New Jersey
|
|
1-3822
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21-0419870
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State of Incorporation
|
|
Commission File Number
|
|
I.R.S. Employer
Identification No.
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Capital Stock, par value $.0375
|
CPB
|
New York Stock Exchange
|
(d)
|
Exhibits
|
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|
|
99.1
|
|
Release dated August 30, 2019 announcing financial results for the quarter and year ended July 28, 2019.
|
|
|
CAMPBELL SOUP COMPANY
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
|
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Date: August 30, 2019
|
By:
|
/s/ Anthony P. DiSilvestro
|
|
|
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Anthony P. DiSilvestro
|
|
|
|
Senior Vice President and Chief Financial Officer
|
|
|
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INVESTOR CONTACT:
|
|
MEDIA CONTACT:
|
|
Ken Gosnell
|
|
Thomas Hushen
|
|
(856) 342-6081
|
|
(856) 342-5227
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|
ken_gosnell@campbellsoup.com
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|
thomas_hushen@campbellsoup.com
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•
|
Fourth-Quarter Loss Per Share from Continuing Operations of $0.02
|
•
|
Fourth-Quarter Net Sales and Organic Sales from Continuing Operations Increased 2 Percent
|
•
|
Campbell International Reported as Discontinued Operations
|
•
|
Fourth-Quarter Results Comprising Continuing Operations and Campbell International (as Previously Guided) were: Net Sales of $2.024 Billion; Adjusted Earnings Per Share (EPS) of $0.50
|
•
|
Campbell Provides Fiscal 2020 Guidance for Continuing Operations
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||
($ in millions, except per share)
|
Jul. 28, 2019
|
|
Jul. 29, 2018
|
|
% Change
|
|
Jul. 28, 2019
|
|
Jul. 29, 2018
|
|
% Change
|
Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales as Reported (GAAP)
|
$1,780
|
|
$1,745
|
|
2%
|
|
$8,107
|
|
$6,615
|
|
23%
|
Organic
|
|
|
|
|
2%
|
|
|
|
|
|
—%
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT as Reported (GAAP)
|
$83
|
|
$252
|
|
(67)%
|
|
$979
|
|
$1,010
|
|
(3)%
|
Adjusted EBIT
|
$252
|
|
$250
|
|
1%
|
|
$1,266
|
|
$1,252
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Share:
|
|
|
|
|
|
|
|
|
|
|
|
As Reported (GAAP)
|
($0.02)
|
|
$0.42
|
|
n/m
|
|
$1.57
|
|
$2.40
|
|
(35)%
|
Adjusted EPS
|
$0.42
|
|
$0.37
|
|
14%
|
|
$2.30
|
|
$2.51
|
|
(8)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined Results (Continuing Operations and Campbell International)
|
|
|
|
|
|
|
|
|
|
|
|
Combined Net Sales
|
$2,024
|
|
$1,992
|
|
2%
|
|
$9,153
|
|
$7,735
|
|
18%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Combined EBIT
|
$288
|
|
$282
|
|
2%
|
|
$1,422
|
|
$1,433
|
|
(1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Combined Diluted EPS
|
$0.50
|
|
$0.44
|
|
14%
|
|
$2.63
|
|
$2.90
|
|
(9)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company Results
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Net Earnings Per Share:
|
|
|
|
|
|
|
|
|
|
|
|
As Reported (GAAP)
|
($0.03)
|
|
$0.31
|
|
n/m
|
|
$0.70
|
|
$0.86
|
|
(19)%
|
Adjusted Net EPS
|
$0.49
|
|
$0.25
|
|
96%
|
|
$2.62
|
|
$2.87
|
|
(9)%
|
Continuing Operations
|
|
|
2019
Results
|
|
|
|
2020
Guidance
|
($ in millions, except per share)
|
|
|
|
|
|
|
|
Net Sales
|
|
|
$8,107
|
|
|
|
+1 to +3%
|
|
|
|
|
|
|
|
|
Adjusted EBIT
|
|
|
$1,266*
|
|
|
|
+2 to +4%
|
|
|
|
|
|
|
|
|
Adjusted EPS
|
|
|
$2.30*
|
|
|
|
+9 to +11%
$2.50 to $2.55
|
|
Three Months Ended Jul. 28, 2019
|
||||
|
($ in millions)
|
||||
|
Meals & Beverages
|
|
Snacks
|
|
Total
|
Net Sales, as Reported
|
$813
|
|
$967
|
|
$1,780
|
|
|
|
|
|
|
Volume and Mix
|
—%
|
|
3%
|
|
1%
|
Price and Sales Allowances
|
1%
|
|
1%
|
|
1%
|
Promotional Spending
|
—%
|
|
—%
|
|
—%
|
Organic Net Sales
|
1%
|
|
4%
|
|
2%
|
Currency
|
—%
|
|
—%
|
|
—%
|
