(X)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2011.
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( )
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM __________ TO ____________.
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Missouri
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43-1766315
|
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(State of Incorporation)
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(I.R.S. Employer
|
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Identification No.)
|
||
800 Market Street, Suite 2900
|
||
St. Louis, MO
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63101
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(Address of principal
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(Zip Code)
|
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Executive offices)
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Large accelerated filer (X)
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Accelerated filer ( )
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Non-accelerated filer ( )
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Smaller reporting company ( )
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PAGE
|
|||
PART I.
|
FINANCIAL INFORMATION
|
||
Item 1.
|
Financial Statements
|
||
Condensed Consolidated Statements of Earnings
|
1
|
||
Condensed Consolidated Statements of Comprehensive Income
|
1
|
||
Condensed Consolidated Balance Sheets
|
2
|
||
Condensed Consolidated Statements of Cash Flows
|
3
|
||
Notes to Condensed Consolidated Financial Statements
|
4
|
||
Item 2.
|
Management’s Discussion and Analysis of Financial
|
||
Condition and Results of Operations
|
20
|
||
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
30
|
|
Item 4.
|
Controls and Procedures
|
30
|
|
PART II.
|
OTHER INFORMATION
|
||
Item 1.
|
Legal Proceedings
|
31
|
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
31
|
|
Item 6.
|
Exhibits
|
31
|
|
SIGNATURES
|
31
|
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PART I — FINANCIAL INFORMATION
|
Item 1.
|
Financial Statements.
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net Sales
|
$ | 1,172.6 | $ | 965.0 | $ | 2,345.9 | $ | 1,956.9 | ||||||||
Cost of goods sold
|
(832.6 | ) | (698.6 | ) | (1,687.9 | ) | (1,417.7 | ) | ||||||||
Gross Profit
|
340.0 | 266.4 | 658.0 | 539.2 | ||||||||||||
Selling, general and administrative expenses
|
(155.8 | ) | (133.9 | ) | (303.3 | ) | (262.4 | ) | ||||||||
Amortization of intangible assets
|
(19.4 | ) | (11.3 | ) | (38.9 | ) | (22.6 | ) | ||||||||
Impairment of intangible assets
|
- | (20.5 | ) | - | (20.5 | ) | ||||||||||
Other operating expenses, net
|
(.7 | ) | (3.0 | ) | (4.6 | ) | (3.9 | ) | ||||||||
Operating Profit
|
164.1 | 97.7 | 311.2 | 229.8 | ||||||||||||
Interest expense, net
|
(33.8 | ) | (23.9 | ) | (69.5 | ) | (50.4 | ) | ||||||||
Earnings before Income Taxes
|
130.3 | 73.8 | 241.7 | 179.4 | ||||||||||||
Income taxes
|
(47.0 | ) | (27.1 | ) | (87.1 | ) | (65.5 | ) | ||||||||
Net Earnings
|
$ | 83.3 | $ | 46.7 | $ | 154.6 | $ | 113.9 | ||||||||
Earnings per Share
|
||||||||||||||||
Basic
|
$ | 1.52 | $ | .85 | $ | 2.82 | $ | 2.06 | ||||||||
Diluted
|
$ | 1.50 | $ | .84 | $ | 2.78 | $ | 2.03 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net Earnings
|
$ | 83.3 | $ | 46.7 | $ | 154.6 | $ | 113.9 | ||||||||
Other comprehensive income
|
10.1 | 1.3 | 34.1 | 14.4 | ||||||||||||
Comprehensive Income
|
$ | 93.4 | $ | 48.0 | $ | 188.7 | $ | 128.3 |
|
Mar. 31,
|
Sept. 30,
|
||||||
2011
|
2010
|
|||||||
Assets
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$ | 41.4 | $ | 29.3 | ||||
Marketable securities
|
10.0 | 10.0 | ||||||
Investment in Ralcorp Receivables Corporation
|
- | 137.8 | ||||||
Receivables, net
|
349.2 | 233.4 | ||||||
Inventories
|
469.3 | 425.1 | ||||||
Deferred income taxes
|
4.0 | 10.6 | ||||||
Prepaid expenses and other current assets
|
34.5 | 30.8 | ||||||
Total Current Assets
|
908.4 | 877.0 | ||||||
Property, Net
|
1,204.8 | 1,219.0 | ||||||
Goodwill
|
2,952.1 | 2,945.7 | ||||||
Other Intangible Assets, Net
|
1,692.7 | 1,727.0 | ||||||
Other Assets
|
38.6 | 36.2 | ||||||
Total Assets
|
$ | 6,796.6 | $ | 6,804.9 | ||||
Liabilities and Shareholders' Equity
|
||||||||
Current Liabilities
|
||||||||
Accounts and notes payable
|
$ | 519.6 | $ | 279.5 | ||||
Other current liabilities
|
185.5 | 347.6 | ||||||
Total Current Liabilities
|
705.1 | 627.1 | ||||||
Long-term Debt
|
2,184.3 | 2,464.9 | ||||||
Deferred Income Taxes
|
661.5 | 685.1 | ||||||
Other Liabilities
|
217.2 | 198.6 | ||||||
Total Liabilities
|
3,768.1 | 3,975.7 | ||||||
Shareholders' Equity
|
||||||||
Common stock
|
.6 | .6 | ||||||
Additional paid-in capital
|
1,951.4 | 1,945.2 | ||||||
Common stock in treasury, at cost
|
(344.4 | ) | (348.8 | ) | ||||
Retained earnings
|
1,422.7 | 1,268.1 | ||||||
Accumulated other comprehensive loss
|
(1.8 | ) | (35.9 | ) | ||||
Total Shareholders' Equity
|
3,028.5 | 2,829.2 | ||||||
Total Liabilities and Shareholders' Equity
|
$ | 6,796.6 | $ | 6,804.9 |
Six Months Ended
|
||||||||
March 31,
|
||||||||
2011
|
2010
|
|||||||
Cash Flows from Operating Activities
|
||||||||
Net earnings
|
$ | 154.6 | $ | 113.9 | ||||
Adjustments to reconcile net earnings to net
|
||||||||
cash flow provided by operating activities:
|
||||||||
Depreciation and amortization
|
113.0 | 77.4 | ||||||
Impairment of intangible assets
|
- | 20.5 | ||||||
Stock-based compensation expense
|
7.9 | 9.5 | ||||||
Deferred income taxes
|
(23.4 | ) | (19.8 | ) | ||||
Other, net
|
(25.3 | ) | (41.0 | ) | ||||
Net Cash Provided by Operating Activities
|
226.8 | 160.5 | ||||||
Cash Flows from Investing Activities
|
||||||||
Additions to property and intangible assets
|
(51.8 | ) | (57.2 | ) | ||||
Proceeds from sale of property
|
.1 | .5 | ||||||
Purchases of securities
|
(10.0 | ) | (12.8 | ) | ||||
Proceeds from sale or maturity of securities
|
10.0 | 14.8 | ||||||
Net Cash Used by Investing Activities
|
(51.7 | ) | (54.7 | ) | ||||
Cash Flows from Financing Activities
|
||||||||
Repayments of long-term debt
|
(44.7 | ) | (95.3 | ) | ||||
Net repayments under credit arrangements
|
(116.8 | ) | - | |||||
Purchases of treasury stock
|
(.6 | ) | (115.5 | ) | ||||
Proceeds and tax benefits from exercise of stock awards
|
4.9 | 7.8 | ||||||
Changes in book cash overdrafts
|
(7.0 | ) | (23.4 | ) | ||||
Other, net
|
(.1 | ) | (.1 | ) | ||||
Net Cash Used by Financing Activities
|
(164.3 | ) | (226.5 | ) | ||||
Effect of Exchange Rate Changes on Cash
|
1.3 | 1.0 | ||||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
12.1 | (119.7 | ) | |||||
Cash and Cash Equivalents, Beginning of Period
|
29.3 | 282.8 | ||||||
Cash and Cash Equivalents, End of Period
|
$ | 41.4 | $ | 163.1 |
Acquisition
|
Adjustments
|
Acquisition
|
||||||||||
Date Amounts
|
During the
|
Date Amounts
|
||||||||||
Recognized as of
|
Six Months Ended
|
Recognized
|
||||||||||
September 30, 2010 (a)
|
March 31, 2011
|
(as Adjusted)
|
||||||||||
Cash
|
$ | 41.1 | $ | - | $ | 41.1 | ||||||
Receivables (b)
|
53.7 | .7 | 54.4 | |||||||||
Inventories (c)
|
55.6 | (.2 | ) | 55.4 | ||||||||
Other current assets (b)
|
22.2 | (.2 | ) | 21.9 | ||||||||
Property (d)
|
306.1 | 1.6 | 307.7 | |||||||||
Goodwill
|
577.4 | .2 | 577.6 | |||||||||
Other intangible assets (c)
|
612.9 | (2.0 | ) | 610.9 | ||||||||
Other assets
|
.6 | - | .6 | |||||||||
Total assets acquired
|
1,669.6 | - | 1,669.6 | |||||||||
Accounts payable
|
(35.6 | ) | - | (35.5 | ) | |||||||
Other current liabilities (b)
|
(31.1 | ) | (.1 | ) | (31.2 | ) | ||||||
Deferred income taxes
|
(243.1 | ) | - | (243.1 | ) | |||||||
Other liabilities
|
(6.2 | ) | - | (6.2 | ) | |||||||
Total liabilities assumed
|
(316.0 | ) | - | (316.0 | ) | |||||||
Net assets acquired
|
$ | 1,353.6 | $ | - | $ | 1,353.6 |
(a)
|
As previously reported in Ralcorp’s 2010 Annual Report on Form 10-K.
