000001673208-012021Q1FALSE00000167322020-08-032020-11-01xbrli:shares00000167322020-12-02iso4217:USD00000167322019-07-292019-10-27iso4217:USDxbrli:shares00000167322020-11-0100000167322020-08-0200000167322019-07-2800000167322019-10-270000016732us-gaap:CommonStockMember2019-07-280000016732us-gaap:TreasuryStockMember2019-07-280000016732us-gaap:AdditionalPaidInCapitalMember2019-07-280000016732us-gaap:RetainedEarningsMember2019-07-280000016732us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-280000016732us-gaap:NoncontrollingInterestMember2019-07-280000016732us-gaap:RetainedEarningsMember2019-07-292019-10-270000016732us-gaap:NoncontrollingInterestMember2019-07-292019-10-270000016732us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-292019-10-270000016732us-gaap:TreasuryStockMember2019-07-292019-10-270000016732us-gaap:AdditionalPaidInCapitalMember2019-07-292019-10-270000016732us-gaap:CommonStockMember2019-10-270000016732us-gaap:TreasuryStockMember2019-10-270000016732us-gaap:AdditionalPaidInCapitalMember2019-10-270000016732us-gaap:RetainedEarningsMember2019-10-270000016732us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-10-270000016732us-gaap:NoncontrollingInterestMember2019-10-270000016732us-gaap:CommonStockMember2020-08-020000016732us-gaap:TreasuryStockMember2020-08-020000016732us-gaap:AdditionalPaidInCapitalMember2020-08-020000016732us-gaap:RetainedEarningsMember2020-08-020000016732us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-08-020000016732us-gaap:NoncontrollingInterestMember2020-08-020000016732us-gaap:RetainedEarningsMember2020-08-032020-11-010000016732us-gaap:NoncontrollingInterestMember2020-08-032020-11-010000016732us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-08-032020-11-010000016732us-gaap:TreasuryStockMember2020-08-032020-11-010000016732us-gaap:AdditionalPaidInCapitalMember2020-08-032020-11-010000016732us-gaap:CommonStockMember2020-11-010000016732us-gaap:TreasuryStockMember2020-11-010000016732us-gaap:AdditionalPaidInCapitalMember2020-11-010000016732us-gaap:RetainedEarningsMember2020-11-010000016732us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-11-010000016732us-gaap:NoncontrollingInterestMember2020-11-010000016732srt:ScenarioForecastMember2020-08-032021-08-0100000167322019-07-292020-08-020000016732cpb:KelsenMember2019-09-232019-09-230000016732cpb:ArnottsAndInternationalMember2019-12-232019-12-230000016732cpb:ArnottsAndInternationalMember2020-01-272020-04-260000016732cpb:CampbellInternationalMember2019-07-292019-10-270000016732us-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMember2019-07-292019-10-27iso4217:GBP0000016732cpb:EuropeanChipsBusinessMember2019-07-292019-10-270000016732us-gaap:AccumulatedTranslationAdjustmentMember2019-07-280000016732us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-07-280000016732us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-07-280000016732us-gaap:AccumulatedTranslationAdjustmentMember2019-07-292019-10-270000016732us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-07-292019-10-270000016732us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-07-292019-10-270000016732us-gaap:AccumulatedTranslationAdjustmentMember2019-10-270000016732us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-10-270000016732us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-10-270000016732us-gaap:AccumulatedTranslationAdjustmentMember2020-08-020000016732us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-08-020000016732us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-08-020000016732us-gaap:AccumulatedTranslationAdjustmentMember2020-08-032020-11-010000016732us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-08-032020-11-010000016732us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-08-032020-11-010000016732us-gaap:AccumulatedTranslationAdjustmentMember2020-11-010000016732us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-11-010000016732us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-11-010000016732us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-08-032020-11-010000016732us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-07-292019-10-270000016732us-gaap:ForeignExchangeContractMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-08-032020-11-010000016732us-gaap:ForeignExchangeContractMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-07-292019-10-270000016732us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:InterestRateContractMember2020-08-032020-11-010000016732us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:InterestRateContractMember2019-07-292019-10-270000016732us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-08-032020-11-010000016732us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-07-292019-10-270000016732us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-08-032020-11-010000016732us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-07-292019-10-270000016732cpb:MealsBeveragesMember2020-08-020000016732cpb:SnacksMember2020-08-020000016732cpb:MealsBeveragesMember2020-08-032020-11-010000016732cpb:SnacksMember2020-08-032020-11-010000016732cpb:MealsBeveragesMember2020-11-010000016732cpb:SnacksMember2020-11-010000016732us-gaap:CustomerRelationshipsMember2020-11-010000016732us-gaap:CustomerRelationshipsMember2020-08-020000016732cpb:SnydersLanceMember2020-11-010000016732cpb:TradeNameSnydersOfHanoverMember2020-11-010000016732cpb:TradeNamesPaceMember2020-11-010000016732cpb:TradeNamePacificFoodsMember2020-11-010000016732us-gaap:CustomerRelationshipsMember2020-08-032020-11-010000016732cpb:MealsBeveragesMember2019-07-292019-10-270000016732cpb:SnacksMember2019-07-292019-10-270000016732us-gaap:CorporateNonSegmentMember2020-08-032020-11-010000016732us-gaap:CorporateNonSegmentMember2019-07-292019-10-270000016732us-gaap:RestructuringChargesMember2020-08-032020-11-010000016732us-gaap:RestructuringChargesMember2019-07-292019-10-270000016732cpb:SoupsMember2020-08-032020-11-010000016732cpb:SoupsMember2019-07-292019-10-270000016732cpb:BakedSnacksMember2020-08-032020-11-010000016732cpb:BakedSnacksMember2019-07-292019-10-270000016732cpb:SimpleMealsMember2020-08-032020-11-010000016732cpb:SimpleMealsMember2019-07-292019-10-270000016732cpb:BeveragesMember2020-08-032020-11-010000016732cpb:BeveragesMember2019-07-292019-10-270000016732cpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-08-032020-11-010000016732cpb:TwoThousandFifteenandSnydersLanceInitiativesMember2019-07-292019-10-270000016732us-gaap:RestructuringChargesMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-11-010000016732us-gaap:GeneralAndAdministrativeExpenseMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-08-032020-11-010000016732us-gaap:GeneralAndAdministrativeExpenseMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2019-07-292019-10-270000016732us-gaap:GeneralAndAdministrativeExpenseMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-11-010000016732us-gaap:CostOfSalesMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