% Change vs. Prior Year
|
—%*
|
|
3%*
|
|
2%
|
|
|
|
|
|
|
Segment Operating Earnings
|
$151
|
|
$133
|
|
|
% Change vs. Prior Year
|
(3)%
|
|
2%
|
|
|
|
Twelve Months Ended Jul. 28, 2019
|
||||
|
($ in millions)
|
||||
|
Meals & Beverages
|
|
Snacks
|
|
Total
|
Net Sales, as Reported
|
$4,322
|
|
$3,784
|
|
$8,107**
|
|
|
|
|
|
|
Volume and Mix
|
(1)%
|
|
3%
|
|
—%
|
Price and Sales Allowances
|
—%
|
|
—%
|
|
—%
|
Promotional Spending
|
(1)%
|
|
1%
|
|
—%
|
Organic Net Sales
|
(2)%
|
|
3%*
|
|
—%
|
Currency
|
—%
|
|
—%
|
|
—%
|
Acquisitions
|
2%
|
|
61%
|
|
23%
|
% Change vs. Prior Year
|
—%
|
|
64%
|
|
23%
|
|
|
|
|
|
|
Segment Operating Earnings
|
$903
|
|
$514
|
|
|
% Change vs. Prior Year
|
(9)%
|
|
34%
|
|
|
|
|
Three Months Ended
|
||||||
|
|
July 28, 2019
|
|
July 29, 2018
|
||||
Net sales
|
|
$
|
1,780
|
|
|
$
|
1,745
|
|
Costs and expenses
|
|
|
|
|
||||
Cost of products sold
|
|
1,174
|
|
|
1,197
|
|
||
Marketing and selling expenses
|
|
195
|
|
|
178
|
|
||
Administrative expenses
|
|
166
|
|
|
159
|
|
||
Research and development expenses
|
|
25
|
|
|
21
|
|
||
Other expenses / (income)
|
|
128
|
|
|
(66
|
)
|
||
Restructuring charges
|
|
9
|
|
|
4
|
|
||
Total costs and expenses
|
|
1,697
|
|
|
1,493
|
|
||
Earnings before interest and taxes
|
|
83
|
|
|
252
|
|
||
Interest, net
|
|
84
|
|
|
89
|
|
||
Earnings (loss) before taxes
|
|
(1
|
)
|
|
163
|
|
||
Taxes on earnings
|
|
4
|
|
|
37
|
|
||
Earnings (loss) from continuing operations
|
|
(5
|
)
|
|
126
|
|
||
Loss from discontinued operations
|
|
(3
|
)
|
|
(32
|
)
|
||
Net earnings (loss)
|
|
(8
|
)
|
|
94
|
|
||
Net loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
||
Net earnings (loss) attributable to Campbell Soup Company
|
|
$
|
(8
|
)
|
|
$
|
94
|
|
Per share - basic
|
|
|
|
|
||||
Earnings (loss) from continuing operations attributable to Campbell Soup Company
|
|
$
|
(.02
|
)
|
|
$
|
.42
|
|
Loss from discontinued operations
|
|
(.01
|
)
|
|
(.11
|
)
|
||
Net earnings (loss) attributable to Campbell Soup Company
|
|
$
|
(.03
|
)
|
|
$
|
.31
|
|
Dividends
|
|
$
|
.35
|
|
|
$
|
.35
|
|
Weighted average shares outstanding - basic
|
|
301
|
|
|
301
|
|
||
Earnings per share - assuming dilution
|
|
|
|
|
||||
From continuing operations attributable to Campbell Soup Company
|
|
$
|
(.02
|
)
|
|
$
|
.42
|
|
From discontinued operations
|
|
(.01
|
)
|
|
(.11
|
)
|
||
Net attributable to Campbell Soup Company
|
|
$
|
(.03
|
)
|
|
$
|
.31
|
|
Weighted average shares outstanding - assuming dilution
|
|
301
|
|
|
302
|
|
|
|
Twelve Months Ended
|
||||||
|
|
July 28, 2019
|
|
July 29, 2018
|
||||
Net sales
|
|
$
|
8,107
|
|
|
$
|
6,615
|
|
Costs and expenses
|
|
|
|
|
||||
Cost of products sold
|
|
5,414
|
|
|
4,241
|
|
||
Marketing and selling expenses
|
|
842
|
|
|
728
|
|
||
Administrative expenses
|
|
610
|
|
|
563
|
|
||
Research and development expenses
|
|
91
|
|
|
91
|
|
||
Other expenses / (income)
|
|
140
|
|
|
(73
|
)
|
||
Restructuring charges
|
|
31
|
|
|
55
|
|
||
Total costs and expenses
|
|
7,128
|
|
|
5,605
|
|
||
Earnings before interest and taxes
|
|
979
|
|
|
1,010
|
|
||
Interest, net
|
|
354
|
|
|
180
|
|
||
Earnings before taxes
|
|
625
|
|
|
830
|
|
||
Taxes on earnings
|
|
151
|
|
|
106
|
|
||
Earnings from continuing operations
|
|
474
|
|
|
724
|
|
||
Loss from discontinued operations
|
|
(263
|
)
|
|
(463
|
)
|
||
Net earnings
|
|
211
|
|
|
261
|
|
||
Net loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
||
Net earnings attributable to Campbell Soup Company
|
|
$
|
211
|
|
|
$
|
261
|
|
Per share - basic
|
|
|
|
|
||||
Earnings from continuing operations attributable to Campbell Soup Company
|
|
$
|
1.57
|
|
|
$
|
2.41
|
|
Loss from discontinued operations
|
|
(.87
|
)
|
|
(1.54
|
)
|
||
Net earnings attributable to Campbell Soup Company
|
|
$
|
.70
|
|
|
$
|
.87
|
|
Dividends
|
|
$
|
1.40
|
|
|
$
|
1.40
|
|
Weighted average shares outstanding - basic
|
|
301
|
|
|
301
|
|
||
Per share - assuming dilution
|
|
|
