Business And Geographic Segment Information

12 Months Ended

Jul. 28, 2013

Segment Reporting [Abstract]

Business and Geographic Segment Information

Business and Geographic Segment Information

The company manages operations through 13 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 reportable 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; Swanson canned poultry; and as of June 2013, Plum Organics food and snacks.

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 operating segments outside of the U.S., including the retail business in Canada and the businesses in Asia Pacific, Latin America and China. See also Note 4 for information on the potential sale of the simple meals business in Europe. This business was historically included in this segment. The results of operations of this business have been reflected as discontinued operations for the years presented. Prior periods were reclassified to conform to the current presentation.

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.

Bolthouse and Foodservice comprises the Bolthouse Farms carrot products operating segment, including fresh carrots, juice concentrate and fiber; the Bolthouse Farms super-premium refrigerated beverages and refrigerated salad dressings operating segment; and the North America Foodservice operating segment. The North America Foodservice operating segment represents the distribution of products such as soup, specialty entrées, beverage products, other prepared foods and Pepperidge Farm products through various food service channels in the U.S. and Canada. None of these operating segments meets the criteria for aggregation nor the thresholds for separate disclosure. As previously discussed, Bolthouse Farms was acquired in August 2012.

The company evaluates segment performance before interest, taxes and costs associated with restructuring activities. 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. 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 disclosure.

The company's largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for approximately 19% of consolidated net sales in 2013 and 2012 and 18% in 2011. All of the company's segments sold products to Wal-Mart Stores, Inc. or its affiliates.

Business Segments

	2013		2012		2011
Net sales
U.S. Simple Meals	$	2,849	$	2,726	$	2,751
Global Baking and Snacking	2,273		2,193		2,156
International Simple Meals and Beverages	869		872		887
U.S. Beverages	742		774		759
Bolthouse and Foodservice	1,319		610		590
Total	$	8,052	$	7,175	$	7,143

	2013			2012			2011
Earnings before interest and taxes
U.S. Simple Meals	$	731		$	658		$	657
Global Baking and Snacking	316			315			355
International Simple Meals and Beverages	108			106			128
U.S. Beverages	120			134			182
Bolthouse and Foodservice	116			85			82
Corporate(1)	(260		)	(136		)	(132		)
Restructuring charges(2)	(51		)	(7		)	(60		)
Total	$	1,080		$	1,155		$	1,212

	2013		2012		2011
Depreciation and amortization
U.S. Simple Meals	$	146	$	92	$	93
Global Baking and Snacking	83		83		84
International Simple Meals and Beverages	23		22		24
U.S. Beverages	39		22		22
Bolthouse and Foodservice	90		14		14
Corporate(3)	15		15		16
Discontinued Operations	11		14		15
Total	$	407	$	262	$	268

	2013		2012		2011
Capital expenditures
U.S. Simple Meals and U.S. Beverages(4)	$	82	$	97	$	126
Global Baking and Snacking	112		126		73
International Simple Meals and Beverages	19		32		25
Bolthouse and Foodservice	83		9		3
Corporate(3)	30		45		34
Discontinued Operations	$	10	$	14	$	11
Total	$	336	$	323	$	272

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⁽¹⁾  Represents unallocated corporate expenses. Restructuring-related costs of $91 and acquisition costs of $10 were included in unallocated corporate expenses for 2013. Acquisition costs of $5 were included in unallocated corporate expenses for 2012.

⁽²⁾  See Note 8 for additional information.

⁽³⁾  Represents primarily corporate offices.

⁽⁴⁾  Capital expenditures for U.S. Simple Meals and U.S. Beverages are not maintained by segment.

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

	2013		2012		2011
Net sales
Simple Meals	$	4,446	$	3,887	$	3,869
Baked Snacks	2,408		2,320		2,321
Beverages	1,198		968		953
Total	$	8,052	$	7,175	$	7,143

Simple Meals include condensed and ready-to-serve soups, broths, sauces, carrot products, refrigerated salad dressings and Plum foods and snacks for babies, toddlers and children. Baked Snacks include cookies, crackers, biscuits, and other baked products.

Geographic Area Information

Information about operations in different geographic areas is as follows:

	2013		2012		2011
Net sales
United States	$	6,195	$	5,359	$	5,309
Australia	801		819		842
Other countries	1,056		997		992
Total	$	8,052	$	7,175	$	7,143

	2013		2012		2011
Long-lived assets
United States	$	1,583	$	1,308	$	1,281
Australia	317		356		347
Other countries	139		233		248
Corporate(1)	221		230		227
Total	$	2,260	$	2,127	$	2,103

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⁽¹⁾  Represents primarily corporate offices.

See Note 4 for information on the European simple meals business.