Business And Geographic Segment Information

12 Months Ended

Jul. 30, 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; 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.

Beginning in 2018, the business in Latin America will be managed as part of the Global Biscuits and Snacks segment.

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. Therefore, only geographic segment asset information is provided.

Our largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for approximately 20% of consolidated net sales in 2017, 2016 and 2015. All of our reportable segments sold products to Wal-Mart Stores, Inc. or its affiliates.

	2017		2016		2015
Net sales
Americas Simple Meals and Beverages	$	4,325	$	4,380	$	4,483
Global Biscuits and Snacks	2,598		2,564		2,631
Campbell Fresh	967		1,017		968
Total	$	7,890	$	7,961	$	8,082

	2017			2016			2015
Earnings before interest and taxes
Americas Simple Meals and Beverages	$	1,120		$	1,069		$	948
Global Biscuits and Snacks	454			422			383
Campbell Fresh	(9		)	60			61
Corporate(1)	(147		)	(560		)	(236		)
Restructuring charges(2)	(18		)	(31		)	(102		)
Total	$	1,400		$	960		$	1,054

	2017		2016		2015
Depreciation and amortization
Americas Simple Meals and Beverages	$	118	$	117	$	123
Global Biscuits and Snacks	98		96		94
Campbell Fresh	83		77		70
Corporate(3)	19		18		16
Total	$	318	$	308	$	303

	2017		2016		2015
Capital expenditures
Americas Simple Meals and Beverages	$	117	$	105	$	137
Global Biscuits and Snacks	127		122		137
Campbell Fresh	47		74		82
Corporate(3)	47		40		24
Total	$	338	$	341	$	380

_______________________________________

⁽¹⁾  Represents unallocated items. Pension and postretirement benefit mark-to-market adjustments are included in Corporate. There were gains of $178 in 2017, and losses of $313 and $138 in 2016 and 2015, respectively. Costs related to the implementation of our new organizational structure and cost savings initiatives were $40, $47 and $22 in 2017, 2016 and 2015, 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 included in 2017 and an impairment charge of $141 on the intangible assets of the Bolthouse Farms carrot and carrot ingredients reporting unit was included in 2016. See Note 5 for information on the impairment charges. A gain of $25 from a settlement of a claim related to the Kelsen acquisition was also included in 2016.

⁽²⁾  See Note 7 for additional information.

⁽³⁾  Represents primarily corporate offices.

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

	2017		2016		2015
Net sales
Soup	$	2,673	$	2,690	$	2,798
Baked snacks	2,511		2,479		2,502
Other simple meals	1,698		1,702		1,648
Beverages	1,008		1,090		1,134
Total	$	7,890	$	7,961	$	8,082

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:

	2017		2016		2015
Net sales
United States	$	6,357	$	6,437	$	6,400
Australia	610		590		646
Other countries	923		934		1,036
Total	$	7,890	$	7,961	$	8,082

	2017		2016		2015
Long-lived assets
United States	$	1,987	$	1,967	$	1,942
Australia	265		242		232
Other countries	202		198		173
Total	$	2,454	$	2,407	$	2,347