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Segment Reporting | 12 Months Ended
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Oct. 03, 2015
Segment Reporting [Abstract] |
Segment Reporting | SEGMENT REPORTING We operate in four reportable segments: Chicken, Beef, Pork and Prepared Foods. We measure segment profit as operating income (loss). Following the sale of our Mexico and Brazil operations in fiscal 2015 (see Note 3: Acquisitions and Dispositions), we began reporting our international operation, which was previously reported as the International segment, in Other. Other now includes our foreign chicken production operations in China and India and third-party merger and integration costs. All periods presented have been reclassified to reflect this change. Chicken, Beef, Pork and Prepared Foods 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. In fiscal 2014, we completed the acquisition of Hillshire Brands, a manufacturer and marketer of branded, convenient foods which includes brands such as Jimmy Dean®, Ball Park®, Hillshire Farm®, State Fair®, Van's®, Sara Lee® and Chef Pierre® pies as well as artisanal brands Aidells®, Gallo Salame®, and Golden Island® premium jerky. Hillshire Brands' results from operations are reported in the Prepared Foods segment from the date of acquisition. Products primarily include pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, pizza crusts and toppings, flour and corn tortilla products, desserts, 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. We allocate expenses related to corporate activities to the segments, except for third-party merger and integration costs of $47 million and $59 million in fiscal 2015 and 2014, respectively, which are included in Other. Assets and additions to property, plant and equipment relating to corporate activities remain in Other. In addition, at September 27, 2014, we included $4.8 billion of goodwill associated with our acquisition of Hillshire Brands in Other and we completed the allocation of goodwill to our segments in fiscal 2015. See Note 6: Goodwill and Intangible Assets for further description regarding the allocation of goodwill. The results from Dynamic Fuels are also included in Other in fiscal 2014 and fiscal 2013. Information on segments and a reconciliation to income from continuing operations before income taxes are follows:
| in millions |
| Chicken |  |  | Beef |  |  | Pork |  |  | Prepared Foods |  |  | Other |  |  | Intersegment Sales |  |  | Consolidated |
Fiscal 2015 |  |  |  |  |  |  |  |  |  |  |  |  |
Sales | $ | 11,390 |  |  | $ | 17,236 |  |  | $ | 5,262 |  |  | $ | 7,822 |  |  | $ | 879 |  |  | $ | (1,216 | ) |  | $ | 41,373 |
Operating Income (Loss) | 1,366 |  |  | (66 | ) |  | 380 |  |  | 588 |  |  | (99 | ) |  |  |  | 2,169 |
Total Other (Income) Expense |  |  |  |  |  |  |  |  |  |  |  |  | 248 |
Income from Continuing Operations before Income Taxes |  |  |  |  |  |  |  |  |  |  |  |  | 1,921 |
Depreciation and amortization | 272 |  |  | 97 |  |  | 31 |  |  | 280 |  |  | 21 |  |  |  |  | 701 |
Total Assets | 5,731 |  |  | 3,009 |  |  | 927 |  |  | 12,006 |  |  | 1,331 |  |  |  |  | 23,004 |
Additions to property, plant and equipment | 405 |  |  | 113 |  |  | 50 |  |  | 167 |  |  | 119 |  |  |  |  | 854 |
Fiscal 2014 |  |  |  |  |  |  |  |  |  |  |  |  |
Sales | $ | 11,116 |  |  | $ | 16,177 |  |  | $ | 6,304 |  |  | $ | 3,927 |  |  | $ | 1,381 |  |  | $ | (1,325 | ) |  | $ | 37,580 |
Operating Income (Loss) | 883 |  |  | 347 |  |  | 455 |  |  | (60 | ) |  | (195 | ) |  |  |  | 1,430 |
Total Other (Income) Expense |  |  |  |  |  |  |  |  |  |  |  |  | 178 |
Income from Continuing Operations before Income Taxes |  |  |  |  |  |  |  |  |  |  |  |  | 1,252 |
Depreciation and amortization | 253 |  |  | 91 |  |  | 33 |  |  | 95 |  |  | 48 |  |  |  |  | 520 |
Total Assets | 4,807 |  |  | 3,103 |  |  | 965 |  |  | 8,608 |  |  | 6,473 |  |  |  |  | 23,956 |
Additions to property, plant and equipment | 307 |  |  | 115 |  |  | 36 |  |  | 77 |  |  | 97 |  |  |  |  | 632 |
Fiscal 2013 |  |  |  |  |  |  |  |  |  |  |  |  |
Sales | $ | 10,988 |  |  | $ | 14,400 |  |  | $ | 5,408 |  |  | $ | 3,322 |  |  | $ | 1,370 |  |  | $ | (1,114 | ) |  | $ | 34,374 |
Operating Income (Loss) | 683 |  |  | 296 |  |  | 332 |  |  | 101 |  |  | (37 | ) |  |  |  | 1,375 |
Total Other (Income) Expense |  |  |  |  |  |  |  |  |  |  |  |  | 118 |
Income from Continuing Operations before Income Taxes |  |  |  |  |  |  |  |  |  |  |  |  | 1,257 |
Depreciation and amortization | 253 |  |  | 91 |  |  | 31 |  |  | 67 |  |  | 49 |  |  |  |  | 491 |
Total Assets | 4,944 |  |  | 2,798 |  |  | 931 |  |  | 1,176 |  |  | 2,328 |  |  |  |  | 12,177 |
Additions to property, plant and equipment | 253 |  |  | 105 |  |  | 22 |  |  | 87 |  |  | 91 |  |  |  |  | 558 |
The Chicken segment had sales of $18 million, $7 million and $16 million for fiscal 2015, 2014 and 2013, respectively, from transactions with other operating segments. The Pork segment had sales of $847 million, $1.0 billion and $872 million for fiscal 2015, 2014 and 2013, respectively, from transactions with other operating segments. The Beef segment had sales of $351 million, $307 million and $226 million for fiscal 2015, 2014 and 2013, respectively, from transactions with other operating segments. The aforementioned sales from intersegment transactions, which were at market prices, were included in the segment sales in the above table. Our largest customer, Wal-Mart Stores, Inc., accounted for 16.8%, 14.6% and 13.0% of consolidated sales in fiscal 2015, 2014 and 2013, respectively. Sales to Wal-Mart Stores, Inc. were included in all the 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 97%, 96% and 96% of sales to external customers for fiscal 2015, 2014 and 2013, respectively, were sourced from the United States. Approximately $17.4 billion of long-lived assets were located in the United States at October 3, 2015, and September 27, 2014. Excluding goodwill and intangible assets, long-lived assets totaled approximately $5.6 billion and $5.4 billion at October 3, 2015, and September 27, 2014, respectively. Approximately $191 million and $324 million of long-lived assets were located in foreign countries, primarily Brazil, China and India, at October 3, 2015, and September 27, 2014, respectively. Excluding goodwill and intangible assets, long-lived assets in foreign countries totaled approximately $165 million and $272 million at October 3, 2015, and September 27, 2014, respectively. We sell certain products in foreign markets, primarily Brazil, Canada, Central America, China, the European Union, Japan, Mexico, the Middle East, South Korea, and Taiwan. Our export sales from the United States totaled $4.1 billion, $4.7 billion and $4.2 billion for fiscal 2015, 2014 and 2013, 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 2015, 2014 and 2013.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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