Statement Of Financial Position
Statement Of Financial Position Classified (USD $) | ||
In Millions | Jan. 31, 2010
| May. 03, 2009
|
ASSETS | ||
Cash and cash equivalents | 17.9 | 142.7 |
Trade accounts receivable, net of allowance | 215.3 | 188.5 |
Inventories | 885.8 | 677.4 |
Prepaid expenses and other current assets | 93.3 | 138.6 |
TOTAL CURRENT ASSETS | 1212.3 | 1147.2 |
Property, plant and equipment, net | 636.4 | 642.6 |
Goodwill | 1337.7 | 1337.7 |
Intangible assets, net | 1164.6 | 1171.5 |
Other assets, net | 35.5 | 22.3 |
TOTAL ASSETS | 4386.5 | 4321.3 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable and accrued expenses | 565.1 | 472.4 |
Short-term borrowings | 42.9 | 2.3 |
Current portion of long-term debt | 30 | 32.3 |
TOTAL CURRENT LIABILITIES | 638 | 507 |
Long-term debt | 1262.5 | 1525.9 |
Deferred tax liabilities | 446.8 | 390.5 |
Other non-current liabilities | 245.4 | 291.4 |
TOTAL LIABILITIES | 2592.7 | 2714.8 |
Stockholders' equity: | ||
Common stock ($0.01 par value per share, shares authorized: 500.0; 215.7 issued and 198.3 outstanding at January 31, 2010 and 215.1 issued and 197.7 outstanding at May 3, 2009) | 2.2 | 2.1 |
Additional paid-in capital | 1069.8 | 1047.5 |
Treasury stock, at cost | -183.1 | -183.1 |
Accumulated other comprehensive income (loss) | -24.4 | -38.4 |
Retained earnings | 929.3 | 778.4 |
TOTAL STOCKHOLDERS' EQUITY | 1793.8 | 1606.5 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 4386.5 | 4321.3 |
1_Statement Of Financial Positi
Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
Share data in Millions, except Per Share data | Jan. 31, 2010
| May. 03, 2009
|
Common stock, par value | 0.01 | 0.01 |
Common stock, shares authorized | 500 | 500 |
Common stock, issued | 215.7 | 215.1 |
Common stock, outstanding | 198.3 | 197.7 |
Statement Of Income
Statement Of Income (USD $) | ||||
In Millions, except Per Share data | 3 Months Ended
Jan. 31, 2010 | 3 Months Ended
Jan. 25, 2009 | 9 Months Ended
Jan. 31, 2010 | 9 Months Ended
Jan. 25, 2009 |
Net sales | 1013.2 | 942.3 | 2785.8 | 2569.5 |
Cost of products sold | 677.2 | 659.8 | 1880.7 | 1893.1 |
Gross profit | 336 | 282.5 | 905.1 | 676.4 |
Selling, general and administrative expense | 197.6 | 149 | 505.2 | 450.1 |
Operating income | 138.4 | 133.5 | 399.9 | 226.3 |
Interest expense | 31.7 | 27.4 | 96.9 | 85.1 |
Other expense | 15.5 | 7.9 | 18.2 | 18.8 |
Income from continuing operations before income taxes | 91.2 | 98.2 | 284.8 | 122.4 |
Provision for income taxes | 34 | 38.6 | 106.1 | 43.5 |
Income from continuing operations | 57.2 | 59.6 | 178.7 | 78.9 |
Income (loss) from discontinued operations before income taxes | 1.4 | -5.3 | 0.9 | 34.4 |
Provision (benefit) for income taxes | -0.8 | -6.2 | (1) | 12.5 |
Income from discontinued operations | 2.2 | 0.9 | 1.9 | 21.9 |
Net income | 59.4 | 60.5 | 180.6 | 100.8 |
Basic earnings per common share: | ||||
Continuing operations | 0.29 | 0.3 | 0.9 | 0.4 |
Discontinued operations | 0.01 | $0 | 0.01 | 0.11 |
Total | 0.3 | 0.3 | 0.91 | 0.51 |
Diluted earnings per common share: | ||||
Continuing operations | 0.28 | 0.3 | 0.89 | 0.4 |
Discontinued operations | 0.01 | $0 | 0.01 | 0.11 |
Total | 0.29 | 0.3 | 0.9 | 0.51 |
Statement Of Cash Flows Indirec
Statement Of Cash Flows Indirect (USD $) | ||
In Millions | 9 Months Ended
Jan. 31, 2010 | 9 Months Ended
Jan. 25, 2009 |
OPERATING ACTIVITIES: | ||
Net income | 180.6 | 100.8 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 74 | 77.5 |
Deferred taxes | 35.1 | 7.5 |
Write off of debt issuance cost and loss on debt refinancing | 24.8 | 0 |
(Gain) loss on asset disposals | 1.2 | -27.4 |
Stock compensation expense | 15.3 | 8.1 |
Discontinuation of hedge accounting for interest rate swap | 13.4 | 0 |
Other non-cash items, net | 5.5 | 2.7 |
Changes in operating assets and liabilities | -115.7 | -258.1 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 234.2 | -88.9 |
INVESTING ACTIVITIES: | ||
Capital expenditures | -65.6 | -55.5 |
Net proceeds from disposal of assets | 0 | 343.1 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | -65.6 | 287.6 |
FINANCING ACTIVITIES: | ||
Proceeds from short-term borrowings | 194.3 | 501.6 |
