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My Bachelor's thesis was dedicated to a strategic analysis of the consumer packaged foods and beverages company - The WhiteWave Foods. This presentation visualizes some of the key points covered , including PLEESTIC analysis, Porter’s Five Forces, SWOT Analysis, Ansoff’s Matrix and more.
Please, contact me if you want to see an actual work or if you have any questions.
Thesis Defense Presentation - The WhiteWave Foods CompanyValeria Borovova
My Bachelor's thesis was dedicated to a strategic analysis of the consumer packaged foods and beverages company - The WhiteWave Foods. This presentation visualizes some of the key points covered , including PLEESTIC analysis, Porter’s Five Forces, SWOT Analysis, Ansoff’s Matrix and more.
Please, contact me if you want to see an actual work or if you have any questions.
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[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
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3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
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4. Forward-looking statements
This presentation contains “forward-looking statements” that are made in reliance on the safe harbor provision of the Private Securities
Litigation Reform Act of 1995, including statements relating to (1) financial forecasts for Q1 and full year 2014, including projected net sales,
operating income and earnings per share, and financial information under the heading “2014 outlook considerations,” (2) our branding
initiatives and planned brand expansions, (3) our innovation and research and development plans, and (4) our growth plans and anticipated
capital expenditures, and other statements that begin with words such as “believe,” “expect” or “anticipate.” These statements involve risks
and uncertainties that may cause results to differ materially from those set forth in this presentation. We have a limited history as a stand-
alone company, which makes our future financial performance difficult to predict. Financial projections are based on a number of
assumptions, and actual results could be materially different than projected if those assumptions are erroneous. Sales, operating income, net
income, financial performance and earnings per share can vary based on a variety of economic, governmental and competitive factors,
including those more fully described in our 2012 Form 10-K filed with the SEC on February 19, 2013, as updated in our Form 8-K filed with the
SEC on June 14, 2013. Our ability to profit from our branding initiatives depends on a number of factors including consumer acceptance of our
products. Our growth plans depend, in part, on our ability to innovate successfully and on a cost-effective basis. Our financial outlook for the
first quarter and full 2014 may be impacted by our ability to effectively operate and grow our recently acquired Earthbound Farm business,
the amount of our future additional investments in our joint venture in China and timeline for the joint venture to commence operations, and
out ability to continue to execute our strategic growth plans. All forward-looking statements in this presentation speak only as of the date of
this presentation. We expressly disclaim any obligation or undertaking to public update or revise any such statement to reflect any change in
our expectations or the events, conditions or circumstances on which any such statement is based.
Certain non-GAAP historical and pro forma financial measures contained in this presentation, including net sales, diluted earnings per share,
operating income and net income, are from continuing operations and have been adjusted to eliminate the net expense or net gain related to
certain items identified in our press release. A full reconciliation of these measures calculated according to GAAP, on a pro forma basis and on
a pro forma adjusted basis is contained in our press release issued today and in a separate reconciliation document posted on our website at
www.whitewave.com/investors.
