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Reportable Segments
 3 Months Ended
Jul. 31, 2023
Segment Reporting [Abstract]  
Reportable Segments
We operate in one industry: the manufacturing and marketing of food and beverage products. We have three reportable segments: U.S. Retail Coffee, U.S. Retail Consumer Foods, and U.S. Retail Pet Foods. The presentation of International and Away From Home represents a combination of all other operating segments that are not individually reportable.
The U.S. Retail Coffee segment primarily includes the domestic sales of Folgers®, Dunkin’®, and Café Bustelo® branded coffee; the U.S. Retail Consumer Foods segment primarily includes the domestic sales of Smucker’s® and Jif® branded products; and the U.S. Retail Pet Foods segment primarily includes the domestic sales of Meow Mix®, Milk-Bone®, Pup-Peroni®, and Canine Carry Outs® branded products. International and Away From Home includes the sale of products distributed domestically and in foreign countries through retail channels and foodservice distributors and operators (e.g., health care operators, restaurants, lodging, hospitality, offices, K-12, colleges and universities, and convenience stores).
Segment profit represents net sales, less direct and allocable operating expenses, and is consistent with the way in which we manage our segments. However, we do not represent that the segments, if operated independently, would report operating profit equal to the segment profit set forth below, as segment profit excludes certain expenses such as amortization expense and impairment charges related to intangible assets, gains and losses on divestitures, the net change in cumulative unallocated gains and losses on commodity and foreign currency exchange derivative activities (“change in net cumulative unallocated derivative gains and losses”), certain divestiture, acquisition, integration, and restructuring costs (“special project costs”), as well as corporate administrative expenses.
Commodity and foreign currency exchange derivative gains and losses are reported in unallocated derivative gains and losses outside of segment operating results until the related inventory is sold. At that time, we reclassify the hedge gains and losses from unallocated derivative gains and losses to segment profit, allowing our segments to realize the economic effect of the hedge without experiencing any mark-to-market volatility. We would expect that any gain or loss in the estimated fair value of the derivatives would generally be offset by a change in the estimated fair value of the underlying exposures.
The following table reconciles segment profit to income before income taxes.
 Three Months Ended July 31,
 20232022
Net sales:
U.S. Retail Coffee$625.1 $597.9 
U.S. Retail Consumer Foods464.0 311.1 
U.S. Retail Pet Foods (A)
441.0 729.0 
International and Away From Home275.1 235.0 
Total net sales$1,805.2 $1,873.0 
Segment profit:
U.S. Retail Coffee$170.1 $145.9 
U.S. Retail Consumer Foods105.7 54.8 
U.S. Retail Pet Foods (A)
81.3 120.3 
International and Away From Home36.4 16.6 
Total segment profit$393.5 $337.6 
Amortization(39.8)(55.6)
Gain (loss) on divestitures – net1.2 1.6 
Interest expense – net(32.1)(39.1)
Change in net cumulative unallocated derivative gains and losses10.4 (33.8)
Cost of products sold – special project costs (B)
— (1.1)
Other special project costs (B)
— (1.4)
Corporate administrative expenses(61.8)(67.6)
Other income (expense) – net(33.0)0.5 
Income before income taxes$238.4 $141.1 
(A)On April 28, 2023, we sold certain pet food brands to Post, and the divested net sales were primarily included in the U.S. Retail Pet Foods segment. For more information, see Note 4: Divestitures.
(B)Special project costs include certain restructuring costs, which were recognized in cost of products sold and other operating expense (income) – net in the Condensed Statement of Consolidated Income during the three months ended July 31, 2022. For more information, see Note 3: Special Project Costs.
The following table presents certain geographical information.
Three Months Ended July 31,
20232022
Net sales:
United States$1,676.4 $1,759.9 
International:
Canada$102.3 $93.8 
All other international26.5 19.3 
Total international$128.8 $113.1 
Total net sales$1,805.2 $1,873.0 
The following table presents product category information.
Three Months Ended July 31,
20232022
Primary Reportable Segment (A)
Coffee$709.1 $679.9 U.S. Retail Coffee
Pet snacks243.4 244.2 
U.S. Retail Pet Foods (C)
Peanut butter212.0 60.6 U.S. Retail Consumer Foods
Cat food191.1 265.4 
U.S. Retail Pet Foods (C)
Frozen handheld179.4 160.5 U.S. Retail Consumer Foods
Fruit spreads106.6 100.1 U.S. Retail Consumer Foods
Portion control48.6 27.8 
Other (D)
Dog food26.8 241.7 
U.S. Retail Pet Foods (B) (C)
Toppings and syrups24.8 24.4 U.S. Retail Consumer Foods
Baking mixes and ingredients14.8 16.3 
Other (D)
Other48.6 52.1 
Other (D)
Total net sales$1,805.2 $1,873.0 
(A)The primary reportable segment generally represents at least 75 percent of total net sales for each respective product category.
(B)During the three months ended July 31, 2022, the net sales within this product category were primarily related to the divested pet food brands, primarily included in the U.S. Retail Pet Foods segment. For more information, see Note 4: Divestitures.
(C)During the three months ended July 31, 2023, a portion of the net sales within this product category relates to sales associated with a contract manufacturing agreement resulting from the divestiture of certain pet food brands, primarily included in the U.S. Retail Pet Foods segment. This portion of net sales will continue throughout the remainder of 2024 and into 2025.
(D)Primarily represents the International and Away From Home operating segments, which are combined for segment reporting purposes.