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Exit or Disposal Activities
3 Months Ended
Mar. 31, 2012
Exit or Disposal Activities [Abstract]  
Exit or Disposal Activities [Text Block]

Note 3 Exit or disposal activities

The Company views its continued spending on cost-reduction activities as part of its ongoing operating principles to provide greater visibility in achieving its long-term profit growth targets. Initiatives undertaken are expected to recover cash implementation costs within a five-year period of completion. Upon completion (or as each major stage is completed in the case of multi-year programs), the project begins to deliver cash savings and/or reduced depreciation.

Costs summary

During the quarter ended March 31, 2012, the Company recorded less than $1 million of exit costs related to two ongoing programs which will result in cost of goods sold (COGS) and selling, general and administrative (SGA) expense savings. During the quarter ended April 2, 2011, the company recorded $5 million of costs associated with exit or disposal activities in our European reportable segment, $4 million represented severance and $1 million for asset write-offs. Based on forecasted exchange rates, the Company currently expects to incur an additional $5 million in exit costs for these programs in 2012.

Total program costs incurred for these programs through March 31, 2012 were $92 million and includes $45 million for severance, $23 million for other cash costs including relocation of assets and employees, $20 million for pension costs and $4 million for asset write-offs. The costs impacted our reportable segments, as follows (in millions): U.S. Morning Foods and Kashi-$10; U.S. Snacks-$33; U.S. Specialty-$2; North America Other-$3; Europe-$39; Asia Pacific-$4; and Latin America-$1.

Refer to the footnotes within the Company's 2011 Annual Report on Form 10-K for further information on these initiatives.