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REPORTING SEGMENTS
 12 Months Ended
Jan. 03, 2016
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. Our reportable segments are: Fresh Pork, Packaged Meats, Hog Production, International and Corporate. During all periods presented, our Chief Operating Decision Maker (CODM) has been the 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 30.5 million hogs during 2015.
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 3.0 billion pounds in 2015.
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 897,000 sows and produced 15.9 million hogs in 2015. 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
 
 
January 3, 2016

December 28, 2014

September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
April 28, 2013
Internal hog sales
 
76
%
 
79
%
 
81
%
 
80
%
 
77
%
External hog sales
 
12

 
14

 
12

 
13

 
15

Other products (1)
 
12

 
7

 
7

 
7

 
8

 
 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
——————————————
(1) 
Consists primarily of grains.
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 in Mexico, our hog production operations located in Poland and Romania, our interests in hog production operations in Mexico, and our former investment in CFG. 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 4.6 million hogs and sold 463.2 million pounds and 826.7 million pounds of packaged meats and fresh meats, respectively, during 2015.
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
 
 
January 3, 2016

December 28, 2014

September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
April 28, 2013
Packaged meats
 
43
%
 
41
%
 
42
%
 
46
%
 
49
%
Fresh meats (1)
 
54

 
55

 
57

 
53

 
50

Hog production (2)
 
3

 
4

 
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
 
 
January 3, 2016
 
December 28, 2014
 
 
(in millions)
Segment Profit Information
 
 
 
 
Sales:
 
 
 
 
Segment sales—
 
 
 
 
Fresh Pork (1)
 
$
5,089.9

 
$
5,780.0

Packaged Meats
 
7,089.1

 
7,173.0

Hog Production
 
3,069.7

 
3,384.6

International
 
1,422.8

 
1,654.0

Total segment sales
 
16,671.5

 
17,991.6

Intersegment sales—
 


 


Fresh Pork (1)
 
(59.4
)
 
(56.4
)
Packaged Meats
 
(0.1
)
 
(0.2
)
Hog Production
 
(2,129.4
)
 
(2,862.8
)
International
 
(44.2
)
 
(40.9
)
Total intersegment sales
 
(2,233.1
)
 
(2,960.3
)
Consolidated sales
 
$
14,438.4

 
$
15,031.3

 
 
 
 
 
Depreciation and amortization:
 
 

 
 

Fresh Pork
 
62.9

 
59.8

Packaged Meats
 
91.0

 
89.9

Hog Production
 
47.9

 
47.3

International
 
30.3

 
31.6

Corporate
 
2.0

 
2.2

Consolidated depreciation and amortization
 
$
234.1

 
$
230.8

 
 
 
 
 
Interest (income) expense:
 
 

 
 

Fresh Pork
 
—

 
0.3

Packaged Meats
 
(1.3
)
 
(1.2
)
Hog Production
 
203.9

 
195.9

International
 
8.7

 
12.7

Corporate
 
(77.5
)
 
(48.3
)
Consolidated interest expense
 
$
133.8

 
$
159.4

 
 
 
 
 
(Income) loss from equity method investments
 
 

 
 

Fresh Pork
 
(0.8
)
 
(1.2
)
Packaged Meats
 
(1.6
)
 
(1.1
)
Hog Production
 
0.3

 
(1.0
)
International
 
(9.6
)
 
(54.9
)
Consolidated (income) loss from equity method investments
 
$
(11.7
)
 
$
(58.2
)
 
 
 
 
 
Operating profit (loss):
 
 

 
 

Fresh Pork
 
177.3

 
96.7

Packaged Meats
 
673.3

 
459.8

Hog Production
 
19.7

 
344.2

International
 
66.1

 
155.8

Corporate
 
(142.6
)
 
(124.9
)
Consolidated operating profit
 
$
793.8

 
$
931.6


——————————————
(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 $1.9 billion, $2.4 billion and $0.6 billion of sales for 2015, 2014 and the three months ended December 29, 2013, respectively.

