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These excerpts taken from the GIS 10-K filed Jul 11, 2008. Joint
Ventures In addition to our consolidated
operations, we participate in several joint ventures.
International Joint Ventures We have a
50 percent equity interest in CPW, which manufactures and
markets ready-to-eat cereal products in more than 130 countries
and republics outside the United States and Canada. CPW also
markets cereal bars in several European countries and
manufactures private label cereals for customers in the United
Kingdom. Results from our CPW joint venture are reported for the
12 months ended March 31. On July 14, 2006, CPW
acquired the Uncle Tobys cereal business in Australia for
$385.6 million. We funded our 50 percent share of the
purchase price by making additional advances to and equity
contributions in CPW totaling $135.1 million (classified as
investments in affiliates, net on the Consolidated Statements of
Cash Flows) and by acquiring a 50 percent undivided
interest in certain intellectual property for $57.7 million
(classified as acquisitions on the Consolidated Statements of
Cash Flows). We funded the advances to and our equity
contribution in CPW from cash generated by our international
operations, including our international joint ventures.
We have 50 percent equity interests in Häagen-Dazs
Japan, Inc. and Häagen-Dazs Korea Company. These joint
ventures manufacture, distribute, and market Häagen-Dazs
ice cream products and frozen novelties. In fiscal 2007, we
changed the reporting period for the Häagen-Dazs joint
ventures. Accordingly, fiscal 2007 includes only 11 months
of results from these joint ventures compared to 12 months
in fiscal 2008 and fiscal 2006.
Domestic Joint Venture During fiscal 2008,
the 8th Continent soy milk business was sold, and our
50 percent share of the after-tax gain on the sale was
$2.2 million, of which $1.7 million was recorded in
fiscal 2008. We will record an additional gain in
Table of Contents
the first quarter of fiscal 2010 if certain conditions related
to the sale are satisfied.
Our share of after-tax joint venture earnings increased from
$72.7 million in fiscal 2007 to $110.8 million in
fiscal 2008. This growth was largely driven by strong sales
growth, favorable foreign exchange, and our share of the gain
from the sale of a property.
Our after-tax share of CPW restructuring, impairment, and other
exit costs pursuant to approved plans during fiscal 2008 and
prior years was as follows:
Our share of after-tax joint venture earnings increased from
$69.2 million in fiscal 2006 to $72.7 million in
fiscal 2007. This growth was largely driven by strong core brand
volume and organic net sales growth, new product innovation, and
increases in brand-building consumer marketing spending,
partially offset by a $2.0 million impact of the change in
reporting period for the Häagen-Dazs joint ventures and a
$8.2 million restructuring charge in 2007.
The change in net sales for each joint venture is set forth in
the following table:
Joint Ventures In addition to our consolidated operations, we participate in several joint ventures. International Joint Ventures We have a 50 percent equity interest in CPW, which manufactures and markets ready-to-eat cereal products in more than 130 countries and republics outside the United States and Canada. CPW also markets cereal bars in several European countries and manufactures private label cereals for customers in the United Kingdom. Results from our CPW joint venture are reported for the 12 months ended March 31. On July 14, 2006, CPW acquired the Uncle Tobys cereal business in Australia for $385.6 million. We funded our 50 percent share of the purchase price by making additional advances to and equity contributions in CPW totaling $135.1 million (classified as investments in affiliates, net on the Consolidated Statements of Cash Flows) and by acquiring a 50 percent undivided interest in certain intellectual property for $57.7 million (classified as acquisitions on the Consolidated Statements of Cash Flows). We funded the advances to and our equity contribution in CPW from cash generated by our international operations, including our international joint ventures. We have 50 percent equity interests in Häagen-Dazs Japan, Inc. and Häagen-Dazs Korea Company. These joint ventures manufacture, distribute, and market Häagen-Dazs ice cream products and frozen novelties. In fiscal 2007, we changed the reporting period for the Häagen-Dazs joint ventures. Accordingly, fiscal 2007 includes only 11 months of results from these joint ventures compared to 12 months in fiscal 2008 and fiscal 2006. Domestic Joint Venture During fiscal 2008, the 8th Continent soy milk business was sold, and our 50 percent share of the after-tax gain on the sale was $2.2 million, of which $1.7 million was recorded in fiscal 2008. We will record an additional gain in
Table of Contentsthe first quarter of fiscal 2010 if certain conditions related to the sale are satisfied. Our share of after-tax joint venture earnings increased from $72.7 million in fiscal 2007 to $110.8 million in fiscal 2008. This growth was largely driven by strong sales growth, favorable foreign exchange, and our share of the gain from the sale of a property. Our after-tax share of CPW restructuring, impairment, and other exit costs pursuant to approved plans during fiscal 2008 and prior years was as follows:
Our share of after-tax joint venture earnings increased from $69.2 million in fiscal 2006 to $72.7 million in fiscal 2007. This growth was largely driven by strong core brand volume and organic net sales growth, new product innovation, and increases in brand-building consumer marketing spending, partially offset by a $2.0 million impact of the change in reporting period for the Häagen-Dazs joint ventures and a $8.2 million restructuring charge in 2007. The change in net sales for each joint venture is set forth in the following table: This excerpt taken from the GIS 8-K filed Jun 28, 2007. Joint Ventures
After-tax earnings from joint ventures totaled $73 million in 2007, up 6 percent on strong earnings growth for Cereal Partners Worldwide (CPW). These results include restructuring expense of $8 million after-tax in both years related to the CPW plant restructuring under way in the United Kingdom. Fourth quarter after-tax earnings from joint ventures totaled $15 million, up from $12 million a year earlier. CPW restructuring expenses included in the quarterly results totaled $1 million in 2007 and $8 million in 2006.
This excerpt taken from the GIS 8-K filed Jun 29, 2006. Joint Ventures
After-tax earnings from joint ventures totaled $64 million in 2006, below prior-year results primarily due to the absence of Snack Ventures Europe earnings. In addition, fourth quarter results include $8 million of expenses related to the restructuring project under way for Cereal Partners Worldwide (CPW) in the United Kingdom. Earnings from ongoing joint venture operations grew 5 percent for the year, including the restructuring charge. CPW unit volume grew 6 percent in 2006 and net sales grew 4 percent, restrained by unfavorable foreign exchange. Net sales for the Haagen-Dazs ice cream joint ventures in Asia were down 7 percent due to an unseasonably cold winter and increased competitive pressure in Japan. 8th Continent, the U.S. joint venture with DuPont, posted 14 percent net sales growth for its line of soy beverages. Fourth quarter after-tax earnings from joint ventures totaled $10 million in 2006, down from $16 million last year due to the CPW restructuring expenses.
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