EX-99.3 4 a5695296ex99_3.htm EXHIBIT 99.3

Exhibit 99.3

H.J. Heinz Company

Reported GAAP Consolidated Statements of Income
(In Millions, Except per Share Amounts)     2004       2005       2006    

 

Q107

 

 

 

Q207

     

Q307

     

Q407

      2007      

Q108

     

Q208

     

Q308

   

 

Q408

      2008  
             
Category Sales:
Ketchup and Sauces $ 3,047.7 $ 3,234.2 $ 3,530.3

$

901.0

 

$

915.1

$

890.0

$

976.0

$

3,682.1

$

971.8

$

999.4

$

1,010.9 $ 1,099.7 $ 4,081.9
Meals and Snacks 3,309.8 3,680.9 3,876.7 853.9 1,009.3 1,085.4 1,077.5 4,026.2 944.8 1,147.9 1,235.0 1,193.9 4,521.7
Infant Foods 908.5 855.6 863.9 213.7 213.2 236.0 266.2 929.1 239.0 268.9 276.3 305.5 1,089.5
Other   359.9     332.7     372.4     91.3  

 

  94.5       83.7       94.7       364.3     92.7       107.1       88.7       89.2       377.7  
Total Sales 7,625.8 8,103.5 8,643.4 2,059.9 2,232.2 2,295.2 2,414.3 9,001.6 2,248.3 2,523.4 2,610.9 2,688.3 10,070.8
Cost of products sold   4,733.3     5,069.9     5,550.4     1,287.5       1,385.6       1,443.1       1,492.5       5,608.7     1,409.9       1,591.6       1,675.4       1,713.2       6,390.1  
Gross Profit 2,892.5 3,033.5 3,093.1 772.4 846.6 852.1 921.8 3,392.9 838.4 931.8 935.4 975.1 3,680.7
Gross Margin 37.9 % 37.4 % 35.8 % 37.5 % 37.9 % 37.1 % 38.2 % 37.7 % 37.3

%

 

36.9 % 35.8 % 36.3 % 36.5 %
Selling, general and adminstrative expenses   1,616.4     1,752.1     1,979.5     452.8       463.6       475.8       554.0       1,946.2     471.7       510.8       529.4       599.8       2,111.7  
Operating Income 1,276.1 1,281.5 1,113.6 319.6 383.0 376.3 367.8 1,446.7 366.7 421.0 406.1 375.3 1,569.0
 
Net Interest Expense 186.8 205.1 283.1 68.3 73.1 71.3 78.7 291.4 78.3 87.0 84.2 73.8 323.3
Asset impairment charges for cost and equity investments - 73.8 111.0 - - - - - - - - - -
Other Expense, net   21.7     15.0     26.1     7.7       7.1       9.2       6.9       30.9     8.6       10.8       2.5       5.9       27.8  
Income from Continuing Operations before income taxes 1,067.6 987.5 693.5 243.6 302.8 295.8 282.2 1,124.4 279.7 323.2 319.4 295.5 1,217.8
Provision for income taxes   352.1     299.5     250.7     49.5       105.4       76.8       101.1       332.8     74.4       96.2       100.8       101.4       372.9  
Income from continuing operations 715.5 688.0 442.8 194.1 197.4 219.0 181.0 791.6 205.3 227.0 218.5 194.1 844.9
Income/(loss) from discontinued operations, net of tax   88.8     64.7     202.8     -       (5.9

)

    -       -       (5.9 )   -       -       -       -       -  
Net Income $ 804.3   $ 752.7   $ 645.6   $ 194.1  

 

$

191.6    

$

219.0    

$

181.0    

$

785.7  

$

205.3    

$

227.0    

$

218.5     $ 194.1     $ 844.9  
 
Income/(loss) per common share - Diluted
Continuing operations $ 2.02 $ 1.95 $ 1.29 $ 0.58

 

$

0.59

$

0.66

$

0.55

$

2.38

$

0.63

$

0.71

$

0.68 $ 0.61 $ 2.63
Discontinued operations   0.25     0.18     0.59     -       (0.02 )     -       -       (0.02 )   -       -       -       -       -  
Net Income $ 2.27   $ 2.13   $ 1.89   $ 0.58  