|
|
||||
Earnings from continuing operations attributable to Campbell Soup Company
|
|
$
|
1.57
|
|
|
$
|
2.40
|
|
Loss from discontinued operations
|
|
(.87
|
)
|
|
(1.53
|
)
|
||
Net earnings attributable to Campbell Soup Company*
|
|
$
|
.70
|
|
|
$
|
.86
|
|
Weighted average shares outstanding - assuming dilution
|
|
302
|
|
|
302
|
|
|
Three Months Ended
|
|
|
||||||
|
July 28, 2019
|
|
July 29, 2018
|
|
Percent
Change
|
||||
Sales
|
|
|
|
|
|
||||
Contributions:
|
|
|
|
|
|
||||
Meals & Beverages
|
$
|
813
|
|
|
$
|
809
|
|
|
—%
|
Snacks
|
967
|
|
|
936
|
|
|
3%
|
||
Total sales
|
$
|
1,780
|
|
|
$
|
1,745
|
|
|
2%
|
Earnings
|
|
|
|
|
|
||||
Contributions:
|
|
|
|
|
|
||||
Meals & Beverages
|
$
|
151
|
|
|
$
|
156
|
|
|
(3)%
|
Snacks
|
133
|
|
|
131
|
|
|
2%
|
||
Total operating earnings
|
284
|
|
|
287
|
|
|
(1)%
|
||
Corporate
|
(192
|
)
|
|
(31
|
)
|
|
|
||
Restructuring charges
|
(9
|
)
|
|
(4
|
)
|
|
|
||
Earnings before interest and taxes
|
83
|
|
|
252
|
|
|
(67)%
|
||
Interest, net
|
84
|
|
|
89
|
|
|
|
||
Taxes on earnings
|
4
|
|
|
37
|
|
|
|
||
Earnings (loss) from continuing operations
|
(5
|
)
|
|
126
|
|
|
|
||
Loss from discontinued operations
|
(3
|
)
|
|
(32
|
)
|
|
|
||
Net earnings (loss)
|
(8
|
)
|
|
94
|
|
|
n/m
|
||
Net loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
|
||
Net earnings (loss) attributable to Campbell Soup Company
|
$
|
(8
|
)
|
|
$
|
94
|
|
|
n/m
|
Earnings per share - assuming dilution
|
|
|
|
|
|
||||
From continuing operations attributable to Campbell Soup Company
|
$
|
(.02
|
)
|
|
$
|
.42
|
|
|
|
From discontinued operations
|
(.01
|
)
|
|
(.11
|
)
|
|
|
||
Net attributable to Campbell Soup Company
|
$
|
(.03
|
)
|
|
$
|
.31
|
|
|
n/m
|
|
Twelve Months Ended
|
|
|
||||||
|
July 28, 2019
|
|
July 29, 2018
|
|
Percent
Change
|
||||
Sales
|
|
|
|
|
|
||||
Contributions:
|
|
|
|
|
|
||||
Meals & Beverages
|
$
|
4,322
|
|
|
$
|
4,305
|
|
|
—%
|
Snacks
|
3,784
|
|
|
2,307
|
|
|
64%
|
||
Corporate
|
1
|
|
|
3
|
|
|
n/m
|
||
Total sales
|
$
|
8,107
|
|
|
$
|
6,615
|
|
|
23%
|
Earnings
|
|
|
|
|
|
||||
Contributions:
|
|
|
|
|
|
||||
Meals & Beverages
|
$
|
903
|
|
|
$
|
988
|
|
|
(9)%
|
Snacks
|
514
|
|
|
383
|
|
|
34%
|
||
Total operating earnings
|
1,417
|
|
|
1,371
|
|
|
3%
|
||
Corporate
|
(407
|
)
|
|
(306
|
)
|
|
|
||
Restructuring charges
|
(31
|
)
|
|
(55
|
)
|
|
|
||
Earnings before interest and taxes
|
979
|
|
|
1,010
|
|
|
(3)%
|
||
Interest, net
|
354
|
|
|
180
|
|
|
|
||
Taxes on earnings
|
151
|
|
|
106
|
|
|
|
||
Earnings from continuing operations
|
474
|
|
|
724
|
|
|
|
||
Loss from discontinued operations
|
(263
|
)
|
|
(463
|
)
|
|
|
||
Net earnings
|
211
|
|
|
261
|
|
|
(19)%
|
||
Net loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
|
||
Net earnings attributable to Campbell Soup Company
|
$
|
211
|
|
|
$
|
261
|
|
|
(19)%
|
Per share - assuming dilution
|
|
|
|
|
|
||||
Earnings from continuing operations attributable to Campbell Soup Company
|
$
|
1.57
|
|
|
$
|
2.40
|
|
|
|
Loss from discontinued operations
|
(.87
|
)
|
|
(1.53
|
)
|
|
|
||
Net earnings attributable to Campbell Soup Company*
|
$
|
.70
|
|
|
$
|
.86
|
|
|
(19)%
|
|
July 28, 2019
|
|
July 29, 2018
|
||||
Current assets
|
$
|
1,539
|
|
|
$
|
1,570
|
|
Current assets of discontinued operations
|
428
|
|
|
726
|
|
||
Plant assets, net
|
2,455
|
|
|
2,466
|
|
||
Intangible assets, net
|
7,432
|
|
|
7,528
|
|
||
Other assets
|
127
|
|
|
189
|
|
||
Noncurrent assets of discontinued operations
|
1,167
|
|
|
2,050
|
|
||
Total assets
|
$
|
13,148
|
|
|
$
|
14,529
|
|
Current liabilities
|
$
|
2,916
|
|
|
$
|
2,863
|
|
Current liabilities of discontinued operations
|
469
|
|
|
731
|
|
||
Long-term debt
|
7,103
|
|
|
7,991
|
|
||
Other liabilities
|
1,483
|
|
|
1,507
|
|
||
Noncurrent liabilities of discontinued operations
|
65
|
|
|
64
|
|
||
Total equity
|
1,112
|
|
|
1,373
|
|
||
Total liabilities and equity
|
$
|
13,148
|
|
|
$
|
14,529
|
|
Total debt*
|
$
|
8,712
|
|
|
$
|