|
(b)
|
The adjustments to “Receivables”, “Other current assets”, and “Other current liabilities” reflect the identification and adjustment of unrecorded AIPC and Sepp’s Gourmet Foods assets or liabilities at the acquisition date.
|
(c)
|
The adjustments to “Inventories” and “Other intangible assets” reflects changes in the estimated fair value of AIPC’s inventories and customer relationships based on the valuation analyses finalized late in the first quarter of fiscal 2011.
|
(d)
|
The adjustments to “Property” reflect changes in the estimated fair values for AIPC (increase of $1.5) and Sepp’s Gourmet Foods (increase of $.1) based on the analyses finalized late in the first quarter of fiscal 2011.
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net sales
|
$ | 1,172.6 | $ | 1,138.0 | $ | 2,345.9 | $ | 2,316.7 | ||||||||
Net earnings
|
83.8 | 59.6 | 155.3 | 143.7 | ||||||||||||
Basic earnings per share
|
1.53 | 1.09 | 2.83 | 2.59 | ||||||||||||
Diluted earnings per share
|
1.51 | 1.07 | 2.79 | 2.56 |
Branded
|
Other
|
Snacks,
|
Frozen
|
|||||||||||||||||||||
Cereal
|
Cereal
|
Sauces
|
Bakery
|
|||||||||||||||||||||
Products
|
Products
|
& Spreads
|
Products
|
Pasta
|
Total
|
|||||||||||||||||||
Balance, September 30, 2010
|
||||||||||||||||||||||||
Goodwill (gross)
|
$ | 1,794.1 | $ | 47.2 | $ | 293.5 | $ | 367.7 | $ | 522.7 | $ | 3,025.2 | ||||||||||||
Accumulated impairment losses
|
- | - | (79.5 | ) | - | - | (79.5 | ) | ||||||||||||||||
Goodwill (net)
|
$ | 1,794.1 | $ | 47.2 | $ | 214.0 | $ | 367.7 | $ | 522.7 | $ | 2,945.7 | ||||||||||||
Purchase price allocation adjust.
|
- | - | - | .1 | .1 | .2 | ||||||||||||||||||
Currency translation adjustment
|
.4 | - | 2.5 | 3.3 | - | 6.2 | ||||||||||||||||||
Balance, March 31, 2011
|
||||||||||||||||||||||||
Goodwill (gross)
|
$ | 1,794.5 | $ | 47.2 | $ | 296.0 | $ | 371.1 | $ | 522.8 | $ | 3,031.6 | ||||||||||||
Accumulated impairment losses
|
- | - | (79.5 | ) | - | - | (79.5 | ) | ||||||||||||||||
Goodwill (net)
|
$ | 1,794.5 | $ | 47.2 | $ | 216.5 | $ | 371.1 | $ | 522.8 | $ | 2,952.1 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Pension Benefits
|
||||||||||||||||
Service cost
|
$ | 1.3 | $ | 1.6 | $ | 2.7 | $ | 3.3 | ||||||||
Interest cost
|
3.0 | 3.3 | 6.1 | 6.6 | ||||||||||||
Expected return on plan assets
|
(4.6 | ) | (4.0 | ) | (9.3 | ) | (8.0 | ) | ||||||||
Amortization of prior service cost
|
.1 | .1 | .2 | .2 | ||||||||||||
Amortization of net loss
|
1.2 | 1.0 | 2.4 | 1.9 | ||||||||||||
Net periodic benefit cost
|
$ | 1.0 | $ | 2.0 | $ | 2.1 | $ | 4.0 | ||||||||
Other Postretirement Benefits
|
||||||||||||||||
Service cost
|
$ | .6 | $ | .8 | $ | 1.2 | $ | 1.5 | ||||||||
Interest cost
|
1.3 | 1.3 | 2.6 | 2.6 | ||||||||||||
Amortization of prior service cost
|
(.3 | ) | (.4 | ) | (.6 | ) | (.7 | ) | ||||||||
Amortization of net loss
|
.1 | - | .1 | - | ||||||||||||
Net periodic benefit cost
|
$ | 1.7 | $ | 1.7 | $ | 3.3 | $ | 3.4 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Weighted Average Shares
|
||||||||||||||||
for Basic Earnings per Share
|
54,769 | 54,541 | 54,736 | 55,232 | ||||||||||||
Dilutive effect of:
|
||||||||||||||||
Stock options
|
244 | 333 | 255 | 340 | ||||||||||||
Stock appreciation rights
|
246 | 439 | 234 | 291 | ||||||||||||
Restricted stock awards
|
249 | 184 | 239 | 167 | ||||||||||||
Weighted Average Shares
|
||||||||||||||||
for Diluted Earnings per Share
|
55,508 | 55,497 | 55,464 | 56,030 |
Six Months Ended
|
Six Months Ended
|
|||||||||||||||
March 31, 2011
|
March 31, 2010
|
|||||||||||||||
First
|
Second
|
First
|
Second
|
|||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||||
SARs at $56.56 per share
|
- | - | 405 | - | ||||||||||||
SARs at $66.07 per share
|
504 | 497 | 504 | 504 | ||||||||||||
SARs at $65.45 per share
|
- | - | 25 | - | ||||||||||||
SARs at $58.79 per share
|
8 | - | 8 | 8 | ||||||||||||
SARs at $56.27 per share
|
372 | - | 390 | 390 | ||||||||||||
SARs at $57.14 per share
|
13 | 13 | 13 | 13 | ||||||||||||
SARs at $57.45 per share
|
536 | 536 | - | - | ||||||||||||
SARs at $61.98 per share
|
6 | 6 | - | - | ||||||||||||
SARs at $62.03 per share
|
- | 3 | - | - | ||||||||||||
SARs at $61.95 per share
|
- | 6 | - | - |
Mar. 31,
|
Dec. 31,
|
Sept. 30,
|
||||||||||
2011
|
2010
|
2010
|
||||||||||
Raw materials (thousands of pounds)
|
656,779 | 714,529 | 679,393 | |||||||||
Natural gas (thousands of MMBTUs)
|
5,130 | 2,075 | 3,200 | |||||||||
Other fuel (thousands of gallons)
|
6,445 | 5,668 | 8,001 | |||||||||
Currency (thousands of dollars)
|
22,900 | 43,700 | 69,450 |
Fair Value
|
|||||||||
Mar. 31,
|
Sept. 30,
|
||||||||
2011
|
2010
|
Balance Sheet Location
|
|||||||
Asset Derivatives
|
|||||||||
Foreign exchange contracts
|
$ | 2.1 | $ | .9 |
Prepaid expenses and other current assets
|
||||
Commodity contracts
|
12.2 | 15.8 |
Prepaid expenses and other current assets
|
||||||
$ | 14.3 | $ | 16.7 | ||||||
Liability Derivatives
|
|||||||||
Commodity contracts
|
$ | 1.3 | $ | 2.6 |
Other current liabilities
|
Gain (Loss)
|
|||||||||||||||||||||||||
Gain (Loss)
|
Recognized in
|
||||||||||||||||||||||||
Amount of Gain
|
Reclassified from
|
Earnings [Ineffective
|
|||||||||||||||||||||||
(Loss) Recognized
|
Accumulated OCI
|
Portion and Amount
|
|||||||||||||||||||||||
Derivatives in
|
in OCI
|
into Earnings
|
Excluded from
|
||||||||||||||||||||||
ASC Topic 815 Cash Flow
|
[Effective Portion]
|
[Effective Portion]
|
Effectiveness Testing]
|
||||||||||||||||||||||
Hedging Relationships
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
Location in Earnings
|
||||||||||||||||||
Commodity contracts
|
$ | 8.4 | $ | (9.1 | ) | $ | 8.8 | $ | (2.7 | ) | $ | .1 | $ | - |
Cost of goods sold
|
||||||||||
Foreign exchange contracts
|
.7 | .2 | 1.4 | 1.9 | - | - |
SG&A expenses
|
||||||||||||||||||
Interest rate contracts
|
- | - | (.4 | ) | - | - | - |
Interest expense, net
|
|||||||||||||||||
$ | 9.1 | $ | (8.9 | ) | $ | 9.8 | $ | (.8 | ) | $ | .1 | $ | - |
Derivatives Not Designated
|
Amount of Gain (Loss)
|
||||||||
as Hedging Instruments
|
Recognized in Earnings
|
Location of Gain (Loss)
|
|||||||
Under ASC Topic 815
|
2011
|
2010
|
Recognized in Earnings
|
||||||
Commodity contracts
|
$ | 6.0 | $ | - |
Cost of goods sold
|
Gain (Loss)
|
|||||||||||||||||||||||||
Gain (Loss)
|
Recognized in
|
||||||||||||||||||||||||
Amount of Gain
|
Reclassified from
|
Earnings [Ineffective
|
|||||||||||||||||||||||
(Loss) Recognized
|
Accumulated OCI
|
Portion and Amount
|
|||||||||||||||||||||||
Derivatives in
|
in OCI
|
into Earnings
