Segment Reporting

12 Months Ended

Oct. 01, 2011

Segment Reporting [Abstract]

Segment Reporting

NOTE 16: 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.

	in millions
	Chicken		Beef		Pork		Prepared Foods		Other		Intersegment Sales		Consolidated
Fiscal year ended October 1, 2011
Sales		$11,017		$13,549		$5,460		$3,215		$127		$(1,102)		$32,266
Operating Income (Loss)		164		468		560		117		(24)				1,285
Total Other (Income) Expense														211
Income (Loss) from Continuing Operations														1,074
before Income Taxes
Depreciation		259		84		28		58		4				433
Total Assets		5,412		2,610		960		943		1,146				11,071
Additions to property, plant and equipment		464		88		27		58		6				643
Fiscal year ended October 2, 2010
Sales		$10,062		$11,707		$4,552		$2,999		$0		$(890)		$28,430
Operating Income (Loss)		519		542		381		124		(10)				1,556
Total Other (Income) Expense														353
Income (Loss) from Continuing Operations before Income Taxes														1,203
Depreciation		251		82		27		56		0				416
Total Assets		5,031		2,468		845		940		1,468				10,752
Additions to property, plant and equipment		320		61		27		42		100				550
Fiscal year ended October 3, 2009
Sales		$9,660		$10,937		$3,875		$2,836		$0		$(604)		$26,704
Operating Income (Loss)		(157)		(346)		160		133		(5)				(215)
Total Other (Income) Expense														328
Income (Loss) from Continuing Operations before Income Taxes														(543)
Depreciation		252		103		36		54		0				445
Total Assets		4,927		2,277		840		905		1,646				10,595
Additions to property, plant and equipment		174		39		18		58		79				368

We allocate expenses related to corporate activities to the segments, while the related assets and additions to property, plant and equipment remain in Other.

The Pork segment had sales of $816 million, $718 million and $449 million for fiscal 2011, 2010 and 2009, respectively, from transactions with other operating segments. The Beef segment had sales of $286 million, $172 million and $155 million for fiscal 2011, 2010 and 2009, respectively, from transactions with other operating segments.

Our largest customer, Wal-Mart Stores, Inc., accounted for 13.3%, 13.4% and 13.8% of consolidated sales in fiscal 2011, 2010 and 2009, respectively. Sales to Wal-Mart Stores, Inc. were included in the Chicken, Beef, Pork and Prepared Foods segments. Any extended discontinuance of sales to this customer could, if not replaced, have a material impact on our operations.

The majority of our operations are domiciled in the United States. Approximately 96%, 96% and 97% of sales to external customers for fiscal 2011, 2010 and 2009, respectively, were sourced from the United States. Approximately $5.8 billion and $5.6 billion, respectively, of long-lived assets were located in the United States at October 1, 2011, and October 2, 2010. Approximately $539 million and $511 million of long-lived assets were located in foreign countries, primarily Brazil, China, Mexico and India, at fiscal years ended 2011 and 2010, respectively.

We sell certain products in foreign markets, primarily Canada, Central America, China, the European Union, Japan, Mexico, the Middle East, Russia, South Korea, Taiwan and Vietnam. Our export sales from the United States totaled $4.1 billion, $3.2 billion and $2.7 billion for fiscal 2011, 2010 and 2009, respectively. Substantially all of our export sales are facilitated through unaffiliated brokers, marketing associations and foreign sales staffs. Sales of products produced in a country other than the United States were less than 10% of consolidated sales for each of fiscal 2011, 2010 and 2009. Approximately $57 million of income, $11 million of loss and $14 million of loss from continuing operations before income taxes for fiscal 2011, 2010 and 2009, respectively, was from operations based in a country other than the United States, all of which was included in the Chicken segment.