HomeMy WebLinkAboutConAgra Foods - Financial Assistance Application - 4.24.2006 y-�4/
G R E A T E R
CES r
EY
A L L I A N C E
April 21, 2006
Ms.Amy Johnson
Iowa Department of Economic Development
200 East Grand Avenue FEDERAL EXPRESS
Des Moines, L4,50309
Re: ConAgra Foods Application for Financial Assistance
Dear Amy:
ConAgra Foods is requesting financial assistance from the State of Iowa for a proposed$46
million expansion project in Waterloo,Iowa that would create 50 new full-time positions. These
positions will be highly-specialized and require extensive training and technical expertise in food
processing.
In 1997, ConAgra constructed a 200,000 sf facility in Waterloo and created 75 new positions.
This proposed expansion will help to solidify ConAgra's operations in Waterloo and better
position the company for future expansion with current or new products. ConAgra is a
responsible corporate citizen and operates in accordance with the highest standards of business
ethics. We ask that the Iowa Department of Economic Development earnestly consider the
genuine merits of this request for financial assistance for this$46 million investment creating 50
highly specialized,well-paying positions.
We recognize that the Mayor's signature as sponsor of the application and the City resolution are
needed to complete this application. Both will be sent to your attention immediately following
the May 8 Council meeting.
If you have any questions or need additional information,do not hesitate to contact me.
Respectfully,
a L. a
Director of Business ervices
Enclosures: Financial Assistance Application
(One(1)original and one(1)copy
10 West Fourth Street, Suite 310, Waterloo, IA 50701 • Ph: 319-232-1156 • Fax: 319-232-1829 • www.cedarvalleyalliance.com
The Greater Cedar Valley Alliance is an economic development organization focused on economic vitality and job creation in Waterloo,
Cedar Falls, and the surrounding communities in Northeast Iowa.
IOWA
Mary Lawyer, Director
lift` I Changing' Iowa Department of Economic Development
Application for Financial Assistance
Section A — Applicant & Project Information
Business Development Division
Iowa Department of Economic Development
200 East Grand Avenue
Des Moines, Iowa 50309
www.iowalifechaMinq.com
3/17/2006
Instructions
1. All applicants shall complete Section A of the Application for Financial Assistance and attach only those section(s)for the
program(s)to which the applicant is applying.
Pro ram Download and Complete
Community Economic Bettermeant Account(CEBA) Section B
Enterprise Zone Program (EZ) Section C
High Quality Job Creation Program (HQJC) Section D
Entrepreneurial Ventures Assistance Program(EVA) Section E
Value Added Agricultural Products&Processes
Financial Assistance Program(VAAPFAP) Section F
Economic Development Set-Aside Program(EDSA) Section G
2. Please visit the IDED Web site, http://www.iowalifechanging corn/applications/bus dev/index.html or contact IDED at(515)
242-4819 to see if this version of the application Is still current.
3. Before filling out this application form, please read all applicable sections of the 2005 Iowa Code and Iowa Administrative
Code(rules). hftp://www4.leais.state.ia.us/IAChtml/261.htm
4. Only typed or computer-generated applications will be accepted and reviewed. Any material change to the format,
questions, or wording of questions presented in this application, will render the application invalid and it will not be
accepted.
5. Complete the applicable sections of the application fully; if questions are left unanswered or required attachments are not
submitted, an explanation must be included.
6. Use clear and concise language. Attachments should only be used when requested or as supporting documentation.
7. Any inaccurate information of a significant nature may disqualify the application from consideration.
8. Upon completion of the application, please submit the following to the Business Finance Team at IDED:
• The original,signed application form and all required attachments
• One copy of the application form and all required attachments from which additional copies can easily be made.
If electronic copies of the application and required attachments are available, please e-mail these documents to
businessfinancei,5iowalifechangino com in addition to submitting the original plus one copy.
Business Finance Team
Iowa Department of Economic Development
200 East Grand Avenue
Des Moines IA 50309
Application Due Dates
IDED Board Meeting Application Due Date
A ril 20, 2006 March 27, 2006
Ma 18, 2006 Aril 24, 2006
June 15, 2006 May 22, 2006
Jul 20, 2006 June 26, 2006
August 17, 2006 July 24, 2006
September 21, 2006 Au ust 28, 2006
October 19, 2006 Se tember 25, 2006
November 16, 2006 October 23, 2006
December 21, 2006 November 27, 2006
*EVA applications will be acted upon every other month starting in March.
Section A—Applicant&Project Information
2
Public Records Policies
Information Submitted to IDED. The Iowa Department of Economic Development(IDED)is subject to the Open Records law
(Iowa Code, Chapter 22). Treatment of information submitted to IDED in this application is governed by the provisions of the
fidential
Open Records law. All public records are available for public inspection. Some public records are considered conand
will not be disclosed to the public unless ordered by a court, the lawful custodian of the record, or by another person duly
authorized to release the information.
Confidential Records. IDED automatically treats the following records as confidential and they are withheld from public
disclosure:
• Tax Records
• Quarterly Iowa Employer's Contribution and Payroll Report prepared for the Iowa Workforce Development Department
• Payroll Registers
• Business Financial Statements and Projections
• Personal Financial Statements
Other information supplied to IDED as part of this application may be treated as confidential under Iowa Code section 22.7.
Following are the classifications of records which are recognized as confidential under Iowa law and which are most frequently
applicable to business information submitted to IDED:
• Trade secrets[Iowa Code§22.7(3)]
• Reports to governmental agencies which, if released, would give advantage to competitors and serve no public purpose.
[Iowa Code§22.7(6)]
• Information on an industrial prospect with which the IDED is currently negotiating. [Iowa Code§22.7(8)]
• Communications not required by law, rule or regulation made to IDED by persons outside the government to the extent that
IDED could reasonably believe that those persons would be discouraged from making them to the Department if they were
made available for general public examination. [Iowa Code§22.7(18)]
Information supplied to IDED as part of this application that is material to the application and/or the state program to
which the applicant is applying including, but not limited to the number and type of jobs to be created,wages for those
jobs, employee benefit information,and project budget, are considered open records and will not be treated as
confidential.
Additional Information Available. Copies of Iowa's Open Record law and IDED's administrative rules relating to public
records are available from the Department upon request or at
http://www.iowalifechanging com/downloads/chap169openrecords doc.
Section A—Applicant&Project Information
3
Applicant Information
1. Name of Business: ConAgra Foods Packaged Foods Company, Inc.
Address: One ConAgra Drive
City, State&Zip Code: Omaha, NE 68102
Contact Person: Ken Groetsema Title: State Tax Director
Phone: (402)595-4303 Fax: (402)595-4711 Email: ken.groetsema@conagrafoods.com
2. SIC or NAICS Code: 311900
3. Federal ID Number: 20-1248880
Does the Business file a consolidated tax return under a different tax ID number? ® Yes ❑ No
If yes, please also provide that tax ID number: 47-0248710
4. Is the contact person listed above authorized to obligate the Business? ❑Yes ®No
If no, please provide the name and title of a company officer authorized to obligate the Business:Randy Harvey
5. If the application was prepared by someone other than the contact person listed above, please complete the following:
Name: Rudy Watkins Title: Member
Organization: Harvest Group, LLC
Address: 6075 Poplar Avenue, Suite 123
City, State, &ZIP Code: Memphis, TN 38119
Phone: (901)818-5581 Fax: (901)818-5583 Email: rudy@harvestgroupllc.com
Sponsor Information
Please review the following table to determine who needs to sponsor this application. Depending on the programs being
applied for, more than one sponsor may be necessary.
Program Acceptable Sponsor
CEBA City or County or Community College in which the Project Site is Located
EZ Local Enterprise Zone Commission
HQJC -city or County in which the Project Site is Located
EVA City or County in which the Project Site is Located; Local Development Entity;John Pappajohn Entrepreneurial
Center;a Small Business Development Center; Business Accelerator;or similar entit
VAAPFAP City or County in which the Project Site is Located or Local Development Entity
EDSA City or County in which the Project Site is Located
1. Sponsor Organization: Greater Cedar Valley Alliance
Official Contact(e.g. Mayor, Chairperson, etc.): Linda Laylin Title: Director of Business Services
Address: 10 West Fourth Street, Suite 310
City, State&ZIP Code: Waterloo, IA 50701
Phone: (319)232-1156 Fax: (319)232-1829 E-mail: laylin@cedarvalleyalliance.com
2. If IDED needs to contact the sponsor organization with questions,should we contact the person listed above?
® Yes ❑ No, please contact the following person:
Name: Title:
Address:
City, State&ZIP Code:
Phone: Fax: E-mail:
If necessary, please list information on additional sponsors in an attachment.
Section A—Applicant&Project Information 4
Certification & Release of Information
I hereby give permission to the Iowa Department of Economic Development(IDED)to research the Business' history, make
credit checks,contact the Business'financial institutions, insurance carriers, and perform other related activities necessary for
reasonable evaluation of this application. I also hereby authorize the Iowa Department of Revenue to provide to IDED state tax
information pertinent to the Business'state income tax, sales and use tax, and state tax credits claimed.
I understand that all information submitted to IDED related to this application is subject to Iowa's Open Record Law(Iowa Code,
Chapter 22).
1 understand this application is subject to final approval by IDED and the Project may not be initiated until final approval is
secured. (High Quality Job Creation Program applications may be submitted up to 12 months following the completion of the
project.)
I understand that IDED reserves the right to negotiate the financial assistance. Furthermore, I am aware that financial
assistance is not available until an agreement is executed within a reasonable time period following approval.
I hereby certify that all representations, warranties,or statements made or furnished to IDED in connection with this application
are true and correct in all material respect. I understand that it is a criminal violation under Iowa law to engage in deception and
knowingly make,or cause to be made, directly or indirectly, a false statement in writing for the purpose of procuring economic
development assistance from a state agency or subdivision.
For the us' ss:
ssss: /
,,,
A�l
Signature Date
Randall D. Harvey, Vice President, Taxes
Name and Title(typed or printed)
For the Sponsor(s):
Signature Date
Name and Title(typed or printed)
Please use the following if more than one sponsor is required. (For example, use this if a signature from the local Enterprise
Zone Commission is required in addition to the signature from the Mayor of the sponsoring city.)
Signature Date
Name and Title(typed or printed)
IDED will not provide assistance in situations where it is determined that any representation, warranty, or statement made in
connection with this application is incorrect, false, misleading or erroneous in any material respect. If assistance has already
been provided prior to discovery of the incorrect, false, or misleading representation, IDED may initiate legal action to recover
incentives and assistance awarded to the Business.
Section A—Applicant&Project Information 5
Project Information
1. Provide a brief description and history of the Business. Include information about the Business'products or services
and its markets and/or customers.
