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REPORTING SEGMENTS
 8 Months Ended
Dec. 29, 2013
Segment Reporting [Abstract]  
REPORTING SEGMENTS
REPORTABLE SEGMENTS
Our operating segments are determined on the basis of how we internally report and evaluate financial information used to make operating decisions and assess performance. 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. During all periods presented, our chief operating decision maker has been the President and Chief Executive Officer of the Company.
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 periods indicated. 
 
 
Successor
 
Predecessor
 
 
 
 
 
 
Fiscal Year Ended
 
 
September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
April 28, 2013
 
April 29, 2012
 
May 1, 2011
Packaged meats
 
59
%
 
53
%
 
56
%
 
54
%
 
56
%
Fresh pork (1)
 
41

 
47

 
44

 
46

 
44

 
 
100
%
 
100
%
 
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 894,000 sows producing about 16.2 million market hogs annually. The Hog Production segment produces approximately 53% 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).
The following table shows the percentages of Hog Production segment revenues derived from hogs sold internally and externally, and other products for the periods indicated. 
 
 
Successor
 
Predecessor
 
 
 
 
 
 
Fiscal Year Ended
 
 
September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
April 28, 2013
 
April 29, 2012
 
May 1, 2011
Internal hog sales
 
81
%
 
80
%
 
76
%
 
80
%
 
78
%
External hog sales
 
13

 
13

 
14

 
17

 
19

Other products (1)
 
6

 
7

 
10

 
3

 
3

 
 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
——————————————
(1) 
Consists primarily of grains, feed 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 hog production for the periods indicated. 
 
 
Successor
 
Predecessor
 
 
 
 
 
 
Fiscal Year Ended
 
 
September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
April 28, 2013
 
April 29, 2012
 
May 1, 2011
Packaged meats
 
42
%
 
46
%
 
49
%
 
46
%
 
47
%
Fresh meats (1)
 
57

 
53

 
50

 
53

 
53

Hog production (2)
 
1

 
1

 
1

 
1

 
—

 
 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
——————————————
(1) 
Includes feathers, by-products and rendering.
(2) 
Includes external hog sales and feed.
Other Segment 
The Other segment, contains the results of our former turkey production operations and our previous 49% interest in Butterball, LLC (Butterball), which were sold in December 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 periods 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. 
 
 
Successor
 
Predecessor
 
 
September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
 
(in millions)
Segment Profit Information
 
 
 
 
Sales:
 
 
 
 
Segment sales—
 
 
 
 
Pork
 
$
3,316.2

 
$
4,782.0

Hog Production
 
889.2

 
1,439.1

International
 
428.2

 
643.6

Total segment sales
 
4,633.6

 
6,864.7

Intersegment sales—
 


 


Pork
 
(12.2
)
 
(19.0
)
Hog Production
 
(716.8
)
 
(1,150.3
)
International
 
(10.4
)
 
(15.9
)
Total intersegment sales
 
(739.4
)
 
(1,185.2
)
Consolidated sales
 
$
3,894.2

 
$
5,679.5

 
 
 
 
 
Depreciation and amortization:
 
 

 
 

Pork
 
$
36.3

 
$
60.3

Hog Production
 
10.8

 
28.1

International
 
7.7

 
16.8

Corporate
 
0.6

 
1.3

Consolidated depreciation and amortization
 
$
55.4

 
$
106.5

 
 
 
 
 
Interest expense (income):
 
 

 
 

Pork
 
$
(0.3
)
 
$
(0.7
)
Hog Production
 
53.3

 
83.8

International
 
6.0

 
11.1

Corporate
 
—

 
(29.6
)
Consolidated interest expense
 
$
59.0

 
$
64.6

 
 
 
 
 
Loss (income) from equity method investments
 
 

 
 

Pork
 
$
0.2

 
$
(1.5
)
Hog Production
 
(0.1
)
 
(0.1
)
International
 
2.5

 
2.1

Consolidated loss from equity method investments
 
$
2.6

 
$
0.5

 
 
 
 
 
Operating profit (loss):
 
 

 
 

Pork
 
$
177.7

 
$
98.5

Hog Production
 
(40.6
)
 
