-----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, GXV/ycYtn2LxG6vWOAbLu6HOac88/g9COuYqmJ4pGS9iGC/zIhDf4ZUceutgyLRX Kh7SDnPMqH0XCyU09F5yEA== 0000023217-97-000002.txt : 19970109 0000023217-97-000002.hdr.sgml : 19970109 ACCESSION NUMBER: 0000023217-97-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19961124 FILED AS OF DATE: 19970108 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONAGRA INC /DE/ CENTRAL INDEX KEY: 0000023217 STANDARD INDUSTRIAL CLASSIFICATION: MEAT PACKING PLANTS [2011] IRS NUMBER: 470248710 STATE OF INCORPORATION: DE FISCAL YEAR END: 0525 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-07275 FILM NUMBER: 97502579 BUSINESS ADDRESS: STREET 1: ONE CONAGRA DR CITY: OMAHA STATE: NE ZIP: 68102 BUSINESS PHONE: 4025954000 FORMER COMPANY: FORMER CONFORMED NAME: NEBRASKA CONSOLIDATED MILLS CO DATE OF NAME CHANGE: 19721201 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 24, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________to_____________ Commission File Number 1-7275 ___________________________________________ CONAGRA, INC. __________________________________________________________________ (Exact name of registrant, as specified in charter) Delaware 47-0248710 __________________________________________________________________ (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) One ConAgra Drive, Omaha, Nebraska 68102-5001 __________________________________________________________________ (Address of Principal Executive Offices) (Zip Code) (402) 595-4000 __________________________________________________________________ (Registrant's telephone number, including area code) NA __________________________________________________________________ (Former name, former address and former fiscal year, if changed since last report.) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No _______ _______ Number of shares outstanding of issuer's common stock, as of December 22, 1996 was 240,116,885. PART I - FINANCIAL INFORMATION CONAGRA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in Millions) NOV 24, MAY 26, NOV 26, 1996 1996 1995 __________ __________ __________ ASSETS Current assets: Cash and cash equivalents $ 78.4 $ 113.7 $ 46.4 Receivables, less allowance for doubtful accounts of $69.8, $52.1 and $68.0 2,469.1 1,428.4 2,530.7 Inventory: Hedged commodities 1,338.4 1,369.4 1,350.2 Other 2,741.6 2,204.0 2,610.8 __________ __________ __________ Total inventory 4,080.0 3,573.4 3,961.0 Prepaid expenses 433.7 451.4 384.5 __________ __________ __________ Total current assets 7,061.2 5,566.9 6,922.6 __________ __________ __________ Property, plant and equipment: Cost 5,192.6 4,971.3 5,175.3 Less accumulated depreciation 2,010.5 1,915.0 1,935.9 Less valuation reserve related to restructuring 164.8 235.8 - __________ __________ __________ Property, plant and equipment, net 3,017.3 2,820.5 3,239.4 Brands, trademarks and goodwill, at cost less accumulated amortization 2,460.2 2,405.6 2,564.9 Other assets 415.8 403.6 449.3 __________ __________ __________ $ 12,954.5 $ 11,196.6 $ 13,176.2 __________ __________ __________ __________ __________ __________ The accompanying notes are an integral part of the consolidated financial statements. CONAGRA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in Millions) NOV 24, MAY 26, NOV 26, 1996 1996 1995 __________ __________ __________ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Notes payable $ 2,864.9 $ 416.3 $ 3,112.6 Current installments of long-term debt 356.4 142.5 129.0 Accounts payable 1,977.1 1,856.9 1,706.9 Advances on sales 244.0 1,390.9 209.1 Other accrued liabilities 1,378.3 1,387.1 1,452.7 __________ __________ __________ Total current liabilities 6,820.7 5,193.7 6,610.3 __________ __________ __________ Senior long-term debt, excluding current installments 1,557.2 1,512.9 1,727.0 Other noncurrent liabilities 938.4 959.5 904.4 Subordinated debt 750.0 750.0 750.0 Preferred securities of subsidiary company 525.0 525.0 525.0 Preferred shares subject to mandatory redemption - - 27.9 Common stockholders' equity: Common stock of $5 par value, authorized 1,200,000,000 shares, issued 253,058,213, 252,990,917 and 252,957,072 1,265.3 1,264.9 1,264.8 Additional paid-in capital 568.9 423.1 410.8 Retained earnings 1,851.9 1,683.5 1,858.9 Foreign currency translation adjustment (11.9) (39.1) (29.3) Less treasury stock, at cost, common shares 12,828,189, 9,834,464 and 4,846,730 (526.0) (390.0) (166.7) __________ __________ __________ 3,148.2 2,942.4 3,338.5 Less unearned restricted stock and value of 14,383,996, 16,014,644 and 17,541,528 common shares held in EEF (785.0) (686.9) (706.9) __________ __________ __________ Total common stockholders' equity 2,363.2 2,255.5 2,631.6 __________ __________ __________ $ 12,954.5 $11,196.6 $ 13,176.2 __________ __________ __________ __________ __________ __________ The accompanying notes are an integral part of the consolidated financial statements. CONAGRA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and shares in millions except per share amounts) THIRTEEN WEEKS ENDED NOV 24, NOV 26, 1996 1995 __________ __________ Net sales $ 6,764.5 $ 6,629.9 __________ __________ Costs and expenses: Cost of goods sold 5,806.3 5,677.4 Selling, administrative and general expenses 569.2 591.6 Interest expense, net 72.7 77.6 __________ __________ 6,448.2 6,346.6 __________ __________ Income before income taxes 316.3 283.3 Income taxes 129.0 116.2 __________ __________ Net income 187.3 167.1 Less preferred dividends - 3.5 __________ __________ Net income available for common stock $ 187.3 $ 163.6 __________ __________ __________ __________ Earnings per common and common equivalent share $ 0.82 $ 0.72 __________ __________ __________ __________ Weighted average number of common and common equivalent shares outstanding 229.7 226.9 __________ __________ __________ __________ Cash dividends declared per common share $ 0.272 $ 0.237 __________ __________ __________ __________ CONAGRA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and shares in millions except per share amounts) TWENTY-SIX WEEKS ENDED NOV 24, NOV 26, 1996 1995 __________ __________ Net sales $ 13,168.8 $ 13,066.1 __________ __________ Costs and expenses: Cost of goods sold 11,418.7 11,311.8 Selling, administrative and general expenses 1,128.2 1,169.9 Interest expense, net 142.8 153.5 __________ __________ 12,689.7 12,635.2 __________ __________ Income before income taxes 479.1 430.9 Income taxes 195.7 176.7 __________ __________ Net income 283.4 254.2 Less preferred dividends - 8.6 __________ __________ Net income available for common stock $ 283.4 $ 245.6 __________ __________ __________ __________ Earnings per common and common equivalent share $ 1.24 $ 1.08 _________ __________ __________ __________ Weighted average number of common and common equivalent shares outstanding 229.3 227.2 __________ __________ __________ __________ Cash dividends declared per common share $ 0.510 $ 0.445 __________ __________ __________ __________ The accompanying notes are an integral part of the consolidated financial statements. CONAGRA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Millions) TWENTY-SIX WEEKS ENDED NOV 24, NOV 26, Decrease in Cash and Cash Equivalents 1996 1995 __________ __________ Cash flows from operating activities: Net income $ 283.4 $ 254.2 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and other amortization 170.5 163.8 Goodwill amortization 34.7 36.0 Other noncash items (includes nonpension postretirement benefits) (7.9) 27.7 Change in assets and liabilities before effects from business acquisitions (2,487.2) (2,374.7) __________ __________ Net cash flows from operating activities (2,006.5) (1,893.0) __________ __________ Cash flows from investing activities: Sale of property, plant and equipment 17.9 31.9 Additions to property, plant and equipment (289.0) (285.7) Payment for business acquisitions (192.5) (454.0) Monfort Finance Company notes receivable and other items (51.2) 56.2 __________ __________ Net cash flows from investing activities (514.8) (651.6) __________ __________ Cash flows from financing activities: Net short-term borrowings 2,433.3 3,084.2 Proceeds from issuance of long-term debt 397.5 - Cash dividends paid (107.3) (105.9) Repayment of long-term debt (140.2) (54.3) Treasury stock purchases (131.1) (399.1) Employee Equity Fund stock transactions 8.7 7.5 Other items 25.1 (1.4) _________ __________ Net cash flows from financing activities 2,486.0 2,531.0 __________ __________ Net decrease in cash & cash equivalents (35.3) (13.6) Cash and cash equivalents at beginning of year 113.7 60.0 __________ __________ Cash and cash equivalents