CAGNY2014 4
6. Our company
CAGNY2014 6
2013 Total net sales: $2,542MM
North America
2013 Net sales: $2,124MM*
Europe
2013 Net sales: $418MM
Plant-based foods
& beverages
Brand position: #1
1. Represents International Delight only
*Excludes results of Earthbound Farm acquired on January 2, 2014
Premium dairy
Brand position: #1
Organic greens
& produce
Brand position: #1
Coffee creamers
& beverages
Brand position: #21
Plant-based foods
& beverages
Brand position: #1
7. High-growth food & beverage company
CAGNY2014 7
$2,044
$2,306
$2,542
2011 2012 2013
Net sales*
($MM)
*Net sales is presented on a pro forma adjusted basis for 2011 and 2012
** Operating income is presented on a pro forma adjusted basis for 2011 and 2012 and on an adjusted basis for 2013
See appendix for reconciliations of non-GAAP financial measures to GAAP financial measures
12% CAGR $142
$173
$209
2011 2012 2013
Operating income**
($MM / % Margin)
22% CAGR
6.9%
7.5%
8.2%
8. Strong track record of growing through innovation & investments
CAGNY2014 8
1997 2013
1997 2004 2008 2009 2012 2013
2002 2007 2009 2010 2011 2013
9. Large & growing categories aligned with consumer trends
CAGNY2014 9
$32BN
US organic food &
beverage sales
$1.3BN
US organic
milk 2013
2-yr CAGR: 6%
$1.2BN
US organic
packaged
salad 2013
2-yr CAGR: 17%
$11BN
US coffee &
coffee creamers
$4.2BN
US coffee creamers
& coffee beverages
2013
2-yr CAGR: 8%
$51BN
US dairy &
dairy alternatives
$2.4BN
US & EU
plant-based foods &
beverages 2013
2-yr US CAGR: 16%
Note: CAGRs from 2011-2013; Category size for US organic is for 2012; category sizes for US dairy & dairy alternatives and US coffee & coffee creamers are for 2013
Source: Category size for US organic from Organic Trade Association, US Coffee & Coffee Creamers from Nielsen xAOC; US Dairy & Dairy Alternatives from xAOC;
Narrow category definitions and CAGRs from Nielsen xAOC
2-yr EU CAGR: 7%
10. Significant upside potential in household penetration
CAGNY2014 10
Year-end 2013 US household penetration
US Organic MilkOrganic milk Organic packaged salad Plant-based beverages
Refrigerated flavored
coffee creamers
13% 22% 26% 36%
Source: Household penetration IRI and Nielsen Panel Data, coffee creamers includes half & half, dairy and non-dairy creamers
11. Attractive growth opportunities for the future
CAGNY2014 11
Household
penetration
growth
Broader
household
usage
Innovative,
new products
Expanded
distribution
in core markets
International
expansion
Strategic
investments
12. Recent strategic actions: acquisition of Earthbound Farm
Branded platform in on-trend, high-growth
category
Now have two most popular gateways to enter
organic category: produce & dairy
Strengthens WhiteWave’s scale and brand
presence
Closed on January 2, 2014; ~$0.07 EPS accretion
expected in 2014
Pro forma leverage ~3.2x; maintain flexibility for
future strategic opportunities
Industry veteran Kevin Yost to lead business
CAGNY2014 12
13. Recent strategic actions: Mengniu joint venture
Joint venture with Mengniu Dairy Company
Limited, leading Chinese dairy company
JV intends to manufacture, market and sell range of
nutritious products in China
Consistent with strategy to expand into new
geographies
Access to world’s largest consumer group, shifting
toward high-quality, nutritious diet
Excellent partner – strong sales and distribution
expertise
Production facility under construction – expect to
manufacture products by end of 2014
CAGNY2014 13
15. Trusted brands driving growth
CAGNY2014 15
Plant-based foods and beverages are
better for people and the planet
Helping moms nourish
their families
Bringing the benefits of
organic food to all
Everyone deserves a
great cup of coffee
16. Top 25 food & beverage companies 1-yr Growth Rate 2-yr Growth Rate 4-yr Growth Rate
WhiteWave Foods +7.1% +10.2% +9.7%
Danone Group +7.1% +6.0% +5.3%
The Hershey Co. +5.9% +5.2% +5.6%
Tyson Food Inc. +4.9% +2.9% +1.0%
Mondelez Int’l Inc. +4.1% +3.0% +2.0%
Campbell Soup Co. +3.4% +2.5% +1.0%
Grupo Bimbo S.A. de C.V. +1.9% +0.5% +0.9%
CTL BR +1.2% +1.2% +3.3%
Mars Incorporated +0.5% +0.4% +1.1%
Mccormick Company, Inc. +0.4% +1.1% +2.1%
Nestle Holdings Inc. +0.2% +0.6% +0.9%
Hormel Foods Corporation -0.0% +1.2% +1.3%
Pepsico Inc. -0.2% -0.1% +0.0%
Kellogg Company -0.8% +0.1% +0.6%
Kraft Foods, Inc. -0.8% +0.2% +0.8%
General Mills -0.9% -1.3% +0.0%
Coca Cola Company -1.3% -0.3% +0.9%
Pinnacle Foods Group LLC -1.5% -1.7% -1.9%
J.M. Smucker Company -1.8% +1.6% +3.6%
ConAgra Inc. -2.5% -1.7% -0.5%
Dr. Pepper Snapple Group Inc. -2.6% -2.0% +0.0%
HJ Heinz Company -4.0% -3.4% -1.6%
Unilever Group -4.1% -2.8% -1.1%
Dean Foods Inc. -4.3% -2.5% +0.7%
Del Monte Foods Company -4.3% -2.1% -1.0%
One of fastest growing food and beverage companies in America
CAGNY2014 16
#1 growth rate
for the last
1 year
2 years
4 years
Source: Nielsen 52wk period ending 12/21/13. Dollar sales for all vendors in Dairy/Deli/Frozen/Dry Grocery.