-08-032020-11-010000016732us-gaap:CostOfSalesMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2019-07-292019-10-270000016732us-gaap:CostOfSalesMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-11-010000016732us-gaap:SellingAndMarketingExpenseMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-08-032020-11-010000016732us-gaap:SellingAndMarketingExpenseMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2019-07-292019-10-270000016732us-gaap:SellingAndMarketingExpenseMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-11-010000016732us-gaap:ResearchAndDevelopmentExpenseMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-08-032020-11-010000016732us-gaap:ResearchAndDevelopmentExpenseMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2019-07-292019-10-270000016732us-gaap:ResearchAndDevelopmentExpenseMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-11-010000016732cpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-11-010000016732us-gaap:EmployeeSeveranceMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMemberus-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMember2020-11-010000016732cpb:ImplementationCostsandOtherRelatedCostsMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMemberus-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMember2020-11-010000016732cpb:TwoThousandFifteenandSnydersLanceInitiativesMemberus-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMember2020-11-010000016732us-gaap:EmployeeSeveranceMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-11-010000016732cpb:AssetImpairmentAcceleratedDepreciationMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-11-010000016732cpb:ImplementationCostsandOtherRelatedCostsMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-11-010000016732srt:MinimumMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-11-010000016732srt:MaximumMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-11-010000016732us-gaap:EmployeeSeveranceMembersrt:MinimumMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-11-010000016732srt:MaximumMemberus-gaap:EmployeeSeveranceMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-11-010000016732cpb:ImplementationCostsandOtherRelatedCostsMembersrt:MinimumMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-11-010000016732srt:MaximumMembercpb:ImplementationCostsandOtherRelatedCostsMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-11-01xbrli:pure0000016732cpb:MealsBeveragesMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-11-010000016732cpb:SnacksMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-11-010000016732us-gaap:CorporateNonSegmentMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-11-010000016732srt:MinimumMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-08-032020-11-010000016732srt:MaximumMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-08-032020-11-010000016732srt:ScenarioForecastMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-08-032022-07-310000016732us-gaap:EmployeeSeveranceMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-08-020000016732us-gaap:EmployeeSeveranceMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-08-032020-11-010000016732cpb:TwoThousandFifteenandSnydersLanceInitiativesMembercpb:OtherCostSavingsImplementationCostsMember2020-08-032020-11-010000016732cpb:MealsBeveragesMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-08-032020-11-010000016732cpb:SnacksMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-08-032020-11-010000016732us-gaap:CorporateNonSegmentMembercpb:TwoThousandFifteenandSnydersLanceInitiativesMember2020-08-032020-11-010000016732us-gaap:EmployeeStockOptionMember2020-08-032020-11-010000016732us-gaap:EmployeeStockOptionMember2019-07-292019-10-270000016732us-gaap:PensionPlansDefinedBenefitMember2020-08-032020-11-010000016732us-gaap:PensionPlansDefinedBenefitMember2019-07-292019-10-270000016732us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-08-032020-11-010000016732us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2019-07-292019-10-270000016732us-gaap:OtherNoncurrentAssetsMember2020-11-010000016732us-gaap:OtherNoncurrentAssetsMember2020-08-020000016732us-gaap:AccruedLiabilitiesMember2020-11-010000016732us-gaap:AccruedLiabilitiesMember2020-08-020000016732us-gaap:OtherNoncurrentLiabilitiesMember2020-11-010000016732us-gaap:OtherNoncurrentLiabilitiesMember2020-08-020000016732us-gaap:PropertyPlantAndEquipmentMember2020-11-010000016732us-gaap:PropertyPlantAndEquipmentMember2020-08-020000016732us-gaap:ShortTermDebtMember2020-11-010000016732us-gaap:ShortTermDebtMember2020-08-020000016732us-gaap:LongTermDebtMember2020-11-010000016732us-gaap:LongTermDebtMember2020-08-020000016732us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMembercpb:WalMartStoresIncMember2019-07-292020-08-020000016732us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMembercpb:TopFiveCustomersMember2019-07-292020-08-020000016732us-gaap:ForeignExchangeContractMember2020-08-032020-11-010000016732us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-11-010000016732us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-08-020000016732us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2020-11-010000016732us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2020-08-020000016732us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateContractMember2020-08-020000016732us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateContractMember2020-11-010000016732us-gaap:CommodityContractMember2020-08-032020-11-010000016732us-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-11-010000016732us-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-08-020000016732us-gaap:CommodityContractMemberus-gaap:NondesignatedMember2020-11-010000016732us-gaap:CommodityContractMemberus-gaap:NondesignatedMember2020-08-020000016732us-gaap:EmbeddedDerivativeFinancialInstrumentsMemberus-gaap:NondesignatedMember2020-11-010000016732us-gaap:EmbeddedDerivativeFinancialInstrumentsMemberus-gaap:NondesignatedMember2020-08-020000016732us-gaap:EquityContractMember2020-08-032020-11-010000016732us-gaap:EquityContractMemberus-gaap:NondesignatedMember2020-08-020000016732us-gaap:EquityContractMemberus-gaap:NondesignatedMember2020-11-010000016732us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentAssetsMember2020-11-010000016732us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentAssetsMember2020-08-020000016732us-gaap:DesignatedAsHedgingInstrumentMember2020-11-010000016732us-gaap:DesignatedAsHedgingInstrumentMember2020-08-020000016732us-gaap:CommodityContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:NondesignatedMember2020-11-010000016732us-gaap:CommodityContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:NondesignatedMember2020-08-020000016732us-gaap:EquityContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:NondesignatedMember2020-11-010000016732us-gaap:EquityContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:NondesignatedMember2020-08-020000016732us-gaap:NondesignatedMember2020-11-010000016732us-gaap:NondesignatedMember2020-08-020000016732us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:AccruedLiabilitiesMember2020-11-010000016732us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:AccruedLiabilitiesMember2020-08-020000016732us-gaap:CommodityContractMemberus-gaap:AccruedLiabilitiesMemberus-gaap:NondesignatedMember2020-11-010000016732us-gaap:CommodityContractMemberus-gaap:AccruedLiabilitiesMemberus-gaap:NondesignatedMember2020-08-020000016732us-gaap:OtherCurrentAssetsMember2020-11-010000016732us-gaap:OtherCurrentAssetsMember2020-08-020000016732us-gaap:ForeignExchangeForwardMember2020-08-032020-11-010000016732us-gaap:ForeignExchangeForwardMember2019-07-292019-10-270000016732us-gaap:ForeignExchangeForwardMemberus-gaap:SegmentDiscontinuedOperationsMember2020-08-032020-11-010000016732us-gaap:ForeignExchangeForwardMemberus-gaap:SegmentDiscontinuedOperationsMember2019-07-292019-10-270000016732us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2020-08-032020-11-010000016732us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2019-07-292019-10-270000016732us-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-08-032020-11-010000016732us-gaap:InterestExpenseMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-08-032020-11-010000016732us-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-07-292019-10-270000016732us-gaap:InterestExpenseMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-07-292019-10-270000016732us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2020-08-032020-11-010000016732us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2019-07-292019-10-270000016732us-gaap:ForeignExchangeContractMemberus-gaap:OtherOperatingIncomeExpenseMember2020-08-032020-11-010000016732us-gaap:ForeignExchangeContractMemberus-gaap:OtherOperatingIncomeExpenseMember2019-07-292019-10-270000016732us-gaap:CommodityContractMemberus-gaap:CostOfSalesMember2020-08-032020-11-010000016732us-gaap:CommodityContractMemberus-gaap:CostOfSalesMember2019-07-292019-10-270000016732us-gaap:EquityContractMemberus-gaap:GeneralAndAdministrativeExpenseMember2020-08-032020-11-010000016732us-gaap:EquityContractMemberus-gaap:GeneralAndAdministrativeExpenseMember2019-07-292019-10-270000016732us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMember2020-11-010000016732us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-11-010000016732us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMember2020-08-020000016732us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-08-020000016732us-gaap:CommodityContractMemberus-gaap:FairValueMeasurementsRecurringMember2020-11-010000016732us-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-11-010000016732us-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-11-010000016732us-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-11-010000016732us-gaap:CommodityContractMemberus-gaap:FairValueMeasurementsRecurringMember2020-08-020000016732us-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-08-020000016732us-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-08-020000016732us-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-08-020000016732us-gaap:EquityContractMemberus-gaap:FairValueMeasurementsRecurringMember2020-11-010000016732us-gaap:EquityContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-11-010000016732us-gaap:EquityContractMemberus-gaap:FairValueMeasurementsRecurringMember2020-08-020000016732us-gaap:EquityContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-08-020000016732cpb:DeferredCompensationInvestmentMemberus-gaap:FairValueMeasurementsRecurringMember2020-11-010000016732us-gaap:FairValueInputsLevel1Membercpb:DeferredCompensationInvestmentMemberus-gaap:FairValueMeasurementsRecurringMember2020-11-010000016732cpb:DeferredCompensationInvestmentMemberus-gaap:FairValueMeasurementsRecurringMember2020-08-020000016732us-gaap:FairValueInputsLevel1Membercpb:DeferredCompensationInvestmentMemberus-gaap:FairValueMeasurementsRecurringMember2020-08-020000016732us-gaap:FairValueMeasurementsRecurringMember2020-11-010000016732us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-11-010000016732us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-11-010000016732us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-11-010000016732us-gaap:FairValueMeasurementsRecurringMember2020-08-020000016732us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-08-020000016732us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-08-020000016732us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-08-020000016732us-gaap:FairValueMeasurementsRecurringMembercpb:DeferredCompensationObligationMember2020-11-010000016732us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMembercpb:DeferredCompensationObligationMember2020-11-010000016732us-gaap:FairValueMeasurementsRecurringMembercpb:DeferredCompensationObligationMember2020-08-020000016732us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMembercpb:DeferredCompensationObligationMember2020-08-020000016732us-gaap:FairValueInputsLevel2Member2020-11-010000016732us-gaap:FairValueInputsLevel2Member2020-08-020000016732cpb:March2017ProgramMember2020-11-010000016732us-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMember2019-07-292019-10-270000016732us-gaap:EmployeeStockOptionMember2020-11-010000016732cpb:TimeLapseEPSPerformanceFCFPerformanceAndStrategicPerformanceRestrictedStockUnitsMember2020-08-032020-11-010000016732cpb:TimeLapseEPSPerformanceFCFPerformanceAndStrategicPerformanceRestrictedStockUnitsMember2020-08-020000016732cpb:TimeLapseEPSPerformanceFCFPerformanceAndStrategicPerformanceRestrictedStockUnitsMember2020-11-010000016732cpb:EpsPerformanceRestrictedStockUnitsMembersrt:MinimumMember2020-08-032020-11-010000016732srt:MaximumMembercpb:EpsPerformanceRestrictedStockUnitsMember2020-08-032020-11-010000016732cpb:FCFPerformanceRestrictedStockUnitsMember2018-07-302019-07-280000016732cpb:FCFPerformanceRestrictedStockUnitsMember2020-08-032020-11-010000016732cpb:FCFPerformanceRestrictedStockUnitsMembersrt:MinimumMember2020-08-032020-11-010000016732srt:MaximumMembercpb:FCFPerformanceRestrictedStockUnitsMember2020-08-032020-11-010000016732cpb:FCFPerformanceRestrictedStockUnitsMember2020-11-010000016732cpb:TimeLapseEPSPerformanceFCFPerformanceAndStrategicPerformanceRestrictedStockUnitsMember2019-07-292019-10-270000016732cpb:TSRPerformanceRestrictedStockUnitsMember2020-08-032020-11-010000016732cpb:TSRPerformanceRestrictedStockUnitsMember2020-08-020000016732cpb:TSRPerformanceRestrictedStockUnitsMember2020-11-010000016732cpb:TSRPerformanceRestrictedStockUnitsMember2019-07-292019-10-270000016732cpb:EuropeanChipsBusinessMember2020-08-032020-11-010000016732us-gaap:DomesticLineOfCreditMember2020-11-010000016732us-gaap:DomesticLineOfCreditMemberus-gaap:SubsequentEventMember2020-11-020000016732us-gaap:DomesticLineOfCreditMemberus-gaap:SubsequentEventMember2020-11-022020-11-02

