Segment Information

3 Months Ended

Oct. 01, 2011

Segment Information [Abstract]

Segment Information

3. Segment Information

The following is a general description of the corporation's four business segments:

• North American Retail – sells a variety of packaged meat and frozen bakery products to retail customers in North America and includes the corporation's U.S. Senseo retail coffee business.

• North American Foodservice and Specialty Meats – sells a variety of meat and bakery products to foodservice customers and sells gourmet sausage and other meats to retail customers in North America.

• Coffee & Tea (formerly International Beverage) – sells coffee and tea products in major markets around the world, including Europe, Brazil and Australia.

• Australian Bakery (formerly International Bakery) – sell a variety of frozen bakery and other dessert items in Australia and New Zealand

The results for the company's Aidells gourmet sausage business and Gallo Salame business are being reported as part of the North American Foodservice and Specialty Meats segment (formerly North American Foodservice). These businesses were previously reported under the North American Retail segment. In conjunction with the North American segmentation changes, the corporation moved $39 million of goodwill from the North American Retail segment to the North American Foodservice and Specialty Meats segment and determined that no goodwill impairment was necessary.

The results of the North American foodservice beverage business (formerly reported under the North American Foodservice segment) and the results of the European bakery operations (formerly reported under the International Bakery segment) are now being reported as part of the results of discontinued operations. See Note 4 – "Discontinued Operations" for additional information. Prior year results have been revised to reflect the current year's presentation.

The following is a summary of net sales and operating segment income by business segment:

	Net Sales						Income before Income Taxes
(In millions)	First Quarter 2012			First Quarter 2011			First Quarter 2012			First Quarter 2011
North American Retail	$	684		$	695		$	42		$	60
North American Foodservice and Specialty Meats		307			274			27			23
Coffee & Tea		922			728			114			90
Australian Bakery		38			36			2			2
Total business segments		1,951			1,733			185			175
Intersegment sales		(8	)		(6	)		—			—
Total net sales and operating segment income		1,943			1,727			185			175
General corporate expenses		—			—			(60	)		(27	)
Mark-to-Market derivative gains/(losses)		—			—			(11	)		12
Amortization of intangibles		—			—			(3	)		(3	)
Total net sales and operating income		1,943			1,727			111			157
Net interest expense		—			—			(21	)		(29	)
Debt extinguishment costs		—			—			—			(30	)
Net sales and income before income taxes	$	1,943		$	1,727		$	90		$	98

As previously noted, Aidells and Gallo Salame were moved from the North American Retail segment to the North American Foodservice and Specialty Meats segment. Segment assets have also been revised to reflect the assets of the North American foodservice beverage and European bakery businesses as net assets held for sale. A summary of the segment assets as of October 1, 2011 and July 2, 2011 is as follows:

(In millions)	October 1, 2011		July 2, 2011
North American Retail1	$	1,322	$	1,313
North American Foodservice and Specialty Meats		512		499
Coffee & Tea		2,312		2,334
Australian Bakery		61		66
Total business segments		4,207		4,212
Net assets held for sale		1,740		2,461
Other2		3,105		2,860
Total Assets	$	9,052	$	9,533

¹  Certain fixed assets in the North American Retail segment also support production within the North American and Specialty Meats segment. However, the corporation does not allocate these shared assets across segments.

²  Principally cash and cash equivalents, certain corporate fixed assets, deferred tax assets and certain other noncurrent assets.