XML 47 R24.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Segment Reporting | 12 Months Ended
--- | ---
Oct. 25, 2015
Segment Reporting |
Segment Reporting | NOTE P Segment Reporting The Company develops, processes, and distributes a wide array of food products in a variety of markets. The Company reports its results in the following five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, Specialty Foods, and International & Other. The Grocery Products segment consists primarily of the processing, marketing, and sale of shelf-stable food products sold predominantly in the retail market. This segment also includes the results from the Company’s MegaMex joint venture. The Refrigerated Foods segment consists primarily of the processing, marketing, and sale of branded and unbranded pork and beef products for retail, foodservice, and fresh product customers. This segment includes the results of Applegate and Affiliated Foods (Farmer John, Burke, and Dan’s Prize). The Jennie-O Turkey Store segment consists primarily of the processing, marketing, and sale of branded and unbranded turkey products for retail, foodservice, and fresh product customers. The Specialty Foods segment consists of the packaging and sale of private label shelf stable products, nutritional products, sugar, and condiments to industrial, retail, and foodservice customers including the results of Diamond Crystal Brands (DCB), CytoSport/Century Foods International, and Hormel Specialty Products (HSP). As of the end of fiscal year 2015, a portion of DCB is held for sale. The segment operating results for fiscal year 2015 include the related goodwill impairment charge of $21.5 million. See additional discussion regarding the Company’s assets held for sale in Note E. The International & Other segment includes Hormel Foods International which manufactures, markets, and sells Company products internationally. This segment also includes the results from the Company’s international joint ventures. Intersegment sales are recorded at prices that approximate cost and are eliminated in the Consolidated Statements of Operations. The Company does not allocate investment income, interest expense, and interest income to its segments when measuring performance. The Company also retains various other income and unallocated expenses at corporate. Equity in earnings of affiliates is included in segment operating profit; however, earnings attributable to the Company’s noncontrolling interests are excluded. These items are included in the following table as net interest and investment expense (income), general corporate expense, and noncontrolling interest when reconciling to earnings before income taxes. Sales and operating profits for each of the Company’s reportable segments and reconciliation to earnings before income taxes are set forth below. The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations, and sharing of assets. Therefore, the Company does not represent that these segments, if operated independently, would report the operating profit and other financial information shown below.
(in thousands) | 2015 | 2014 | 2013
Net Sales (to unaffiliated |  |  |  |  |  |
customers) |  |  |  |  |  |
Grocery Products |  | $ 1,617,680 |  | $ 1,558,265 |  | $ 1,517,557
Refrigerated Foods |  | 4,372,347 |  | 4,644,179 |  | 4,251,515
Jennie-O Turkey Store |  | 1,635,776 |  | 1,672,452 |  | 1,601,868
Specialty Foods |  | 1,103,359 |  | 907,120 |  | 932,533
International & Other |  | 534,701 |  | 534,240 |  | 448,181
Total |  | $ 9,263,863 |  | $ 9,316,256 |  | $ 8,751,654
Intersegment Sales |  |  |  |  |  |
Grocery Products |  | $ – |  | $ – |  | $ –
Refrigerated Foods |  | 13,058 |  | 23,163 |  | 17,359
Jennie-O Turkey Store |  | 128,195 |  | 144,137 |  | 123,420
Specialty Foods |  | 64 |  | 122 |  | 108
International & Other |  | – |  | – |  | –
Total |  | 141,317 |  | 167,422 |  | 140,887
Intersegment |  |  |  |  |  |
elimination |  | (141,317) |  | (167,422) |  | (140,887)
Total |  | $ – |  | $ – |  | $ –
Segment Net Sales |  |  |  |  |  |
Grocery Products |  | $ 1,617,680 |  | $ 1,558,265 |  | $ 1,517,557
Refrigerated Foods |  | 4,385,405 |  | 4,667,342 |  | 4,268,874
Jennie-O Turkey Store |  | 1,763,971 |  | 1,816,589 |  | 1,725,288
Specialty Foods |  | 1,103,423 |  | 907,242 |  | 932,641
International & Other |  | 534,701 |  | 534,240 |  | 448,181
Intersegment |  |  |  |  |  |