ConAgra Foods is an international food manufacturing company. Originally founded as Nebraska Consolidated Mills in 1919,
the company has grown in size to 38,000 employees and annual sales exceeding$14 billion. ConAgra is now of North
America's largest packaged foods companies,serving consumer grocery food retailers,restaurants,and other food service
establishments. Primary competitors include Kraft and Nestle.
2. Business Structure:
❑ Cooperative ® Corporation ❑ Limited Liability Company
E] Partnership P Y El Not for Profit
p ❑ S-Corporation ❑ Sole Proprietorship
State of Incorporation:
3. Identify the Business'owners.
Does a woman,minority,or person with a disability own the Business? ❑ Yes ® No
If yes, is the business certified as a Targeted Small Business? ❑ Yes ® No
4. List the Business'Iowa Locations and the Current Number of Employees at each Location.
As of 41hQuarter 2005:Council Bluffs(763),Hamburg (147),Lake View(17),Mason City(242), Waterloo(76)
5. What is the Business'worldwide employment? (Please include employees of parent company,subsidiaries, and other
affiliated entities in this figure.)
ConAgra's worldwide employment is approximately 38,000.
6. Briefly describe the proposed project for which assistance is being sought.(Include project timeline with dates,facility
size,infrastructure improvements,proposed products/services,any new markets,etc.)
The project objective is to improve gross margin and capacity utilization of pudding platform assets.An out-of-state pudding
plant will be eliminated in favor of a lower lost facility with higher asset utilization.An expansion of the Waterloo, Iowa,facility is
being considered,as well as other facilities,as an alternative for replacing the production capacity lost through the elimination of
the high-cost,out-of-state plant.Anticipated facility size is may be between 115,000 to 183,000 square feet. Infrastructure
improvements requested will include extension of Midport Boulevard.Implementation is estimated to begin May 2006 and be
completed by October 2007.
7. Project Address(Street Address,City,and County): 2701 Midport Boulevard,Waterloo, IA 50703
8. Type of Business Project
❑ Startup ❑ Expansion of Iowa Company ❑ New Location in Iowa
® Relocation from another State
9. Please identify the management at the project location and histher/their experience.
Scott Budak—Plant Manager at Waterloo since November 2004
Todd Kaiser—Manager,Quality and Assurance
Duane Robertson—Plant Engineer
Tim Yost—Project Manager,CMS
Section A—Applicant&Project Information 6
10. Has any part of the project started? ❑Yes ® No
If yes, please explain.
Section A—Applicant&Project Information
7
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12. Employee Benefits: Please identify all employee benefits provided by and paid for(in full or in part) by the Business.
Employee Benefits' Total Annual Cost Portion of Total Plan Provisions
Provided by the (show on a per Annual Cost Paid by (Include deductibles,coinsurance%,office visit
Business employee basis) the Business* co payments, annual out-of-pocket maximums,
face amounts,etc.
Em to ee Famil Em to ee Famil
Medical/Health Please see Attachment 5
Insurance
Dental Insurance
Vision Insurance
Life Insurance
Short Term Disability
(STD)
Long Term Disability
(LTD)
*If the business's plan is self-insured, please use the amount paid by the business for costs associated with employee and family coverage
during the past three years and then,determine the business'average annual contribution per employee for that three year period.
Does the Business offer a pension plan,401(k)plan, and/or retirement-plan? ® Yes ❑ No
If yes, please indicate the amount contributed on a per employee basis by the Business to the plan. For 401(k)plans, please
provide information on the company match and indicate the average annual match per employee(show average as a
percentage of salary).
ConAgra offers a 401 k plan. Please see details above.
Does the Business offer a profit-sharing plan? ❑ Yes ® No
If yes, please indicate total amount paid out each year for the past three years and then, determine the average annual bonus or
contribution per employee for that three year period.
Does the Business offer child care services? ❑ Yes ® No
Child care services include child care services on-site at the facility in which the project will occur or off-site child care
subsidized by the business at the rate of 50%or more of the costs incurred by an employee.
Section A—Applicant&Project Information 9
13. Identify the Business'competitors. If any of these competitors have Iowa locations, please explain the nature of the
competition (e.g. competitive business segment, estimated market share, etc.)and explain what impact the proposed
project may have on the Iowa competitor.
Primary competitors include Kraft and Nestle. No known facilities in the State of Iowa.
14. Will any of the current Iowa employees lose their jobs if this project does not proceed in Iowa?
❑ Yes ® No
If yes, please explain why and identify those jobs as"retained jobs"in the following question.
Section A—Applicant&Project Information 10
15. List the jobs that will be retained and/or created as the result of this project. (A retained job is an existing job that
would be eliminated or moved to another state if the project does not proceed in Iowa.) For retained jobs, include the current
hourly wage rate. For jobs to be created, including the starting hourly wage rate.
Job Title Skills,Education,or Experience Number of Retained(R)or Startin�Wage
ent Hourly
Required Jobs Created C ate
Year 1 of the Project
Please see Attachment 5
Year 2 of the Project Year 1 Subtotal
Year 3 of the Project Year 2 Subtotal
Year 3 Subtotal
Total Number of Retained Jobs:
Total Number of Created Jobs:
Section A—Applicant&Project Information 11
16. Discuss each of the following items with respect to the proposed project:
a) the current employment conditions in the community, include any business closures, unemployment rates, etc.
and if applicable,the community's need for assistance in attracting the Business.
Unemployment in Iowa eased in 2005 in spite of a rapid increase in the state's labor force. The statewide
unemployment rate averaged 4.5 percent for Fourth Quarter 2005. Comparatively,the local unemployment rate for
the Waterloo/Cedar Falls MSA was also at 4.5 percent for the same Quarter. Unemployment has remained high in the
Midwest due to the region's heavy concentration in manufacturing relative to the rest of the nation. Manufacturing
continues to make progress toward recovering jobs that were lost due to the 2001 recession; however, the total
number of people available for employment in the Cedar Valley in Fourth Quarter 2005 was 94,800, higher than at any
point in the past five years.
The area's most recent laborshed study,conducted by Iowa Workforce Development, indicated a significant number of
individuals (47,303)currently working in the Cedar Valley and surrounding communities that indicated were very likely
or somewhat likely to accept other employment. There was also 8.8 percent(8.8%)of those surveyed currently
underemployed. A local job fair was held in October 2005 with approximately 60 employers of all business sectors—
manufacturing, service, education,finance, and healthcare. Over 1,000 job seekers attended demonstrating a need for
more job opportunities in the area.
The area's economy continues to strengthen, however, there is still a tremendous need in the Cedar Valley for
additional jobs offering higher wages and benefits. The majority of the positions created by this expansion in Waterloo
will exceed 160 percent(160%)of the average wage threshold of Black Hawk County. When the ConAgra facility
was constructed in 1996,over 600 individuals applied for the 50 initial positions available. The company now employs
76 full-time employees with a median wage of$18.62. Recruiting new employees and customizing technical training
will be made easier because of Hawkeye Community College. Hawkeye provides ConAgra a technically educated
workforce by offering industry-specific training to assist with the need for skilled technicians in Northeast Iowa.
b) impact of the proposed project on the community and the state, include projections that reflect the impact on local
and state tax revenue and any additional costs the community will incur as the result of the proposed project;
This expansion will help to solidify ConAgra's operations in Waterloo and better position the company for future
expansions with new or current products. It is anticipated to generate an additional$3,011,074 in annual payroll and
$15,480,766 in total state and local tax revenue pre-incentives,
c) impact the proposed project will have on current employees, including the potential for increased skills and wages;
and
The current employees would not be directly affected by the proposed project.
d)impact the investment will have on the ability of the business to expand, upgrade, or modernize its capabilities.
This investment will place ConAgra in a better position to compete with other companies by increasing profitability of its
pudding platform assets. The investment of capital and new technology into the Waterloo facility would increase
capacity by a significant amount.
17. Is the Business actively considering locations outside of Iowa? ® Yes ❑ No
If yes,where and what assistance is being offered?
Menomonie,Wisconsin: Customized Labor Training Fund; CDBG Program; TIF Financing; Transportation Economic
Assistance; Manufacturing Machinery, Equipment, and Inventory Property Tax Exemptions; Sales and Use Tax Exemptions for
Manufacturing Machinery& Equipment, Raw Materials, and Fuel, and other local incentives.
Indianapolis, Indiana: EDGE Tax Credit, Hoosier Business Investment Tax Credit, Manufacturing Machinery&Equipment
Sales Tax Exemption, and other local incentives.
18. There are three general justifiable reasons for assistance. Check the box next to the reason why assistance is needed
to complete this project
Section A—Applicant&Project Information 12
❑ Financing Gap - The Business can only raise a portion of the debt and equity necessary to complete the
project. A gap between sources and uses exists and state and/or federal funds are needed to fill the gap.
❑ Rate of Return Gap — The Business can raise sufficient debt and equity to complete the project, but the
returns are inadequate to motivate an "economic person' to proceed with the project Project risks outweigh the
rewards.
® Locational Disadvantage(Incentive)—The Business is deciding between a site in Iowa(site A)and a site in
another state (site B) for its project. The Business argues that the project will cost less at site B and will require a
subsidy to equalize costs in order to locate at site A. The objective here is to quantify the cost differential between site
A and site B.
Multiple altematives were considered and studied. With the benefits of the state and local incentives offered by
Waterloo and Iowa, ConAgra would be able to achieve substantial margin improvement and asset utilitization through
the proposed expansion of the Waterloo facility.
The Waterloo location would allow ConAgra to leverage one of our most-skilled and safest labor forces and best-in-
class technology to provide the lowest operating cost among our current pudding manufacturing plants. It makes use
of several expansion features included in the original Waterloo construction.
What measures were analyzed to determine the amount and form of assistance needed? In-bound and out-bound
logistics costs, facility production efficiency and capacity; product quality; marketabilityof increased capacity; state and
local tax burdens;expandability of facility;and availability of a qualified labor pool.
19. What amount of state assistance is requested based on the above-identified need? $4,526,874
What typefform of assistance is preferred(e.g.loans,forgivable loans, tax incentives,etc.)?
New Jobs Tax Credit $63,900
Investment Tax Credit $3,592,000
Sales Tax Refund $405,000
Direct Financial Assistance (CEBA) $150,000
New Jobs Training Program $315,974
$4,526,874
20. Please indicate what program(s)the Business is applying to and download and submit those applicable sections:
® CEBA (Complete Section B)
❑ EZ (Complete Section C)
® HQJC (Complete Section D)
❑ EVA (Complete Section E)
❑ VAAPFAP (Complete Section F)
❑ EDSA (Complete Section G)
The Department reserves the right to review this application and determine,based on the proposed project and available
program funds, which financial assistance program(s)is best suited for the Business'project The actual programs)utilized
may vary from the programs indicated above.
section A-Applicant&Project Information 13
21. Return on Investment Information—Business Taxes
IDED is required to calculate the return on state and local government investments in this project. Data from other parts of the
application will be combined with the estimates requested below to calculate the required return on investment information.