|
Excluded from
|
||||||||||||||||||||||
ASC Topic 815 Cash Flow
|
[Effective Portion]
|
[Effective Portion]
|
Effectiveness Testing]
|
||||||||||||||||||||||
Hedging Relationships
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
Location in Earnings
|
||||||||||||||||||
Commodity contracts
|
$ | 27.6 | $ | .4 | $ | 9.1 | $ | (8.2 | ) | $ | - | $ | (.2 | ) |
Cost of goods sold
|
||||||||||
Foreign exchange contracts
|
2.5 | .9 | 2.1 | 4.0 | - | - |
SG&A expenses
|
||||||||||||||||||
Interest rate contracts
|
- | - | (.8 | ) | (1.0 | ) | - | - |
Interest expense, net
|
||||||||||||||||
$ | 30.1 | $ | 1.3 | $ | 10.4 | $ | (5.2 | ) | $ | - | $ | (.2 | ) |
Derivatives in
|
Amount of Gain (Loss)
|
||||||||
ASC Topic 815 Fair Value
|
Recognized in Earnings
|
Location of Gain (Loss)
|
|||||||
Hedging Relationships
|
2011
|
2010
|
Recognized in Earnings
|
||||||
Commodity contracts
|
$ | (.1 | ) | $ | - |
Cost of goods sold
|
|||
Derivatives Not Designated
|
Amount of Gain (Loss)
|
||||||||
as Hedging Instruments
|
Recognized in Earnings
|
Location of Gain (Loss)
|
|||||||
Under ASC Topic 815
|
2011
|
2010
|
Recognized in Earnings
|
||||||
Commodity contracts
|
$ | 10.8 | $ | - |
Cost of goods sold
|
March 31, 2011
|
September 30, 2010
|
|||||||||||||||||||||||
Total
|
Level 1
|
Level 2
|
Total
|
Level 1
|
Level 2
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Marketable securities
|
$ | 10.0 | $ | 10.0 | $ | - | $ | 10.0 | $ | 10.0 | $ | - | ||||||||||||
Derivative assets
|
14.3 | - | 14.3 | 16.7 | - | 16.7 | ||||||||||||||||||
Deferred compensation investment
|
25.8 | 25.8 | - | 22.2 | 22.2 | - | ||||||||||||||||||
$ | 50.1 | $ | 35.8 | $ | 14.3 | $ | 48.9 | $ | 32.2 | $ | 16.7 | |||||||||||||
Liabilities
|
||||||||||||||||||||||||
Derivative liabilities
|
$ | 1.3 | $ | - | $ | 1.3 | $ | 2.6 | $ | - | $ | 2.6 | ||||||||||||
Deferred compensation liabilities
|
36.7 | - | 36.7 | 31.2 | - | 31.2 | ||||||||||||||||||
$ | 38.0 | $ | - | $ | 38.0 | $ | 33.8 | $ | - | $ | 33.8 |
Level 1 –
|
Inputs are quoted prices in active markets for identical assets or liabilities.
|
Level 2 –
|
Inputs are quoted prices of similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data.
|
Level 3 –
|
Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable.
|
Mar. 31,
|
Sept. 30,
|
|||||||
2011
|
2010
|
|||||||
Raw materials and supplies
|
$ | 179.6 | $ | 172.4 | ||||
Finished products
|
289.7 | 252.7 | ||||||
$ | 469.3 | $ | 425.1 |
Mar. 31,
|
Sept. 30,
|
|||||||
2011
|
2010
|
|||||||
Property at cost
|
$ | 1,919.8 | $ | 1,858.5 | ||||
Accumulated depreciation
|
(715.0 | ) | (639.5 | ) | ||||
$ | 1,204.8 | $ | 1,219.0 |
Mar. 31,
|
Sept. 30,
|
|||||||
2011
|
2010
|
|||||||
Computer software
|
$ | 68.9 | $ | 66.0 | ||||
Customer relationships
|
842.6 | 840.1 | ||||||
Trademarks/brands
|
989.6 | 989.6 | ||||||
Other
|
13.1 | 13.1 | ||||||
1,914.2 | 1,908.8 | |||||||
Accumulated amortization
|
(221.5 | ) | (181.8 | ) | ||||
$ | 1,692.7 | $ | 1,727.0 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Computer software
|
$ | 1.8 | $ | 2.1 | $ | 3.6 | $ | 4.0 | ||||||||
Customer relationships
|
15.3 | 7.1 | 30.7 | 14.3 | ||||||||||||
Trademarks/brands
|
1.8 | 1.6 | 3.6 | 3.3 | ||||||||||||
Other
|
.5 | .5 | 1.0 | 1.0 | ||||||||||||
$ | 19.4 | $ | 11.4 | $ | 38.9 | $ | 22.7 |
March 31, 2011
|
September 30, 2010
|
|||||||||||||||
Balance
|
Rate
|
Balance
|
Rate
|
|||||||||||||
Fixed Rate Senior Notes, Series B
|
$ | - | n/a | $ | 29.0 | 4.24% | ||||||||||
Fixed Rate Senior Notes, Series C
|
50.0 |
5.43%
|
50.0 | 5.43% | ||||||||||||
Fixed Rate Senior Notes, Series D
|
32.1 | 4.76% | 42.9 | 4.76% | ||||||||||||
Fixed Rate Senior Notes, Series E
|
100.0 | 5.57% | 100.0 | 5.57% | ||||||||||||
Fixed Rate Senior Notes, Series F
|
75.0 | 5.43% | 75.0 | 5.43% | ||||||||||||
Fixed Rate Senior Notes, Series I-1
|
75.0 | 5.56% | 75.0 | 5.56% | ||||||||||||
Fixed Rate Senior Notes, Series I-2
|
25.0 | 5.58% | 25.0 | 5.58% | ||||||||||||
Fixed Rate Senior Notes, Series J
|
100.0 | 5.93% | 100.0 | 5.93% | ||||||||||||
Fixed Rate Senior Notes maturing 2018
|
577.5 | 7.29% | 577.5 | 7.29% | ||||||||||||
Floating Rate Senior Notes maturing 2018
|
20.0 | 2.85% | 20.0 | 2.98% | ||||||||||||
Fixed Rate Senior Notes maturing 2020
|
67.0 | 7.39% | 67.0 | 7.39% | ||||||||||||
4.95% Senior Notes maturing 2020
|
300.0 | 4.95% | 300.0 | 4.95% | ||||||||||||
Fixed Rate Senior Notes maturing 2039
|
450.0 | 6.63% | 450.0 | 6.63% | ||||||||||||
Fixed Rate Senior Notes, Series 2009A
|
50.0 | 7.45% | 50.0 | 7.45% | ||||||||||||
Fixed Rate Senior Notes, Series 2009B
|
50.0 | 7.60% | 50.0 | 7.60% | ||||||||||||
2008 Revolving Credit Agreement
|
- | n/a | 123.4 | 1.30% | ||||||||||||
2010 Revolving Credit Agreement
|
37.7 | 2.71% | 300.0 | 2.81% | ||||||||||||
2010 Term Loan
|
195.0 | 2.75% | 200.0 | 2.81% | ||||||||||||
Other
|
- | n/a | .1 |
Various
|
||||||||||||
2,204.3 | 2,634.9 | |||||||||||||||
Plus: Unamortized premium (discount), net
|
3.2 | 3.2 | ||||||||||||||
Less: Current portion
|
(23.2 | ) | (173.2 | ) | ||||||||||||
$ | 2,184.3 | $ | 2,464.9 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net Sales
|
||||||||||||||||
Branded Cereal Products
|
$ | 255.3 | $ | 260.6 | $ | 476.9 | $ | 506.5 | ||||||||
Other Cereal Products
|
198.9 | 193.3 | 403.6 | 388.2 | ||||||||||||
Snacks, Sauces & Spreads
|
382.2 | 338.2 | 799.6 | 707.5 | ||||||||||||
Frozen Bakery Products
|
192.7 | 172.9 | 386.4 | 354.7 | ||||||||||||
Pasta
|
143.5 | - | 279.4 | - | ||||||||||||
Total
|
$ | 1,172.6 | $ | 965.0 | $ | 2,345.9 | $ | 1,956.9 | ||||||||
Segment Profit
|
||||||||||||||||
Branded Cereal Products
|
$ | 56.9 | $ | 55.0 | $ | 106.6 | $ | 104.1 | ||||||||
Other Cereal Products
|
21.3 | 22.0 | 42.5 | 46.2 | ||||||||||||
Snacks, Sauces & Spreads
|
33.3 | 40.5 | 70.7 | 88.0 | ||||||||||||
Frozen Bakery Products
|
22.9 | 18.2 | 45.9 | 44.6 | ||||||||||||
Pasta
|
36.6 | - | 64.8 | - | ||||||||||||
Total segment profit
|
171.0 | 135.7 | 330.5 | 282.9 | ||||||||||||
Interest expense, net
|
(33.8 | ) | (23.9 | ) | (69.5 | ) | (50.4 | ) | ||||||||
Provision for legal settlement
|
- | - | (2.5 | ) | - | |||||||||||
Adjustments for economic hedges
|
6.0 | - | 10.8 | - | ||||||||||||
Merger and integration costs
|
(.1 | ) | (4.5 | ) | (.3 | ) | (5.1 | ) | ||||||||
Amounts related to plant closures
|
(.2 | ) | (.1 | ) | (.4 | ) | (.8 | ) | ||||||||
Impairment of intangible assets
|
- | (20.5 | ) | - | (20.5 | ) | ||||||||||
Stock-based compensation expense
|
(4.1 | ) | (4.5 | ) | (7.9 | ) | (9.5 | ) | ||||||||
