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, Papua New Guinea, 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 and frozen soups.

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 Fiscal 2014 Productivity Initiatives (see Note 4) and Merger related costs, 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:



	Successor			Predecessor
	February 8 - July 28, 2013			April 29 - June 7, 2013			Three Months Ended July 29, 2012
	(In thousands)
Net external sales:
North American Consumer Products	$	396,751		$	307,972		$	758,852
Europe	442,581			284,657			777,916
Asia/Pacific	365,629			272,116			650,159
U.S. Foodservice	169,907			135,688			315,346
Rest of World	151,637			112,439			281,178
Consolidated Totals	$	1,526,505		$	1,112,872		$	2,783,451
Operating income/(loss):
North American Consumer Products(a)	$	(38,944	)	$	65,459		$	183,431
Europe(a)	(25,053		)	32,918			137,194
Asia/Pacific(a)	(11,033		)	37,616			78,888
U.S. Foodservice(a)	(19,423		)	15,531			36,650
Rest of World(a)	10,024			10,559			31,013
Other:
Non-Operating(b)	(13,507		)	(16,070		)	(50,779		)
Special Items(c)	(152,682		)	(118,230		)	—
Consolidated Totals	$	(250,618	)	$	27,783		$	416,397

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(a)	The negative impact of the inventory step-up adjustment recorded in purchase accounting to operating income in the Successor period was $139.9 million for North American Consumer Products, $105.6 million for Europe, $58.5 million for Asia/Pacific, $33.8 million million for U.S. Foodservice and $7.3 million million for Rest of World.


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


(c)	Includes costs related to Fiscal 2014 Productivity Initiatives and Merger related costs including legal, accounting and other professional fees as well as severance and employee benefit costs.

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



	Successor		Predecessor
	February 8 - July 28, 2013		April 29 - June 7, 2013		Three Months Ended July 29, 2012
	(In thousands)
Ketchup and Sauces	$	773,123	$	533,932	$	1,319,300
Meals and Snacks	492,181		359,412		962,879
Infant/Nutrition	165,415		118,528		296,718
Other	95,786		101,000		204,554
Total	$	1,526,505	$	1,112,872	$	2,783,451