Segments

The Company’s segments are primarily organized by geographical area. The composition of segments and measure of segment profitability are consistent with that used by the Company’s management.

Descriptions of the Company’s reportable segments are as follows:

North American Consumer Products—This segment primarily manufactures, markets and sells ketchup, condiments, sauces, pasta meals, and frozen potatoes, entrees, snacks, and appetizers to the grocery channels in the United States of America and includes our Canadian business.

Europe—This segment includes the Company’s operations in Europe and sells products in all of the Company’s categories.

Asia/Pacific—This segment includes the Company’s operations in Australia, New Zealand, India, Japan, China, Papua New Guinea, South Korea, Indonesia, Vietnam and Singapore. This segment’s operations include products in all of the Company’s categories.

U.S. Foodservice—This segment primarily manufactures, markets and sells branded and customized products to commercial and non-commercial food outlets and distributors in the United States of America including ketchup, condiments, sauces and frozen soups.

Rest of World—This segment includes the Company’s operations in Africa, Latin America, and the Middle East that sell products in all of the Company’s categories.

The Company’s management evaluates performance based on several factors including net sales, operating income, and the use of capital resources. Inter-segment revenues, items below the operating income line of the consolidated statements of income, and certain costs associated with the Fiscal 2012 corporation-wide productivity initiatives (see Note 4) are not presented by segment, since they are not reflected in the measure of segment profitability reviewed by the Company’s management.

The following table presents information about the Company’s reportable segments:



	First Quarter Ended
	July 29, 2012 FY 2013			July 27, 2011 FY 2012
	(In thousands)
Net external sales:
North American Consumer Products	$	758,852		$	774,621
Europe	777,916			837,832
Asia/Pacific	657,933			670,766
U.S. Foodservice	315,346			307,967
Rest of World	281,177			241,412
Consolidated Totals	$	2,791,224		$	2,832,598
Operating income/(loss):
North American Consumer Products	$	183,431		$	190,778
Europe	137,194			137,439
Asia/Pacific	72,829			61,245
U.S. Foodservice	36,650			32,531
Rest of World	31,013			32,296
Other:
Non-Operating(a)	(50,779		)	(43,240		)
Productivity initiatives(b)	—			(40,511		)
Consolidated Totals	$	410,338		$	370,538

_______________________________________


(a)	Includes corporate overhead, intercompany eliminations and charges not directly attributable to operating segments.


(b)	See Note 4 for further details on Fiscal 2012 productivity initiatives.

The Company’s revenues are generated via the sale of products in the following categories:



	First Quarter Ended
	July 29, 2012 FY 2013		July 27, 2011 FY 2012
	(In thousands)
Ketchup and Sauces	$	1,319,300	$	1,310,480
Meals and Snacks	970,652		991,450
Infant/Nutrition	296,718		322,114
Other	204,554		208,554
Total	$	2,791,224	$	2,832,598