SEGMENT REPORTING
We operate in four segments: Chicken, Beef, Pork and Prepared Foods. We measure segment profit as operating income (loss).
Chicken: Chicken operations include breeding and raising chickens, as well as processing live chickens into fresh, frozen and value-added chicken products and logistics operations to move products through the supply chain. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international markets. It also includes sales from allied products and our chicken breeding stock subsidiary.
Beef: Beef operations include processing live fed cattle and fabricating dressed beef carcasses into primal and sub-primal meat cuts and case-ready products. This segment also includes sales from allied products such as hides and variety meats, as well as logistics operations to move products through the supply chain. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international markets.
Pork: Pork operations include processing live market hogs and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. This segment also includes our live swine group, related allied product processing activities and logistics operations to move products through the supply chain. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international markets.
Prepared Foods: Prepared Foods operations include manufacturing and marketing frozen and refrigerated food products and logistics operations to move products through the supply chain. Products include pepperoni, bacon, beef and pork pizza toppings, pizza crusts, flour and corn tortilla products, appetizers, prepared meals, ethnic foods, soups, sauces, side dishes, meat dishes and processed meats. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international markets.
The results from Dynamic Fuels are included in Other.
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| in millions | |
| Chicken |
| | Beef |
| | Pork |
| | Prepared Foods |
| | Other |
| | Intersegment Sales |
| | Consolidated |
|
Fiscal year ended September 28, 2013 | | | | | | | | | | | | | |
Sales | $ | 12,296 |
| | $ | 14,400 |
| | $ | 5,408 |
| | $ | 3,322 |
| | $ | 46 |
| | $ | (1,098 | ) | | $ | 34,374 |
|
Operating Income | 646 |
| | 296 |
| | 332 |
| | 101 |
| | — |
| | | | 1,375 |
|
Total Other (Income) Expense | | | | | | | | | | | | | 118 |
|
Income from Continuing Operations before Income Taxes | | | | | | | | | | | | | 1,257 |
|
Depreciation | 291 |
| | 87 |
| | 30 |
| | 61 |
| | 5 |
| | | | 474 |
|
Total Assets | 5,820 |
| | 2,798 |
| | 931 |
| | 1,176 |
| | 1,452 |
| | | | 12,177 |
|
Additions to property, plant and equipment | 311 |
| | 105 |
| | 22 |
| | 87 |
| | 33 |
| | | | 558 |
|
Fiscal year ended September 29, 2012 | | | | | | | | | | | | | |
Sales | $ | 11,368 |
| | $ | 13,755 |
| | $ | 5,510 |
| | $ | 3,237 |
| | $ | 167 |
| | $ | (982 | ) | | $ | 33,055 |
|
Operating Income (Loss) | 484 |
| | 218 |
| | 417 |
| | 181 |
| | (14 | ) | | | | 1,286 |
|
Total Other (Income) Expense | | | | | | | | | | | | | 321 |
|
Income from Continuing Operations before Income Taxes | | | | | | | | | | | | | 965 |
|
Depreciation | 268 |
| | 86 |
| | 30 |
| | 54 |
| | 5 |
| | | | 443 |
|
Total Assets | 5,902 |
| | 2,634 |
| | 895 |
| | 960 |
| | 1,505 |
| | | | 11,896 |
|
Additions to property, plant and equipment | 451 |
| | 100 |
| | 32 |
| | 99 |
| | 8 |
| | | | 690 |
|
Fiscal year ended October 1, 2011 | | | | | | | | | | | | | |
Sales | $ | 10,783 |
| | $ | 13,549 |
| | $ | 5,460 |
| | $ | 3,215 |
| | $ | 127 |
| | $ | (1,102 | ) | | $ | 32,032 |
|
Operating Income (Loss) | 168 |
| | 468 |
| | 560 |
| | 117 |
| | (24 | ) | | | | 1,289 |
|
Total Other (Income) Expense | | | | | | | | | | | | | 211 |
|
Income from Continuing Operations before Income Taxes | | | | | | | | | | | | | 1,078 |
|
Depreciation | 259 |
| | 84 |
| | 28 |
| | 58 |
| | 4 |
| | | | 433 |
|
Total Assets | 5,412 |
| | 2,610 |
| | 960 |
| | 943 |
| | 1,146 |
| | | | 11,071 |
|
Additions to property, plant and equipment | 464 |
| | 88 |
| | 27 |
| | 58 |
| | 6 |
| | | | 643 |
|
We allocate expenses related to corporate activities to the segments, while the related assets and additions to property, plant and equipment remain in Other.
The Pork segment had sales of $872 million, $771 million and $816 million for fiscal 2013, 2012 and 2011, respectively, from transactions with other operating segments. The Beef segment had sales of $226 million, $211 million and $286 million for fiscal 2013, 2012 and 2011, respectively, from transactions with other operating segments.
Our largest customer, Wal-Mart Stores, Inc., accounted for 13.0%, 13.8% and 13.3% of consolidated sales in fiscal 2013, 2012 and 2011, respectively. Sales to Wal-Mart Stores, Inc. were included in the Chicken, Beef, Pork and Prepared Foods segments. Any extended discontinuance of sales to this customer could, if not replaced, have a material impact on our operations.
The majority of our operations are domiciled in the United States. Approximately 96%, 95% and 96% of sales to external customers for fiscal 2013, 2012 and 2011, respectively, were sourced from the United States. Approximately $6.1 billion and $5.9 billion of long-lived assets were located in the United States at September 28, 2013, and September 29, 2012, respectively. Approximately $485 million and $564 million of long-lived assets were located in foreign countries, primarily Brazil, China, Mexico and India, at September 28, 2013, and September 29, 2012, respectively.
We sell certain products in foreign markets, primarily Brazil, Canada, Central America, China, the European Union, Japan, Mexico, the Middle East, South Korea, Taiwan, and Vietnam. Our export sales from the United States totaled $4.2 billion, $4.0 billion and $4.1 billion for fiscal 2013, 2012 and 2011, respectively. Substantially all of our export sales are facilitated through unaffiliated brokers, marketing associations and foreign sales staffs. Sales of products produced in a country other than the United States were less than 10% of consolidated sales for each of fiscal 2013, 2012 and 2011.
