Segment Information

Commencing in the third quarter of 2018 with the acquisition of Snyder's-Lance, we formed a new U.S. snacking unit, which combines Snyder's-Lance and Pepperidge Farm, and is an operating segment. As of the third quarter of 2018, we have four operating segments based primarily on product type, and three reportable segments. The U.S. snacking operating segment is aggregated with the international biscuit and snacks operating segment to form the Global Biscuits and Snacks reportable segment. The operating segments are aggregated based on similar economic characteristics, products, production processes, types or classes of customers, distribution methods, and regulatory environment. Our reportable segments are as follows:

•

Americas Simple Meals and Beverages segment includes the retail and food service businesses in the U.S. and Canada. The 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; Plum food and snacks; V8 juices and beverages; Campbell’s tomato juice; and as of December 12, 2017, Pacific Foods broth, soups, non-dairy beverages and other simple meals;

•

Global Biscuits and Snacks segment represents an aggregation of the following operating segments: U.S. snacks operating segment, which includes Pepperidge Farm cookies, crackers, bakery and frozen products in U.S. retail, and Snyder’s-Lance pretzels, sandwich crackers, potato chips, tortilla chips and other snacking products in the U.S. and Europe; and the international biscuits and snacks operating segment, which includes Arnott’s biscuits in Australia and Asia Pacific, Kelsen cookies globally, the simple meals and shelf-stable beverages business in Australia and Asia Pacific, and beginning in 2018, the business in Latin America; and


•	Campbell Fresh segment includes Bolthouse Farms fresh carrots, carrot ingredients, refrigerated beverages and refrigerated salad dressings, Garden Fresh Gourmet salsa, hummus, dips and tortilla chips, and the U.S. refrigerated soup business.

Prior to 2018, the business in Latin America was managed as part of the Americas Simple Meals and Beverages segment. Segment results have been adjusted retrospectively to reflect this change.

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 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. Only the service cost component of pension and postretirement expense is allocated to segments. All other components of expense, including interest cost, expected return on assets, amortization of prior service credits and recognized actuarial gains and losses are reflected in Corporate and not included in segment operating results. Asset information by segment is not discretely maintained for internal reporting or used in evaluating performance.



	Three Months Ended				Nine Months Ended
	April 29, 2018		April 30, 2017		April 29, 2018		April 30, 2017
Net sales
Americas Simple Meals and Beverages	$	1,010	$	966	$	3,424	$	3,459
Global Biscuits and Snacks	862		639		2,297		2,025
Campbell Fresh	251		248		742		742
Corporate	2		—		3		—
Total	$	2,125	$	1,853	$	6,466	$	6,226



	Three Months Ended						Nine Months Ended
	April 29, 2018			April 30, 2017			April 29, 2018			April 30, 2017
Earnings before interest and taxes
Americas Simple Meals and Beverages	$	217		$	224		$	827		$	915
Global Biscuits and Snacks	123			100			382			352
Campbell Fresh	(19		)	1			(36		)	(1		)
Corporate⁽¹⁾	(772		)	(27		)	(934		)	(306		)
Restructuring charges⁽²⁾	(24		)	—			(59		)	—
Total	$	(475	)	$	298		$	180		$	960

_______________________________________

⁽¹⁾

Represents unallocated items. Pension and postretirement benefit mark-to-market adjustments are included in Corporate. There were gains of $14 in the nine-month period ended April 29, 2018, and losses of $20 in the nine-month period ended April 30, 2017. Costs related to the cost savings initiatives were $46 and $7 in the three-month periods ended April 29, 2018, and April 30, 2017, respectively, and $90 and $18 in the nine-month periods ended April 29, 2018, and April 30, 2017, respectively. Transaction and integration costs associated with the acquisition of Snyder's-Lance were $72 and $96 in the three- and nine-month periods ended April 29, 2018, respectively. Intangible asset impairment charges of $608 were included in the three-month period ended April 29, 2018, and $683 and $212 in the nine-month periods ended April 29, 2018, and April 30, 2017, respectively (See Note 5 for additional information). Plant asset impairment charges of $11 were include in the three- and nine-month periods ended April 29, 2018. A charge of $22 related to the settlement of a legal claim was included in the three- and nine-month periods ended April 29, 2018.


⁽²⁾	See Note 7 for additional information.

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



	Three Months Ended				Nine Months Ended
	April 29, 2018		April 30, 2017		April 29, 2018		April 30, 2017
Net sales
Soup	$	596	$	557	$	2,217	$	2,251
Snacks	821		600		2,188		1,914
Other simple meals	429		434		1,298		1,299
Beverages	277		262		760		762
Other	2		—		3		—
Total	$	2,125	$	1,853	$	6,466	$	6,226

Soup includes various soup, broths and stock products. Snacks include cookies, pretzels, crackers, biscuits, popcorn, nuts, potato chips, tortilla chips and other salty snacks and baked products. Other simple meals include sauces, carrot products, refrigerated salad dressings, refrigerated salsa, hummus, dips and Plum foods and snacks.