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REPORTING SEGMENTS
 12 Months Ended
Dec. 28, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]  
Segment Reporting Disclosure [Text Block]
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.
Prior to the second quarter of 2014, we conducted our operations through four reportable segments: Pork, Hog Production, International and Corporate. Over the past several years, the Pork segment has undergone significant structural change and consolidation. In the second quarter of 2014, two of the largest Pork segment operating companies, The Smithfield Packing Company, Inc. and Farmland Foods, Inc., merged to form Smithfield Farmland Corp (Smithfield Farmland). With this merger, only two large operating companies remain; Smithfield Farmland, which produces both fresh pork and packaged meats, and John Morrell Food Group, which is predominately a packaged meats company. Based on the evolution of the Pork segment over the past several years and the recent merger of Smithfield Farmland, the former Pork segment has been reorganized from an independent operating company structure to a product division structure to more closely align with the way in which the chief operating decision maker (CODM) views the business, assesses segment performance and allocates resources.
Therefore, the former Pork segment now consists of two reportable segments; the Fresh Pork segment and the Packaged Meats segment. As such, beginning with the second quarter of 2014, our reportable segments are: Fresh Pork, Packaged Meats, Hog Production, International and Corporate. The changes to our reportable segments have been applied retrospectively for all periods presented. During all periods presented, our CODM has been the President and Chief Executive Officer of the Company.
Fresh Pork Segment 
The Fresh Pork segment consists of our U.S. fresh pork operations. The Fresh Pork segment processes live hogs and produces a wide variety of fresh pork 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. The Fresh Pork segment processed 27.9 million hogs during 2014.
Packaged Meats Segment 
The Packaged Meats segment consists of our U.S. packaged meats operations. The Packaged Meats segment utilizes fresh pork and other raw meat products to produce a wide variety of packaged meats products in the U.S. and markets them primarily in the U.S. Packaged meats products include smoked and boiled hams, bacon, sausage, hot dogs (pork, beef and chicken), deli and luncheon meats, speciality 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 Packaged Meats segment sales volume totaled 2.8 billion pounds in 2014.
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 and produced 14.7 million hogs in 2014. The Hog Production segment produces approximately 47% of the Fresh Pork segment's live hog requirements.
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
 
 
Twelve Months Ended





Twelve Months Ended
 
 
December 28, 2014

September 27 - December 29, 2013

April 29 - September 26, 2013
 
April 28, 2013
 
April 29, 2012
Internal hog sales
 
85
%
 
81
%
 
80
%
 
76
%
 
80
%
External hog sales
 
8

 
13

 
13

 
14

 
17

Other products (1)
 
7

 
6

 
7

 
10

 
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, poultry and packaged meats products, including cooked hams, sausages, hot dogs, bacon and canned meats. The International segment processed 4.3 million hogs and sold 489.3 million pounds and 533.7 million pounds of packaged meats and fresh pork, respectively, during 2014.
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
 
 
Twelve Months Ended





Twelve Months Ended
 
 
December 28, 2014

September 27 - December 29, 2013

April 29 - September 26, 2013
 
April 28, 2013
 
April 29, 2012
Packaged meats
 
41
%
 
42
%
 
46
%
 
49
%
 
46
%
Fresh meats (1)
 
55

 
57

 
53

 
50

 
53

Hog production (2)
 
4

 
1

 
1

 
1

 
1

 
 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
——————————————
(1) 
Includes feathers, by-products and rendering.
(2) 
Includes external hog and feed sales.
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. 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
 
 
Twelve Months Ended
 
 
 
 
December 28, 2014
 
September 27 - December 29, 2013
 
 
(in millions)
Segment Profit Information
 
 
 
 
Sales:
 
 
 
 
Segment sales—
 
 
 
 
Fresh Pork (1)
 
$
5,780.0

 
$
1,347.3

Packaged Meats
 
7,173.0

 
1,968.9

Hog Production
 
3,384.6

 
889.2

International
 
1,654.0

 
428.2

Total segment sales
 
17,991.6

 
4,633.6

Intersegment sales—
 


 


Fresh Pork (1)
 
(56.4
)
 
(12.0
)
Packaged Meats
 
(0.2
)
 
(0.2
)
Hog Production
 
(2,862.8
)
 
