Business And Geographic Segment Information

6 Months Ended

Jan. 27, 2013

Segment Reporting [Abstract]

Business and Geographic Segment Information

Business and Geographic Segment Information

The company manages operations through 13 operating segments based on product type and geographic location and has aggregated the operating segments into the appropriate reportable segment based on similar economic characteristics; products; production processes; types or classes of customers; distribution methods; and regulatory environment. The reportable segments are discussed in greater detail below.

The U.S. Simple Meals segment aggregates the following operating segments: U.S. Soup and U.S. Sauces. The U.S. Soup retail business includes the following products: Campbell’s condensed and ready-to-serve soups; and Swanson broth and stocks. The U.S. Sauces retail business includes the following products: Prego pasta sauces; Pace Mexican sauces; Campbell’s canned gravies, pasta and beans; and Swanson canned poultry.

The Global Baking and Snacking segment aggregates the following operating segments: Pepperidge Farm cookies, crackers, bakery and frozen products in U.S. retail; and Arnott’s biscuits in Australia and Asia Pacific.

The International Simple Meals and Beverages segment aggregates the simple meals and beverages operating segments outside of the U.S., including Europe, the retail business in Canada, and the businesses in Asia Pacific, Latin America and China.

The U.S. Beverages segment represents the U.S. retail beverages business, including the following products: V8 juices and beverages; and Campbell’s tomato juice.

Bolthouse and Foodservice comprises the Bolthouse Farms carrot products operating segment, including fresh carrots, juice concentrate and fiber; the Bolthouse Farms super-premium refrigerated beverages and refrigerated salad dressings operating segment; and the North America Foodservice operating segment. The North America Foodservice operating segment represents the distribution of products such as soup, specialty entrées, beverage products, other prepared foods and Pepperidge Farm products through various food service channels in the U.S. and Canada. None of these operating segments meets the criteria for aggregation nor the thresholds for separate disclosure.  

The company evaluates segment performance before interest, taxes and costs associated with restructuring activities. Unrealized gains and losses on commodity hedging activities are excluded from segment operating earnings and are recorded in Corporate expenses as these open positions represent hedges of future purchases. Upon closing of the contracts, the realized gain or loss is transferred to segment operating earnings, which allows the segments to reflect the economic effects of the hedge without exposure to quarterly volatility of unrealized gains and losses. Certain manufacturing, warehousing and distribution activities of the segments are integrated in order to maximize efficiency and productivity. As a result, asset information by segment is not discretely maintained for internal reporting or used in evaluating performance.

	Three Months Ended				Six Months Ended
	January 27, 2013		January 29, 2012		January 27, 2013		January 29, 2012
Net sales
U.S. Simple Meals	$	833	$	824	$	1,729	$	1,698
Global Baking and Snacking	561		526		1,135		1,094
International Simple Meals and Beverages	405		402		759		761
U.S. Beverages	182		187		371		385
Bolthouse and Foodservice	352		173		675		335
Total	$	2,333	$	2,112	$	4,669	$	4,273

	Three Months Ended						Six Months Ended
	January 27, 2013			January 29, 2012			January 27, 2013			January 29, 2012
Earnings before interest and taxes
U.S. Simple Meals	$	191		$	174		$	465		$	434
Global Baking and Snacking	74			71			159			159
International Simple Meals and Beverages	54			58			101			101
U.S. Beverages	37			34			67			64
Bolthouse and Foodservice	30			28			64			55
Corporate(1)	(77		)	(33		)	(140		)	(63		)
Restructuring charges(2)	(8		)	(3		)	(30		)	(5		)
Total	$	301		$	329		$	686		$	745

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(1) Represents unallocated corporate expenses. Restructuring-related costs of $40 and $61 were included in unallocated corporate expenses for the three- and six-month periods ended January 27, 2013, respectively. In addition, unallocated corporate expenses included $10 of acquisition related costs in the six-month period ended January 27, 2013.

(2) See Note 7 for additional information.

The company’s global net sales based on product categories are as follows:

	Three Months Ended				Six Months Ended
	January 27, 2013		January 29, 2012		January 27, 2013		January 29, 2012
Net sales
Simple Meals	$	1,449	$	1,323	$	2,871	$	2,633
Baked Snacks	592		557		1,204		1,159
Beverages	292		232		594		481
Total	$	2,333	$	2,112	$	4,669	$	4,273

Simple Meals include condensed and ready-to-serve soups, broths, sauces, carrot products, and refrigerated salad dressings. Baked Snacks include cookies, crackers, biscuits, and other baked products.