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REPORTABLE SEGMENT
 9 Months Ended
Sep. 28, 2014
Reportable Segment [Abstract]  
Segment Reporting Disclosure [Text Block]
NOTE 12:
REPORTABLE SEGMENTS 
Our operating segments are determined on the basis of how we internally report and evaluate financial information used to make operating decisions and assess performance. 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.



Prior to the second quarter of 2014, we conducted our operations through four reportable segments: Pork, Hog Production, International and Corporate. Over the past several years, the Pork segment has undergone significant structural change and consolidation. In the second quarter of 2014, two of the largest Pork segment operating companies, The Smithfield Packing Company, Inc. and Farmland Foods, Inc., merged to form Smithfield Farmland Corp (Smithfield Farmland). With this merger, only two large operating companies remain; Smithfield Farmland, which produces both fresh pork and packaged meats, and John Morrell Food Group, which is predominately a packaged meats company. Based on the evolution of the Pork segment over the past several years and the recent merger of Smithfield Farmland, the former Pork segment has been reorganized from an independent operating company structure to a product division structure to more closely align with the way in which the chief operating decision maker views the business, assesses segment performance and allocates resources. Therefore, the former Pork segment now consists of two reportable segments; the Fresh Pork segment and the Packaged Meats segment. As such, beginning with the second quarter of 2014, our reportable segments are: Fresh Pork, Packaged Meats, Hog Production, International and Corporate. The changes to our reportable segments have been applied retrospectively for all periods presented.

The Fresh Pork segment consists of our U.S. fresh pork operations. The Packaged Meats segment consists of our U.S. packaged meats operations. The Hog Production segment consists of our U.S. hog production operations. The International segment is comprised mainly of 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. The Corporate segment provides management and administrative services to support our other segments.

The following table presents sales and operating profit (loss) by segment for the periods indicated:
 
 
Successor
 
Predecessor
 
Successor
 
Predecessor
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 28,
2014
 
September 26,
2013
 
September 28,
2014
 
September 26,
2013
 
 
(in millions)
 
(in millions)
Sales:
 
 
 
 
 
 
 
 
Segment sales—
 
 
 
 
 
 
 
 
Fresh Pork
 
$
1,444.3

 
$
1,296.7

 
$
4,437.2

 
$
3,808.3

Packaged Meats
 
1,733.8

 
1,508.7

 
5,010.5

 
4,553.7

Hog Production
 
803.2

 
840.0

 
2,509.7

 
2,531.4

International
 
439.3

 
395.4

 
1,240.0

 
1,128.5

Total segment sales
 
4,420.6

 
4,040.8

 
13,197.4

 
12,021.9

Intersegment sales—
 
 
 
 
 
 
 
 
Fresh Pork
 
(13.6
)
 
(11.2
)
 
(42.8
)
 
(31.9
)
Packaged Meats
 
—

 
—

 
(0.1
)
 
(0.9
)
Hog Production
 
(694.4
)
 
(682.7
)
 
(2,185.6
)
 
(1,957.4
)
International
 
(10.3
)
 
(9.7
)
 
(30.5
)
 
(29.8
)
Total intersegment sales
 
(718.3
)
 
(703.6
)
 
(2,259.0
)
 
(2,020.0
)
Consolidated sales
 
$
3,702.3

 
$
3,337.2

 
$
10,938.4

 
$
10,001.9

 
 
 
 
 
 
 
 
 
Operating profit (loss):
 
 
 
 
 
 
 
 
Fresh Pork
 
$
(12.5
)
 
$
(22.9
)
 
$
76.1

 
$
(20.0
)
Packaged Meats
 
111.3

 
77.6

 
330.1

 
296.4

Hog Production
 
139.6

 
48.5

 
278.1

 
18.7

International
 
40.3

 
17.3

 
111.1

 
35.1

Corporate
 
(28.6
)
 
(41.9
)
 
(88.7
)
 
(103.0
)
Consolidated operating profit
 
$
250.1

 
$
78.6

 
$
706.7

 
$
227.2





In connection with the Merger and the resulting new accounting basis, we recognized $1.7 billion of goodwill, which reflects the amount of the total consideration paid by WH Group that exceeded the fair value of the identifiable assets acquired, liabilities assumed and noncontrolling interests, including the impact of immaterial measurement period adjustments. The following represents our allocation of goodwill to our reportable segments as of the Merger Date:
Goodwill
 
Packaged Meats
$
1,533.5

International
94.5

Fresh Pork
34.6

Hog Production
4.2


$
1,666.8