Payments on short-term borrowings | -152.5 | -364.8 |
Proceeds from long-term borrowings | 1042.2 | 0 |
Principal payments on long-term debt | -1308.2 | -327.2 |
Payment of debt-related costs | -43.6 | 0 |
Dividends paid | -27.7 | -23.7 |
Issuance of common stock | 2.8 | 2.1 |
Excess tax benefits from stock-based compensation | 0.6 | 0 |
NET CASH USED IN FINANCING ACTIVITIES | -292.1 | (212) |
Effect of exchange rate changes on cash and cash equivalents | -1.3 | 0.1 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | -124.8 | -13.2 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 142.7 | 25.7 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 17.9 | 12.5 |
Business and Basis of Presentat
Business and Basis of Presentation | |
9 Months Ended
Jan. 31, 2010 | |
Business and Basis of Presentation | Note 1. Business and Basis of Presentation Del Monte Foods Company and its consolidated subsidiaries (Del Monte or the Company) is one of the countrys largest producers, distributors and marketers of premium quality, branded food and pet products for the U.S. retail market, with leading food brands, such as Del Monte, SW, Contadina, College Inn and other brand names, and food and snack brands for dogs and cats such as Meow Mix, Kibbles n Bits, 9Lives, Milk-Bone, Pup-Peroni, Meaty Bone, Snausages, Pounce and other brand names. The Company also produces private label food and pet products. The majority of its products are sold nationwide in all channels serving retail markets, mass merchandisers, the U.S. military, certain export markets, the foodservice industry and food processors. The Company has two reportable segments: Consumer Products and Pet Products. The Consumer Products reportable segment includes the Consumer Products operating segment, which manufactures, markets and sells branded and private label shelf-stable products, including fruit, vegetable, tomato and broth products. The Pet Products reportable segment includes the Pet Products operating segment, which manufactures, markets and sells branded and private label dry and wet pet food and pet snacks. The Company operates on a 52 or 53-week fiscal year ending on the Sunday closest to April30. The results of operations for the three months ended January31, 2010 and January25, 2009 each reflect periods that contain 13 weeks. The results of operations for the nine months ended January31, 2010 and January25, 2009 each reflect periods that contain 39 weeks. The accompanying unaudited condensed consolidated financial statements of Del Monte as of January31, 2010 and for the three and nine months ended January31, 2010 and January25, 2009 have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of RegulationS-X. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, all adjustments consisting of normal and recurring entries considered necessary for a fair presentation of the results for the interim periods presented have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts in the financial statements and accompanying notes. These estimates are based on information available as of the date of the unaudited condensed consolidated financial statements. Therefore, actual results could differ from those estimates. Furthermore, operating results for the three and nine months ended January31, 2010 are not necessarily indicative of the results expected for the year ending May2, 2010. These unaudited condensed consolidated financial statements should be read in conjunction with the notes to the financial statements contained in the Companys annual report on Form 10-K for the year ended May3, 2009 (2009 Annual Report). All significant intercompany balances |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | |
9 Months Ended
Jan. 31, 2010 | |
