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REPORTING SEGMENTS | 12 Months Ended
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Apr. 29, 2012
Segment Reporting [Abstract] |
REPORTING SEGMENTS | REPORTING SEGMENTS Our operating segments are determined on the basis of how we internally report and evaluate financial information used to make operating decisions. For external reporting purposes, we aggregate operating segments which have similar economic characteristics, products, production processes, types or classes of customers and distribution methods into reportable segments based on a combination of factors, including products produced and geographic areas of operations. Our reportable segments are: Pork, Hog Production, International Other and Corporate, each of which is comprised of a number of subsidiaries, joint ventures and other investments. Pork Segment The Pork segment consists mainly of our three wholly-owned U.S. fresh pork and packaged meats subsidiaries: Smithfield Packing, Farmland Foods, Inc. and John Morrell Food Group. The Pork segment produces a wide variety of fresh pork and packaged meats products in the U.S. and markets them nationwide and to numerous foreign markets, including China, Japan, Mexico, Russia and Canada. Fresh pork products include loins, butts, picnics and ribs, among others. Packaged meats products include smoked and boiled hams, bacon, sausage, hot dogs (pork, beef and chicken), deli and luncheon meats, specialty products such as pepperoni, dry meat products, and ready-to-eat, prepared foods such as pre-cooked entrees and pre-cooked bacon and sausage. The following table shows the percentages of Pork segment revenues derived from packaged meats and fresh pork for the fiscal years indicated.
|  | Fiscal Years
|  | 2012 |  | 2011 |  | 2010
Packaged meats |  | 54 | % |  | 56 | % |  | 55 | %
Fresh pork (1) |  | 46 |  |  | 44 |  |  | 45 |
|  | 100 | % |  | 100 | % |  | 100 | %
——————————————
(1) | Includes by-products and rendering.
Hog Production Segment The Hog Production segment consists of our hog production operations located in the U.S. The Hog Production segment operates numerous facilities with approximately 851,000 sows producing about 15.8 million market hogs annually. The Hog Production segment produces approximately 49% of the Pork segment’s live hog requirements. We own certain genetic lines of specialized breeding stock which are marketed using the name Smithfield Premium Genetics (SPG). All SPG hogs are processed internally. The following table shows the percentages of Hog Production segment revenues derived from hogs sold internally and externally, and other products for the fiscal years indicated.
|  | Fiscal Years
|  | 2012 |  | 2011 |  | 2010
Internal hog sales |  | 80 | % |  | 78 | % |  | 77 | %
External hog sales |  | 12 |  |  | 15 |  |  | 15 |
Other products (1) |  | 8 |  |  | 7 |  |  | 8 |
|  | 100 | % |  | 100 | % |  | 100 | %
——————————————
(1) | Consists primarily of feed, non-market hog sales and gains (losses) on derivatives.
International Segment The International segment includes our meat processing and distribution operations in Poland, Romania and the United Kingdom, our interests in meat processing operations, mainly in Western Europe and Mexico, our hog production operations located in Poland and Romania and our interests in hog production operations in Mexico. Our international meat processing operations produce a wide variety of fresh pork, beef, poultry and packaged meats products, including cooked hams, sausages, hot dogs, bacon and canned meats. The following table shows the percentages of International segment revenues derived from packaged meats, fresh meats and other products for the fiscal years indicated.
|  | Fiscal Years
|  | 2012 |  | 2011 |  | 2010
Packaged meats |  | 47 | % |  | 47 | % |  | 48 | %
Fresh meats |  | 43 |  |  | 42 |  |  | 41 |
Other products (1) |  | 10 |  |  | 11 |  |  | 11 |
|  | 100 | % |  | 100 | % |  | 100 | %
——————————————
(1) | Includes external hog sales, feed, feathers, by-products and rendering.