 

$

0.57    

$

0.66    

$

0.55    

$

2.36  

$

0.63    

$

0.71    

$

0.68     $ 0.61     $ 2.63  
 
Average common shares outstanding - diluted   354.4     353.5     342.1     334.7       334.6       332.5       327.8       332.5     325.5       321.9       321.4       318.0       321.7  
 
Income/(loss) per common share - Basic
Continuing operations $ 2.03 $ 1.97 $ 1.31 $ 0.59

 

$

0.60

$

0.67

$

0.56

$

2.41

$

0.64

$

0.72

$

0.69 $ 0.62 $ 2.67
Discontinued operations   0.25     0.18     0.60     -       (0.02

)

    -       -       (0.02 )   -       -       -       -       -  
Net Income $ 2.29   $ 2.15   $ 1.90   $ 0.59  

 

$

0.58    

$

0.67    

$

0.56    

$

2.39  

$

0.64    

$

0.72    

$

0.69     $ 0.62     $ 2.67  
 
Average common shares outstanding - basic   351.8     350.0     339.1     331.6       330.7       328.5       323.8       328.6     320.8       317.1       316.6       313.3       317.0  

Fiscal years 2004, 2005 and 2006 contain special items. Please refer to published financial statements for further information.

H. J. Heinz Company
Continuing Operations, Excluding Special Items
(In Millions, Except per Share Amounts)     2004       2005       2006    

 

Q107

   

 

Q207

   

 

Q307

   

 

Q407

      2007      

Q108

   

 

Q208

   

 

Q308

   

 

Q408

     

2008

 
               
Reported results from continuing operations
 
Net Sales $ 7,625.8   $ 8,103.5   $ 8,643.4   $ 2,059.9     $ 2,232.2     $ 2,295.2     $ 2,414.3     $ 9,001.6  

$

2,248.3     $ 2,523.4     $ 2,610.9     $ 2,688.3     $ 10,070.8  
 
Gross Profit $ 2,892.5 $ 3,033.5 $ 3,093.1 $ 772.4 $ 846.6 $ 852.1 $ 921.8 $ 3,392.9

$

838.4 $ 931.8 $ 935.4 $ 975.1 $ 3,680.7
Separation, downsizing and integration - - 17.4 - - - - - - - - - -
Net loss on disposals & impairments   4.0     27.0     74.1     -       -       -       -       -     -       -       -       -       -  
Gross Profit excluding special items $ 2,896.5   $ 3,060.5   $ 3,184.6   $ 772.4    

$

846.6     $ 852.1     $ 921.8     $ 3,392.9  

$

838.4     $ 931.8     $ 935.4     $ 975.1     $ 3,680.7  
 
Operating Income $ 1,276.1 $ 1,281.5 $ 1,113.6 $ 319.6 $ 383.0 $ 376.3 $ 367.8 $ 1,446.7

$

366.7 $ 421.0 $ 406.1 $ 375.3 $ 1,569.0
Separation, downsizing and integration 16.6 - 146.7 - - - - - - - - - -
Net loss on disposals & impairments   (24.8 )   27.0     89.7     -       -       -       -       -     -       -       -       -       -  
Operating Income excluding special items $ 1,267.9   $ 1,308.4   $ 1,350.0   $ 319.6     $ 383.0     $ 376.3     $ 367.8     $ 1,446.7  

$

366.7     $ 421.0     $ 406.1     $ 375.3     $ 1,569.0  
 
Income from continuing operations $ 715.5 $ 688.0 $ 442.8 $ 194.1 $ 197.4 $ 219.0 $ 181.0 $ 791.6

$

205.3 $ 227.0 $ 218.5 $ 194.1 $ 844.9
Separation, downsizing and integration 10.6 - 96.6 - - - - - - - - - -
Net loss on disposals & impairments (10.5 ) 18.0 48.3 - - - - - - - - - -
Asset impairment charges for cost and equity investments - 73.8 105.6 - - - - - - - - - -
American jobs creation act   -     -     24.4     -       -       -       -       -     -       -       -       -       -  
Income from continuing operations excluding special items $ 715.6   $ 779.8   $ 717.7   $ 194.1     $ 197.4     $ 219.0     $ 181.0     $ 791.6  

