Downers Grove, Ill., Oct. 29, 2008 – Sara Lee Corp. today filed a Form 8-K to restate annual business results for fiscal 2007 and fiscal 2008 as well as quarterly results for fiscal 2008 to reflect two accounting changes.
In fiscal 2009, the corporation adopted a policy to include mark-to-market gains and losses in general corporate expenses until the exposure being hedged affects the earnings of the business segment. At that time, the cumulative gain or loss previously recorded in general corporate expenses for the derivative instrument will be reclassified into the business segment’s results.
Also beginning in fiscal 2009, the corporation implemented certain changes to its North American organizational structure that primarily involved the transfers of the frozen bakery and beverage (Senseo) operations from the North American Retail Bakery segment into the North American Retail Meats segment, and a small component of the Foodservice meats operation into the North American Retail Meats segment. As a result, the three North American segments have been renamed as follows – North American Retail (previously North American Retail Meats), North American Fresh Bakery (previously North American Retail Bakery) and North American Foodservice (previously Foodservice).
“This restatement provides greater clarity about the actual performance of our segments by eliminating the volatility created by mark-to-market accounting from the segment results,” said L.M. (Theo) de Kool, executive vice president and chief financial and administrative officer, Sara Lee Corp. “And, at the same time, we made minor changes to our business segment structure to better reflect how we do business.”
The changes in the business segment reporting did not impact the international segments and did not have a material impact on the segment assets of the North American operations. The corporation has revised the name of the Household and Body Care segment to International Household and Body Care.