36. Expanding portfolio: “America Runs on Dunkin’ SM”
CAGNY2014 36
Over 95% brand awareness
Over 7,000 retail stores
Over 1.5 billion cups of coffee sold
annually
Sizeable player in retail bagged coffee
Over $1 billion unflavored creamer category
Strong brand partnership
42. Earthbound Farm overview
Founded 1984; pioneer in
development of organic produce
Scale business, over $500 million in
2013 net sales
Competitive advantages in
procurement, processing and
innovation
Highly experienced management team
Industry-leading brand, significant
loyalty
On-trend, high-growth categories
CAGNY2014 42
Leading organic produce brand in North America and largest non-dairy organic brand in US
Salad
Fresh vegetables Fresh fruits Frozen & dried
43. Strong share in high-growth, increasingly organic category
CAGNY2014 43
$386
$422
$489
$547
$655
$803
2008 2009 2010 2011 2012 2013
Organic packaged salad retail sales
($MM, grocery)
13%
14%
16%
17%
20%
23%
2008 2009 2010 2011 2012 2013
US organic packaged salad as a
percent of total salad category
(%, grocery)
Earthbound holds a 45% share* of the organic category and a 55% share of the branded organic segment
*45% share includes both Earthbound branded products and private label products produced by Earthbound
Source: Nielsen US Food – 52 weeks ending early January 2009-2014
16% CAGR
44. Brand strength provides growth opportunities
Significant potential for brand growth
Growth opportunities through
category segmentation
Recent launch of frozen line provides
additional growth opportunities
Potential for brand extensions
CAGNY2014 44
46. Financial priorities
CAGNY2014 46
Drive continued top- and bottom-line growth
Invest capital to support volume growth and margin expansion
Maintain financial flexibility for strategic initiatives
Drive shareholder value
47. Strong top-line growth continues
Category growth continues behind
favorable consumer trends
Strong organic top-line growth
– Driven by volume
Double-digit growth in both North
America and Europe segments
Growth across all brand platforms
Growth in both retail & away-from-
home channels
CAGNY2014 47
$2,306
$2,542
2012 2013
Net sales*
($MM)
10% Growth
*Net sales is presented on a pro forma adjusted basis for 2012
See appendix for reconciliations of non-GAAP financial measures to GAAP financial measures
48. Strong growth in profitability
Strong operating income growth in
both North America and Europe
Significant operating cost leverage
+70 basis points of margin
expansion
Supporting category-leading
marketing investments
CAGNY2014 48
*Operating income is presented on a pro forma adjusted basis for 2012 and on an adjusted basis for 2013
See appendix for reconciliations of non-GAAP financial measures to GAAP financial measures
$173
$209
2012 2013
Operating income*
($MM/%Margin)
7.5%
21% Growth
8.2%
49. Delivering strong earnings growth
Strong earnings growth in 2013
EPS growth rate over 2x topline
growth rate
Creating value for shareholders
CAGNY2014 49
*Diluted earnings per share is presented on a pro forma adjusted basis for 2012 and on an adjusted basis for 2013
See appendix for reconciliations of non-GAAP financial measures to GAAP financial measures
$0.60
$0.74
2012 2013
Diluted earnings
per share*
23% Growth
50. Investing for growth
CAGNY2014 50
2013
3 South central filling lines
2 East coast filling lines
1 West coast filling line
2014
Europe filling line
East coast filling line
East coast warehouse expansion
South central warehouse expansion