 
 
Successor
 
Predecessor
 
 
 
 
 
 
Twelve Months Ended
 
 
September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
April 28, 2013
 
 
(in millions)
Segment Profit Information
 
 
 
 
 
 
Sales:
 
 
 
 
 
 
Segment sales—
 
 
 
 
 
 
Fresh Pork
 
$
1,347.3

 
$
2,240.3

 
$
4,924.1

Packaged Meats
 
1,968.9

 
2,541.7

 
6,152.0

Hog Production
 
889.2

 
1,439.1

 
3,135.1

International
 
428.2

 
643.6

 
1,468.5

Total segment sales
 
4,633.6

 
6,864.7

 
15,679.7

Intersegment sales—
 
 
 
 
 
 
Fresh Pork
 
(12.0
)
 
(19.0
)
 
(39.8
)
Packaged Meats
 
(0.2
)
 
—

 
(1.6
)
Hog Production
 
(716.8
)
 
(1,150.3
)
 
(2,380.1
)
International
 
(10.4
)
 
(15.9
)
 
(37.1
)
Total intersegment sales
 
(739.4
)
 
(1,166.2
)
 
(2,418.8
)
Consolidated sales
 
$
3,894.2

 
$
5,679.5

 
$
13,221.1

 
 
 
 
 
 
 
Depreciation and amortization:
 
 

 
 

 
 

Fresh Pork
 
14.3

 
22.2

 
50.2

Packaged Meats
 
22.0

 
38.1

 
85.9

Hog Production
 
10.8

 
28.1

 
63.8

International
 
7.7

 
16.8

 
35.8

Corporate
 
0.6

 
1.3

 
4.2

Consolidated depreciation and amortization
 
$
55.4

 
$
106.5

 
$
239.9

 
 
 
 
 
 
 
Interest expense (income):
 
 

 
 

 
 

Fresh Pork
 
—

 
(0.2
)
 
(2.5
)
Packaged Meats
 
(0.3
)
 
(0.5
)
 
(3.0
)
Hog Production
 
53.3

 
83.8

 
167.0

International
 
6.0

 
11.1

 
28.2

Corporate
 
—

 
(29.6
)
 
(21.0
)
Consolidated interest expense
 
$
59.0

 
$
64.6

 
$
168.7

 
 
 
 
 
 
 
(Income) loss from equity method investments
 
 

 
 

 
 

Fresh Pork
 
(0.1
)
 
(0.4
)
 
(0.9
)
Packaged Meats
 
0.3

 
(1.1
)
 
(0.6
)
Hog Production
 
(0.1
)
 
(0.1
)
 
0.1

International
 
2.5

 
2.1

 
(13.6
)
Consolidated (income) loss from equity method investments
 
$
2.6

 
$
0.5

 
$
(15.0
)
 
 
 
 
 
 
 
Operating profit (loss):
 
 

 
 

 
 

Fresh Pork
 
96.0

 
(50.7
)
 
161.6

Packaged Meats
 
81.7

 
149.2

 
470.0

Hog Production
 
(40.6
)
 
81.4

 
(119.1
)
International
 
25.4

 
15.9

 
108.2

Corporate
 
(51.3
)
 
(66.6
)
 
(101.4
)
Consolidated operating profit
 
$
111.2

 
$
129.2

 
$
519.3


Segment Asset Information
 
 
 
 
 
 
 
January 3,
2016
 
December 28,
2014
 
 
 
(in millions)
Total assets:
 
 
 
 
 
Fresh Pork and Packaged Meats (1)
 
$
3,812.5

 
$
3,807.5

 
Hog Production
 
2,138.8

 
2,142.9

 
International
 
1,135.5

 
1,536.2

 
Corporate (2)
 
2,807.2

 
2,644.9

 
Consolidated total assets
 
$
9,894.0

 
$
10,131.5

 
 
 
 
 
 
 
Investments:
 
 
 
 

 
Fresh Pork and Packaged Meats (1)
 
22.2

 
21.1

 
Hog Production
 
3.5

 
3.9

 
International
 
116.6

 
472.8

 
Corporate
 
0.2

 
0.2

 
Consolidated investments
 
$
142.5

 
$
498.0

 
——————————————
(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, $626.7 million and $660.5 million of accounts receivable were held by the SPV and included within Corporate as of January 3, 2016 and December 28, 2014, respectively (see Note 7—Debt for further information).
 