Instructions for Question 21
- IDED is asking for a best estimate on the increase in taxes associated with this project.
- Estimates should only include the expected increase in tax liability resulting from this project.
- At minimum, IDED needs estimates for the first three years of the project.
- Show data as if no tax abatements or tax credits awarded for this romect were taken.
- For partnership forms of ownership (e.g. limited partnerships, s-corporations, LLC, etc.), please estimate the
partners' increase in Iowa tax liability due to this project.
- Sales and use taxes refer to the taxes paid on materials,etc.that the Business purchases, not taxes you
collect from sales to your customers.
- Applicants will not be held to these numbers with respect to any award from or contract with IDED.
- This page of the application will automatically be treated as confidential.
Increase in Tax Collections Associated with this Project
State Business Taxes Year 1 Year 2 Year 3 Year 4 Year 5
State Corporate Income Tax* $29,835 $30,049 $29,644 $29,712 $29,667
State Business Sales and Use Tax $405,000 $25,000 $25,000 $25,000 $25,000
* Insurance Companies: Provide State Insurance Premium Tax
Local Business Taxes Year 1 Year 2 Year 3 Year 4 Year 5
Local Real Estate Property Tax $700,000 $700,000 $700,000 $700,000 $700,000
Local Option Sales Tax $TBD $TBD $TBD $TBD $TBD
Section A—Applicant&Project Information 14
Attachments
Please attach the following documents:
Al Business Plan
At a minimum, include:
• marketing study,
• feasibility study,
• projected profit and loss statements for three years into the future,
• project budget,
• production operations,
• management structure,
• personnel needs,
• descriptions of product or process,
• status of product/process development, and
• patent status(if applicable).
(Any information outlined above not included in the business plan should be submitted as supplemental information via
a separate attachment.)
A2 Copies of the Business'Quarterly Iowa Employer's Contribution and Payroll Report Summary Page(Page 1)for the
past year and a copy of the most recent payroll report for one pay period.
A3 Affidavit that states the Business has not, within the last five years,violated state or federal statutes, rules, and
regulations, including environmental and worker safety regulations, or, if such violations have occurred, that there were
mitigating circumstances or such violations did not seriously affect public health or safety or the environment.
A4 Financial Information(Existing Businesses Only)—
• Profit and loss statements and balance sheets for past three year-ends;
• Current YTD profit and loss statement and balance sheet;
• Schedule of aged accounts receivable;
• Schedule of aged accounts payable;and
• Schedule of other debts.
Application Checklist
Section A—Applicant&Project Information 15
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Application for Financial Assistance
Attachment Al
• Purchase and install an aseptic line capable of producing single flavor, non-particulate
puddings and multi-layer products consisting of two single flavor, non-particulate puddings.
• The project includes construction of process, packaging, and warehouse space to
accommodate the additional production line and finished goods. All technology is proven,
though minor enhancements over current best practices are anticipated.
• Both lines in Waterloo would operate 24/365 with the only scheduled downtime being that
for sanitation and maintenance.
• Estimated profit after tax from proposed realignment of pudding operations:
Year 0 Year 1 Year 2 Year 3
Est. Profit Increases 10MM 5MM+/- 5MM+/- 5MM+/-
• The proposed fixed capital spend for Waterloo is $45.15MM.
• Implementation of this project would provide on-going savings in ingredient yields,
packaging material costs and yields, direct labor, indirect labor, utilities and other variable
costs, plant fixed costs excluding depreciation, and plant warehousing. The gross margin
change for Snack Pack pudding would increase significantly. This project would leverages
one of our most-skilled and safest labor forces and best-in-class technology to provide the
lowest operating cost among our current pudding manufacturing plants. It would make use
of several expansion features included in the original Waterloo construction,
• The Waterloo facility is owned and managed by ConAgra, Inc. in Omaha, Nebraska.
Locally, the facility is managed by the following personnel:
o Scott Budak, Plant Manager
o Todd Kaiser, Manager, Quality and Assurance
o Duane Robertson, Plant Engineer
o Tim Yost, Project Manager, CMS
• The proposed, full-time headcount increase at Waterloo for Phase 2 would be 50. Please
see Attachment 5 for detail.
Application for Financial Assistance
Section A
Attachment 2a
Mb�1111?T
Employer's Contribution &Payroll Report 654300(2004)
Iowa Workforce Development-Attn:Tax MASTERTAX
1600 East Grand Avenue 13. Page of
Des Moines,Iowa 50319-0209
Telephone(515)281-5339
Payment(Computation (if no wages this quarter,see instructions)
1.Totall Wages(All Pages)............................... 5392462.73 14, Iowa Account Number For Momhs Of Qtr Yr
2.Taxable Wages(All Pages)..........................$ 5303901.17 333855-5 Jan-Feb-Mar 1-05
3.State Experience Due 339449.67 Federal ID Number Taxable Wage Base Delinquent After Date
(Item 2 X .06400 }............................$ 20-1248880 $ 20,400 05-02-05
4. Reserve Fund Due state Experience Rate Reserve Rate surcharge Rate
(Item 2 X .01600 ,,$ 84862.42 0 .600%
..�........................... 6.400/0 1
5.Surcharge Due Total Rate
(item 2 x ).............................$ 8.000%
6.Total lines 3,4 and 5........................ .......$ 424312.09 Employer Name&Address
7.Interest Due(See Instructions)....................$ •00 CONAGRA FDS PKGD FOODS CO INC
8.Penalty Due(See Instructions)....................$ •00 ONE CONAGRA DRIVE
9.Total Due(Items 6,7 and 8).........................$ 424312.09 CC-237
10.Amount Due from Previous Quarter............$ OMAHA NE 68102
11.Credit Due from Previous Quarter..............$ 17552.17
12.AmountPaid................................................$ 406759.92
(Make check payable to Iowa Workforce Development)
If total clue is less than $1.00, no payment is required;however,you are still required to file this report with Iowa
Workforce Development
Payroll Lists 15. Chea if payroll re rtin is b : cartridge 0 diskette
16. Social Security Number 17. Last Name First Name MI 18.Total Wage Paid 19.Taxable Wages Paid
20.Totals For This Pag
rMarketinformation
tx;srsRms►rrAt.tis¢ONLY21.Enter number of amQuyeas 22.For each month,report the number of covered workers 1st Month 1 2nd Month 3rd Month Do net wr tr la Wwftd ewe.
�we;e 62 who worked during or racaeivW pay for the payroll 588 562 591
MW. period which includes the 12th of the montin. 1
22.Identify Iowa WorWas 24.Amount of pay which exceeds regular and recurring payments to employees:
such as bonus,executive peri severance pay, ata. ....................... S
Single Worksite 25.d the rxarhber of employees Increased or
County Number decreased during the quarter for any of the 1.0 seasonal change 3.0layoff 5.0 worksite opening
For Multiple worksites fdlowlrhg reasons,Abase dhedc the 2.0labor dispute 4.0 recall a.0 worksite dosing
Complete the-Multiple Worksite box es to indicts the s.
=-If not received. plea"
If have questions r Labor Market Information, lease contact Poli and
t"Dho'e number� Infoormationervicesat regarding
2.1242Dr fax 1-515-281-8195.
F E C R FD RTE UNP EC CHG LD
26. d there are any CHANGES on your FEDERALID NUMBER,ACCOUNT NAME,ADDRESSOR OWNERSHIP,please complete and return the'EMPLOYER'S NOTICE OF CHANGE-
I CERTIFY that this report is true and correct and that no part of the contribution was deducted from any employee's wages.
Print Preparers Name ELLEN R HANSON Preparers Telephone Number 402 595-4120
Authortied Signature !e�<,�2�^ T" PR TAX SUPR.
Business Telephone 402 595-4120 Date 19-Apr-2005 112 1+APr-2006 065e Oeh
Application for Financial Assistance
Section A
Attachment 2a
Employer's Contribution& Payroll Report w-s3oo poo4)
Iowa Workforce Development-Attn:Tax MASTERTAX
1000 East Grand Avenue 13. Page of
Des Moines,Iowa 50319-0209
Telephone(515)281-5339
Payment Computation (If no wages this quarter,see instructions)
1.Total Wages(All Pages)...............................$ 5243888.69 14. Iowa Account Number For Months Of Otr Yr
2.Taxable Wages(All Pages)..........................$ 4114447.29 333855-5 Apr-May-Jun 2-05
3.State Experience Due 263324.63 Federal ID Number Taxable Wage Base Delinquent Atter Date
(Item 2 X .06400 )............................ 20-1248880 $ 20,400 08-01-05
4. Reserve Fund Due State Experience Rate Reserve Rate Surcharge Rate
(Item 2 X .01600 ..) 65831.16..............................$ 6.400% 1.600%
S.Surcharge Due Total Rate
(Item 2 x )............................S .00 8.000%
6.Total lines 3,4 and 5..................................... 329155.79 Employer Name&Address
7.Interest Due(See Instructions)....................$ '00 CONAGRA FDS PKGD FOODS CO INC
8.Penalty Due(See Instructions)....................$ •00 ONE CONAGRA DRIVE
9.Total Due(items 6,7 and 8).........................$ 329155.79 CC-237
10.Amount Due from Previous Quarter............$ OMAHA NE 68102
11.Credit Due from Previous Quarter..............$ .00
12.AmountPald................................................$ 329155.79
(Make check payable to Iowa Workforce Development)
If total due is less than $1.00, no payment is required;however,you are still required to file this report with Iowa
Workforce Development
Payroll Listing 15. Chec4 if payroll reporting is by: C9
cartridge O diskette
16. Social Security Number 17.Last Name First Name MI 18.Total Wa a Paid 19.Taxable Wa es Paid
20.Totals For This Pag
Labor Markett Into ation
oaPARTNE uk,txea ONLY
21.Erma number d 22 For each month,i report cc number f r covered pa workers 1 of Month 2nd Month 3rd Month Oo not wrw In shaded r.
paid wegee 61 who worked during or reocaNed pay for the payroll
-this w 12th of the month. 590 567 544
22-Identify Iowa Worksites 24.Amount of pay which exceeds regular and recurring payments to employees;
such as bonus,executive pay,severance pay. ex.. ....................... $
WorWrte 25.If the number of employees Increased or
County Nnxnba decreased during the quarter for any of the 1.0 seasonal Change 3.0layoff 5.0 works to opening
For M A10a Worksites Icii-nq remoras,pease check the 2.Cl tabor dispute 4.0 recall e.0 worksite rosin
Complete the'MWtlpb Worksite box ea to in"the reason a. 9
R M not received please If have questions please contact Policy and
caA fha telephone number at Infoorrmationservicesat -800.532- 21 40orrbby fax 1-«515-2ti1$1
F E C R FD RTE UNP EC CHri LD
26. H there aro any CHANGES on your FEDERAL ID NUMBER,ACCOUNT NAME,ADDRESSOR OWNERSHIP,please Complete and return the'EMPLOYER'S NOTICE OF CHANGE•
I CERTIFY that this report is true and correct and that no part of the contribution was deducted from any employees wages.
