Segments

The Company’s segments are primarily organized by geographical area. The composition of segments and measure of segment profitability are consistent with that used by the Company’s management.

Descriptions of the Company’s reportable segments are as follows:

North American Consumer Products—This segment primarily manufactures, markets and sells ketchup, condiments, sauces, pasta meals, and frozen potatoes, entrees, snacks, and appetizers to the grocery channels in the United States of America and includes our Canadian business.

Europe—This segment includes the Company’s operations in Europe and sells products in all of the Company’s categories.

Asia/Pacific—This segment includes the Company’s operations in Australia, New Zealand, India, Japan, China, South Korea, Indonesia, Vietnam and Singapore. This segment’s operations include products in all of the Company’s categories.

U.S. Foodservice—This segment primarily manufactures, markets and sells branded and customized products to commercial and non-commercial food outlets and distributors in the United States of America including ketchup, condiments, sauces, frozen soups and desserts.

Rest of World—This segment includes the Company’s operations in Africa, Latin America, and the Middle East that sell products in all of the Company’s categories.

The Company’s management evaluates performance based on several factors including net sales, operating income, and the use of capital resources. Inter-segment revenues, items below the operating income line of the consolidated statements of income, and certain costs associated with the corporation-wide productivity initiatives (see Note 3) are not presented by segment, since they are not reflected in the measure of segment profitability reviewed by the Company’s management.

The following table presents information about the Company’s reportable segments:



	Second Quarter Ended						Six Months Ended
	October 26, 2011 FY 2012			October 27, 2010 FY 2011			October 26, 2011 FY 2012			October 27, 2010 FY 2011
	(Thousands of Dollars)
Net external sales:
North American Consumer Products	$	794,271		$	802,925		$	1,568,892		$	1,564,737
Europe	844,187			798,119			1,682,019			1,511,442
Asia/Pacific	592,825			531,365			1,263,591			1,089,545
U.S. Foodservice	352,304			362,418			677,254			690,952
Rest of World	248,245			119,796			489,657			238,772
Consolidated Totals	$	2,831,832		$	2,614,623		$	5,681,413		$	5,095,448
Operating income/(loss):
North American Consumer Products	$	201,927		$	203,964		$	392,705		$	395,044
Europe	144,470			135,756			281,909			250,792
Asia/Pacific	39,989			58,174			101,234			129,876
U.S. Foodservice	34,476			51,126			66,032			90,615
Rest of World	32,119			12,748			64,415			28,668
Other:
Non-Operating(a)	(57,929		)	(44,969		)	(101,169		)	(72,481		)
Productivity initiatives(b)	(37,317		)	—			(77,828		)	—
Consolidated Totals	$	357,735		$	416,799		$	727,298		$	822,514

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(a)	Includes corporate overhead, intercompany eliminations and charges not directly attributable to operating segments.


(b)	See Note 3 for further details.

The Company’s revenues are generated via the sale of products in the following categories:



	Second Quarter Ended				Six Months Ended
	October 26, 2011 FY 2012		October 27, 2010 FY 2011		October 26, 2011 FY 2012		October 27, 2010 FY 2011
	(Thousands of Dollars)
Ketchup and Sauces	$	1,268,332	$	1,113,728	$	2,578,812	$	2,205,924
Meals and Snacks	1,108,295		1,078,527		2,116,691		1,996,351
Infant/Nutrition	301,508		281,274		623,622		562,049
Other	153,697		141,094		362,288		331,124
Total	$	2,831,832	$	2,614,623	$	5,681,413	$	5,095,448