ||||||||||
Impairment charges | — | 74 | 497 | — | |||||||||||
Pension benefit mark-to-market and curtailment adjustments | — | — | — | (3 | ) | ||||||||||
Per share - assuming dilution | |||||||||||||||
Restructuring charges, implementation costs and other related costs | — | — | .01 | — | |||||||||||
Impairment charges | — | .25 | 1.65 | — | |||||||||||
Pension benefit mark-to-market and curtailment adjustments | — | — | — | (.01 | ) |
Snyder's-Lance | Pacific Foods | |||||||
Cash | $ | 21 | $ | 7 | ||||
Accounts receivable | 220 | 16 | ||||||
Inventories | 219 | 48 | ||||||
Other current assets | 32 | 1 | ||||||
Plant assets | 696 | 78 | ||||||
Goodwill | 3,006 | 202 | ||||||
Other intangible assets | 2,761 | 366 | ||||||
Other assets | 65 | — | ||||||
Short-term debt | (1 | ) | — | |||||
Accounts payable | (124 | ) | (24 | ) | ||||
Accrued liabilities | (115 | ) | (6 | ) | ||||
Deferred income taxes | (597 | ) | — | |||||
Other liabilities | (24 | ) | — | |||||
Noncontrolling interest | (47 | ) | — | |||||
Total assets acquired and liabilities assumed | $ | 6,112 | $ | 688 |
2019 | 2018(1) | 2017 | Recognized as of July 28, 2019(1) | ||||||||||||
Restructuring charges | $ | 31 | $ | 55 | $ | 11 | $ | 229 | |||||||
Administrative expenses | 62 | 99 | 33 | 263 | |||||||||||
Cost of products sold | 18 | 45 | 4 | 67 | |||||||||||
Marketing and selling expenses | 7 | 3 | — | 10 | |||||||||||
Research and development expenses | 3 | — | — | 3 | |||||||||||
Total pre-tax charges | $ | 121 | $ | 202 | $ | 48 | $ | 572 |
(1) | Includes $13 of Restructuring charges and $12 of Administrative expenses associated with the Snyder's-Lance cost transformation program and integration recognized in 2018. |
2019 | 2018 | 2017 | Recognized as of July 28, 2019(1) | ||||||||||||
Total pre-tax charges | $ | — | $ | 8 | $ | 10 | $ | 23 |
Recognized as of July 28, 2019 | |||
Severance pay and benefits(1) | $ | 205 | |
Asset impairment/accelerated depreciation | 63 | ||
Implementation costs and other related costs(2) | 304 | ||
Total | $ | 572 |
(1) | Includes $13 of charges associated with the Snyder's-Lance cost transformation program and integration recognized in 2018. |
(2) | Includes $12 of charges associated with the Snyder's-Lance cost transformation program and integration recognized in 2018 |
Severance Pay and Benefits | Non-Cash Benefits(4) | Implementation Costs and Other Related Costs(5) | Asset Impairment/Accelerated Depreciation | Other Non-Cash Exit Costs(6) | Total Charges | |||||||||||||||
Accrued balance at July 30, 2017(1) | $ | 19 | ||||||||||||||||||
2018 charges | 49 | 2 | 115 | 33 | 3 | $ | 202 | |||||||||||||
2018 cash payments | (24 | ) | ||||||||||||||||||
Foreign currency translation adjustment | (1 | ) | ||||||||||||||||||
Accrued balance at July 29, 2018(2) | $ | 43 | ||||||||||||||||||
2019 charges | 31 | — | 72 | 18 | — | $ | 121 | |||||||||||||
2019 cash payments | (36 | ) | ||||||||||||||||||
Foreign currency translation adjustment | (1 | ) | ||||||||||||||||||
Accrued balance at July 28, 2019(3) | $ | 37 |
(1) | Includes $2 of severance pay and benefits recorded in Other liabilities in the Consolidated Balance Sheet. |
(2) | Includes $24 of severance pay and benefits recorded in Other liabilities in the Consolidated Balance Sheet, $1 of which is associated with the Snyder's-Lance cost transformation program and integration. Of total accrued balance, $9 is associated with the Snyder's-Lance cost transformation program and integration. |