Print Preparer's Name ELLEN R HANSON Preparers Telephone Number 402 595-4120
Authorized signature C ti.d�r-- Title PR TAX SUPR.
Business Telephone 402 595-4120 Date 18-Jul-2005
112 i4Ap-2eea OB:aB gee
Application for Financial Assistance
Section A
Attachment 2a
Employer's Contribution &Payroll Report ess4m(2oo4)
Iowa Workforce Development-Ann:Tax MASTERTAX
1000 East Grand Avenue 13. Page of
Des Moines,Iowa 50319.0209
Telephone(515)281.5339
Payment Computation (If no wages this quarter,see instructions)
1.Total Wages(All Pages)...............................$ 5699170.69 14, Iowa Aaount Number For Months of
2224742.79 °tr Yr
2.Taxable Wages(All Pages)..........................$ 333855-5 Jul-Aug-Sep
3.State Experience Due 9- P 3-05
Federal ID Number Taxable Wage Base Delinquent After Doe
142383.54
(Item 2 X .06400 ..)............................>� 20-1248880 $ 20,400 10-31
4. Reserve Fund Due state Experience sate Reserve Rau -05
(Item 2 X .01600 )..............................$ 35595.88 o surcharge Rau
5.Surcharge Due 6.400% 1.600%
g Total Rau
(Item 2 X )............................S .00 8.000%
6.Total lines 3,4 and 5...................... ......S 177979.42 Employer Name&Address
7. Interest Due(See Instructions)....................$ -00CONAGRA FDS PKGD FOODS CO INC
8. Penalty Due(See Instructions)....................$ -00ONE CONAGRA DRIVE
9.Total Due(Items 6, 7 and 8)..................... $ 177979.42 CC-237
10.Amount Due from Previous Quarter............$ OMAHA NE 68102
11.Credit Due from Previous Quarter..............$ .00
12.AmountPaid................................................$ 177979.42
(Make check payable to Iowa Workforce Development)
If total due is less than $1.00, no payment Is required;however,you are still required to file this report with Iowa
Workforce Development
Payroll Usting 15. Chec if Payroll reporting is by: r-1 cartridge 0 diskette
16. Social Security Number 1 17. Last Name First Name MI 18.Total Wage Paid 19.Taxable Wages Paid
20.Totals For This Page
Labor Markett Informs ion
t1EPARTMEMAL usE ONLY
21. number d 22.For each month,report the number d covered workers tet Month 2nd Month 3rd Menta oat not wrtd In afrtlad arta
this wade 59 who wwor period worked or reocewed pay for ft payroll includes the 12M of the month, 1 541 523 539
22.Identify Iowa Works us 24.Amount of pay which exceeds regular and recurring payments to employees;
such as bonus,executive pay,severance pay, etc.. ....................... 5
= 25.it the number in empbyeeo or the
de1.0 seasonal change 3.0 I dt 5.0 worksite opening
decreasedessed during the quarter
r for rot any d ay
For Multiple WarkSit" following reasons,please cttatic the Cl law �g
Campht0 the'Witiple Worksite box es to indicate
2 the rsaaon s. dfspuu 4,❑reeatl e.❑worksite da
C ndt revived, pktaee
ths�telephone number at M you have questions regarding Labor Market Information,please contact Policy and
Inforrnat nServicesat t 124Sx by tax 1.515281$195.
F E C R FD RTE UNP EC CHG LD
26. M mere are any CHANGES on your FEDERAL ID WNSER,ACCOUNT NAME,ADDRESS OR OWNERSHIP,please complete and return the'EMPLOYER'S NOTICE OF CHANGE'
I CERTIFY that this report Is true and correct and that no part of the contribution was deducted from any employee's wages.
Print Preparer's Name ELLEN R HANSON Preparers Telephone Number 402 595-4120
Authorized signature ( Title PR TAX SUPR.
Business Telephone 402 595-4120 Date 18-Oct-2005
112 ,t•Ap-zoos cess 6647
Application for Financial Assistance
Section A
Attachment 2a
Employer's Contribution&Payroll Report es-59oo(2oo4)
Iowa Workforce Development-Attn:Tax MASTERTAX
1000 East Grand Avenue 13. Page of
Des Moines,Iowa 50319-0209
Telephone(515)281-5339
Payment Computation (If no wages this quarter,see instructions)
1.Total Wages(All Pages)............................... 5148551.81 14. Iowa Account Number For Months Of
Gtr Yr
2.Taxable Wages(All Pages)..........................$ 616291.51 333855-5 Oct-Nov-Dec 4-05
3.State Experience Due36442 66 Federal ID Number Taxable Wage Base Delinquent After Date
(Item 2 06400 �............................$ 20-1248880 $ 20,400 01-31-06
4. Reservee Fund Due 9860.66 state Experience Rate Reserve Rate surcharge Rate
(Item 2 X 01600 ).............................$ 6.400% 1.600%
5.Surcharge Due Total Rare
(Item 2 x ..).............................$ .00 8.000%
6.Total lines 3,4 and 5....................................$ 49303.32 Employer Name&Address
7.Interest Due(See Instructions)....................$ 00 CONAGRA FDS PKGD FOODS CO INC
8.Penalty Due(See Instructions)....................$ 00 ONE CONAGRA DRIVE
9.Total Due(Items 6, 7 and 8�........................$ 49303.32 CC-237
10.Amount Due from Previous Quarter............$ OMAHA NE 68102
11.Credit Due from Previous Quarter..............$ .00
12.AmountPald................................... ......$ 49303.32
(Make check payable to Iowa Workforce Development)
It total due Is less than $1.00, no payment Is required;however,you are still required to Nle this report with Iowa
Workforce Development
Payroll UsUng 15. Chec4 if payroll reporting is by: cartridge 0 diskette
16. Social Security Number 17.Last Name First Name MI 18.Total Wage Paid 19.Taxable Wag es Paid
20.Totals For This Pag
Labor Marketlnformation
DEVARTWENTAL USE ONLY
21.Eller number d fes 22 For each ",report the number d covered workers 1st Month 2nd Month 3rd Month Do not wMa in shaft!mea
nw wages 57 who worked during or period which inck�the
payof themonth.
522 493 449
22.Identify Iowa Worksites 24.Amount of pay which exceeds regular and recurring payments to employees;
such as bonus,exea we pay,swerence pay, etc., ....... s
25.0 the number of employees increased or
decreased during the quarter for any of the 1.0 seasonal change 3.13 layff 5.0 worksfte opening
For Multiple Warkaites following reasons,please chetic the
Complete the'AAtYrfpla Workshe box as to indicate the r a. 2.C3 labor dispute 4.Orwell e.17 worksite tlosinp
Resort'*ff not received plea9e
wt
the telephorts number at If Ya have questions regarding Labor Market Information,please contact Policy and
Infonna Ni 1 fax 1.615.281-8195.
F E I C I R FD RTE UNP EC CHG LD
26. ff them aro any CHANGES an your FEDERAL ID NUMBER,ACCOUNT NAME,ADDRESS OR OWNERSHIP,please complete and return the'EMPLOYER'S NOTICE OF CHANGE*
I CERTIFY that this report Is true and correct and that no part of the contribution was deducted from any employee's wages.
Pant Preparers Name ELLEN R HANSON Preparers Telephone Number 402 595-4120
Authorized signature 7 Title PR TAX SUPR.
Business Telephone 402 595-4120 Daie 18-Jan-2006
112 14-Arrr-20o6 0844 8644
Application for Financial Assistance
Section A
Attachment 2b
ConAgra Foods,Inc.
