management and/or as a component of the board of director’s measurement of our performance for incentive compensation purposes. Management and the board of directors believe that these measures provide useful information to investors. These non-GAAP measures should be viewed in addition to, and not in lieu of, the comparable GAAP measure. This report includes measures of financial performance that are not defined by generally accepted accounting principles (GAAP). For each of these non-GAAP financial measures, we are providing below a reconciliation of the differences between the non-GAAP measure and the most directly comparable GAAP measure. These non-GAAP measures are used in reporting to our executive TOTAL SEGMENT OPERATING PROFIT Reconciliation Of Non-GAAP Measures In Millions 2010 2009 2008 2007 2006 Fiscal Year ........................................................................................................................................................ ............................................................................................................................................................................................................................................................................................................................................................................................ Net sales: U.S. Retail $10,323.5 $10,052.1 $ 9,072.0 $ 8,491.3 $ 8,136.3 International 2,702.5 2,591.4 2,558.8 2,123.4 1,837.0 Bakeries and Foodservice 1,770.5 2,047.8 2,021.3 1,826.8 1,738.0 ............................................................................................................................................................................................................................................................................................................................................................................................ Total $14,796.5 $14,691.3 $13,652.1 $12,441.5 $11,711.3 ............................................................................................................................................................................................................................................................................................................................................................................................ Operating profit: U.S. Retail $ 2,392.0 $ 2,208.5 $ 1,971.2 $ 1,896.6 $ 1,801.4 International (a) 219.2 263.5 270.3 216.8 195.1 Bakeries and Foodservice 250.1 171.0 165.4 147.8 116.3 ............................................................................................................................................................................................................................................................................................................................................................................................ Total segment operating profit 2,861.3 2,643.0 2,406.9 2,261.2 2,112.8 Memo: Segment operating profit as a % of net sales 19.3% 18.0% 17.6% 18.2% 18.0% Unallocated corporate items 223.8 361.3 156.7 163.0 122.8 Divestitures (gain), net — (84.9) — — — Restructuring, impairment, and other exit costs 31.4 41.6 21.0 39.3 29.8 ............................................................................................................................................................................................................................................................................................................................................................................................ Operating profit $ 2,606.1 $ 2,325.0 $ 2,229.2 $ 2,058.9 $ 1,960.2 (a) In fiscal 2010, we adopted new accounting guidance on noncontrolling interests in financial statements. Prior-year figures in this line item have been adjusted to reflect the current year presentation. ADJUSTED DILUTED EPS, EXCLUDING CERTAIN ITEMS AFFECTING COMPARABILITY Per Share Data 2010 2009 2008 2010 2009 Fiscal Year ............................................................. EPS Growth ....................................... ............................................................................................................................................................................................................................................................................................................................................................................................ Diluted earnings per share, as reported $2.24 $ 1.90 $ 1.85 $ 0.34 $ 0.05 Mark-to-market effects (a) 0.01 0.11 (0.05) (0.10) 0.16 Divestitures gain, net (b) — (0.06) — 0.06 (0.06) Gain from insurance settlement (c) — (0.04) — 0.04 (0.04) Uncertain tax item (d) — 0.08 (0.04) (0.08) 0.12 Tax charge - health care reform (e) 0.05 — — 0.05 — ............................................................................................................................................................................................................................................................................................................................................................................................ Adjusted diluted earnings per share, excluding certain items affecting comparability $2.30 $ 1.99 $ 1.76 $ 0.31 $ 0.23 (a) Net (gain) loss from mark-to-market valuation of certain commodity positions and grain inventories. (b) Net gain on divestitures of certain product lines. (c) Gain on settlement with insurance carrier covering the loss of a manufacturing facility in Argentina. (d) Effects of Federal Court decisions on an uncertain tax matter. (e) Enactment date charges related to the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010, affecting deferred taxes associated with Medicare Part D subsidies. 87 Annual Report 2010