Other Segment The Other segment, contains the results of several recently disposed businesses, including our former turkey production operations and our previous 49% interest in Butterball, LLC (Butterball), which were sold in December 2010 (fiscal 2011), as well as our former live cattle operations, which were sold in the first quarter of fiscal 2010. Corporate Segment The Corporate segment provides management and administrative services to support our other segments. Segment Results The following tables present information about the results of operations and the assets of our reportable segments for the fiscal years presented. The information contains certain allocations of expenses that we deem reasonable and appropriate for the evaluation of results of operations. We do not allocate income taxes to segments. Segment assets exclude intersegment account balances as we believe their inclusion would be misleading or not meaningful. We believe all intersegment sales are at prices that approximate market.
|  | Fiscal Years
|  | 2012 |  | 2011 |  | 2010
|  | (in millions)
Segment Profit Information |  |  |  |  |  |
Sales: |  |  |  |  |  |
Segment sales— |  |  |  |  |  |
Pork |  | $ | 11,093.0 |  |  | $ | 10,263.9 |  |  | $ | 9,326.3 |
Hog Production |  | 3,052.6 |  |  | 2,705.1 |  |  | 2,207.8 |
International |  | 1,466.7 |  |  | 1,340.7 |  |  | 1,277.2 |
Other |  | — |  |  | 74.7 |  |  | 153.3 |
Total segment sales |  | 15,612.3 |  |  | 14,384.4 |  |  | 12,964.6 |
Intersegment sales— |  |  |  |  |  |
Pork |  | (37.1 | ) |  | (30.5 | ) |  | (31.5 | )
Hog Production |  | (2,444.6 | ) |  | (2,113.0 | ) |  | (1,695.0 | )
International |  | (36.3 | ) |  | (38.2 | ) |  | (35.5 | )
Total intersegment sales |  | (2,518.0 | ) |  | (2,181.7 | ) |  | (1,762.0 | )
Consolidated sales |  | $ | 13,094.3 |  |  | $ | 12,202.7 |  |  | $ | 11,202.6 |
Depreciation and amortization: |  |  |  |  |  |  |  |  |
Pork |  | $ | 127.8 |  |  | $ | 125.5 |  |  | $ | 126.0 |
Hog Production |  | 71.9 |  |  | 65.7 |  |  | 74.9 |
International |  | 39.9 |  |  | 38.1 |  |  | 37.4 |
Other |  | — |  |  | 0.1 |  |  | 0.2 |
Corporate |  | 3.2 |  |  | 2.5 |  |  | 3.8 |
Consolidated depreciation and amortization |  | $ | 242.8 |  |  | $ | 231.9 |  |  | $ | 242.3 |
Interest expense: |  |  |  |  |  |  |  |  |
Pork |  | $ | 28.7 |  |  | $ | 42.4 |  |  | $ | 48.9 |
Hog Production |  | 131.8 |  |  | 124.5 |  |  | 100.5 |
International |  | 29.8 |  |  | 28.2 |  |  | 37.7 |
Other |  | — |  |  | 4.2 |  |  | 6.9 |
Corporate |  | (13.6 | ) |  | 46.1 |  |  | 72.4 |
Consolidated interest expense |  | $ | 176.7 |  |  | $ | 245.4 |  |  | $ | 266.4 |
Loss (income) from equity method investments |  |  |  |  |  |  |  |  |
Pork |  | $ | (2.7 | ) |  | $ | (2.0 | ) |  | $ | (3.6 | )
Hog Production |  | 0.3 |  |  | (0.4 | ) |  | 0.7 |
International |  | 12.3 |  |  | (46.5 | ) |  | (17.2 | )
Other |  | — |  |  | (1.2 | ) |  | (18.5 | )
Consolidated loss (income) from equity method investments |  | $ | 9.9 |  |  | $ | (50.1 | ) |  | $ | (38.6 | )
Operating profit: |  |  |  |  |  |  |  |  |
Pork |  | $ | 623.7 |  |  | $ | 753.4 |  |  | $ | 538.7 |
Hog Production |  | 166.1 |  |  | 224.4 |  |  | (539.2 | )
International |  | 42.8 |  |  | 115.9 |  |  | 127.9 |
Other |  | — |  |  | (2.4 | ) |  | 3.6 |
Corporate |  | (110.0 | ) |  | 3.7 |  |  | (68.2 | )
Consolidated operating profit |  | $ | 722.6 |  |  | $ | 1,095.0 |  |  | $ | 62.8 |
|  | April 29, 2012 |  | May 1, 2011 |  | May 2, 2010
|  | (in millions)
Segment Asset Information |  |  |  |  |  |
Total assets: |  |  |  |  |  |
Pork |  | $ | 2,245.6 |  |  | $ | 2,620.2 |  |  | $ | 2,579.3 |
Hog Production |  | 2,145.4 |  |  | 2,074.2 |  |  | 2,020.9 |
International |  | 1,651.4 |  |  | 1,902.3 |  |  | 1,670.1 |
Other |  | — |  |  | — |  |  | 169.4 |
Corporate |  | 1,379.8 |  |  | 1,015.1 |  |  | 1,269.2 |
Consolidated total assets |  | $ | 7,422.2 |  |  | $ | 7,611.8 |  |  | $ | 7,708.9 |