Systems upgrade and conversion costs
|
(1.5 | ) | (1.4 | ) | (3.9 | ) | (2.7 | ) | ||||||||
Other unallocated corporate expenses
|
(7.0 | ) | (7.0 | ) | (15.1 | ) | (14.5 | ) | ||||||||
Earnings before income taxes
|
$ | 130.3 | $ | 73.8 | $ | 241.7 | $ | 179.4 | ||||||||
Depreciation and Amortization
|
||||||||||||||||
Branded Cereal Products
|
$ | 14.4 | $ | 13.8 | $ | 29.1 | $ | 27.4 | ||||||||
Other Cereal Products
|
6.6 | 5.3 | 13.4 | 10.5 | ||||||||||||
Snacks, Sauces & Spreads
|
10.2 | 8.4 | 20.5 | 16.9 | ||||||||||||
Frozen Bakery Products
|
9.7 | 9.0 | 19.7 | 17.7 | ||||||||||||
Pasta
|
13.1 | - | 26.3 | - | ||||||||||||
Corporate
|
2.1 | 2.5 | 4.0 | 4.9 | ||||||||||||
Total
|
$ | 56.1 | $ | 39.0 | $ | 113.0 | $ | 77.4 | ||||||||
Mar. 31,
|
Sept. 30,
|
|||||||||||||||
2011 | 2010 | |||||||||||||||
Assets
|
||||||||||||||||
Branded Cereal Products
|
$ | 3,218.6 | $ | 3,271.3 | ||||||||||||
Other Cereal Products
|
266.8 | 268.7 | ||||||||||||||
Snacks, Sauces & Spreads
|
756.1 | 760.0 | ||||||||||||||
Frozen Bakery Products
|
731.6 | 743.4 | ||||||||||||||
Pasta
|
1,456.3 | 1,456.6 | ||||||||||||||
Total segment assets
|
6,429.4 | 6,500.0 | ||||||||||||||
Cash and cash equivalents
|
41.4 | 29.3 | ||||||||||||||
Investment in Ralcorp Receivables Corporation
|
- | 137.8 | ||||||||||||||
Other unallocated corporate assets
|
325.8 | 137.8 | ||||||||||||||
Total
|
$ | 6,796.6 | $ | 6,804.9 |
Three Months Ended March 31, 2011
|
||||||||||||||||||||
Parent
|
Guarantor
|
Non-Guarantor
|
||||||||||||||||||
Company
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
Net Sales
|
$ | 124.0 | $ | 995.5 | $ | 85.1 | $ | (32.0 | ) | $ | 1,172.6 | |||||||||
Other intercompany revenues
|
.4 | 2.9 | 12.2 | (15.5 | ) | - | ||||||||||||||
Cost of goods sold
|
(83.8 | ) | (705.4 | ) | (75.4 | ) | 32.0 | (832.6 | ) | |||||||||||
Gross Profit
|
40.6 | 293.0 | 21.9 | (15.5 | ) | 340.0 | ||||||||||||||
Selling, general and administrative expenses
|
(30.6 | ) | (122.8 | ) | (17.9 | ) | 15.5 | (155.8 | ) | |||||||||||
Amortization of intangible assets
|
(1.4 | ) | (16.6 | ) | (1.4 | ) | - | (19.4 | ) | |||||||||||
Other operating expenses, net
|
(.3 | ) | (.4 | ) | - | - | (.7 | ) | ||||||||||||
Operating Profit
|
8.3 | 153.2 | 2.6 | - | 164.1 | |||||||||||||||
Interest (expense) income, net
|
(34.2 | ) | .9 | 1.3 | - | (33.8 | ) | |||||||||||||
Earnings before Income Taxes and Equity Earnings
|
(25.9 | ) | 152.3 | 3.9 | - | 130.3 | ||||||||||||||
Income taxes
|
9.3 | (55.0 | ) | (1.3 | ) | - | (47.0 | ) | ||||||||||||
Earnings before Equity Earnings
|
(16.6 | ) | 97.3 | 2.6 | - | 83.3 | ||||||||||||||
Equity in earnings of subsidiaries
|
99.9 | (1.0 | ) | - | (98.9 | ) | - | |||||||||||||
Net Earnings
|
$ | 83.3 | $ | 96.3 | $ | 2.6 | $ | (98.9 | ) | $ | 83.3 |
Three Months Ended March 31, 2010
|
||||||||||||||||||||
Parent
|
Guarantor
|
Non-Guarantor
|
||||||||||||||||||
Company
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
Net Sales
|
$ | 127.8 | $ | 824.9 | $ | 43.4 | $ | (31.1 | ) | $ | 965.0 | |||||||||
Other intercompany revenues
|
.4 | 2.5 | 30.9 | (33.8 | ) | - | ||||||||||||||
Cost of goods sold
|
(91.5 | ) | (598.2 | ) | (40.0 | ) | 31.1 | (698.6 | ) | |||||||||||
Gross Profit
|
36.7 | 229.2 | 34.3 | (33.8 | ) | 266.4 | ||||||||||||||
Selling, general and administrative expenses
|
(33.8 | ) | (110.5 | ) | (23.4 | ) | 33.8 | (133.9 | ) | |||||||||||
Amortization of intangible assets
|
(1.8 | ) | (9.1 | ) | (.4 | ) | - | (11.3 | ) | |||||||||||
Impairment of intangible assets
|
- | (20.5 | ) | - | - | (20.5 | ) | |||||||||||||
Other operating expenses, net
|
(4.6 | ) | 1.6 | - | - | (3.0 | ) | |||||||||||||
Operating Profit
|
(3.5 | ) | 90.7 | 10.5 | - | 97.7 | ||||||||||||||
Interest (expense) income, net
|
(24.5 | ) | .2 | .4 | - | (23.9 | ) | |||||||||||||
Earnings before Income Taxes and Equity Earnings
|
(28.0 | ) | 90.9 | 10.9 | - | 73.8 | ||||||||||||||
Income taxes
|
10.4 | (32.8 | ) | (4.7 | ) | - | (27.1 | ) | ||||||||||||
Earnings before Equity Earnings
|
(17.6 | ) | 58.1 | 6.2 | - | 46.7 | ||||||||||||||
Equity in earnings of subsidiaries
|
64.3 | 1.4 | - | (65.7 | ) | - | ||||||||||||||
Net Earnings
|
$ | 46.7 | $ | 59.5 | $ | 6.2 | $ | (65.7 | ) | $ | 46.7 |
Six Months Ended March 31, 2011
|
||||||||||||||||||||
Parent
|
Guarantor
|
Non-Guarantor
|
||||||||||||||||||
Company
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
Net Sales
|
$ | 258.4 | $ | 1,968.1 | $ | 179.7 | $ | (60.3 | ) | $ | 2,345.9 | |||||||||
Other intercompany revenues
|
.9 | 5.6 | 24.5 | (31.0 | ) | - | ||||||||||||||
Cost of goods sold
|
(179.7 | ) | (1,414.0 | ) | (154.5 | ) | 60.3 | (1,687.9 | ) | |||||||||||
Gross Profit
|
79.6 | 559.7 | 49.7 | (31.0 | ) | 658.0 | ||||||||||||||
Selling, general and administrative expenses
|
(62.1 | ) | (236.2 | ) | (36.0 | ) | 31.0 | (303.3 | ) | |||||||||||
Amortization of intangible assets
|
(2.7 | ) | (33.2 | ) | (3.0 | ) | - | (38.9 | ) | |||||||||||
Other operating expenses, net
|
(.7 | ) | (3.9 | ) | - | - | (4.6 | ) | ||||||||||||
Operating Profit
|
14.1 | 286.4 | 10.7 | - | 311.2 | |||||||||||||||
Interest (expense) income, net
|
(70.3 | ) | (.7 | ) | 1.5 | - | (69.5 | ) | ||||||||||||
Earnings before Income Taxes and Equity Earnings
|
(56.2 | ) | 285.7 | 12.2 | - | 241.7 | ||||||||||||||
Income taxes
|
20.2 | (102.9 | ) | (4.4 | ) | - | (87.1 | ) | ||||||||||||
Earnings before Equity Earnings
|
(36.0 | ) | 182.8 | 7.8 | - | 154.6 | ||||||||||||||
Equity in earnings of subsidiaries
|
190.6 | .6 | - | (191.2 | ) | - | ||||||||||||||
Net Earnings
|
$ | 154.6 | $ | 183.4 | $ | 7.8 | $ | (191.2 | ) | $ | 154.6 |
Six Months Ended March 31, 2010
|
||||||||||||||||||||
Parent
|
Guarantor
|
Non-Guarantor
|
||||||||||||||||||
Company
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
Net Sales
|
$ | 263.4 | $ | 1,666.3 | $ | 91.6 | $ | (64.4 | ) | $ | 1,956.9 | |||||||||
Other intercompany revenues
|
.9 | 3.0 | 39.5 | (43.4 | ) | - | ||||||||||||||
Cost of goods sold
|
(190.3 | ) | (1,209.3 | ) | (82.5 | ) | 64.4 | (1,417.7 | ) | |||||||||||
Gross Profit
|
74.0 | 460.0 | 48.6 | (43.4 | ) | 539.2 | ||||||||||||||
Selling, general and administrative expenses
|
(66.8 | ) | (209.5 | ) | (29.5 | ) | 43.4 | (262.4 | ) | |||||||||||
Amortization of intangible assets
|
(3.7 | ) | (18.0 | ) | (.9 | ) | - | (22.6 | ) | |||||||||||
Impairment of intangible assets
|
- | (20.5 | ) | - | - | (20.5 | ) | |||||||||||||
Other operating expenses, net
|
(5.3 | ) | 1.4 | - | - | (3.9 | ) | |||||||||||||
Operating Profit
|
(1.8 | ) | 213.4 | 18.2 | - | 229.8 | ||||||||||||||
