Business And Geographic Segment Information

3 Months Ended

Oct. 30, 2016

Segment Reporting [Abstract]

Business and Geographic Segment Information

Business and Geographic Segment Information

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; 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 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.

	Three Months Ended
	October 30, 2016		November 1, 2015
Net sales
Americas Simple Meals and Beverages	$	1,297	$	1,302
Global Biscuits and Snacks	671		652
Campbell Fresh	234		249
Total	$	2,202	$	2,203

	Three Months Ended
	October 30, 2016			November 1, 2015
Earnings before interest and taxes
Americas Simple Meals and Beverages	$	383		$	363
Global Biscuits and Snacks	112			114
Campbell Fresh	1			18
Corporate(1)	(38		)	(159		)
Restructuring charges(2)	(1		)	(21		)
Total	$	457		$	315

⁽¹⁾  Represents unallocated items. Pension and postretirement benefit mark-to-market adjustments are included in Corporate. Losses were $20 and $128 in the three-month periods ended October 30, 2016, and November 1, 2015, respectively. Costs of $8 and $15 related to the implementation of our new organizational structure and cost savings initiatives were included in the three-month periods ended October 30, 2016, and November 1, 2015, respectively.

⁽²⁾  See Note 6 for additional information.

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

	Three Months Ended
	October 30, 2016		November 1, 2015
Net sales
Soup	$	863	$	864
Baked snacks	653		634
Other simple meals	429		429
Beverages	257		276
Total	$	2,202	$	2,203

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.