In 2016, we elected to change our method of accounting for the recognition of actuarial gains and losses for defined benefit pension and postretirement plans and the calculation of expected return on pension plan assets. Historically, actuarial gains and losses associated with benefit obligations were recognized in Accumulated other comprehensive loss in the Consolidated Balance Sheets and were amortized into earnings over the remaining service life of participants to the extent that the amounts were in excess of a corridor. Under the new policy, actuarial gains and losses will be recognized immediately in our Consolidated Statements of Earnings as of the measurement date, which is our fiscal year end, or more frequently if an interim remeasurement is required. In addition, we will no longer use a market-related value of plan assets, which is an average value, to determine the expected return on assets but rather will use the fair value of plan assets. We believe the new policies will provide greater transparency to ongoing operating results and better reflect the impact of current market conditions on the obligations and assets. The changes in policy were applied retrospectively to all periods presented. As of August 4, 2014, the cumulative effect of these changes on the opening balance sheet was a $715 decrease to Earnings retained in the business, a decrease of $2 to Inventories, a $714 reduction to Accumulated other comprehensive loss, and an increase of $1 to Other current assets. We recognized mark-to-market gains of $7 ($4 after tax, or $.01 per share) in the second quarter of 2016 and year-to-date mark-to-market losses of $121 ($76 after tax, or $.24 per share) in 2016 as certain U.S. plans were remeasured. The remeasurements were required due to a high level of lump sum payments to certain vested plan participants arising primarily out of a limited-time offer to accept a single lump sum in lieu of future annuity payments. No remeasurement was required in the prior year. The impacts of the changes in policy to the consolidated financial statements are summarized below: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended January 31, 2016 | | Three months ended February 1, 2015 | Consolidated Statements of Earnings | | Prior Accounting Principles | | Effect of Accounting Change | | As Reported | | Previously Reported | | Effect of Accounting Change | | Recast | Cost of products sold | | $ | 1,404 |
| | $ | (22 | ) | | $ | 1,382 |
| | $ | 1,506 |
| | $ | (15 | ) | | $ | 1,491 |
| Marketing and selling expenses | | 233 |
| | (10 | ) | | 223 |
| | 242 |
| | (3 | ) | | 239 |
| Administrative expenses | | 154 |
| | (8 | ) | | 146 |
| | 140 |
| | (5 | ) | | 135 |
| Research and development expenses | | 26 |
| | (3 | ) | | 23 |
| | 27 |
| | (2 | ) | | 25 |
| Earnings before interest and taxes | | 371 |
| | 43 |
| | 414 |
| | 312 |
| | 25 |
| | 337 |
| Earnings before taxes | | 344 |
| | 43 |
| | 387 |
| | 287 |
| | 25 |
| | 312 |
| Taxes on earnings | | 108 |
| | 14 |
| | 122 |
| | 80 |
| | 10 |
| | 90 |
| Net earnings | | 236 |
| | 29 |
| | 265 |
| | 207 |
| | 15 |
| | 222 |
| Net earnings attributable to Campbell Soup Company | | $ | 236 |
| | $ | 29 |
| | $ | 265 |
| | $ | 207 |
| | $ | 15 |
| | $ | 222 |
| Earnings per share — Basic | | $ | .76 |
| | $ | .09 |
| | $ | .85 |
| | $ | .66 |
| | $ | .05 |
| | $ | .71 |
| Earnings per share — Diluted | | $ | .76 |
| | $ | .09 |
| | $ | .85 |
| | $ | .66 |
| | $ | .05 |
| | $ | .71 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Six months ended January 31, 2016 | | Six months ended February 1, 2015 | Consolidated Statements of Earnings | | Prior Accounting Principles | | Effect of Accounting Change | | As Reported | | Previously Reported | | Effect of Accounting Change | | Recast | Cost of products sold | | $ | 2,816 |
| | $ | 14 |
| | $ | 2,830 |
| | $ | 2,978 |
| | $ | (27 | ) | | $ | 2,951 |
| Marketing and selling expenses | | 449 |
| | — |
| | 449 |
| | 489 |
| | (7 | ) | | 482 |
| Administrative expenses | | 303 |
| | (1 | ) | | 302 |
| | 275 |
| | (9 | ) | | 266 |
| Research and development expenses | | 55 |
| | — |
| | 55 |
| | 56 |
| | (3 | ) | | 53 |
| Earnings before interest and taxes | | 742 |
| | (13 | ) | | 729 |
| | 680 |
| | 46 |
| | 726 |
| Earnings before taxes | | 687 |
| | (13 | ) | | 674 |
| | 630 |
