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REPORTING SEGMENTS
 12 Months Ended
Apr. 29, 2012
Segment Reporting [Abstract]  
REPORTING SEGMENTS
REPORTING SEGMENTS 
Our operating segments are determined on the basis of how we internally report and evaluate financial information used to make operating decisions. For external reporting purposes, we aggregate operating segments which have similar economic characteristics, products, production processes, types or classes of customers and distribution methods into reportable segments based on a combination of factors, including products produced and geographic areas of operations. Our reportable segments are: Pork, Hog Production, International Other and Corporate, each of which is comprised of a number of subsidiaries, joint ventures and other investments.
Pork Segment 
The Pork segment consists mainly of our three wholly-owned U.S. fresh pork and packaged meats subsidiaries: Smithfield Packing, Farmland Foods, Inc. and John Morrell Food Group. The Pork segment produces a wide variety of fresh pork and packaged meats products in the U.S. and markets them nationwide and to numerous foreign markets, including China, Japan, Mexico, Russia and Canada. Fresh pork products include loins, butts, picnics and ribs, among others. Packaged meats products include smoked and boiled hams, bacon, sausage, hot dogs (pork, beef and chicken), deli and luncheon meats, specialty products such as pepperoni, dry meat products, and ready-to-eat, prepared foods such as pre-cooked entrees and pre-cooked bacon and sausage. 
The following table shows the percentages of Pork segment revenues derived from packaged meats and fresh pork for the fiscal years indicated. 
 
 
Fiscal Years
 
 
2012
 
2011
 
2010
Packaged meats
 
54
%
 
56
%
 
55
%
Fresh pork (1)
 
46

 
44

 
45

 
 
100
%
 
100
%
 
100
%
——————————————
(1) 
Includes by-products and rendering.
Hog Production Segment 
The Hog Production segment consists of our hog production operations located in the U.S. The Hog Production segment operates numerous facilities with approximately 851,000 sows producing about 15.8 million market hogs annually. The Hog Production segment produces approximately 49% of the Pork segment’s live hog requirements. We own certain genetic lines of specialized breeding stock which are marketed using the name Smithfield Premium Genetics (SPG). All SPG hogs are processed internally. 
The following table shows the percentages of Hog Production segment revenues derived from hogs sold internally and externally, and other products for the fiscal years indicated. 
 
 
Fiscal Years
 
 
2012
 
2011
 
2010
Internal hog sales
 
80
%
 
78
%
 
77
%
External hog sales
 
12

 
15

 
15

Other products (1)
 
8

 
7

 
8

 
 
100
%
 
100
%
 
100
%
——————————————
(1) 
Consists primarily of feed, non-market hog sales and gains (losses) on derivatives.
International Segment 
The International segment includes our meat processing and distribution operations in Poland, Romania and the United Kingdom, our interests in meat processing operations, mainly in Western Europe and Mexico, our hog production operations located in Poland and Romania and our interests in hog production operations in Mexico. Our international meat processing operations produce a wide variety of fresh pork, beef, poultry and packaged meats products, including cooked hams, sausages, hot dogs, bacon and canned meats.
The following table shows the percentages of International segment revenues derived from packaged meats, fresh meats and other products for the fiscal years indicated. 
 
 
Fiscal Years
 
 
2012
 
2011
 
2010
Packaged meats
 
47
%
 
47
%
 
48
%
Fresh meats
 
43

 
42

 
41

Other products (1)
 
10

 
11

 
11

 
 
100
%
 
100
%
 
100
%
——————————————
(1) 
Includes external hog sales, feed, feathers, by-products and rendering.
Other Segment 
The Other segment, contains the results of several recently disposed businesses, including our former turkey production operations and our previous 49% interest in Butterball, LLC (Butterball), which were sold in December 2010 (fiscal 2011), as well as our former live cattle operations, which were sold in the first quarter of fiscal 2010.
Corporate Segment 
The Corporate segment provides management and administrative services to support our other segments.
Segment Results 
The following tables present information about the results of operations and the assets of our reportable segments for the fiscal years presented. The information contains certain allocations of expenses that we deem reasonable and appropriate for the evaluation of results of operations. We do not allocate income taxes to segments. Segment assets exclude intersegment account balances as we believe their inclusion would be misleading or not meaningful. We believe all intersegment sales are at prices that approximate market. 
 
 
Fiscal Years
 
 
2012
 
2011
 
2010
 
 
(in millions)
Segment Profit Information
 
 
 
 
 
 
Sales:
 
 
 
 
 
 
Segment sales—
 
 
 
 
 
 
Pork
 
$
11,093.0

 
$
10,263.9

 
$
9,326.3

Hog Production
 
3,052.6

 
2,705.1

 
2,207.8

International
 
1,466.7

 
1,340.7

 
1,277.2

Other
 
—

 
74.7

 
153.3

Total segment sales
 
15,612.3

 
14,384.4

 
12,964.6

Intersegment sales—
 
 
 
 
 
 
Pork
 
(37.1
)
 
(30.5
)
 
(31.5
)
Hog Production
 
(2,444.6
)
 
(2,113.0
)
 
(1,695.0
)
International
 
(36.3
)
 
(38.2
)
 
(35.5
)
Total intersegment sales
 
(2,518.0
)
 
(2,181.7
)
 
(1,762.0
)
Consolidated sales
 
$
13,094.3

 
$
12,202.7

 
$
11,202.6

 
 
 
 
 
 
