 |
19. Segment Information
The Company operates in five segments, dairy foods, animal feed, crop seed, swine and agronomy.
The dairy foods segment produces, markets and sells products such as butter, spreads, cheese, and other dairy related products. Products are sold under well-recognized national brand names including LAND O LAKES, the Indian Maiden logo and Alpine Lace, as well as under regional brand names such as New Yorker.
The animal feed segment is made up of a 92% ownership position in Land O'Lakes Farmland Feed LLC. Land O'Lakes Farmland Feed LLC
develops, produces, markets and distributes animal feeds such as ingredient feed, formula feed, milk replacers, vitamins and additives.
The crop seed segment is a supplier and distributor of crop seed products in the United States. A variety of crop seed is sold, including alfalfa, soybeans, corn and forage and turf grasses.
The swine segment has three programs, farrow-to-finish, swine aligned and cost-plus. The farrow-to-finish program produces and sells market hogs. The swine aligned program raises feeder pigs which are sold to local member cooperatives. The cost-plus program provides minimum hog price guarantees to producers in exchange for swine feed sales and profit participation.
The agronomy segment consists primarily of the Company's 50% ownership in Agriliance LLC, which is accounted for under the equity method. Agriliance LLC markets and sells two primary product lines: crop protection (including herbicides and pesticides) and crop nutrients (including fertilizers and micronutrients).
The Company allocates corporate administration expense to all of its business segments, both directly and indirectly. Corporate staff functions that are able to determine actual services provided to each segment allocate expense on a direct and predetermined basis. All other corporate staff functions allocate expense indirectly based on each segment's percent of total invested capital. A majority of corporate administration expense is allocated directly.
|
| Segment Information |
 |
|
Dairy Foods |
|
Feed |
|
Seed |
|
Swine |
|
Agronomy |
|
Other |
|
Consolidated |
|
|
| For the year ended December 31, 2002 |
| Net sales |
$ |
2,899,075 |
|
$ |
2,444,668 |
|
$ |
406,871 |
|
$ |
83,239 |
|
$ |
- |
|
$ |
13,011 |
|
$ |
5,864,858 |
|
| Cost of sales |
|
2,739,813 |
|
|
2,155,342 |
|
|
353,852 |
|
|
93,482 |
|
|
- |
|
|
7,934 |
|
|
5,350,423 |
|
| Selling, general and administration |
|
155,501 |
|
|
245,523 |
|
|
45,852 |
|
|
5,879 |
|
|
18,885 |
|
|
9,766 |
|
|
481,406 |
|
| Restructuring and impairment charges |
|
19,674 |
|
|
11,765 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
31,412 |
|
| Interest expense, net |
|
20,136 |
|
|
28,302 |
|
|
2,738 |
|
|
5,401 |
|
|
9,469 |
|
|
2,800 |
|
|
68,846 |
|
| Gain on legal settlements |
|
(3,166 |
) |
|
(152,378 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(155,554 |
) |
| Gain on sale of intangible |
|
- |
|
|
(4,184 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(4,184 |
) |
| (Gain) loss on divestiture of businesses |
|
(1,281 |
) |
|
(21 |
) |
|
3,956 |
) |
|
155 |
|
|
- |
|
|
111 |
|
|
(4,992 |
) |
| Equity in loss (earnings) of affiliated companies |
|
580 |
|
|
(1,560 |
) |
|
75 |
) |
|
1,491 |
|
|
(26,598 |
) |
|
3,337 |
|
|
(22,675 |
) |
Minority interest in (loss) earnings
of subsidiaries |
|
(21 |
) |
|
5,380 |
|
|
19 |
|
|
- |
|
|
- |
|
|
109 |
|
|
5,487 |
|
|
| (Loss) earnings before income taxes |
$ |
(32,134 |
) |
$ |
156,499 |
|
$ |
8,291 |
|
$ |
(23,169 |
) |
$ |
(1,756 |
) |
$ |
(11,046 |
) |
$ |
96,685 |
|
|
| For the year ended December 31, 2001 |
| Net sales |
$ |
3,463,853 |
|
$ |
1,864,021 |
|
$ |
413,567 |
|
$ |