Recently Issued Accounting Standards | Note 2. Recently Issued Accounting Standards In May2009, the Financial Accounting Standards Board (FASB) issued a statement which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. In February 2010, the FASB issued Accounting Standards Update No.2010-09, Subsequent Events, which amends the previous guidance on subsequent events and no longer requires Securities and Exchange Commission (SEC) filers to disclose the date through which subsequent events have been evaluated. The subsequent event provisions are effective for interim and annual reporting periods ending after June15, 2009 and were effective for the Company beginning in the first quarter of fiscal 2010. The amendments are effective February 2010. The adoption of this statement did not have an impact to the Companys condensed consolidated financial statements. In June 2009, the FASB issued a statement which establishes the FASB Accounting Standards Codification (ASC). The ASC establishes two levels of GAAPauthoritative and nonauthoritative. The ASC is the source of authoritative, nongovernmental GAAP, except for rules and interpretive releases of the Securities and Exchange Commission. Effective for financial statements issued for interim and annual periods ending after September15, 2009, the ASC was adopted by the Company in the second quarter of fiscal 2010. The adoption of the ASC did not impact the Companys consolidated financial statements. |
Employee Stock Plans
Employee Stock Plans | |
9 Months Ended
Jan. 31, 2010 | |
Employee Stock Plans | Note 3. Employee Stock Plans See Note 10 of the 2009 Annual Report for a description of the Companys stock-based incentive plans. On July28, 2009, the Board of Directors (the Board) adopted the Del Monte Foods Company 2002 Stock Incentive Plan, as amended and restated effective July28, 2009, subject to stockholder approval (the Amended Plan). The Amended Plan was approved by the Companys stockholders at its annual meeting held on September24, 2009. Under the Amended Plan, the total number of shares authorized for grant was increased by 11,419,645 shares to 42,978,385 shares. In addition, under the Amended Plan shares of common stock issued pursuant to equity incentives granted under the Amended Plan on or after May4, 2009 reduce the Amended Plans share reserve by one share in the case of options and stock appreciation rights with exercise prices at least equal to fair market value of the Companys common stock on the grant date and by 1.98 shares in the case of all other equity incentives granted under the Amended Plan; provided, however, that for such other stock awards granted prior to May4, 2009 but on or after April20, 2007, the reduction is 2.79 shares, instead of 1.98 shares. Prior to April30, 2007 but on or after May2, 2005, the reduction is 1.94 shares. For all awards granted prior to May2, 2005, the number of shares of common stock available for issuance under the Amended Plan is reduced by 1 share for each share of common stock issued. The fair value for stock options granted was estimated at the date of grant using a Black-Scholes option-pricing model. The following table presents the weighted average assumptions for options granted during the nine months ended January31, 2010 and January25, 2009: Nine Months Ended January31, 2010 January25, 2009 Dividend yield 2.6 % 1.8 % Expected volatility 28.5 % 26.4 % Risk-free interest rate 2.7 % 3.2 % Expected life (in years) 6.0 6.1 Stock option activity and related information during the period indicated was as follows: Options Outstanding Outstanding Weighted Average Exercise Price Options Exercisable Exercisable Weighted Average Exercise Price Balance at May 3, 2009 17,384,813 $ 9.17 10,993,068 $ 9.23 Granted 2,961,000 11.37 Forfeited (134,157 ) 10.25 Exercised (517,719 ) 7.76 Balance at January 31, 2010 19,693,937 $ 9.53 12,700,562 $ 9.32 As of January31, 2010, the aggregate intrinsic values of options outstanding and options exercisable were $36.6 and $26.2, respectively. At January31, 2010, the range of exercise prices and weighted-average remaining contractual life of outstanding options was as follows: Options Outstanding Options Exercisable Range of Exercise Price Per Share Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $6.04 - 8.78 7,766,144 5.40 $ 7.91 5,392,419 $ 7.98 $8.79 - 10.42 |
Inventories
Inventories | |
9 Months Ended
Jan. 31, 2010 | |
Inventories | Note 4. Inventories The Companys inventories consist of the following: January31, 2010 May3, 2009 Inventories: Finished products $ 826.9 $ 552.0 Raw materials and in-process material 41.7 45.2 Packaging material and other 66.4 112.6 LIFO Reserve (49.2 ) (32.4 ) Total Inventories $ 885.8 $ 677.4 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | |
9 Months Ended
Jan. 31, 2010 | |
Goodwill and Intangible Assets | Note5. Goodwill and Intangible Assets The following table presents the Companys goodwill and intangible assets: January31, 2010 May3, 2009 Goodwill $ 1,337.7 $ 1,337.7 Non-amortizable intangible assets: Trademarks 1,060.5 1,071.6 Total non-amortizable intangible assets 1,060.5 1,071.6 Amortizable intangible assets: Trademarks 40.7 32.6 Customer relationships 89.0 89.0 Other 11.0 11.0 140.7 132.6 Accumulated amortization (36.6 ) (32.7 ) Amortizable intangible assets, net 104.1 99.9 Intangible assets, net $ 1,164.6 $ 1,171.5 As of January31, 2010 and May3, 2009, the Companys goodwill was comprised of $150.2 related to the Consumer Products reportable segment and $1,187.5 related to the Pet Products reportable segment. Amortization expense for the three and nine months ended January31, 2010 was $1.5 and $3.9, respectively and $1.9 and $5.8 for the three and nine months ended January25, 2009, respectively. The Company expects to recognize $1.8 of amortization expense during the remainder of fiscal 2010. The following table presents expected amortization of intangible assets as of January31, 2010, for each of the five succeeding fiscal years: 2011 $ 7.1 2012 7.1 2013 6.4 2014 4.5 2015 4.5 |
Earnings Per Share
Earnings Per Share | |
9 Months Ended
Jan. 31, 2010 | |
Earnings Per Share | Note 6. Earnings Per Share The following tables set forth the computation of basic and diluted earnings per share from continuing operations: Three Months Ended Nine Months Ended January31, 2010 January25, 2009 January31, 2010 January25, 2009 Basic earnings per common share: Numerator: Income from continuing operations $ 57.2 $ 59.6 $ 178.7 $ 78.9 Denominator: Weighted average shares 199,100,000 198,300,000 198,800,000 198,000,000 Basic earnings per common share $ 0.29 $ 0.30 $ 0.90 $ 0.40 Diluted earnings per common share: Numerator: Income from continuing operations $ 57.2 $ 59.6 $ 178.7 $ 78.9 Denominator: Weighted average shares 199,100,000 198,300,000 198,800,000 198,000,000 Effect of dilutive securities 3,800,000 200,000 2,300,000 300,000 Weighted average shares and equivalents 202,900,000 198,500,000 201,100,000 198,300,000 Diluted earnings per common share $ 0.28 $ 0.30 $ 0.89 $ 0.40 The computation of diluted earnings per share calculates the effect of dilutive securities on weighted average shares. Dilutive securities include stock options, restricted stock units and other deferred stock awards. Options outstanding in the aggregate amount of 3,300,000 and 9,700,000 were not included in the computation of diluted earnings per share for the three and nine months ended January31, 2010, respectively, because their inclusion would have been antidilutive. Options outstanding in the aggregate amount of 18,200,000 and 15,100,000 were not included in the computation of diluted earnings per share for the three and nine months ended January25, 2009, respectively, because their inclusion would have been antidilutive. |
Debt
Debt | |
9 Months Ended
Jan. 31, 2010 | |
Debt | Note 7. Debt The Companys debt consists of the following, as of the dates indicated: January31, 2010 May3, 2009 Short-term borrowings: Revolver $ 38.6 $ Other 4.3 2.3 $ 42.9 $ 2.3 Long-term debt: Term A Loan $ 600.0 $ 218.5 Term B Loan 639.7 Total Term Loans 600.0 858.2 8 5/8% senior subordinated notes 450.0 6 3/4% senior subordinated notes 250.0 250.0 7 1/2% senior subordinated notes 450.0 1,300.0 1,558.2 Less unamortized discount on the 7 1/2% senior subordinated notes 7.5 Less current portion 30.0 32.3 $ 1,262.5 $ 1,525.9 New Notes On October1, 2009, the Company consummated a private placement offering of its senior subordinated notes due October 2019 with an aggregate principal amount of $450.0 and a stated interest rate of 71/2% (the New Notes). The Company used proceeds from the New Notes along with other available funds to fund a tender offer for its outstanding 85/8% senior subordinated notes due 2012 (Old Notes). The Company purchased $440.5 aggregate principal amount of the Old Notes pursuant to