(3) | Includes $8 of severance pay and benefits recorded in Other liabilities in the Consolidated Balance Sheet. |
(4) | Represents pension special termination benefits. See Note 11 for additional information. |
(5) | 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, Cost of products sold, Marketing and selling expenses, and Research and development expenses in the Consolidated Statements of Earnings. |
(6) | Includes non-cash costs that are not reflected in the restructuring reserve in the Consolidated Balance Sheet. |
2019 | 2018 | 2017 | ||||||||||
Net sales | ||||||||||||
United States | $ | 7,492 | $ | 6,068 | $ | 5,371 | ||||||
Other countries | 615 | 547 | 466 | |||||||||
Total | $ | 8,107 | $ | 6,615 | $ | 5,837 |
2019 | 2018 | 2017 | ||||||||||
Long-lived assets | ||||||||||||
United States | $ | 2,400 | $ | 2,363 | $ | 1,547 | ||||||
Other countries | 55 | 103 | 97 | |||||||||
Total | $ | 2,455 | $ | 2,466 | $ | 1,644 |
2019 | 2018 | 2017 | ||||||||||
Net sales | ||||||||||||
Meals & Beverages | $ | 4,322 | $ | 4,305 | $ | 4,340 | ||||||
Snacks | 3,784 | 2,307 | 1,497 | |||||||||
Corporate | 1 | 3 | — | |||||||||
Total | $ | 8,107 | $ | 6,615 | $ | 5,837 |
2019 | 2018 | 2017 | ||||||||||
Earnings before interest and taxes | ||||||||||||
Meals & Beverages | $ | 903 | $ | 988 | $ | 1,118 | ||||||
Snacks | 514 | 383 | 310 | |||||||||
Corporate(1) | (407 | ) | (306 | ) | 14 | |||||||
Restructuring charges(2) | (31 | ) | (55 | ) | (11 | ) | ||||||
Total | $ | 979 | $ | 1,010 | $ | 1,431 |
2019 | 2018 | 2017 | ||||||||||
Depreciation and amortization | ||||||||||||
Meals & Beverages | $ | 162 | $ | 158 | $ | 118 | ||||||
Snacks | 184 | 102 | 56 | |||||||||
Corporate(3) | 17 | 19 | 19 | |||||||||
Discontinued operations | 83 | 115 | 125 | |||||||||
Total | $ | 446 | $ | 394 | $ | 318 |
2019 | 2018 | 2017 | ||||||||||
Capital expenditures | ||||||||||||
Meals & Beverages | $ | 156 | $ | 187 | $ | 117 | ||||||
Snacks | 134 | 91 | 75 | |||||||||
Corporate(3) | 35 | 41 | 47 | |||||||||
Discontinued operations | 59 | 88 | 99 | |||||||||
Total | $ | 384 | $ | 407 | $ | 338 |
(1) | Represents unallocated items. Pension and postretirement benefit settlement and mark-to-market adjustments are included in Corporate. There were settlement charges of $28 and losses of $122 in 2019, gains of $131 and $156 in 2018 and 2017, respectively. Costs related to the cost savings initiatives were $90, $135 and $37 in 2019, 2018 and 2017, respectively. Transaction and integration costs associated with the acquisition of Snyder's-Lance were $107 in 2018. Intangible asset impairment charges were $16 in 2019 and $54 in 2018. A charge of $22 related to the settlement of a legal claim was included in 2018. |
(2) | See Note 8 for additional information. |
(3) | Represents primarily corporate offices. |
Units | Weighted- Average Grant-Date Fair Value | |||||
(Restricted stock units in thousands) | ||||||
Nonvested at July 29, 2018 | 1,664 | $ | 46.66 | |||
Granted | 388 | $ | 31.29 | |||
Vested | — | $ | — | |||
Forfeited | (744 | ) | $ | 55.07 | ||
Nonvested at July 28, 2019 | 1,308 | $ | 37.33 |
Units | Weighted- Average Grant-Date Fair Value | |||||
(Restricted stock units in thousands) | ||||||
Nonvested at July 29, 2018 | 1,652 | $ | 47.01 | |||
Granted | 1,340 | $ | 36.51 | |||
Vested | (711 | ) | $ | 47.83 | ||
Forfeited | (321 | ) | $ | 40.67 | ||
Nonvested at July 28, 2019 | 1,960 | $ | 40.57 |
Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||
(Options in thousands) | (In years) | |||||||||||
Exercisable at July 29, 2018 | 1,537 | $ | 50.36 | |||||||||
