-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AtBnBXS3hSI0/UY9g7rvaxOoTW2NbdWWa9r3Ybw8YoiYI+Edi4Ya6OOf+/0SaBg4 6T5XtPdTUrK6huHrDwwdJg== 0000893220-98-000723.txt : 19980415 0000893220-98-000723.hdr.sgml : 19980415 ACCESSION NUMBER: 0000893220-98-000723 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980413 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980414 SROS: NYSE SROS: PHLX FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAMPBELL SOUP CO CENTRAL INDEX KEY: 0000016732 STANDARD INDUSTRIAL CLASSIFICATION: FOOD & KINDRED PRODUCTS [2000] IRS NUMBER: 210419870 STATE OF INCORPORATION: NJ FISCAL YEAR END: 0729 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-03822 FILM NUMBER: 98593099 BUSINESS ADDRESS: STREET 1: CAMPBELL PL CITY: CAMDEN STATE: NJ ZIP: 08103 BUSINESS PHONE: 6093424800 MAIL ADDRESS: STREET 1: CAMPBELL PL CITY: CAMDEN STATE: NJ ZIP: 08103 8-K 1 FORM 8-K, CAMPBELL SOUP COMPANY 1 ============================================================================== SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) APRIL 13, 1998 CAMPBELL SOUP COMPANY (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) NEW JERSEY STATE OF INCORPORATION 1-3822 (COMMISSION FILE NUMBER) 21-0419870 I.R.S. EMPLOYER IDENTIFICATION NO. CAMPBELL PLACE CAMDEN, NEW JERSEY 08103-1799 PRINCIPAL EXECUTIVE OFFICES TELEPHONE NUMBER: (609) 342-4800 ============================================================================== 2 ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS In September 1997, Campbell Soup Company ("the company") announced a plan, subject to certain conditions, to spin off the Specialty Foods segment to its shareowners as an independent publicly-held company. The Specialty Foods segment includes Swanson frozen foods, Vlasic pickles, and certain European, Argentine and other U.S. businesses. In February 1998, the Board of Directors approved the formal plan to spin off the Specialty Foods segment after receiving a Private Letter Ruling from the Internal Revenue Service indicating that the transaction would be tax-free. The spinoff was effective March 30, 1998. On this date, shareowners of record as of March 9, 1998 received one share of the newly-formed company, Vlasic Foods International Inc. ("Vlasic"), for every ten shares of Campbell Soup Company capital stock. As a result of the spinoff, Vlasic Foods International Inc. is now an independent publicly held company. On March 5, 1998, the company mailed an Information Statement to all shareowners setting forth the details of the spinoff. 3 ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (1) Introduction to Campbell Soup Company Consolidated Pro Forma Consolidated Financial Information (2) Campbell Soup Company Pro Forma Consolidated Statement of Earnings for the Six Months Ended February 1, 1998 (3) Campbell Soup Company Pro Forma Consolidated Statement of Earnings for the Year Ended August 3, 1997 (4) Campbell Soup Company Pro Forma Consolidated Statement of Earnings for the Year Ended July 28, 1996 (5) Campbell Soup Company Pro Forma Consolidated Statement of Earnings for the Year Ended July 30, 1995 (6) Campbell Soup Company Pro Forma Consolidated Balance Sheet as of February 1, 1998 (7) Notes to Campbell Soup Company Unaudited Pro Forma Consolidated Financial Information 4 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CAMPBELL SOUP COMPANY By /s/ Basil L. Anderson -------------------------------------- Executive Vice President and Chief Financial Officer By /s/ Gerald S. Lord -------------------------------------- Vice President - Controller Date: April 13, 1998 5 CAMPBELL SOUP COMPANY INTRODUCTION TO PRO FORMA CONSOLIDATED FINANCIAL INFORMATION The unaudited Pro Forma Consolidated Statements of Earnings for the Six Months Ended February 1, 1998 and for the Years Ended August 3, 1997, July 28, 1996 and July 30, 1995 present the consolidated results of the continuing operations of the company, assuming that the transactions associated with the spinoff occurred as of the beginning of the periods presented. The unaudited Pro Forma Consolidated Balance Sheet as of February 1, 1998 presents the consolidated financial position of the company, assuming that the transactions associated with the spinoff had been completed as of that date. The "Restated" columns represent the effects on reported results of operations and financial position of the company assuming the spinoff was consummated at the respective dates, and accordingly, Vlasic Foods International Inc. ("Vlasic") is reported as a discontinued operation in accordance with Accounting Principles Board Opinion No. 30 "Reporting the Results of Operations - Reporting the Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring Events and Transactions" ("APB 30"). The net sales, costs and expenses, and assets and liabilities of Vlasic, formerly reported as the company's Specialty Foods segment, have been excluded from the respective captions in the Pro Forma Consolidated Statements of Earnings and Pro Forma Consolidated Balance Sheet. The net operating results of Vlasic have been recorded as "Earnings from discontinued operations" and the net assets have been reported as "Net assets of discontinued operations". The unaudited Pro Forma Consolidated Financial Information should be read in conjunction with the historical financial statements and related notes thereto of the company included in the 1997 Annual Report on Form 10-K and the Quarterly Report filed on Form 10-Q for the quarter ended February 1, 1998. The pro forma information presented is for informational purposes only and may not be indicative of the results of operations that would have occurred had the spinoff been consummated as of the beginning of the financial periods presented, nor is it intended to be indicative of future results of operations or financial position of the company. 6 CAMPBELL SOUP COMPANY CONSOLIDATED PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED) (MILLIONS, EXCEPT PER SHARE AMOUNTS)
SIX MONTHS ENDED FEBRUARY 1, 1998 ------------------------------------------------------------------------- HISTORICAL PRO FORMA AS REPORTED LESS RESTATED PRO FORMA PRO FORMA DISCONTINUED ADJUSTMENTS OPERATIONS (A) Net sales $ 4,462 $ 639 $ 3,823 $ 3,823 - --------------------------------------------------------------------------------------------------------------------------------- Costs and expenses Cost of products sold 2,281 435 1,846 1,846 Marketing and selling expenses 944 115 829 829 Administrative expenses 188 29 159 159 Research and development expenses 38 4 34 34 Other expense 42 5 37 37 - --------------------------------------------------------------------------------------------------------------------------------- Total costs and expenses 3,493 588 2,905 2,905 - --------------------------------------------------------------------------------------------------------------------------------- Earnings before interest and taxes 969 51 918 918 Interest expense 93 1 92 (14) (B) 78 Interest income 6 6 6 - --------------------------------------------------------------------------------------------------------------------------------- Earnings before taxes 882 50 832 14 846 Taxes on earnings 304 19 285 5 (C) 290 - --------------------------------------------------------------------------------------------------------------------------------- Earnings from continuing operations 578 31 547 9 556 Earnings from discontinued operations, net of tax 31 (31) (D) Cumulative effect of change in accounting principle 11 - 11 11 - --------------------------------------------------------------------------------------------------------------------------------- Net earnings $ 567 $ 31 $ 567 $(22) $ 545 ================================================================================================================================= Per share - basic Earnings from continuing operations $ 1.20 $ 1.22 Earnings from discontinued operations 0.06 Cumulative effect of change in accounting principle (0.02) (0.02) - --------------------------------------------------------------------------------------------------------------------------------- Net earnings $ 1.24 $ 1.20 ================================================================================================================================= Weighted average shares outstanding - basic 457 457 ================================================================================================================================= Per share - assuming dilution Earnings from continuing operations $ 1.19 $ 1.20 Earnings from discontinued operations 0.06 Cumulative effect of change in accounting principle (0.02) (0.02) - --------------------------------------------------------------------------------------------------------------------------------- Net earnings $ 1.23 $ 1.18 ================================================================================================================================= Weighted average shares outstanding - assuming dilution 463 463 =================================================================================================================================
See Notes to Pro Forma Consolidated Financial Statements 7 CAMPBELL SOUP COMPANY CONSOLIDATED PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED) (MILLIONS, EXCEPT PER SHARE AMOUNTS)
