Business And Geographic Segment Information

3 Months Ended

Oct. 27, 2013

Segment Reporting [Abstract]

Business and Geographic Segment Information

Business and Geographic Segment Information

The company manages operations through 10 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 includes the following products: Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks, Prego pasta sauces; Pace Mexican sauces; Campbell’s canned gravies, pasta and beans; Swanson canned poultry; and as of June 13, 2013, Plum Organics food and snacks.

The Global Baking and Snacking segment aggregates the following operating segments: Pepperidge Farm cookies, crackers, bakery and frozen products in U.S. retail; Arnott’s biscuits in Australia and Asia Pacific; and as of August 8, 2013, Kelsencookies globally.

The International Simple Meals and Beverages segment aggregates the following operating segments: the retail business in Canada and the simple meals and beverages business in Asia Pacific, Latin America, and China. See also Note 4 for information on the sale of the simple meals business in Europe. This business was historically included in this segment. The results of operations of this business have been reflected as discontinued operations for the periods presented. Prior periods were reclassified to conform to the current presentation.

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
	October 27, 2013		October 28, 2012
Net sales
U.S. Simple Meals	$	860	$	896
Global Baking and Snacking	609		574
International Simple Meals and Beverages	193		223
U.S. Beverages	173		189
Bolthouse and Foodservice	330		323
Total	$	2,165	$	2,205

	Three Months Ended
	October 27, 2013			October 28, 2012
Earnings before interest and taxes
U.S. Simple Meals	$	211		$	274
Global Baking and Snacking	78			85
International Simple Meals and Beverages	20			33
U.S. Beverages	24			30
Bolthouse and Foodservice	29			34
Corporate(1)	(36		)	(66		)
Restructuring charges(2)	(21		)	(22		)
Total	$	305		$	368

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⁽¹⁾  Represents unallocated corporate expenses. Restructuring-related costs of $2 and an unrealized loss of $9 on foreign exchange forward contracts related to the sale of the European simple meals business were included in unallocated corporate expenses for the three-month period ended October 27, 2013. Acquisition costs of $10 and restructuring-related costs of $21 were included in unallocated corporate expenses for the three-month period ended October 28, 2012.

⁽²⁾  See Note 8 for additional information.

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

	Three Months Ended
	October 27, 2013		October 28, 2012
Net sales
Simple Meals	$	1,234	$	1,292
Baked Snacks	645		612
Beverages	286		301
Total	$	2,165	$	2,205

Simple Meals include condensed and ready-to-serve soups, broths, sauces, carrot products, refrigerated salad dressings and Plum foods and snacks for babies, toddlers and children. Baked Snacks include cookies, crackers, biscuits, and other baked products.