$

205.3     $ 227.0     $ 218.5     $ 194.1     $ 844.9  
 
Earnings per share from continuing operations $ 2.02 $ 1.95 $ 1.29 $ 0.58 $ 0.59 $ 0.66 $ 0.55 $ 2.38

$

0.63 $ 0.71 $ 0.68 $ 0.61 $ 2.63
Separation, downsizing and integration 0.03 0.00 0.28 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net loss on disposals & impairments (0.03 ) 0.05 0.14 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Asset impairment charges for cost and equity investments 0.00 0.21 0.31 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
American jobs creation act   0.00     0.00     0.07     0.00       0.00       0.00       0.00       0.00     0.00       0.00       0.00       0.00       0.00  
Earnings per share from continuing operations excluding special items $ 2.02   $ 2.21   $ 2.10   $ 0.58     $ 0.59     $ 0.66     $ 0.55     $ 2.38  

$

0.63     $ 0.71     $ 0.68     $ 0.61     $ 2.63  
 
 
Segment Operating Income/(Loss), excluding special items:

 

North American Consumer Products $ 479.5 $ 530.4 $ 590.0 $ 143.2 $ 166.0 $ 161.9 $ 154.6 $ 625.7

$

152.4 $ 177.5 $ 183.4 $ 165.1 $ 678.4
Europe 550.3 526.9 526.4 119.3 139.4 151.9 155.7 566.4 138.4 160.0 164.3 174.2 636.9
Asia / Pacific 114.0 121.6 126.6 34.2 45.8 29.5 40.8 150.2 51.3 55.8 40.7 47.2 194.9
U.S. Foodservice 215.0 224.8 212.1 55.1 59.5 54.3 47.2 216.1 43.5 51.5 46.8 27.8 169.6
Rest of World 25.0 26.3 31.6 8.7 10.4 10.1 10.3 39.5 10.2 12.8 11.2 11.3 45.4
Non-Operating   (115.9 )   (121.6 )   (136.6 )   (40.9 )     (38.0 )     (31.3 )     (40.8 )     (151.1 )   (29.1 )     (36.5 )     (40.4 )     (50.2 )

 

  (156.2 )
Total Operating Income $ 1,267.9   $ 1,308.4   $ 1,350.0   $ 319.6     $ 383.0     $ 376.3     $ 367.8     $ 1,446.7  

$

366.7     $ 421.0     $ 406.1     $ 375.3     $ 1,569.0  

Fiscal years 2004, 2005 and 2006 contain special items. Please refer to published financial statements for further information.
Note: All figures restated for India Segment Change as applicable.

H. J. Heinz Company
Sales Variance Analysis
(Dollars in Millions)     2005     2006**   Q107 Q207 Q307 Q407** 2007**   Q108 Q208 Q308 Q408   2008  
 

Net external sales:

North American Consumer Products $ 2,256.9 $ 2,554.1 $ 615.6 $ 671.6 $ 714.5 $ 737.8 $ 2,739.5 $ 664.7 $ 756.2 $ 807.6 $ 783.0 $ 3,011.5
Europe 2,908.6 2,987.7 685.9 739.4 813.0 838.5 3,076.8 766.0 872.4 923.1 970.8 3,532.3
Asia / Pacific 1,128.5 1,221.1 315.8 339.0 303.3 361.1 1,319.2 371.3 395.8 386.6 446.1 1,599.9
U.S. Foodservice 1,503.8 1,569.8 366.6 406.2 386.0 397.5 1,556.3 363.7 406.4 400.6 388.7 1,559.4
Rest of World   305.6     310.7     76.0     75.9     78.3     79.5     309.8     82.6     92.4     93.0     99.8     367.7  
Sales (Net Revenue) $ 8,103.5   $ 8,643.4   $ 2,059.9   $ 2,232.2   $ 2,295.2   $ 2,414.3   $ 9,001.6   $ 2,248.3   $ 2,523.4   $ 2,610.9   $ 2,688.3   $ 10,070.8  
 

