v3.25.2
REPORTABLE SEGMENTS
 6 Months Ended
Jun. 29, 2025
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS REPORTABLE SEGMENTS
Our reportable segments are determined on the basis of our organizational structure and information that is regularly reviewed by our Chief Operating Decision Maker (“CODM”) for the purpose of making operating and resource allocation decisions and assessing the performance of the operating segments of our business. Our CODM is our Chief Executive Officer. Our CODM reviews assets at a consolidated level; not by reportable segment. Therefore, we do not disclose assets by reportable segment.
The measure of segment profit reviewed by our CODM is operating profit. Our CODM uses operating profit to assess segment performance, compensate employees and allocate capital, personnel and other resources to each segment.
Following the carve-out and distribution of our European operations (see “Note 3: Discontinued Operations”), we conduct our operations through three reportable segments: Packaged Meats, Fresh Pork and Hog Production.
Packaged Meats
The Packaged Meats segment consists of our U.S. operations that process fresh meat into a wide variety of packaged meats products, including bacon, sausage, hot dogs, deli and lunch meats, dry sausage products (such as pepperoni and genoa salami), ham products, ready-to-eat products and prepared foods (such as pre-cooked entrees, bacon and sausage). Approximately 80% of the Packaged Meats segment’s raw materials are sourced from our Fresh Pork segment. We market our domestic packaged meats products under a strategic set of core brands, which include: Smithfield, Eckrich, Nathan’s Famous, Farmland, Armour, Farmer John, Kretschmar, Krakus, John Morrell, Cook’s, Gwaltney, Carando, Margherita, Curly’s and Smithfield Culinary. We also sell a sizeable portion of our packaged meats products as private label products. The majority of the Packaged Meats segment’s products are sold to retail and foodservice customers in the U.S.
Fresh Pork
The Fresh Pork segment consists of our U.S. operations that process live hogs into a wide variety of primal, sub-primal and offal products, such as bellies, butts, hams, loins, picnics and ribs. In the first half of 2025, the Fresh Pork segment sourced approximately 40% of its raw materials from our Hog Production segment, compared to approximately 50% in the first half of 2024, with the remainder from third-party farmers with whom we partner across the U.S. Approximately one-third of our fresh pork products, including the majority of hams, bellies and trimmings, is transferred to our Packaged Meats segment. Externally, we sell our fresh pork products to domestic retail, foodservice and industrial customers, as well as to export markets, including, among others, China, Mexico, Japan, South Korea and Canada.
Hog Production
The Hog Production segment consists of our hog production operations in the U.S., which produce and raise our hogs on numerous Company-owned farms and farms that are owned and operated by third-party contract farmers. Nearly all of the hogs produced by this segment are processed by our Fresh Pork segment. The Hog Production segment also sells grains and feed to external customers.
The following tables provide certain financial information by reportable segment with a reconciliation to the consolidated totals.
Three Months Ended June 29, 2025
Packaged MeatsFresh PorkHog Production
Other (1)
Corporate (2)
Unallocated (3)
Intersegment Consolidated
(in millions)
Sales$2,079 $2,080 $840 $120 $— $— $(1,334)$3,786 
Cost of sales1,690 2,005 808 107 — 11 (1,334)3,288 
Selling, general and administrative expenses87 40 10 6 26 98 — 268 
Operating gains— — — — — (30)— (30)
Operating profit (loss)301 35 22 7 (26)(80)— 260 
Interest expense, net11 11 
Non-operating gains(4)(4)
Income from continuing operations before income taxes$254 
Other segment data:
Depreciation and amortization$33 $28 $14 $7 $— $1 $— $82 
Capital expenditures38 23 13 2 2 — — 78 
Three Months Ended June 30, 2024
Packaged MeatsFresh PorkHog Production
Other (1)
Corporate (2)
Unallocated (3)
Intersegment Consolidated
(in millions)
Sales $1,945 $1,981 $776 $119 $— $— $(1,408)$3,412 
Cost of sales1,518 1,878 766 107 — 24 (1,408)2,885 
Selling, general and administrative expenses97 45 11 5 32 4 — 194 
Operating gains— — — — — (2)— (2)
Operating profit (loss)330 58 (2)7 (32)(27)— 334 
Interest expense, net19 19 
Non-operating gains (2)(2)
Income from continuing operations before income taxes $317 
Other segment data:
Depreciation and amortization $30 $29 $15 $8 $— $— $— $83 
Capital expenditures 37 26 7 6 5 — — 80 
________________
(1)Includes our Mexico and Bioscience operations. Our Mexico operations include the raising of hogs and production of pork products that are sold primarily to customers in Mexico. Our Bioscience operations use raw materials from hogs that we harvest to manufacture heparin products, including an active pharmaceutical ingredient that mitigates the risk of blood clots.
(2)Represents general corporate expenses for management and administration of the business.
(3)Represents certain items that we do not allocate to our segments.