109,895 |
|
$ |
- |
|
$ |
13,522 |
|
$ |
5,864,858 |
|
| Cost of sales |
|
3,228,430 |
|
|
1,691,309 |
|
|
354,175 |
|
|
96,980 |
|
|
- |
|
|
7,711 |
|
|
5,378,605 |
|
| Selling, general and administration |
|
168,940 |
|
|
133,438 |
|
|
49,193 |
|
|
5,155 |
|
|
16,394 |
|
|
8,873 |
|
|
381,993 |
|
| Restructuring and impairment charges |
|
1,661 |
|
|
272 |
|
|
- |
|
|
1,800 |
|
|
- |
|
|
- |
|
|
3,733 |
|
| Interest expense, net |
|
20,046 |
|
|
13,786 |
|
|
6,268 |
|
|
6,182 |
|
|
8,057 |
|
|
1,345 |
|
|
55,684 |
|
| Gain on legal settlements |
|
- |
|
|
(2,996 |
) |
|
- |
|
|
- |
|
|
- |
|
|
_ |
|
|
(2,996 |
) |
| Loss on extinguishment of debt |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
23,453 |
|
|
23,453 |
|
| Equity in (earnings) loss of affiliated companies |
|
(4,940 |
) |
|
(4,437 |
) |
|
324 |
|
|
(3,325 |
) |
|
(34,704 |
) |
|
(1,501 |
) |
|
(48,583 |
) |
Minority interest in (loss) earnings
of subsidiaries |
|
(1,000 |
) |
|
7,992 |
|
|
6 |
|
|
- |
|
|
- |
|
|
(116 |
) |
|
6,882 |
|
|
| Earnings (loss) before income taxes |
$ |
50,716 |
|
$ |
24,657 |
|
$ |
3,601 |
|
$ |
3,103 |
|
$ |
10,253 |
|
$ |
(26,243 |
) |
$ |
66,087 |
|
|
| For the year ended December 31, 2000 |
| Net sales |
$ |
3,098,159 |
|
$ |
1,182,230 |
|
$ |
365,522 |
|
$ |
101,911 |
|
$ |
857,004 |
|
$ |
67,868 |
|
$ |
5,672,774 |
|
| Cost of sales |
|
2,822,973 |
|
|
1,064,772 |
|
|
308,498 |
|
|
93,449 |
|
|
794,564 |
|
|
61,854 |
|
|
5,146,110 |
|
| Selling, general and administration |
|
203,312 |
|
|
84,384 |
|
|
44,007 |
|
|
7,888 |
|
|
39,545 |
|
|
10,154 |
|
|
389,290 |
|
| Restructuring and impairment charges |
|
44,526 |
|
|
9,700 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
54,226 |
|
| Interest expense (income), net |
|
29,437 |
|
|
4,300 |
|
|
6,419 |
|
|
6,477 |
|
|
6,109 |
|
|
(303 |
) |
|
52,439 |
|
| Gain from divestiture of businesses |
|
(88,530 |
) |
|
- |
|
|
- |
|
|
(504 |
) |
|
- |
|
|
_ |
|
|
(89,034 |
) |
| Gain on extinguishment of debt |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(4,450 |
) |
|
(4,450 |
) |
| Equity in (earnings) loss of affiliated companies |
|
(1,301 |
) |
|
(2,433 |
) |
|
(147 |
) |
|
(3,485 |
) |
|
46,033 |
|
|
(3,101 |
) |
|
35,566 |
|
Minority interest in (loss) earnings
of subsidiaries |
|
(171 |
) |
|
(1,786 |
) |
|
1 |
|
|
40 |
|
|
211 |
|
|
300 |
|
|
(1,405 |
) |
|
| Earnings (loss) before income taxes |
$ |
87,913 |
|
$ |
23,293 |
|
$ |
6,744 |
|
$ |
(1,874 |
) |
$ |
(29,458 |
) |
$ |
3,414 |
|
$ |
90,032 |
|
|
| 2002 |
|
| Total assets |
$ |
815,186 |
|
$ |
1,301,268 |
|
$ |
446,470 |
|
$ |
69,804 |
|
$ |
416,041 |
|
$ |
197,580 |
|
$ |
3,246322 |
|
| Depreciation and amortization |
|
36,831 |
|
|
46,555 |
|
|
3,023 |
|
|
3,829 |
|
|
6,090 |
|
|
10,434 |
|
|
106,762 |
|
| Capital expenditures |
|
32,347 |
|
|
26,047 |
|
|
573 |
|
|
3,126 |
|
|
- |
|
|
25,344 |
|
|
87,437 |
|
|
| 2001 |
|
| Total assets |
$ |
730,365 |
|
$ |
981,229 |
|
$ |
379,912 |
|
$ |
77,911 |
|
$ |
411,738 |
|
$ |
510,223 |
|
$ |
3,091,378 |
|
| Depreciation and amortization |
$ |
42,466 |
|
$ |
31,707 |
|
$ |
5,008 |
|
$ |
5,575 |
|
$ |
6,321 |
|
$ |
6,211 |
|
$ |
97,288 |
|
| Capital expenditures |
$ |
37,749 |
|
$ |
24,872 |
|
$ |
2,685 |
|
$ |
7,310 |
) |
$ |
- |
|
$ |
11,320 |
|
$ |
83,936 |
|
|
| 2000 |
|
| Total assets |
$ |
715,267 |
|
$ |
446,249 |
|
$ |
335,260 |
|
$ |
95,999 |
|
$ |
417,602 |
|
$ |
462,966 |
|
$ |
2,473,343 |
|
| Depreciation and amortization |
$ |
42,766 |
|
$ |
18,618 |
|
$ |
5,583 |
|
$ |
6,180 |
|
$ |
4,624 |
|
$ |
5,850 |
|
$ |
83,621 |
|
| Capital expenditures |
$ |
60,291 |
|
$ |
21,507 |
|
$ |
3,521 |
|
$ |
9,572 |
) |
$ |
- |
|
$ |
9,452 |
|
$ |
104,343 |
|
|
|
 |
 |
|
