Business And Geographic Segment Information

9 Months Ended

May 03, 2015

Segment Reporting [Abstract]

Business and Geographic Segment Information

Business and Geographic Segment Information

We manage operations through 10 operating segments based on product type and geographic location and have 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 gravies, pasta, beans and dinner sauces; Swanson canned poultry; and 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.

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.

We evaluate 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.

On January 29, 2015, we announced plans to implement a new enterprise designfocused mainly on product categories. Under the new design, our businesses will be organized in the following three new divisions: Americas Simple Meals and Beverages, Global Biscuits and Snacks, and Campbell Fresh (previously known as Packaged Fresh). We are in the process of implementing plans for this new enterprise design. We expect to manage our operations under the new structure beginning in 2016, and will modify segment reporting as appropriate.

	Three Months Ended				Nine Months Ended
	May 3, 2015		April 27, 2014		May 3, 2015		April 27, 2014
Net sales
U.S. Simple Meals	$	630	$	672	$	2,425	$	2,426
Global Baking and Snacking	555		564		1,822		1,812
International Simple Meals and Beverages	175		186		558		592
U.S. Beverages	187		190		524		539
Bolthouse and Foodservice	353		358		1,060		1,047
Total	$	1,900	$	1,970	$	6,389	$	6,416

	Three Months Ended						Nine Months Ended
	May 3, 2015			April 27, 2014			May 3, 2015			April 27, 2014
Earnings before interest and taxes
U.S. Simple Meals	$	147		$	175		$	559		$	600
Global Baking and Snacking	80			68			277			234
International Simple Meals and Beverages	27			27			69			85
U.S. Beverages	34			29			80			84
Bolthouse and Foodservice	31			23			79			88
Corporate(1)	(23		)	(29		)	(88		)	(98		)
Restructuring charges(2)	(9		)	(1		)	(9		)	(35		)
Total	$	287		$	292		$	967		$	958

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⁽¹⁾  Represents unallocated corporate expenses. Costs of $9 related to the implementation of our new organizational structure and cost reduction initiatives were included in the three- and nine-month periods ended May 3, 2015. See Note 8 for additional information. A pension settlement charge of $18 associated with a U.S. pension plan was included in the three- and nine-month periods ended April 27, 2014. The settlement resulted from the level of lump sum distributions from the plan's assets in 2014, primarily due to the closure of the facility in Sacramento, California. Restructuring-related costs of $2 and a loss of $9 on foreign exchange forward contracts related to the sale of the European simple meals business were included in the nine-month period ended April 27, 2014.

⁽²⁾  See Note 8 for additional information.

Our global net sales based on product categories are as follows:

	Three Months Ended				Nine Months Ended
	May 3, 2015		April 27, 2014		May 3, 2015		April 27, 2014
Net sales
Simple Meals	$	1,011	$	1,063	$	3,612	$	3,626
Baked Snacks	587		597		1,919		1,912
Beverages	302		310		858		878
Total	$	1,900	$	1,970	$	6,389	$	6,416

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