YEAR ENDED AUGUST 3, 1997 ----------------------------------------------------------------- HISTORICAL PRO FORMA AS REPORTED LESS RESTATED PRO FORMA PRO FORMA DISCONTINUED ADJUSTMENTS OPERATIONS (A) Net sales $7,964 $1,352 $6,612 $6,612 - --------------------------------------------------------------------------------------------------------------------------- Costs and expenses Cost of products sold 4,305 892 3,413 3,413 Marketing and selling expenses 1,636 266 1,370 1,370 Administrative expenses 324 53 271 271 Research and development expenses 77 9 68 68 Other expense 140 2 138 138 Restructuring charge 216 13 203 203 - --------------------------------------------------------------------------------------------------------------------------- Total costs and expenses 6,698 1,235 5,463 5,463 - --------------------------------------------------------------------------------------------------------------------------- Earnings before interest and taxes 1,266 117 1,149 1,149 Interest expense 167 1 166 (29)(B) 137 Interest income 8 8 8 - --------------------------------------------------------------------------------------------------------------------------- Earnings before taxes 1,107 116 991 29 1,020 Taxes on earnings 394 37 357 11 (C) 368 - --------------------------------------------------------------------------------------------------------------------------- Earnings from continuing operations 713 79 634 18 652 Earnings from discontinued operations, net of tax 79 (79) (D) - --------------------------------------------------------------------------------------------------------------------------- Net earnings $ 713 $ 79 $ 713 $ (61) $ 652 =========================================================================================================================== Per share - basic Earnings from continuing operations $ 1.34 $ 1.38 Earnings from discontinued operations 0.17 - --------------------------------------------------------------------------------------------------------------------------- Net earnings $ 1.51 $ 1.38 =========================================================================================================================== Weighted average shares outstanding - basic 472 472 =========================================================================================================================== Per share - assuming dilution Earnings from continuing operations $ 1.33 $ 1.36 Earnings from discontinued operations 0.16 - --------------------------------------------------------------------------------------------------------------------------- Net earnings $ 1.49 $ 1.36 =========================================================================================================================== Weighted average shares outstanding - assuming dilution 478 478 ===========================================================================================================================
See Notes to Pro Forma Consolidated Financial Statements 8 CAMPBELL SOUP COMPANY CONSOLIDATED PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED) (MILLIONS, EXCEPT PER SHARE AMOUNTS)
YEAR ENDED JULY 28, 1996 ----------------------------------------------------------------- HISTORICAL PRO FORMA AS REPORTED LESS RESTATED PRO FORMA PRO FORMA DISCONTINUED ADJUSTMENTS OPERATIONS (A) Net sales $7,678 $1,354 $6,324 $6,324 - ------------------------------------------------------------------------------------------------------------------------ Costs and expenses Cost of products sold 4,363 908 3,455 3,455 Marketing and selling expenses 1,499 257 1,242 1,242 Administrative expenses 343 55 288 288 Research and development expenses 84 8 76 76 Other expense 72 0 72 72 - ------------------------------------------------------------------------------------------------------------------------ Total costs and expenses 6,361 1,228 5,133 5,133 - ------------------------------------------------------------------------------------------------------------------------ Earnings before interest and taxes 1,317 126 1,191 1,191 Interest expense 126 1 125 (28)(B) 97 Interest income 6 0 6 6 - ------------------------------------------------------------------------------------------------------------------------ Earnings before taxes 1,197 125 1,072 28 1,100 Taxes on earnings 395 41 354 11 (C) 365 - ------------------------------------------------------------------------------------------------------------------------ Earnings from continuing operations 802 84 718 17 735 Earnings from discontinued operations, net of tax 84 (84)(D) 0 - ------------------------------------------------------------------------------------------------------------------------ Net earnings $ 802 $ 84 $ 802 $ (67) $ 