at end of period $ 78.4 $ 46.4 __________ __________ __________ __________ The accompanying notes are an integral part of the consolidated financial statements. CONAGRA, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS NOVEMBER 24, 1996 (1) The information furnished herein relating to interim periods has not been examined by independent Certified Public Accountants. In the opinion of management, all adjustments necessary for a fair statement of the results for the periods covered have been included. All such adjustments are of a normal recurring nature. The accounting policies followed by the Company, and additional footnotes, are set forth in the financial statements included in the Company's 1996 annual report, which report was incorporated by reference in Form 10-K for the fiscal year ended May 26, 1996. (2) The composition of inventories is as follows (in millions): NOV 24, MAY 26, NOV 26, 1996 1996 1995 __________ __________ __________ Hedged commodities $ 1,338.4 $ 1,369.4 $ 1,350.2 Food products and livestock 1,390.2 1,219.9 1,341.3 Agricultural chemicals, fertilizer and feed 538.3 399.4 465.8 Retail merchandise 118.5 122.7 173.7 Other, principally ingredients and supplies 694.6 462.0 630.0 __________ __________ __________ $ 4,080.0 $ 3,573.4 $ 3,961.0 __________ __________ __________ __________ __________ __________ (3) On August 29, 1996, the Company purchased certain assets of Gilroy Foods from McCormick & Company, Inc. for approximately $132 million in cash. Gilroy Foods, based in Gilroy, California, manufactures dehydrated garlic and onion products principally for industrial markets. Gilroy Foods' sales in 1995 were approximately $200 million. (4) Following is a condensed statement of common stockholders' equity (in millions): Unearned Add'l Foreign Restricted Common Paid-In Retained Curr Treasury & EEF Stock Capital Earnings Trns Adj Stock Stock Total ___________ ___________ ___________ ___________ ___________ ___________ ___________ Balance 5/26/96 $1,264.9 $423.1 $1,683.5 ($39.1) ($390.0) ($686.9) $2,255.5 Shares issued Stock option and incentive plans 0.3 1.0 1.3 EEF*: stock option, incentive and other employee benefit plans 5.4 42.5 47.9 Fair market valuation of EEF shares 139.0 (139.0) - Acquisitions 0.1 0.4 0.5 Shares acquired Incentive plans (4.9) (1.6) (6.5) Treasury shares purchased (131.1) (131.1) Foreign currency translation adjustment 27.2 27.2 Cash dividends declared - common stock (115.0) (115.0) Net income 283.4 283.4 __________ _________ __________ ___________ ___________ _____________________ Balance 11/24/96 $1,265.3 $ $568.9 $1,851.9 ($11.9) ($526.0) ($785.0) $2,363.2 __________ _________ ___________ ___________ ___________ ___________ ___________ __________ _________ ___________ ___________ ___________ ___________ ___________ *Employee Equity Fund
(5) In fiscal 1991, ConAgra acquired Beatrice Company (Beatrice). As a result of the acquisition and the significant pre-acquisition tax and other contingencies of the Beatrice businesses and its former subsidiaries, the consolidated post-acquisition financial statements of ConAgra have reflected significant liabilities and valuation allowances associated with the estimated resolution of these contingencies. As a result of a settlement reached with the Internal Revenue Service in fiscal 1995, ConAgra released $230.0 million of a valuation allowance and reduced noncurrent liabilities by $135.0 million, with a resulting reduction of goodwill associated with the Beatrice acquisition of $365.0 million. Federal income tax returns of Beatrice for its fiscal 1990 and various state tax returns remain open. However, after taking into account the foregoing adjustments, management believes that the ultimate resolution of all remaining pre-acquisition Beatrice tax contingencies should not exceed the reserves established for such matters. Beatrice is also engaged in various litigation and environmental proceedings related to businesses divested by Beatrice prior to its acquisition by ConAgra. The environmental proceedings include litigation and administrative proceedings involving Beatrice's status as a potentially responsible party at 44 Superfund, proposed Superfund or state-equivalent sites. Beatrice has paid or is in the process of paying its liability share at 42 of these sites. Beatrice has established