Business And Geographic Segment Information

9 Months Ended

May. 01, 2016

Segment Reporting [Abstract]

Business and Geographic Segment Information

Business and Geographic Segment Information

Through the fourth quarter of 2015, we reported the results of our operations in the following reportable segments: U.S. Simple Meals; Global Baking and Snacking; International Simple Meals and Beverages; U.S. Beverages; and Bolthouse and Foodservice. As of the beginning of 2016, we are managing our businesses in three divisions focused mainly on product categories. The new divisions, which represent our operating and reportable segments, are as follows:

• Americas Simple Meals and Beverages segment includes the retail and food service channel businesses in the U.S., Canada and Latin America. The 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; Plum food and snacks; V8 juices and beverages; and Campbell’s tomato juice.

• Global Biscuits and Snacks segment includes Pepperidge Farm cookies, crackers, bakery and frozen products in U.S. retail; Arnott’s biscuits in Australia and Asia Pacific; and Kelsen cookies globally. The segment also includes the simple meals and shelf-stable beverages business in Australia and Asia Pacific.

• Campbell Fresh includes Bolthouse Farms fresh carrots, carrot ingredients, refrigerated beverages and refrigerated salad dressings; Garden Fresh Gourmet salsa, hummus, dips and tortilla chips, which was acquired in June 2015; and the U.S. refrigerated soup business.

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 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 2016, we elected to change our method of accounting for the recognition of actuarial gains and losses for defined benefit pension and postretirement plans and the calculation of expected return on pension plan assets as discussed in Note 1. In 2016, we also modified our method of allocating pension and postretirement benefit costs to segments. Through 2015, we included all components of benefit expense in measuring segment performance. In 2016, only service cost is allocated to segments. All other components of expense, including interest cost, expected return on assets, and recognized actuarial gains and losses, are reflected in Corporate and not included in segment operating results. Asset information by segment is not discretely maintained for internal reporting or used in evaluating performance.

Segment results have been adjusted retrospectively to reflect these revisions.

	Three Months Ended				Nine Months Ended
	May 1, 2016		May 3, 2015		May 1, 2016		May 3, 2015
Net sales
Americas Simple Meals and Beverages	$	999	$	1,030	$	3,538	$	3,641
Global Biscuits and Snacks	608		623		1,942		2,014
Campbell Fresh	263		247		794		734
Total	$	1,870	$	1,900	$	6,274	$	6,389

	Three Months Ended						Nine Months Ended
	May 1, 2016			May 3, 2015			May 1, 2016			May 3, 2015
Earnings before interest and taxes
Americas Simple Meals and Beverages	$	225		$	223		$	878		$	765
Global Biscuits and Snacks	86			93			341			306
Campbell Fresh	13			18			52			40
Corporate(1)	(54		)	(40		)	(242		)	(91		)
Restructuring charges(2)	(2		)	(9		)	(32		)	(9		)
Total	$	268		$	285		$	997		$	1,011

_______________________________________

⁽¹⁾  Represents unallocated items. Costs of $54 and $175 related to pension mark-to-market adjustments (see Note 1 for additional information) and costs of $13 and $35 related to the implementation of our new organizational structure and cost savings initiatives (see Note 7 for additional information) were included in the three- and nine-month periods ended May 1, 2016, respectively. A gain of $25 from a settlement of a claim related to the Kelsen acquisition was also included in the three- and nine-month periods ended May 1, 2016. Costs of $26 related to pension and postretirement mark-to-market adjustments (see Note 1 for additional information) and costs of $9 related to the implementation of our new organizational structure and cost savings initiatives (see Note 7 for additional information) were included in the three- and nine-month periods ended May 3, 2015.

⁽²⁾  See Note 7 for additional information.

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

	Three Months Ended				Nine Months Ended
	May 1, 2016		May 3, 2015		May 1, 2016		May 3, 2015
Net sales
Soup	$	575	$	602	$	2,253	$	2,361
Baked snacks	584		587		1,886		1,919
Other simple meals	424		409		1,300		1,251
Beverages	287		302		835		858
Total	$	1,870	$	1,900	$	6,274	$	6,389

Soup includes various soup, broths and stock products. Baked snacks include cookies, crackers, biscuits and other baked products. Other simple meals include sauces, carrot products, refrigerated salad dressings, refrigerated salsa, hummus, dips and Plum foods and snacks.