For The Quarterly Period Ended

Commission File Number

November 1, 2020

1-3822

New Jersey			21-0419870
State of Incorporation			I.R.S. Employer Identification No.

Title of Each Class

Trading Symbol

Name of Each Exchange on Which Registered

Capital Stock, par value $.0375

CPB

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  ☑ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  ☑ Yes  ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☑ No

PART I - FINANCIAL INFORMATION						3
			Item 1. Financial Statements			3
			Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			25
			Item 3. Quantitative and Qualitative Disclosure About Market Risk			33
			Item 4. Controls and Procedures			33
PART II - OTHER INFORMATION						33
			Item 1. Legal Proceedings			33
			Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			33
			Item 6. Exhibits			33
INDEX TO EXHIBITS						34
SIGNATURES						35

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

									Three Months Ended
															November 1, 2020						October 27, 2019
Net sales															$	2,340					$	2,183
Costs and expenses
Cost of products sold															1,527						1,445
Marketing and selling expenses															208						206
Administrative expenses															141						134
Research and development expenses															20						22
Other expenses / (income)															(18)						56
Restructuring charges															1						3
Total costs and expenses															1,879						1,866
Earnings before interest and taxes															461						317
Interest expense															55						80
Interest income															—						—
Earnings before taxes															406						237
Taxes on earnings															97						68
Earnings from continuing operations															309						169
Earnings (loss) from discontinued operations															—						(3)
Net earnings															309						166
Less: Net earnings (loss) attributable to noncontrolling interests															—						—
Net earnings attributable to Campbell Soup Company															$	309					$	166
Per Share — Basic
Earnings from continuing operations attributable to Campbell Soup Company															$	1.02					$	.56
Earnings (loss) from discontinued operations															—						(.01)
Net earnings attributable to Campbell Soup Company															$	1.02					$	.55
Weighted average shares outstanding — basic															302						301
Per Share — Assuming Dilution
Earnings from continuing operations attributable to Campbell Soup Company															$	1.02					$	.56
Earnings (loss) from discontinued operations															—						(.01)
Net earnings attributable to Campbell Soup Company															$	1.02					$	.55
Weighted average shares outstanding — assuming dilution															304						303

			Three Months Ended
			November 1, 2020																		October 27, 2019
			Pre-tax amount						Tax (expense) benefit						After-tax amount						Pre-tax amount						Tax (expense) benefit						After-tax amount
Net earnings (loss)															$	309																	$	166
Other comprehensive income (loss):
Foreign currency translation:
Foreign currency translation adjustments			$	—					$	—					—						$	(4)					$	—					(4)
Reclassification of currency translation adjustments realized upon disposal of businesses			—						—						—						82						—						82
Cash-flow hedges:
Unrealized gains (losses) arising during period			(1)						1						—						—						—						—
Reclassification adjustment for (gains) losses included in net earnings			—						—						—						2						(1)						1
Pension and other postretirement benefits:
Reclassification of prior service credit included in net earnings			(1)						—						(1)						(7)						1						(6)
Other comprehensive income (loss)			$	(2)					$	1					(1)						$	73					$	—					73
Total comprehensive income (loss)															$	308																	$	239
Total comprehensive income (loss) attributable to noncontrolling interests															(2)																		1
Total comprehensive income (loss) attributable to Campbell Soup Company															$	310																	$	238

			November 1, 2020						August 2, 2020
Current assets
Cash and cash equivalents			$	722					$	859
Accounts receivable, net			765						575
Inventories			910						871
Other current assets			66						80
Total current assets			2,463						2,385
Plant assets, net of depreciation			2,352						2,368
Goodwill			3,987						3,986
Other intangible assets, net of amortization			3,340						3,350
Other assets			275						283
Total assets			$	12,417					$	12,372
Current liabilities
Short-term borrowings			$	1,084					$	1,202
Payable to suppliers and others			1,049						1,049
Accrued liabilities			579						693
Dividends payable			108						107
Accrued income taxes			86						24
Total current liabilities			2,906						3,075
Long-term debt			4,996						4,994
Deferred taxes			939						914
Other liabilities			803						820
Total liabilities			9,644						9,803
Commitments and contingencies
Campbell Soup Company shareholders' equity
Preferred stock; authorized 40 shares; none issued			—						—
Capital stock, $0.0375 par value; authorized 560 shares; issued 323 shares			12						12
Additional paid-in capital			370						394
Earnings retained in the business			3,387						3,190
Capital stock in treasury, at cost			(991)						(1,023)
Accumulated other comprehensive income (loss)			(9)						(10)
Total Campbell Soup Company shareholders' equity			2,769						2,563
Noncontrolling interests			4						6
Total equity			2,773						2,569
Total liabilities and equity			$	12,417					$	12,372

			Three Months Ended
			November 1, 2020						October 27, 2019
Cash flows from operating activities:
Net earnings			$	309					$	166
Adjustments to reconcile net earnings to operating cash flow
Restructuring charges			1						3
Stock-based compensation			16						14
Pension and postretirement benefit income			(20)						(18)
Depreciation and amortization			76						81
Deferred income taxes			25						(9)
Loss on sales of businesses			—						104
Other			21						28
Changes in working capital, net of divestitures
Accounts receivable			(189)						(174)
Inventories			(38)						(37)
Prepaid assets			8						6
Accounts payable and accrued liabilities			(28)						32
Other			(1)						(14)
Net cash provided by operating activities			180						182
Cash flows from investing activities:
Purchases of plant assets			(74)						(98)
Purchases of route businesses			(1)						(3)
Sales of route businesses			3						2
Sales of businesses, net of cash divested			—						368
Net cash provided by (used in) investing activities			(72)						269
Cash flows from financing activities:
Short-term borrowings, including commercial paper			—						2,508
Short-term repayments, including commercial paper			(123)						(2,447)
Long-term repayments			—						(399)
Dividends paid			(108)						(107)
Treasury stock issuances			—						1
Payments related to tax withholding for stock-based compensation			(13)						(9)
Other			(1)						—
Net cash used in financing activities			(245)						(453)
Effect of exchange rate changes on cash			—						(1)
Net change in cash and cash equivalents			(137)						(3)
Cash and cash equivalents — beginning of period			859						31
Cash and cash equivalents discontinued operations — beginning of period			—						148
Cash and cash equivalents discontinued operations — end of period			—						(115)
Cash and cash equivalents — end of period			$	722					$	61

