Sara Lee restates results for fiscal '07 and '08
October 30, 2008
by Eric Schroeder
DOWNERS GROVE, ILL. — Sara Lee Corp. on Wednesday filed a Form 8-K with the Securities and Exchange Commission to restate annual business results for fiscal 2007 and fiscal 2008 as well as quarterly results for fiscal 2008 to reflect two accounting changes. The move, which was done to reflect the elimination of mark-to-market accounting in its business segments and changes to its organizational structure, moved money between business segments but did not change the company’s overall results for either year.
The changes to its North American organizational structure 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 of the changes, 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. "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.