Segment Information

We manage our businesses in three segments focused mainly on product categories. The segments are as follows:

•

Americas Simple Meals and Beverages segment includes the retail and food service businesses in the U.S. and Canada. 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; Campbell’s tomato juice; and as of December 12, 2017, Pacific Foods broth, soups, non-dairy beverages and other simple meals;


•	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 beginning in 2018, the business in Latin America; 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.

Prior to 2018, the business in Latin America was managed as part of the Americas Simple Meals and Beverages segment. Segment results have been adjusted retrospectively to reflect this change.

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 28, 2018		January 29, 2017		January 28, 2018		January 29, 2017
Net sales
Americas Simple Meals and Beverages	$	1,196	$	1,215	$	2,414	$	2,493
Global Biscuits and Snacks	726		696		1,435		1,386
Campbell Fresh	257		260		491		494
Corporate	1		—		1		—
Total	$	2,180	$	2,171	$	4,341	$	4,373



	Three Months Ended						Six Months Ended
	January 28, 2018			January 29, 2017			January 28, 2018			January 29, 2017
Earnings before interest and taxes
Americas Simple Meals and Beverages	$	282		$	311		$	610		$	691
Global Biscuits and Snacks	139			137			259			252
Campbell Fresh	(11		)	(3		)	(17		)	(2		)
Corporate⁽¹⁾	(134		)	(241		)	(162		)	(279		)
Restructuring charges⁽²⁾	(33		)	1			(35		)	—
Total	$	243		$	205		$	655		$	662

_______________________________________

⁽¹⁾

Represents unallocated items. Pension and postretirement benefit mark-to-market adjustments are included in Corporate. There were gains of $14 in the six-month period ended January 28, 2018, and losses of $20 in the six-month period ended January 29, 2017. Costs related to the implementation of our new organizational structure and cost savings initiatives were $27 in the three-month period ended January 28, 2018, and $44 and $11 in the six-month periods ended January 28, 2018, and January 29, 2017, respectively. Transaction costs of $24 associated with the pending acquisition of Snyder's-Lance were in the three- and six-month periods ended January 28, 2018. Impairment charge of $75 on the intangible assets of the Bolthouse Farms carrot and carrot ingredients reporting unit was included in the three- and six-month periods ended January 28, 2018, and 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 January 29, 2017.


⁽²⁾	See Note 7 for additional information.

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



	Three Months Ended				Six Months Ended
	January 28, 2018		January 29, 2017		January 28, 2018		January 29, 2017
Net sales
Soup	$	814	$	831	$	1,621	$	1,694
Baked snacks	690		661		1,367		1,314
Other simple meals	434		436		869		865
Beverages	241		243		483		500
Other	1		—		1		—
Total	$	2,180	$	2,171	$	4,341	$	4,373

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.