Sales Variance by Segment:

North American Consumer Products:

Volume 5.7 % 7.7 % 4.3 % 4.7 % 5.2 % (2.7 %) 2.6 % 3.3 % 6.7 % 5.4 % (1.0 %) 3.5 %
Price 2.7 % 0.4 % 2.2 % 1.0 % 1.7 % 3.2 % 2.1 % 1.9 % 3.0 % 4.5 % 4.3 % 3.5 %
Acquisition 1.6 % 3.9 % 4.5 % 0.8 % 1.4 % 1.3 % 1.9 % 1.9 % 0.9 % 0.0 % 0.0 % 0.7 %
Divestiture (1.6 %) (0.1 %) 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %
Exchange   0.9 %   1.3 %   2.0 %   1.0 %   0.2 %   (0.1 %)   0.7 %   0.9 %   1.9 %   3.0 %   2.8 %   2.2 %
Total Change in Net Sales   9.3 %   13.2 %   13.0 %   7.5 %   8.5 %   1.7 %   7.3 %   8.0 %   12.6 %   13.0 %   6.1 %   9.9 %
Total Organic Growth   8.4 %   8.1 %   6.4 %   5.7 %   6.9 %   0.5 %   4.7 %   5.2 %   9.7 %   9.9 %   3.3 %   7.0 %
 

Europe:

Volume 0.2 % 1.2 % 2.2 % (1.7 %) (0.6 %) (8.3 %) (2.4 %) 2.4 % 9.1 % 3.9 % 2.6 % 4.5 %
Price (2.1 %) (1.4 %) (0.5 %) 1.4 % 2.0 % 3.4 % 1.7 % 3.4 % 1.3 % 2.7 % 5.4 % 3.3 %
Acquisition 0.0 % 9.1 % 7.0 % 1.5 % 0.1 % 0.1 % 1.9 % 0.0 % 0.0 % (0.0 %) 0.3 % 0.1 %
Divestiture (0.7 %) (1.8 %) (4.8 %) (6.7 %) (6.7 %) (4.0 %) (5.6 %) (2.0 %) (1.6 %) (1.2 %) (1.2 %) (1.5 %)
Exchange   7.6 %   (4.3 %)   3.0 %   4.7 %   10.5 %   10.1 %   7.3 %   7.9 %   9.2 %   8.1 %   8.6 %   8.5 %
Total Change in Net Sales   5.0 %   2.7 %   6.8 %   (0.8 %)   5.3 %   1.3 %   3.0 %   11.7 %   18.0 %   13.5 %   15.8 %   14.8 %
Total Organic Growth   (1.9 %)   (0.2 %)   1.7 %   (0.3 %)   1.5 %   (4.9 %)   (0.7 %)   5.8 %   10.4 %   6.6 %   8.0 %   7.8 %
 

Asia/Pacific:

Volume 2.2 % 8.1 % 12.9 % 3.7 % 3.7 % (0.8 %) 4.6 % 6.1 % 3.5 % 9.8 % 6.9 % 6.5 %
Price (0.6 %) 0.0 % 1.5 % 2.0 % 2.1 % 3.4 % 2.3 % 1.2 % 2.6 % 4.2 % 3.2 % 2.8 %
Acquisition 2.7 % 2.3 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.7 % 3.7 % 3.8 % 2.9 % 2.8 %
Divestiture (1.5 %) (1.3 %) 0.0 % 0.0 % (0.6 %) (0.6 %) (0.3 %) (1.5 %) (1.5 %) (1.0 %) (0.9 %) (1.2 %)
Exchange   3.1 %   (0.9 %)   (2.8 %)   (0.2 %)   2.9 %   5.5 %   1.5 %   11.1 %   8.4 %   10.7 %   11.5 %   10.4 %
Total Change in Net Sales   5.8 %   8.2 %   11.6 %   5.5 %   8.1 %   7.4 %   8.0 %   17.6 %   16.8 %   27.4 %   23.6 %   21.3 %
Total Organic Growth   1.5 %   8.1 %   14.4 %   5.7 %   5.8 %   2.6 %   6.9 %   7.3 %   6.1 %   14.0 %   10.1 %   9.3 %
 