Waterloo Payroll Report
For Pay Period Ending 4/8/06
Pay End Rata IW Pa" Ire
2006-04-09 1013392 Leam,Renae L Administrative Assistant II B
2006-04-09 1013612 Robertson,Duane E Engineerlll E E B 481783278 80.00 33.00
2006-04-09 1013868 Shimek Jr,Carl E OPER/MAINT TECH H W 309769149 80,00 0.00
2006-04-09 1013869 Yost,Timoth J 483829801 40.00 9.25
Y Director Engineering I S B 289464723 80:00 0.00
2006-04-09 1013870 Robbins,Timothy MATERIAL HANDLER H W
2006-04-09 1013871 Johnson,Todd J OPER/MAINT TECH 478085151 37.25 0.00
2006-04-09 1013873 Wilson,Sheila M Administrative Assistant IV E B 483804068 40.00 9.50
485623207 40.00 8.00
2006-04-09 1013874 Shepherd,PeterJ Supervisor Mfg/Ops S B
482988318 -80.00 0.00
2006-04-09 1013876 Delau,Edward L Supervisor Mfg/Ops S B 309506017 80:00 0.00
2006-04-09 1013878 Edwards,Tony A FACILITY MAINT TECH H W 478885138 40.00 9.75
2006-04-09 1013879 La Velle,David W FACILITY MAINT TECH H W 483800322 40.00 8.50
2006-04-09 1013881 Tyler,Jeffrey R RECEIVING/INSPECTION H W 482826749 48.00 0.00
2006-04-09 1013883 Utley,Thomas M FACILITY MAINT TECH H W 480765234 40.00 22.00
2006-04-09 1013884 Ruport,Scott D FACILITY MAINT TECH H W 478789347 36.00 0.00
2006-04-09 1013885 Workman,Scott A MECH ROOM TECH H W 481723693 28.00 6.75
2006-04-09 1013887 Zilk,Michael M RECEIVINGRNSPECTION H W 478725668 28.00 9.00
2006-04-09 1013889 Gulsvig,Nancy J OPER/MAINT TECH H W 363668669 40.00 9.00
2006-0409 1013890 Kuster,Danny L OPER/MAINT TECH H W 478781848 40.00 25.00
2006-0409 1013891 Abels,ScottA OPER/MAINT TECH H W 484921222 36.75 0.00
2006-0409 1013892 Haskin,Larry D Supervisor Mfg/Ops S B 478588776 80.00 0.00
2006-04-09 1013893 Schmit,Brent A OPER/MAINT TECH H W 478906611 36.00 21.50
2006-0409 1013894 Adams,Christina E OPER/MAINT TECH H W 481784352 40.00 14.75
2006-0409 1013895 Wygle,Cindy L OPER/MAINT TECH H W 484762900 40.00 34.00
2006-04-09 1013896 Johnson,Jeffery S OPER/MAINT TECH H W 481884138 37.25 0.25
2006-0409 1013898 Wahner,Tanya S JANITOR H W 482909288 30.00 0.00
2006-04-09 1013900 Cames,Jason B Supervisor QA S B 483088353 80.00 0.00
2006-0409 1013902 Ogle,Thomas J JANITOR H W 483840691 40.00 0.50
2006-04-09 1013904 Knief,Christopher E OPER/MAINT TECH H W 483969837 40.00 9.00
2006-04-09 1013905 Dailuge,John P OPER/MAINT TECH H W 481821528 25.00 0.50
2006-04-09 1013906 Cook,Randy D WAREHOUSEMAN H W 478725182 40.00 13.75
2006-0409 1013907 Beier,David L MATERIAL HANDLER H W 481886012 40.00 24.00
2006-0409 1013908 Stokes,Darin J OPER/MAINT TECH H W 484805638 40.00 4.25
2006-0409 1013910 Monison,Michael S MECH ROOM TECH H W 484901219 32.50 0.00
2006-04-09 1013912 Thompson,Lawrence J Supervisor Mfg/Ops S B 484062425 80.00 0.00
2006-04-09 1013913 Billingsley,Tom W OPER/MAINT TECH H W 526918166 28.00 9.25
2006-0409 1013914 Fitkin,James E OPER/MAINT TECH H W 478609783 37.50 0.25
2006-0409 1013916 Craig,Mark W MECH ROOM TECH H W 478924199 8.00 13.50
2006-0409 1013917 Kester,Ronald E MATERIAL HANDLER H W 480828060 40.00 15.50
2006-0409 1013918 Reisner,Dwayne E MATERIAL HANDLER H W 480625106 37.25 0.25
2006-0409 1013919 Kaus,James R OPER/MAINT TECH H W 484640694 40.00 14.25
2006-0409 1013920 Fisher,David L MECH ROOM TECH H W 482900691 32.50 0.25
2006-0409 1013923 Cain,Bryan L OPER/MAINT TECH H W 479023587 40.00 10.50
2006-04-09 1013925 Woodward,Eric W WAREHOUSEMAN H W 485786984 40.00 22.25
2006-0409 1013926 Higgins,Becky L Inventory Coordinator E 8 345447887 56.00 5.00
2006-0409 1013928 Tilkes,Duane J OPER/MAINT TECH H W 481889732 40.00 16.00
2006-0409 1013929 Wells,Paul B OPER/MAINT TECH H W 480648899 40.00 15.00
2006-0409 1013930 Frost,Marcia K OPER/MAINT TECH H W 507844073 28.00 0.25
2006-04-09 1013931 Burke,Mark W OPER/MAINT TECH H W 484929210 40.00 16.00
2006-0409 1013932 Miller,Russell A OPER/MAINT TECH H W 480683315 40.00 6.00
2006-0409 1013934 Arrnstrong,Kad F OPER/MAINT TECH H W 479906005 40.00 15.00
2006-04-09 1013935 Miller,Brian M MECH ROOM TECH H W 478960130 40.00 14.75
2006-04-09 1013936 Osier,Darin D OPER/MAINT TECH H W 481923732 40.00 15.00
2006-04-09 1014230 Kaiser,Todd R Manager Quality Assurance I S B 350589111 80.00 0.00
2006-04-09 1014622 Galle,Danny L WAREHOUSEMAN H W 483132578 40.00 4.50
2006-0409 1014623 Zea,Jeffrey S WAREHOUSEMAN H W 481728245 40.00 3.25
2006-04-09 1015750 Barnes Jr,Lawrence J WAREHOUSEMAN H W 484867503 32.00 7.75
2006-04-09 1015798 Meyer,Douglas Ray WAREHOUSEMAN H W 484842678 40.00 11.00
2006-0409 1075360 Tidemanson,Aaron L OPER/MAINT TECH H W 479118832 37.00 0.00
2006-04-09 1075361 Frost,Chad J OPER/MAINT TECH H W 481947615 40.00 23.50
2006-0409 1075362 Moore,Leslie L OPER/MAINT TECH H W 482808069 11.00 14.00
2006-04-09 1075363 Robinson,Ryan T OPER/MAINT TECH H W 484909958 37.00 0.00
2006-04-09 1089275 Broell,David J WAREHOUSEMAN H W 480963457 40.00 14.75
2006-0409 1103891 Fisher,Nancy A Inventory Coordinator E B 478588788 78.00 18.25
2006-04-09 1110331 Kuennen,Gary A OPER/MAINT TECH H W 480921394 32.50 0.00
2006-04-09 1112279 Hardy,Joel M OPER/MAINT TECH H W 478116614 32.50 0.00
2006-04-09 3035830 Schutte,Lee A Manager Warehouse S B 479025477 80.00 0.00
2006-04-09 3046029 Hrdlicka,Michael J OPER/MAINT TECH H W 484887978 32.50 0.00
2006-04-09 3056258 VanHeiden,Sheldon L OPER/MAINT TECH H W 485045774 40.00 14.75
2006-04-09 3056262 Gallery,Chester J OPER/MAINT TECH H W 479886113 32.50 0.00
2006-04-09 3056625 Usher,Robby J OPER TECH IN-TRAIN H W 484062046 32.50 0.00
2006-04-09 3059861 Budak,Scott 8 Manager Plant-Med S B 478946540 80.00 0.00
2006-04-09 3069997 Wood,Jeanne Frances HR Generalist S B 484607485 80.00 0.00
2006-0409 3070435 Tricic,Beco OPER TECH IN-TRAIN H W 130844205 32.50 0.00
2006-04-09 3071178 Ruehs,Randy W MATERIAL HANDLER H W 478789488 32.50 0.00
2006-04-09 3071430 Niewoehner,Gina Marie Accountant 11 S B 478927825 80.00 0.00
Page 1 of 1
Attachment A3
Affidavit
State of Iowa
County of Black Hawk
I, Kevin Connors, depose and say that I have examined the following statement and have found it
to the best of my knowledge to be accurate and true.
ConAgra Foods Packaged Foods Company, Inc. has not, within the last five years, violated state or
federal statutes, rules, and regulations, including environmental and worker safety regulations, or, if
such violations have occurred, that there were mitigating circumstances or such violations did not
seriously affect public health or safety or the environment.
I further depose that the signature below is my own proper signature.
1
Dated: April 17, 2006 x` �
Signature
Subscribed and sworn to before me on
is IJ1+—') d of ; Y i I 200 io
otary Public)
L County
My commission expires on 21� 2tiDL
GENERAL NOTARY-State of Nebraska
LORI A.WATSON
My Comm.Exp.Aug.21,2006
Application for Financial Assistance
Section A
Attachment 4
Consolidated Statements of Earnings
ConAgra Foods,Inc.and Subsidiaries
FOR THE FISCA(.YEARS ENDED MAY r --2005 2004 2003
...........................................................................-..............................................
...............................................................
Dollars in millions except per share amounts
..............................................................................................................................................}............................................
Net sales 1 $14,566.9 S14,081.8 $16,533.6
Costs and expenses:
Cost of goods sold ! 11,464.9 10,876.1 13,146.2
Selling,general and administrative expenses ! 1,834.7 1,816.4 1,901.1
Interest expense,net ! 295.0 174.9 274.7
Gain on sale of Pilgrim's Pride Corporation common stock ! 185.7 - -
...........................................................................................................................................................................................
Income from continuing operations before income taxes,equity method
investment earnings(loss)and cumulative effect of changes in accounting ! 1,158.0 1,112.4 1,211.6
Income tax expense ! 470.0 428.8 445.7
Equity method investment earnings(loss) ! (24.9) 43.5 46.2
...........................................................................................................................................................................................
Income from continuing operations before cumulative effect of changes in accounting ! 663.1 727.1 812.1
Income(loss)from discontinued operations,net of tax ! (21.6) 97.3 (52.2)
Cumulative effect of changes in accounting,net of tax ! - (13.1) 3.9
...........................................................................................................................................................................................
Net income $ 641.5 S 811.3 $ 763.8
Earnings per share-basic
Income from continuing operations before cumulative effect of changes in accounting ! $ 1.28 $ 1.38 $ 1.53
Income(loss)from discontinued operations ! (0.04) 0.18 (0.10)
Cumulative effect of changes in accounting - (0.02) 0.01
...........................................................................................................................................................................................
Net income 1 $ 1.24 $ 1.54 $ 1.44
Earnings per share-diluted
Income from continuing operations before cumulative effect of changes in accounting ! $ 1.27 S 1.37 S 1.53
Income(loss)from discontinued operations ! (0.04) 0.18 (0.10)
Cumulative effect of changes in accounting - (0.02) 0.01
...........................................................................................................................................................................................
Net income I $ 1.23 $ 1.53 $ 1.44
The accompanying Notes are an integral part of the consolidated financial statements.
Consolidated Statements of Comprehensive Income
ConAgra Foods.Ina..and Subsidfancs
FOR THE FISCAL YEARS ENDEL,Nf AY 2005 2004 2003
...........................................................................................................................................................................................
Dollars in millions .
...........................................................................................................................................................................................
Net income 1 $ 641.5 S 811.3 $ 763.8
Other comprehensive income(loss),net of tax
(except for currency translation adjustment):
Net derivative adjustment ! (0.8) 31.5 2.1)
Unrealized gain on available-for-sale securities,net of tax:
Unrealized net holding gains arising during the period ! 114.7 90.5 -
Less:reclassification adjustment for gains included In net income ! (115.2) - -
Currency translation adjustment ! 26.6 44.6 60.1
Minimum pension liability ! 0.2) 12.7 (64.9)
.........................................................................................................................................................................................
Comprehensive income ! $ 665.6 $ 990.6 $ 756.9
The accompanying Notes are an integral part of the consolidated financial statements. --_-'
l3
• Application for Financial Assistance
Section A
Attachment 4
Consolidated Balance Sheets
ConAgra Foods,Inc.and Subsidiaric.,
..............................................................t MAY 2�, MAY 3A.
................................................................................ ..............Y 19, .-�.........
S .........4
Dollars in millions aoo zw
. .................................................................................... �.......................�....................
Assets
Current assets
Cash and cash equivalents $ 207.6 j $ 608.6
Divestiture proceeds receivable I - 80.3
Receivables,less allowance for doubtful accounts of S30.7 and S26.2 I 1,292.0 1,303.1
Inventories 2,614.5 2,516.5
Prepaid expenses and other current assets j 380.2 439.7
Current assets of discontinued operations 29.4 221.1
.............................................................................................................................................. ...........................................
Total current assets 4,523.7 1 5,149.3
.. ...............................................................................................................................
Property,plant and equipment i....................
Land and land improvements ' 165.9 160.6
Buildings,machinery and equipment ( 4,516.7 j 4,389.6
Furniture,fixtures,office equipment and other 852.6 j 688.3
Construction inro ress 200.4 j 319.6
...........................................-..................................................................................................
f...........
.......-..................
......
5,735.6 5,558.1
Less accumulated depreciation j (2,887.3) (2,7203)
...........................................................................................................................................................:....................
Property,plant and equipment,net .. 2,837.4
................................................................................................ I................ .. I
... ...................