New North America manufacturing facility
Europe plant expansion
West coast warehouse consolidation
2 South central filling lines
6 filling lines
≈1 plant
7 filling lines
under development
2015
51. Strong balance sheet to support future growth
CAGNY2014 51
1Pro forma for additional indebtedness incurred in conjunction with the acquisition of Earthbound Farm on January 2, 2014
2As defined by credit agreement
Actual Pro forma1
Cash $101 $101
$850MM revolving credit facility 178 293
Term loans 485 985
Total net debt $562 $1,177
Leverage ratio2 <2.0x ~3.2x
Capital structure as of 12/31/2013
($MM)
52. 2014 outlook considerations
CAGNY2014 52
Top line
Volume growth main driver across platforms
Modest pricing benefit due to actions taken to offset inflation
Operating items
Continue marketing investments behind product launches and brand building
Remain focused on improving supply chain costs & operating margin expansion
Corporate items
Corporate costs estimated to be around $65 million
– Annualized standalone functions / Earthbound corporate cost shifts / China JV support
– Q1 highest quarter with remaining quarters relatively balanced
Capital investments Capital expenditures estimated to be $230 to $260 million
– N. America manufacturing facility / Europe capacity expansion / Earthbound requirements
Other items
Interest expense forecasted to be $33 to $37 million
Tax rate expected to be around 35% with potential quarterly variability
Operating investments in China joint venture
53. Continued growth in 2014
CAGNY2014 53
*As compared to 2013 on an adjusted basis
See appendix for reconciliations of non-GAAP financial measures to GAAP financial measures
7% - 8% organic top-line growth forecasted
Expect continued strong earnings growth in 2014
2014 Forecast*
Q1 Full Year
Net sales growth + High twenties % + High twenties %
Adjusted operating income growth
+ High teens to
low twenties %
+ Mid thirties %
Adjusted diluted EPS $0.17 - $0.19 $0.85 - $0.89
Adjusted diluted EPS – excluding JV $0.18 - $0.20 $0.90 - $0.94
Diluted shares outstanding ~177MM ~178MM
55. A compelling opportunity
Leading portfolio of large scale brands
Highly attractive, fast-growing categories
aligned with consumer trends
Leading innovator and pioneer
Significant growth opportunities for the
future
Experienced management
CAGNY2014 55
CHANGING
THE WAY THE
WORLD EATS
FOR THE
BETTER
58. Reconciliation of GAAP to non-GAAP information
CAGNY2014 58
GAAP
FY 2011
Pro forma
adjustments Pro forma
Additional
adjustments
Pro Forma
Adjusted
FY 2011
GAAP
FY 2012
Pro forma
adjustments Pro forma
Additional
adjustments
Pro Forma
Adjusted
FY 2012
GAAP
FY 2013 Adjustments
Adjusted
FY 2013
Total net sales 2,025,751$ 26,837$ (a) 2,052,588$ (8,781)$ (f) 2,043,807$ 2,289,438$ 19,738$ (a) 2,309,176$ (3,643)$ (f) 2,305,533$ 2,542,063$ -$ 2,542,063$
Cost of sales 1,341,310 9,898 (a) 1,351,208 (21,778) (f) 1,329,430 1,485,494 8,917 (a) 1,494,411 (16,545) (f) 1,477,866 1,634,646 - 1,634,646
Gross profit 684,441 16,939 701,380 12,997 714,377 803,944 10,821 814,765 12,902 827,667 907,417 - 907,417
Related party license income 42,680 (42,680) (b) - - - 36,034 (36,034) (b) - - - - - -
Operating expenses:
Selling and distribution 414,724 - 414,724 (1,946) (f) 412,778 492,130 - 492,130 (1,646) (f) 490,484 528,233 - 528,233
General and administrative 136,703 9,825 (c) 146,528 13,462 (g) 159,990 167,595 (9,313) (c) 158,282 5,837 (g) 164,119 197,526 (27,402) (g) 170,124
