Hormel Foods 2014 Annual Report Download - page 62

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(in thousands) 2014 2013 2012
Assets
Grocery Products $ 1,249,631 $ 1,237,405 $ 683,601
Refrigerated Foods 1,215,694 1,218,418 1,171,161
Jennie-O Turkey Store 857,697 819,343 857,682
Specialty Foods 1,013,420 469,599 506,237
International & Other 406,249 361,038 224,847
Corporate 712,928 810,077 1,120,438
Total $ 5,455,619 $ 4,915,880 $ 4,563,966
Additions to Property,
Plant and Equipment
Grocery Products $ 31,741 $ 10,100 $ 17,966
Refrigerated Foods 61,183 58,523 67,003
Jennie-O Turkey Store 25,761 22,863 33,594
Specialty Foods 3,266 3,606 3,779
International & Other 4,896 2,973 2,794
Corporate 32,291 8,697 7,167
Total $ 159,138 $ 106,762 $ 132,303
Depreciation and
Amortization
Grocery Products $ 25,883 $ 22,912 $ 15,870
Refrigerated Foods 57,709 57,879 60,229
Jennie-O Turkey Store 27,091 26,921 26,144
Specialty Foods 8,999 9,232 9,871
International & Other 3,541 1,906 1,437
Corporate 6,821 6,000 5,943
Total $ 130,044 $ 124,850 $ 119,494
The Company’s products primarily consist of meat and other
food products. The Perishable category includes fresh meats,
frozen items, refrigerated meal solutions, sausages, hams,
wieners, and bacon (excluding JOTS products). Shelf-stable
includes canned luncheon meats, shelf-stable microwaveable
meals, stews, chilies, hash, meat spreads, flour and corn tor-
tillas, salsas, tortilla chips, peanut butter, and other items that
do not require refrigeration. The Poultry category is composed
primarily of JOTS products. The Other category primarily
consists of nutritional food products and supplements, sugar
and sugar substitutes, dessert and drink mixes, and industrial
Sales and operating profits for each of the Company’s report-
able segments and reconciliation to earnings before income
taxes are set forth below. The Company is an integrated
enterprise, characterized by substantial intersegment coop-
eration, cost allocations, and sharing of assets. Therefore, the
Company does not represent that these segments, if operated
independently, would report the operating profit and other
financial information shown below.
(in thousands) 2014 2013 2012
Net Sales (to unaffiliated
customers)
Grocery Products $ 1,558,265 $ 1,517,557 $ 1,170,871
Refrigerated Foods 4,644,179 4,251,515 4,222,752
Jennie-O Turkey Store 1,672,452 1,601,868 1,549,227
Specialty Foods 907,120 932,533 924,472
International & Other 534,240 448,181 363,348
Total $ 9,316,256 $ 8,751,654 $ 8,230,670
Intersegment Sales
Grocery Products $ – $ – $ –
Refrigerated Foods 23,163 17,359 12,144
Jennie-O Turkey Store 144,137 123,420 125,575
Specialty Foods 122 108 133
International & Other – – –
Total 167,422 140,887 137,852
Intersegment
elimination (167,422) (140,887) (137,852)
Total $ – $ – $ –
Segment Net Sales
Grocery Products $ 1,558,265 $ 1,517,557 $ 1,170,871
Refrigerated Foods 4,667,342 4,268,874 4,234,896
Jennie-O Turkey Store 1,816,589 1,725,288 1,674,802
Specialty Foods 907,242 932,641 924,605
International & Other 534,240 448,181 363,348
Intersegment
elimination (167,422) (140,887) (137,852)
Total $ 9,316,256 $ 8,751,654 $ 8,230,670
Segment Operating Profit
Grocery Products $ 195,064 $ 213,646 $ 181,251
Refrigerated Foods 338,020 232,692 228,665
Jennie-O Turkey Store 272,362 222,117 238,298
Specialty Foods 71,514 88,873 83,089
International & Other 84,745 71,490 49,889
Total segment
operating profit $ 961,705 $ 828,818 $ 781,192
Net interest and
investment expense
(income) 9,468 7,482 6,339
General corporate
expense 33,434 26,694 21,429
Noncontrolling interest 3,349 3,865 4,911
Earnings Before
Income Taxes $ 922,152 $ 798,507 $ 758,335