INVESTMENTS IN UNCONSOLIDATED ENTITIES

On May 2, 2018, the Company (i) acquired an incremental 1% ownership interest in Multipro, a leading distributor of a variety of food products in Nigeria and Ghana, and (ii) exercised its call option (Purchase Option) to acquire a 50% interest in Tolaram Africa Foods, PTE LTD (TAF), a holding company with a 49% equity interest in an affiliated food manufacturer, resulting in the Company having a 24.5% interest in the affiliated food manufacturer.

As a result of the Company's incremental ownership interest in Multipro and concurrent changes to the shareholders' agreement, the Company now has a 51% controlling interest in and began consolidating Multipro. Accordingly, the acquisition was accounted for as a business combination and the assets and liabilities of Multipro were included in the June 30, 2018 Consolidated Balance Sheet and the results of its operations have been included in the Consolidated Statement of Income subsequent to the acquisition date.

TAF and other unconsolidated entities of the Company are suppliers of Multipro. The related trade payables are generally settled on a monthly basis. TAF’s net sales consist of inventory purchases by Multipro. Multipro’s cost of goods sold primarily consists of inventory purchases from TAF and other unconsolidated entities of the Company.

See discussion regarding the Multipro acquisition and Investment in TAF, in Note 3.

Summarized combined financial information for the Company’s investments in unconsolidated entities is as follows (on a 100% basis, excluding amortization and before the elimination of intercompany accounts):



Statement of Operations
(millions)	2018			2017			2016
Net sales (a):
TAF	$	350		$	—		$	—
Multipro	281			754			662
Others	81			55			46
Total net sales	$	712		$	809		$	708
Gross profit (a):
TAF	$	70		$	—		$	—
Multipro	30			86			71
Others	12			14			10
Total gross profit	$	112		$	100		$	81
Income before income taxes (a)	16			43			28
Net income (a)	9			25			15
Balance sheets	December 29, 2018			December 30, 2017
Current assets	$	312		$	155
Non-current assets	213			139
Current liabilities	(233		)	(181		)
Non-current liabilities	(167		)	(37		)

(a) 2018 includes four months of results for Multipro and seven months of results for TAF.