the tender offer. Old Notes totaling $9.5 aggregate principal amount were not tendered and remained outstanding until December16, 2009 when the Company redeemed them. During the three and nine months ended January31, 2010, the Company recognized $0.5 and $17.1, respectively, of expense related to the issuance of the New Notes and tender offer for the Old Notes, which is included in interest expense in the Condensed Consolidated Statements of Income. Fair Value of Senior Subordinated Notes As of January31, 2010 the fair values of the Companys 71/2% senior subordinated notes and 63/4% senior subordinated notes were $459.0 and $253.8, respectively. As of May3, 2009, the fair values of the Companys 85/8% senior subordinated notes and 63/4% senior subordinated notes were $460.1 and $241.9, respectively. New Senior Credit Facility On January29, 2010, the Company entered into a new five-year senior secured credit agreement with Bank of America, N.A., as administrative agent, and the other lender and agent parties thereto (with all related loan documents, and as amended from time to time, the Senior Credit Facility), replacing the Companys prior credit agreement dated February8, 2005 (with all related loan documents, and as amended from time to time, the Prior Credit Facility). All commitments under the Prior Credit Facility were terminated and all outstanding borrowings thereunder were repaid effective January29, 2010. The remaining obligations of Del Monte Corporation (DMC) and Del Monte Foods Company (DMFC) under the Prior Credit Facility generally are limited to certain remaining contingent indemnification obligations under such facility. The Prior Credit Facility consisted of a revolving credit facility which was scheduled to mature on February8, 2011, a term A loan facility which was scheduled to mature on February8, 2011, and a term B l |
Derivative Financial Instrument
Derivative Financial Instruments | |
9 Months Ended
Jan. 31, 2010 | |
Derivative Financial Instruments | Note 8.Derivative Financial Instruments The Company uses interest rate swaps, commodity swaps, futures option and swaption (an option on a swap) contracts as well as forward foreign currency contracts to hedge market risks relating to possible adverse changes in interest rates, commodity and other prices and foreign currency exchange rates, which (to the extent effective) affect interest expense on the Companys floating-rate obligations as well as the cost of its raw materials and other inputs, respectively. Interest Rates: The Companys debt primarily consists of floating rate term loans and fixed rate notes. The Company also uses its floating rate Revolver to fund seasonal working capital needs and other uses of cash. Interest expense on the Companys floating rate debt is typically calculated based on a fixed spread over a reference rate, such as LIBOR (also known as the Eurodollar rate). Therefore, fluctuations in market interest rates will cause interest expense increases or decreases on a given amount of floating rate debt. The Company manages a portion of its interest rate risk related to floating rate debt by entering into interest rate swaps in which the Company receives floating rate payments and makes fixed rate payments. On September6, 2007, the Company entered into an interest rate swap, with a notional amount of $400.0, as the fixed rate payer. The swap has an effective date of October26, 2007 and a maturity date of October29, 2010. A formal cash flow hedge accounting relationship was established between the swap and a portion of the Companys interest payment on floating rate debt. The swap is recorded as an asset or liability in the Companys consolidated balance sheet at fair value, with an offset to accumulated other comprehensive income to the extent the hedge is effective. Derivative gains and losses include in other comprehensive income are reclassified into earnings as the underlying transaction occurs. Any ineffectiveness gains and losses are recorded as an adjustment to other expense. As discussed in Note 7, on January29, 2010 the Company entered into the Senior Credit Facility which replaces the Companys Prior Credit Facility. In conjunction with