			Campbell Soup Company Shareholders’ Equity
			Capital Stock																								Additional Paid-in Capital						Earnings Retained in the Business						Accumulated Other Comprehensive Income (Loss)						Noncontrolling Interests
			Issued												In Treasury																																				Total Equity
			Shares						Amount						Shares						Amount
Balance at July 28, 2019			323						$	12					(22)						$	(1,076)					$	372					$	1,993					$	(198)					$	9					$	1,112
Net earnings (loss)																																	166												—						166
Other comprehensive income (loss)																																							72						1						73
Dividends ($.35 per share)																																	(108)																		(108)
Treasury stock purchased															—						—																														—
Treasury stock issued under management incentive and stock option plans															1						23						(16)						(1)																		6
Balance at October 27, 2019			323						$	12					(21)						$	(1,053)					$	356					$	2,050					$	(126)					$	10					$	1,249
Balance at August 2, 2020			323						$	12					(21)						$	(1,023)					$	394					$	3,190					$	(10)					$	6					$	2,569
Net earnings (loss)																																	309												—						309
Other comprehensive income (loss)																																							1						(2)						(1)
Dividends ($.35 per share)																																	(107)																		(107)
Treasury stock purchased															—						—																														—
Treasury stock issued under management incentive and stock option plans															1						32						(24)						(5)																		3
Balance at November 1, 2020			323						$	12					(20)						$	(991)					$	370					$	3,387					$	(9)					$	4					$	2,773

In this Form 10-Q, unless otherwise stated, the terms "we," "us," "our" and the "company" refer to Campbell Soup Company and its consolidated subsidiaries.

The consolidated financial statements include our accounts and entities in which we maintain a controlling financial interest and a variable interest entity (VIE) for which we were the primary beneficiary. Intercompany transactions are eliminated in consolidation. See Note 3 for a discussion of Discontinued Operations.

The financial statements reflect all adjustments which are, in our opinion, necessary for a fair statement of the results of operations, financial position, and cash flows for the indicated periods. The accounting policies we used in preparing these financial statements are substantially consistent with those we applied in our Annual Report on Form 10-K for the year ended August 2, 2020.

The results for the period are not necessarily indicative of the results to be expected for other interim periods or the full year. Our fiscal year ends on the Sunday nearest July 31, which is August 1, 2021. There are 52 weeks in 2021. There were 53 weeks in 2020.

2. Recent Accounting Pronouncements

Recently Adopted

In August 2018, the Financial Accounting Standards Board (FASB) issued guidance that eliminates, adds, and modifies certain disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those years. We adopted the new guidance at the beginning of the first quarter of 2021. The adoption did not have a material impact on our consolidated financial statements.

In August 2018, the FASB issued guidance on accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance is effective for fiscal years beginning after December 15, 2019. Entities have the option to apply the guidance prospectively to all implementation costs incurred after the date of adoption or retrospectively. Early adoption is permitted. We adopted the new guidance on a prospective basis at the beginning of the first quarter of 2021. The adoption did not have a material impact on our consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

In August 2018, the FASB issued guidance that changes the disclosure requirements related to defined benefit pension and postretirement plans. The guidance is effective for fiscal years beginning after December 15, 2020. The guidance is to be applied on a retrospective basis. Early adoption is permitted. We are currently evaluating the impact that the new guidance will have on our disclosures.

In December 2019, the FASB issued guidance on simplifying the accounting for income taxes. The guidance removes certain exceptions to the general principles of accounting for income taxes and also improves consistent application of accounting by clarifying or amending existing guidance. The guidance is effective for fiscal years beginning after December 15, 2020, and interim periods within those years. Early adoption is permitted. We are currently evaluating the impact that the new guidance will have on our consolidated financial statements.

In March 2020, the FASB issued guidance that provides optional expedients and exceptions for a limited period of time for accounting for contracts, hedging relationships, and other transactions affected by the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued. Optional expedients can be applied from March 12, 2020 through December 31, 2022. We are currently evaluating the impact that the new guidance will have on our consolidated financial statements.

3. Divestitures

We completed the sale of our Kelsen business on September 23, 2019, for $322. We also completed the sale of our Arnott’s business and certain other international operations, including the simple meals and shelf-stable beverages businesses in Australia and Asia Pacific (the Arnott's and other international operations), on December 23, 2019, for $2,286. The purchase price was subject to certain post-closing adjustments, which resulted in $4 of additional proceeds in the third quarter of 2020. Beginning in the fourth quarter of 2019, we have reflected the results of operations of the Kelsen business and the Arnott’s and

other international operations (collectively referred to as Campbell International) as discontinued operations in the Consolidated Statements of Earnings for all periods presented. These businesses were historically included in the Snacks reportable segment.

Results of Campbell International were as follows:

															Three Months Ended
															October 27, 2019
Net sales															$	223
Earnings before taxes from operations															$	37
Taxes on earnings from operations															13
Loss on sale of business / costs associated with selling the businesses															(51)
Tax benefit on loss of sale / costs associated with selling the businesses															(24)
Earnings (loss) from discontinued operations															$	(3)

Under the terms of the sale of the Arnott's and other international operations, we entered into a long-term licensing arrangement for the exclusive rights to certain Campbell brands in certain non-U.S. markets. We provide certain transition services to support the divested business.