Goodwill 3,797.7 i 3,788-6
Brands,trademarks and other intangibles,net ( 819.7 826.9
Other assets 798.4 1 1,559.4
Noncurrent assets of discontinued operations ' 3.9 60.6
.............................................................................................................................................. .......................:....................
$12,791.7 514,222.2
Liabilities and Common Stockholders"Equity
Current liabilities
Notes payable j $ 8.5 $ 30.6
Current installments of long-term debt 117.3 382.4
Accounts payable 818.4 925.4
Advances on sales 149.6 r 178.4
Accrued payrollI 272.4 212.0
Other accrued liabilities 1,012.2 1,072.9
Current liabilities of discontinued operations 10.2 142.8
................................................................................................................................................................:....................
Total current liabilities i 2,388.6 ' 3,004.5
...............................................................................................
.............................
Senior long-term debt,excluding current installments 3,949.1 1 4,878.4
Subordinated debt 400.0 i 402.3
Other noncurrent liabilities j 1,194,6 1,143.1
.......................................................................................................................................... .......................i...................
Total liabilities 7,932.3 9,428.3
.....................................................................................................................................
Commitments and contingencies(Notes 16 and 17)
Common stockholders'equity
Common stock of S5 par value,authorized 1,200,000,000 shares;issued 565,942,765 and 565,842,299 I 2,829.7 2,829.2
Additional paid-in capital 761.6 755.7
Retained earnings j 2,438.1 2,349.2
Accumulated other comprehensive income j 44.0 1 19.9
Less treasury stock,at cost,common shares 47,841,291 and 44,647,495 (1,209.3) (1,123.8)
...........................................................................................................................................................i....................
4,864.1 4,830.2
Less unearned restricted stock and common shares held in Employee Equity Fund(0 and 1,062,793) (4.7) (36.3)
...........................................................................................................................................................................................
Total common stockholders:equity 1 4,859.4 4,793.9
.............. ............ ..... ..........................................1.... ...................................
$12,791.7 $14,222.2
I
The accompanying Notes are an integral part of the consolidated financial statements. �
54
Application for Financial Assistance
Section A
Attachment 4
CONSOLIDATED BALANCE SHEETS
ConAgra Foods,Inc.and Subsidiaries
MAY 30, MAY 25,
Dollars in millions 2004 2003
(As Restated,see Note 21)
Assets
Current assets
Cash and cash equivalents $ 608.6 $ 688.1
Divestiture proceeds receivable 60.3 -
Receivabies,less allowance for doubtful accounts of$26.5 and$33.1 1,324.1 800.9
Inventories 2,580.9 2,398.6
Prepaid expenses and other current assets 439.8 716.3
Current assets of discontinued operations 135.6 1,505.2
Total current assets 5.149.3 6,1`09.1
Property,plant and equipment
Land and land improvements 161.3 165.0
Buildings,machinery and equipment 4,456.2 4,196.4
Furniture,fixtures,office equipment and other 691.2 582.7
Construction in progress 324.0 167.8
5,632.7 5,111.9
Less accumulated depreciation (2.752.71 (2,433.6)
Property,plant and equipment,net 2,880.0 2.678.3
Goodwill 3,796.6 3,805.0
Brands,trademarks and other intangibles,net 826.9 824.3
Other assets 1,559.4 1,144.4
Noncurrent assets of discontinued operations 10.0 557.6
$ 14.222.2 $ 15.118.7
Liabilities and Stockholders' Equity
Current liabilities
Notes payable $ 30.6 $ 1.6
Current installments of long-term debt 382.4 508.7
Accounts payable 940.8 788.1
Advances on sales 178.4 112.0
Accrued payroll 272.0 273.2
Other accrued liabilities 1,079.8 1,166.5
Current liabilities of discontinued operations 120.5 996.4
Total current liabilities 3,004.5 3.846.5
Senior long-term debt,excluding current installments 4,878.4 4,632.2
Subordinated debt 402.3 763.0
Preferred securities of subsidiary company - 175.0
Other noncurrent liabilities 1,143.1 1,040.0
Noncurrent liabilities of discontinued operations - 17.4
Total liabilities 9.428.3 10.474.1
Commitments and contingencies(Notes 15 and 16)
Common stockholders'equity
Common stock of$5 par value,authorized 1,200,000,000 shares;issued 565,842,299 and
565,617,169 2,829.2 2,828.1
Additional paid-in capital 755.7 737.1
Retained earnings 2,349.2 2,103.8
Accumulated other comprehensive income(loss) 19.9 (159.4)
Less treasury stock,at cost,common shares 44,647,495 and 28,851,930 (1,123.81 (686.41
4,830.2 4,823.2
Less unearned restricted stock and value of 1,062,793 and 7,428,088 common shares held
in Employee Equity Fund (36.3) (178.6)
Total common stockholders'equity 4,793.9 4,644.6
S 14.222.2 S 15.118.7
The accompanying notes are an integral part of the consolidated financial statements.
33
Application for Financial Assistance
Section A
Attachment 4
Part I-Financial Information
Item 1. Condensed Consolidated Finincial Statements
ConAgra Foods,Inc.and Subsidiaries
Condensed Consolidated Statements of Earnings
(in millions except per share amounts)
(unaudited)
Thirteen weeks ended Thirty-nine weeks ended
February 26, February 27, February 26, February 27,
2006 2005 2006 2005
Net sales $ 2,878.9 $ 2,756.3 $ 8,604.8 $
Costs and expenses:
Cost of goods sold 2,164.1 2,046.1 6,494.2 6,361.5
Selling,general and administrative expenses 525.4 459.6 1,369.1 1,246.9
Interest expense,net 61.8 68.1 192.2 227.3
Gain on sale of Pilgrim's Pride Corporation common
stock - 185.7 329.4 185.7
Income from continuing operations before income taxes
and equity method investment earnings(loss) 127.6 368.2 878.7 855.1
Income tax expense 34.3 144.8 302.1 341.8
Equity method investment earnings(loss) (0.6) (64.0) (31.2) (34.8)
Income from continuing operations 92.7 159.4 545.4 478.5
Income(loss)from discontinued operations,net of tax (124.4) 5.9 (61.9) 61.2
Net income(loss) $ (31.7) $ 165.3 $ 483.5 $ 539.7
Earnings per share-basic
Income from continuing operations $ 0.18 $ 0.31 $ 1.05 $ 0.93
Income(loss)from discontinued operations (0.24) 0.01 (0.12) 0.12
Net income(loss) $ (0.061 $ 0.32 $ 0.93 $ 1.05
Earnings per share-diluted
Income from continuing operations $ 0.18 $ 0.31 $ 1.05 $ 0.92
Income(loss)from discontinued operations (0.24) 0.01 (0.12) 0.12
Net income(loss) $ (0.06) $ 0.32 $ 0.93 $ 1.04
See notes to the condensed consolidated financial statements.
2
Application for Financial Assistance
Section A
Attachment
ConAgra Foods,Inc.and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
(in millions)
(unaudited)
Thirteen weeks ended Thirty—nine weeks ended
February 26, February 27, February 26, February 27,
2006 2005 2006 2005
Net income(loss) $ (31.7) $ 165.3 $ 483.5 $ 539.7
Other comprehensive income(loss):
Net derivative adjustment,net of tax (14.7) 4.9 15.1 (10.6)
Unrealized gain(loss)on available—for—sale
securities,net of tax:
Unrealized holding gains(losses)arising during
the period 1.0 103.5 (15.6) 145.9
Less:reclassification adjustment for(gains)
losses included in net income 21.9 (115.2) (73.4) (115.2)
Currency translation adjustment 5.8 (8.21 14.9 21.1
Comprehensive income $ (17.7) $ 150.3 $ 424.5 $ 580.9
See notes to the condensed consolidated financial statements.
3
Application for Financial Assistance
Section A
Attachment 4
ConAgra Foods,Inc.and Subsidiaries
Condensed Consolidated Balance Sheets
(dollars in millions except per share amounts)
(unaudited)
February 26, May 29, February 27,
ASSETS 2006 2005 2005
Current assets
Cash and cash equivalents $ 237.2 $ 207.6 $ 8,6
Receivables,less allowance for doubtful accounts of$31.0,$30.7
and$31.9 1,159.4 1,260.8 1,352.9
Inventories 2,489.1 2,153.6 2,408.1
Prepaid expenses and other current assets 436.5 631.3 513.1
Current assets held for sale 448.6 521.5 761:6
Total current assets 4,770.8 4,774.8
5.044.3
Property,plant and equipment 4,865.0 4,807.5 4,904.1
Less accumulated depreciation (2.560.2) (2.436.6) (2.493.9)
Property,plant and equipment,net 2,304.8 2.370.9 2,410.2
Goodwill 3,448.0 3,451.5 3,452.5
Brands,trademarks and other intangibles,net 799.8 801.0 797.0
Other assets 404.6 798.4 836.2
Noncurrent assets held for sale 655.0 846,2 880.8
$
LIABILITIES AND STOCKHOLDERS' EQUITY 12.383.0 $ 13.042.8 $ 13,421.0
Current liabilities
Notes payable $ 11.1 $ 8.5 $ 57.7
Current installments of long-term debt 420.1 117.3 115.6
Accounts payable 891.8 781.6 941.0
Advances on sales 137.3 149.6 170.7
Accrued payroll 236.5 _ 270.0 204.5
Other accrued liabilities 1,212.7 1,247.1 1,391.7
Current liabilities held for sale 41.6 65.6 142.6
Total current liabilities 2,951.1 2.639.7 3,023.8
Senior long-term debt,excluding current installments 3,010.9 3,949.1 3,953.4
Subordinated debt 400.0 400.0 400,0
Other noncurrent liabilities 1,131.1 1,189.2 1,145.2
Noncurrent liabilities held for sale 4.4 5.4 7,1
Total liabilities 7.497.5 8.183.4 8,529.5
Commitments and contingencies(Note 10)
Common stockholders'equity
Common stock of$5 par value,authorized 1,200,000,000 shares;
issued 566,209,519,565,942,765 and 565,929,894 2,831.0 2,829,7 2,829.7
Additional paid-in capital 758.2 761.6 756.4
Retained earnings 2,497.5 2,438.1 2,475.3
Accumulated other comprehensive income(loss) (14.9) 44.0 61.1
Less treasury stock,at cost,46,889,778,47,841,291 and 48,178,291
common shares (1,183.8) (1,209.31 (1,225,1)
4,888.0 4,864.1 4,897.4
Less unearned restricted stock (2.5) (4.7) (5,9)
Total common stockholders'equity 4,R85.5 4,859.4 4.891.5
$ 12.383.0 $ 13,042.8 $ 13.421.0
See notes to the condensed consolidated financial statements.
4
• Application for Financial Assistance
Section A
Attachment 4
Notes to Consolidated Financial Statements (continued)
The following table reconciles the income and average In addition to the above,as part of the company's ongoing
share amounts used to compute both basic and diluted earnings efforts to reduce general and administrative expenses,including
per share: salaried headcount,during the fourth quarter of fiscal 2005 the
company announced it was in the process of eliminating several
zoos i zooq ....... hundred salaried jobs across the organization.The headcount
..................................................................................... . .
