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Previous: CABOT CORP, SC 13G/A, 1998-04-14 |
Next: CASCADE CORP, DEF 14A, 1998-04-14 |
<PAGE> 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
==============================================================================
<PAGE> 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.
<PAGE> 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
<PAGE> 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
<PAGE> 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.
<PAGE> 6
CAMPBELL SOUP COMPANY CONSOLIDATED
PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS
(UNAUDITED)
(MILLIONS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
SIX MONTHS ENDED FEBRUARY 1, 1998
-------------------------------------------------------------------------
HISTORICAL PRO FORMA
AS REPORTED LESS RESTATED PRO FORMA PRO FORMA
DISCONTINUED ADJUSTMENTS
OPERATIONS (A)
<S> <C> <C> <C> <C> <C>
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
=================================================================================================================================
</TABLE>
See Notes to Pro Forma Consolidated Financial Statements
<PAGE> 7
CAMPBELL SOUP COMPANY CONSOLIDATED
PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS
(UNAUDITED)
(MILLIONS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 3, 1997
-----------------------------------------------------------------
HISTORICAL PRO FORMA
AS REPORTED LESS RESTATED PRO FORMA PRO FORMA
DISCONTINUED ADJUSTMENTS
OPERATIONS (A)
<S> <C> <C> <C> <C> <C>
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
===========================================================================================================================
</TABLE>
See Notes to Pro Forma Consolidated Financial Statements
<PAGE> 8
CAMPBELL SOUP COMPANY CONSOLIDATED
PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS
(UNAUDITED)
(MILLIONS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
YEAR ENDED JULY 28, 1996
-----------------------------------------------------------------
HISTORICAL PRO FORMA
AS REPORTED LESS RESTATED PRO FORMA PRO FORMA
DISCONTINUED ADJUSTMENTS
OPERATIONS (A)
<S> <C> <C> <C> <C> <C>
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
========================================================================================================================
</TABLE>
See Notes to Pro Forma Consolidated Financial Statements
<PAGE> 9
CAMPBELL SOUP COMPANY CONSOLIDATED
PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS
(UNAUDITED)
(MILLIONS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
YEAR ENDED JULY 30, 1995
------------------------------------------------------------------------
HISTORICAL PRO FORMA
AS REPORTED LESS RESTATED PRO FORMA PRO FORMA
DISCONTINUED ADJUSTMENTS
OPERATIONS (A)
<S> <C> <C> <C> <C> <C>
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
==================================================================================================================================
</TABLE>
See Notes to Pro Forma Consolidated Financial Statements
<PAGE> 10
CAMPBELL SOUP COMPANY CONSOLIDATED
PRO FORMA CONSOLIDATED BALANCE SHEET
FEBRUARY 1, 1998
(UNAUDITED)
(MILLIONS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
HISTORICAL PRO FORMA
AS REPORTED LESS RESTATED PRO FORMA PRO FORMA
DISCONTINUED ADJUSTMENTS
OPERATIONS (A)
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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
=========================================================================================================================
</TABLE>
See Notes to Pro Forma Consolidated Financial Statements
<PAGE> 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.
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