U.S. Foodservice:

Volume 2.9 % 0.2 % 5.0 % 5.1 % (4.3 %) (6.3 %) (0.4 %) (2.7 %) (1.7 %) 4.3 % (4.3 %) (1.1 %)
Price 1.5 % 0.3 % (0.4 %) 2.3 % 2.6 % 1.9 % 1.7 % 3.2 % 2.1 % (0.5 %) 2.1 % 1.7 %
Acquisition 0.9 % 3.9 % 2.3 % 1.8 % 1.8 % 0.7 % 1.6 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %
Divestiture 0.0 % 0.0 % (3.1 %) (3.9 %) (3.9 %) (3.8 %) (3.7 %) (1.3 %) (0.3 %) (0.0 %) 0.0 % (0.4 %)
Exchange   0.0 %   0.0 %   0.0 %   0.0 %   0.0 %   0.0 %   0.0 %   0.0 %   0.0 %   0.0 %   0.0 %   0.0 %
Total Change in Net Sales   5.3 %   4.4 %   3.8 %   5.4 %   (3.8 %)   (7.6 %)   (0.9 %)   (0.8 %)   0.1 %   3.8 %   (2.2 %)   0.2 %
Total Organic Growth   4.3 %   0.5 %   4.6 %   7.5 %   (1.7 %)   (4.5 %)   1.2 %   0.5 %   0.4 %   3.8 %   (2.2 %)   0.6 %
 

Rest of World:

Volume (1.6 %) 2.6 % 5.4 % 7.7 % 8.7 % (1.6 %) 5.0 % 6.3 % 6.7 % 2.5 % 9.6 % 6.3 %
Price (3.0 %) 6.4 % 7.9 % 7.3 % 9.3 % 10.9 % 8.9 % 9.4 % 13.8 % 15.0 % 15.9 % 13.6 %
Acquisition 7.4 % 4.9 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %
Divestiture 0.0 % (8.3 %) (13.7 %) (17.2 %) (9.7 %) (6.5 %) (11.8 %) (6.9 %) (0.1 %) (0.0 %) 0.0 % (1.7 %)
Exchange   0.7 %   (3.9 %)   (1.2 %)   (2.7 %)   (2.2 %)   (3.2 %)   (2.3 %)   (0.2 %)   1.3 %   1.2 %   0.0 %   0.6 %
Total Change in Net Sales   3.5 %   1.7 %   (1.5 %)   (4.9 %)   6.1 %   (0.4 %)   (0.3 %)   8.6 %   21.7 %   18.7 %   25.5 %   18.7 %
Total Organic Growth   (4.6 %)   8.9 %   13.3 %   15.0 %   18.0 %   9.3 %   13.8 %   15.7 %   20.5 %   17.5 %   25.5 %   19.9 %
 

Total Heinz:

Volume 2.4 % 3.8 % 5.1 % 2.5 % 1.4 % (5.0 %) 0.7 % 2.5 % 5.5 % 5.2 % 1.2 % 3.6 %
Price 0.0 % (0.1 %) 0.9 % 1.7 % 2.3 % 3.3 % 2.1 % 2.8 % 2.6 % 3.4 % 4.5 % 3.3 %
Acquisition 1.3 % 5.6 % 4.1 % 1.1 % 0.8 % 0.5 % 1.5 % 0.7 % 0.8 % 0.5 % 0.5 % 0.6 %
Divestiture (0.9 %) (1.2 %) (2.7 %) (3.7 %) (3.5 %) (2.4 %) (3.1 %) (1.4 %) (0.8 %) (0.6 %) (0.5 %) (0.8 %)
Exchange   3.5 %   (1.5 %)   1.1 %   1.8 %   4.0 %   4.1 %   2.9 %   4.6 %   5.0 %   5.3 %   5.6 %   5.1 %
Total Change in Net Sales   6.3 %   6.7 %   8.4 %   3.5 %   5.0 %   0.6 %   4.1 %   9.1 %   13.0 %   13.8 %   11.3 %   11.9 %
Total Organic Growth   2.4 %   3.7 %   6.0 %   4.3 %   3.7 %   (1.7 %)   2.8 %   5.3 %   8.1 %   8.6 %   5.7 %   6.9 %