Asset disposal and exit costs - - - - - - - - - - 26,226 (26,226) (j) -
Total operating expenses 551,427 9,825 561,252 11,516 572,768 659,725 (9,313) 650,412 4,191 654,603 751,985 (53,628) 698,357
Operating income 175,694 (35,566) 140,128 1,481 141,609 180,253 (15,900) 164,353 8,711 173,064 155,432 53,628 209,060
Other expense (income):
Interest expense 9,149 13,904 (d) 23,053 534 (h) 23,587 9,924 13,663 (d) 23,587 - 23,587 18,027 - 18,027
Other expense (income), net 122 - 122 - 122 957 - 957 (1,151) (i) (194) (3,829) 3,410 (i) (419)
Total other expense (income) 9,271 13,904 23,175 534 23,709 10,881 13,663 24,544 (1,151) 23,393 14,198 3,410 17,608
Income from continuing operations before
income taxes 166,423 (49,470) 116,953 947 117,900 169,372 (29,563) 139,809 9,862 149,671 141,234 50,218 191,452
Income tax expense 52,089 (17,315) (e) 34,774 3,543 (e) 38,317 56,858 (10,347) (e) 46,511 (718) (e) 45,793 44,193 18,693 (e) 62,886
Income from continuing operations 114,334$ (32,155)$ 82,179$ (2,596)$ 79,583$ 112,514$ (19,216)$ 93,298$ 10,580$ 103,878$ 97,041$ 31,525$ 128,566$
Earnings per Share, Basic and Diluted:
Basic 0.76$ 0.46$ (k) 0.73$ 0.60$ (k) 0.56$ 0.74$ (k)
Diluted 0.76$ 0.46$ (k) 0.73$ 0.60$ (k) 0.56$ 0.74$ (k)
Weighted Average Shares Outstanding, Basic and Diluted:
Basic 150,000,000 173,000,000 153,770,492 173,000,000 173,120,689 173,120,689
Diluted 150,000,000 173,000,109 153,770,497 173,000,109 174,581,468 174,581,468
Income statement amounts by segment:
Total net sales
North America 1,657,192$ 26,837$ (a) 1,684,029$ (8,781)$ (f) 1,675,248$ 1,921,444$ 19,738$ (a) 1,941,182$ (3,643)$ (f) 1,937,539$ 2,123,997$ -$ 2,123,997$
Europe 368,559 - 368,559 - 368,559 367,994 - 367,994 - 367,994 418,066 - 418,066
Total 2,025,751$ 26,837$ 2,052,588$ (8,781)$ 2,043,807$ 2,289,438$ 19,738$ 2,309,176$ (3,643)$ 2,305,533$ 2,542,063$ -$ 2,542,063$
Operating income
North America 137,807$ 16,939$ (a) 154,746$ 14,943$ (f) 169,689$ 178,960$ 10,821$ (a) 189,781$ 14,548$ (f) 204,329$ 215,155$ 14,426$ (j) 229,581$
Europe 27,873 - 27,873 (953) (g) 26,920 23,735 - 23,735 - 23,735 18,879 11,800 (j) 30,679
Total consolidated segment operating income 165,680 16,939 182,619 13,990 196,609 202,695 10,821 213,516 14,548 228,064 234,034 26,226 260,260
Related party license income 42,680 (42,680) (b) - - - 36,034 (36,034) (b) - - - - - -
Corporate and other (32,666) (9,825) (c) (42,491) (12,509) (g) (55,000) (58,476) 9,313 (c) (49,163) (5,837) (g) (55,000) (78,602) 27,402 (g) (51,200)
Total operating income 175,694$ (35,566)$ 140,128$ 1,481$ 141,609$ 180,253$ (15,900)$ 164,353$ 8,711$ 173,064$ 155,432$ 53,628$ 209,060$
(In thousands, except share and per share data)(In thousands, except share and per share data) (In thousands, except share and per share data)
59. Reconciliation of GAAP to non-GAAP information
CAGNY2014 59
The adjusted results differ from the Company’s results under GAAP due to the following:
a) The adjustment reflects:
i. An agreement with two wholly-owned Dean Foods subsidiaries, Suiza Dairy Group,
LLC ("Suiza Dairy") and Dean Dairy Holdings, LLC ("Dean Dairy"), pursuant to which
those subsidiaries continue to sell and distribute certain WhiteWave products. This
agreement modifies our historical intercompany arrangements and reflects new
pricing. The net effect of the agreement is an estimated increase in total net sales
and an estimated increase in cost of sales for the following periods:
$26.8 million and $8.8 million for the year ended December 31, 2011.
