Merger and Acquisition (Tables)

6 Months Ended

Jun. 28, 2015

Business Acquisition, Pro Forma Information

The following tables provide unaudited pro forma results of operations for the second quarter and six months ended June 28, 2015 and June 29, 2014, as if Kraft had been acquired as of the beginning of the first fiscal period presented. The pro forma results include certain purchase accounting adjustments. However, pro forma results do not include any anticipated cost savings or other effects of the planned integration of Kraft. Accordingly, such amounts are not necessarily indicative of the results if the 2015 Merger had occurred on the dates indicated or that may result in the future.



	Second Quarter Ended
	June 28, 2015		June 29, 2014
	(In millions, except per share data)
Sales	$	7,129	$	7,474
Net income	$	390	$	494
Income per common share - basic	$	0.17	$	0.26
Income per common share - diluted	$	0.17	$	0.26



	Six Months Ended
	June 28, 2015		June 29, 2014
	(In millions, except per share data)
Sales	$	13,957	$	14,634
Net income	$	1,134	$	894
Income per common share - basic	$	0.65	$	0.44
Income per common share - diluted	$	0.64	$	0.43

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following is a summary of the preliminary purchase price allocation to the estimated fair values of assets acquired and liabilities assumed in the transaction:



	(In millions)
Cash	$	408
Other current assets	3,685
Property, plant and equipment	4,365
Trademark and other intangibles	43,652
Other non-current assets	228
Trade and other payables	(3,510		)
Long-term debt	(9,293		)
Non-pension postretirement benefits and other noncurrent liabilities	(4,503		)
Deferred income tax liabilities	(15,042		)
Net assets acquired	19,990
Goodwill on acquisition	32,904
Total consideration	52,894
Preliminary fair value of shares exchanged and stock based compensation	43,081
Total cash consideration paid to Kraft shareholders	9,813
Cash and cash equivalents of Kraft at July 2, 2015	408
Acquisition of business, net of cash on hand	$	9,405

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

The preliminary purchase price allocation to identifiable intangible assets acquired is as follows:



	Preliminary fair value		Weighted average life
	(In millions, except weighted average lives)
Indefinite-lived trademarks	$	38,768
Definite-lived trademarks	632		30
Customer relationships	2,901		20
Licenses	1,351		25
Total identifiable intangible assets	$	43,652