Business And Geographic Segment Information

12 Months Ended

Jul. 29, 2012

Business And Geographic Segment Information [Abstract]

Business and Geographic Segment Information

Business and Geographic Segment Information

The company reports the results of operations in the following reportable segments: U.S. Simple Meals; Global Baking and Snacking; International Simple Meals and Beverages; U.S. Beverages; and North America Foodservice. The company has 11 operating segments based on product type and geographic location and has aggregated the operating segments into the appropriate reportable segment based on similar economic characteristics; products; production processes; types or classes of customers; distribution methods; and regulatory environment. The segments are discussed in greater detail below.

The U.S. Simple Meals segment aggregates the following operating segments: U.S. Soup and U.S. Sauces. The U.S. Soup retail business includes the following products: Campbell’s condensed and ready-to-serve soups; and Swanson broth and stocks. The U.S. Sauces retail business includes the following products: Prego pasta sauces; Pace Mexican sauces; Campbell’s canned gravies, pasta and beans; and Swanson canned poultry.

The Global Baking and Snacking segment aggregates the following operating segments: Pepperidge Farm cookies, crackers, bakery and frozen products in U.S. retail; and Arnott’s biscuits in Australia and Asia Pacific.

The International Simple Meals and Beverages segment aggregates the simple meals and beverages operating segments outside of the U.S., including Europe, the retail business in Canada, and the businesses in Asia Pacific, Latin America and China.

The U.S. Beverages segment represents the U.S. retail beverages business, including the following products: V8 juices and beverages; and Campbell’s tomato juice.

The North America Foodservice segment represents the distribution of products such as soup, specialty entrees, beverage products, other prepared foods and Pepperidge Farm products through various food service channels in the U.S. and Canada.

The company’s accounting policies for measuring segment assets and earnings before interest and taxes are substantially consistent with those described in Note 1. The company evaluates segment performance before interest, taxes and costs associated with restructuring activities. Beginning in 2012, unrealized gains and losses on commodity hedging activities are excluded from segment operating earnings and are recorded in Corporate expenses as these open positions represent hedges of future purchases. Upon closing of the contracts, the realized gain or loss is transferred to segment operating earnings, which allows the segments to reflect the economic effects of the hedge without exposure to quarterly volatility of unrealized gains and losses. In prior periods, unrealized gains and losses on commodity hedging activities were not material. Certain manufacturing, warehousing and distribution activities of the segments are integrated in order to maximize efficiency and productivity. As a result, asset information by segment is not discretely maintained for internal reporting or used in evaluating performance. Therefore, only geographic segment asset information is included in the disclosures.

The company's largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for approximately 17% of consolidated net sales in 2012 and 2011, and 18% in 2010. All of the company's segments sold products to Wal-Mart Stores, Inc. or its affiliates.

Business Segments

	2012		2011		2010
Net sales
U.S. Simple Meals	$	2,726	$	2,751	$	2,938
Global Baking and Snacking	2,193		2,156		1,975
International Simple Meals and Beverages	1,404		1,463		1,423
U.S. Beverages	774		759		762
North America Foodservice	610		590		578
Total	$	7,707	$	7,719	$	7,676

	2012			2011			2010
Earnings before interest and taxes
U.S. Simple Meals	$	658		$	657		$	737
Global Baking and Snacking	315			355			322
International Simple Meals and Beverages	153			185			161
U.S. Beverages	134			182			206
North America Foodservice	85			82			55
Corporate(1)	(123		)	(119		)	(121		)
Restructuring charges(2)	(10		)	(63		)	(12		)
Total	$	1,212		$	1,279		$	1,348

	2012		2011		2010
Depreciation and amortization
U.S. Simple Meals	$	88	$	87	$	86
Global Baking and Snacking	81		82		75
International Simple Meals and Beverages	37		42		35
U.S. Beverages	21		20		21
North America Foodservice	13		13		13
Corporate(3)	22		24		21
Total	$	262	$	268	$	251

	2012		2011		2010
Capital expenditures
U.S. Simple Meals and U.S. Beverages (4)	$	97	$	126	$	139
Global Baking and Snacking	126		73		81
International Simple Meals and Beverages	46		36		26
North America Foodservice	9		3		3
Corporate(3)	45		34		66
Total	$	323	$	272	$	315

_______________________________________

(1) Represents unallocated corporate expenses.

(2) See Note 6 for additional information.

(3) Represents primarily corporate offices.

(4) Capital expenditures are not maintained by segment.

The company’s global net sales based on product categories are as follows:

	2012		2011		2010
Net sales
Simple Meals	$	4,416	$	4,437	$	4,594
Baked Snacks	2,320		2,321		2,129
Beverages	971		961		953
Total	$	7,707	$	7,719	$	7,676

Simple Meals include condensed and ready-to-serve soups, broths and sauces. Baked Snacks include cookies, crackers, biscuits, and other baked products.

Geographic Area Information

Information about operations in different geographic areas is as follows:

	2012		2011		2010
Net sales
United States	$	5,359	$	5,309	$	5,436
Australia/Asia Pacific	1,136		1,138		978
Europe	562		596		601
Other countries	650		676		661
Total	$	7,707	$	7,719	$	7,676

	2012		2011		2010
Long-lived assets
United States	$	1,308	$	1,281	$	1,279
Australia/Asia Pacific	395		384		326
Europe	92		102		104
Other countries	102		109		105
Corporate(1)	230		227		237
Total	$	2,127	$	2,103	$	2,051

_______________________________________

(1) Represents primarily corporate offices.