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These excerpts taken from the GIS 10-K filed Jul 11, 2008. Reclassifications During
fiscal 2007, we made certain changes in our reporting of
financial information. The effects of these reclassifications on
our historical Consolidated Financial Statements are reflected
herein and had no impact on our consolidated net earnings or
earnings per share (EPS).
We made a change in accounting principle to classify shipping
costs associated with the distribution of finished products to
our customers as cost of sales. We previously recorded these
costs in selling, general, and administrative (SG&A)
expense. We made this change in principle because we believe the
classification of these shipping costs in cost of sales better
reflects the cost of producing and distributing our products and
aligns our external financial reporting with the results we use
internally to evaluate segment operating performance. The impact
of this change in principle was an increase to cost of sales of
$474.4 million in fiscal 2006, and a corresponding decrease
to SG&A expense in the same period.
We shifted sales responsibility for several customers from our
Bakeries and Foodservice segment to our U.S. Retail
segment. Net sales and segment operating profit for these two
segments have been adjusted to report the results from shifted
businesses within the appropriate segment. The impact of this
shift was a decrease in net sales of our Bakeries and
Foodservice segment and an increase in net sales of our
U.S. Retail segment of $55.0 million in fiscal 2006.
The impact of this shift was a decrease of Bakeries and
Foodservice segment operating profit and an increase of
U.S. Retail segment operating profit of $22.1 million
in fiscal 2006.
We also reclassified (i) certain trade-related costs and
customer allowances as cost of sales or SG&A expense
(previously recorded as reductions of net sales),
(ii) certain liabilities, including trade and consumer
promotion accruals, from accounts payable to other current
liabilities, (iii) certain distributions from joint
ventures as operating cash flows (previously reported as
investing cash flows), (iv) royalties from a joint venture
to after-tax earnings from joint ventures (previously recorded
as a reduction of SG&A expense), (v) certain
receivables, including accrued interest, derivatives, and other
miscellaneous receivables that were historically included in
receivables, to other current assets, and (vi) valuation
allowances related to deferred income tax assets between current
and noncurrent classification. These reclassifications were not
material individually or in the aggregate. We have reclassified
previously reported Consolidated Balance Sheets, Consolidated
Statements of Earnings, and Consolidated Statements of Cash
Flows to conform to the fiscal 2007 presentation.
In addition, certain reclassifications to our previously
reported financial information have been made to conform to the
current period presentation.
Reclassifications During fiscal 2007, we made certain changes in our reporting of financial information. The effects of these reclassifications on our historical Consolidated Financial Statements are reflected herein and had no impact on our consolidated net earnings or earnings per share (EPS). We made a change in accounting principle to classify shipping costs associated with the distribution of finished products to our customers as cost of sales. We previously recorded these costs in selling, general, and administrative (SG&A) expense. We made this change in principle because we believe the classification of these shipping costs in cost of sales better reflects the cost of producing and distributing our products and aligns our external financial reporting with the results we use internally to evaluate segment operating performance. The impact of this change in principle was an increase to cost of sales of $474.4 million in fiscal 2006, and a corresponding decrease to SG&A expense in the same period. We shifted sales responsibility for several customers from our Bakeries and Foodservice segment to our U.S. Retail segment. Net sales and segment operating profit for these two segments have been adjusted to report the results from shifted businesses within the appropriate segment. The impact of this shift was a decrease in net sales of our Bakeries and Foodservice segment and an increase in net sales of our U.S. Retail segment of $55.0 million in fiscal 2006. The impact of this shift was a decrease of Bakeries and Foodservice segment operating profit and an increase of U.S. Retail segment operating profit of $22.1 million in fiscal 2006. We also reclassified (i) certain trade-related costs and customer allowances as cost of sales or SG&A expense (previously recorded as reductions of net sales), (ii) certain liabilities, including trade and consumer promotion accruals, from accounts payable to other current liabilities, (iii) certain distributions from joint ventures as operating cash flows (previously reported as investing cash flows), (iv) royalties from a joint venture to after-tax earnings from joint ventures (previously recorded as a reduction of SG&A expense), (v) certain receivables, including accrued interest, derivatives, and other miscellaneous receivables that were historically included in receivables, to other current assets, and (vi) valuation allowances related to deferred income tax assets between current and noncurrent classification. These reclassifications were not material individually or in the aggregate. We have reclassified previously reported Consolidated Balance Sheets, Consolidated Statements of Earnings, and Consolidated Statements of Cash Flows to conform to the fiscal 2007 presentation. In addition, certain reclassifications to our previously reported financial information have been made to conform to the current period presentation. This excerpt taken from the GIS 10-Q filed Jan 5, 2007. (3) Reclassifications At the beginning of fiscal 2007, we made certain changes in the classifications of revenues and expenses, balance sheet liabilities, and cash flows from joint ventures. We have reclassified previously reported Consolidated Statements of Earnings, Consolidated Balance Sheets and Consolidated Statements of Cash Flows to conform to the current year presentation. These reclassifications had no effect on previously reported net earnings. We made a change in accounting principle to classify shipping costs associated with the distribution of finished products to our customers as cost of sales (previously recorded in selling, general and administrative expense). We made the change in principle because we believe the classification of these shipping costs in cost of sales better reflects the cost of producing and distributing our products and aligns our external financial reporting with the results we use internally to evaluate segment operating performance. The impact of this change in principle was an increase to cost of sales of $136 million in the thirteen weeks ended November 27, 2005 and $240 million in the twenty-six weeks ended November 27, 2005. We also reclassified certain trade-related costs and customer allowances as cost of sales or selling, general and administrative expense (previously recorded as reductions of net sales). The impact of these reclassifications in the thirteen weeks ended November 27, 2005, was an increase to net sales of $21 million, an increase in cost of sales of $27 million, a decrease in selling, general and administrative expense of $5 million and an increase in earnings of joint ventures before taxes of $2 million. The impact of these reclassifications in the twenty-six weeks ended November 27, 2005, was an increase to net sales of $37 million, an increase in cost of sales of $51 million, a decrease in selling, general and administrative expense of $11 million and an increase in earnings of joint ventures before taxes of $3 million. We also reclassified certain liabilities, including trade and consumer promotion accruals, from accounts payable to other current liabilities, and we classified certain distributions from joint ventures as operating cash flows (previously reported as investing cash flows). The impact of this reclassification was a decrease to accounts payable of $443 million at May 28, 2006, and an increase to cash flows from operations of $27 million in the twenty-six weeks ended November 27, 2005. | EXCERPTS ON THIS PAGE:
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