9,894
|
|
Cash and cash equivalents*
|
$
|
179
|
|
|
$
|
226
|
|
|
Twelve Months Ended
|
||||||
|
July 28, 2019
|
|
July 29, 2018
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net earnings
|
$
|
211
|
|
|
$
|
261
|
|
Adjustments to reconcile net earnings to operating cash flow
|
|
|
|
||||
Impairment charges
|
393
|
|
|
748
|
|
||
Restructuring charges
|
31
|
|
|
62
|
|
||
Stock-based compensation
|
58
|
|
|
61
|
|
||
Amortization of inventory fair value adjustment from acquisition
|
—
|
|
|
42
|
|
||
Pension and postretirement benefit expense (income)
|
103
|
|
|
(187
|
)
|
||
Depreciation and amortization
|
446
|
|
|
394
|
|
||
Deferred income taxes
|
14
|
|
|
(133
|
)
|
||
Losses on sales of discontinued operations businesses
|
32
|
|
|
—
|
|
||
Other, net
|
25
|
|
|
34
|
|
||
Changes in working capital, net of acquisitions and divestitures
|
|
|
|
||||
Accounts receivable
|
(11
|
)
|
|
56
|
|
||
Inventories
|
36
|
|
|
(84
|
)
|
||
Prepaid assets
|
(1
|
)
|
|
27
|
|
||
Accounts payable and accrued liabilities
|
125
|
|
|
78
|
|
||
Other
|
(64
|
)
|
|
(54
|
)
|
||
Net cash provided by operating activities
|
1,398
|
|
|
1,305
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Purchases of plant assets
|
(384
|
)
|
|
(407
|
)
|
||
Purchases of route businesses
|
(29
|
)
|
|
(9
|
)
|
||
Sales of route businesses
|
31
|
|
|
10
|
|
||
Businesses acquired, net of cash acquired
|
(18
|
)
|
|
(6,772
|
)
|
||
Sales of discontinued operations businesses, net of cash divested
|
539
|
|
|
—
|
|
||
Other, net
|
14
|
|
|
(19
|
)
|
||
Net cash provided by (used in) investing activities
|
153
|
|
|
(7,197
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Short-term borrowings
|
5,839
|
|
|
10,222
|
|
||
Short-term repayments
|
(6,296
|
)
|
|
(9,944
|
)
|
||
Long-term borrowings
|
—
|
|
|
6,224
|
|
||
Long-term repayments
|
(702
|
)
|
|
(63
|
)
|
||
Dividends paid
|
(423
|
)
|
|
(426
|
)
|
||
Treasury stock purchases
|
—
|
|
|
(86
|
)
|
||
Payments related to tax withholding for stock-based compensation
|
(8
|
)
|
|
(23
|
)
|
||
Repurchase of noncontrolling interest
|
—
|
|
|
(47
|
)
|
||
Payments of debt issuance costs
|
(1
|
)
|
|
(50
|
)
|
||
Net cash provided by (used in) financing activities
|
(1,591
|
)
|
|
5,807
|
|
||
Effect of exchange rate changes on cash
|
(7
|
)
|
|
(8
|
)
|
||
Net change in cash and cash equivalents
|
(47
|
)
|
|
(93
|
)
|
||
Cash and cash equivalents — beginning of period
|
49
|
|
|
37
|
|
||
Cash balance of discontinued operations — beginning of period
|
177
|
|
|
282
|
|
||
Cash balance of discontinued operations — end of period
|
(148
|
)
|
|
(177
|
)
|
||
Cash and cash equivalents — end of period
|
$
|
31
|
|
|
$
|
49
|
|
Three Months Ended
|
||||||||||||||||
|
July 28, 2019
|
|
July 29, 2018
|
|
% Change
|
|||||||||||
(millions)
|
Net Sales, as Reported
|
Impact of Currency
|
Organic Net Sales
|
|
Net Sales,
as Reported
|
|
Net Sales,
as Reported
|
Organic Net Sales
|
||||||||
Meals & Beverages
|
$
|
813
|
|
$
|
1
|
|
$
|
814
|
|
|
$
|
809
|
|
|
—%
|
1%
|
Snacks
|
967
|
|
2
|
|
969
|
|
|
936
|
|
|
3%
|
4%
|
||||
Total Net Sales
|
$
|
1,780
|
|
$
|
3
|
|
$
|
1,783
|
|
|
$
|
1,745
|
|
|
2%
|
2%
|
Campbell International
|
$
|
244
|
|
|
|
|
$
|
247
|
|
|
|
|
||||
Combined Net Sales
|
$
|
2,024
|
|
|
|
|
$
|
1,992
|
|
|
2%
|
|
Year Ended
|
|||||||||||||||||||
|
July 28, 2019
|
|
July 29, 2018
|
|
% Change
|
||||||||||||||
(millions)
|
Net Sales, as Reported
|
Impact of Currency
|
Impact of Acquisitions
|
Organic Net Sales
|
|
Net Sales,
as Reported
|
|
Net Sales,
as Reported
|
Organic Net Sales
|
||||||||||
Meals & Beverages
|
$
|
4,322
|
|
$
|
18
|
|
$
|
(100
|
)
|
$
|
4,240
|
|
|
$
|
4,305
|
|
|
—%
|
(2)%
|
Snacks
|
3,784
|
|
3
|
|
(1,401
|
)
|
2,386
|
|
|
2,307
|
|
|
64%
|
3%
|
|||||
Corporate
|
1
|
|
—
|
|
—
|
|
1
|
|
|
3
|
|
|
n/m
|
n/m
|
|||||
Total Net Sales
|
$
|
8,107
|
|
$
|
21
|
|
$
|
(1,501
|
)
|
$
|
6,627
|
|
|
$
|
6,615
|
|
|
23%
|
—%
|
Campbell International
|
1,046
|