the repayment of the Prior Credit Facility the interest rate swap was deemed ineffective due to the repayment of the underlying hedged liability. At January31, 2010, the fair value of the Companys interest rate swap was recorded as a current liability of $13.4. During the three and nine months ended January31, 2010, the $13.4 loss associated with the swap being deemed ineffective was reclassified from other comprehensive income (OCI) into earnings and is included in other expense in the Condensed Consolidated Statements of Income. The fair value of the Companys interest rate swap was recorded as a non-current liability of $21.1 at May3, 2009. Commodities: Certain commodities such as soybean meal, corn, wheat, soybean oil, diesel fuel and natural gas (collectively, commodity contracts) are used in the production of the Companys products. Generally these commodities are purchased based upon market prices that are established with the vendor as part of the purchase proce |
Fair Value Measurements
Fair Value Measurements | |
9 Months Ended
Jan. 31, 2010 | |
Fair Value Measurements | Note 9. Fair Value Measurements In September 2006, the FASB issued a statement addressing fair value measurements. This statement defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. The fair value provisions are effective for fiscal years beginning after November15, 2007. In February 2008, the FASB issued a staff position which delayed the effective date of the fair value provisions by one year for nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a nonrecurring basis. In the first quarter of fiscal 2009, the Company adopted the fair value provisions for financial assets and liabilities. This adoption did not have a material impact on the Companys consolidated financial statements. The Company adopted the fair value provisions for nonfinancial assets and liabilities in the first quarter of fiscal 2010. As of January31, 2010, the Company did not have any significant nonfinancial assets or liabilities measured at fair value subsequent to their initial recognition. A three-tier fair value hierarchy is used to prioritize the inputs used in measuring fair value. The hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels are defined as follows: Level 1 Inputs unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 Inputs quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and Level 3 Inputs unobservable inputs reflecting the Companys own assumptions in measuring the asset or liability at fair value. The Company uses commodities contracts as well as interest rate swaps and forward foreign currency contracts to hedge market risks relating to possible adverse changes in commodity and other prices, diesel fuel prices, interest rates and foreign exchange rates. The following table provides the fair values hierarchy for financial assets and liabilities measured on a recurring basis: FairValueatJanuary31,2010 Description Level1 Level2 Level3 Assets Commodity Contracts $ 1.2 $ 1.5 $ Foreign Currency Contracts 3.4 Total $ 1.2 $ 4.9 $ Liabilities Commodity Contracts $ 2.5 $ 1.5 $ Foreign Currency Contracts 0.4 Interest Rate Swap 13.4 Total $ 2.5 $ 15.3 $ The Companys determination of the fair value of its interest rate swap is calculated using a discounted cash flow analysis based on the terms of the swap contract and the observable interest rate curve. The Company measures the fair value of foreign currency forward contracts using an income approach b |
Comprehensive Income
Comprehensive Income | |
9 Months Ended
Jan. 31, 2010 | |
Comprehensive Income | Note 10. Comprehensive Income The following table reconciles net income to comprehensive income: Three Months Ended Nine Months Ended January31, 2010 January25, 2009 January31, 2010 January25, 2009 Net income $ 59.4 $ 60.5 $ 180.6 $ 100.8 Other comprehensive income (loss): Foreign currency translation adjustments (8.4 ) 1.1 (6.4 ) (1.8 ) Income (loss) on cash flow hedging instruments, net of tax 9.7 (0.7 ) 20.4 (20.4 ) Total other comprehensive income (loss) 1.3 0.4 14.0 (22.2 ) Comprehensive income $ 60.7 $ 60.9 $ 194.6 $ 78.6 |
Retirement Benefits
Retirement Benefits | |
9 Months Ended
Jan. 31, 2010 | |
