Segment Information (Notes)

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

The company reports the following three business segments:

• Bananas: Includes the sourcing (purchase and production), transportation, marketing and distribution of bananas.

• Salads and Healthy Snacks: Includes ready-to-eat, packaged salads, referred to in the industry as "value-added salads" and other value-added products, such as healthy snacking items, fresh vegetable and fruit ingredients used in food service; processed fruit ingredients; and the company's former equity-method investment in the Danone JV, which sold Chiquita-branded fruit smoothies in Europe (see Note 7).

• Other Produce: Includes the sourcing, marketing and distribution of whole fresh produce other than bananas. As part of the 2012 restructuring plan, the company exited its North American deciduous business at the end of the California grape season in December 2012. Beginning in 2013, the primary product of the Other Produce segment is pineapples.

Certain corporate expenses are not allocated to the reportable segments and are included in "Corporate costs." Inter-segment transactions are eliminated.

Financial information for each segment follows:

(In thousands)	Bananas2		Salads and Healthy Snacks3			Other Produce4			Corporate Costs5			Consolidated
2013
Net sales	$	1,969,560	$	967,161		$	120,761		$	—		$	3,057,482
Operating income (loss)	111,569		(7,657		)	(2,326		)	(51,741		)	49,845
Depreciation and amortization	22,543		38,412			257			4,069			65,281
Equity in earnings of investees	258		—			—			—			258
Total assets	1,081,531		466,174			27,885			83,548			1,659,138
Expenditures for long-lived assets	26,587		18,757			37			3,673			49,054
2012
Net sales	$	1,985,472	$	952,882		$	139,983		$	—		3,078,337
Operating income	77,454		(218,292		)	(18,120		)	(94,876		)	(253,834		)
Depreciation and amortization1	23,889		35,867			421			2,977			63,154
Equity in (losses) earnings of investees	344		(33,777		)	—			—			(33,433		)
Total assets	1,082,685		494,348			33,418			87,311			1,697,762
Expenditures for long-lived assets	23,351		23,070			131			6,888			53,440
2011
Net sales	$	2,022,969	$	953,464		$	162,863		$	—		3,139,296
Operating income (loss)	127,175		7,035			(36,757		)	(63,713		)	33,740
Depreciation and amortization1	21,073		36,835			480			2,539			60,927
Equity in (losses) earnings of investees	350		(6,664		)	—			—			(6,314		)
Total assets	1,122,537		714,129			38,160			63,133			1,937,959
Expenditures for long-lived assets	36,124		33,421			225			5,765			75,535

¹  Depreciation and amortization allocations between segments for 2012 and 2011 have been revised. Consolidated totals and operating income by segment for both periods did not change.

²  Bananas operating income includes the acceleration of losses on ship arrangements of $4 million net of sublease income in the fourth quarter of 2011 and $6 million net of $2 million of related sale-leaseback gain amortization as described in Note 13.

³  Salads and Healthy Snacks operating income includes charges for $1 million in both 2013 and 2012 primarily related to inventory write-offs to exit healthy snacking products that were not sufficiently profitable. Segment operating income also includes $1 million of severance expenses in 2013 related to a discontinued product, charges for $1 million to restructure the European healthy snacking sales force in 2012, expenses of $1 million related to the closure of a research and development facility in 2012 and $180 million ($171 million, net of tax) of goodwill and trademark impairments in 2012 as described in Note 1. Segment operating income and equity in (losses) earnings of investees include $32 million in 2012 to fully impair the company's equity-method investment and related assets and to record estimates of probable cash obligations to the Danone JV as described in Note 7.

⁴  Other Produce "Cost of sales" includes $1 million related to legal expenses in 2013 and $2 million primarily related to inventory write-offs to exit low-margin other produce in 2012. Segment operating income also includes charges for $1 million related to a lease accrual in 2012 and a reserve of $32 million for advances made to a Chilean grower in 2011 as described in Note 4.

⁵  Corporate costs includes "Restructuring and relocation costs" further detailed in Note 3 and $1 million for other relocation and hiring expenses in 2013.

Financial information by geographic area is as follows:

(In thousands)	2013		2012		2011
Net sales:
United States	$	1,858,418	$	1,773,210	$	1,793,580
Italy	213,838		213,386		229,138
Germany	172,898		191,673		199,084
Other Core Europe	485,742		549,131		597,343
Total Core Europe1	872,478		954,190		1,025,565
Other international	326,586		350,937		320,151
Foreign net sales	1,199,064		1,305,127		1,345,716
Total net sales	$	3,057,482	$	3,078,337	$	3,139,296

¹  Core Europe includes the 28 member states of the European Union, Switzerland, Norway and Iceland.

Property, plant and equipment by geographic area:

	December 31,
(In thousands)	2013		2012
Property, plant and equipment, net:
United States	$	221,604	$	226,587
Central and South America	146,245		142,573
Other international	22,924		26,139
Total property, plant and equipment, net	$	390,773	$	395,299

The company’s products are sold throughout the world and its principal production and processing operations are conducted in the United States and Central America. The company’s earnings are heavily dependent upon products grown and purchased in Central and South America. These activities are a significant factor in the economies of the countries where the company produces bananas and related products, and are subject to the risks that are inherent in operating in such foreign countries, including: government regulation; currency restrictions, fluctuations and other restraints; import and export restrictions; burdensome taxes; risks of expropriation; threats to employees; political instability; terrorist activities including extortion; and risks of U.S. and foreign governmental action in relation to us. Should such circumstances occur, we might need to curtail, cease or alter our activities in a particular region or country. Trade restrictions apply to certain countries, such as Iran and Syria, that require U.S. government authorization for sales there; notwithstanding the broad trade sanctions against these countries, under current U.S. law and licenses issued thereunder, we are authorized to sell food products to specific customers in these countries. Our operations in some Central American countries are dependent upon leases and other agreements with the governments of these countries.