|
|
|
|
|
1,120
|
|
|
|
|
||||||||
Combined Net Sales
|
$
|
9,153
|
|
|
|
|
|
$
|
7,735
|
|
|
18%
|
|
(1)
|
In fiscal 2015, the company implemented initiatives to reduce costs and to streamline its organizational structure. In fiscal 2017, the company expanded these cost savings initiatives by further optimizing its supply chain network, primarily in North America, continuing to evolve its operating model to drive efficiencies, and more fully integrating its recent acquisitions. In January 2018, as part of the expanded initiatives, the company authorized additional costs to improve the operational efficiency of its thermal supply chain network in North America by closing its manufacturing facility in Toronto, Ontario, and to optimize its information technology infrastructure by migrating certain applications to the latest cloud technology platform. In August 2018, the company announced that it will continue to streamline its organization, expand its zero-based budgeting efforts and optimize its manufacturing network. In fiscal 2019, the company began to include costs associated with the Snyder's-Lance cost transformation program and integration with these initiatives.
|
(2)
|
In the fourth quarter of fiscal 2019, as part of the company's annual review of intangible assets, the company recognized an impairment charge of $7 million on a trademark and $10 million on goodwill in Kelsen due to a lower long-term outlook for sales and the pending sale of the business. The aggregate impact was $17 million ($12 million after tax, or $.04 per share).
|
(3)
|
In the fourth quarter of fiscal 2019, the company incurred pre-tax expenses of $1 million (a gain of $1 million after tax) associated with the sale process of the businesses in Campbell Fresh, including a loss on the sale of Bolthouse Farms. The company also incurred costs of $5 million pre-tax and after tax ($.02 per share) associated with the planned divestiture of Campbell International. The aggregate impact was $4 million after tax, or $.01 per share, in Loss from discontinued operations. In fiscal 2019, the company incurred pre-tax expenses of $32 million associated with the sale process of the businesses in Campbell Fresh, including losses on the sale of the U.S. refrigerated soup business, Garden Fresh Gourmet and Bolthouse Farms. In addition, the company recorded tax expense of $29 million as deferred tax assets on Bolthouse Farms were not realizable (aggregate impact of $51 million after tax, or $.17 per share). The company also incurred costs of $12 million ($10 million after tax, or $.03 per share) associated with the planned divestiture of Campbell International. The aggregate impact was $61 million after tax, or $.20 per share, in Loss from discontinued operations.
|
(4)
|
In the third quarter of fiscal 2019, the company recognized a pre-tax pension settlement charge in Other expenses / (income) of $28 million ($22 million after tax, or $.07 per share) in Earnings from continuing operations associated with a U.S. pension plan. The settlement resulted from the level of lump sum distributions from the plan's assets in 2019.
|
(5)
|
In fiscal 2018 and 2019, the company reflected the impact of taxes on the enactment of the Tax Cuts and Jobs Act that was signed into law in December 2017. In fiscal 2019, the company recorded a tax charge of $2 million ($.01 per share) related to a transition tax on unremitted foreign earnings. In the fourth quarter of fiscal 2018, the company recorded a tax benefit of $6 million ($.02 per share) related to the transition tax on unremitted foreign earnings. In fiscal 2018, the company recorded a tax benefit of $179 million due to the remeasurement of deferred tax assets and liabilities, and a tax charge of $53 million related to the transition tax on unremitted foreign earnings. The net impact was a tax benefit of $126 million ($.42 per share). These charges and benefits were all recorded in Earnings from continuing operations.
