Divestitures

3 Months Ended

Oct. 27, 2019

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

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

Divestitures

Discontinued Operations

On February 25, 2019, we sold our U.S. refrigerated soup business, and on April 25, 2019, we sold our Garden Fresh Gourmet business. Proceeds were approximately $55, subject to customary purchase price adjustments. On June 16, 2019, we sold our Bolthouse Farms business. Proceeds were approximately $500, subject to customary purchase price adjustments. Beginning in the third quarter of 2019, we have reflected the results of these businesses as discontinued operations in the Consolidated Statements of Earnings for all periods presented. These businesses were historically included in the Campbell Fresh reportable segment.

We completed the sale of our Kelsen business on September 23, 2019, for $322, subject to customary purchase price adjustments. We also signed a definitive agreement on August 1, 2019, for the sale of our Arnott’s business and certain other international operations, including the simple meals and shelf-stable beverages businesses in Australia and Asia Pacific (the Arnott's and other international operations), for $2,200, subject to customary purchase price adjustments. We expect to complete the sale in the second quarter of 2020. Beginning in the fourth quarter of 2019, we have reflected the results of operations of the Kelsen business and the Arnott’s and other international operations (collectively referred to as Campbell International) as discontinued operations in the Consolidated Statements of Earnings for all periods presented. These businesses were historically included in the Snacks reportable segment.

Results of discontinued operations were as follows:

	Three Months Ended
	Campbell International				Campbell Fresh
	October 27, 2019		October 28, 2018		October 28, 2018
Net sales	$	223	$	266	$	226
Impairment charges	$	—	$	—	$	14
Earnings (loss) before taxes from operations	$	37	$	35	$	(12)
Taxes on earnings (loss) from operations	13		10		(3)
Loss on sale of business / costs associated with selling the businesses	(51)		(1)		(1)
Tax benefit on loss of sale / costs associated with selling the businesses	(24)		—		—
Earnings (loss) from discontinued operations	$	(3)	$	24	$	(10)

In the first quarter of 2019, we recorded an impairment charge of $14 on the U.S. refrigerated soup plant assets in Campbell Fresh.

We provide certain transition services to support the divested businesses.

The assets and liabilities of the Arnott's and other international operations have been reflected as assets and liabilities of discontinued operations in the Consolidated Balance Sheet as of October 27, 2019. The assets and liabilities of Campbell International have been reflected as assets and liabilities of discontinued operations in the Consolidated Balance Sheet as of July 28, 2019. The assets and liabilities were as follows:

	October 27, 2019		July 28, 2019
Cash and cash equivalents	$	115	$	148
Accounts receivable, net	101		135
Inventories	92		135
Other current assets	7		10
Current assets	$	315	$	428
Plant assets, net of depreciation	309		340
Goodwill	585		661
Other intangible assets, net of amortization	9		135
Other assets	41		31
Total assets	$	1,259	$	1,595

	October 27, 2019		July 28, 2019
Short-term borrowings	$	—	$	232
Payable to suppliers and others	82		109
Accrued liabilities	89		114
Accrued income taxes	12		14
Current liabilities	$	183	$	469
Long-term debt	7		6
Deferred taxes	—		32
Other liabilities	34		27
Total liabilities	$	224	$	534

The depreciation and amortization, capital expenditures, sale proceeds and significant noncash operating items of Campbell Fresh and Campbell International were as follows:

	Three Months Ended
	October 27, 2019		October 28, 2018
Cash flows from discontinued operating activities:
Impairment charges	$	—	$	14
Depreciation and amortization(1)	—		27
Loss on sale of discontinued operations business	40		—
Cash flows from discontinued investing activities:
Capital expenditures	$	21	$	22
Sales of discontinued operations business, net of cash divested	297		—

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⁽¹⁾Depreciation and amortization are no longer recognized once businesses are classified as held for sale/discontinued operations.

Other Divestitures

On October 11, 2019, we completed the sale of our European chips business for £63, or $77, subject to customary purchase price adjustments. The European chips business had net sales of $25 and $28 in the three-month periods ended October 27, 2019, and October 28, 2018, respectively. Earnings were not material in either period. The results of the European chips business through the date of sale were reflected in continuing operations within the Snacks reportable segment. The pre-tax loss recognized in the quarter on the sale was $64, which included the impact of allocated goodwill and foreign currency translation adjustments.