Retirement Benefits | Note 11. Retirement Benefits Defined Benefit Plans. Del Monte sponsors a qualified defined benefit pension plan (during the three months ended January31, 2010, the Company merged its three qualified defined benefit pension plans into a single plan) and several unfunded defined benefit postretirement plans providing certain medical, dental and life insurance benefits to eligible retired, salaried, non-union hourly and union employees. Refer to Note12 of the 2009 Annual Report for information about these plans. The components of net periodic benefit cost of such plans for the three and nine months ended January31, 2010 and January25, 2009, respectively, are as follows: Three Months Ended Nine Months Ended Pension Benefits Other Benefits Pension Benefits Other Benefits January31, 2010 January25, 2009 January31, 2010 January25, 2009 January31, 2010 January25, 2009 January31, 2010 January25, 2009 Components of net periodic benefit cost Servicecostforbenefitsearned during the period $ 2.8 $ 3.1 $ 0.4 $ 0.5 $ 8.2 $ 9.4 $ 1.2 $ 1.4 Interest cost on projected benefit obligation 6.6 6.3 2.1 2.0 20.0 18.8 6.4 6.2 Expected return on plan assets (5.1 ) (6.7 ) (15.4 ) (20.1 ) Amortization of prior service cost/(credit) 0.3 0.3 (2.1 ) (2.1 ) 0.7 0.8 (6.3 ) (6.3 ) Amortization of (gain)/loss 0.4 1.4 (0.1 ) Curtailment loss 0.2 Net periodic benefit cost $ 5.0 $ 3.0 $ 0.4 $ 0.4 $ 14.9 $ 9.1 $ 1.2 $ 1.3 As of January31, 2010, the Company had made contributions to its defined benefit pension plan (including contributions made to the three plans prior to their merger) of $36.7 in fiscal 2010. The Company currently meets and plans to continue to meet the minimum funding levels required under the Pension Protection Act of 2006 (the Act). While the Company has no required contributions during the remainder of fiscal 2010, the Company is evaluating whether it will make any additional contributions during the remainder of the fiscal year. The Act imposes certain consequences on the Companys defined benefit plan if it does not meet the minimum funding levels. In addition to minimum funding levels, the Act encourages, but does not require, employers to fully fund their defined benefit pension plans and to meet incremental plan funding thresholds applicable prior to 2011. The Company has made contributions in excess of its required minimum amounts during fiscal 2009 and the first nine months of fiscal 2010. As a result of this incremental funding combined with better than expected plan financial returns, the Company has achieved the specified plan funding thresholds for th |
Income Taxes
Income Taxes | |
9 Months Ended
Jan. 31, 2010 | |
Income Taxes | Note 12. Income Taxes As of January31, 2010, the Company had $15.4 of unrecognized tax benefits, all of which would reduce income tax expense and the effective tax rate if recognized. |
Commitments and Contingencies
Commitments and Contingencies | |
9 Months Ended
Jan. 31, 2010 | |
Commitments and Contingencies | Note 13. Commitments and Contingencies The discussion below is not intended to be a complete discussion of the Companys commitments and contingencies. See Note 15 of the 2009 Annual Report for a description of the Companys commitments and contingencies. Lease Commitments At January31, 2010, the aggregate minimum rental payments required under non-cancelable operating leases were as follows: Remainder of fiscal 2010 $ 14.7 Fiscal 2011 48.0 Fiscal 2012 42.4 Fiscal 2013 36.3 Fiscal 2014 30.2 Fiscal 2015 27.9 Thereafter 99.2 Legal Proceedings As previously reported in the quarterly report on Form 10-Q for the period ended November1, 2009, except as set forth below, there have been no material developments in the Companys legal proceedings since the legal proceedings reported in the 2009 Annual Report: On October13, 2009, Kara Moline and Debra Lowe filed a class action complaint against the Company in San Francisco Superior Court, alleging violations of Californias False Advertising Act, Unfair Competition Law, and Consumer Legal Remedies Act. Specifically, the plaintiffs allege that the Company engaged in false and misleading advertising in the labeling of Natures Recipe Farm Stand Selects dog