Form 8-K Kraft Foods Group, Inc. For: Apr 28

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 8/13/2026

1. CSCO
2. COHR
3. CBRS
4. SPY
5. WYFI
6. STUB
7. EAT
8. GO
9. NVDA
10. ANDG

April 28, 2015 4:09 PM EDT


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 28, 2015
Kraft Foods Group, Inc.
(Exact name of registrant as specified in its charter)

Commission File Number: 1-35491
Virginia
 
36-3083135
(State or other jurisdiction of incorporation)
 
(IRS Employer Identification No.)

Three Lakes Drive, Northfield, IL 60093-2753
(Address of principal executive offices, including zip code)

(847) 646-2000
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[X]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[X]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





Item 2.02. Results of Operations and Financial Condition.
On April 28, 2015, we issued a press release announcing results for the first quarter ended March 28, 2015. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01. Financial Statements and Exhibits.
(d) The following exhibit is furnished with this Current Report on Form 8-K.
 
 
 
 
Exhibit No.
  
Description
99.1
  
Kraft Foods Group, Inc. Press Release, dated April 28, 2015.











SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
Kraft Foods Group, Inc.
 
 
 
Date: April 28, 2015
By:
/s/ James Kehoe
 
 
James Kehoe
 
 
Executive Vice President and
Chief Financial Officer






Contacts:
Basil Maglaris (media)
Christopher Jakubik, CFA (investors)
 
847-646-4538
847-646-5494
 


KRAFT FOODS GROUP REPORTS FIRST QUARTER 2015 RESULTS

•
Q1 net revenues were essentially flat and Organic Net Revenues1 were up 1.1%
•
Q1 EPS of $0.72 included a negative $0.14 impact due to losses from market-based impacts to post-employment benefit plans1, spending on cost savings initiatives2 and costs related to the proposed merger with H.J. Heinz Holding Corporation

NORTHFIELD, Ill. - April 28, 2015 - Kraft Foods Group, Inc. (NASDAQ: KRFT) today announced financial results that reflected the impact of significant pricing actions taken over the past year as well as a favorable shift in Easter-related shipments versus the prior year.

“Our first quarter results reflected a solid start to 2015,” said Kraft Chairman and CEO John T. Cahill. “We’ve stepped up our focus on execution, our pricing actions over the past year are coming through, and we’re benefiting from a disciplined approach to marketing. There is clearly more work ahead of us, but we will continue to build on this momentum to delight our consumers and customers, and prepare us for the next chapter ahead.”

FIRST QUARTER FINANCIAL SUMMARY
•
Net revenues were down 0.2 percent including a negative impact from currency. Organic Net Revenues were up 1.1 percent driven by a 1.2 percentage point increase from the carryover impact of price increases in previous quarters. Volume/mix was essentially flat and included an approximate 1.0 percentage point benefit from Easter-related shipment timing compared to the prior year. Excluding the Easter-related benefit, gains from the successful launch of McCafé coffee and growth in Exports were more than offset by price-elasticity impacts in the Canada, Cheese and Refrigerated Meals segments, as well as category declines in the Meals & Desserts segment.

1


•
Operating income of $740 million and diluted EPS of $0.72 included a non-cash loss of $77 million ($0.08 per diluted share) from market-based impacts to post-employment benefit plans. Results also included $38 million ($0.04 per diluted share) in spending on cost savings initiatives, $17 million ($0.02 per diluted share) in costs related to the proposed merger with H.J. Heinz Holding Corporation and $2 million in unrealized gains from hedging activities.
Excluding the impact of these factors in both years, operating income grew at a mid-single-digit rate and EPS grew at a high single-digit rate. This was primarily driven by a planned reduction in advertising and consumer spending as well as lower overhead costs. EPS growth was further enhanced by lower net interest expense and average shares outstanding versus the prior year quarter.
•
Free Cash Flow1 was $195 million, up 11.4 percent versus the prior year primarily reflecting working capital improvements.