Interest (expense) income, net
|
(51.4 | ) | - | 1.0 | - | (50.4 | ) | |||||||||||||
Earnings before Income Taxes and Equity Earnings
|
(53.2 | ) | 213.4 | 19.2 | - | 179.4 | ||||||||||||||
Income taxes
|
19.7 | (78.1 | ) | (7.1 | ) | - | (65.5 | ) | ||||||||||||
Earnings before Equity Earnings
|
(33.5 | ) | 135.3 | 12.1 | - | 113.9 | ||||||||||||||
Equity in earnings of subsidiaries
|
147.4 | 4.1 | - | (151.5 | ) | - | ||||||||||||||
Net Earnings
|
$ | 113.9 | $ | 139.4 | $ | 12.1 | $ | (151.5 | ) | $ | 113.9 |
March 31, 2011
|
||||||||||||||||||||
Parent
|
Guarantor
|
Non-Guarantor
|
||||||||||||||||||
Company
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Current Assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | .4 | $ | .8 | $ | 40.2 | $ | - | $ | 41.4 | ||||||||||
Marketable securities
|
10.0 | - | - | - | 10.0 | |||||||||||||||
Receivables, net
|
49.4 | 45.7 | 256.1 | (2.0 | ) | 349.2 | ||||||||||||||
Inventories
|
66.6 | 374.5 | 28.2 | - | 469.3 | |||||||||||||||
Deferred income taxes
|
- | 13.5 | (.6 | ) | (8.9 | ) | 4.0 | |||||||||||||
Prepaid expenses and other current assets
|
19.1 | 11.8 | 3.6 | - | 34.5 | |||||||||||||||
Total Current Assets
|
145.5 | 446.3 | 327.5 | (10.9 | ) | 908.4 | ||||||||||||||
Intercompany Notes and Interest
|
- | 20.8 | 117.8 | (138.6 | ) | - | ||||||||||||||
Investment in Subsidiaries
|
5,529.0 | 366.0 | - | (5,895.0 | ) | - | ||||||||||||||
Deferred Income Taxes
|
5.5 | - | - | (5.5 | ) | - | ||||||||||||||
Property
|
245.3 | 1,433.4 | 241.1 | - | 1,919.8 | |||||||||||||||
Accumulated Depreciation
|
(171.8 | ) | (493.5 | ) | (49.7 | ) | - | (715.0 | ) | |||||||||||
Goodwill
|
- | 2,844.8 | 107.3 | - | 2,952.1 | |||||||||||||||
Other Intangible Assets
|
60.3 | 1,777.6 | 76.3 | - | 1,914.2 | |||||||||||||||
Accumulated Amortization
|
(37.6 | ) | (169.9 | ) | (14.0 | ) | - | (221.5 | ) | |||||||||||
Other Assets
|
11.8 | 26.7 | .1 | - | 38.6 | |||||||||||||||
Total Assets
|
$ | 5,788.0 | $ | 6,252.2 | $ | 806.4 | $ | (6,050.0 | ) | $ | 6,796.6 | |||||||||
Liabilities and Shareholders' Equity
|
||||||||||||||||||||
Current Liabilities
|
||||||||||||||||||||
Accounts and notes payable
|
$ | 214.1 | $ | 165.2 | $ | 142.3 | $ | (2.0 | ) | $ | 519.6 | |||||||||
Deferred Income Taxes
|
8.9 | - | - | (8.9 | ) | - | ||||||||||||||
Other current liabilities
|
77.3 | 84.0 | 24.2 | - | 185.5 | |||||||||||||||
Total Current Liabilities
|
300.3 | 249.2 | 166.5 | (10.9 | ) | 705.1 | ||||||||||||||
Intercompany Notes and Interest
|
102.7 | 15.1 | 20.8 | (138.6 | ) | - | ||||||||||||||
Long-term Debt
|
2,184.3 | - | - | - | 2,184.3 | |||||||||||||||
Deferred Income Taxes
|
- | 654.1 | 12.9 | (5.5 | ) | 661.5 | ||||||||||||||
Other Liabilities
|
172.2 | 11.0 | 34.0 | - | 217.2 | |||||||||||||||
Total Liabilities
|
2,759.5 | 929.4 | 234.2 | (155.0 | ) | 3,768.1 | ||||||||||||||
Shareholders' Equity
|
||||||||||||||||||||
Common stock
|
.6 | - | - | - | .6 | |||||||||||||||
Other shareholders' equity
|
3,027.9 | 5,322.8 | 572.2 | (5,895.0 | ) | 3,027.9 | ||||||||||||||
Total Shareholders' Equity
|
3,028.5 | 5,322.8 | 572.2 | (5,895.0 | ) | 3,028.5 | ||||||||||||||
Total Liabilities and Shareholders' Equity
|
$ | 5,788.0 | $ | 6,252.2 | $ | 806.4 | $ | (6,050.0 | ) | $ | 6,796.6 |
September 30, 2010
|
||||||||||||||||||||
Parent
|
Guarantor
|
Non-Guarantor
|
||||||||||||||||||
Company
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Current Assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | .6 | $ | .3 | $ | 28.4 | $ | - | $ | 29.3 | ||||||||||
Marketable securities
|
10.0 | - | - | - | 10.0 | |||||||||||||||
Investment in Ralcorp Receivables Corporation
|
180.0 | - | - | (42.2 | ) | 137.8 | ||||||||||||||
Receivables, net
|
18.2 | 182.0 | 173.8 | (140.6 | ) | 233.4 | ||||||||||||||
Inventories
|
67.6 | 329.3 | 28.2 | - | 425.1 | |||||||||||||||
Deferred income taxes
|
2.1 | 9.1 | (.6 | ) | - | 10.6 | ||||||||||||||
Prepaid expenses and other current assets
|
17.4 | 10.0 | 3.4 | - | 30.8 | |||||||||||||||
Total Current Assets
|
295.9 | 530.7 | 233.2 | (182.8 | ) | 877.0 | ||||||||||||||
Intercompany Notes and Interest
|
- | 20.8 | 98.1 | (118.9 | ) | - | ||||||||||||||
Investment in Subsidiaries
|
5,339.1 | 347.2 | - | (5,686.3 | ) | - | ||||||||||||||
Deferred Income Taxes
|
81.0 | - | - | (81.0 | ) | - | ||||||||||||||
Property
|
243.0 | 1,389.3 | 226.2 | - | 1,858.5 | |||||||||||||||
Accumulated Depreciation
|
(165.7 | ) | (436.8 | ) | (37.0 | ) | - | (639.5 | ) | |||||||||||
Goodwill
|
- | 2,844.7 | 101.0 | - | 2,945.7 | |||||||||||||||
Other Intangible Assets
|
57.5 | 1,779.3 | 72.0 | - | 1,908.8 | |||||||||||||||
Accumulated Amortization
|
(34.9 | ) | (136.6 | ) | (10.3 | ) | - | (181.8 | ) | |||||||||||
Other Assets
|
35.1 | 1.0 | .1 | - | 36.2 | |||||||||||||||
Total Assets
|
$ | 5,851.0 | $ | 6,339.6 | $ | 683.3 | $ | (6,069.0 | ) | $ | 6,804.9 | |||||||||
Liabilities and Shareholders' Equity
|
||||||||||||||||||||
Current Liabilities
|
||||||||||||||||||||
Accounts and notes payable
|
$ | 64.3 | $ | 178.6 | $ | 39.4 | $ | (2.8 | ) | $ | 279.5 | |||||||||
Other current liabilities
|
248.9 | 84.5 | 14.2 | - | 347.6 | |||||||||||||||
Total Current Liabilities
|
313.2 | 263.1 | 53.6 | (2.8 | ) | 627.1 | ||||||||||||||
Intercompany Notes and Interest
|
83.0 | 15.1 | 20.8 | (118.9 | ) | - | ||||||||||||||
Long-term Debt
|
2,464.9 | - | - | - | 2,464.9 | |||||||||||||||
Deferred Income Taxes
|
- | 753.2 | 12.9 | (81.0 | ) | 685.1 | ||||||||||||||
Other Liabilities
|
160.7 | 7.8 | 30.1 | - | 198.6 | |||||||||||||||
Total Liabilities
|
3,021.8 | 1,039.2 | 117.4 | (202.7 | ) | 3,975.7 | ||||||||||||||
Shareholders' Equity
|
||||||||||||||||||||
Common stock
|
.6 | - | - | - | .6 | |||||||||||||||
Other shareholders' equity
|
2,828.6 | 5,300.4 | 565.9 | (5,866.3 | ) | 2,828.6 | ||||||||||||||
Total Shareholders' Equity
|
2,829.2 | 5,300.4 | 565.9 | (5,866.3 | ) | 2,829.2 | ||||||||||||||
Total Liabilities and Shareholders' Equity
|
$ | 5,851.0 | $ | 6,339.6 | $ | 683.3 | $ | (6,069.0 | ) | $ | 6,804.9 |
Three Months Ended March 31, 2011
|
||||||||||||||||
Parent
|
Guarantor
|
Non-Guarantor
|
||||||||||||||
Company
|
Subsidiaries
|
Subsidiaries
|
Consolidated
|
|||||||||||||
Net Cash Provided (Used) by Operating Activities
|
$ | 370.3 | $ | (56.1 | ) | $ | (87.4 | ) | $ | 226.8 | ||||||
Cash Flows from Investing Activities
|
||||||||||||||||
Additions to property and intangible assets
|
(5.4 | ) | (45.0 | ) | (1.4 | ) | (51.8 | ) | ||||||||
Proceeds from sale of property
|
- | .1 | - | .1 | ||||||||||||
