| Business Segment And Geographic Information |
(16) Business Segment and Geographic Information We operate in the packaged foods industry. Our operating segments are as follows: North America Retail, International, North America Pet, and North America Foodservice. Our North America Retail operating segment reflects business with a wide variety of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, convenience stores, and e-commerce grocery providers. Our product categories in this business segment include ready-to-eat cereals, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, snack bars, fruit snacks, savory snacks, and a wide variety of organic products including ready-to-eat cereal, frozen and shelf-stable vegetables, meal kits, fruit snacks, and snack bars. Our International operating segment consists of retail and foodservice businesses outside of the United States and Canada. Our product categories include super-premium ice cream and frozen desserts, meal kits, salty snacks, snack bars, dessert and baking mixes, shelf-stable vegetables, and pet food products. We also sell super-premium ice cream and frozen desserts directly to consumers through owned retail shops. Our International segment also includes products manufactured in the United States for export, mainly to Caribbean and Latin American markets, as well as products we manufacture for sale to our international joint ventures. Revenues from export activities are reported in the region or country where the end customer is located. Our North America Pet operating segment includes pet food products sold primarily in the United States and Canada in national pet superstore chains, e-commerce retailers, grocery stores, regional pet store chains, mass merchandisers, and veterinary clinics and hospitals. Our product categories include dog and cat food (dry foods, wet foods, and treats) made with whole meats, fruits, vegetables, and other high-quality natural ingredients. Our tailored pet product offerings address specific dietary, lifestyle, and life- stage needs and span different product types, diet types, breed sizes for dogs, life-stages, flavors, product functions, and textures and cuts for wet foods. Our North America Foodservice segment consists of foodservice businesses in the United States and Canada. Our major product categories in our North America Foodservice operating segment are ready-to-eat cereals, snacks, frozen meals, unbaked and fully baked frozen dough products, baking mixes, and bakery flour. Many products we sell are branded to the consumer and nearly all are branded to our customers. We sell to distributors and operators in many customer channels including foodservice, vending, and supermarket bakeries. Our chief operating decision maker (CODM) is the Chairman of the Board and Chief Executive Officer. The CODM predominantly uses segment operating profit in the annual planning process which includes segment operating profit performance targets. The CODM assesses progress against performance targets by comparing segment operating profit actual-to-plan variances on a monthly basis. The performance assessment completed by the CODM is used to determine whether resource allocations require adjustment and contributes to the determination of incentive compensation. Operating profit for these segments excludes unallocated corporate items, gain or loss on divestitures, and restructuring, transformation, impairment, and other exit costs. Results from certain businesses managed by our Strategic Growth Office are included within corporate and other net sales and unallocated corporate items within operating profit. Unallocated corporate items also include corporate overhead expenses, variances to planned North American employee benefits and incentives, certain charitable contributions, restructuring initiative project-related costs, gains and losses on corporate investments, and other items that are not part of our measurement of segment operating performance. These include gains and losses arising from the revaluation of certain grain inventories and gains and losses from mark-to-market valuation of certain commodity positions until passed back to our operating segments. These items affecting operating profit are centrally managed at the corporate level and are excluded from the measure of segment profitability reviewed by executive management. Under our supply chain organization, our manufacturing, warehouse, and distribution activities are substantially integrated across our operations in order to maximize efficiency and productivity. As a result, fixed assets and depreciation and amortization expenses are neither maintained nor available by operating segment. Our operating segment results were as follows: Quarter Ended August 24, 2025 In Millions North America Retail International North America Pet North America Foodservice Total Segment net sales $ 2,625.5 $ 760.2 $ 610.0 $ 516.7 $ 4,512.4 Corporate and other net sales 5.1 Total net sales $ 4,517.5 Cost of sales $ 1,664.5 $ 538.8 $ 368.6 $ 402.3 Selling, general, and 396.8 155.7 128.5 43.8 Segment operating profit $ 564.2 $ 65.7 $ 112.9 $ 70.6 $ 813.4 Unallocated corporate items 125.7 Divestitures gain (1,054.4) Restructuring, transformation, 16.3 Operating profit $ 1,725.8 Quarter Ended August 25, 2024 In Millions North America Retail International North America Pet North America Foodservice Total Segment net sales $ 3,016.6 $ 717.0 $ 576.1 $ 536.2 $ 4,845.9 Corporate and other net sales 2.2 Total net sales $ 4,848.1 Cost of sales $ 1,836.4 $ 548.3 $ 338.1 $ 421.1 Selling, general, and 434.5 147.8 118.6 43.6 Segment operating profit $ 745.7 $ 20.9 $ 119.4 $ 71.5 $ 957.5 Unallocated corporate items 123.8 Restructuring, transformation, 2.2 Operating profit $ 831.5 Net sales for our North America Retail operating units were as follows: Quarter Ended In Millions Aug. 24, 2025 Aug. 25, 2024 U.S. Meals & Baking Solutions $ 921.4 $ 946.3 Big G Cereal & Canada (a) 866.9 1,159.8 U.S. Snacks 837.2 910.5 Total $ 2,625.5 $ 3,016.6 (a) Upon completion of the United States yogurt business divestiture, the former U.S. Morning Foods and Canada operating units were combined into a new Big G Cereal & Canada operating unit. Prior period amounts have been recast to conform to the current period presentation. This did not result in a change to the composition of our reportable segments or information reviewed by our CODM. Net sales by class of similar products were as follows: Quarter Ended In Millions Aug. 24, 2025 Aug. 25, 2024 Snacks $ 1,049.7 $ 1,106.8 Cereal 767.2 793.1 Convenient meals 650.8 678.9 Pet 643.0 604.6 Dough 515.1 517.8 Baking mixes and ingredients 448.0 457.1 Super-premium ice cream 221.4 212.9 Yogurt 102.0 371.9 Other 120.3 105.0 Total $ 4,517.5 $ 4,848.1 |