substantial reserves for these matters. The environmental reserves are based on Beatrice's best estimate of its undiscounted remediation liabilities, which estimates include evaluation of investigatory studies, extent of required cleanup, the known volumetric contribution of Beatrice and other potentially responsible parties and Beatrice's prior experience in remediating sites. Management believes the ultimate resolution of such Beatrice legal and environmental contingenices should not exceed the reserves established for such matters. ConAgra is party to a number of other lawsuits and claims arising out of the operation of its businesses. After taking into account liabilities recorded for all of the foregoing matters, management believes the ultimate resolution of such matters should not have a material adverse effect on ConAgra's financial condition, results of operation or liquidity. (6) Earnings per common and common equivalent share are calculated on the basis of the weighted average outstanding common shares and, when applicable, those outstanding options that are dilutive and after giving effect to the preferred stock dividend requirements. Fully diluted earnings per share did not differ significantly from primary earnings per share in any period presented. (7) On October 3, 1996, the Company issued $400 million of senior notes with an interest rate of 7.125% due October 1, 2026 and redeemable at the option of the holders on October 1, 2006. The notes were priced at 99.375% of par. (8) In December, 1996, the Company's Board of Directors authorized ConAgra to purchase up to five million shares of the Company's outstanding common stock from time to time in the open market in continuation of the Company's systematic pattern of common stock purchase designed to avoid the dilutive effect on earnings per share of stock based compensation programs and acquisitions using stock accounted for as purchases. CONAGRA, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Following is management's discussion and analysis of certain significant factors which have affected the Company's financial condition and operating results for the periods included in the accompanying consolidated condensed financial statements. Results for the fiscal 1997 second quarter and first half are not necessarily indicative of results which may be attained in the future. FINANCIAL CONDITION Versus fiscal year end 1996, the Company's capital investment (working capital plus noncurrent assets) increased $130.9 million. Working capital decreased $132.7 million and noncurrent assets increased $263.6 million. The decrease in working capital resulted from an increase in short-term debt due to business acquisitions, normal property, plant and equipment additions, from treasury stock purchases and a normal seasonal increase in accounts receivable. The Company's objective is that senior long-term debt normally will not exceed 30 percent of total long-term debt plus equity. At November 24,1996, senior long-term debt was 30 percent of total long-term debt plus equity compared to 30 percent at May 26,1996 and 31 percent at November 26, 1995. OPERATING RESULTS A summary of the period to period increases (decreases) in the principal components of operations is shown below (dollars in millions, except per share amounts). COMPARISON OF THE PERIODS ENDED NOV. 24, 1996 & NOV. 26, 1995 THIRTEEN WEEKS TWENTY-SIX WEEKS DOLLARS % DOLLARS % ________________________________ Net sales 134.6 2.0 102.7 0.8 Cost of goods sold 128.9 2.3 106.9 0.9 Gross profit 5.7 0.6 (4.2) (0.2) Selling, administrative and general expenses (22.4) (3.8) (41.7) (3.6) Interest expense, net (4.9) (6.3) (10.7) (7.0) Income before income taxes 33.0 11.6 48.2 11.2 Income taxes 12.8 11.0 19.0 10.8 Net income 20.2 12.1 29.2 11.5 Preferred Dividends (3.5) (100.0) (8.6) (100.0) Net Income available for common stock 23.7 14.5 37.8 15.4 Earnings per common and common equivalent share 0.10 13.9 0.16 14.8 Two of ConAgra's industry segments, Food Inputs & Ingredients and Grocery/Diversified Products increased operating profit in the second quarter and first half of fiscal 1997 versus the same periods in fiscal 1996. The increase in those segments was somewhat offset by a decrease in the Refrigerated Foods segment second quarter and first half operating profit. ConAgra's