$19.7 million and $7.0 million for the year ended December 31, 2012.
$nil million and $nil million for the year ended December 31, 2013.
ii. Manufacturing agreements with (1) Morningstar pursuant to which Morningstar
continues manufacturing various WhiteWave products on our behalf and (2) Suiza
Dairy and Dean Dairy pursuant to which they continue manufacturing WhiteWave
fresh organic milk products on our behalf. The agreements modify our historical
intercompany arrangements and reflect new pricing. The net effect of the
agreements is an estimated increase in cost of sales for the following periods:
$1.1 million for the year ended December 31, 2011.
$1.9 million for the year ended December 31, 2012.
$nil million for the year ended December 31, 2013.
b) The adjustment reflects the elimination of license income associated with our
intellectual property license agreement with Morningstar. In connection with our initial
public offering, this agreement was terminated and we transferred the intellectual
property subject to this license agreement to Morningstar. The effect of this agreement
is to eliminate the related party license income for all periods presented.
c) The adjustment reflects:
i. The recurring impact on stock compensation expense for grants to the Company’s
Named Executive Officers and other executives made in connection with our initial
public offering (the "IPO grants").
$9.8 million for the year ended December 31, 2011.
$8.2 million for the year ended December 31, 2012.
$nil million for the year ended December 31, 2013.
ii. Elimination of non-recurring transaction costs we incurred in connection with our
initial public offering of $17.5 million for the year ended December 31, 2012.
d) The adjustment reflects:
i. Elimination of the interest expense related to our historical indebtedness.
$15.7 million for the year ended December 31, 2011.
$10.5 million for the year ended December 31, 2012.
$nil million for the year ended December 31, 2013.
ii. Expected interest expense and the amortization of deferred financing costs on our
new borrowings under the revolving credit facility and term loan facilities.
$23.5 million for the year ended December 31, 2011.
$17.8 million for the year ended December 31, 2012.
$nil million for the year ended December 31, 2013.
60. Reconciliation of GAAP to non-GAAP information
CAGNY2014 60
iii. Elimination of interest income associated with our loan agreement with
Morningstar related to the license income under the intellectual property license
agreement.
$6.1 million for the year ended December 31, 2011.
$6.4 million for the year ended December 31, 2012.
$nil million for the year ended December 31, 2013.
e) The adjustment reflects:
i. Applying the 35% U.S. federal statutory rate to the pro forma adjustments in the
2012 periods.
ii. The elimination of the tax effect of uncertain tax positions related to non-recurring
transaction costs and assets held for sale.
iii. The income tax expense required to adjust the U.S. GAAP effective rate to the
estimated effective rate on all adjustments in the pro forma adjustments, the
additional adjustments, and the adjustments columns for all periods.
f) The adjustment reflects:
i. A transitional sales agreement with Morningstar pursuant to which Morningstar will
transfer back to us responsibility for sales and associated costs of certain
WhiteWave products. The net effect of the agreement is an estimated increase in
total net sales for the following periods:
$22.3 million for the year ended December 31, 2011.