Purchases of securities
|
(10.0 | ) | - | - | (10.0 | ) | ||||||||||
Proceeds from sale or maturity of securities
|
10.0 | - | - | 10.0 | ||||||||||||
Intercompany investments and advances
|
(97.5 | ) | 117.2 | (19.7 | ) | - | ||||||||||
Net Cash (Used) Provided by Investing Activities
|
(102.9 | ) | 72.3 | (21.1 | ) | (51.7 | ) | |||||||||
Cash Flows from Financing Activities
|
||||||||||||||||
Repayments of long-term debt
|
(44.7 | ) | - | - | (44.7 | ) | ||||||||||
Net (repayments) borrowings under credit arrangements
|
(235.8 | ) | - | 119.0 | (116.8 | ) | ||||||||||
Purchase of treasury stock
|
(.6 | ) | - | - | (.6 | ) | ||||||||||
Proceeds and tax benefits from exercise of stock awards
|
4.9 | - | - | 4.9 | ||||||||||||
Changes in book cash overdrafts
|
8.6 | (15.6 | ) | - | (7.0 | ) | ||||||||||
Other, net
|
- | (.1 | ) | - | (.1 | ) | ||||||||||
Net Cash (Used) Provided by Financing Activities
|
(267.6 | ) | (15.7 | ) | 119.0 | (164.3 | ) | |||||||||
Effect of Exchange Rate Changes on Cash
|
- | - | 1.3 | 1.3 | ||||||||||||
Net (Decrease) Increase in Cash and Cash Equivalents
|
(.2 | ) | .5 | 11.8 | 12.1 | |||||||||||
Cash and Cash Equivalents, Beginning of Period
|
.6 | .3 | 28.4 | 29.3 | ||||||||||||
Cash and Cash Equivalents, End of Period
|
$ | .4 | $ | .8 | $ | 40.2 | $ | 41.4 |
Six Months Ended March 31, 2010
|
||||||||||||||||
Parent
|
Guarantor
|
Non-Guarantor
|
||||||||||||||
Company
|
Subsidiaries
|
Subsidiaries
|
Consolidated
|
|||||||||||||
Net Cash (Used) Provided by Operating Activities
|
$ | (13.0 | ) | $ | 146.1 | $ | 27.4 | $ | 160.5 | |||||||
Cash Flows from Investing Activities
|
||||||||||||||||
Additions to property and intangible assets
|
(10.5 | ) | (41.9 | ) | (4.8 | ) | (57.2 | ) | ||||||||
Proceeds from sale of property
|
- | .4 | .1 | .5 | ||||||||||||
Purchases of securities
|
(12.8 | ) | - | - | (12.8 | ) | ||||||||||
Proceeds from sale or maturity of securities
|
14.8 | - | - | 14.8 | ||||||||||||
Intercompany investments and advances
|
102.6 | (88.3 | ) | (14.3 | ) | - | ||||||||||
Net Cash Provided (Used) by Investing Activities
|
94.1 | (129.8 | ) | (19.0 | ) | (54.7 | ) | |||||||||
Cash Flows from Financing Activities
|
||||||||||||||||
Repayments of long-term debt
|
(95.3 | ) | - | - | (95.3 | ) | ||||||||||
Purchase of treasury stock
|
(115.5 | ) | - | - | (115.5 | ) | ||||||||||
Proceeds and tax benefits from exercise of stock awards
|
6.3 | 1.5 | - | 7.8 | ||||||||||||
Changes in book cash overdrafts
|
(7.6 | ) | (15.8 | ) | - | (23.4 | ) | |||||||||
Other, net
|
- | (.1 | ) | - | (.1 | ) | ||||||||||
Net Cash Used by Financing Activities
|
(212.1 | ) | (14.4 | ) | - | (226.5 | ) | |||||||||
Effect of Exchange Rate Changes on Cash
|
- | - | 1.0 | 1.0 | ||||||||||||
Net (Decrease) Increase in Cash and Cash Equivalents
|
(131.0 | ) | 1.9 | 9.4 | (119.7 | ) | ||||||||||
Cash and Cash Equivalents, Beginning of Period
|
263.5 | .2 | 19.1 | 282.8 | ||||||||||||
Cash and Cash Equivalents, End of Period
|
$ | 132.5 | $ | 2.1 | $ | 28.5 | $ | 163.1 |
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
Three Months Ended March 31,
|
Six Months Ended March 31,
|
|||||||||||||||||||||||
2011
|
2010
|
% Change
|
2011
|
2010
|
% Change
|
|||||||||||||||||||
(dollars in millions, except per share data)
|
||||||||||||||||||||||||
Net Sales
|
$ | 1,172.6 | $ | 965.0 | 22% | $ | 2,345.9 | $ | 1,956.9 | 20% | ||||||||||||||
Operating Profit
|
164.1 | 97.7 | 68% | 311.2 | 229.8 | 35% | ||||||||||||||||||
Net Earnings
|
83.3 | 46.7 | 78% | 154.6 | 113.9 | 36% | ||||||||||||||||||
Diluted Earnings per Share
|
$ | 1.50 | $ | .84 | 79% | $ | 2.78 | $ | 2.03 | 37% | ||||||||||||||
Adjusted Diluted Earnings per Share (1)
|
$ | 1.43 | $ | 1.12 | 28% | $ | 2.69 | $ | 2.33 | 15% | ||||||||||||||
(1)Adjusted Diluted Earnings per Share
|
$ | 1.43 | $ | 1.12 | $ | 2.69 | $ | 2.33 | ||||||||||||||||
Adjustments for economic hedges
|
.07 | - | .12 | - | ||||||||||||||||||||
Provision for legal settlement
|
- | - | (.03 | ) | - | |||||||||||||||||||
Merger and integration costs
|
- | (.05 | ) | - | (.06 | ) | ||||||||||||||||||
Amounts related to plant closures
|
- | - | - | (.01 | ) | |||||||||||||||||||
Impairment of intangible assets
|
- | (.23 | ) | - | (.23 | ) | ||||||||||||||||||
Diluted Earnings per Share
|
$ | 1.50 | $ | .84 | $ | 2.78 | $ | 2.03 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||||||||||
2011
|
2010
|
% Change
|
2011
|
2010
|
% Change
|
|||||||||||||||||||
(dollars in millions)
|
||||||||||||||||||||||||
Base-business Net Sales
|
$ | 1,000.4 | $ | 965.0 | 4% | $ | 1,994.7 | $ | 1,956.9 | 2% | ||||||||||||||
Net sales from recent acquisitions
|
||||||||||||||||||||||||
excluded from base-business net sales:
|
||||||||||||||||||||||||
AIPC
|
143.5 | - | 15% | 279.4 | - | 14% | ||||||||||||||||||
Other fiscal 2010 acquisitions
|
28.7 | - | 3% | 71.8 | - | 4% | ||||||||||||||||||
Net Sales
|
$ | 1,172.6 | $ | 965.0 | 22% | $ | 2,345.9 | $ | 1,956.9 | 20% |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(% of net sales)
|
||||||||||||||||
Gross Profit
|
29.0% | 27.6% | 28.0% | 27.6% | ||||||||||||
Selling, general and administrative expenses
|
-13.3% | -13.9% | -12.9% | -13.5% | ||||||||||||
Amortization of intangible assets
|
-1.6% | -1.2% | -1.6% | -1.2% | ||||||||||||
Impairment of intangible assets
|
- | -2.1% | - | -1.0% | ||||||||||||
Other operating expenses, net
|
-.1% | -.3% | -.2% | -.2% | ||||||||||||
Operating Profit
|
14.0% | 10.1% | 13.3% | 11.7% | ||||||||||||
Adjusted Gross Profit
|
28.5% | 27.6% | 27.5% | 27.6% | ||||||||||||
Adjustments for economic hedges
|
.5% | - | .5% | - | ||||||||||||
Gross Profit
|
29.0% | 27.6% | 28.0% | 27.6% | ||||||||||||
Adjusted Operating Profit
|
13.5% | 12.7% | 12.9% | 13.0% | ||||||||||||
Adjustments for economic hedges
|
.5% | - | .5% | - | ||||||||||||
Provision for legal settlement
|
- | - | -.1% | - | ||||||||||||
Merger and integration costs
|
- | -.5% | - | -.3% | ||||||||||||
Impairment of intangible assets
|
- | -2.1% | - | -1.0% | ||||||||||||
Operating Profit
|
14.0% | 10.1% | 13.3% | 11.7% |
·
|
Base-business net sales, as reported herein, has been adjusted to exclude estimated current year sales attributable to recently acquired businesses for the period corresponding to the pre-acquisition period of the comparative period of the prior year. For each acquired business, the excluded period starts at the beginning of the respective quarter or year-to-date period and ends one year after the acquisition date. The Company has included financial measures for the base business (such as sales growth) because they provide useful and comparable trend information regarding the results of our businesses without the effect of the timing of acquisitions.
