Overview


Description of the Company:
We manufacture and market food and beverage products, including condiments and
sauces, cheese and dairy, meals, meats, refreshment beverages, coffee, and other
grocery products throughout the world.
In the first quarter of 2020, our internal reporting and reportable segments
changed. We moved our Puerto Rico business from the Latin America zone to the
United States zone to consolidate and streamline the management of our product
categories and supply chain. We also combined our EMEA, Latin America, and APAC
zones to form the International zone as a result of certain previously announced
organizational changes.
Therefore, effective in the first quarter of 2020, we manage and report our
operating results through three reportable segments defined by geographic
region: United States, International, and Canada. We have reflected these
changes in all historical periods presented.
See Note 18, Segment Reporting, in Item 1, Financial Statements, for our
financial information by segment.
Items Affecting Comparability of Financial Results
Impairment Losses:
Our results of operations reflect goodwill impairment losses of $2.0 billion and
intangible asset impairment losses of $1.1 billion for the six months ended
June 27, 2020 compared to goodwill impairment losses of $744 million and
intangible asset impairment losses of $474 million for the six months ended
June 29, 2019. See Note 8, Goodwill and Intangible Assets, in Item 1, Financial
Statements, for additional information on these impairment losses.
COVID-19 Impacts:
During the first and second quarters of 2020, the COVID-19 pandemic produced a
beneficial impact on our consolidated net sales. Increased demand for our retail
products more than offset declines in our foodservice business, which resulted
in consolidated net sales growth compared to the prior period. This increased
demand for our retail products could reverse in the future if consumer
purchasing behavior changes. We expect a continued decrease in demand in 2020
for away-from-home establishments, which will negatively impact our foodservice
business beyond the second quarter and which also contributed to the impairments
recorded in our U.S. Foodservice and Canada Foodservice reporting units in the
current period. However, COVID-19 and its impacts are unprecedented and
continuously evolving, and the long-term impacts to our financial condition and
results of operations are still uncertain.
See Consolidated Results of Operations and Liquidity and Capital Resources for
additional information related to the impact of COVID-19 on our overall results.
For information related to the impact of COVID-19 on our segment results see
Results of Operations by Segment.
Results of Operations
We disclose in this report certain non-GAAP financial measures. These non-GAAP
financial measures assist management in comparing our performance on a
consistent basis for purposes of business decision-making by removing the impact
of certain items that management believes do not directly reflect our underlying
operations. For additional information and reconciliations from our condensed
consolidated financial statements see Non-GAAP Financial Measures.
Consolidated Results of Operations

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