Net income: reductions will be largely complete by the end of the first
Income from continuing
operations before I
quarter anter of fiscal 2006.The company recognized$42.7 million of
severance expense during fiscal 2005 primarily within its Retail
cumulative effect of
changes in accounting 5663.1 j S727.1 S 812.1 Products segment and Corporate.As of the end of fiscal 2005,
Income(loss)from j $42.4 million was reflected in other accrued liabilities in the
discontinued operations 1 (21.6) 97.3 (52.2) company's consolidated balance sheet.
Cumulative effect of changes
in accounting - 113.1) 3.5 ?. Asset Impairments and Casualty Loss
............................tin .........................
Net income 1 $641.5 $811.3 $76.,'
.8' During fiscal 2005,the company determined that it would close
a manufacturing facility within its Food Ingredients segment and
Weighted average
shares outstanding: recognized a charge of $15.0 million to reduce the carrying
Basic weighted average amounts of the related long-lived assets to their fair values.
shares outstanding j 516.2 527.2 528.6 As a result of a fire at a manufacturing facility in fiscal
Add:Dilutive effect of 2005,the company recognized a charge,net of insurance recov-
stock options,restricted eries,of$10.0 million in the Foodservice Products segment for
stock awards and other the loss of inventory and property,plant and equipment.
dilutive securities 1 4.0 3.5 2.1
••••••...•••.......••.•......••• .•j•.•••••••••••.••............ In fiscal 2005,the company determined the carrying values
Diluted weighted average
of its investments in two unrelated joint ventures were other
shares outstanding ( 520.2 J 5307 530.7 than temporarily impaired and therefore recognized pre-tax
impairment charges totaling$71.0 million($65.6 million after tax).
At the end of fiscal years 2005,2004 and 2003,there were The pre-tax charges are reflected in equity method investment
6.9 million,12.2 million and 15.4 million stock options outstanding, earnings (loss) in the statement of earnings. The extent of
respectively,that were excluded from the computation of shares the impairments was determined based upon the company's
contingently issuable upon exercise of the stock options because assessment of the recoverability of its investments,including an
exercise prices exceeded the annual average market value of assessment of the investees'ability to sustain earnings which
common stock. would justify the carrying amount of the investments.
During fiscal 2005,the company recorded a pre-tax charge
�. Receivables Sccuritizatian of$10.0 million for an impairment of a brand and related assets
The company had previously entered into agreements to sell in the Retail Products segment.
interests in pools of receivables, in an amount not to exceed
$400 million at any one time. During fiscal 2005,the company h. Inventories
effectively terminated these agreements. There were no The major classes of inventories are as follows:
interests in pools of receivables sold at fiscal year-end 2005 zoos �a
and2004. ...............................................................
Raw materials and packaging $1,013.0 i $1.104.0
6. Cost Redaction Efforts Work in progress 79.7 70.6
In fiscal 2004,the company identified specific operating efficiency Finished goods 1,382.4 j 1,170.6
initiatives as part of an effort to improve the company's cost Supplies and other 139.4 171.3
................................................................ ... ............
structure,margins and competitive position.As a result of these $2,614.5 i $2,516.5
specific initiatives, the company recognized certain expenses
during fiscal 2004 and 2005, including employee termination 9. Credir Facilities and Borrowings
costs, accelerated depreciation on fixed assets, equipment/ At May 29,2005,the company had credit lines from banks that
employee relocation costs,asset impairments and other related totaled approximately $1.4 billion, including $1.05 billion of
costs.The company recognized$21.1 million and$61.8 million of long-term revolving credit facilities maturing in May 2007 and
expenses in fiscal 2005 and 2004, respectively, for these short-term loan facilities approximating$345 million.The company
initiatives. These costs were incurred primarily in the Retail has not drawn upon the long-term revolving credit facilities.
Products segment in fiscal 2005 and in the Retail Products and Borrowings under the long-term revolver agreements bear
Foodservice Products segments in fiscal 2004.The company does interest at or below prime rate and may be prepaid without
not anticipate additional costs associated with these initiatives. penalty.As of May 29,2005,the company had$8.5 million drawn
under the short-term loan facilities.
64
Application for Financial Assistance
Section A
Attachment 4
Notes to Consolidated Financial Statements (continued)
The company finances its short-term liquidity needs with The aggregate minimum principal maturities of the
bank borrowings, commercial paper borrowings and bankers' long-term debt for each of the five fiscal years following May 29,
acceptances.The average consolidated short-term borrowings 2005,are as follows:
outstanding under these facilities were$118.6 million and$121.1
million for
.zoos.................................................................................$117.3
fiscal years 2005 and 2004,respectively.The highest
period-end,short-term indebtedness during fiscal 2005 and 2004 2007 518.5
was$270.5 million and$295.0 million,respectively.The weighted 20o8 9.8
average interest rate was 1.15% and 2.33% for fiscal 2005 and 2009
.19.9
2004,respectively. 2010
170
to. Senior Longi Perm Debt, tiubordinated Debt The most restrictive note agreements(the revolving credit
and Loan Arcemenis facilities and certain privately placed long-term debt) require
zoos zoo4 the company to repay the debt if consolidated funded debt
"Senior'n"".D"Deb"•t................................................1"'' ••.. exceeds 65%of the consolidated capital base or if fixed charges
coverage is less than 1.75 to 1.0, as such terms are defined
3.25%senior debt due September 2030 $300.0 $ 300.0 coverage
applicable agreements. As of the end of fiscal 2005, the
7.040 senior debt due October 20281 400.0 400.0 company's consolidated funded debt was approximately 45%of
63%senior debt due August 2027 its consolidated capital base and the fixed charges ratio was
(redeemable at option of holders in 2009) 300.0 300.0
approximately 3.9 to 1.0.
2125%senior debt due October 2026 I
(redeemable at option of holders in 20061 400.0 400.0 Net interest expense consists of:
7.875`x°senior debt due September 2010 � 750.0 750.0 zoos 2004 zoos
9.875%senior debt due November 2005 ; 100.0 100.0 .. •"".....
° Long-term debt j $3493 � $335.1 $328.4
7.5 i°senior debt,repaid in fiscal 2005 i - 600.0 Short-term debt
0.8 7.2 19.2
9.87%to 9.95%senior notes
due in various amounts through 2009 21.925.2
Interest income I (27.0) (49.6) (53.7)
8.1°x°to 9.0°..%publicly issued medium- Interest included in costof goods sold (19.3) i (13.4) 115.3)
term notes,repaid in fiscal 2005 - 12.0 Interest capitalizedi (8.6) (4.4) (3.9)
..........................j............................
6.0%senior debt due September 2006 500.0 500.0
I $295.0 $274.9 $274.7
635%senior debt due September 2011 1,000.0 1,000.0
1.65%to 9.28%Industrial Development As noted in the above table, interest expense incurred
Revenue Bonds(collateralized by
plant and equipment'r due on various to finance hedged inventories has been reflected in cost of
dates through 2019 5.2 13.5 goods sold.
4.55%to!0.07%lease financing obligations Net interest paid was $360.3 million,$334.2 million and
due on various dates through 2024 232.4 194.7 $293.5 million in fiscal 2005,2004 and 2003,respectively.
Notes securing preferred securities of a In fiscal 2004, the company received approximately
subsidiary company - 221.5 $134 million from the termination of all of its interest rate swaps
Miscellaneous unsecured 51.4 50.7 (see Note 18).The proceeds are not included in the net interest
Total face value senior debt 1 4,060.9 4,867.6 paid amount for fiscal 2004.The company's net interest expense
..............................................................1.......................
Subordinated Debt I was reduced by$27.5 million in fiscal 2005 due to the net impact
9.75%subordinated debt due March 2021 400.0 400.0 of previously closed interest rate swap agreements,as compared
7.4%subordinated debt,repaid in fiscal 2005 I - 300.0 to$76.1 million in fiscal 2004.
7375%subordinated debt,repaid infiscal 2005 - 50.0 The carrying amount of long-term debt(including current
installments)was$4.5 billion and$5.7 billion as of May 29,2005
.
Total face. .value subord. . inated debt 4000 750.0 and May 30,2004,respectively.Based on current market rates
...... ......
Total debt face value 4460.9 5,617.6 provided primarily by outside investment bankers,the fair value
Unamortized discounts/premiums 19.1) (10.3) of this debt at May 29,2005,and May 30,2004 was estimated at
Hedged debt adjustment to fair value 14.6 55.8 $5.2 billion and$6.2 billion,respectively.
Less current portion !" "" " (117.3) (382.4) During the third quarter of fiscal 2005,the company retired
• ' . '•'•••'••••9 """ " "
..... ' .•..... ' ... . .....
i ........ $600 million of 7.5%senior debt that was due September 2005.
Total long-term debt 1 $4,349.1 $5,280.7 This early retirement of debt resulted in a pre-tax lass of$22 mil-
lion, which is included in selling, general and administrative
expenses.Also in the third quarter of fiscal 2005,the company
redeemed the preferred securities of ConAgra Capital, L.C.,an
6�
Application for Financial Assistance
Section A
Attachment
Notes to Consolidated Financial Statements (continued)
indirectly controlled subsidiary of the company, held by third For financial reporting purposes,the EEF was consolidated
parties in the amount of$175 million. Due to the adoption of with ConAgra Foods.The fair value of the shares held by the EEF
FIN 46R,ConAgra Capital,L.C.was deconsolidated,and therefore was shown as a reduction to common stockholders' equity in
the loan between the company and ConAgra Capital,L.C.was the company's consolidated balance sheets.All dividends and
reflected in the company's consolidated balance sheet as interest transactions between the EEF and ConAgra Foods were
$221 million of long-term debt and the amount of the company's eliminated. Differences between cost and fair value of shares
investment in ConAgra Capital,L.C.of$46 million was reflected held and/or released were included in'consolidated additional'
as other assets as of May 30,2004. paid-in capital.
In addition to these early retirements of debt,the company During fiscal 2005, all remaining shares held by the EEF
made scheduled principal payments during fiscal 2005,reducing were issued,and the EEF was terminated.At May 30,2004,the
long-term debt by$385 million. EEF held 1.1 million shares at a cost per share of$14.55 and a fair
value per share of$28.12.
ii. Other Noncurrent Liabilities
Other noncurrent liabilities consist of: 14. Stock Plan.
Stock option plans approved by the stockholders provide for
zoos
2Uoq granting of options to employees for purchase of common stock
Legal and environmental liabilities primarily at prices equal to fair value at the time of grant.Options become
associated with the company's acquisition exercisable under various vesting schedules(typically three to
of Beatrice Company(see Note 17) $ 111.3 5 132.2
Postretirement health care and pensions 578.9
five years)and generally expire 10 years after the date of grant.
