Business And Geographic Segment Information

9 Months Ended

Apr. 28, 2013

Business And Geographic Segment Information [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 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				Nine Months Ended
	April 28, 2013		April 29, 2012		April 28, 2013		April 29, 2012
Net sales
U.S. Simple Meals	$	627	$	567	$	2,356	$	2,265
Global Baking and Snacking	568		543		1,703		1,637
International Simple Meals and Beverages	357		349		1,116		1,110
U.S. Beverages	198		208		569		593
Bolthouse and Foodservice	344		154		1,019		489
Total	$	2,094	$	1,821	$	6,763	$	6,094

	Three Months Ended						Nine Months Ended
	April 28, 2013			April 29, 2012			April 28, 2013			April 29, 2012
Earnings before interest and taxes
U.S. Simple Meals	$	156		$	120		$	621		$	554
Global Baking and Snacking	73			73			232			232
International Simple Meals and Beverages	40			37			141			138
U.S. Beverages	33			45			100			109
Bolthouse and Foodservice	27			20			91			75
Corporate(1)	(56		)	(27		)	(196		)	(90		)
Restructuring charges(2)	(1		)	(4		)	(31		)	(9		)
Total	$	272		$	264		$	958		$	1,009

_______________________________________

(1) Represents unallocated corporate expenses. Restructuring-related costs of $20 and $81 were included in unallocated corporate expenses for the three- and nine-month periods ended April 28, 2013, respectively. In addition, unallocated corporate expenses included $10 of acquisition costs in the nine-month period ended April 28, 2013.

(2) See Note 7 for additional information.

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

	Three Months Ended				Nine Months Ended
	April 28, 2013		April 29, 2012		April 28, 2013		April 29, 2012
Net sales
Simple Meals	$	1,171	$	985	$	4,042	$	3,618
Baked Snacks	602		576		1,806		1,735
Beverages	321		260		915		741
Total	$	2,094	$	1,821	$	6,763	$	6,094

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.