v3.26.3
REPORTABLE SEGMENTS
 9 Months Ended
Sep. 27, 2026
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 assessing the performance of the operating segments of our business and making operating and resource allocation decisions. 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. Additionally, while segments are managed separately, our manufacturing and distribution activities are often integrated to optimize cost efficiencies, resulting in jointly utilized assets, including fixed assets, that are not tracked at the segment level. Depreciation and amortization associated with these shared assets are generally allocated to reportable segments.
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.
We conduct our operations through three reportable segments: Packaged Meats, Fresh Pork and Hog Production. We also conduct operations through our Mexico and Bioscience operating segments, which are aggregated and reported as “Other.”
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 bacon, sausage and pre-cooked
entrées). 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. The Fresh Pork segment sources approximately 40% of its raw materials from our Hog Production segment, with the remainder from 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, Mexico, China, 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 contract farmers. Nearly all of the hogs produced by this segment are processed by our Fresh Pork segment. The Hog Production segment also sells livestock feed and grains and provides transportation and other ancillary services to external customers. Approximately 60% of the Hog Production segment’s cost of goods sold is attributable to animal feed, which is derived primarily from corn and soybean meal.
The following tables provide certain financial information by reportable segment with a reconciliation to the consolidated totals.
Three Months Ended
September 27, 2026
Packaged MeatsFresh PorkHog Production
Other (1)
Corporate (2)
Unallocated (3)
Intersegment Consolidated
(in millions)
Sales$1,982 $1,814 $691 $151 $— $— $(1,202)$3,437 
Cost of sales1,653 1,867 649 150 — 7 (1,202)3,124 
Selling, general and administrative expenses100 37 8 6 25 17 — 193 
Operating gains— — — — — (7)— (7)
Operating profit (loss)230 (89)34 (5)(25)(18)— 127 
Interest expense, net6 6 
Non-operating losses1 1 
Income before income taxes$120 
Other segment data:
Depreciation and amortization$34 $28 $13 $7 $— $4 $— $86 
Capital expenditures45 53 14 5 — — — 117 
Three Months Ended
September 28, 2025
Packaged MeatsFresh PorkHog Production
Other (1)
Corporate (2)
Unallocated (3)
Intersegment Consolidated
(in millions)
Sales $2,090 $2,185 $813 $131 $— $— $(1,473)$3,747 
Cost of sales1,770 2,135 714 116 — 5 (1,473)3,268 
Selling, general and administrative expenses95 40 10 5 24 5 — 178 
Operating gains— — — — — (9)— (9)
Operating profit (loss)226 10 89 10 (24)(1)— 310 
Interest expense, net11 11 
Non-operating gains(19)(19)
Income before income taxes$318 
Other segment data:
Depreciation and amortization $33 $27 $14 $7 $— $1 $— $82 
Capital expenditures 41 30 14 3 1 — — 88 
________________
(1)Consists of our Mexico and Bioscience operations. Our Mexico operations raise hogs and produce and sell pork products, including pork products sourced from our Fresh Pork segment, 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)We do not allocate certain items to our operating segments, such as litigation charges, exit and disposal costs, insurance recoveries, gains and losses on the sale of property, plant and equipment and other assets, accelerated depreciation, and employee termination benefits, among others.
