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Segment Reporting
 12 Months Ended
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.