Six Months Ended June 29, 2025
Packaged MeatsFresh PorkHog Production
Other (1)
Corporate (2)
Unallocated (3)
Intersegment Consolidated
(in millions)
Sales$4,103 $4,114 $1,772 $224 $— $— $(2,656)$7,558 
Cost of sales3,356 3,911 1,727 191 — 20 (2,656)6,549 
Selling, general and administrative expenses180 86 22 12 55 111 — 465 
Operating gains— — — — — (39)— (39)
Operating profit (loss)567 117 23 22 (55)(92)— 582 
Interest expense, net22 22 
Non-operating losses2 2 
Income from continuing operations before income taxes$558 
Other segment data:
Depreciation and amortization$66 $55 $28 $13 $1 $3 $— $165 
Capital expenditures78 47 24 4 5 — — 158 
Six Months Ended June 30, 2024
Packaged MeatsFresh PorkHog Production
Other (1)
Corporate (2)
Unallocated (3)
Intersegment Consolidated
(in millions)
Sales $3,944 $3,920 $1,482 $233 $— $— $(2,722)$6,856 
Cost of sales3,139 3,660 1,634 223 — 34 (2,722)5,967 
Selling, general and administrative expenses189 92 24 12 64 13 — 393 
Operating gains— — — — — (3)— (3)
Operating profit (loss)616 168 (176)(2)(64)(44)— 498 
Interest expense, net35 35 
Non-operating gains (6)(6)
Income from continuing operations before income taxes $469 
Other segment data:
Depreciation and amortization $59 $57 $31 $17 $1 $1 $— $165 
Capital expenditures 77 56 19 9 13 — — 173 
________________
(1)Includes our Mexico and Bioscience operations. Our Mexico operations include the raising of hogs and production of pork products that are sold primarily to customers in Mexico. Our Bioscience operations use raw materials from hogs that we harvest to manufacture heparin products, including an active pharmaceutical ingredient that mitigates the risk of blood clots.
(2)Represents general corporate expenses for management and administration of the business.
(3)Represents certain items that we do not allocate to our segments.
The following tables disaggregate our sales to customers by reportable segment and by major distribution channel.
Three Months Ended June 29, 2025
Retail (1)
Foodservice (2)
Exports (3)
Industrial (4)
Other / Unallocated (5)
Total External Sales (6)
Intersegment
Consolidated
(in millions)
Packaged Meats$1,278 $677 $12 $105 $7 $2,079 $— $2,079 
Fresh Pork534 72 397 266 1 1,270 810 2,080 
Hog Production— — — — 317 317 524 840 
Other (7)
— — — — 120 120 — 120 
Intersegment— — — — — — (1,334)(1,334)
Total$1,812 $749 $409 $371 $445 $3,786 $— $3,786 
Three Months Ended June 30, 2024
Retail (1)
Foodservice (2)
Exports (3)
Industrial (4)
Other / Unallocated (5)
Total External Sales (6)
IntersegmentConsolidated
(in millions)
Packaged Meats$1,196 $618 $20 $107 $4 $1,945 $— $1,945 
Fresh Pork514 63 407 252 1 1,237 744 1,981 
Hog Production— — — — 112 112 664 776 
Other (7)
— — — — 119 119 — 119 
Intersegment— — — — — — (1,408)(1,408)
Total$1,709 $680 $428 $359 $236 $3,412 $— $3,412 
________________
(1)Includes national and regional retailers in the U.S. such as grocery supermarket chains, independent grocers and club stores.
(2)Includes foodservice distributors, fast food and other restaurant operators, hotel chains and other institutional customers in the U.S.
(3)Includes exports from the U.S. to international retailers and wholesale distributors primarily in North America, Asia, Latin America and other emerging markets.
(4)Includes sales to industrial customers who use our raw materials in their finished goods production, including prepared meals, pharmaceutical production and pet food.
(5)Includes sales of grain, oilseeds, feed, breeding stock and market hogs, among others, in addition to external sales from our Mexico and Bioscience operations.
(6)Includes external sales from our Mexico operations of $114 million and $105 million in the three months ended June 29, 2025 and June 30, 2024, respectively. All other external sales are sourced from our U.S. operations.
(7)Includes our Mexico and Bioscience operations.
Six Months Ended June 29, 2025
Retail (1)
Foodservice (2)
Exports (3)
Industrial (4)
Other / Unallocated (5)
Total External Sales (6)
Intersegment
Consolidated
(in millions)
Packaged Meats$2,562 $1,275 $43 $215 $9 $4,103 $— $4,103 
Fresh Pork1,017 131 832 532 4 2,517 1,597 4,114 
Hog Production— — — — 714 714 1,059 1,772 
Other (7)
— — — — 224 224 — 224 
Intersegment— — — — — — (2,656)(2,656)
Total$3,579 $1,406 $875 $747 $950 $7,558 $— $7,558 
Six Months Ended June 30, 2024
Retail (1)
Foodservice (2)
Exports (3)
Industrial (4)
Other / Unallocated (5)
Total External Sales (6)
IntersegmentConsolidated
(in millions)
Packaged Meats$2,514 $1,170 $51 $202 $7 $3,944 $— $3,944 
Fresh Pork985 116 830 507 2 2,440 1,479 3,920 
Hog Production— — — — 239 239 1,242 1,482 
Other (7)
— — — — 233 233 — 233 
Intersegment— — — — — — (2,722)(2,722)
Total$3,499 $1,286 $881 $709 $481 $6,856 $— $6,856 
________________
(1)Includes national and regional retailers in the U.S. such as grocery supermarket chains, independent grocers and club stores.
(2)Includes foodservice distributors, fast food and other restaurant operators, hotel chains and other institutional customers in the U.S.
(3)Includes exports from the U.S. to international retailers and wholesale distributors primarily in North America, Asia, Latin America and other emerging markets.
(4)Includes sales to industrial customers who use our raw materials in their finished goods production, including prepared meals, pharmaceutical production and pet food.
(5)Includes sales of grain, oilseeds, feed, breeding stock and market hogs, among others, in addition to external sales from our Mexico and Bioscience operations.
(6)Includes external sales from our Mexico operations of $212 million and $211 million in the six months ended June 29, 2025 and June 30, 2024, respectively. All other external sales are sourced from our U.S. operations.
(7)Includes our Mexico and Bioscience operations.