total sales and cost of sales were both up 2% in the second quarter and up 1% in the first half of fiscal 1997 compared to the same periods last year, while selling, general and administrative expenses were down 4% in the second quarter and 3% for the first half of fiscal 1997 versus fiscal 1996. Sources of increased sales and related cost of goods sold during the second quarter and first half of fiscal 1997 were the Grocery/Diversified Products segment and the inputs and grain processing businesses in the Food Inputs & Ingredients segment. Refrigerated Foods segment sales and related cost of sales declined in the second quarter and first half. Selling, general and administrative expenses for all segments in the first half of fiscal 1997 were lower than the same period in fiscal 1996. For the second quarter of fiscal 1997 versus the second quarter of fiscal 1996, selling, general and administrative expenses were lower in the Refrigerated Foods and Food Inputs & Ingredients segments and up slightly in the Grocery/Diversified Products segment. Net income increased $20.2 million in the second quarter and $29.2 million in the first half of fiscal 1997 versus the same periods last year. In the Grocery/Diversified Products segment, operating profit increased 30 percent in the second quarter and 26 percent in the first half of fiscal 1997 versus the same periods last year. Sales increased 12 percent in fiscal 1997's second quarter and 10% in the first half versus the same periods in fiscal 1996. Unit volume growth in two Grocery Products businesses, Hunt-Wesson and ConAgra Frozen Foods, contributed to increased operating profit. The Lamb-Weston potato products business, the Golden Valley Microwave Foods and the seafood businesses all contributed to increased operating profit in the second quarter and first half of fiscal 1997. In ConAgra's Food Inputs & Ingredients segment, operating profit increased 15 percent in the second quarter and 19 percent in the first half of fiscal 1997 compared to the same periods in fiscal 1996. Segment sales increased 4 percent in the second quarter and 3 percent in the first half. Excluding business dispositions and acquisitions, first half segment sales increased nearly 5 percent over the same period last year. Major sources of the segment's second quarter and first half operating profit growth included flour milling, grain merchandising and specialty food ingredients. Commodity services, Europe processing operations, the dry edible bean business, specialty retailing and a private label business all contributed to segment operating profit growth in both periods. Crop inputs operating profit increased in the second quarter but was flat in the first half. In ConAgra's Refrigerated Foods segment, operating profit decreased 28 percent in the second quarter and 20 percent in the first half of fiscal 1997 versus the same periods in fiscal 1996. Segment sales decreased 3 percent in the second quarter and 4 percent in the first half of fiscal 1997 primarily due to beef and poultry operations divested or restructured during and after last year's second quarter. Branded processed meats operating profit was up in the second quarter and first half. U.S. beef operating profit declined in the second quarter and first half of fiscal 1997 while Australia beef operating profit improved in both periods. Second quarter and first half operating profit decreased in the pork business. However, the Company considers this earnings level to be satisfactory given the industry's current high cost of raw materials. Pressured by high feed ingredients costs, poultry products operating profit was down in both periods. Cheese business operating profits were down slightly in the second quarter and up slightly in the first half. Operating profit is based on net sales less all identifiable operating expenses and includes the related equity in earnings of companies included on the basis of the equity method of accounting. General corporate expense, interest expense (except financial businesses), income taxes and goodwill amortization are excluded from segment operating profit. For financial businesses, operating profit includes the effect of interest, which is a large element of their operating costs. Summarizing ConAgra's results for fiscal 1997's second quarter compared to fiscal 1996's