615.8 �
A summary of the outstanding and exercisable stock
Deferred taxes 477.8 377.5
options during the three years ended May 29,2005 is presented
Liabilities of divested cattle feeding operations I
isee Note 2) - i 34.8 below:
Other � --�
i
711 t 97.1 (�h;ursinmi{liunai zoos i 2004 2003
' 1,2$2.1 12205 i Wucnrcn ', wuGtruu WCN:urcn
AWMGE A'-LAVENGE
Less current portion I (875) (77.4) xeRGUE utrc,L Ncau
..............................................................�........................... PIIARES 1`RICE 15f t.ARr I•Rla:f ci IARl:� PRlfr
$1,194.6 S 1,143.1 ...................................).........................................
1- Outstanding at I
beginning of year : 28.8 $23.98 135.2 $23.76 31.9 $22.97
12. Capital Stock Granted 3.8 S27.43 i 3.7 S21.90 7.5 $25.58
The company has authorized shares of preferred stock as follows: Exercised 1511 $21.94 15.81 $zO.aJ 12.31 5 17.71
Forfeited/Expired I (3.2) S 26.10 (4.3) S 25.19 (1.9) S24.82
Class B-$50 par value;150,000 shares ..................
........
F......................).........................................
Class C-$100 par value;250,000 shares Outstanding at
end of year 24.2 $24.71 1 28.8 $23.98 35.2 $23.76
Class D-without par value;1,100,000 shares
Options exercisable
Class E-without par value;16,550,000 shares at end of year 18.1 $24.73 18.9 $24.46 21.1 $23.83
There were no preferred shares issued or outstanding as The following table summarizes information about stock
a of May 29,2005. options outstanding as of May 29,2005:
On December 4, 2003, the company announced a share
repurchase program of up to$1 billion.During fiscal 2005 and (Siw_in millions) rnnN.nu:+rANnca: ornm'c rsegclugn".
fiscal 2004,the company repurchased approximately 6.8 million
...................:.........
...........................
................
...................
shares at a total cost of$181.4 million and 15.3 million shares at LPv:C WI;p:N,l:O wuciirL°
nrvnu:INc. .wr.Mq: Avr.RAaa.
a total cost of$418.6 million,respectively. P^.at:l. NUNNLx nNfRA:"I'Un: ItX[RlaiY NUMHI:P xLx,:lsl
Fa"FRt:,al PXI�F'.a Ut 1"ANniM1a In, I t>F Nf la ql!
13. Employee Equity Funs{ $ 4.87-520.75 1.9 4.2 $19.63 1.9 $19.63
In fiscal 1993,the company established a$700 million Employee $20.76-$22.00 7.6 6.6 $21.60 5.2 $21.64
Equity Fund ("EEF'), a grantor trust,to pre-fund future stock- $22.01-$25.36 4.7 5.0 $24.40 4.0 $24.27
related obligations of the company's compensation and benefit $25.37-$28.31 8.1 7.2 $26.98 5.1 $26.95
plans. The EEF supported employee plans that used ConAgra $28.32-$36.81 1.9 2.8 533.28 1.9 $33.37
...........................................................................................
Foods common stock. $ 4.87-$36.81 24.2 6.0 $24.71 18.1 $24.73
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IOWA
Section B — CEBA
�fiIchanging-
1. Which program component is the Business applying for?
❑ Small Business Gap Financing
® New Business Opportunity
❑ New Product Development
® Modernization Component
2. Funding Information:
Total Amount Requested: $150,000
Loan Amount: $
Forgivable Loan Amount: $150,000
See Chapter 53, Section 261 in the CEBA Administrafire Rules for maximum funding amounts. The CEBA program is
not designed to provide 100%funding for any project and limits assistance based on the type of project submitted.
3. Security:
® Corporate Guaranty ❑ Surety Bonds
❑ UCC Financing Statement ❑ Mortgage on Real Estate
❑ Irrevocable Letter of Credit ❑ Escrow Account
❑ Personal Guarantee ❑ Other:
All awards secured by Personal Guarantees will require a current financial statement from each of the personal
guarantors, which must be attached to the application.
4. Does the business certify that at least 10% of the positions to be created will be made available to qualified Promise
Job Participants? ® Yes ❑ No
5. Are underground tanks(whether or not in current use)for the storage of petroleum products, agricultural or other
chemicals,waste oil or other liquid waste or any other inflammable,corrosive,reactive or explosive liquid or gas
located on the project site?
❑ Yes ® No If yes, please explain:
Will the Business be storing above-ground,on or about the project site, in tanks or otherwise, any liquid or gas(as
described above)or any inflammable,corrosive, reactive or explosive solid,for any length of time or any purpose?
❑ Yes ® No If yes, please specify:
Will the Business be treating,transporting or disposing of any liquid,gas,or solid(described above)either on or about
the project site or at a landfill or other treatment facility or upon any public street or highway,or on any waterway or
body of water, or in any aircraft?
❑ Yes ® No
If yes, please specify the substance and what the Business will be doing with it.
Section B-CEBA 2/4/2005
6. Does the Business generate solid or hazardous waste? ❑ Yes ® No
If yes, please describe and provide a copy of the Business'solid and hazardous waste reduction plans.
Attachments
Please attach the following documents:
B3 Community resolution authorizing the submission of the application
Section B-CEBA M005 2
IOWA
Section D — High Quality
k
I changing- Job Creation Program
1. The Business must meet at least 4 of the following required elements to be eligible for the High Quality Job Creation
Program. Please indicate which 4 required elements the business meets. (If the business is a start-up, please indicate
which 4 required elements the business will meet when its operation commences.)
® The business shall offer a pension or profit sharing plan to all full-time employees. For purposes of this
requirement, a retirement program offered by the business, such as a 401(k)plan, and to which the business
makes a monetary contribution shall be considered the equivalent of a pension plan.
® The business shall produce or manufacture high value-added goods or services or be engaged in one of the
following industries*: Value added a ricultural Products.
® The business shall provide and pay at least eighty percent of the cost of a standard medical and dental
insurance plan for all full-time employees working at the facility in which the new qualifying investment occurs.
For purposes of this requirement, single or employee-only medical and dental coverage will be what the
department considers in determining if the business meets this required element.
❑ The business shall make child care services available to its employees. The business shall satisfy this
required element if it provides child care services on-site at the facility in which the project will occur or if it
subsidizes 50%or more of off-site child care service costs incurred by an employee.
❑ The business shall invest annually no less than one percent of pretax profits, from the facility located to Iowa
or expanded or modernized under the program, in research and development in Iowa. The business must be
able to demonstrate, using generally accepted accounting principles, the facility's history of pretax profits or a
reasonable expectation of pretax profits from the facility in order to utilize this element.
❑ The business shall invest annually no less than one percent of pretax profits, from the facility located to Iowa
or expanded or modernized under the program, in worker training and skills enhancement. The business
must be able to demonstrate, using generally accepted accounting principles, the facility's history of pretax
profits or a reasonable expectation of pretax profits from the facility in order to utilize this element.
® The business shall have an active productivity and safety improvement program(s). The programs) will
involve both management and workers and have benchmarks for gauging compliance.
❑ The business shall purchase and occupy an existing facility that includes at least one vacant building which is
at least 20,000 square feet.
* State's targeted industries include: value-added agricultural products, insurance and financial services, plastics,
metals, printing paper or packaging products, drugs and pharmaceuticals, software development, instruments and
measuring devices and medical instruments, recycling and waste management, telecommunications and trucking and
warehousing.
Attachments
Please attach the following documents:
For projects of$10 million or more, include the following:
D1 Resolution by the sponsoring County Board of Supervisors/City Council approving this application
The resolution will be forwarded as soon as possible following Waterloo City Council meeting.
For projects of$10 million ormore and when a local value-added property tax exemption is being offered include the following:
D2 Legal description of the project site. Include the size, in acres.
Section D—HQJC 6/24/2005
D3 Detailed map(no larger than 8"x14")showing the boundaries of the project site.
Section D—HQJC 6/24/2005 2
PLAT
PART OF
SW1 /4 SEC-710N
ILLY OF WA QI 00ai e��r
_ HAWK CO IN'ry IOWA
N0RTM
saa��; �• ® aaa' N>i W'E
I
1,36'
.I 60' EASEMENT TO i _v
I QTY OF WATERLOO
i I
i i rr�
i r
.;
37.5 ACRES MARE OR LESS i+ a EownRLroL)0
! (SUBJECT TO FINAL SURVEY) r'
�0
Ii
I
I
m
STATE OF
I IOWA ;
dS I J 515-402 &
N I 1t2-607 I aNr °FeEaNNwa 1,
Z
a
NCATNERLY RIGHT Of WAY LINE
OiICA00 CENTRAL AND PAOFIC"LROA°%
4P
LD, 548-697
f j 80 EASEMENT TO �+
t I I GTY OF WATERLOO
AI9_LT NE HIQ —``
H1R�AY
7sw_M1'4 LINE SEC. 4-89-13
k S,,AIRUNE NIGNWAY 7
SE CORNER SW/4 sY1/4 51/4 CORNER
StC. 4--88-13
I
DESCRIP11ON
j THAT PART OF THE SOUTHWEST QUARTER (SW1/4) OF SECTION FOUR (4),
TOWNSHIP EIGHTY—NINE NORTH (T89N), RANGE THIRTEEN WEST (R13W) OF
THE FIFTH PRINCIPAL MERIDIAN, CITY OF WATERLOO, BLACK HAWK COUNTY,
IOWA, DESCRIBED AS FOLLOWS:
BEGINNING AT A POINT WHICH IS IN THE NORTHERLY RIGHT OF WAY LINE
OF THE CHICAGO CENTRAL AND PACIFIC RAILROAD AND FIVE HUNDRED SIXTY
(560) FEET NORMALLY DISTANT EASTERLY FROM THE CENTERLINE OF AIRPORT
BOULEVARD WHICH IS THE ACCESS ROAD TO THE WATERLOO MUNICIPAL
AIRPORT, SAID ACCESS ROAD BEING DESCRIBED 1N L.D. 548 PAGE 697, IN
THE BLACK HAWK COUNTY RECORDER'S OFFICE; THENCE N00'00'E ONE
THOUSAND THREE HUNDRED (1,300) FEET PARALLEL WITH SAID AIRPORT
j BOULEVARD; THENCE N90.00E ONE THOUSAND THREE HUNDRED SIX (1,306)
FEET; THENCE 500'00'E THREE HUNDRED TEN (310) FEET; THENCE S15'00'W
TO A POINT IN THE NORTHERLY RIGHT OF WAY LINE OF THE CHICAGO CENTRAL
AND PACIFIC RAILROAD, THENCE WESTERLY ALONG SAID NORTHERLY RIGHT OF
WAY LINE TO THE POINT OF BEGINNING_
SUBJECT TO FINAL SURVEY