Cash flow activity of Campbell International included the following:

												Three Months Ended
												October 27, 2019
Cash flows from discontinued operating activities:
Loss on sale of discontinued operations business												$	40
Cash flows from discontinued investing activities:
Capital expenditures												$	21
Sale of discontinued operations business, net of cash divested												297

Other Divestitures

On October 11, 2019, we completed the sale of our European chips business for £63, or $77. The pre-tax loss recognized in the first quarter of 2020 on the sale was $64, which included the impact of allocated goodwill and foreign currency translation adjustments. For tax purposes, in the first quarter of 2020, the capital loss on the sale was offset by a valuation allowance. The European chips business had net sales of $25 for the three-month period ended October 27, 2019. Earnings were not material in the period. The results of the European chips business through the date of sale were reflected in continuing operations within the Snacks reportable segment.

The components of Accumulated other comprehensive income (loss) consisted of the following:

						Foreign Currency Translation Adjustments(1)						Gains (Losses) on Cash Flow Hedges(2)						Pension and Postretirement Benefit Plan Adjustments(3)						Total Accumulated Comprehensive Income (Loss)
Balance at July 28, 2019						$	(218)					$	(9)					$	29					$	(198)
Other comprehensive income (loss) before reclassifications						(5)						—						—						(5)
Amounts reclassified from accumulated other comprehensive income (loss)(4)						82						1						(6)						77
Net current-period other comprehensive income (loss)						77						1						(6)						72
Balance at Octoboer 27, 2019						$	(141)					$	(8)					$	23					$	(126)
Balance at August 2, 2020						$	(10)					$	(7)					$	7					$	(10)
Other comprehensive income (loss) before reclassifications						2						—						—						2
Amounts reclassified from accumulated other comprehensive income (loss)						—						—						(1)						(1)
Net current-period other comprehensive income (loss)						2						—						(1)						1
Balance at November 1, 2020						$	(8)					$	(7)					$	6					$	(9)

(1)Included no tax as of November 1, 2020, and August 2, 2020, and tax expense of $4 as of October 27, 2019, and July 28, 2019.

Amounts related to noncontrolling interests were not material.

The amounts reclassified from Accumulated other comprehensive income (loss) consisted of the following:

												Three Months Ended
Details about Accumulated Other Comprehensive Income (Loss) Components																		November 1, 2020						October 27, 2019						Location of (Gain) Loss Recognized in Earnings
Foreign currency translation adjustments:
Currency translation (gains) losses realized upon disposal of businesses																		$	—					$	23					Other expenses / (income)
Currency translation (gains) losses realized upon disposal of businesses																		—						59						Earnings (loss) from discontinued operations
Total before tax																		—						82
Tax expense (benefit)																		—						—
(Gain) loss, net of tax																		$	—					$	82
(Gains) losses on cash flow hedges:
Foreign exchange forward contracts																		$	—					$	1					Earnings (loss) from discontinued operations
Forward starting interest rate swaps																		—						1						Interest expense
Total before tax																		—						2
Tax expense (benefit)																		—						(1)
(Gain) loss, net of tax																		$	—					$	1
Pension and postretirement benefit adjustments:
Prior service credit																		$	(1)					$	(7)					Other expenses / (income)
Tax expense (benefit)																		—						1
(Gain) loss, net of tax																		$	(1)					$	(6)

The following table shows the changes in the carrying amount of goodwill by business segment:

			Meals & Beverages						Snacks						Total
Net balance at August 2, 2020			$	975					$	3,011					$	3,986
Foreign currency translation adjustment			1						—						1
Net balance at November 1, 2020			$	976					$	3,011					$	3,987

The following table summarizes balance sheet information for intangible assets, excluding goodwill, subject to amortization and intangible assets not subject to amortization:

						November 1, 2020												August 2, 2020
Intangible Assets						Cost			Accumulated Amortization			Net						Cost			Accumulated Amortization			Net
Amortizable intangible assets
Customer relationships						$	851		$	(122)		$	729					$	851		$	(112)		$	739
Non-amortizable intangible assets
Trademarks												2,611												2,611
Total net intangible assets												$	3,340											$	3,350

Non-amortizable intangible assets consist of trademarks. As of November 1, 2020, trademarks primarily included $1,978 associated with Snyder's-Lance. Of the carrying values of all indefinite-lived trademarks, $620 related to Snyder's of Hanover trademark, $292 related to the Pace trademark, and $280 related to the Pacific Foods trademark.

Amortization of intangible assets in Earnings from continuing operations was $10 and $11 for the three-month periods ended November 1, 2020, and October 27, 2019, respectively. As of November 1, 2020, amortizable intangible assets had a weighted-average remaining useful life of 18 years. Amortization expense for the next 5 years is estimated to be approximately $42 per year.

•Meals & Beverages, which includes the retail and foodservice businesses in the U.S. and Canada. The segment includes the following products: Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks; Pacific Foods broth, soups and non-dairy beverages; Prego pasta sauces; Pace Mexican sauces; Campbell’s gravies, pasta, beans and dinner sauces; Swanson canned poultry; Plum baby food and snacks; V8 juices and beverages; and Campbell’s tomato juice; and

•Snacks, which consists of Pepperidge Farm cookies, crackers, fresh bakery and frozen products in U.S. retail, including Milano cookies and Goldfish crackers; and Snyder’s of Hanover pretzels, Lance sandwich crackers, Cape Cod and Kettle Brand potato chips, Late July snacks, Snack Factory Pretzel Crisps, Pop Secret popcorn, Emerald nuts, and other snacking products in the U.S. and Canada. The segment includes the retail business in Latin America. The segment also included the results of our European chips business, which was sold on October 11, 2019.

												Three Months Ended
																		November 1, 2020						October 27, 2019
Net sales
Meals & Beverages																		$	1,342					$	1,194
Snacks																		998						989
Total																		$	2,340					$	2,183

												Three Months Ended
																		November 1, 2020						October 27, 2019
Earnings before interest and taxes
Meals & Beverages																		$	333					$	282
Snacks																		139						125
Corporate(1)																		(10)						(87)
Restructuring charges(2)																		(1)						(3)
Total																		$	461					$	317

(1)Represents unallocated items. Pension benefit settlement adjustments are included in Corporate. There were settlement gains of $4 in the three-month period ended November 1, 2020. A loss of $64 on the sale of our European chips business was included in the three-month period ended October 27, 2019. Costs related to the cost savings initiatives were $5 and $8 in the three-month periods ended November 1, 2020, and October 27, 2019, respectively.

(2)See Note 7 for additional information.