|
(6)
|
In the fourth quarter of fiscal 2019, the company incurred losses of $122 million in Other expenses / (income) ($93 million after tax, or $.31 per share) in Earnings (loss) from continuing operations associated with mark-to-market adjustments for defined benefit pension and postretirement plans. The company also incurred losses of $12 million ($9 million after tax, or $.03 per share) in Loss from discontinued operations related to Campbell International. In the fourth quarter of fiscal 2018, the company incurred gains of $117 million in Other expenses / (income) ($90 million
|
(7)
|
In the second quarter of fiscal 2018, the company announced its intent to acquire Snyder's-Lance, Inc. and on March 26, 2018, the acquisition closed. In the fourth quarter of fiscal 2018, the company incurred $5 million in Cost of products sold associated with an acquisition date fair value adjustment for inventory. The company also incurred integration costs in association with its cost savings initiatives, of which $3 million was recorded in Restructuring charges and $6 million in Administrative expenses. The aggregate impact was $14 million, $8 million after tax, or $.03 per share. In fiscal 2018, the company incurred transaction costs of $53 million recorded in Other expenses / (income), $42 million in Cost of products sold and a gain in Interest expense of $18 million on treasury rate lock contracts used to hedge the planned financing of the acquisition. The company also incurred integration costs in association with its cost savings initiatives, of which $13 million was recorded in Restructuring charges and $12 million in Administrative expenses. The aggregate impact was $102 million, $73 million after tax, or $.24 per share. These costs were all recorded in Earnings from continuing operations.
|
(8)
|
In the third quarter of fiscal 2018, the company recorded a loss of $22 million in Other expenses / (income) ($15 million after tax, or $.05 per share) in Earnings from continuing operations from a settlement of a legal claim.
|
|
Three Months Ended
|
||||||||||||||||||
|
July 28, 2019
|
||||||||||||||||||
(millions, except per share amounts)
|
Restructuring charges, implementation costs and other related costs
(1) |
|
Impairment charges
(2) |
|
Costs associated with divestitures
(3)
|
|
Mark-to-market
(6)
|
|
Adjustments
|
||||||||||
Gross margin
|
$
|
(7
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(7
|
)
|
Marketing and selling expenses
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Administrative expenses
|
(27
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
|||||
Research and development expenses
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Other expenses / (income)
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
(122
|
)
|
|
(138
|
)
|
|||||
Restructuring charges
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|||||
Earnings before interest and taxes
|
$
|
31
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
122
|
|
|
$
|
169
|
|
Interest, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Earnings before taxes
|
$
|
31
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
122
|
|
|
$
|
169
|
|
Taxes
|
7
|
|
|
3
|
|
|
—
|
|
|
29
|
|
|
39
|
|
|||||
Earnings from continuing operations
|
$
|
24
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
93
|
|
|
$
|
130
|
|
Earnings from discontinued operations
|
—
|
|
|
12
|
|
|
4
|
|
|
9
|
|
|
25
|
|
|||||
Net earnings attributable to Campbell Soup Company
|
$
|
24
|
|
|
$
|
25
|
|
|
$
|
4
|
|
|
$
|
102
|
|
|
$
|
155
|
|
Diluted earnings per share - continuing operations attributable to Campbell Soup Company
|
$
|
.08
|
|
|
$
|
.04
|
|
|
$
|
—
|
|
|
$
|
.31
|
|
|
$
|
.43
|
|
Diluted earnings per share - discontinued operations
|
—
|
|
|
.04
|
|
|
.01
|
|
|
.03
|
|
|
.08
|
|
|||||
Diluted net earnings per share attributable to Campbell Soup Company
|
$
|
.08
|
|
|
$
|
.08
|
|
|
$
|
.01
|
|
|
$
|
.34
|
|
|
$
|
.51
|
|
|
Three Months Ended
|
||||||||||||||||||||||
|
July 29, 2018
|
||||||||||||||||||||||
(millions, except per share amounts)
|
Restructuring charges, implementation costs and other related costs
(1) |
|
Impairment charges
(2)
|
|
Tax reform
(5)
|
|
Mark-to-market
(6)
|
|
Transaction and integration costs
(7) |
|
Adjustments
|
||||||||||||
Gross margin
|
$
|
25
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
30
|
|
Marketing and selling expenses
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Administrative expenses
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
(26
|
)
|
||||||
Other expenses / (income)
|
—
|
|
|
(54
|
)
|
|
—
|
|
|
117
|
|
|
—
|
|
|
63
|
|
||||||
Restructuring charges
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(4
|
)
|
||||||
Earnings before interest and taxes
|
$
|
47
|
|
|
$
|
54
|
|
|
$
|
—
|
|
|
$
|
(117
|
)
|
|
$
|
14
|
|
|
$
|
(2
|
)
|
Interest, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Earnings before taxes
|
$
|
47
|
|
|
$
|
54
|
|
|
$
|
—
|
|
|
$
|
(117
|
)
|
|
$
|
14
|
|
|
$
|
(2
|
)
|
Taxes
|
13
|
|
|
13
|
|
|
6
|
|
|
(27
|
)
|
|
6
|
|
|
11
|
|
||||||
Earnings from continuing operations
|
$
|
34
|
|
|
$
|
41
|
|
|
$
|
(6
|
)
|
|
$
|
(90
|
)
|
|
$
|
8
|
|
|
$
|
(13
|
)
|
Earnings from discontinued operations
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(4
|
)
|
||||||
Net earnings attributable to Campbell Soup Company
|
$
|
33
|
|
|
$
|
41
|
|
|
$
|
(6
|
)
|
|
$
|
(93
|
)
|
|
$
|
8
|
|
|
$
|
(17
|
)
|
Diluted earnings per share - continuing operations attributable to Campbell Soup Company
|
$
|
.11
|
|
|
$
|
.14
|
|
|
$
|
(.02
|
)
|
|
$
|
(.30
|
)
|
|
$
|
.03
|
|
|
$
|
(.04
|
)
|
Diluted earnings per share - discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(.01
|
)
|
|
—
|
|
|
(.01
|
)
|
||||||
Diluted net earnings per share attributable to Campbell Soup Company*
|
$
|
.11
|
|
|
$
|
.14
|
|
|
$
|
(.02
|
)
|
|
$
|
(.31
|
)
|
|
$
|
.03
|
|
|
$
|
(.06
|
)
|
*The sum of individual per share amounts may not add due to rounding.