| | 46 |
| | 676 |
| Taxes on earnings | | 218 |
| | (3 | ) | | 215 |
| | 189 |
| | 17 |
| | 206 |
| Net earnings | | 469 |
| | (10 | ) | | 459 |
| | 441 |
| | 29 |
| | 470 |
| Net earnings attributable to Campbell Soup Company | | $ | 469 |
| | $ | (10 | ) | | $ | 459 |
| | $ | 441 |
| | $ | 29 |
| | $ | 470 |
| Earnings per share - Basic | | $ | 1.51 |
| | $ | (.03 | ) | | $ | 1.48 |
| | $ | 1.41 |
| | $ | .09 |
| | $ | 1.50 |
| Earnings per share - Diluted (1) | | $ | 1.50 |
| | $ | (.03 | ) | | $ | 1.47 |
| | $ | 1.40 |
| | $ | .09 |
| | $ | 1.50 |
|
________________________________________________________ (1) The sum of the individual per share amounts may not add due to rounding. | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended January 31, 2016 | | Three months ended February 1, 2015 | Consolidated Statements of Comprehensive Income | | Prior Accounting Principles | | Effect of Accounting Change | | As Reported | | Previously Reported | | Effect of Accounting Change | | Recast | Foreign currency translation: | | | | | | | | | | | | | Foreign currency translation adjustments | | $ | (17 | ) | | $ | — |
| | $ | (17 | ) | | $ | (167 | ) | | $ | 10 |
| | $ | (157 | ) | Pension and other postretirement benefits: | | | | | | | | | | | |
| Net actuarial gain (loss) arising during the period | | 23 |
| | (23 | ) | | — |
| | 13 |
| | (13 | ) | | — |
| Reclassification of net actuarial loss included in net earnings | | 32 |
| | (32 | ) | | — |
| | 24 |
| | (24 | ) | | — |
| Tax benefit / (expense) | | $ | (20 | ) | | $ | 20 |
| | $ | — |
| | $ | (12 | ) | | $ | 12 |
| | $ | — |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Six months ended January 31, 2016 | | Six months ended February 1, 2015 | Consolidated Statements of Comprehensive Income | | Prior Accounting Principles | | Effect of Accounting Change | | As Reported | | Previously Reported | | Effect of Accounting Change | | Recast | Foreign currency translation: | | | | | | | | | | | | | Foreign currency translation adjustments | | $ | (43 | ) | | $ | — |
| | $ | (43 | ) | | $ | (250 | ) | | $ | 12 |
| | $ | (238 | ) | Pension and other postretirement benefits: | | | | | | | | | | | | | Net actuarial gain (loss) arising during the period | | (113 | ) | | 113 |
| | — |
| | 17 |
| | (17 | ) | | — |
| Reclassification of net actuarial loss included in net earnings | | 109 |
| | (109 | ) | | — |
| | 48 |
| | (48 | ) | | — |
| Tax benefit / (expense) | | $ | 2 |
| | $ | (2 | ) | | $ | — |
| | $ | (22 | ) | | $ | 22 |
| | $ | — |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | January 31, 2016 | | August 2, 2015 | Consolidated Balance Sheets | | Prior Accounting Principles | | Effect of Accounting Change | | As Reported | | Previously Reported | | Effect of Accounting Change | | Recast | Inventories | | $ | 862 |
| | $ | (7 | ) | | $ | 855 |
| | $ | 993 |
| | $ | 2 |
| | $ | 995 |
| Other current assets | | 199 |
| | 2 |
| | 201 |
| | 199 |
| | (1 | ) | | 198 |
| Accrued income taxes | | 73 |
| | 2 |
| | 75 |
| | 29 |
| | — |
| | 29 |
| Earnings retained in the business | | 2,767 |
| | (750 | ) | | 2,017 |
| | 2,494 |
| | (740 | ) | | 1,754 |
| Accumulated other comprehensive (loss) income | | $ | (966 | ) | | $ | 743 |
| | $ | (223 | ) | | $ | (909 | ) | | $ | 741 |
| | $ | (168 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Six months ended January 31, 2016 | | Six months ended February 1, 2015 | Consolidated Statements of Cash Flows | | Prior Accounting Principles | | Effect of Accounting Change | | As Reported | | Previously Reported | | Effect of Accounting Change | | Recast | Cash flow from operating activities: | | | | | | | | | | | |
| Net earnings | | $ | 469 |
| | $ | (10 | ) | | $ | 459 |
| | $ | 441 |
| | $ | 29 |
| | $ | 470 |
| Pension and postretirement benefit expense / (income) | | — |
| | 109 |
| | 109 |
| | — |
| | (12 | ) | | (12 | ) | Deferred income taxes | | (9 | ) | | (5 | ) | | (14 | ) | | 1 |
| | 17 |
| | 18 |
| Other, net | | 109 |
| | (105 | ) | | 4 |
| | 46 |
| | (36 | ) | | 10 |
| Inventories | | 124 |
| | 9 |
| | 133 |
| | 71 |
| | 2 |
| | 73 |
| Accounts payable and accrued liabilities | | (32 | ) | | 2 |
| | (30 | ) | | (16 | ) | | — |
| | (16 | ) | Net cash provided by operating activities | | $ | 727 |
| | $ | — |
| | $ | 727 |
| | $ | 584 |
| | $ | — |
| | $ | 584 |
|
|