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 ourPuerto Rico business from theLatin America zone tothe 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, andCanada . 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 endedJune 27, 2020 compared to goodwill impairment losses of$744 million and intangible asset impairment losses of$474 million for the six months endedJune 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 ourU.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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