(716.8
)
International
 
(40.9
)
 
(10.4
)
Total intersegment sales
 
(2,960.3
)
 
(739.4
)
Consolidated sales
 
$
15,031.3

 
$
3,894.2

 
 
 
 
 
Depreciation and amortization:
 
 

 
 

Fresh Pork
 
59.8

 
14.3

Packaged Meats
 
89.9

 
22.0

Hog Production
 
47.3

 
10.8

International
 
31.6

 
7.7

Corporate
 
2.2

 
0.6

Consolidated depreciation and amortization
 
$
230.8

 
$
55.4

 
 
 
 
 
Interest (income) expense:
 
 

 
 

Fresh Pork
 
0.3

 
—

Packaged Meats
 
(1.2
)
 
(0.3
)
Hog Production
 
195.9

 
53.3

International
 
12.7

 
6.0

Corporate
 
(48.3
)
 
—

Consolidated interest expense
 
$
159.4

 
$
59.0

 
 
 
 
 
(Income) loss from equity method investments
 
 

 
 

Fresh Pork
 
(1.2
)
 
(0.1
)
Packaged Meats
 
(1.1
)
 
0.3

Hog Production
 
(1.0
)
 
(0.1
)
International
 
(54.9
)
 
2.5

Consolidated (income) loss from equity method investments
 
$
(58.2
)
 
$
2.6

 
 
 
 
 
Operating profit (loss):
 
 

 
 

Fresh Pork
 
96.7

 
96.0

Packaged Meats
 
459.8

 
81.7

Hog Production
 
344.2

 
(40.6
)
International
 
155.8

 
25.4

Corporate
 
(124.9
)
 
(51.3
)
Consolidated operating profit
 
$
931.6

 
$
111.2


——————————————
(1) 
We do not reflect transfers of Fresh Pork to Packaged Meats as sales. In WH Group's segment reporting the Fresh Pork segment includes transfers of fresh pork to the Packaged Meats segment as sales. As such, Fresh Pork segment information reported by WH Group includes an additional $2.4 billion and $601.7 million of sales for the twelve months ended December 28, 2014 and the three months ended December 29, 2013, respectively.

 
 
Predecessor
 
 
 
 
Twelve Months Ended
 
 
April 29 - September 26, 2013
 
April 28, 2013
 
April 29, 2012
 
 
(in millions)
Segment Profit Information
 
 
 
 
 
 
Sales:
 
 
 
 
 
 
Segment sales—
 
 
 
 
 
 
Fresh Pork
 
$
2,240.3

 
$
4,924.1

 
$
5,089.4

Packaged Meats
 
2,541.7

 
6,152.0

 
6,003.6

Hog Production
 
1,439.1

 
3,135.1

 
3,052.6

International
 
643.6

 
1,468.5

 
1,466.7

Total segment sales
 
6,864.7

 
15,679.7

 
15,612.3

Intersegment sales—
 
 
 
 
 
 
Fresh Pork
 
(19.0
)
 
(39.8
)
 
(37.0
)
Packaged Meats
 
—

 
(1.6
)
 
(0.1
)
Hog Production
 
(1,150.3
)
 
(2,380.1
)
 
(2,444.6
)
International
 
(15.9
)
 
(37.1
)
 
(36.3
)
Total intersegment sales
 
(1,166.2
)
 
(2,418.8
)
 
(2,481.0
)
Consolidated sales
 
$
5,679.5

 
$
13,221.1

 
$
13,094.3

 
 
 
 
 
 
 
Depreciation and amortization:
 
 

 
 

 
 

Fresh Pork
 
22.2

 
50.2

 
45.0

Packaged Meats
 
38.1

 
85.9

 
82.8

Hog Production
 
28.1

 
63.8

 
71.9

International
 
16.8

 
35.8

 
39.9

Corporate
 
1.3

 
4.2

 
3.2

Consolidated depreciation and amortization
 
$
106.5

 
$
239.9

 
$
242.8

 
 
 
 
 
 
 
Interest expense (income):
 
 

 
 

 
 

Fresh Pork
 
(0.2
)
 
(2.5
)
 
11.6

Packaged Meats
 
(0.5
)
 
(3.0
)
 
17.1

Hog Production
 
83.8

 
167.0

 
131.8

International
 
11.1

 
28.2

 
29.8

Corporate
 
(29.6
)
 
