A. 2658

B. 2633

C. 2634

D. 2637

Using the information given below, calculate normalized EBITDA. Normalized EBIT has already been calculated as 2,155.0. Assume the calculation of normalized EBIT includes typical normalizing adjustments such as add backs for impairments, restructuring and other non recurring items. Operating activities Net income 633 Adjustments to reconcile net income to operating cash flows: Depreciation and amortization 503 Postretirement benefit plan (income) expense 803 Deferred income taxes (254) Other (88) Postretirement benefit plan contributions (53) Changes in operating assets and liabilities, net of acquisitions: Trade receivables Inventories Accounts payable Accrued income taxes Accrued interest expense Accrued and prepaid advertising, promotion and trade allowances Accrued salaries and wages All other current assets and liabilities Net cash provided by (used in) operating activities Operating trends Net sales Comparable net sales (a) Gross profit as a % of net sales 34.7% Comparable gross profit as a % of net sales (a) 38.9% Depreciation 494 Amortization 9 Advertising expense 1,094 199 Research and development expense Operating profit 1,024 Depreciation and amortization (a) U.S. Morning Foods 136 U.S. Snacks 166 U.S. Specialty 10 North America Other 32 Europe 92 Latin America 32 Asia Pacific 31 Total Reportable Segments 499 4 Corporate Consolidated 503 (a) Includes asset impairment charges as discussed in Note 12. Note 12 During 2014, long-lived assets of $24 million, related to a manufacturing facility in the Company's U.S. Snacks segment, were written down to an estimated fair value of $3 million due to Project K activities. The Company's calculation of the fair value of long-lived assets is based on Level 3 inputs, including market comparables, market trends and the condition of the assets. 131 (30) 96 87 (2) (21) (7) (5) $ 1,793 $14,580 14,386