|
|
Twelve Months Ended
|
||||||||||||||||||||||||||
|
July 29, 2018
|
||||||||||||||||||||||||||
(millions, except per share amounts)
|
Restructuring charges, implementation costs and other related costs
(1) |
|
Impairment charges
(2) |
|
Tax reform (5)
|
|
Mark-to-market (6)
|
|
Transaction and integration costs
(7)
|
|
Claim settlement (8)
|
|
Adjustments
|
||||||||||||||
Gross margin
|
$
|
45
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
42
|
|
|
$
|
—
|
|
|
$
|
87
|
|
Marketing and selling expenses
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||||||
Administrative expenses
|
(87
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
(99
|
)
|
|||||||
Other expenses / (income)
|
—
|
|
|
(54
|
)
|
|
—
|
|
|
131
|
|
|
(53
|
)
|
|
(22
|
)
|
|
2
|
|
|||||||
Restructuring charges
|
(42
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
(55
|
)
|
|||||||
Earnings before interest and taxes
|
$
|
177
|
|
|
$
|
54
|
|
|
$
|
—
|
|
|
$
|
(131
|
)
|
|
$
|
120
|
|
|
$
|
22
|
|
|
$
|
242
|
|
Interest, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
18
|
|
|||||||
Earnings before taxes
|
$
|
177
|
|
|
$
|
54
|
|
|
$
|
—
|
|
|
$
|
(131
|
)
|
|
$
|
102
|
|
|
$
|
22
|
|
|
$
|
224
|
|
Taxes
|
45
|
|
|
13
|
|
|
126
|
|
|
(31
|
)
|
|
29
|
|
|
7
|
|
|
189
|
|
|||||||
Earnings from continuing operations
|
$
|
132
|
|
|
$
|
41
|
|
|
$
|
(126
|
)
|
|
$
|
(100
|
)
|
|
$
|
73
|
|
|
$
|
15
|
|
|
$
|
35
|
|
Earnings from discontinued operations
|
4
|
|
|
571
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
572
|
|
|||||||
Net earnings attributable to Campbell Soup Company
|
$
|
136
|
|
|
$
|
612
|
|
|
$
|
(126
|
)
|
|
$
|
(103
|
)
|
|
$
|
73
|
|
|
$
|
15
|
|
|
$
|
607
|
|
Diluted earnings per share - continuing operations attributable to Campbell Soup Company
|
$
|
.44
|
|
|
$
|
.14
|
|
|
$
|
(.42
|
)
|
|
$
|
(.33
|
)
|
|
$
|
.24
|
|
|
$
|
.05
|
|
|
$
|
.12
|
|
Diluted earnings per share - discontinued operations
|
.01
|
|
|
1.89
|
|
|
—
|
|
|
(.01
|
)
|
|
—
|
|
|
—
|
|
|
1.89
|
|
|||||||
Diluted net earnings per share attributable to Campbell Soup Company
|
$
|
.45
|
|
|
$
|
2.03
|
|
|
$
|
(.42
|
)
|
|
$
|
(.34
|
)
|
|
$
|
.24
|
|
|
$
|
.05
|
|
|
$
|
2.01
|
|
|
Three Months Ended
|
||||||||||||||||||
|
July 28, 2019
|
||||||||||||||||||
(millions)
|
As reported
|
|
Impairment charges
(2) |
|
Costs associated with divestitures
(3)
|
|
Mark-to-market
(6)
|
|
Adjusted
|
||||||||||
Earnings (loss) from Campbell International
|
$
|
(2
|
)
|
|
$
|
12
|
|
|
$
|
5
|
|
|
$
|
9
|
|
|
$
|
24
|
|
Add: Taxes on earnings from Campbell International
|
2
|
|
|
5
|
|
|
—
|
|
|
3
|
|
|
10
|
|
|||||
Add: Interest, net
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Earnings before interest and taxes - Campbell International
|
$
|
2
|
|
|
$
|
17
|
|
|
$
|
5
|
|
|
$
|
12
|
|
|
$
|
36
|
|
Earnings before interest and taxes - continuing operations
|
$
|
83
|
|
|
|
|
|
|
|
|
$
|
252
|
|
||||||
Combined Earnings before interest and taxes
|
$
|
85
|
|
|
|
|
|
|
|
|
$
|
288
|
|
|
Three Months Ended
|
||||||||||||||
|
July 29, 2018
|
||||||||||||||
(millions)
|
As reported
|
|
Restructuring charges, implementation costs and other related costs
(1) |
|
Mark-to-market
(6) |
|
Adjusted
|
||||||||
Earnings from Campbell International
|
$
|
24
|
|
|
$
|
(1
|
)
|
|
$
|
(3
|
)
|
|
$
|
20
|
|
Add (Deduct): Taxes on earnings from Campbell International
|
10
|
|
|
—
|
|
|
(2
|
)
|
|
8
|
|
||||
Add: Interest, net
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||