Investments: |  |  |  |  |  |  |  |  |
Pork |  | $ | 18.6 |  |  | $ | 17.4 |  |  | $ | 17.1 |
Hog Production |  | 2.6 |  |  | 2.7 |  |  | 2.4 |
International |  | 501.2 |  |  | 562.1 |  |  | 498.7 |
Other |  | — |  |  | — |  |  | 106.7 |
Corporate |  | 0.2 |  |  | 0.3 |  |  | 0.1 |
Consolidated investments |  | $ | 522.6 |  |  | $ | 582.5 |  |  | $ | 625.0 |
Capital expenditures: |  |  |  |  |  |  |  |  |
Pork |  | $ | 143.5 |  |  | $ | 81.3 |  |  | $ | 141.7 |
Hog Production |  | 89.4 |  |  | 68.6 |  |  | 10.0 |
International |  | 26.5 |  |  | 26.8 |  |  | 22.1 |
Corporate |  | 31.3 |  |  | 0.1 |  |  | 0.9 |
Consolidated capital expenditures |  | $ | 290.7 |  |  | $ | 176.8 |  |  | $ | 174.7 |
The following table shows the change in the carrying amount of goodwill by reportable segment:
|  | Pork |  | International |  | Hog Production |  | Other |  | Total
|  | (in millions)
Balance, May 2, 2010 |  | $ | 216.5 |  |  | $ | 141.4 |  |  | $ | 445.5 |  |  | $ | 19.5 |  |  | $ | 822.9 |
Disposals (1) |  | — |  |  | — |  |  | (25.5 | ) |  | (19.5 | ) |  | (45.0 | )
Other goodwill adjustments (2) |  | (0.4 | ) |  | 15.8 |  |  | — |  |  | — |  |  | 15.4 |
Balance, May 1, 2011 |  | 216.1 |  |  | 157.2 |  |  | 420.0 |  |  | — |  |  | 793.3 |
Other goodwill adjustments (2) |  | (0.4 | ) |  | (24.7 | ) |  | — |  |  | — |  |  | (25.1 | )
Balance, April 29, 2012 |  | $ | 215.7 |  |  | $ | 132.5 |  |  | $ | 420.0 |  |  | $ | — |  |  | $ | 768.2 |
——————————————
(1) | See Note 3—Impairment and Disposal of Long-lived Assets for discussion of disposals and impairments.
(2) | Other goodwill adjustments primarily include the effects of foreign currency translation.
The following table presents our consolidated sales and long-lived assets attributed to operations by geographic area for the fiscal years ended April 29, 2012, May 1, 2011 and May 2, 2010:
|  | Fiscal Years
|  | 2012 |  | 2011 |  | 2010
|  | (in millions)
Sales: |  |  |  |  |  |
U.S. |  | $ | 11,663.9 |  |  | $ | 10,900.2 |  |  | $ | 9,960.9 |
International |  | 1,430.4 |  |  | 1,302.5 |  |  | 1,241.7 |
Total sales |  | $ | 13,094.3 |  |  | $ | 12,202.7 |  |  | $ | 11,202.6 |
|  | April 29, 2012 |  | May 1, 2011 |  | May 2, 2010
| (in millions)
Long-lived assets: |  |  |  |  |  |  |  |  |
U.S. |  | $ | 2,969.1 |  |  | $ | 2,905.7 |  |  | $ | 3,142.1 |
International |  | 1,154.1 |  |  | 1,368.2 |  |  | 1,246.5 |
Total long-lived assets |  | $ | 4,123.2 |  |  | $ | 4,273.9 |  |  | $ | 4,388.6 |

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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 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: 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=6534315&loc=d3e8906-108599 Reference 3: 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=6534315&loc=d3e8933-108599 Reference 4: 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=6534315&loc=d3e8984-108599 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=6534315&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 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: 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=6534315&loc=d3e9054-108599 Reference 8: 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=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: 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=6534315&loc=d3e8981-108599 Reference 11: 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=6534315&loc=d3e8971-108599 Reference 12: 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=6534315&loc=d3e8844-108599 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=6534315&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 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: 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=6534315&loc=d3e9038-108599 + Details
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