elimination |  | (141,317) |  | (167,422) |  | (140,887)
Total |  | $ 9,263,863 |  | $ 9,316,256 |  | $ 8,751,654
Segment Operating Profit |  |  |  |  |  |
Grocery Products |  | $ 228,582 |  | $ 195,064 |  | $ 213,646
Refrigerated Foods |  | 424,968 |  | 338,020 |  | 232,692
Jennie-O Turkey Store |  | 276,217 |  | 272,362 |  | 222,117
Specialty Foods |  | 93,258 |  | 71,514 |  | 88,873
International & Other |  | 78,318 |  | 84,745 |  | 71,490
Total segment |  |  |  |  |  |
operating profit |  | $ 1,101,343 |  | $ 961,705 |  | $ 828,818
Net interest and |  |  |  |  |  |
investment expense |  |  |  |  |  |
(income) |  | 10,177 |  | 9,468 |  | 7,482
General corporate |  |  |  |  |  |
expense |  | 35,199 |  | 33,434 |  | 26,694
Noncontrolling interest |  | 1,176 |  | 3,349 |  | 3,865
Earnings Before |  |  |  |  |  |
Income Taxes |  | $ 1,057,143 |  | $ 922,152 |  | $ 798,507
(in thousands) | 2015 | 2014 | 2013
Assets |  |  |  |  |  |
Grocery Products |  | $ 1,214,988 |  | $ 1,249,631 |  | $ 1,237,405
Refrigerated Foods |  | 1,973,424 |  | 1,215,694 |  | 1,218,418
Jennie-O Turkey Store |  | 811,693 |  | 857,697 |  | 819,343
Specialty Foods |  | 988,455 |  | 1,013,420 |  | 469,599
International & Other |  | 446,164 |  | 406,249 |  | 361,038
Corporate |  | 705,107 |  | 712,928 |  | 810,077
Total |  | $ 6,139,831 |  | $ 5,455,619 |  | $ 4,915,880
Additions to Property, |  |  |  |  |  |
Plant and Equipment |  |  |  |  |  |
Grocery Products |  | $ 18,104 |  | $ 31,741 |  | $ 10,100
Refrigerated Foods |  | 54,074 |  | 61,183 |  | 58,523
Jennie-O Turkey Store |  | 32,250 |  | 25,761 |  | 22,863
Specialty Foods |  | 5,309 |  | 3,266 |  | 3,606
International & Other |  | 18,576 |  | 4,896 |  | 2,973
Corporate |  | 15,750 |  | 32,291 |  | 8,697
Total |  | $ 144,063 |  | $ 159,138 |  | $ 106,762
Depreciation and |  |  |  |  |  |
Amortization |  |  |  |  |  |
Grocery Products |  | $ 26,972 |  | $ 25,883 |  | $ 22,912
Refrigerated Foods |  | 53,325 |  | 57,709 |  | 57,879
Jennie-O Turkey Store |  | 28,262 |  | 27,091 |  | 26,921
Specialty Foods |  | 11,075 |  | 8,999 |  | 9,232
International & Other |  | 3,372 |  | 3,541 |  | 1,906
Corporate |  | 10,428 |  | 6,821 |  | 6,000
Total |  | $ 133,434 |  | $ 130,044 |  | $ 124,850
The Company’s products primarily consist of meat and other food products. The Perishable category includes fresh meats, frozen items, refrigerated meal solutions, sausages, hams, wieners, guacamole, and bacon (excluding JOTS products). The Poultry category is composed primarily of JOTS products. Shelf-stable includes canned luncheon meats, shelf-stable microwaveable meals, stews, chilies, hash, meat spreads, flour and corn tortillas, salsas, tortilla chips, peanut butter, and other items that do not require refrigeration. The Miscellaneous category primarily consists of nutritional food products and supplements, sugar and sugar substitutes, dessert and drink mixes, and industrial gelatin products. The percentages of total revenues contributed by classes of similar products for the last three fiscal years are as follows:
| Fiscal Year Ended
| October 25, | October 26, | October 27,
| 2015 | 2014 | 2013
Perishable | 53.0% | 54.5% | 53.3%
Poultry | 18.6 | 18.4 | 18.8
Shelf-stable | 18.4 | 19.0 | 19.0
Miscellaneous | 10.0 | 8.1 | 8.9
| 100.0% | 100.0% | 100.0%
Revenues from external customers are classified as domestic or foreign based on the destination where title passes. No individual foreign country is material to the consolidated results. Additionally, the Company’s long-lived assets located in foreign countries are not significant. Total revenues attributed to the U.S. and all foreign countries in total for the last three fiscal years are as follows:
| Fiscal Year Ended
| October 25, | October 26, | October 27,
(in thousands) | 2015 | 2014 | 2013
United States | $ 8,721,722 | $ 8,708,042 | $ 8,193,730
Foreign | 542,141 | 608,214 | 557,924
| $ 9,263,863 | $ 9,316,256 | $ 8,751,654
In fiscal 2015, sales to Wal-Mart Stores, Inc. (Wal-Mart) represented $1.43 billion or 13.9 percent of the Company’s consolidated revenues (measured as gross sales less returns and allowances). In fiscal 2014, sales to Wal-Mart represented $1.43 billion or 14.1 percent of the Company’s consolidated revenues. Wal-Mart is a customer for all five segments of the Company.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration