Business And Geographic Segment Information

6 Months Ended

Feb. 01, 2015

Segment Reporting [Abstract]

Business and Geographic Segment Information

Business and Geographic Segment Information

We manage operations through 10 operating segments based on product type and geographic location and have 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 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.

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.

We evaluate 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				Six Months Ended
	February 1, 2015		January 26, 2014		February 1, 2015		January 26, 2014
Net sales
U.S. Simple Meals	$	867	$	894	$	1,795	$	1,754
Global Baking and Snacking	640		639		1,267		1,248
International Simple Meals and Beverages	194		213		383		406
U.S. Beverages	169		176		337		349
Bolthouse and Foodservice	364		359		707		689
Total	$	2,234	$	2,281	$	4,489	$	4,446

	Three Months Ended						Six Months Ended
	February 1, 2015			January 26, 2014			February 1, 2015			January 26, 2014
Earnings before interest and taxes
U.S. Simple Meals	$	170		$	214		$	412		$	425
Global Baking and Snacking	107			88			197			166
International Simple Meals and Beverages	26			38			42			58
U.S. Beverages	20			31			46			55
Bolthouse and Foodservice	26			36			48			65
Corporate(1)	(37		)	(33		)	(65		)	(69		)
Restructuring charges(2)	—			(13		)	—			(34		)
Total	$	312		$	361		$	680		$	666

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⁽¹⁾  Represents unallocated corporate expenses. Restructuring-related costs of $2 and a loss of $9 on foreign exchange forward contracts related to the sale of the European simple meals business were included in the six-month period ended January 26, 2014.

⁽²⁾  See Note 8 for additional information.

Our global net sales based on product categories are as follows:

	Three Months Ended				Six Months Ended
	February 1, 2015		January 26, 2014		February 1, 2015		January 26, 2014
Net sales
Simple Meals	$	1,290	$	1,329	$	2,601	$	2,563
Baked Snacks	669		670		1,332		1,315
Beverages	275		282		556		568
Total	$	2,234	$	2,281	$	4,489	$	4,446

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