$21.6 million for the year ended December 31, 2012.
$nil million for the year ended December 31, 2013.
ii. A transitional sales agreement with Morningstar pursuant to which we will transfer
to Morningstar responsibility for the sales and associated costs of our aerosol
whipped topping and other non-core products. The net effect of the agreement is a
decrease in total net sales, a decrease in cost of sales, and a decrease in selling and
distribution expense for the following periods:
$31.1 million, $21.8 million, and $1.9 million for the year ended December 31,
2011.
$25.2 million, $16.5 million, and $1.6 million for the year ended December 31,
2012.
$nil million, $nil million, and $nil million for the year ended December 31, 2013.
g) The adjustment reflects:
i. Elimination of the historical corporate costs allocated to us by Dean Foods.
$32.7 million for the year ended December 31, 2011.
$33.7 million for the year ended December 31, 2012.
$nil million for the year ended December 31, 2013.
ii. Elimination of the non-cash impact on stock compensation expense for the IPO
grants.
$9.8 million for the year ended December 31, 2011.
$9.7 million for the year ended December 31, 2012.
$10.9 million for the year ended December 31, 2013.
iii. The inclusion of estimated stand-alone public company costs, including the costs of
corporate services currently provided by Dean Foods.
$55.1 million for the year ended December 31, 2011.
$50.4 million for the year ended December 31, 2012.
$nil million for the year ended December 31, 2013.
61. Reconciliation of GAAP to non-GAAP information
CAGNY2014 61
iv. Elimination of other non-recurring transition costs.
$nil million for the year ended December 31, 2011.
$1.2 million for the year ended December 31, 2012.
$6.8 million for the year ended December 31, 2013.
v. Elimination of non-recurring transaction costs related to the Dean Foods offering of
our shares of $1.4 million for the year ended December 31, 2013.
vi. Elimination of non-recurring transaction costs related to acquisitions and other
investments of $8.3 million for the year ended December 31, 2013.
vii. Impact of excluding the $0.9 million benefit recorded for the favorable settlement
of taxing authority examinations for the year ended December 31, 2011.
h) The adjustment reflects incremental expected interest expense on our new borrowings
under our senior secured credit facilities of $0.5 million for the year ended December
31, 2011.
i) The adjustment reflects elimination of the (income) expense related to the mark-to-
market adjustment on our interest rate swaps.
$nil million for the year ended December 31, 2011.
$1.2 million for the year ended December 31, 2012.
$(3.4) million for the year ended December 31, 2013.
j) The adjustment reflects elimination of asset disposal and exit costs.
i. Elimination of the loss on assets held for sale related to the Company’s intention to
sell the operations of its soy-based meat alternative business located in the
Netherlands of $11.8 million for the year ended December 31, 2013.
ii. Elimination of the non-cash write-down of the assets of the dairy farm located in
Idaho of $11.1 million for the year ended December 31, 2013.
iii. Elimination of restructuring costs in connection with the sale of the dairy farm
located in Idaho of $3.3 million for the year ended December 31. 2013.
k) For 2011 and 2012, the number of shares used to compute basic earnings per share is
173,000,000, which is comprised of 23,000,000 shares of Class A common stock (the
number of shares outstanding upon completion of our initial public offering) and
150,000,000 shares of Class B common stock. The number of shares used to compute
diluted earnings per share includes the dilutive impact of stock options and RSUs.
On May 23, 2013, Dean Foods distributed to its stockholders an aggregate of 47,686,000
shares of our Class A common stock and 67,914,000 shares of our Class B common stock
as a pro rata dividend on shares of Dean Foods common stock outstanding. For the year
ended December 31, 2013, the number of shares used to compute basic earnings per
share is 173,120,689, which is comprised of 91,506,411 shares of Class A common stock
and 81,614,278 shares of Class B common stock on a weighted average basis. The
number of shares used to compute diluted earnings per share includes the dilutive
impact of stock options and RSUs.