Business And Geographic Segment Information

6 Months Ended

Jan. 29, 2017

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; Well Yes! soups; 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 segment 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				Six Months Ended
	January 29, 2017		January 31, 2016		January 29, 2017		January 31, 2016
Net sales
Americas Simple Meals and Beverages	$	1,231	$	1,237	$	2,528	$	2,539
Global Biscuits and Snacks	680		682		1,351		1,334
Campbell Fresh	260		282		494		531
Total	$	2,171	$	2,201	$	4,373	$	4,404

	Three Months Ended						Six Months Ended
	January 29, 2017			January 31, 2016			January 29, 2017			January 31, 2016
Earnings before interest and taxes
Americas Simple Meals and Beverages	$	313		$	290		$	696		$	653
Global Biscuits and Snacks	135			141			247			255
Campbell Fresh	(3		)	21			(2		)	39
Corporate(1)	(241		)	(29		)	(279		)	(188		)
Restructuring charges(2)	1			(9		)	—			(30		)
Total	$	205		$	414		$	662		$	729

⁽¹⁾  Represents unallocated items. Pension and postretirement benefit mark-to-market adjustments are included in Corporate. Gains were $7 in the three-month period ended January 31, 2016, and losses were $20 and $121 in the six-month periods ended January 29, 2017, and January 31, 2016, respectively. Costs related to the implementation of our new organizational structure and cost savings initiatives were $7 in the three-month period ended January 31, 2016, and $11 and $22 in the six-month periods ended January 29, 2017, and January 31, 2016, respectively. Impairment charges of $212 on the intangible assets of the Bolthouse Farms carrot and carrot ingredients reporting unit and the Garden Fresh Gourmet reporting unit were also included in the three- and six-month periods ended in January 29, 2017. See Note 4 for additional information.

⁽²⁾  See Note 6 for additional information.

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

	Three Months Ended				Six Months Ended
	January 29, 2017		January 31, 2016		January 29, 2017		January 31, 2016
Net sales
Soup	$	831	$	821	$	1,694	$	1,678
Baked snacks	661		664		1,314		1,302
Other simple meals	436		447		865		876
Beverages	243		269		500		548
Total	$	2,171	$	2,201	$	4,373	$	4,404

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.