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Segment Information
 6 Months Ended
Jan. 26, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
Our reportable segments are as follows:
•Meals & Beverages, which consists of our soup, simple meals and beverage products in retail and foodservice in the U.S. and Canada. The segment includes the following products: Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks; Pacific Foods broth, soups and non-dairy beverages; Prego pasta sauces; Pace Mexican sauces; SpaghettiOs pasta, Campbell’s gravies, beans and dinner sauces; Swanson canned poultry; V8 juices and beverages; Campbell's tomato juice; and as of March 12, 2024, Rao's pasta sauces, dry pasta, frozen entrées, frozen pizza and soups, Michael Angelo’s frozen entrées and pasta sauces; and noosa yogurts. The noosa yoghurt business was sold on February 24, 2025. The segment also includes snacking products in foodservice and Canada; and
•Snacks, which consists of Pepperidge Farm cookies, crackers and fresh bakery and frozen products, including Goldfish crackers; Snyder’s of Hanover pretzels; Lance sandwich crackers; Cape Cod potato chips; Kettle Brand potato chips; Late July snacks; and Snack Factory pretzel crisps, and other snacking products in retail in the U.S. The segment also includes the snacking and meals and beverages retail business in Latin America. The segment included the results of the Pop Secret popcorn business, which was sold on August 26, 2024.
We refer to the following products as our "leadership brands": Campbell's condensed and ready-to-serve soups; Chunky soups; Swanson broth, stocks and canned poultry; Pacific Foods broth, soups and non-dairy beverages; Prego pasta sauces; Pace Mexican sauces; V8 juices and beverages; Rao's pasta sauces, dry pasta, frozen entrées, frozen pizza and soups; Pepperidge Farm cookies, crackers and fresh bakery; Goldfish crackers; Snyder's of Hanover pretzels; Lance sandwich crackers; Cape Cod potato chips; Kettle Brand potato chips; Late July snacks; and Snack Factory pretzel crisps.
We evaluate segment performance before interest, taxes and costs associated with restructuring activities, cost savings and optimization initiatives, impairment charges and corporate expenses. Unrealized gains and losses on outstanding undesignated 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 EndedSix Months Ended
(Millions)January 26, 2025January 28, 2024January 26, 2025January 28, 2024
Net sales
Meals & Beverages$1,679 $1,382 $3,385 $2,786 
Snacks1,006 1,074 2,072 2,188 
Total$2,685 $2,456 $5,457 $4,974 
Three Months EndedSix Months Ended
(Millions)January 26, 2025January 28, 2024January 26, 2025January 28, 2024
Earnings before interest and taxes
Meals & Beverages$291 $247 $628 $534 
Snacks114 161 256 322 
Corporate income (expense)(1)
(73)(89)(179)(177)
Restructuring charges(2)
(5)(2)(11)(4)
Total$327 $317 $694 $675 
_______________________________________
(1)Represents unallocated items. Costs related to cost savings and optimization initiatives were $20 million and $49 million in the three- and six-month periods ended January 26, 2025, and $34 million and $45 million in the three- and six-month periods ended January 28, 2024, respectively. Unrealized mark-to-market adjustments on outstanding undesignated commodity hedges were gains of $14 million and $18 million in the three- and six-month periods ended January 26, 2025, and gains of $7 million and losses of $8 million in the three- and six-month periods ended January 28, 2024, respectively. Accelerated amortization expense related to customer relationship intangible assets was $7 million and $14 million in the three- and six-month periods ended January 26, 2025 and January 28, 2024. Intangible asset impairment charges were $26 million in the three- and six-month periods ended in January 26, 2025. A loss on the sale of our Pop Secret popcorn business of $25 million was included in the six-month period ended January 26, 2025. Litigation expenses related to the Plum baby food and snacks business, which was divested on May 3, 2021, and certain other litigation matters were $1 million and $2 million in the three- and six-month periods ended January 26, 2025 and $1 million and $3 million in the three- and six-month periods ended January 28, 2024, respectively. Insurance recoveries of $1 million and costs of $3 million related to a cybersecurity incident were included in the six-month periods ended January 26, 2025 and January 28, 2024, respectively. A postretirement actuarial loss of $2 million was included in the six-month period ended January 26, 2025. Costs of $10 million and $19 million associated with the acquisition of Sovos Brands were included in the three- and six-month periods ended January 28, 2024, respectively.
(2)See Note 8 for additional information.
Our net sales based on product categories are as follows:
Three Months EndedSix Months Ended
(Millions)January 26, 2025January 28, 2024January 26, 2025January 28, 2024
Net sales
Soup$849 $841 $1,701 $1,701 
Snacks1,058 1,127 2,186 2,300 
Other simple meals605 317 1,218 619 
Beverages173 171 352 354 
Total$2,685 $2,456 $5,457 $4,974 
Soup includes various soup, broths and stock products. Snacks include cookies, pretzels, crackers, popcorn, potato chips, tortilla chips and other salty snacks and baked products. Other simple meals include sauces, yogurts, pasta, frozen entrées,
canned poultry, frozen pizza, gravies and beans. Beverages include V8 juices and beverages, Campbell’s tomato juice and Pacific Foods non-dairy beverages.