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FO » Topics » PRO FORMA BALANCE SHEET ADJUSTMENTS

This excerpt taken from the FO 8-K filed Apr 7, 2006.

PRO FORMA BALANCE SHEET ADJUSTMENTS

 

(a) Financial reporting as of September 30, 2005 was in accordance with Financial Accounting Standards Board Interpretation No. 46(R), (FIN 46R), “Consolidation of Variable Interest Entities.” Many of the acquired businesses are assets commingled in entities that own other assets which will not be acquired by Fortune Brands and were acquired by Pernod Ricard S.A. Determination of the fair values of the acquired businesses under FIN 46R requires management to make estimates and assumptions related to the commingled interests that affect the reported amounts of assets, liabilities, sales and expenses for the reporting periods. Actual results for future periods could differ from those estimates. In accordance with FIN 46R, some of these entities were consolidated and Fortune Brands recognized minority interest for any Pernod Ricard assets at estimated fair values, and other of these entities were not consolidated and were accounted for as an investment using the cost method. Because the pro forma information must be reported as if the acquired businesses were transferred to Fortune Brands as of January 1, 2004, the information in this column adjusts reported financial information to a basis as if all of the Fortune interests in the acquired businesses were consolidated as of January 1, 2004.

 

(b) Represents payment of estimated deferred debt issuance costs and associated deferred charges.

 

(c) The Company expects to refinance approximately $2.75 billion of its commercial paper borrowings, which are currently classified as long-term borrowings, with the issuance of new long-term debt. The maturities will range from 3 years to 30 years and the interest rate is expected to be approximately 4.8%.

 

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This excerpt taken from the FO 8-K filed Jan 4, 2006.

PRO FORMA BALANCE SHEET ADJUSTMENTS

 

(a) Financial reporting as of September 30, 2005 was in accordance with Financial Accounting Standards Board Interpretation No. 46(R), (FIN 46R), “Consolidation of Variable Interest Entities.” Many of the acquired businesses are assets commingled in entities that own other assets which will not be acquired by Fortune Brands and were acquired by Pernod Ricard S.A. Determination of the fair values of the acquired businesses under FIN 46R requires management to make estimates and assumptions related to the commingled interests that affect the reported amounts of assets, liabilities, sales and expenses for the reporting periods. Actual results for future periods could differ from those estimates. In accordance with FIN 46R, some of these entities were consolidated and Fortune Brands recognized minority interest for any Pernod Ricard assets at estimated fair values, and other of these entities were not consolidated and were accounted for as an investment using the cost method. Because the pro forma information must be reported as if the acquired businesses were transferred to Fortune Brands as of January 1, 2004, the information in this column adjusts reported financial information to a basis as if all of the Fortune interests in the acquired businesses were consolidated as of January 1, 2004.

 

(b) Represents payment of estimated deferred debt issuance costs and associated deferred charges.

 

(c) The Company expects to refinance approximately $2.75 billion of its commercial paper borrowings, which are currently classified as long-term borrowings, with the issuance of new long-term debt. The maturities will range from 3 years to 30 years and the interest rate is expected to be approximately 4.8%.

 

F-7

EXCERPTS ON THIS PAGE:

8-K
Apr 7, 2006
8-K
Jan 4, 2006

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