(21.0
)
 
(13.6
)
Consolidated interest expense
 
$
64.6

 
$
168.7

 
$
176.7

 
 
 
 
 
 
 
(Income) loss from equity method investments
 
 

 
 

 
 

Fresh Pork
 
(0.4
)
 
(0.9
)
 
(1.3
)
Packaged Meats
 
(1.1
)
 
(0.6
)
 
(1.4
)
Hog Production
 
(0.1
)
 
0.1

 
0.3

International
 
2.1

 
(13.6
)
 
12.3

Consolidated (income) loss from equity method investments
 
$
0.5

 
$
(15.0
)
 
$
9.9

 
 
 
 
 
 
 
Operating profit (loss):
 
 

 
 

 
 

Fresh Pork
 
(50.7
)
 
161.6

 
222.0

Packaged Meats
 
149.2

 
470.0

 
401.7

Hog Production
 
81.4

 
(119.1
)
 
166.1

International
 
15.9

 
108.2

 
42.8

Corporate
 
(66.6
)
 
(101.4
)
 
(110.0
)
Consolidated operating profit
 
$
129.2

 
$
519.3

 
$
722.6


Segment Asset Information
 
 
 
 
 
 
 
December 28,
2014
 
December 29,
2013
 
 
 
(in millions)
Total assets:
 
 
 
 
 
Fresh Pork and Packaged Meats (1)
 
$
3,807.5

 
$
3,786.8

 
Hog Production
 
2,142.9

 
2,136.6

 
International
 
1,536.2

 
1,714.2

 
Corporate (2)
 
2,661.0

 
2,317.2

 
Consolidated total assets
 
$
10,147.6

 
$
9,954.8

 
 
 
 
 
 
 
Investments:
 
 
 
 

 
Fresh Pork and Packaged Meats (1)
 
21.1

 
19.7

 
Hog Production
 
3.9

 
3.3

 
International
 
472.8

 
473.3

 
Corporate
 
0.2

 
0.2

 
Consolidated investments
 
$
498.0

 
$
496.5

 
——————————————
(1) 
Given the nature of the Fresh Pork and Packaged Meats operations, many of their assets are shared and not allocated. Accordingly, we have disclosed the assets on a combined basis, consistent with how they are reported to the CODM.
(2)
$1.2 billion of trademarks related to our domestic brands are owned by certain holding companies included within Corporate. Additionally, $660.5 million and $539.0 million of accounts receivable were held by the SPV and included within Corporate as of December 28, 2014 and December 29, 2013, respectively (see Note 7—Debt for further information).
 
 
Successor
 
Predecessor
 
 
Twelve Months Ended
 
 
 
 
 
Twelve Months Ended
 
 
December 28, 2014
 
September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
April 28, 2013
 
April 29, 2012
 
 
(in millions)
Capital expenditures:
 
 
 
 
 
 
 
 
 
 
Fresh Pork and Packaged Meats (1)
 
$
120.9

 
$
27.1

 
$
80.0

 
$
156.9

 
$
143.5

Hog Production
 
132.4

 
37.4

 
51.6

 
90.0

 
89.4

International
 
48.1

 
5.3

 
7.6

 
24.8

 
26.5

Corporate
 
—

 
0.1

 
0.6

 
6.3

 
31.3

Consolidated capital expenditures
 
$
301.4

 
$
69.9

 
$
139.8

 
$
278.0

 
$
290.7

——————————————
(1) 
Given the nature of the Fresh Pork and Packaged Meats operations, many of their assets are shared and not allocated. Accordingly, we have disclosed the capital expenditures on a combined basis, consistent with how they are reported to the CODM.

The following table shows the change in the carrying amount of goodwill by reportable segment for the periods noted: 
 
 
Pork (1)
 
International
 
Hog Production
 
Total
 
 
(in millions)
Predecessor
 
 
 
 
 
 
 
 
Balance, April 28, 2013
 
$
231.8

 
$
130.6

 
$
420.0

 
$
782.4

Acquisition (2)
 
43.5

 
—

 
—

 
43.5

Other goodwill adjustments (3)
 
—

 
2.1

 
—

 
2.1

Balance, September 26, 2013
 
$
275.3

 
$
132.7

 
$
420.0

 
$
828.0

——————————————
(1) 
Predecessor goodwill was allocated to the Pork segment. Upon changing our segments in 2014, to segregate the Fresh Pork and Packaged Meats components into separate reportable segments, we did not reallocate historical goodwill balances to the new segments as it was not practicable to do so.
(2) 
See Note 2—Merger and Acquisitions for discussion of acquisition.
(3) 
Other goodwill adjustments primarily include the effects of foreign currency translation.
 