FIRST QUARTER BUSINESS SEGMENT HIGHLIGHTS
Cheese:
•
Net revenues of $1,020 million increased 1.3 percent driven by the carryover impact of price increases in previous quarters as well as the timing of Easter-related shipments and the ongoing success of last year’s Philadelphia soft cream cheese reinvention. These gains were partially offset by the negative impact to volumes from price increases, particularly in natural cheese and sandwich cheese.
•
Operating income increased 19.8 percent primarily reflecting better alignment of prices and input costs versus the year-ago quarter.
Refrigerated Meals:
•
Net revenues of $833 million increased 2.1 percent from the carryover impact of price increases taken in previous quarters in cold cuts and hot dogs, partially offset by unfavorable volume/mix. The volume loss associated with price increases more than offset the timing benefits of Easter-related shipments, particularly in bacon.
•
Operating income growth of 1.0 percent was tempered by higher spending on cost savings initiatives. Excluding this impact, operating income was up high-single digits as the benefits of higher net pricing were partially offset by unfavorable volume/mix.
Beverages:
•
Net revenues of $702 million grew 4.2 percent from a combination of favorable volume/mix and higher net pricing. Favorable volume/mix was driven by the recent launch of McCafé coffee and increased shipments of Capri Sun ready-to-drink beverages ahead of a planned price increase, partially offset by lower shipments of powdered beverages due

2


to category declines. Higher net pricing reflected the carryover impact of price increases taken in previous quarters in roast and ground coffee.
•
Operating income declined 6.1 percent as higher coffee commodity costs were partially offset by reductions in marketing spending and higher net pricing.
Meals & Desserts:
•
Net revenues of $488 million declined 2.0 percent as the benefit from timing of Easter-related shipments of frozen dessert toppings and dry packaged desserts was more than offset by a combination of category declines in both the meals and desserts categories, market share losses in desserts, and increased promotional activity versus the prior year.
•
Operating income decreased 7.0 percent including higher spending on cost savings initiatives. Excluding this impact, operating income was up high-single digits reflecting the timing of marketing spending versus the prior year and lower manufacturing costs driven by net productivity, that were partially offset by unfavorable volume/mix.
Enhancers & Snack Nuts:
•
Net revenues of $493 million declined 2.0 percent as lower net pricing from the timing of promotional activity versus the prior year more than offset volume/mix gains in Planters snack nuts.
•
Operating income decreased 4.1 percent reflecting lower net pricing and higher nut commodity costs that were partially offset by reductions in marketing spending.
Canada:
•
Net revenues of $382 million declined 10.5 percent due to an unfavorable currency impact. Organic Net Revenue growth of 0.2 percent reflected significant price increases taken in February. These gains were partially offset by volume losses associated with those price increases, particularly in peanut butter and roast and ground coffee.
•
Operating income decreased 6.1 percent including an unfavorable currency impact of 13.6 percentage points. Excluding the currency impact, the increase in operating income reflected higher net pricing and lower marketing spending that were partially offset by higher input costs and unfavorable volume/mix.
Other Businesses:
•
Net revenues of $434 million decreased 0.7 percent. Organic Net Revenue growth was 2.6 percent reflecting strong volume/mix growth from the geographic expansion of the Exports business that was partially offset by lower net pricing from contractually-driven pricing in the Foodservice business, primarily in dairy products.
•
Operating income decreased 18.6 percent as favorable volume/mix was more than offset by lower net pricing as well as investments to grow the Exports business.

3



ABOUT KRAFT FOODS GROUP
Kraft Foods Group, Inc. (NASDAQ: KRFT) is one of North America’s largest consumer packaged food and beverage companies, with annual revenues of more than $18 billion. The company’s iconic brands include Kraft, Capri Sun, JELL-O, Kool-Aid, Lunchables, Maxwell House, Oscar Mayer, Philadelphia, Planters and Velveeta. Kraft’s 22,000 employees in the U.S. and Canada have a passion for making the foods and beverages people love. Kraft is a member of the Standard & Poor’s 500 and the NASDAQ-100 indices. For more information, visit www.kraftfoodsgroup.com and www.facebook.com/kraft.