Our net sales based on product categories are as follows:

												Three Months Ended
																		November 1, 2020						October 27, 2019
Net sales
Soup																		$	826					$	708
Snacks																		1,008						1,010
Other simple meals																		311						283
Beverages																		195						182
Total																		$	2,340					$	2,183

Soup includes various soup, broths and stock products. Snacks include cookies, pretzels, crackers, popcorn, nuts, potato chips, tortilla chips and other salty snacks and baked products. Other simple meals include sauces and Plum products. Beverages include V8 juices and beverages, Campbell’s tomato juice and Pacific Foods non-dairy beverages.

Multi-year Cost Savings Initiatives and Snyder's-Lance Cost Transformation Program and Integration

Beginning in fiscal 2015, we implemented initiatives to reduce costs and to streamline our organizational structure.

In recent years, we expanded these initiatives by further optimizing our supply chain and manufacturing networks, including closing our manufacturing facility in Toronto, Ontario, as well as our information technology infrastructure.

On March 26, 2018, we completed the acquisition of Snyder's-Lance. Prior to the acquisition, Snyder's-Lance launched a cost transformation program following a comprehensive review of its operations with the goal of significantly improving its financial performance. We continue to implement this program. In addition, we have identified opportunities for additional cost synergies as we integrate Snyder's-Lance.

Cost estimates, as well as timing for certain activities, are continuing to be developed.

A summary of the pre-tax charges recorded in Earnings from continuing operations related to these initiatives is as follows:

									Three Months Ended
															November 1, 2020						October 27, 2019						Recognized as of November 1, 2020
Restructuring charges															$	1					$	3					$	239
Administrative expenses															4						8						315
Cost of products sold															1						—						77
Marketing and selling expenses															—						—						12
Research and development expenses															—						—						4
Total pre-tax charges															$	6					$	11					$	647

			Recognized as of November 1, 2020
Severance pay and benefits			$	19
Implementation costs and other related costs			4
Total			$	23

As of April 28, 2019, we incurred substantially all of the costs for actions associated with discontinued operations. All of the costs were cash expenditures.

A summary of the pre-tax costs in Earnings from continuing operations associated with the initiatives is as follows:

			Recognized as of November 1, 2020
Severance pay and benefits			$	215
Asset impairment/accelerated depreciation			67
Implementation costs and other related costs			365
Total			$	647

The total estimated pre-tax costs for actions associated with continuing operations that have been identified are approximately $700 to $730 and we expect to incur the costs through 2022. This estimate will be updated as costs for the expanded initiatives are developed.

We expect the costs for actions associated with continuing operations that have been identified to date to consist of the following: approximately $220 to $225 in severance pay and benefits; approximately $90 in asset impairment and accelerated depreciation; and approximately $390 to $415 in implementation costs and other related costs. We expect these pre-tax costs to be associated with our segments as follows: Meals & Beverages - approximately 32%; Snacks - approximately 44%; and Corporate - approximately 24%.

Of the aggregate $700 to $730 of pre-tax costs associated with continuing operations identified to date, we expect approximately $595 to $625 will be cash expenditures. In addition, we expect to invest approximately $455 in capital expenditures through 2022, of which we invested $351 as of November 1, 2020. The capital expenditures primarily relate to a U.S. warehouse optimization project, improvement of quality, safety and cost structure across the Snyder’s-Lance manufacturing network, implementation of an SAP enterprise-resource planning system for Snyder's-Lance, optimization of information technology infrastructure and applications, transition of production of the Toronto manufacturing facility to our U.S. thermal plants, insourcing of manufacturing for certain simple meal products, and optimization of the Snyder’s-Lance warehouse and distribution network.

A summary of the restructuring activity and related reserves associated with continuing operations at November 1, 2020, is as follows:

						Severance Pay and Benefits																		Implementation Costs and Other Related Costs(2)																		Total Charges
Accrued balance at August 2, 2020(1)						$	15
2021 charges						1																		5																		$	6
2021 cash payments						(6)
Accrued balance at November 1, 2020(1)						$	10

(1)Includes $3 of severance pay and benefits recorded in Other liabilities in the Consolidated Balance Sheet.

(2)Includes other costs recognized as incurred that are not reflected in the restructuring reserve in the Consolidated Balance Sheet. The costs are included in Administrative expenses and Cost of products sold in the Consolidated Statements of Earnings.

Segment operating results do not include restructuring charges, implementation costs and other related costs because we evaluate segment performance excluding such charges. A summary of the pre-tax costs in Earnings from continuing operations associated with segments is as follows:

									November 1, 2020
									Three Months Ended						Costs Incurred to Date
Meals & Beverages									$	—					$	220
Snacks									5						256
Corporate									1						171
Total									$	6					$	647

For the periods presented in the Consolidated Statements of Earnings, the calculations of basic EPS and EPS assuming dilution vary in that the weighted average shares outstanding assuming dilution include the incremental effect of stock options and other share-based payment awards, except when such effect would be antidilutive. The earnings per share calculation for the three-month periods ended November 1, 2020 and October 27, 2019, excludes approximately 1 million stock options that would have been antidilutive.

Components of net benefit expense (income) were as follows:

			Three Months Ended
			Pension												Postretirement
			November 1, 2020						October 27, 2019						November 1, 2020						October 27, 2019
Service cost			$	5					$	5					$	—					$	—
Interest cost			10						17						1						2
Expected return on plan assets			(31)						(34)						—						—
Amortization of prior service cost			—						—						(1)						(7)
Settlement gains			(4)						(1)						—						—
Net periodic benefit expense (income)			$	(20)					$	(13)					$	—					$	(5)

The components of net periodic benefit expense (income) other than the service cost component associated with continuing operations are included in Other expenses / (income) in the Consolidated Statements of Earnings.

The settlement gains of $4 for three-month period ended November 1, 2020 resulted from the level of lump sum distributions associated with a U.S. pension plan and a Canadian pension plan. The settlement gain of $1 for the three-month period ended October 27, 2019 resulted from the level of lump sum distributions associated with a Canadian pension plan.

Net periodic pension benefit expense (income) associated with discontinued operations was not material for the three-month period ended October 27, 2019.