 
Fresh Pork
 
Packaged Meats
 
International
 
Hog Production
 
Total
 
 
(in millions)
Successor
 
 
 
 
 
 
 
 
 
 
Balance, September 27, 2013
 
$
25.1

 
$
1,518.9

 
$
74.5

 
$
4.0

 
$
1,622.5

Balance, December 29, 2013
 
25.1

 
1,518.9

 
74.5

 
4.0


1,622.5

Purchase accounting adjustments (1)
 
2.3

 
(0.6
)
 
7.4

 
(0.1
)
 
9.0

Other goodwill adjustments (2)
 
4.8

 
—

 
(10.1
)
 
—


(5.3
)
Balance, December 28, 2014
 
$
32.2

 
$
1,518.3

 
$
71.8

 
$
3.9


$
1,626.2

——————————————
(1) 
Purchase accounting adjustments relate to adjustments recognized in connection with the purchase price allocation due to the Merger. We consider these adjustments immaterial to the Successor opening balance sheet and as such, did not retrospectively apply the adjustments to the Successor opening balance sheet.
(2) 
Other goodwill adjustments primarily include the effects of foreign currency translation and an immaterial business acquisition during the second quarter of 2014.
The following table presents our consolidated sales attributed to operations by geographic area for 2014, the three months ended December 29, 2013, the five months ended September 26, 2013, the twelve months ended April 28, 2013 and the twelve months ended April 29, 2012:
 
 
Successor
 
Predecessor
 
 
Twelve Months Ended
 
 
 
 
 
Twelve Months Ended
 
 
December 28, 2014
 
September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
April 28, 2013
 
April 29, 2012
 
 
(in millions)
Sales:
 
 
 
 
 
 
 
 
 
 
U.S.
 
$
13,418.2

 
$
3,476.4

 
$
5,051.8

 
$
11,789.7

 
$
11,663.9

International
 
1,613.1

 
417.8

 
627.7

 
1,431.4

 
1,430.4

Total sales
 
$
15,031.3

 
$
3,894.2

 
$
5,679.5

 
$
13,221.1

 
$
13,094.3


The following table presents our long-lived assets attributed to operations by geographic area as of December 28, 2014 and December 29, 2013:
 
 
December 28,
2014
 
December 29,
2013
 
(in millions)
Long-lived assets:
 
 
 
 

U.S.
 
$
5,402.9

 
$
5,397.6

International
 
996.1

 
1,053.1

Total long-lived assets
 
$
6,399.0

 
$
6,450.7
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]
The following table presents our consolidated sales attributed to operations by geographic area for 2014, the three months ended December 29, 2013, the five months ended September 26, 2013, the twelve months ended April 28, 2013 and the twelve months ended April 29, 2012:
 
 
Successor
 
Predecessor
 
 
Twelve Months Ended
 
 
 
 
 
Twelve Months Ended
 
 
December 28, 2014
 
September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
April 28, 2013
 
April 29, 2012
 
 
(in millions)
Sales:
 
 
 
 
 
 
 
 
 
 
U.S.
 
$
13,418.2

 
$
3,476.4

 
$
5,051.8

 
$
11,789.7

 
$
11,663.9

International
 
1,613.1

 
417.8

 
627.7

 
1,431.4

 
1,430.4

Total sales
 
$
15,031.3

 
$
3,894.2

 
$
5,679.5

 
$
13,221.1

 
$
13,094.3


The following table presents our long-lived assets attributed to operations by geographic area as of December 28, 2014 and December 29, 2013:
 
 
December 28,
2014
 
December 29,
2013
 
(in millions)
Long-lived assets:
 
 
 
 

U.S.
 
$
5,402.9

 
$
5,397.6

International
 
996.1

 
1,053.1

Total long-lived assets
 
$
6,399.0

 
$
6,450.7