Segments (Tables)

6 Months Ended

Jun. 28, 2015

Schedule of Segment Reporting Information, by Segment

The following tables present information about the Company’s reportable segments:



	Second Quarter Ended
	June 28, 2015			June 29, 2014
	(In millions)
Net external sales:
North America	$	1,021		$	966
Europe	620			766
Asia/Pacific	495			583
Latin America	291			200
RIMEA	189			214
Consolidated Totals	$	2,616		$	2,729
Segment Adjusted EBITDA:
North America	$	324		$	293
Europe	225			236
Asia/Pacific	96			108
Latin America	66			30
RIMEA	43			45
Non-Operating	(15		)	(19		)
Adjusted EBITDA	739			693
Restructuring:
Severance related costs^(a)	8			30
Other restructuring costs^(a)	2			25
Asset write-offs^(a)	25			3
Other special items^(b)	27			37
Venezuela inventory write-down	49			—
2015 Merger related costs^(c)	34			—
Depreciation, including accelerated depreciation for restructuring	66			137
Amortization	23			26
Stock based compensation	3			1
Interest expense, net^(d)	384			161
Other expense, net^(e)	255			42
Impairment loss on indefinite-lived trademarks^(f)	58			62
(Loss)/income before income taxes	$	(195	)	$	169



	Six Months Ended
	June 28, 2015			June 29, 2014
	(In millions)
Net external sales:
North America	$	2,010		$	2,135
Europe	1,246			1,529
Asia/Pacific	940			1,075
Latin America	555			399
RIMEA	343			391
Consolidated Totals	$	5,094		$	5,529
Segment Adjusted EBITDA:
North America	$	610		$	655
Europe	440			452
Asia/Pacific	181			180
Latin America	119			62
RIMEA	74			74
Non-Operating	(34		)	(41		)
Adjusted EBITDA	1,390			1,382
Restructuring:
Severance related costs^(a)	13			84
Other restructuring costs^(a)	12			38
Asset write-offs^(a)	27			10
Other special items^(b)	52			45
Venezuela inventory write-down	49			—
2015 Merger related costs^(c)	41			—
Depreciation, including accelerated depreciation for restructuring	131			284
Amortization	48			50
Stock based compensation	6			2
Interest expense, net^(d)	575			325
Other expense, net^(e)	226			64
Impairment loss on indefinite-lived trademarks^(f)	58			62
Income before income taxes	$	152		$	418

_____________________________________


(a)	See Note 5 for further details on restructuring and productivity initiatives.

(b)

Includes project implementation costs and charges that management believes do not directly reflect our core operations. The six months ended June 28, 2015 includes pension related costs, lease impairment charges, severance charges, consulting and advisory charges, and contract termination fees. The six months ended June 29, 2014 includes incremental costs primarily for additional warehousing and other logistics costs incurred related to the acceleration of sales ahead of the U.S. SAP go-live, which was launched in the second quarter of 2014, along with equipment relocation charges and consulting and advisory charges.


(c)	Represents legal and professional fees associated with the 2015 Merger. See Note 2.


(d)	Includes a release of $227 million from other accumulated comprehensive income to interest expense which occurred during the second quarter ended June 28, 2015. This release relates to the early termination of certain interest rate swaps contracts. See Note 10.


(e)	Includes a $234 million foreign exchange devaluation loss in Venezuela which was recorded to other expense, net during the second quarter ended June 28, 2015. See Note 17.


(f)	See Note 6 for further details on the impairment loss on indefinite-lived trademarks.

Revenue from External Customers by Products and Services

The Company’s revenues are generated via the sale of products in the following categories:



	Second Quarter Ended
	June 28, 2015		June 29, 2014
	(In millions)
Ketchup and Sauces	$	1,432	$	1,387
Meals and Snacks	778		836
Infant/Nutrition	264		311
Other	142		195
Total	$	2,616	$	2,729



	Six Months Ended
	June 28, 2015		June 29, 2014
	(In millions)
Ketchup and Sauces	$	2,662	$	2,742
Meals and Snacks	1,627		1,850
Infant/Nutrition	517		586
Other	288		351
Total	$	5,094	$	5,529