Nine Months Ended
September 27, 2026
Packaged MeatsFresh PorkHog Production
Other (1)
Corporate (2)
Unallocated (3)
IntersegmentConsolidated
(in millions)
Sales$6,154 $5,834 $2,232 $478 $— $— $(3,761)$10,937 
Cost of sales5,100 5,715 2,101 455 — 24 (3,761)9,634 
Selling, general and administrative expenses284 116 27 19 78 39 — 564 
Operating gains— — — — — (11)— (11)
Operating profit (loss)770 3 103 4 (78)(52)— 750 
Interest expense, net22 22 
Non-operating gains(15)(15)
Income before income taxes$743 
Other segment data:
Depreciation and amortization$100 $84 $40 $21 $1 $9 $— $255 
Capital expenditures123 110 33 8 7 — — 281 
Nine Months Ended
September 28, 2025
Packaged MeatsFresh PorkHog Production
Other (1)
Corporate (2)
Unallocated (3)
IntersegmentConsolidated
(in millions)
Sales$6,193 $6,299 $2,585 $355 $— $— $(4,129)$11,304 
Cost of sales5,126 6,046 2,442 307 — 25 (4,129)9,817 
Selling, general and administrative expenses275 125 31 17 79 116 — 643 
Operating gains— — — — — (48)— (48)
Operating profit (loss)792 127 112 32 (79)(92)— 892 
Interest expense, net33 33 
Non-operating gains(17)(17)
Income before income taxes$876 
Other segment data:
Depreciation and amortization$99 $82 $42 $20 $1 $4 $— $248 
Capital expenditures119 77 38 7 6 — — 246 
________________
(1)Consists of our Mexico and Bioscience operations. Our Mexico operations raise hogs and produce and sell pork products, including pork products sourced from our Fresh Pork segment, 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)We do not allocate certain items to our operating segments, such as litigation charges, exit and disposal costs, insurance recoveries, gains and losses on the sale of property, plant and equipment and other assets, accelerated depreciation, and employee termination benefits, among others.
The following tables disaggregate our sales to customers by reportable segment and by major distribution channel.
Three Months Ended
September 27, 2026
Retail (1)
Foodservice (2)
Exports (3)
Industrial (4)
Other / Unallocated (5)
Total External Sales (6)
Intersegment
Consolidated
(in millions)
Packaged Meats$1,205 $644 $28 $103 $1 $1,981 $1 $1,982 
Fresh Pork458 73 316 261 1 1,108 707 1,814 
Hog Production— — — — 197 197 494 691 
Other (7)
— — — — 151 151 — 151 
Intersegment— — — — — — (1,202)(1,202)
Total$1,663 $717 $343 $364 $350 $3,437 $— $3,437 
Three Months Ended
September 28, 2025
Retail (1)
Foodservice (2)
Exports (3)
Industrial (4)
Other / Unallocated (5)
Total External Sales (6)
IntersegmentConsolidated
(in millions)
Packaged Meats$1,238 $719 $27 $102 $3 $2,090 $— $2,090 
Fresh Pork506 71 414 284 1 1,275 910 2,185 
Hog Production— — — — 251 251 562 813 
Other (7)
— — — — 131 131 — 131 
Intersegment— — — — — — (1,473)(1,473)
Total$1,744 $790 $442 $386 $386 $3,747 $— $3,747 
________________
(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 $146 million and $129 million for the third quarters of 2026 and 2025, respectively. All other external sales are sourced from our U.S. operations.
(7)Consists of our Mexico and Bioscience operations.
Nine Months Ended
September 27, 2026
Retail (1)
Foodservice (2)
Exports (3)
Industrial (4)
Other / Unallocated (5)
Total External Sales (6)
Intersegment
Consolidated
(in millions)
Packaged Meats$3,820 $1,930 $71 $316 $15 $6,153 $1 $6,154 
Fresh Pork1,486 228 1,092 791 2 3,599 2,235 5,834 
Hog Production— — — — 708 708 1,524 2,232 
Other (7)
— — — — 478 478 — 478 
Intersegment— — — — — — (3,761)(3,761)
Total$5,306 $2,159 $1,163 $1,107 $1,203 $10,937 $— $10,937 
Nine Months Ended
September 28, 2025
Retail (1)
Foodservice (2)
Exports (3)
Industrial (4)
Other / Unallocated (5)
Total External Sales (6)
IntersegmentConsolidated
(in millions)
Packaged Meats$3,800 $1,994 $70 $317 $12 $6,193 $— $6,193 
Fresh Pork1,523 202 1,246 816 5 3,792 2,507 6,299 
Hog Production— — — — 965 965 1,621 2,585 
Other (7)
— — — — 355 355 1 355 
Intersegment— — — — — — (4,129)(4,129)
Total$5,323 $2,195 $1,317 $1,132 $1,336 $11,304 $— $11,304 
________________
(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 $466 million and $341 million for the first nine months of 2026 and 2025, respectively. All other external sales are sourced from our U.S. operations.
(7)Consists of our Mexico and Bioscience operations.