|
·
|
Adjusted EBITDA, as presented herein (and reconciled to Net Earnings below), is defined as earnings before interest, income taxes, depreciation, and amortization, excluding impairment of intangible assets (if any), adjustments for economic hedges, provision for legal settlement, merger and integration costs, and amounts related to plant closures. Ralcorp’s board of directors, management, and investors use Adjusted EBITDA to assess the Company’s performance because it allows them to compare operating performance on a consistent basis across periods by removing the effects of capital structure (such as varying levels of interest expense), items largely outside the control of the management team (such as income taxes), asset base (such as depreciation, amortization, and impairments), derivatives accounting that is not representative of the economic effect of hedges, amounts related to significant legal settlements, and items related to acquisition and disposal activity (such as merger and integration costs and amounts related to plant closures).
|
·
|
Adjusted diluted earnings per share is an additional measure for comparing the earnings generated by operations between periods, without the effects of intangible asset impairments (if any), adjustments for economic hedges, provision for legal settlement, merger and integration costs, and amounts related to plant closures.
|
·
|
Adjusted gross profit (as a percentage of net sales) is an additional measure for comparing gross margins between periods, without the effects of adjustments for economic hedges and acquired inventory valuation adjustments (if any).
|
·
|
Adjusted operating profit (as a percentage of net sales) is an additional measure for comparing operating margins between periods, without the effects of intangible asset impairments (if any), adjustments for economic hedges, provision for legal settlement, merger and integration costs, and amounts related to plant closures.
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(dollars in millions)
|
||||||||||||||||
Adjusted EBITDA
|
$ | 214.5 | $ | 161.8 | $ | 416.6 | $ | 333.6 | ||||||||
Interest expense, net
|
(33.8 | ) | (23.9 | ) | (69.5 | ) | (50.4 | ) | ||||||||
Income taxes
|
(47.0 | ) | (27.1 | ) | (87.1 | ) | (65.5 | ) | ||||||||
Depreciation and amortization
|
(56.1 | ) | (39.0 | ) | (113.0 | ) | (77.4 | ) | ||||||||
Adjustments for economic hedges
|
6.0 | - | 10.8 | - | ||||||||||||
Provision for legal settlement
|
- | - | (2.5 | ) | - | |||||||||||
Merger and integration costs
|
(.1 | ) | (4.5 | ) | (.3 | ) | (5.1 | ) | ||||||||
Amounts related to plant closures
|
(.2 | ) | (.1 | ) | (.4 | ) | (.8 | ) | ||||||||
Impairment of intangible assets
|
- | (20.5 | ) | - | (20.5 | ) | ||||||||||
Net Earnings
|
$ | 83.3 | $ | 46.7 | $ | 154.6 | $ | 113.9 |
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||||||||||
2011
|
2010
|
% Change
|
2011
|
2010
|
% Change
|
|||||||||||||||||||
(pounds in millions)
|
||||||||||||||||||||||||
Sales Volume
|
||||||||||||||||||||||||
Branded Cereal Products
|
122.0 | 131.8 | -7% | 225.9 | 252.3 | -10% | ||||||||||||||||||
Other Cereal Products
|
125.6 | 128.1 | -2% | 260.1 | 260.4 | 0% | ||||||||||||||||||
Snacks, Sauces & Spreads
|
331.1 | 318.7 | 4% | 672.9 | 643.2 | 5% | ||||||||||||||||||
Frozen Bakery Products
|
171.5 | 160.3 | 7% | 345.2 | 326.1 | 6% | ||||||||||||||||||
Pasta
|
214.8 | - | n/a | 426.8 | - | n/a | ||||||||||||||||||
Total Sales Volume
|
965.0 | 738.9 | 31% | 1,930.9 | 1,482.0 | 30% | ||||||||||||||||||
(dollars in millions)
|
||||||||||||||||||||||||
Net Sales
|
||||||||||||||||||||||||
Branded Cereal Products
|
$ | 255.3 | $ | 260.6 | -2% | $ | 476.9 | $ | 506.5 | -6% | ||||||||||||||
Other Cereal Products
|
198.9 | 193.3 | 3% | 403.6 | 388.2 | 4% | ||||||||||||||||||
Snacks, Sauces & Spreads
|
382.2 | 338.2 | 13% | 799.6 | 707.5 | 13% | ||||||||||||||||||
Frozen Bakery Products
|
192.7 | 172.9 | 11% | 386.4 | 354.7 | 9% | ||||||||||||||||||
Pasta
|
143.5 | - | n/a | 279.4 | - | n/a | ||||||||||||||||||
Total Net Sales
|
$ | 1,172.6 | $ | 965.0 | 22% | $ | 2,345.9 | $ | 1,956.9 | 20% | ||||||||||||||
Segment Profit
|
||||||||||||||||||||||||
Branded Cereal Products
|
$ | 56.9 | $ | 55.0 | 3% | $ | 106.6 | $ | 104.1 | 2% | ||||||||||||||
Other Cereal Products
|
21.3 | 22.0 | -3% | 42.5 | 46.2 | -8% | ||||||||||||||||||
Snacks, Sauces & Spreads
|
33.3 | 40.5 | -18% | 70.7 | 88.0 | -20% | ||||||||||||||||||
Frozen Bakery Products
|
22.9 | 18.2 | 26% | 45.9 | 44.6 | 3% | ||||||||||||||||||
Pasta
|
36.6 | - | n/a | 64.8 | - | n/a | ||||||||||||||||||
Total Segment Profit
|
$ | 171.0 | $ | 135.7 | 26% | $ | 330.5 | $ | 282.9 | 17% | ||||||||||||||
Segment Profit Margin
|
||||||||||||||||||||||||
Branded Cereal Products
|
22% | 21% | 22% | 21% | ||||||||||||||||||||
Other Cereal Products
|
11% | 11% | 11% | 12% | ||||||||||||||||||||
Snacks, Sauces & Spreads
|
9% | 12% | 9% | 12% | ||||||||||||||||||||
Frozen Bakery Products
|
12% | 11% | 12% | 13% | ||||||||||||||||||||
Pasta
|
26% | n/a | 23% | n/a | ||||||||||||||||||||
Total Segment Profit Margin
|
15% | 14% | 14% | 14% |
Sales Volume Change from Prior Year
|
|||
Three Months Ended
|
Six Months Ended
|
||
March 31, 2011
|
March 31, 2011
|
||
Honey Bunches of Oats
|
4%
|
-4%
|
|
Pebbles
|
0%
|
0%
|
|
Other
|
-21%
|
-20%
|
|
Total
|
-7%
|
-10%
|
Sales Volume Change from Prior Year
|
|||
Three Months Ended
|
Six Months Ended
|
||
March 31, 2011
|
March 31, 2011
|
||
Private-brand ready-to-eat cereal
|
-7%
|
-6%
|
|
Nutritional bars
|
11%
|
28%
|
|
Hot cereal
|
-7%
|
-6%
|
|
Other minor categories
|
4%
|
0%
|
|
Total
|
-2%
|
0%
|
Sales Volume Change from Prior Year
|
|||
Three Months Ended
|
Six Months Ended
|
||
March 31, 2011
|
March 31, 2011
|
||
Nuts
|
7%
|
11%
|
|
Crackers
|
8%
|
5%
|
|
Cookies
|
-6%
|
-3%
|
|
Peanut butter
|
-1%
|
-4%
|
|
Preserves & jellies
|
-4%
|
-5%
|
|
Syrups
|
-10%
|
-10%
|
|
Chips
|
0%
|
1%
|
|
Dressings
|
12%
|
8%
|
|
Other minor categories
|
-1%
|
0%
|
|
Total
|
0%
|
0%
|
Sales Volume Change from Prior Year
|
|||
Three Months Ended
|
Six Months Ended
|
||
March 31, 2011
|
March 31, 2011
|
||
In-store bakery (ISB)
|
-10%
|
-5%
|
|
Foodservice
|
11%
|
7%
|
|
Retail
|
18%
|
12%
|
|
Total
|
4%
|
3%
|
Sales Volume Change from Prior Year
|
|||
Three Months Ended
|
Six Months Ended
|
||
March 31, 2011