FORWARD-LOOKING STATEMENTS
This press release contains a number of forward-looking statements. Words such as "reflect," "come," "continue," "build," "execute," "expect," "will," and variations of such words and similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding Kraft’s plans, execution and growth. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties, many of which are beyond Kraft’s control. Important factors that affect Kraft’s business and operations and that may cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, increased competition; Kraft’s ability to maintain, extend and expand its reputation and brand image; Kraft’s ability to differentiate its products from other brands; increasing consolidation of retail customers; changes in relationships with significant customers and suppliers; Kraft’s ability to predict, identify and interpret changes in consumer preferences and demand; Kraft’s ability to drive revenue growth in its key product categories, increase its market share, or add products; volatility in commodity, energy and other input costs; changes in Kraft’s management team or other key personnel; Kraft’s geographic focus in North America; changes in regulations; legal claims or other regulatory enforcement actions; product recalls or product liability claims; unanticipated business disruptions; Kraft’s ability to complete or realize the benefits from potential acquisitions, alliances, divestitures or joint ventures including the proposed merger; Kraft’s indebtedness and ability to pay such indebtedness; disruptions in information technology networks and systems; Kraft’s inability to protect intellectual property rights; weak economic conditions; tax law changes; volatility of market-based impacts to post-employment benefit plans; pricing actions; and other factors. For additional information on these and other factors that could affect Kraft’s forward-looking statements, see Kraft’s risk factors, as they may be amended from time to time, set forth in its filings with the Securities and Exchange Commission, including its most recently filed Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K. Kraft disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation.

4



NON-GAAP AND OTHER FINANCIAL MEASURES
To supplement Kraft’s financial statements presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), Kraft presents Organic Net Revenues and Free Cash Flow, both of which are considered non-GAAP financial measures. The presentations of Organic Net Revenues and Free Cash Flow are intended to supplement investors' understanding of Kraft’s operating results and liquidity. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Kraft’s results prepared in accordance with GAAP. In addition, the non-GAAP measures Kraft uses may differ from non-GAAP measures used by other companies, and other companies may not define the non-GAAP measures Kraft uses in the same way.

Kraft currently defines Organic Net Revenues as net revenues excluding the impact of transactions with Mondelēz International, acquisitions, divestitures (including the termination of a full line of business due to the loss of a licensing or distribution arrangement, and the complete exit of business out of a foreign country), currency and the 53rd week of shipments when it occurs. Management calculates the impact of currency on net revenues by holding exchange rates constant at the previous year's exchange rate. Management believes that presenting Organic Net Revenues is useful to investors because it (i) provides investors meaningful supplemental information regarding financial performance by excluding certain items, (ii) permits investors to view Kraft’s performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate Kraft’s historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating Kraft.

Kraft defines Free Cash Flow as cash flow from operations less capital expenditures. Management believes that Free Cash Flow is useful to investors because it reflects Kraft’s cash available for uses including investments in growth and product development and Kraft’s ability to generate cash while maintaining its fixed assets.

See the attached schedules for supplemental financial data and corresponding reconciliations of Organic Net Revenues to net revenues for the three months ended March 28, 2015 and March 29, 2014 and Free Cash Flow to operating cash flow for the three months ended March 28, 2015 and March 29, 2014.

As previously announced, beginning in 2013, Kraft adopted a mark-to-market accounting policy for Kraft’s post-employment benefit obligations. Kraft discloses market-based impacts in order to provide better transparency to investors in evaluating Kraft. Management currently defines market-based impacts to post-employment benefit plans as the costs or benefits resulting from the change in discount rates, the difference between Kraft’s estimated and actual return on plan

5


assets, and other assumption changes driven by changes in the law or other external factors.

