| Segment Information |
Segment Information 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, the transition period and 2012 restructuring and productivity initiatives (see Note 7), Merger related costs (see Note 4), a charge for the closure of a factory in South Africa and a charge for the settlement of the Foodstar earn-out (see Note 13), and costs associated with the Fiscal 2012 corporation-wide productivity initiatives (see Note 7) 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 - December 29, 2013 |
| April 29 - June 7, 2013 | | April 28,
2013 | | April 29,
2012 | | April 27,
2011 | | (29 Weeks) |
| (6 Weeks) | | (52 Weeks) | | (52 1/2 Weeks) | | (52 Weeks) | | (In thousands) | | Net External Sales | North American Consumer Products | $ | 1,669,924 |
| | $ | 307,972 |
| | $ | 3,195,099 |
| | $ | 3,241,533 |
| | $ | 3,265,857 |
| Europe | 1,829,607 |
| | 284,657 |
| | 3,314,523 |
| | 3,441,282 |
| | 3,236,800 |
| Asia/Pacific | 1,328,488 |
| | 272,116 |
| | 2,533,334 |
| | 2,500,411 |
| | 2,247,193 |
| U.S. Foodservice | 772,598 |
| | 135,688 |
| | 1,370,779 |
| | 1,345,768 |
| | 1,339,100 |
| Rest of World | 638,945 |
| | 112,439 |
| | 1,115,151 |
| | 978,578 |
| | 469,686 |
| Consolidated Totals | $ | 6,239,562 |
| | $ | 1,112,872 |
| | $ | 11,528,886 |
| | $ | 11,507,572 |
| | $ | 10,558,636 |
| | Operating Income (Loss) | North American Consumer Products(a) | $ | 269,642 |
| | $ | 65,459 |
| | $ | 790,939 |
| | $ | 812,056 |
| | $ | 832,719 |
| Europe(a) | 195,235 |
| | 32,918 |
| | 593,044 |
| | 608,829 |
| | 581,148 |
| Asia/Pacific(a) | 11,833 |
| | 37,616 |
| | 265,879 |
| | 234,671 |
| | 253,524 |
| U.S. Foodservice(a) | 84,273 |
| | 15,531 |
| | 186,155 |
| | 169,843 |
| | 183,425 |
| Rest of World(a) | 74,238 |
| | 10,559 |
| | 112,660 |
| | 105,080 |
| | 53,371 |
| Other: | | | | | | | | | | Non-Operating(b) | (74,827 | ) | | (16,070 | ) | | (226,588 | ) | | (222,754 | ) | | (216,549 | ) | Fiscal 2013 special items(c) | — |
| | — |
| | (15,624 | ) | | — |
| | — |
| Restructuring and productivity initiatives(d) | (410,430 | ) | | (6,042 | ) | | — |
| | (205,418 | ) | | — |
| Merger related costs(e) | (157,938 | ) | | (112,188 | ) | | (44,814 | ) | | — |
| | — |
| Consolidated Totals | $ | (7,974 | ) | | $ | 27,783 |
| | $ | 1,661,651 |
| | $ | 1,502,307 |
| | $ | 1,687,638 |
| | Depreciation and Amortization Expenses | Total North America | $ | 153,402 |
| | $ | 16,162 |
| | $ | 126,859 |
| | $ | 131,023 |
| | $ | 121,480 |
| Europe | 62,044 |
| | 9,976 |
| | 98,806 |
| | 98,384 |
| | 91,222 |
| Asia/Pacific | 41,009 |
| | 7,311 |
| | 62,233 |
| | 59,796 |
| | 49,802 |
| Rest of World | 11,256 |
| | 2,520 |
| | 22,836 |
| | 19,290 |
| | 6,324 |
| Non-Operating(b) | 41,342 |
| | 5,054 |
| | 35,898 |
| | 28,428 |
| | 23,971 |
| Consolidated Totals | $ | 309,053 |
| | $ | 41,023 |
| | $ | 346,632 |
| | $ | 336,921 |
| | $ | 292,799 |
|
| | | | | | | | | | | | | | Successor | | Predecessor | | December 29, 2013 | | April 28, 2013
FY 2013 | | April 29, 2012
FY 2012 | | Identifiable Assets | | (In thousands) | Total North America | $ | 14,486,939 |
| | $ | 3,289,900 |
| | $ | 3,394,387 |
| Europe | 11,673,072 |
| | 5,129,880 |
| | 4,158,349 |
| Asia/Pacific | 4,039,589 |
| | 2,670,376 |
| | 2,544,332 |
| Rest of World | 1,336,733 |
| | 1,123,407 |
| | 1,145,696 |
| Non-Operating(g) | 7,436,015 |
| | 725,444 |
| | 740,529 |
| Consolidated Totals | $ | 38,972,348 |
| | $ | 12,939,007 |
| | $ | 11,983,293 |
|
| | | | | | | | | | | | | | | | | | | | | | Successor | | Predecessor | | February 8 - December 29, 2013 | | April 29 - June 7, 2013 | | April 28,
2013 | | April 29,
2012 | | April 27,
2011 | | (29 Weeks) | | (6 Weeks) | | (52 Weeks) | | (52 1/2 Weeks) | | (52 Weeks) | | Capital Expenditures(f) | | (In thousands) | Total North America | $ | 47,060 |
| | $ | 10,050 |
| | $ | 107,207 |
| | $ | 103,958 |
| | $ | 101,001 |
| Europe | 45,121 |
| | 4,537 |
| | 96,112 |
