Segment Reporting

9 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

We operate in four segments: Chicken, Beef, Pork and Prepared Foods. We measure segment profit as operating income (loss).

Chicken: Chicken operations include breeding and raising chickens, as well as processing live chickens into fresh, frozen and value-added chicken products and logistics operations to move products through the supply chain. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international markets. It also includes sales from allied products and our chicken breeding stock subsidiary.

Beef: Beef operations include processing live fed cattle and fabricating dressed beef carcasses into primal and sub-primal meat cuts and case-ready products. This segment also includes sales from allied products such as hides and variety meats, as well as logistics operations to move products through the supply chain. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international markets. Allied products are marketed to manufacturers of pharmaceuticals and technical products.

Pork: Pork operations include processing live market hogs and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. This segment also includes our live swine group, related allied product processing activities and logistics operations to move products through the supply chain. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international markets. We sell allied products to pharmaceutical and technical products manufacturers, as well as a limited number of live swine to pork processors.

Prepared Foods: Prepared Foods operations include manufacturing and marketing frozen and refrigerated food products and logistics operations to move products through the supply chain. Products include pepperoni, bacon, beef and pork pizza toppings, pizza crusts, flour and corn tortilla products, appetizers, prepared meals, ethnic foods, soups, sauces, side dishes, meat dishes and processed meats. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international markets.

The results from Dynamic Fuels are included in Other.

Information on segments and a reconciliation to income before income taxes are as follows (in millions):

	Three Months Ended							Nine Months Ended
	June 30, 2012				July 2, 2011			June 30, 2012				July 2, 2011
Sales:
Chicken	$	2,902			$	2,800		$	8,575			$	8,158
Beef	3,487				3,515			10,323				10,033
Pork	1,344				1,408			4,191				4,030
Prepared Foods	764				804			2,432				2,388
Other	24				30			124				63
Intersegment Sales	(213		)		(310		)	(740		)		(810		)
Total Sales	$	8,308			$	8,247		$	24,905			$	23,862
Operating Income (Loss):
Chicken	$	153			$	28		$	330			$	246
Beef	71				140			101				350
Pork	69				124			349				447
Prepared Foods	47				30			142				89
Other	(4		)		(10		)	(6		)		(19		)
Total Operating Income	336				312			916				1,113
Total Other (Income) Expense	210			(a)	49			290			(a)	164			(b)
Income before Income Taxes	$	126			$	263		$	626			$	949

(a) Includes $167 million charge related to the early extinguishment of debt.

(b) Includes $11 million gain related to a sale of interests in an equity method investment.

The Beef segment had sales of $49 million and $107 million in the third quarter of fiscal years 2012 and 2011, respectively, and sales of $162 million and $208 million in the nine months of fiscal years 2012 and 2011, respectively, from transactions with other operating segments of the Company and Dynamic Fuels. The Pork segment had sales of $164 million and $203 million in the third quarter of fiscal years 2012 and 2011, respectively, and sales of $578 million and $602 million in the nine months of fiscal 2012 and 2011, respectively, from transactions with other operating segments of the Company. The aforementioned sales from intersegment transactions, which were at market prices, were included in the segment sales in the above table.