SMITHFIELD FOODS INCSFD
SMITHFIELD FOODS INC Segments Disclosure
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 warehousing activities are often integrated to optimize cost efficiencies, resulting in jointly utilized assets, including fixed assets, that are 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.
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 fiscal year 2025, the Fresh Pork segment sourced approximately 40% of its raw materials from our Hog Production segment, compared to approximately 50% during fiscal year 2024, 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, 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 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.
The following tables provide certain financial information by reportable segment with a reconciliation to the consolidated totals.
| Fiscal Year 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Packaged Meats | Fresh Pork | Hog Production | Other (1) | Corporate (2) | Unallocated (3) | Intersegment | Consolidated | ||||||||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Sales | $ | 8,757 | $ | 8,344 | $ | 3,393 | $ | 528 | $ | — | $ | — | $ | (5,492) | $ | 15,531 | |||||||||||||||||||||||||||||||
| Cost of sales | 7,295 | 7,965 | 3,179 | 458 | — | 36 | (5,492) | 13,442 | |||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 367 | 166 | 38 | 25 | 128 | 125 | — | 849 | |||||||||||||||||||||||||||||||||||||||
| Operating gains | — | — | — | — | — | (52) | — | (52) | |||||||||||||||||||||||||||||||||||||||
| Operating profit (loss) | 1,094 | 214 | 176 | 45 | (128) | (109) | — | 1,292 | |||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 41 | 41 | |||||||||||||||||||||||||||||||||||||||||||||
| Non-operating gains | (18) | (18) | |||||||||||||||||||||||||||||||||||||||||||||
| Income from continuing operations before income taxes | $ | 1,270 | |||||||||||||||||||||||||||||||||||||||||||||
| Other segment data: | |||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | $ | 133 | $ | 109 | $ | 57 | $ | 27 | $ | 1 | $ | 5 | $ | — | $ | 332 | |||||||||||||||||||||||||||||||
| Capital expenditures | 161 | 114 | 49 | 9 | 7 | — | — | 341 | |||||||||||||||||||||||||||||||||||||||
| Fiscal Year 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Packaged Meats | Fresh Pork | Hog Production | Other (1) | Corporate (2) | Unallocated (3) | Intersegment | Consolidated | ||||||||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Sales | $ | 8,319 | $ | 7,873 | $ | 3,002 | $ | 471 | $ | — | $ | — | $ | (5,524) | $ | 14,142 | |||||||||||||||||||||||||||||||
| Cost of sales | 6,759 | 7,419 | 3,104 | 412 | — | 74 | (5,524) | 12,244 | |||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 394 | 188 | 42 | 24 | 153 | 38 | — | 840 | |||||||||||||||||||||||||||||||||||||||
| Operating gains | (2) | — | — | — | — | (57) | — | (60) | |||||||||||||||||||||||||||||||||||||||
| Operating profit (loss) | 1,168 | 266 | (144) | 35 | (153) | (55) | — | 1,118 | |||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 66 | 66 | |||||||||||||||||||||||||||||||||||||||||||||
| Non-operating gains | (9) | (9) | |||||||||||||||||||||||||||||||||||||||||||||
| Income from continuing operations before income taxes | $ | 1,061 | |||||||||||||||||||||||||||||||||||||||||||||
| Other segment data: | |||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | $ | 123 | $ | 113 | $ | 61 | $ | 30 | $ | 1 | $ | 10 | $ | — | $ | 339 | |||||||||||||||||||||||||||||||
| Capital expenditures | 144 | 106 | 33 | 13 | 54 | — | — | 350 | |||||||||||||||||||||||||||||||||||||||
| Fiscal Year 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Packaged Meats | Fresh Pork | Hog Production | Other (1) | Corporate (2) | Unallocated (3) | Intersegment | Consolidated | ||||||||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Sales | $ | 8,280 | $ | 7,832 | $ | 3,317 | $ | 559 | $ | — | $ | — | $ | (5,348) | $ | 14,640 | |||||||||||||||||||||||||||||||
| Cost of sales | 6,792 | 7,525 | 4,024 | 536 | — | 222 | (5,348) | 13,751 | |||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 422 | 190 | 50 | 26 | 107 | 254 | — | 1,050 | |||||||||||||||||||||||||||||||||||||||
| Operating gains | — | — | — | — | — | (105) | — | (105) | |||||||||||||||||||||||||||||||||||||||
| Operating profit (loss) | 1,066 | 117 | (756) | (4) | (107) | (371) | — | (56) | |||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 76 | 76 | |||||||||||||||||||||||||||||||||||||||||||||
| Non-operating gains | (3) | (3) | |||||||||||||||||||||||||||||||||||||||||||||
| Loss from continuing operations before income taxes | $ | (129) | |||||||||||||||||||||||||||||||||||||||||||||
| Other segment data: | |||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | $ | 120 | $ | 109 | $ | 72 | $ | 36 | $ | 1 | $ | 89 | $ | — | $ | 427 | |||||||||||||||||||||||||||||||
| Capital expenditures | 154 | 123 | 40 | 10 | — | 26 | — | 353 | |||||||||||||||||||||||||||||||||||||||
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(1)Includes our Mexico and Bioscience operations. Our Mexico operations raise hogs and produce 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)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.