second quarter: earnings per share 82 cents, up 14 percent from 72 cents; net income available for common stock (net income minus preferred dividends) $187.3 million, up 14.5 percent from $163.6 million; net sales $6.76 billion up 2 percent from $6.63 billion. For fiscal 1997's first half: earnings per share $1.24, up 15 percent from $1.08; net income available for common stock $283.4 million, up 15 percent from $245.6 million; net sales $13.17 billion up 1 percent from $13.07 billion. As mentioned, first half and second quarter sales growth was constrained by business divestitures and restructuring initiatives. Fiscal 1997 second quarter and first half earnings per share growth of 14 percent and 15 percent is consistent with growth of 14.5 percent and 15 percent in net income available for common stock, the net earnings measure which includes comparable financing expense. ConAgra redeemed the company's Class E preferred stock during fiscal 1996's second quarter, the last quarter in which preferred dividends were paid. Preferred dividends of $3.5 million and $8.6 million in fiscal 1996's second quarter and first half are approximately offset in fiscal 1997's second quarter and first half by the expense of financing the Class E preferred stock redemption. Weighted average shares outstanding increased in fiscal 1997's second quarter and first half over the same periods in fiscal 1996 primarily as a result of common stock repurchases in fiscal 1996's first half for conversion of the Class E preferred stock which occurred in the latter part of fiscal 1996's second quarter. CONAGRA, INC. AND SUBSIDIARIES PART II - OTHER INFORMATION ITEM 5. OTHER INFORMATION. On December 12, 1996, Mogens C. Bay and Kenneth E. Stinson were elected to ConAgra's board of directors. Mr. Bay, age 47, is President and Chief Executive Officer of Valmont Industries, Inc. Mr. Stinson, age 54, is Chairman and Chief Executive Officer of Kiewit Construction Group, Inc. and Executive Vice President of parent company Peter Kiewit Sons', Inc. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. (A) EXHIBITS. 12 - Statement regarding computation of ratio of earnings to fixed charges. (B) REPORTS ON FORM 8-K. None. CONAGRA, INC. By: /s/ James P. O'Donnell _________________________ James P. O'Donnell Senior Vice President and Chief Financial Officer By: /s/ Kenneth W. DiFonzo _________________________ Kenneth W. DiFonzo Vice President and Controller Dated this 8 day of January, 1997. EXHIBIT INDEX EXHIBIT DESCRIPTION PAGE 12 - Statement regarding computation of ratio of earnings to fixed charges............. 18 EX-12 2 EXHIBIT 12 CONAGRA, INC. AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES ($ IN MILLIONS) Six Months Ended November 24, 1996 ____________ Fixed charges: Interest expense $ 165.7 Capitalized interest 4.0 Interest in cost of goods sold 9.9 One third of non-cancellable lease rent 18.8 ------------ Total fixed charges (A) 198.4 ============ Earnings: Pretax income 479.1 Adjustment for unconsolidated subidiaries (0.4) ------------ Pretax income of the Company as a whole 478.7 Add fixed charges 198.4 Less capitalized interest (4.0) ------------ Earnings and fixed charges (B) 673.1 ============ Ratio of earnings to fixed charges (B/A) 3.4 EXHIBIT 12 (Continued) For the purpose of computing the above ratio of earnings to fixed charges, earnings consist of income before taxes and fixed charges. Fixed charges, for the purpose of computing earnings are adjusted to exclude interest capitalized. Fixed charges include interest on both long and short-term debt (whether said interest is expensed or capitalized and including interest charged to cost of goods sold), and a portion of noncancellable rental expense representative of the interest factor. The ratio is computed using the amounts for ConAgra as a whole, including its majority-owned subsidiaries, whether or not consolidated, and its proportionate share of any 50% owned subsidiaries, whether or not ConAgra guarantees obligations of these subsidiaries. EX-27 3
5 1000 6-MOS MAY-25-1997 NOV-24-1996 78400 0 2538900 69800 4080000 7061200 5192600 2175300 12954500 6820700 2307200 0 525000 1265300 1097900 12954500 13168800 13168800 11418700 11418700 1128200 0 142800 479100 195700 283400 0 0 0 283400 1.24 0
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