735 ======================================================================================================================== Per share - basic Earnings from continuing operations $ 1.44 $ 1.48 Earnings from discontinued operations 0.17 - ------------------------------------------------------------------------------------------------------------------------ Net earnings $ 1.61 $ 1.48 ======================================================================================================================== Weighted average shares outstanding - basic 498 498 ======================================================================================================================== Per share - assuming dilution Earnings from continuing operations $ 1.43 $ 1.46 Earnings from discontinued operations 0.16 - ------------------------------------------------------------------------------------------------------------------------ Net earnings $ 1.59 $ 1.46 ======================================================================================================================== Weighted average shares outstanding - assuming dilution 503 503 ========================================================================================================================
See Notes to Pro Forma Consolidated Financial Statements 9 CAMPBELL SOUP COMPANY CONSOLIDATED PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED) (MILLIONS, EXCEPT PER SHARE AMOUNTS)
YEAR ENDED JULY 30, 1995 ------------------------------------------------------------------------ HISTORICAL PRO FORMA AS REPORTED LESS RESTATED PRO FORMA PRO FORMA DISCONTINUED ADJUSTMENTS OPERATIONS (A) Net sales $ 7,250 $ 1,369 $ 5,881 $ 5,881 - ---------------------------------------------------------------------------------------------------------------------------------- Costs and expenses Cost of products sold 4,255 939 3,316 3,316 Marketing and selling expenses 1,371 258 1,113 1,113 Administrative expenses 326 55 271 271 Research and development expenses 88 9 79 79 Other expense 63 0 63 63 - ---------------------------------------------------------------------------------------------------------------------------------- Total costs and expenses 6,103 1,261 4,842 4,842 - ---------------------------------------------------------------------------------------------------------------------------------- Earnings before interest and taxes 1,147 108 1,039 1,039 Interest expense 115 2 113 (30)(B) 83 Interest income 10 0 10 10 - ---------------------------------------------------------------------------------------------------------------------------------- Earnings before taxes 1,042 106 936 30 966 Taxes on earnings 344 36 308 11 (C) 319 - ---------------------------------------------------------------------------------------------------------------------------------- Earnings from continuing operations 698 70 628 19 647 Earnings from discontinued operations, net of tax 70 (70)(D) - ---------------------------------------------------------------------------------------------------------------------------------- Net earnings $ 698 $ 70 $ 698 $ (51) $ 647 ================================================================================================================================== Per share - basic Earnings from continuing operations $ 1.26 $ 1.30 Earnings from discontinued operations 0.14 - ---------------------------------------------------------------------------------------------------------------------------------- Net earnings $ 1.40 $ 1.30 ================================================================================================================================== Weighted average shares outstanding - basic 498 498 ================================================================================================================================== Per share - assuming dilution Earnings from continuing operations $ 1.25 $ 1.29 Earnings from discontinued operations 0.14 - ---------------------------------------------------------------------------------------------------------------------------------- Net earnings $ 1.39 $ 1.29 ================================================================================================================================== Weighted average shares outstanding - assuming dilution 503 503 ==================================================================================================================================
See Notes to Pro Forma Consolidated Financial Statements 10 CAMPBELL SOUP COMPANY CONSOLIDATED PRO FORMA CONSOLIDATED BALANCE SHEET FEBRUARY 1, 1998 (UNAUDITED) (MILLIONS, EXCEPT PER SHARE AMOUNTS)
