Business And Geographic Segment Information

12 Months Ended

Aug. 02, 2015

Segment Reporting [Abstract]

Business and Geographic Segment Information

Business and Geographic Segment Information

Through 2015, we managed operations through 11 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 as of June 13, 2013, Plum 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 (Farms), including fresh carrots, juice concentrate and fiber; the Bolthouse Farms refrigerated beverages and refrigerated salad dressings operating segment (CPG); the North America Foodservice operating segment; and as of June 29, 2015, the Garden Fresh Gourmet 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. Bolthouse Farms was acquired on August 6, 2012.

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. Therefore, only geographic segment asset information is included in the disclosure.

On January 29, 2015, we announced plans to implement a new enterprise designfocused mainly on product categories. Under the new design, which we fully implemented at the beginning of 2016, our businesses are organized in the following three new divisions: Americas Simple Meals and Beverages, Global Biscuits and Snacks, and Campbell Fresh. We are managing our operations under the new structure in 2016, and will modify segment reporting as appropriate.

Our largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for approximately 20% in 2015, and 19% of consolidated net sales in 2014 and 2013. All of our reportable segments sold products to Wal-Mart Stores, Inc. or its affiliates.

	2015		2014		2013
Net sales
U.S. Simple Meals	$	2,930	$	2,944	$	2,849
Global Baking and Snacking	2,375		2,440		2,273
International Simple Meals and Beverages	700		780		869
U.S. Beverages	689		723		742
Bolthouse and Foodservice	1,388		1,381		1,319
Total	$	8,082	$	8,268	$	8,052

	2015			2014			2013
Earnings before interest and taxes
U.S. Simple Meals	$	677		$	714		$	731
Global Baking and Snacking	350			332			316
International Simple Meals and Beverages	80			106			108
U.S. Beverages	113			127			120
Bolthouse and Foodservice	107			117			116
Corporate(1)	(130		)	(149		)	(260		)
Restructuring charges(2)	(102		)	(55		)	(51		)
Total	$	1,095		$	1,192		$	1,080

	2015		2014		2013
Depreciation and amortization
U.S. Simple Meals	$	80	$	77	$	146
Global Baking and Snacking	87		93		83
International Simple Meals and Beverages	18		19		23
U.S. Beverages	22		21		39
Bolthouse and Foodservice	80		80		90
Corporate(4)	16		15		15
Discontinued Operations	—		—		11
Total	$	303	$	305	$	407

	2015		2014		2013
Capital expenditures
U.S. Simple Meals and U.S. Beverages(3)	$	118	$	115	$	82
Global Baking and Snacking	128		120		112
International Simple Meals and Beverages	28		26		19
Bolthouse and Foodservice	82		57		83
Corporate(4)	24		28		30
Discontinued Operations	—		1		10
Total	$	380	$	347	$	336

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⁽¹⁾  Represents unallocated corporate expenses. Costs of $22 related to the implementation of our new organizational structure and cost reduction initiatives were included in 2015. Pension settlement charges of $22 associated with a U.S. pension plan were included in 2014. The settlements 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. In addition, a loss of $9 on foreign exchange forward contracts related to the sale of the European simple meals business and restructuring-related costs of $3 were included in 2014. Restructuring-related costs of $91 and acquisition costs of $10 were included in 2013.

⁽²⁾  See Note 8 for additional information.

⁽³⁾  Capital expenditures for U.S. Simple Meals and U.S. Beverages are not maintained by segment.

⁽⁴⁾  Represents primarily corporate offices.

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

	2015		2014		2013
Net sales
Simple Meals	$	4,446	$	4,511	$	4,446
Baked Snacks	2,502		2,571		2,408
Beverages	1,134		1,186		1,198
Total	$	8,082	$	8,268	$	8,052

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

Geographic Area Information

Information about operations in different geographic areas is as follows:

	2015		2014		2013
Net sales
United States	$	6,400	$	6,432	$	6,195
Australia	646		709		801
Other countries	1,036		1,127		1,056
Total	$	8,082	$	8,268	$	8,052

	2015		2014		2013
Long-lived assets
United States	$	1,942	$	1,844	$	1,804
Australia	232		306		317
Other countries	173		168		139
Total	$	2,347	$	2,318	$	2,260