Additional Information Regarding the Proposed Merger and Where to Find It
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. This communication may be deemed to be solicitation material in respect of the proposed transaction between Kraft and The H.J. Heinz Holding Corporation ("Heinz"). In connection with the proposed transaction, Heinz has filed a registration statement on Form S-4, containing a proxy statement/prospectus (the “S-4”) with the Securities and Exchange Commission (“SEC”). This communication is not a substitute for the registration statement, definitive proxy statement/prospectus or any other documents that Heinz or Kraft may file with the SEC or send to shareholders in connection with the proposed transaction. SHAREHOLDERS OF KRAFT ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE PROXY STATEMENT/PROSPECTUS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders may obtain copies of the S-4, including the proxy statement/prospectus, and other documents filed with the SEC (when available) free of charge at the SEC’s website, http://www.sec.gov. Copies of documents filed with the SEC by Kraft are available free of charge on Kraft’s website at http://www.kraftfoodsgroup.com/. Copies of documents filed with the SEC by Heinz are available free of charge on Heinz’s website at http://www.heinz.com/.

Participants in the Solicitation
Kraft and its directors and executive officers, and Heinz and its directors and executive officers, may be deemed to be participants in the solicitation of proxies from the holders of Kraft common stock in respect of the proposed transaction. Information about the directors and executive officers of Kraft is set forth in the proxy statement for Kraft’s 2015 Annual Meeting of Shareholders, which was filed with the SEC on March 18, 2015. Information about the directors and executive officers of Heinz is set forth in the S-4. Investors may obtain additional information regarding the interests of such participants by reading the proxy statement/prospectus regarding the proposed transaction when it becomes available. You may obtain free copies of these documents as described in the preceding paragraph.
_________________________
1 
Please see the discussion of non-GAAP and other financial measures above and the reconciliation to GAAP at the end of this press release.
2 
Cost savings initiatives are related to reorganization activities including severance, asset disposals, and other activities that do not qualify for special accounting treatment as exit or disposal activities.


# # #


6


Schedule 1
Kraft Foods Group, Inc.
Condensed Consolidated Statements of Earnings
For the Three Months Ended
(in millions of dollars, except per share data) (Unaudited)

 
 
March 28,
2015
 
March 29,
2014
 
% Change
Fav / (Unfav)
 
 
 
 
 
 
 
Net revenues
 
$
4,352

 
$
4,362

 
(0.2
)%
Cost of sales1,2
 
3,019

 
2,802

 
(7.7
)%
Gross profit
 
1,333

 
1,560

 
(14.6
)%
Selling, general and administrative expenses1
 
593

 
658

 
9.9
 %
Asset impairment and exit costs1
 
—

 
(2
)
 
(100.0
)%
Operating income
 
740

 
904

 
(18.1
)%
Interest and other expense, net
 
107

 
116

 
7.8
 %
Earnings before income taxes
 
633

 
788

 
(19.7
)%
Provision for income taxes
 
204

 
275

 
25.8
 %
Effective tax rate
 
32.2
%
 
34.9
%
 
 
Net earnings
 
$
429

 
$
513

 
(16.4
)%
Per share data:
 
 
 
 
 
 
Basic earnings per share
 
$
0.73

 
$
0.86

 
(15.1
)%
Diluted earnings per share
 
$
0.72

 
$
0.85

 
(15.3
)%
Weighted average shares of common stock outstanding:
 
 
 
 
 
 
Basic
 
588

 
596

 
1.3
 %
Diluted
 
593

 
601

 
1.3
 %


1
In the first quarter of 2015, Kraft recorded expenses of $38 million in cost savings initiatives. This was comprised of $36 million of expense within cost of sales and $2 million of expense within selling, general and administrative expenses. In the first quarter of 2015, Kraft also recorded $17 million of proposed merger transaction costs within selling, general and administrative expenses. In the first quarter of 2014, Kraft recorded net expenses of $14 million in cost savings initiatives. This was comprised of $7 million of expense within cost of sales; $9 million of expense within selling, general and administrative expenses; and $2 million of income within asset impairment and exit costs.
 
