Discontinued Operations

12 Months Ended

Aug. 03, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

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 all-cash preliminary sale price was €400, or $548, and was subject to certain post-closing adjustments, which resulted in a $14 reduction of proceeds. The company recognized a pre-tax gain of $141 ($72 after tax or $.23 per share) in 2014. 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, reduce debt and for other general corporate purposes.

In the fourth quarter of 2013, the company recorded an impairment charge on the intangible assets of this business of $396 ($263 after tax or $.83 per share).In addition, the company recorded $18 in tax expense ($.06 per share) representing taxes on the difference between the book value and tax basis of the business. See Note 6 for additional information on the impairment charge.

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

Results of discontinued operations were as follows:

	2014			2013			2012
Net sales	$	137		$	532		$	532
Gain on sale of the European simple meals business	$	141		$	—		$	—
Impairment on the European simple meals business	—			(396		)	—
Earnings from operations, before taxes	14			65			57
Earnings (loss) before taxes	$	155		$	(331	)	$	57
Taxes on earnings	(74		)	100			(17		)
Earnings (loss) from discontinued operations	$	81		$	(231	)	$	40

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