|
March 31, 2011
|
||
Retail
|
0%
|
0%
|
|
Institutional
|
-13%
|
-13%
|
|
Total
|
-3%
|
-3%
|
Six Months Ended
|
||||||||
March 31,
|
||||||||
2011
|
2010
|
|||||||
Cash provided by operating activities
|
$ | 226.8 | $ | 160.5 | ||||
Cash used by investing activities
|
(51.7 | ) | (54.7 | ) | ||||
Cash used by financing activities
|
(164.3 | ) | (226.5 | ) | ||||
Effect of exchange rate changes on cash
|
1.3 | 1.0 | ||||||
Net increase (decrease) in cash and cash equivalents
|
$ | 12.1 | $ | (119.7 | ) | |||
Mar. 31,
|
Sept. 30,
|
|||||||
2011 | 2010 | |||||||
Cash and cash equivalents
|
$ | 41.4 | $ | 29.3 | ||||
Current portion of long-term debt
|
23.2 | 173.2 | ||||||
Working capital excluding cash and current debt
|
185.1 | 393.8 | ||||||
Long-term debt excluding current portion
|
2,184.3 | 2,464.9 | ||||||
Total shareholders' equity
|
3,028.5 | 2,829.2 |
·
|
our ability to effectively manage the growth from acquisitions or continue to make acquisitions at the rate at which we have been acquiring in the past;
|
·
|
significant increases in the costs of certain commodities, packaging or energy used to manufacture our products;
|
·
|
our ability to continue to compete in our business segments and our ability to retain our market position;
|
·
|
our ability to maintain a meaningful price gap between our products and those of our competitors, successfully introduce new products or successfully manage costs across all parts of the Company;
|
·
|
significant competition within the private-brand business;
|
·
|
our ability to successfully implement business strategies to reduce costs;
|
·
|
the loss of a significant customer;
|
·
|
allegations that our products cause injury or illness, product recalls and product liability claims and other litigation;
|
·
|
our ability to anticipate changes in consumer preferences and trends;
|
·
|
our ability to service our outstanding debt or obtain additional financing;
|
·
|
disruptions in the U.S. and global capital and credit markets;
|
·
|
fluctuations in foreign currency exchange rates;
|
·
|
the termination or expiration of current co-manufacturing agreements;
|
·
|
consolidations among the retail grocery and foodservice industries;
|
·
|
change in estimates in critical accounting judgments and changes to or new laws and regulations affecting our business;
|
·
|
termination of existing anti-dumping measures imposed against certain foreign imports of dry pasta;
|
·
|
losses or increased funding and expenses related to our qualified pension plan;
|
·
|
labor strikes or work stoppages by our employees;
|
·
|
bankruptcy of a significant customer;
|
·
|
impairment in the carrying value of goodwill or other intangibles; and
|
·
|
changes in weather conditions, natural disasters and other events beyond our control.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
Item 4.
|
Controls and Procedures.
|
Item 1.
|
Legal Proceedings.
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds.
|
ISSUER PURCHASES OF EQUITY SECURITIES
|
Period
|
(a)
Total Number of Shares Purchased
|
(b)
Average Price Paid per Share
|
(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
(d) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs*
|
|
January 1-
January 31, 2011
|
0
|
$
|
0
|
0
|
See total
|
February 1 -
February 28, 2011
|
0
|
0
|
0
|
See total
|
|
March 1 -
March 31, 2011
|
0
|
0
|
0
|
See total
|
|
Total
|
0
|
0
|
0
|
5,000,000
|
* | On November 10, 2009, the Board of Directors terminated the Company’s existing share repurchase authorization and approved a new authorization to repurchase up to 7,000,000 shares of common stock at prevailing market prices. The new authorization has no expiration date. From time to time, the Company may repurchase its common stock through plans established under Rule 10b5-1. Typically, these plans direct a broker to purchase a variable amount of shares each day (usually between 0 and 50,000) depending on the previous day’s closing share price. |
Item 6.
|
Exhibits.
|
31.1
|
Section 302 Certification of Kevin J. Hunt dated May 5, 2011.
|
31.2
|
Section 302 Certification of David P. Skarie dated May 5, 2011.
|
31.3
|
Section 302 Certification of Thomas G. Granneman dated May 5, 2011.
|
32
|
Section 1350 Certification of Kevin J. Hunt, David P. Skarie and Thomas G. Granneman dated May 5, 2011.
|
RALCORP HOLDINGS, INC.
|
|
Date: May 5, 2011
|
By: /s/ T. G. Granneman
|
T. G. Granneman
|
|
Duly Authorized Signatory and
|
|
Chief Accounting Officer
|
Exhibit
|
Description
|
31.1
|
Section 302 Certification of Kevin J. Hunt dated May 5, 2011.
|
31.2
|
Section 302 Certification of David P. Skarie dated May 5, 2011.
|
31.3
|
Section 302 Certification of Thomas G. Granneman dated May 5, 2011.
|
32
|
Section 1350 Certification of Kevin J. Hunt, David P. Skarie and Thomas G. Granneman dated May 5, 2011.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Ralcorp Holdings, Inc.;
|
2.
|
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluations; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of the internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material internal weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 5, 2011
|
/s/ Kevin J. Hunt
|
Kevin J. Hunt
|
|
Co-Chief Executive Officer
|
|
and President
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Ralcorp Holdings, Inc.;
|
2.
|
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluations; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of the internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material internal weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 5, 2011
|
/s/ David P. Skarie
|
David P. Skarie
|
|
Co-Chief Executive Officer
|
|
and President
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Ralcorp Holdings, Inc.;
|
2.
|
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluations; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of the internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material internal weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 5, 2011
|
/s/ Thomas G. Granneman
|
Thomas G. Granneman
|
|
Corporate Vice President and Chief
|
|
Accounting Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Kevin J. Hunt
|
/s/ David P. Skarie
|
/s/ Thomas G. Granneman
|
|
Kevin J. Hunt
|
David P. Skarie
|
Thomas G. Granneman
|
|
Co-Chief Executive Officer
|
Co-Chief Executive Officer
|
Corporate Vice president and Chief Accounting Officer
|
|
Ralcorp Holdings, Inc.
|
Ralcorp Holdings, Inc.
|
Ralcorp Holdings, Inc.
|
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