81.4

International
 
25.4

 
15.9

Corporate
 
(51.3
)
 
(66.6
)
Consolidated operating profit
 
$
111.2

 
$
129.2

 
 
Predecessor
 
 
Fiscal Year Ended
 
 
April 28, 2013
 
April 29, 2012
 
May 1, 2011
 
 
(in millions)
Segment Profit Information
 
 
 
 
 
 
Sales:
 
 
 
 
 
 
Segment sales—
 
 
 
 
 
 
Pork
 
$
11,076.1

 
$
11,093.0

 
$
10,263.9

Hog Production
 
3,135.1

 
3,052.6

 
2,705.1

International
 
1,468.5

 
1,466.7

 
1,340.7

Other
 
—

 
—

 
74.7

Total segment sales
 
15,679.7

 
15,612.3

 
14,384.4

Intersegment sales—
 
 
 
 
 
 
Pork
 
(41.4
)
 
(37.1
)
 
(30.5
)
Hog Production
 
(2,380.1
)
 
(2,444.6
)
 
(2,113.0
)
International
 
(37.1
)
 
(36.3
)
 
(38.2
)
Total intersegment sales
 
(2,458.6
)
 
(2,518.0
)
 
(2,181.7
)
Consolidated sales
 
$
13,221.1

 
$
13,094.3

 
$
12,202.7

 
 
 
 
 
 
 
Depreciation and amortization:
 
 

 
 

 
 

Pork
 
$
136.1

 
$
127.8

 
$
125.5

Hog Production
 
63.8

 
71.9

 
65.7

International
 
35.8

 
39.9

 
38.1

Other
 
—

 
—

 
0.1

Corporate
 
4.2

 
3.2

 
2.5

Consolidated depreciation and amortization
 
$
239.9

 
$
242.8

 
$
231.9

 
 
 
 
 
 
 
Interest expense (income):
 
 

 
 

 
 

Pork
 
$
(5.5
)
 
$
28.7

 
$
42.4

Hog Production
 
167.0

 
131.8

 
124.5

International
 
28.2

 
29.8

 
28.2

Other
 
—

 
—

 
4.2

Corporate
 
(21.0
)
 
(13.6
)
 
46.1

Consolidated interest expense
 
$
168.7

 
$
176.7

 
$
245.4

 
 
 
 
 
 
 
(Income) loss from equity method investments
 
 

 
 

 
 

Pork
 
$
(1.5
)
 
$
(2.7
)
 
$
(2.0
)
Hog Production
 
0.1

 
0.3

 
(0.4
)
International
 
(13.6
)
 
12.3

 
(46.5
)
Other
 
—

 
—

 
(1.2
)
Consolidated (income) loss from equity method investments
 
$
(15.0
)
 
$
9.9

 
$
(50.1
)
 
 
 
 
 
 
 
Operating profit (loss):
 
 

 
 

 
 

Pork
 
$
631.6

 
$
623.7

 
$
753.4

Hog Production
 
(119.1
)
 
166.1

 
224.4

International
 
108.2

 
42.8

 
115.9

Other
 
—

 
—

 
(2.4
)
Corporate
 
(101.4
)
 
(110.0
)
 
3.7

Consolidated operating profit
 
$
519.3

 
$
722.6

 
$
1,095.0

Segment Asset Information
 
 
 
 
 
 
 
 
 
 
Successor
 
Predecessor
 
 
December 29,
2013
 
April 28,
2013
 
April 29,
2012
 
May 1,
2011
 
 
(in millions)
Total assets:
 
 
 
 
 
 
 
 
Pork
 
$
2,242.8

 
$
2,291.3

 
$
2,245.6

 
$
2,620.2

Hog Production
 
2,132.6

 
2,299.2

 
2,145.4

 
2,074.2

International
 
1,639.7

 
1,703.1

 
1,651.4

 
1,902.3

Corporate
 
2,317.2

 
1,422.8

 
1,379.8

 
1,015.1

Unallocated goodwill (1)
 
1,622.5

 
—

 
—

 
—

Consolidated total assets
 
$
9,954.8

 
$
7,716.4

 
$
7,422.2

 
$
7,611.8

 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 

 
 

 
 