HISTORICAL PRO FORMA AS REPORTED LESS RESTATED PRO FORMA PRO FORMA DISCONTINUED ADJUSTMENTS OPERATIONS (A) -------------------------------------------------------------- Current assets Cash and cash equivalents $ 99 $ 1 $ 98 $ 98 Accounts receivable 910 160 750 $ 59 (E) 809 Inventories 722 164 558 558 Other current assets 174 15 159 159 - ------------------------------------------------------------------------------------------------------------------------- Total current assets 1,905 340 1,565 59 1,624 - ------------------------------------------------------------------------------------------------------------------------- Plant assets, net of depreciation 2,449 508 1,941 1,941 Intangible assets, net of amortization 2,124 84 2,040 2,040 Net assets of discontinued operations 720 (59) (E) (500) (H) (22) (G) (139) (F) Other assets 529 5 524 (14) (G) 510 - ------------------------------------------------------------------------------------------------------------------------- Total assets $ 7,007 $ 937 $ 6,790 $ (675) $ 6,115 ========================================================================================================================= Current liabilities Notes payable $ 2,112 $ 12 $ 2,100 $ (500) (H) $ 1,600 Payable to suppliers and others 522 82 440 440 Accrued liabilities 607 72 535 535 Accrued income taxes 197 197 197 - ------------------------------------------------------------------------------------------------------------------------- Total current liabilities 3,438 166 3,272 (500) 2,772 - ------------------------------------------------------------------------------------------------------------------------- Long-term debt 1,263 2 1,261 1,261 Nonpension postretirement benefits 441 37 404 (30) (G) 374 Other liabilities 381 12 369 (6) (G) 363 - ------------------------------------------------------------------------------------------------------------------------- Total liabilities 5,523 217 5,306 (536) 4,770 - ------------------------------------------------------------------------------------------------------------------------- Shareowners' equity Capital stock, $.0375 par value; authorized 20 20 20 560 shares; issued 542 shares Capital surplus 370 370 370 Earnings retained in the business 3,955 3,955 (139) (F) 3,816 Capital stock in treasury, at cost (2,749) (2,749) (2,749) Cumulative translation adjustments (112) (112) (112) - ------------------------------------------------------------------------------------------------------------------------- Total shareowners' equity 1,484 1,484 (139) 1,345 - ------------------------------------------------------------------------------------------------------------------------- Total liabilities and shareowners' equity $ 7,007 $ 6,790 $ (675) $ 6,115 =========================================================================================================================
See Notes to Pro Forma Consolidated Financial Statements 11 CAMPBELL SOUP COMPANY NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED FEBRUARY 1, 1998 AND YEARS ENDED AUGUST 3, 1997, JULY 28, 1996 AND JULY 30, 1995 (A) The "Discontinued Operations" columns in the unaudited pro forma financial information represent the results of operations and financial position of Vlasic Foods International Inc., adjusted to properly present such results as a discontinued operation. Interest expense has not been allocated to discontinued operations. In 1996 net earnings from discontinued operations include a one-time charge to reengineer the frozen food manufacturing facilities, which was offset by a gain on the sale of the Mrs. Paul's frozen seafood business. (B) To reduce net interest expense to reflect the reduction of short-term borrowings by $500 million as of the beginning of each period presented. In connection with the spinoff, the company effectively transferred $500 million of indebtedness to Vlasic. The pro forma adjustments are based on the weighted average interest rates for commercial paper for the respective periods (5.57% in 1998, 5.7% in 1997, 5.5% in 1996, and 6% in 1995). (C) To reflect the estimated tax impact of the pro forma adjustment referred to in (B) at a combined federal and state income tax rate of 38%. (D) To eliminate discontinued operations. (E) To reclassify intercompany payables from Vlasic to the company that will remain outstanding obligations of Vlasic after the spinoff. (F) To eliminate the net assets of discontinued operations (Vlasic) and to record the effect on shareowners' equity. (G) To record the transfer of pension and postretirement obligations to Vlasic and to eliminate the related deferred tax asset. (H) To record the impact of $500 million debt assumed by Vlasic as of the spinoff. -----END PRIVACY-ENHANCED MESSAGE-----