| Fiscal Year 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
Retail (1) | Foodservice (2) | Exports (3) | Industrial (4) | Other / Unallocated (5) | Total External Sales (6) | Intersegment | Consolidated (7) | ||||||||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Packaged Meats | $ | 5,517 | $ | 2,684 | $ | 107 | $ | 432 | $ | 17 | $ | 8,756 | $ | — | $ | 8,757 | |||||||||||||||||||||||||||||||
| Fresh Pork | 2,020 | 273 | 1,647 | 1,071 | 7 | 5,017 | 3,327 | 8,344 | |||||||||||||||||||||||||||||||||||||||
| Hog Production | — | — | — | — | 1,229 | 1,229 | 2,164 | 3,393 | |||||||||||||||||||||||||||||||||||||||
Other (8) | — | — | — | — | 528 | 528 | 1 | 528 | |||||||||||||||||||||||||||||||||||||||
| Intersegment | — | — | — | — | — | — | (5,492) | (5,492) | |||||||||||||||||||||||||||||||||||||||
| Total | $ | 7,537 | $ | 2,957 | $ | 1,753 | $ | 1,504 | $ | 1,780 | $ | 15,531 | $ | — | $ | 15,531 | |||||||||||||||||||||||||||||||
| Fiscal Year 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
Retail (1) | Foodservice (2) | Exports (3) | Industrial (4) | Other / Unallocated (5) | Total External Sales (6) | Intersegment | Consolidated (7) | ||||||||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Packaged Meats | $ | 5,349 | $ | 2,447 | $ | 104 | $ | 403 | $ | 16 | $ | 8,319 | $ | — | $ | 8,319 | |||||||||||||||||||||||||||||||
| Fresh Pork | 1,946 | 232 | 1,666 | 1,035 | 5 | 4,883 | 2,990 | 7,873 | |||||||||||||||||||||||||||||||||||||||
| Hog Production | — | — | — | — | 469 | 469 | 2,533 | 3,002 | |||||||||||||||||||||||||||||||||||||||
Other (8) | — | — | — | — | 470 | 470 | 1 | 471 | |||||||||||||||||||||||||||||||||||||||
| Intersegment | — | — | — | — | — | — | (5,524) | (5,524) | |||||||||||||||||||||||||||||||||||||||
| Total | $ | 7,295 | $ | 2,679 | $ | 1,769 | $ | 1,438 | $ | 960 | $ | 14,142 | $ | — | $ | 14,142 | |||||||||||||||||||||||||||||||
| Fiscal Year 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Retail (1) | Foodservice (2) | Exports (3) | Industrial (4) | Other / Unallocated (5) | Total External Sales (6) | Intersegment | Consolidated (7) | ||||||||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Packaged Meats | $ | 5,265 | $ | 2,420 | $ | 126 | $ | 449 | $ | 20 | $ | 8,280 | $ | — | $ | 8,280 | |||||||||||||||||||||||||||||||
| Fresh Pork | 2,007 | 246 | 1,731 | 1,142 | 12 | 5,138 | 2,694 | 7,832 | |||||||||||||||||||||||||||||||||||||||
| Hog Production | — | — | — | — | 671 | 671 | 2,646 | 3,317 | |||||||||||||||||||||||||||||||||||||||
Other (8) | — | — | — | — | 552 | 552 | 7 | 559 | |||||||||||||||||||||||||||||||||||||||
| Intersegment | — | — | — | — | — | — | (5,348) | (5,348) | |||||||||||||||||||||||||||||||||||||||
| Total | $ | 7,272 | $ | 2,667 | $ | 1,857 | $ | 1,591 | $ | 1,254 | $ | 14,640 | $ | — | $ | 14,640 | |||||||||||||||||||||||||||||||
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(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 $511 million, $431 million and $515 million in fiscal years 2025, 2024 and 2023, respectively. All other external sales are sourced from our U.S. operations.
(7)Our largest customer, Walmart Inc., including its subsidiary Sam’s West, Inc. (collectively “Walmart”), accounted for 15%, 16% and 15% of consolidated sales in fiscal years 2025, 2024 and 2023, respectively. Sales to Walmart were included in our Packaged Meats and Fresh Pork segments. Any extended discontinuance of sales to this customer could, if not replaced, have a material impact on our results of operations.
(8)Includes our Mexico and Bioscience operations.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 24, 2026 | Showing above |
| 2024 | Mar 25, 2025 | |
| 2016 | Mar 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.