Granted | 596 | $ | 35.74 | |||||||||
Exercised | — | $ | — | |||||||||
Terminated | (74 | ) | $ | 49.05 | ||||||||
Outstanding at July 28, 2019 | 2,059 | $ | 46.17 | 7.3 | $ | 3 | ||||||
Exercisable at July 28, 2019 | 1,035 | $ | 50.88 | 5.9 | $ | — |
2019 | 2018 | 2017 | |||
Risk-free interest rate | 2.80% | 1.58% | 0.85% | ||
Expected dividend yield | 3.79% | 2.95% | 2.26% | ||
Expected volatility | 24.50% | 19.07% | 17.78% | ||
Expected term | 3 years | 3 years | 3 years |
2019 | 2018 | 2017 | |||
Risk-free interest rate | 2.79% | 2.06% | 1.28% | ||
Expected dividend yield | 3.84% | 2.95% | 2.26% | ||
Expected volatility | 25.28% | 19.60% | 18.64% | ||
Expected term | 6.1 years | 6 years | 6 years | ||
Grant-date fair value | $6.27 | $6.67 | $7.51 |
2019 | 2018 | ||||||
Commercial paper | $ | 853 | $ | 1,140 | |||
Notes | 500 | 300 | |||||
Current portion of Canadian credit facility | — | 90 | |||||
Capital leases | 1 | — | |||||
Build-to-suit lease commitment | 20 | — | |||||
Other(1) | (3 | ) | (5 | ) | |||
Total short-term borrowings | $ | 1,371 | $ | 1,525 |
(1) | Includes unamortized net discount/premium on debt issuances and debt issuance costs. |
2019 | 2018 | 2017 | |||||||||
Balance at beginning of year | $ | 32 | $ | 64 | $ | 63 | |||||
Increases related to prior-year tax positions | 1 | — | 4 | ||||||||
Decreases related to prior-year tax positions | (1 | ) | (37 | ) | — | ||||||
Increases related to current-year tax positions | 2 | 2 | 4 | ||||||||
Settlements | (9 | ) | (1 | ) | (7 | ) | |||||
Lapse of statute | (1 | ) | — | — | |||||||
Increase due to acquisitions | — | 4 | — | ||||||||
Balance at end of year | $ | 24 | $ | 32 | $ | 64 |
• | Meals & Beverages, which includes the retail and foodservice businesses in the U.S. and Canada. The segment includes the following products: Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks; Pacific Foods broth, soups, non-dairy beverages and other simple meals; Prego pasta sauces; Pace Mexican sauces; Campbell’s gravies, pasta, beans and dinner sauces; Swanson canned poultry; Plum baby food and snacks; V8 juices and beverages; and Campbell’s tomato juice. The segment also includes the simple meals and shelf-stable beverages business in Latin America; and |
• | Snacks, which consists of Pepperidge Farm cookies, crackers, fresh bakery and frozen products in U.S. retail, including Milano cookies and Goldfish crackers; and Snyder’s of Hanover pretzels, Lance sandwich crackers, Cape Cod and Kettle Brand potato chips, Late July snacks, Snack Factory Pretzel Crisps, Pop Secret popcorn, Emerald nuts, and other snacking products in the U.S. and Canada. The segment also includes our European chips business. |
2019 | 2018 | 2017 | ||||||||||
Net sales | ||||||||||||
Meals & Beverages | $ | 4,322 | $ | 4,305 | $ | 4,340 | ||||||
Snacks | 3,784 | 2,307 | 1,497 | |||||||||
Corporate | 1 | 3 | — | |||||||||
Total | $ | 8,107 | $ | 6,615 | $ | 5,837 |
2019 | 2018 | 2017 | ||||||||||
Earnings before interest and taxes | ||||||||||||
Meals & Beverages | $ | 903 | $ | 988 | $ | 1,118 | ||||||
Snacks | 514 | 383 | 310 | |||||||||
Corporate(1) | (407 | ) | (306 | ) | 14 | |||||||
Restructuring charges(2) | (31 | ) | (55 | ) | (11 | ) | ||||||
Total | $ | 979 | $ | 1,010 | $ | 1,431 |
2019 | 2018 | 2017 | ||||||||||
Depreciation and amortization | ||||||||||||
Meals & Beverages | $ | 162 | $ | 158 | $ | 118 | ||||||
Snacks | 184 | 102 | 56 | |||||||||
Corporate(3) | 17 | 19 | 19 | |||||||||
Discontinued operations | 83 | 115 | 125 | |||||||||