Note: All figures restated for India Segment Change as applicable.
** Fiscal 2007 had one less week than Fiscal 2006

H. J. Heinz Company
Consolidated Balance Sheets
(In millions)  

 

2005*

      2006     2007     2008
 
Current assets:
Cash and cash equivalents $ 1,083.7 $ 445.4 $ 652.9 $ 617.7
Receivables (net of allowances) 1,092.4 1,002.1 996.9 1,161.5
Inventories 1,256.8 1,073.7 1,198.0 1,378.2
Prepaid expenses 174.8 139.7 132.6 139.5
Other current assets   37.8       43.0   38.7   28.7
Total current assets 3,645.6 2,703.9 3,019.0 3,325.6
 
Property, plant and equipment, net 2,163.9 1,900.6 1,998.2 2,104.7
 
Other non-current assets:
Goodwill 2,138.5 2,822.6 2,834.6 2,997.5
Trademarks, net 651.6 776.9 892.7 957.1
Other intangibles, net 171.7 269.6 412.5 456.9
Other non-current assets   1,806.5       1,264.3   876.0   723.2
Total other non-current assets   4,768.2       5,133.3   5,015.9   5,134.8
Total assets $ 10,577.7     $ 9,737.8 $ 10,033.0 $ 10,565.0
 
Current liabilities:
Short-term debt $ 28.5 $ 54.1 $ 165.1 $ 124.3
Portion of long-term debt due within one year 544.8 0.9 303.2 328.4
Accounts payable 1,181.7 1,035.1 1,181.1 1,247.5
Salaries and wages 76.0 84.8 85.8 92.6
Accrued marketing 260.6 216.3 262.2 298.3
Other accrued liabilities 365.0 476.7 414.1 487.7
Income taxes   130.6       150.4   93.6   91.3
Total current liabilities 2,587.1 2,018.2 2,505.1 2,670.1
 
Long-term debt and other liabilities:
Long-term debt 4,122.0 4,357.0 4,413.6 4,730.9
Deferred income taxes 508.6 518.7 463.7 409.2
Other liabilities   757.5       795.0   808.9   867.0
Total long-term debt and other liabilities 5,388.1 5,670.7 5,686.2 6,007.2
 
Shareholders' equity:
Preferred stock 0.1 0.1 0.1 0.1
Common stock 107.8 107.8 107.8 107.8
Additional capital 430.1 502.2 580.6 617.8
Retained earnings 5,210.7 5,454.1 5,778.6 6,129.0
 
Less:
Treasury shares, at cost 3,140.6 3,852.2 4,406.1 4,905.8
Unearned compensation 31.1 32.8 - -
Accumulated other comprehensive (income)/loss   (25.6 )   130.4   219.3   61.1
 
Total shareholder's equity   2,602.6     2,048.8   1,841.7   1,887.8
Total liabilities and shareholder's equity $ 10,577.7   $ 9,737.8 $ 10,033.0 $ 10,565.0

* Includes amounts from the European seafood and Tegel® poultry businesses that were discontinued in Fiscal 2006.
 
The following are acquisitions (A) and divestitures (D) that occurred during the respective years:
Fiscal 2004: Unifine Richardson B.V. (A-Canada) and Truesoups LLC (A-U.S. Foodservice).
Fiscal 2005: Shanghai LongFong Foods (A-China), Appetizers And, Inc. (A-U.S. Foodservice), ABAL, S.A. DE C.V (A-Mexico) and Korean oil and fats product line (D).

Fiscal 2006: HP Foods (A-U.K., U.S. and Canada), Petrosoyuz (A-Russia), Nancy's Specialty Foods, Inc. (A-U.S. and Canada), Kabobs, Inc. (A-U.S. Foodservice),

European seafood (D), Tegel® poultry (D- New Zeleand), Hain equity investment (D-U.S.) and HAK® vegetable product line (D- Northern Europe).