food. The plaintiffs seek injunctive relief, disgorgement of profits in an undisclosed amount, and attorneys fees. Additionally, the plaintiffs are seeking class certification. The Company denies plaintiffs allegations and plans to vigorously defend itself. Beginning with the pet food recall announced by Menu Foods, Inc. in March 2007, many major pet food manufacturers, including the Company, announced recalls of select products. The Company believes there have been over 90 class actions and purported class actions relating to these pet food recalls. The Company has been named as a defendant in seven class actions or purported class actions related to its pet food and pet snack recall, which it initiated March31, 2007. The Company is currently a defendant in the following case: Picus v. Del Monte filed on April30, 2007 in state court in Las Vegas, Nevada. The Company was a defendant in the following cases: Carver v. Del Monte filed on April4, 2007 in the U.S. District Court for the Eastern District of California; Ford v. Del Monte filed on April7, 2007 in the U.S. District Court for the Southern District of California; Hart v. Del Monte filed on April10, 2007 in state court in Los Angeles, California; Schwinger v. Del Monte filed on May15, 2007 in the U.S. District Court for the Western District of Missouri; Tompkins v. Del Monte filed on July13, 2007 in the U.S. District Court for the District of Colorado; and Blaszkowski v. Del Monte filed on May9, 2007 in the U.S. District Court for the Southern District of Florida. The named plaintiffs in these seven cases allege or alleged that their pets suffered injury and/or death as a result of ingesting the Companys and other defendants allegedly contaminated pet food and pet snack products. The Picus and Blaszkowski cases also contain or |
Segment Information
Segment Information | |
9 Months Ended
Jan. 31, 2010 | |
Segment Information | Note 14. Segment Information The Company has the following reportable segments: The Consumer Products reportable segment includes the Consumer Products operating segment, which manufactures markets and sells branded and private label shelf-stable products, including fruit, vegetable, tomato and broth products. The Pet Products reportable segment includes the Pet Products operating segment, which manufactures, markets and sells branded and private label dry and wet pet food and pet snacks. The Companys chief operating decision-maker, its Chief Executive Officer, reviews financial information presented on a consolidated basis accompanied by disaggregated information on net sales and operating income, by operating segment, for purposes of making decisions and assessing financial performance. The chief operating decision-maker reviews assets of the Company on a consolidated basis only. The accounting policies of the individual operating segments are the same as those of the Company. The following table presents financial information about the Companys reportable segments: Three Months Ended Nine Months Ended January31, 2010 January25, 2009 January31, 2010 January25, 2009 Net Sales: Consumer Products $ 544.4 $ 509.3 $ 1,482.6 $ 1,384.7 Pet Products 468.8 433.0 1,303.2 1,184.8 Total Company $ 1,013.2 $ 942.3 $ 2,785.8 $ 2,569.5 Operating Income: Consumer Products $ 69.3 $ 69.0 $ 173.9 $ 124.6 Pet Products 91.5 76.7 279.1 137.8 Corporate (a) (22.4 ) (12.2 ) (53.1 ) (36.1 ) Total Company 138.4 133.5 399.9 226.3 Reconciliation to income from continuing operations before income taxes: Interest expense 31.7 27.4 96.9 85.1 Other expense 15.5 7.9 18.2 18.8 Income from continuing operations before income taxes $ 91.2 $ 98.2 $ 284.8 $ 122.4 (a) Corporate represents expenses not directly attributable to reportable segments. |
Document Information
Document Information | |
9 Months Ended
Jan. 31, 2010 | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | 2010-01-31 |
Entity Information
Entity Information | ||
9 Months Ended
Jan. 31, 2010 | Mar. 05, 2010
| |
Trading Symbol | DLM | |
Entity Registrant Name | DEL MONTE FOODS CO | |
Entity Central Index Key | 0000866873 | |
Current Fiscal Year End Date | --05-02 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 198,565,566 |