Total | $ | 446 | $ | 394 | $ | 318 |
2019 | 2018 | 2017 | ||||||||||
Capital expenditures | ||||||||||||
Meals & Beverages | $ | 156 | $ | 187 | $ | 117 | ||||||
Snacks | 134 | 91 | 75 | |||||||||
Corporate(3) | 35 | 41 | 47 | |||||||||
Discontinued operations | 59 | 88 | 99 | |||||||||
Total | $ | 384 | $ | 407 | $ | 338 |
(1) | Represents unallocated items. Pension and postretirement benefit settlement and mark-to-market adjustments are included in Corporate. There were settlement charges of $28 and losses of $122 in 2019, gains of $131 and $156 in 2018 and 2017, respectively. Costs related to the cost savings initiatives were $90, $135 and $37 in 2019, 2018 and 2017, respectively. Transaction and integration costs associated with the acquisition of Snyder's-Lance were $107 in 2018. Intangible asset impairment charges were $16 in 2019 and $54 in 2018. A charge of $22 related to the settlement of a legal claim was included in 2018. |
(2) | See Note 8 for additional information. |
(3) | Represents primarily corporate offices. |
2019 | 2018 | 2017 | ||||||||||
Net sales | ||||||||||||
Soup | $ | 2,368 | $ | 2,355 | $ | 2,407 | ||||||
Snacks | 3,918 | 2,438 | 1,619 | |||||||||
Other simple meals | 1,082 | 1,108 | 1,118 | |||||||||
Beverages | 738 | 711 | 693 | |||||||||
Other | 1 | 3 | — | |||||||||
Total | $ | 8,107 | $ | 6,615 | $ | 5,837 |
2019 | 2018 | 2017 | ||||||||||
Net sales | ||||||||||||
United States | $ | 7,492 | $ | 6,068 | $ | 5,371 | ||||||
Other countries | 615 | 547 | 466 | |||||||||
Total | $ | 8,107 | $ | 6,615 | $ | 5,837 |
2019 | 2018 | 2017 | ||||||||||
Long-lived assets | ||||||||||||
United States | $ | 2,400 | $ | 2,363 | $ | 1,547 | ||||||
Other countries | 55 | 103 | 97 | |||||||||
Total | $ | 2,455 | $ | 2,466 | $ | 1,644 |
2019 | 2018 | ||||||
Accounts receivable | |||||||
Customer accounts receivable | $ | 538 | $ | 528 | |||
Allowances | (13 | ) | (18 | ) | |||
Subtotal | $ | 525 | $ | 510 | |||
Other | 49 | 53 | |||||
$ | 574 | $ | 563 | ||||
Inventories | |||||||
Raw materials, containers and supplies | $ | 271 | $ | 312 | |||
Finished products | 592 | 575 | |||||
$ | 863 | $ | 887 | ||||
Plant assets | |||||||
Land | $ | 83 | $ | 82 | |||
Buildings | 1,474 | 1,439 | |||||
Machinery and equipment | 3,473 | 3,554 | |||||
Projects in progress | 185 | 164 | |||||
Total cost | $ | 5,215 | $ | 5,239 | |||
Accumulated depreciation(1) | (2,760 | ) | (2,773 | ) | |||
$ | 2,455 | $ | 2,466 | ||||
Other assets | |||||||
Investments | $ | 77 | $ | 92 | |||
Deferred taxes | 2 | 2 | |||||
Pensions | 21 | 61 | |||||
Other | 27 | 34 | |||||
$ | 127 | $ | 189 |
2019 | 2018 | ||||||
Accrued liabilities | |||||||
Accrued compensation and benefits | $ | 234 | $ | 162 | |||
Fair value of derivatives | 8 | 3 | |||||
Accrued trade and consumer promotion programs | 135 | 130 | |||||
Accrued interest | 97 | 102 | |||||
Restructuring | 29 | 19 | |||||
Other | 106 | 100 | |||||
$ | 609 | $ | 516 | ||||
Other liabilities | |||||||
Pension benefits | $ | 179 | $ | 141 | |||
Deferred compensation | 79 | 90 | |||||
Postretirement benefits | 210 | 206 | |||||
Transition tax on unremitted foreign earnings | — | 7 | |||||
Unrecognized tax benefits | 19 | 22 | |||||
Restructuring | 8 | 24 | |||||
Other | 64 | 57 | |||||
$ | 559 | $ | 547 |
(1) | Depreciation expense was $389 in 2019, $360 in 2018 and $299 in 2017. Depreciation expense of continuing operations was $315 in 2019, $259 in 2018 and $192 in 2017. 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. |