Business And Geographic Segment Information

9 Months Ended

Apr. 27, 2014

Segment Reporting [Abstract]

Business and Geographic Segment Information

Business and Geographic Segment Information

The company manages operations through 10 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 includes the following products: Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks; Prego pasta sauces; Pace Mexican sauces; Campbell’s gravies, pasta, beans and dinner sauces; Swanson canned poultry; and as of June 13, 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; Arnott’s biscuits in Australia and Asia Pacific; and as of August 8, 2013, Kelsencookies globally.

The International Simple Meals and Beverages segment aggregates the following operating segments: the retail business in Canada and the simple meals and beverages business in Asia Pacific, Latin America, and China. See also Note 4 for information on the 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 periods 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.

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.

	Three Months Ended				Nine Months Ended
	April 27, 2014		April 28, 2013		April 27, 2014		April 28, 2013
Net sales
U.S. Simple Meals	$	672	$	627	$	2,426	$	2,356
Global Baking and Snacking	564		568		1,812		1,703
International Simple Meals and Beverages	186		225		592		682
U.S. Beverages	190		198		539		569
Bolthouse and Foodservice	358		344		1,047		1,019
Total	$	1,970	$	1,962	$	6,416	$	6,329

	Three Months Ended						Nine Months Ended
	April 27, 2014			April 28, 2013			April 27, 2014			April 28, 2013
Earnings before interest and taxes
U.S. Simple Meals	$	175		$	156		$	600		$	621
Global Baking and Snacking	68			73			234			232
International Simple Meals and Beverages	27			28			85			94
U.S. Beverages	29			33			84			100
Bolthouse and Foodservice	23			27			88			91
Corporate(1)	(29		)	(59		)	(98		)	(205		)
Restructuring charges(2)	(1		)	(1		)	(35		)	(31		)
Total	$	292		$	257		$	958		$	902

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⁽¹⁾  Represents unallocated corporate expenses. A pension settlement charge of $18 associated with a U.S. pension plan was included in the three- and nine-month periods ended April 27, 2014. The settlement resulted from the level of lump sum distributions from the plan's assets in 2014, primarily due to the closure of the facility in Sacramento, California. Restructuring-related costs of $2 were included in the nine-month period ended April 27, 2014. In addition, a loss of $9 on foreign exchange forward contracts related to the sale of the European simple meals business was included in the nine-month period ended April 27, 2014. Restructuring-related costs of $20 and $81 were included in unallocated corporate expenses for the three- and nine-month periods ended April 28, 2013, respectively. Also, acquisition related costs of $10 were included in the nine-month period ended April 28, 2013.

⁽²⁾  See Note 8 for additional information.

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

	Three Months Ended				Nine Months Ended
	April 27, 2014		April 28, 2013		April 27, 2014		April 28, 2013
Net sales
Simple Meals	$	1,063	$	1,040	$	3,626	$	3,611
Baked Snacks	597		601		1,912		1,805
Beverages	310		321		878		913
Total	$	1,970	$	1,962	$	6,416	$	6,329

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.