 
Depreciation and amortization:
 
 

 
 

 
 

Pork
 
$
127.8

 
$
125.5

 
$
126.0

Hog Production
 
71.9

 
65.7

 
74.9

International
 
39.9

 
38.1

 
37.4

Other
 
—

 
0.1

 
0.2

Corporate
 
3.2

 
2.5

 
3.8

Consolidated depreciation and amortization
 
$
242.8

 
$
231.9

 
$
242.3

 
 
 
 
 
 
 
Interest expense:
 
 

 
 

 
 

Pork
 
$
28.7

 
$
42.4

 
$
48.9

Hog Production
 
131.8

 
124.5

 
100.5

International
 
29.8

 
28.2

 
37.7

Other
 
—

 
4.2

 
6.9

Corporate
 
(13.6
)
 
46.1

 
72.4

Consolidated interest expense
 
$
176.7

 
$
245.4

 
$
266.4

 
 
 
 
 
 
 
Loss (income) from equity method investments
 
 

 
 

 
 

Pork
 
$
(2.7
)
 
$
(2.0
)
 
$
(3.6
)
Hog Production
 
0.3

 
(0.4
)
 
0.7

International
 
12.3

 
(46.5
)
 
(17.2
)
Other
 
—

 
(1.2
)
 
(18.5
)
Consolidated loss (income) from equity method investments
 
$
9.9

 
$
(50.1
)
 
$
(38.6
)
 
 
 
 
 
 
 
Operating profit:
 
 

 
 

 
 

Pork
 
$
623.7

 
$
753.4

 
$
538.7

Hog Production
 
166.1

 
224.4

 
(539.2
)
International
 
42.8

 
115.9

 
127.9

Other
 
—

 
(2.4
)
 
3.6

Corporate
 
(110.0
)
 
3.7

 
(68.2
)
Consolidated operating profit
 
$
722.6

 
$
1,095.0

 
$
62.8

 
 
April 29,
2012
 
May 1,
2011
 
May 2,
2010
 
 
(in millions)
Segment Asset Information
 
 
 
 
 
 
Total assets:
 
 
 
 
 
 
Pork
 
$
2,245.6

 
$
2,620.2

 
$
2,579.3

Hog Production
 
2,145.4

 
2,074.2

 
2,020.9

International
 
1,651.4

 
1,902.3

 
1,670.1

Other
 
—

 
—

 
169.4

Corporate
 
1,379.8

 
1,015.1

 
1,269.2

Consolidated total assets
 
$
7,422.2

 
$
7,611.8

 
$
7,708.9

 
 
 
 
 
 
 
Investments:
 
 

 
 

 
 

Pork
 
$
18.6

 
$
17.4

 
$
17.1

Hog Production
 
2.6

 
2.7

 
2.4

International
 
501.2

 
562.1

 
498.7

Other
 
—

 
—

 
106.7

Corporate
 
0.2

 
0.3

 
0.1

Consolidated investments
 
$
522.6

 
$
582.5

 
$
625.0

 
 
 
 
 
 
 
Capital expenditures:
 
 

 
 

 
 

Pork
 
$
143.5

 
$
81.3

 
$
141.7

Hog Production
 
89.4

 
68.6

 
10.0

International
 
26.5

 
26.8

 
22.1

Corporate
 
31.3

 
0.1

 
0.9

Consolidated capital expenditures
 
$
290.7

 
$
176.8

 
$
174.7

 
 The following table shows the change in the carrying amount of goodwill by reportable segment: 
 
 
Pork
 
International
 
Hog Production
 
Other
 
Total
 
 
(in millions)
Balance, May 2, 2010
 
$
216.5

 
$
141.4

 
$
445.5

 
$
19.5

 
$
822.9

Disposals (1)
 
—

 
—

 
(25.5
)
 
(19.5
)
 
(45.0
)
Other goodwill adjustments (2)
 
(0.4
)
 
15.8

 
—

 
—

 
15.4

Balance, May 1, 2011
 
216.1

 
157.2

 
420.0

 
—

 
793.3

Other goodwill adjustments (2)
 
(0.4
)
 
(24.7
)
 
—

 
—

 
(25.1
)
Balance, April 29, 2012
 
$
215.7

 
$
132.5

 
$
420.0

 
$
—

 
$
768.2

——————————————
(1) 
See Note 3—Impairment and Disposal of Long-lived Assets for discussion of disposals and impairments.
(2) 
Other goodwill adjustments primarily include the effects of foreign currency translation.
The following table presents our consolidated sales and long-lived assets attributed to operations by geographic area for the fiscal years ended April 29, 2012, May 1, 2011 and May 2, 2010:
 
 
Fiscal Years
 
 
2012
 
2011
 
2010
 
 
(in millions)
Sales:
 
 
 
 
 
 
U.S.
 
$
11,663.9

 
$
10,900.2

 
$
9,960.9

International
 
1,430.4

 
1,302.5

 
1,241.7

Total sales
 
$
13,094.3

 
$
12,202.7

 
$
11,202.6

 
 
 
 
 
 
 
 
 
April 29,
2012
 
May 1,
2011
 
May 2,
2010
 
(in millions)
Long-lived assets:
 
 

 
 

 
 

U.S.
 
$
2,969.1

 
$
2,905.7

 
$
3,142.1

International
 
1,154.1

 
1,368.2

 
1,246.5

Total long-lived assets
 
$
4,123.2

 
$
4,273.9

 
$
4,388.6