Discontinued Operations

3 Months Ended

Oct. 27, 2013

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Discontinued Operations

On October 28, 2013, subsequent to the end of the first quarter, the company completed the sale of its European simple meals business to Soppa Investments S.à r.l., an affiliate of CVC Capital Partners. The transaction was completed pursuant to a sale and purchase agreement dated September 30, 2013, for approximately €400, or approximately $550, subject to certain post-closing adjustments. The European business includes Erasco and Heisse Tasse soups in Germany; Liebig and Royco soups in France; Devos Lemmens mayonnaise and cold sauces and Royco soups in Belgium; and Blå Band and Isomitta soups and sauces in Sweden. The company used the proceeds from the sale to pay down debt and for other general corporate purposes and expects the after-tax proceeds to be approximately $455.

The company has reflected the results of the European simple meals business as discontinued operations in the Consolidated Statements of Earnings for all periods presented. The business was historically included in the International Simple Meals and Beverages segment.

Results of discontinued operations were as follows:

	Three Months Ended
	October 27, 2013			October 28, 2012
Net sales	$	137		$	131
Earnings before taxes	$	9		$	17
Taxes on earnings	18			4
Earnings (loss) from discontinued operations	$	(9	)	$	13

In the three-month period ended October 27, 2013, earnings before taxes included approximately $6 of costs associated with the sale of the business. Taxes on earnings included incremental expense of $14 representing taxes on the difference between the book value and tax basis of the business as a result of a reorganization of the capital and ownership structure that occurred during the first quarter of 2014.

The assets and liabilities of the European business have been reflected in assets and liabilities held for sale in the Consolidated Balance Sheets, and are comprised of the following:

	October 27, 2013		July 28,  2013
Cash	$	14	$	68
Accounts receivable	98		54
Inventories	78		68
Prepaid expenses	3		3
Current assets	$	193	$	193
Plant assets	$	102	$	98
Goodwill	115		110
Intangible assets	156		150
Other assets	34		35
Non-current assets	$	407	$	393
Accounts payable	$	81	$	60
Accrued liabilities	71		54
Current liabilities	$	152	$	114
Non-current pension obligation	$	11	$	11
Other liabilities	12		11
Non-current liabilities	$	23	$	22