| | 113,420 |
| | 97,964 |
| Asia/Pacific | 47,209 |
| | 3,389 |
| | 91,361 |
| | 99,912 |
| | 71,419 |
| Rest of World | 15,720 |
| | 2,960 |
| | 48,747 |
| | 38,539 |
| | 12,829 |
| Non-Operating(b) | 46,905 |
| | 99,218 |
| | 55,671 |
| | 62,905 |
| | 52,433 |
| Consolidated Totals | $ | 202,015 |
| | $ | 120,154 |
| | $ | 399,098 |
| | $ | 418,734 |
| | $ | 335,646 |
|
| | (a) | The negative impact of the inventory step-up adjustment recorded in purchase accounting to operating income in the Successor period was $139.8 million for North American Consumer Products, $110.3 million for Europe, $89.6 million for Asia/Pacific, $33.8 million for U.S. Foodservice and $9.8 million for Rest of World. |
| | (b) | Includes corporate overhead, intercompany eliminations and charges not directly attributable to operating segments. |
| | (c) | During the fourth quarter of Fiscal 2013, the Company closed a factory in South Africa resulting in a $3.5 million in costs of products sold primarily related to asset write-downs. During the third quarter of Fiscal 2013, the Company renegotiated the terms of the Foodstar Holdings Pte earn-out that was due in 2014 resulting in a $12.1 million charge in SG&A. See Note 13 for further explanation. |
| | (d) | See Note 7 for further details on restructuring and productivity initiatives. |
| | (e) | See Note 4 for further details on Merger related costs |
| | (f) | Excludes property, plant and equipment obtained through acquisitions. |
| | (g) | Includes identifiable assets not directly attributable to operating segments. |
The Company’s revenues are generated via the sale of products in the following categories: | | | | | | | | | | | | | | | | | | | | | | Successor | | Predecessor | | February 8 - December 29, 2013 |
| April 29 - June 7, 2013 |
| April 28,
2013 |
| April 29,
2012 |
| April 27,
2011 | | (29 Weeks) | | (6 Weeks) | | (52 Weeks) | | (52 1/2 Weeks) | | (52 Weeks) | | Net External Sales | | (In thousands) | Ketchup and Sauces | $ | 3,081,347 |
| | $ | 533,932 |
| | $ | 5,375,788 |
| | $ | 5,232,607 |
| | $ | 4,607,326 |
| Meals and Snacks | 2,185,831 |
| | 359,412 |
| | 4,240,808 |
| | 4,337,995 |
| | 4,134,836 |
| Infant/Nutrition | 624,359 |
| | 118,528 |
| | 1,189,015 |
| | 1,232,248 |
| | 1,175,438 |
| Other | 348,025 |
| | 101,000 |
| | 723,275 |
| | 704,722 |
| | 641,036 |
| Total | $ | 6,239,562 |
| | $ | 1,112,872 |
| | $ | 11,528,886 |
| | $ | 11,507,572 |
| | $ | 10,558,636 |
|
The Company has significant sales and long-lived assets in the following geographic areas. Sales are based on the location in which the sale originated. Long-lived assets include property, plant and equipment, goodwill, trademarks and other intangibles, net of related depreciation and amortization. | | | | | | | | | | | | | | | | | | | | | | Successor | | Predecessor | | February 8 - December 29, 2013 |
| April 29 - June 7, 2013 |
| April 28,
2013 |
| April 29,
2012 |
| April 27,
2011 | | (29 Weeks) | | (6 Weeks) | | (52 Weeks) | | (52 1/2 Weeks) | | (52 Weeks) | | Net External Sales | | (In thousands) | United States | $ | 2,072,049 |
| | $ | 371,253 |
| | $ | 3,857,247 |
| | $ | 3,885,057 |
| | $ | 3,916,988 |
| United Kingdom | 859,512 |
| | 130,741 |
| | 1,597,755 |
| | 1,611,177 |
| | 1,506,607 |
| Other | 3,308,001 |
| | 610,878 |
| | 6,073,884 |
| | 6,011,338 |
| | 5,135,041 |
| Total | $ | 6,239,562 |
| | $ | 1,112,872 |
| | $ | 11,528,886 |
| | $ | 11,507,572 |
| | $ | 10,558,636 |
|
| | | | | | | | | | | | | | Successor | | Predecessor | | December 29, 2013 | | April 28, 2013
FY 2013 | | April 29, 2012
FY 2012 | | Long-Lived Assets | | (In thousands) | United States | $ | 16,280,596 |
| | $ | 2,383,136 |
| | $ | 2,419,518 |
| United Kingdom | 6,999,989 |
| | 1,133,086 |
| | 1,207,918 |
| Other | 8,942,514 |
| | 3,437,299 |
| | 3,540,923 |
| Total | $ | 32,223,099 |
| | $ | 6,953,521 |
| | $ | 7,168,359 |
|
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