 
2
In the first quarter of 2015, Kraft recorded $77 million of pre-tax expense within cost of sales related to market-based impacts to certain post-employment benefit plans as the company recognized remeasurement expenses previously capitalized into inventory at year-end. This expense amounted to $48 million after-tax, and had a $0.08 unfavorable impact on EPS. In the first quarter of 2014, Kraft recorded $49 million of pre-tax income within cost of sales related to market-based impacts to certain post-employment benefit plans as the company recognized a remeasurement benefit previously capitalized into inventory at year-end. This benefit amounted to $10 million after-tax, and had a $0.02 favorable impact on first quarter 2014 EPS. There were no post-employment benefit plan remeasurements in the first quarter of 2015 or 2014.

7


Schedule 2
Kraft Foods Group, Inc.
Reconciliation of GAAP to Non-GAAP Information
Net Revenues
For the Three Months Ended
(in millions of dollars) (Unaudited)
 
 
 
 
 
 
 
 
 
 
% Change
 
 
Organic Growth Drivers
 
Reported
(GAAP)
 
Impact of Currency
 
Sales to
Mondelēz
International
 
Organic
(Non-GAAP)
 
 
Reported
(GAAP)
 
Organic
(Non-GAAP)
 
 
Vol / Mix
 
Price
March 28, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cheese
$
1,020

 
$
—

 
$
(13
)
 
$
1,007

 
 
1.3
 %
 
1.1
 %
 
 
(1.6)pp
 
2.7 pp
Refrigerated Meals
833

 
—

 
—

 
833

 
 
2.1
 %
 
2.1
 %
 
 
(1.1)pp
 
3.2 pp
Beverages
702

 
—

 
—

 
702

 
 
4.2
 %
 
4.2
 %
 
 
2.7 pp
 
1.5 pp
Meals & Desserts
488

 
—

 
—

 
488

 
 
(2.0
)%
 
(2.0
)%
 
 
(1.6)pp
 
(0.4)pp
Enhancers & Snack Nuts
493

 
—

 
—

 
493

 
 
(2.0
)%
 
(2.0
)%
 
 
1.0 pp
 
(3.0)pp
Canada
382

 
47

 
(5
)
 
424

 
 
(10.5
)%
 
0.2
 %
 
 
(3.8)pp
 
4.0 pp
Other Businesses
434

 
6

 
(10
)
 
430

 
 
(0.7
)%
 
2.6
 %
 
 
5.3 pp
 
(2.7)pp
Kraft Foods Group, Inc.
$
4,352

 
$
53

 
$
(28
)
 
$
4,377

 
 
(0.2
)%
 
1.1
 %
 
 
(0.1)pp
 
1.2 pp
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 29, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cheese
$
1,007

 
$
—

 
$
(11
)
 
$
996

 
 
 
 
 
 
 
 
 
 
Refrigerated Meals
816

 
—

 
—

 
816

 
 
 
 
 
 
 
 
 
 
Beverages
674

 
—

 
—

 
674

 
 
 
 
 
 
 
 
 
 
Meals & Desserts
498

 
—

 
—

 
498

 
 
 
 
 
 
 
 
 
 
Enhancers & Snack Nuts
503

 
—

 
—

 
503

 
 
 
 
 
 
 
 
 
 
Canada
427

 
—

 
(4
)
 
423

 
 
 
 
 
 
 
 
 
 
Other Businesses
437

 
—

 
(18
)
 
419

 
 
 
 
 
 
 
 
 
 
Kraft Foods Group, Inc.
$
4,362

 
$
—

 
$
(33
)
 
$
4,329

 
 
 
 
 
 
 
 
 
 


8


Schedule 3
Kraft Foods Group, Inc.
Operating Income
For the Three Months Ended
(in millions of dollars) (Unaudited)
 
Reported (GAAP)
 
 
 
March 28,
2015
 
March 29,
2014
 
% Change
Fav / (Unfav)
Operating Income:
 
 
 
 
 