Earnings (loss) before interest and taxes - Campbell International
|
$
|
38
|
|
|
$
|
(1
|
)
|
|
$
|
(5
|
)
|
|
$
|
32
|
|
Earnings before interest and taxes - continuing operations
|
252
|
|
|
|
|
|
|
250
|
|
||||||
Combined Earnings before interest and taxes
|
$
|
290
|
|
|
|
|
|
|
$
|
282
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Adjusted Combined EBIT percentage change 2019/2018
|
|
|
|
|
|
|
2
|
%
|
|
Twelve Months Ended
|
||||||||||||||||||||||
|
July 28, 2019
|
||||||||||||||||||||||
(millions)
|
As reported
|
|
Restructuring charges, implementation costs and other related costs
(1) |
|
Impairment charges
(2) |
|
Costs associated with divestitures (3)
|
|
Mark-to-market
(6) |
|
Adjusted
|
||||||||||||
Earnings from Campbell International
|
$
|
69
|
|
|
$
|
(1
|
)
|
|
$
|
12
|
|
|
$
|
10
|
|
|
$
|
9
|
|
|
$
|
99
|
|
Add: Taxes on earnings from Campbell International
|
39
|
|
|
—
|
|
|
5
|
|
|
2
|
|
|
3
|
|
|
49
|
|
||||||
Add: Interest, net
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
||||||
Earnings (loss) before interest and taxes - Campbell International
|
$
|
116
|
|
|
$
|
(1
|
)
|
|
$
|
17
|
|
|
$
|
12
|
|
|
$
|
12
|
|
|
$
|
156
|
|
Earnings before interest and taxes - continuing operations
|
$
|
979
|
|
|
|
|
|
|
|
|
|
|
$
|
1,266
|
|
||||||||
Combined Earnings before interest and taxes
|
$
|
1,095
|
|
|
|
|
|
|
|
|
|
|
$
|
1,422
|
|
|
Twelve Months Ended
|
||||||||||||||
|
July 29, 2018
|
||||||||||||||
(millions)
|
As reported
|
|
Restructuring charges, implementation costs and other related costs
(1) |
|
Mark-to-market
(6) |
|
Adjusted
|
||||||||
Earnings from Campbell International
|
$
|
116
|
|
|
$
|
3
|
|
|
$
|
(3
|
)
|
|
$
|
116
|
|
Add (Deduct): Taxes on earnings from Campbell International
|
47
|
|
|
3
|
|
|
(2
|
)
|
|
48
|
|
||||
Add: Interest, net
|
17
|
|
|
—
|
|
|
—
|
|
|
17
|
|
||||
Earnings (loss) before interest and taxes - Campbell International
|
$
|
180
|
|
|
$
|
6
|
|
|
$
|
(5
|
)
|
|
$
|
181
|
|
Earnings before interest and taxes - continuing operations
|
1,010
|
|
|
|
|
|
|
1,252
|
|
||||||
Combined Earnings before interest and taxes
|
$
|
1,190
|
|
|
|
|
|
|
$
|
1,433
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Adjusted Combined EBIT percentage change 2019/2018
|
|
|
|
(1
|
)%
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||||||||
(millions)
|
July 28, 2019
|
|
July 29, 2018
|
|
Adjusted % Change
|
|
July 28, 2019
|
|
July 29, 2018
|
|
Adjusted % Change
|
||||||||||
Adjusted Diluted earnings per share - continuing operations
|
$
|
.42
|
|
|
$
|
.37
|
|
|
|
|
$
|
2.30
|
|
|
$
|
2.51
|
|
|
|
||
Diluted earnings per share - Campbell International
|
$
|
(.01
|
)
|
|
$
|
.08
|
|
|
|
|
$
|
.23
|
|
|
$
|
.38
|
|
|
|
||
Add: Restructuring charges, implementation costs and other related costs (1)
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
.01
|
|
|
|
||||||
Add: Impairment charges (2)
|
.04
|
|
|
—
|
|
|
|
|
.04
|
|
|
—
|
|
|
|
||||||
Add: Costs associated with divestitures (3)
|
.02
|
|
|
—
|
|
|
|
|
.03
|
|
|
—
|
|
|
|
||||||
Add (Deduct): Mark-to-market (6)
|
.03
|
|
|
(.01
|
)
|
|
|
|
.03
|
|
|
(.01
|
)
|
|
|
||||||
Adjusted Diluted earnings per share - Campbell International
|
$
|
.08
|
|
|
$
|
.07
|
|
|
|
|
$
|
.33
|
|
|
$
|
.38
|
|
|
|
||
Adjusted Combined diluted earnings per share*
|
$
|
.50
|
|
|
$
|
.44
|
|
|
14
|
%
|
|
$
|
2.63
|
|
|
$
|
2.90
|
|
|
(9
|
)%
|
*The sum of individual per share amounts may not add due to rounding.
|