Pork
 
$
19.7

 
$
18.9

 
$
18.6

 
$
17.4

Hog Production
 
3.3

 
3.1

 
2.6

 
2.7

International
 
473.3

 
510.2

 
501.2

 
562.1

Corporate
 
0.2

 
0.2

 
0.2

 
0.3

Consolidated investments
 
$
496.5

 
$
532.4

 
$
522.6

 
$
582.5

 
 
Successor
 
Predecessor
 
 
 
 
 
 
Fiscal Year Ended
 
 
September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
April 28, 2013
 
April 29, 2012
 
May 1, 2011
 
 
(in millions)
Capital expenditures:
 
 
 
 
 
 
 
 
 
 
Pork
 
$
27.1

 
$
80.0

 
$
156.9

 
$
143.5

 
$
81.3

Hog Production
 
37.4

 
51.6

 
90.0

 
89.4

 
68.6

International
 
5.3

 
7.6

 
24.8

 
26.5

 
26.8

Corporate
 
0.1

 
0.6

 
6.3

 
31.3

 
0.1

Consolidated capital expenditures
 
$
69.9

 
$
139.8

 
$
278.0

 
$
290.7

 
$
176.8

——————————————
(1)
As noted in Note 2—Merger and Acquisitions, goodwill recognized as a result of the Merger has not been allocated to our reportable segments as of December 29, 2013.
As noted in the table above, goodwill is unallocated as of December 29, 2013 as a result of the Merger. With the exception of the events noted in Note 2—Merger and Acquisitions and the effect of foreign currency translation during the Predecessor Period, there have been no changes to goodwill during the Transition Period. The following table shows the change in the carrying amount of goodwill by reportable segment for the periods noted: 
 
 
Pork
 
International
 
Hog Production
 
Total
 
 
(in millions)
Predecessor
 
 
 
 
 
 
 
 
Balance, May 1, 2011
 
$
216.1

 
$
157.2

 
$
420.0

 
$
793.3

Other goodwill adjustments (1)
 
(0.4
)
 
(24.7
)
 
—

 
(25.1
)
Balance, April 29, 2012
 
215.7

 
132.5

 
420.0

 
768.2

Acquisition (2)
 
16.4

 
—

 
—

 
16.4

Other goodwill adjustments (1)
 
(0.3
)
 
(1.9
)
 
—

 
(2.2
)
Balance, April 28, 2013
 
$
231.8

 
$
130.6

 
$
420.0

 
$
782.4

——————————————
(1) 
Other goodwill adjustments primarily include the effects of foreign currency translation.
(2) 
See Note 2—Merger and Acquisitions for discussion of acquisition.
The following table presents our consolidated sales attributed to operations by geographic area for the Successor Period, the Predecessor Period and for the fiscal years ended April 28, 2013,  April 29, 2012 and May 1, 2011:
 
 
Successor
 
Predecessor
 
 
 
 
 
 
Fiscal Year Ended
 
 
September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
April 28, 2013
 
April 29, 2012
 
May 1, 2011
 
 
(in millions)
Sales:
 
 
 
 
 
 
 
 
 
 
U.S.
 
$
3,476.4

 
$
5,051.8

 
$
11,789.7

 
$
11,663.9

 
$
10,900.2

International
 
417.8

 
627.7

 
1,431.4

 
1,430.4

 
1,302.5

Total sales
 
$
3,894.2

 
$
5,679.5

 
$
13,221.1

 
$
13,094.3

 
$
12,202.7


The following table presents our long-lived assets attributed to operations by geographic area as of December 29, 2013, April 28, 2013, April 29, 2012 and May 1, 2011:
 
 
Successor
 
Predecessor
 
 
December 29,
2013
 
April 28,
2013
 
April 29,
2012
 
May 1,
2011
 
(in millions)
Long-lived assets:
 
 
 
 

 
 

 
 

U.S.
 
$
5,397.6

 
$
3,032.9

 
$
2,969.1

 
$
2,905.7

International
 
1,053.1

 
1,131.7

 
1,154.1

 
1,368.2

Total long-lived assets
 
$
6,450.7

 
$
4,164.6

 
$
4,123.2

 
$
4,273.9