 
Successor
 
Predecessor
 
 
Twelve Months Ended
 
 
 
 
 
Twelve Months Ended
 
 
January 3, 2016
 
December 28, 2014
 
September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
April 28, 2013
 
 
(in millions)
Capital expenditures:
 
 
 
 
 
 
 
 
 
 
Fresh Pork and Packaged Meats (1)
 
$
202.3

 
$
120.9

 
$
27.1

 
$
80.0

 
$
156.9

Hog Production
 
102.5

 
132.4

 
37.4

 
51.6

 
90.0

International
 
62.3

 
48.1

 
5.3

 
7.6

 
24.8

Corporate
 
8.1

 
—

 
0.1

 
0.6

 
6.3

Consolidated capital expenditures
 
$
375.2

 
$
301.4

 
$
69.9

 
$
139.8

 
$
278.0

——————————————
(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: 
 
 
Fresh Pork
 
Packaged Meats
 
International
 
Hog Production
 
Total
 
 
(in millions)
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

Other goodwill adjustments (2)
 
—

 
—

 
(6.7
)
 
—

 
(6.7
)
Balance, January 3, 2016
 
$
32.2

 
$
1,518.3

 
$
65.1

 
$
3.9

 
$
1,619.5

——————————————
(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 the periods noted:
 
 
Successor
 
Predecessor
 
 
Twelve Months Ended
 
 
 
 
 
Twelve Months Ended
 
 
January 3, 2016
 
December 28, 2014
 
September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
April 28, 2013
 
 
(in millions)
Sales:
 
 
 
 
 
 
 
 
 
 
U.S.
 
$
13,059.8

 
$
13,418.2

 
$
3,476.4

 
$
5,051.8

 
$
11,789.7

International
 
1,378.6

 
1,613.1

 
417.8

 
627.7

 
1,431.4

Total sales
 
$
14,438.4

 
$
15,031.3

 
$
3,894.2

 
$
5,679.5

 
$
13,221.1


The following table presents our long-lived assets attributed to operations by geographic area as of January 3, 2016 and December 28, 2014:
 
 
January 3,
2016
 
December 28,
2014
 
(in millions)
Long-lived assets:
 
 
 
 

U.S.
 
$
5,169.4

 
$
5,386.8

International
 
983.6

 
996.1

Total long-lived assets
 
$
6,153.0

 
$
6,382.9
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 the periods noted:
 
 
Successor
 
Predecessor
 
 
Twelve Months Ended
 
 
 
 
 
Twelve Months Ended
 
 
January 3, 2016
 
December 28, 2014
 
September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
April 28, 2013
 
 
(in millions)
Sales:
 
 
 
 
 
 
 
 
 
 
U.S.
 
$
13,059.8

 
$
13,418.2

 
$
3,476.4

 
$
5,051.8

 
$
11,789.7

International
 
1,378.6

 
1,613.1

 
417.8

 
627.7

 
1,431.4

Total sales
 
$
14,438.4

 
$
15,031.3

 
$
3,894.2

 
$
5,679.5

 
$
13,221.1


The following table presents our long-lived assets attributed to operations by geographic area as of January 3, 2016 and December 28, 2014:
 
 
January 3,
2016
 
December 28,
2014
 
(in millions)
Long-lived assets:
 
 
 
 

U.S.
 
$
5,169.4

 
$
5,386.8

International
 
983.6

 
996.1

Total long-lived assets
 
$
6,153.0

 
$
6,382.9