Cheese
$
224

 
$
187

 
19.8
 %
Refrigerated Meals
97

 
96

 
1.0
 %
Beverages
123

 
131

 
(6.1
)%
Meals & Desserts
132

 
142

 
(7.0
)%
Enhancers & Snack Nuts
142

 
148

 
(4.1
)%
Canada
62

 
66

 
(6.1
)%
Other Businesses
48

 
59

 
(18.6
)%
Market-based impacts to post-employment benefit plans
(77
)
 
49

 
 
Certain other post-employment benefit plan income
16

 
11

 
 
Unrealized gains on hedging activities
2

 
42

 
 
Proposed merger transaction costs
(17
)
 
—

 
 
General corporate expenses
(12
)
 
(27
)
 
 
Kraft Foods Group, Inc.
$
740

 
$
904

 
(18.1
)%

Note: In the first quarter of 2015, Kraft recorded expenses of $38 million related to cost savings initiatives within segment operating income as follows: Cheese ($1 million); Refrigerated Meals ($10 million); Beverages ($1 million); Meals & Desserts ($22 million); Canada ($3 million); and Other Businesses ($1 million). In the first quarter of 2014, Kraft recorded net expenses of $14 million related to cost savings initiatives within segment operating income and general corporate expenses as follows: expenses in Cheese ($4 million); expenses in Refrigerated Meals ($2 million); income in Beverages ($1 million); expenses in Enhancers & Snack Nuts ($4 million); and expenses in General corporate expenses ($5 million).


9


Schedule 4
Kraft Foods Group, Inc.
Condensed Consolidated Balance Sheets
(in millions of dollars) (Unaudited)

 
March 28,
2015
 
December 27,
2014
ASSETS
 
 
 
Cash and cash equivalents
$
1,178

 
$
1,293

Receivables (net of allowances of $21 in 2015 and 2014)
1,219

 
1,080

Inventories
1,886

 
1,775

Deferred income taxes
382

 
384

Other current assets
339

 
259

Total current assets
5,004

 
4,791

Property, plant and equipment, net
4,194

 
4,192

Goodwill
11,313

 
11,404

Intangible assets, net
2,238

 
2,234

Other assets
385

 
326

TOTAL ASSETS
$
23,134

 
$
22,947

 
 
 
 
LIABILITIES
 
 
 
Current portion of long-term debt
$
1,406

 
$
1,405

Accounts payable
1,629

 
1,537

Accrued marketing
500

 
511

Accrued employment costs
84

 
163

Dividends payable
326

 
324

Accrued post-retirement health care costs
191

 
192

Other current liabilities
748

 
641

Total current liabilities
4,884

 
4,773

Long-term debt
8,626

 
8,627

Deferred income taxes
292

 
340

Accrued pension costs
1,100

 
1,105

Accrued post-retirement health care costs
3,380

 
3,399

Other liabilities
335

 
338

TOTAL LIABILITIES
18,617

 
18,582

EQUITY
 
 
 
Common stock, no par value (5,000,000,000 shares authorized; 604,583,114 shares issued at March 28, 2015 and 601,402,816 at December 27, 2014)
—

 
—

Additional paid-in capital
4,820

 
4,678

Retained earnings
1,148

 
1,045

Accumulated other comprehensive losses
(634
)
 
(562
)
Treasury stock, at cost
(817
)
 
(796
)
TOTAL EQUITY
4,517

 
4,365

TOTAL LIABILITIES AND EQUITY
$
23,134

 
$
22,947



10


Schedule 5
Kraft Foods Group, Inc.
Reconciliation of GAAP to Non-GAAP Information
Free Cash Flows
For the Three Months Ended
(in millions of dollars) (Unaudited)

 
 
March 28,
2015
 
March 29,
2014
Net earnings
 
$
429

 
$
513

Depreciation and amortization
 
102

 
96

Receivables, net
 
(129
)
 
(149
)
Inventories
 
(198
)
 
(243
)
Accounts payable
 
89

 
37

Other
 
41

 
(3
)
Operating cash flow
 
334

 
251

Capital expenditures
 
(139
)
 
(76
)
Free cash flow
 
$
195

 
$
175



11

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings