Discontinued Operations

6 Months Ended

Jan. 26, 2014

Discontinued Operations and Disposal Groups [Abstract]

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

Discontinued Operations

On October 28, 2013, 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 $548, subject to certain post-closing adjustments. The company recognized a pre-tax gain of $147 ($90 after tax or $.28 per share) in the three-month period ended January 26, 2014 and a pre-tax gain of $141 ($72 after tax or $.23 per share) in the six-month period ended January 26, 2014. The final gain on the sale is subject to the resolution of the post-closing adjustments. The European business included the 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 taxes on the sale, to reduce debt and for other general corporate purposes.

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				Six Months Ended
	January 26, 2014		January 27, 2013		January 26, 2014		January 27, 2013
Net sales	$	—	$	171	$	137	$	302
Earnings before taxes	$	—	$	24	$	14	$	41
Taxes on earnings	—		5		5		9
Gain on sale	147		—		141		—
Tax impact of gain on sale	57		—		69		—
Earnings from discontinued operations	$	90	$	19	$	81	$	32

The assets and liabilities of the business have been reflected in assets and liabilities held for sale in the Consolidated Balance Sheet as of July 28, 2013, and are comprised of the following:

	July 28,  2013
Cash	$	68
Accounts receivable	54
Inventories	68
Prepaid expenses	3
Current assets	$	193
Plant assets	$	98
Goodwill	110
Intangible assets	150
Other assets	35
Non-current assets	$	393
Accounts payable	$	60
Accrued liabilities	54
Current liabilities	$	114
Non-current pension obligation	$	11
Other liabilities	11
Non-current liabilities	$	22