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Segment Reporting | 12 Months Ended
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Oct. 30, 2016
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 Foods, LLC joint venture. The Refrigerated Foods segment consists primarily of the processing, marketing, and sale of branded and unbranded pork, beef, chicken, and turkey products for retail, foodservice, and fresh product customers. 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 processing, marketing, and sale of nutritional and private label shelf-stable products to retail, foodservice, and industrial customers. 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 below 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) | 2016 | 2015 | 2014
Net Sales (to unaffiliated customers) |  |  |
Grocery Products | $ 1,684,756 | $ 1,617,680 | $ 1,558,265
Refrigerated Foods | 4,647,173 | 4,372,347 | 4,644,179
Jennie-O Turkey Store | 1,740,968 | 1,635,776 | 1,672,452
Specialty Foods | 939,134 | 1,103,359 | 907,120
International & Other | 511,193 | 534,701 | 534,240
Total | $ 9,523,224 | $ 9,263,863 | $ 9,316,256
Intersegment Sales |  |  |
Grocery Products | $ – | $ – | $ –
Refrigerated Foods | 11,341 | 13,058 | 23,163
Jennie-O Turkey Store | 120,742 | 128,195 | 144,137
Specialty Foods | 26 | 64 | 122
International & Other | – | – | –
Total | 132,109 | 141,317 | 167,422
Intersegment elimination | (132,109) | (141,317) | (167,422)
Total | $ – | $ – | $ –
Segment Net Sales |  |  |
Grocery Products | $ 1,684,756 | $ 1,617,680 | $ 1,558,265
Refrigerated Foods | 4,658,514 | 4,385,405 | 4,667,342
Jennie-O Turkey Store | 1,861,710 | 1,763,971 | 1,816,589
Specialty Foods | 939,160 | 1,103,423 | 907,242
International & Other | 511,193 | 534,701 | 534,240
Intersegment elimination | (132,109) | (141,317) | (167,422)
Total | $ 9,523,224 | $ 9,263,863 | $ 9,316,256
Segment Operating Profit |  |  |
Grocery Products | $ 268,461 | $ 228,582 | $ 195,064
Refrigerated Foods | 585,652 | 424,968 | 338,020
Jennie-O Turkey Store | 329,427 | 276,217 | 272,362
Specialty Foods | 110,917 | 93,258 | 71,514
International & Other | 78,409 | 78,318 | 84,745
Total segment operating profit | $ 1,372,866 | $ 1,101,343 | $ 961,705
Net interest and investment expense (income) | 6,680 | 10,177 | 9,468
General corporate expense | 49,436 | 35,199 | 33,434
Noncontrolling interest | 465 | 1,176 | 3,349
Earnings Before Income Taxes | $ 1,317,215 | $ 1,057,143 | $ 922,152
(in thousands) | 2016 | 2015 | 2014
Assets |  |  |
Grocery Products | $ 1,472,316 | $ 1,214,988 | $ 1,249,631
Refrigerated Foods | 1,999,821 | 1,973,424 | 1,215,694
Jennie-O Turkey Store | 882,812 | 811,693 | 857,697
Specialty Foods | 837,107 | 988,455 | 1,013,420
International & Other | 479,394 | 446,164 | 406,249
Corporate | 698,617 | 705,107 | 712,928
Total | $ 6,370,067 | $ 6,139,831 | $ 5,455,619
Additions to Property, Plant and Equipment |  |  |
Grocery Products | $ 15,830 | $ 18,104 | $ 31,741
Refrigerated Foods | 93,430 | 54,074 | 61,183
Jennie-O Turkey Store | 61,340 | 32,250 | 25,761
Specialty Foods | 5,372 | 5,309 | 3,266
International & Other | 44,407 | 18,576 | 4,896
Corporate | 35,145 | 15,750 | 32,291
Total | $ 255,524 | $ 144,063 | $ 159,138
Depreciation and Amortization |  |  |
Grocery Products | $ 29,725 | $ 26,972 | $ 25,883
Refrigerated Foods | 53,229 | 53,325 | 57,709
Jennie-O Turkey Store | 29,225 | 28,262 | 27,091
Specialty Foods | 5,165 | 11,075 | 8,999
International & Other | 3,969 | 3,372 | 3,541
Corporate | 10,655 | 10,428 | 6,821
Total | $ 131,968 | $ 133,434 | $ 130,044
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, guacamole, and bacon (excluding JOTS products). The Poultry category is composed primarily of JOTS products. Shelf-stable includes canned luncheon meats, peanut butter, chilies, shelf-stable microwaveable meals, hash, stews, salsas, flour and corn tortillas, tortilla chips, 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 30, | October 25, | October 26,
| 2016 | 2015 | 2014
Perishable | 53.1% | 53.0% | 54.5%
Poultry | 20.5 | 18.6 | 18.4
Shelf-stable | 18.2 | 18.4 | 19.0
Miscellaneous | 8.2 | 10.0 | 8.1
| 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 30, | October 25, | October 26,
(in thousands) | 2016 | 2015 | 2014
United States | $ 9,012,797 | $ 8,721,722 | $ 8,708,042
Foreign | 510,427 | 542,141 | 608,214
| $ 9,523,224 | $ 9,263,863 | $ 9,316,256
In fiscal year 2016, sales to Wal-Mart Stores, Inc. (Wal-Mart) represented $1.45 billion or 13.7 percent of the Company’s consolidated revenues (measured as gross sales less returns and allowances). In fiscal year 2015, sales to Wal-Mart represented $1.43 billion or 13.9 percent of the Company’s consolidated revenues. Wal-Mart is a customer for all five segments of the Company.

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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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&loc=d3e8906-108599 + Details
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