Business And Geographic Segment Information

12 Months Ended

Aug. 03, 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 years presented.

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. Bolthouse Farms was acquired on August 6, 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 2014, 2013 and 2012. All of the company's reportable segments sold products to Wal-Mart Stores, Inc. or its affiliates.

	2014		2013		2012
Net sales
U.S. Simple Meals	$	2,944	$	2,849	$	2,726
Global Baking and Snacking	2,440		2,273		2,193
International Simple Meals and Beverages	780		869		872
U.S. Beverages	723		742		774
Bolthouse and Foodservice	1,381		1,319		610
Total	$	8,268	$	8,052	$	7,175

	2014			2013			2012
Earnings before interest and taxes
U.S. Simple Meals	$	714		$	731		$	658
Global Baking and Snacking	332			316			315
International Simple Meals and Beverages	106			108			106
U.S. Beverages	127			120			134
Bolthouse and Foodservice	117			116			85
Corporate(1)	(149		)	(260		)	(136		)
Restructuring charges(2)	(55		)	(51		)	(7		)
Total	$	1,192		$	1,080		$	1,155

	2014		2013		2012
Depreciation and amortization
U.S. Simple Meals	$	77	$	146	$	92
Global Baking and Snacking	93		83		83
International Simple Meals and Beverages	19		23		22
U.S. Beverages	21		39		22
Bolthouse and Foodservice	80		90		14
Corporate(3)	15		15		15
Discontinued Operations	—		11		14
Total	$	305	$	407	$	262

	2014		2013		2012
Capital expenditures
U.S. Simple Meals and U.S. Beverages(4)	$	115	$	82	$	97
Global Baking and Snacking	120		112		126
International Simple Meals and Beverages	26		19		32
Bolthouse and Foodservice	57		83		9
Corporate(3)	28		30		45
Discontinued Operations	1		10		14
Total	$	347	$	336	$	323

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⁽¹⁾  Represents unallocated corporate expenses. Pension settlement charges of $22 associated with a U.S. pension plan were included in 2014. The settlements 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. In addition, a loss of $9 on foreign exchange forward contracts related to the sale of the European simple meals business and restructuring-related costs of $3 were included in 2014. Restructuring-related costs of $91 and acquisition costs of $10 were included in 2013. Acquisition costs of $5 were included in 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:

	2014		2013		2012
Net sales
Simple Meals	$	4,511	$	4,446	$	3,887
Baked Snacks	2,571		2,408		2,320
Beverages	1,186		1,198		968
Total	$	8,268	$	8,052	$	7,175

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:

	2014		2013		2012
Net sales
United States	$	6,432	$	6,195	$	5,359
Australia	709		801		819
Other countries	1,127		1,056		997
Total	$	8,268	$	8,052	$	7,175

	2014		2013		2012
Long-lived assets
United States	$	1,844	$	1,804	$	1,538
Australia	306		317		356
Other countries	168		139		233
Total	$	2,318	$	2,260	$	2,127