Segment Reporting (Notes)

12 Months Ended

Dec. 28, 2019

Management evaluates segment performance based on several factors, including net sales and Segment Adjusted EBITDA. Segment Adjusted EBITDA is defined as net income/(loss) from continuing operations before interest expense, other expense/(income), provision for/(benefit from) income taxes, and depreciation and amortization (excluding integration and restructuring expenses); in addition to these adjustments, we exclude, when they occur, the impacts of integration and restructuring expenses, deal costs, unrealized gains/(losses) on commodity hedges (the unrealized gains and losses are recorded in general corporate expenses until realized; once realized, the gains and losses are recorded in the applicable segment’s operating results), impairment losses, and equity award compensation expense (excluding integration and restructuring expenses). Segment Adjusted EBITDA is a tool that can assist management and investors in comparing our performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our underlying operations. Management uses Segment Adjusted EBITDA to evaluate segment performance and allocate resources.

Management does not use assets by segment to evaluate performance or allocate resources. Therefore, we do not disclose assets by segment.

Net sales by segment were (in millions):



	December 28, 2019		December 29, 2018		December 30, 2017
Net sales:
United States	$	17,756	$	18,122	$	18,230
Canada	1,882		2,173		2,177
EMEA	2,551		2,718		2,585
Rest of World	2,788		3,255		3,084
Total net sales	$	24,977	$	26,268	$	26,076

Segment Adjusted EBITDA was (in millions):



	December 28, 2019			December 29, 2018			December 30, 2017
Segment Adjusted EBITDA:
United States	$	4,809		$	5,218		$	5,873
Canada	487			608			636
EMEA	661			724			673
Rest of World	363			635			590
General corporate expenses	(256		)	(161		)	(108		)
Depreciation and amortization (excluding integration and restructuring expenses)	(985		)	(919		)	(907		)
Integration and restructuring expenses	(102		)	(297		)	(583		)
Deal costs	(19		)	(23		)	—
Unrealized gains/(losses) on commodity hedges	57			(21		)	(19		)
Impairment losses	(1,899		)	(15,936		)	(49		)
Equity award compensation expense (excluding integration and restructuring expenses)	(46		)	(33		)	(49		)
Operating income	3,070			(10,205		)	6,057
Interest expense	1,361			1,284			1,234
Other expense/(income)	(952		)	(168		)	(627		)
Income/(loss) before income taxes	$	2,661		$	(11,321	)	$	5,450

Total depreciation and amortization expense by segment was (in millions):



	December 28, 2019		December 29, 2018		December 30, 2017
Depreciation and amortization expense:
United States	$	609	$	626	$	658
Canada	35		39		48
EMEA	107		102		99
Rest of World	124		119		98
General corporate expenses	119		97		128
Total depreciation and amortization expense	$	994	$	983	$	1,031

Total capital expenditures by segment were (in millions):



	December 28, 2019		December 29, 2018		December 30, 2017
Capital expenditures:
United States	$	393	$	388	$	764
Canada	27		21		42
EMEA	134		124		127
Rest of World	149		236		184
General corporate expenses	65		57		77
Total capital expenditures	$	768	$	826	$	1,194

Net sales by product category were (in millions):



	December 28, 2019		December 29, 2018		December 30, 2017
Condiments and sauces	$	6,406	$	6,752	$	6,429
Cheese and dairy	4,890		5,287		5,409
Ambient foods	2,475		2,576		2,564
Meats and seafood	2,406		2,505		2,567
Frozen and chilled foods	2,371		2,548		2,578
Refreshment beverages	1,504		1,507		1,506
Coffee	1,271		1,438		1,422
Infant and nutrition	512		756		755
Desserts, toppings and baking	1,032		1,038		1,033
Nuts and salted snacks	966		967		970
Other	1,144		894		843
Total net sales	$	24,977	$	26,268	$	26,076

Concentration of Risk:

Our largest customer, Walmart Inc., represented approximately 21% of our net sales in 2019, 2018, and 2017. All of our segments have sales to Walmart Inc.

Geographic Financial Information:

We had significant sales in the United States, Canada, and the United Kingdom. Our net sales by geography were (in millions):



	December 28, 2019		December 29, 2018		December 30, 2017
Net sales:
United States	$	17,844	$	18,218	$	18,324
Canada	1,882		2,173		2,177
United Kingdom	1,007		1,071		1,018
Other	4,244		4,806		4,557
Total net sales	$	24,977	$	26,268	$	26,076

We had significant long-lived assets in the United States. Long-lived assets are comprised of property, plant and equipment, net of related accumulated depreciation. Our long-lived assets by geography were (in millions):



	December 28, 2019		December 29, 2018
Long-lived assets:
United States	$	5,004	$	5,103
Other	2,051		1,975
Total long-lived assets	$	7,055	$	7,078

At December 28, 2019 and December 29, 2018, long-lived assets by geography excluded amounts classified as held for sale. See Note 4, Acquisitions and Divestitures, for additional information.