Fiscal 2007: Renee's Gourmet Foods (A-Canada), non-core U.S. Foodservice product line (D), U.K. frozen and chilled product line (D) and Argentina pet food business (D).
Fiscal 2008: Cottee's® and Rose's® license (A-Australia and New Zealand), Wyko® brand and sauce business (A) and Portugal tomato paste business (D).

H. J. Heinz Company
Consolidated Statements of Cash Flows
(In Millions)  

 

2004*

   

 

2005*

   

 

2006*

      2007       2008  
 
Cash Flows from Operating Activities
Income from continuing operations $ 804.3 $ 752.7 $ 645.6 $ 785.7 $ 844.9
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation 210.2 227.2 227.5 233.4 250.8
Amortization 23.8 25.3 36.4 32.8 38.1
Deferred tax provision/(benefit) 97.5 53.9 (57.7 ) 52.2 18.5
Other items, net (131.9 ) 144.8 87.1 9.7 6.6
Changes in current assets and liabilities, excluding effects of acquisitions and divestitures:
Receivables 97.2 45.9 115.6 11.0 (55.8 )
Inventories 77.6 (25.3 ) (47.4 ) (82.5 ) (133.6 )
Prepaid expenses and other current assets (5.2 ) 2.6 13.6 14.2 5.7
Accounts payable 46.5 8.1 56.5 56.5 89.2
Accrued liabilities (39.8 ) 25.1 57.4 (4.5 ) 28.3
Income taxes   68.7     (99.4 )   (59.5 )   (46.3 )   95.6  
Cash provided by operating activities     1,249.0     1,160.8     1,075.0     1,062.3     1,188.3  
Investing activities:
Capital expenditures (232.0 ) (240.7 ) (230.6 ) (244.6 ) (301.6 )
Proceeds from disposals of property, plant and equipment   17.0     22.3     19.4     60.7     8.5  
 
Operating Free Cash Flow 1,034.0 942.4 863.8 878.4 895.2
 
Acquisitions, net of cash acquired (112.8 ) (126.5 ) (1,100.4 ) (89.0 ) (151.6 )
Net proceeds/(payments) related to divestitures 71.2 51.2 856.7 (4.1 ) 63.5
Purchases of short-term investments (83.2 ) (293.5 ) - - -
Sales of short-term investments 43.2 333.5 - - -
Other items, net   (4.5 )   (10.2 )   3.1     (49.2 )   (173.0 )
Cash used for investing activities     (301.1 )   (264.1 )   (451.8 )   (326.2 )   (554.2 )
Financing activities:
Payments on long-term debt (74.3 ) (480.5 ) (727.8 ) (52.1 ) (368.2 )
Proceeds from long-term debt - - 230.8 - -
(Payments on)/proceeds from commercial paper and short-term debt, net (144.7 ) 26.5 298.5 384.1 483.7
Dividends (379.9 ) (398.9 ) (408.2 ) (461.2 ) (485.2 )
Purchase of treasury stock (170.1 ) (291.3 ) (823.4 ) (760.7 ) (580.7 )
Exercise of stock options 112.7 79.4 142.0 259.8 78.6
Other items, net   12.5     14.0     18.5     9.2     113.7  
Cash used for financing activities     (643.9 )   (1,050.9 )   (1,269.4 )   (620.9 )   (758.1 )
Cash provided by operating activities of discontinued operations spun-off to Del Monte - 28.2 13.3 33.5 -
Effect of exchange rate changes on cash and cash equivalents   34.3     69.7     (5.4 )   58.8     88.8  
Net increase/(decrease) in cash and cash equivalents 338.3 (56.3 ) (638.3 ) 207.5 (35.2 )
Cash and cash equivalents at beginning of year   801.7     1,140.0     1,083.7     445.4     652.9  
Cash and cash equivalents at end of year $ 1,140.0   $ 1,083.7   $ 445.4   $ 652.9   $ 617.7  

* Includes amounts from the European seafood and Tegel® poultry businesses that were discontinued in Fiscal 2006.