| Business Segment and Geographic Information | (15) Business Segment and Geographic Information We operate in the packaged foods industry. Our operating segments are as follows: North America Retail; Convenience Stores & Foodservice; Europe & Australia; Asia & Latin America; and Pet. 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, and e-commerce grocery providers. Our product categories in this business segment are ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, grain, fruit and savory snacks, and a wide variety of organic products including refrigerated yogurt, nutrition bars, meal kits, salty snacks, ready-to-eat cereal, and grain snacks. Our major product categories in our Convenience Stores & Foodservice operating segment are ready-to-eat cereals, snacks, refrigerated yogurt, frozen meals, unbaked and fully baked frozen dough products, and baking mixes. 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, convenience stores, vending, and supermarket bakeries in the United States. Our Europe & Australia operating segment reflects retail and foodservice businesses in the greater Europe and Australia regions. Our product categories include refrigerated yogurt, meal kits, super-premium ice cream, refrigerated and frozen dough products, shelf stable vegetables, grain snacks, and dessert and baking mixes. We also sell super-premium ice cream directly to consumers through owned retail shops. Revenues from franchise fees are reported in the region or country where the franchisee is located. Our Asia & Latin America operating segment consists of retail and foodservice businesses in the greater Asia and South America regions. Our product categories include super-premium ice cream and frozen desserts, refrigerated and frozen dough products, dessert and baking mixes, meal kits, salty and grain snacks, wellness beverages, and refrigerated yogurt. We also sell super-premium ice cream and frozen desserts directly to consumers through owned retail shops. Our Asia & Latin America 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 and franchise fees are reported in the region or country where the end customer or franchisee is located. Our Pet operating segment includes pet food products sold primarily in the United States 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 and 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, lifestages, flavors, product functions and textures, and cuts for wet foods. We are reporting the Pet operating segment results on a one-month lag. Operating profit for these segments excludes unallocated corporate items, gain or loss on divestitures, and restructuring, impairment, and other exit costs. Unallocated corporate items include corporate overhead expenses, variances to planned domestic employee benefits and incentives, contributions to the General Mills Foundation, asset and liability remeasurement impact of hyperinflationary economies, restructuring initiative project-related costs, 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 for all operating segments. Our operating segment results were as follows:
Quarter Ended
In Millions Aug. 25, 2019 Aug. 26, 2018
Net sales:
North America Retail $ 2,376.1 $ 2,387.8
Europe & Australia 454.1 500.7
Convenience Stores & Foodservice 445.0 463.2
Pet 367.8 343.3
Asia & Latin America 359.5 399.0
Total $ 4,002.5 $ 4,094.0
Operating profit:
North America Retail $ 559.9 $ 548.1
Europe & Australia 27.6 34.5
Convenience Stores & Foodservice 91.1 97.1
Pet 80.9 14.5
Asia & Latin America 10.1 12.2
Total segment operating profit $ 769.6 $ 706.4
Unallocated corporate items 99.0 106.3
Restructuring, impairment, and other exit costs (recoveries) 8.2 ( 1.4)
Operating profit $ 662.4 $ 601.5 Net sales for our North America Retail operating units were as follows:
Quarter Ended
In Millions Aug. 25, 2019 Aug. 26, 2018
U.S. Meals & Baking $ 830.6 $ 837.5
U.S. Cereal 589.9 584.4
U.S. Snacks 528.2 533.5
U.S. Yogurt and Other 219.2 219.1
Canada 208.2 213.3
Total $ 2,376.1 $ 2,387.8 Net sales by class of similar products were as follows:
Quarter Ended
In Millions Aug. 25, 2019 Aug. 26, 2018
Snacks $ 869.4 $ 887.9
Cereal 685.5 677.1
Convenient meals 569.2 581.9
Yogurt 495.2 514.8
Pet 367.8 343.3
Baking mixes and ingredients 355.7 380.3
Dough 330.6 328.4
Super-premium ice cream 227.2 247.7
Other 101.9 132.6
Total $ 4,002.5 $ 4,094.0 During the first quarter of fiscal 2020, we made certain changes in the classification of products and updated fiscal 2019 net sales figures to match the current-year presentation. |
