Business And Geographic Segment Information

12 Months Ended

Jul. 31, 2016

Segment Reporting [Abstract]

Business and Geographic Segment Information

Business and Geographic Segment Information

Beginning in 2016, we manage our businesses in three segments focused mainly on product categories. The segments are:

• Americas Simple Meals and Beverages segment includes the retail and food service 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; and

• 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. Only the service cost component of pension and postretirement expense is allocated to segments. All other components of expense, including interest cost, expected return on assets, amortization of prior service credits and recognized actuarial gains and losses will be 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. Therefore, only geographic segment asset information is included in the disclosure.

Our largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for approximately 20% of consolidated net sales in 2016 and 2015, and 19% in 2014. All of our reportable segments sold products to Wal-Mart Stores, Inc. or its affiliates.

	2016		2015		2014
Net sales
Americas Simple Meals and Beverages	$	4,380	$	4,483	$	4,588
Global Biscuits and Snacks	2,564		2,631		2,725
Campbell Fresh	1,017		968		955
Total	$	7,961	$	8,082	$	8,268

	2016			2015			2014
Earnings before interest and taxes
Americas Simple Meals and Beverages	$	1,069		$	948		$	1,030
Global Biscuits and Snacks	422			383			366
Campbell Fresh	60			61			68
Corporate(1)	(560		)	(236		)	(142		)
Restructuring charges(2)	(31		)	(102		)	(55		)
Total	$	960		$	1,054		$	1,267

	2016		2015		2014
Depreciation and amortization
Americas Simple Meals and Beverages	$	117	$	123	$	120
Global Biscuits and Snacks	96		94		101
Campbell Fresh	77		70		69
Corporate(3)	18		16		15
Total	$	308	$	303	$	305

	2016		2015		2014
Capital expenditures
Americas Simple Meals and Beverages	$	105	$	137	$	136
Global Biscuits and Snacks	122		137		127
Campbell Fresh	74		82		55
Corporate(3)	40		24		28
Discontinued Operations	—		—		1
Total	$	341	$	380	$	347

_______________________________________

⁽¹⁾  Represents unallocated items. Pension and postretirement benefit mark-to-market adjustments are included in Corporate. Losses were $313, $138 and $31 in 2016, 2015 and 2014, respectively. Costs of $47 and $22 related to the implementation of our new organizational structure and cost savings initiatives were included in 2016 and 2015, respectively. A gain of $25 from a settlement of a claim related to the Kelsen acquisition and an impairment charge of $141 on the intangible assets of the Bolthouse Farms carrot and carrot ingredients reporting unit were also included in 2016. 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. See Note 6 for information on the impairment charge.

⁽²⁾  See Note 8 for additional information.

⁽³⁾  Represents primarily corporate offices.

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

	2016		2015		2014
Net sales
Soup	$	2,690	$	2,798	$	2,891
Baked snacks	2,479		2,502		2,571
Other simple meals	1,702		1,648		1,620
Beverages	1,090		1,134		1,186
Total	$	7,961	$	8,082	$	8,268

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.

Geographic Area Information

Information about operations in different geographic areas is as follows:

	2016		2015		2014
Net sales
United States	$	6,437	$	6,400	$	6,432
Australia	590		646		709
Other countries	934		1,036		1,127
Total	$	7,961	$	8,082	$	8,268

	2016		2015		2014
Long-lived assets
United States	$	1,967	$	1,942	$	1,844
Australia	242		232		306
Other countries	198		173		168
Total	$	2,407	$	2,347	$	2,318