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Segment Reporting
 12 Months Ended
Sep. 28, 2013
Segment Reporting [Abstract]  
Segment Reporting
SEGMENT REPORTING
We operate in five segments: Chicken, Beef, Pork, Prepared Foods and International. We measure segment profit as operating income (loss).
During the second quarter of fiscal 2014, we began reporting our International operation as a separate segment, which was previously included in our Chicken segment. Our International segment became a separate reportable segment as a result of changes to our internal financial reporting to align with previously announced executive leadership changes. All periods presented have been reclassified to reflect this change. Beef, Pork, Prepared Foods and Other results were not impacted by this change
Chicken: Chicken includes our domestic operations related to raising and processing live chickens into fresh, frozen and value-added chicken products, as well as sales from allied products. 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 export markets. This segment also includes logistics operations to move products through our domestic supply chain and the global operations of our chicken breeding stock subsidiary.
Beef: Beef includes our operations related to processing live fed cattle and fabricating dressed beef carcasses into primal and sub-primal meat cuts and case-ready products. 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 export markets. 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.
Pork: Pork includes our operations related to processing live market hogs and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. 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 export markets. This segment also includes our live swine group, related allied product processing activities and logistics operations to move products through the supply chain.
Prepared Foods: Prepared Foods includes our operations related to manufacturing and marketing frozen and refrigerated food products and logistics operations to move products through the supply chain. Products primarily include pepperoni, bacon, sausage, beef and pork pizza toppings, pizza crusts, flour and corn tortilla products, appetizers, prepared meals, ethnic foods, soups, sauces, side dishes, meat dishes, breadsticks 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 export markets.
International: International includes our foreign operations primarily related to raising and processing live chickens into fresh, frozen and value-added chicken products in Brazil, China, India and Mexico. Products are marketed in each respective country to food retailers, foodservice distributors, restaurant operators, hotel chains, noncommercial foodservice establishments and live markets, as well as to other international export markets.
The results from Dynamic Fuels are included in Other.
Information on segments and a reconciliation to income from continuing operations before income taxes are as follows:
 
in millions
 
 
Chicken

Beef

Pork

Prepared
Foods

International

Other

Intersegment
Sales

Consolidated

Fiscal year ended September 28, 2013
 
 
 
 
 
 
 
 
Sales
$
10,988

$
14,400

$
5,408

$
3,322

$
1,324

$
46

$
(1,114
)
$
34,374

Operating Income
683

296

332

101

(37
)
—

 
1,375

Total Other (Income) Expense
 
 
 
 
 
 
 
118

Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
1,257

Depreciation
251

87

30

61

40

5

 
474

Total Assets
4,944

2,798

931

1,176

876

1,452

 
12,177

Additions to property, plant and equipment
253

105

22

87

58

33

 
558

Fiscal year ended September 29, 2012
 
 
 
 
 
 
 
 
Sales
$
10,270

$
13,755

$
5,510

$
3,237

$
1,104

$
167

$
(988
)
$
33,055

Operating Income (Loss)
554

218

417

181

(70
)
(14
)
 
1,286

Total Other (Income) Expense
 
 
 
 
 
 
 
321

Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
965

Depreciation
228

86

30

54

40

5

 
443

Total Assets
4,934

2,634

895

960

968

1,505

 
11,896

Additions to property, plant and equipment
354

100

32

99

97

8

 
690

Fiscal year ended October 1, 2011
 
 
 
 
 
 
 
 
Sales
$
9,810

$
13,549

$
5,460

$
3,215

$
978

$
127

$
(1,107
)
$
32,032

Operating Income (Loss)
189

468

560

117

(21
)
(24
)
 
1,289

Total Other (Income) Expense
 
 
 
 
 
 
 
211

Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
1,078

Depreciation
226

84

28

58

33

4

 
433

Total Assets
4,593

2,610

960

943

819

1,146

 
11,071

Additions to property, plant and equipment
381

88

27

58

83

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 Chicken segment had sales of $16 million, $6 million and $5 million for fiscal 2013, 2012 and 2011, respectively, from transactions with other operating segments. 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, Prepared Foods, and International 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.