The components of lease costs were as follows:

												Three Months Ended
																		November 1, 2020						October 27, 2019
Operating lease cost																		$	20					$	19
Finance lease - amortization of right-of-use (ROU) assets																		1						—
Short-term lease cost																		10						10
Variable lease cost(1)																		46						43
Sublease income																		(1)						—
Total(2)																		$	76					$	72

(1)Includes labor and other overhead in our service contracts with embedded leases.

(2)Total lease cost in the three-month period ended October 27, 2019, included $2 related to discontinued operations.

The following tables summarize the lease amounts recorded in the Consolidated Balance Sheets:

						Operating Leases
						Balance Sheet Location						November 1, 2020						August 2, 2020
ROU assets, net						Other assets						$	241					$	254
Lease liabilities (current)						Accrued liabilities						$	57					$	67
Lease liabilities (noncurrent)						Other liabilities						$	180					$	184

						Finance Leases
						Balance Sheet Location						November 1, 2020						August 2, 2020
ROU assets, net						Plant assets, net of depreciation						$	11					$	10
Lease liabilities (current)						Short-term borrowings						$	4					$	3
Lease liabilities (noncurrent)						Long-term debt						$	8					$	7

The following table summarizes cash flow and other information related to leases:

												Three Months Ended
												November 1, 2020						October 27, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases												$	21					$	19
Financing cash flows from finance leases												$	1					$	—
ROU assets obtained in exchange for lease obligations:
Operating leases												$	6					$	46
Finance leases												$	2					$	—
ROU assets divested with businesses sold:
Operating leases												$	—					$	6

The principal market risks to which we are exposed are changes in foreign currency exchange rates, interest rates and commodity prices. In addition, we are exposed to equity price changes related to certain deferred compensation obligations. In order to manage these exposures, we follow established risk management policies and procedures, including the use of derivative contracts such as swaps, rate locks, options, forwards and commodity futures. We enter into these derivative contracts for periods consistent with the related underlying exposures, and the contracts do not constitute positions independent of those exposures. We do not enter into derivative contracts for speculative purposes and do not use leveraged instruments. Our derivative programs include instruments that qualify for hedge accounting treatment and instruments that are not designated as accounting hedges.

Concentration of Credit Risk

We are exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. To mitigate counterparty credit risk, we enter into contracts only with carefully selected, leading, credit-worthy financial institutions, and distribute contracts among several financial institutions to reduce the concentration of credit risk. We did not have credit-risk-related contingent features in our derivative instruments as of November 1, 2020, or August 2, 2020.

We are also exposed to credit risk from our customers. During 2020, our largest customer accounted for approximately 21% of consolidated net sales from continuing operations. Our five largest customers accounted for approximately 44% of our consolidated net sales from continuing operations in 2020.

We closely monitor credit risk associated with counterparties and customers.

We are exposed to foreign currency exchange risk related to third-party transactions and intercompany transactions, including intercompany debt. Principal currencies hedged include the Canadian dollar and, prior to the sale of Arnott's and other

international operations, the Australian dollar. We utilize foreign exchange forward purchase and sale contracts to hedge these exposures. The contracts are either designated as cash-flow hedging instruments or are undesignated. We hedge portions of our forecasted foreign currency transaction exposure with foreign exchange forward contracts for periods typically up to 18 months. To hedge currency exposures related to intercompany debt, we enter into foreign exchange forward purchase and sale contracts for periods consistent with the underlying debt. The notional amount of foreign exchange forward contracts accounted for as cash-flow hedges was $124 at November 1, 2020, and $164 at August 2, 2020. The effective portion of the changes in fair value on these instruments is recorded in other comprehensive income (loss) and is reclassified into the Consolidated Statements of Earnings on the same line item and the same period in which the underlying hedged transaction affects earnings. The notional amount of foreign exchange forward contracts that are not designated as accounting hedges was $26 at November 1, 2020, and $19 at August 2, 2020.

We manage our exposure to changes in interest rates by optimizing the use of variable-rate and fixed-rate debt and by utilizing interest rate swaps in order to maintain our variable-to-total debt ratio within targeted guidelines. Receive fixed rate/pay variable rate interest rate swaps are accounted for as fair-value hedges. We manage our exposure to interest rate volatility on future debt issuances by entering into forward starting interest rate swaps or treasury rate lock contracts to lock in the rate on the interest payments related to the anticipated debt issuances. The contracts are either designated as cash-flow hedging instruments or are undesignated. The effective portion of the changes in fair value on designated instruments is recorded in other comprehensive income (loss) and reclassified into interest expense over the life of the debt. The change in fair value on undesignated instruments is recorded in interest expense. There were no forward starting interest rate swaps or treasury rate lock contracts outstanding as of November 1, 2020, or August 2, 2020.

We principally use a combination of purchase orders and various short- and long-term supply arrangements in connection with the purchase of raw materials, including certain commodities and agricultural products. We also enter into commodity futures, options and swap contracts to reduce the volatility of price fluctuations of wheat, soybean oil, diesel fuel, natural gas, cocoa, aluminum, soybean meal and corn. Commodity futures, options, and swap contracts are either designated as cash-flow hedging instruments or are undesignated. We hedge a portion of commodity requirements for periods typically up to 18 months. There were no commodity contracts accounted for as cash-flow hedges as of November 1, 2020, or August 2, 2020. The notional amount of commodity contracts not designated as accounting hedges was $116 at November 1, 2020, and $137 at August 2, 2020.

In 2017, we entered into a supply contract under which prices for certain raw materials are established based on anticipated volume requirements over a twelve-month period. Certain prices under the contract are based in part on certain component parts of the raw materials that are in excess of our needs or not required for our operations, thereby creating an embedded derivative requiring bifurcation. We net settle amounts due under the contract with our counterparty. The notional value was approximately $13 as of November 1, 2020, and $34 as of August 2, 2020.

Unrealized gains (losses) and settlements are included in Cost of products sold in our Consolidated Statements of Earnings.

We enter into swap contracts which hedge a portion of exposures relating to certain deferred compensation obligations linked to the total return of our capital stock, the total return of the Vanguard Institutional Index Institutional Plus Shares, and the total return of the Vanguard Total International Stock Index. Under these contracts, we pay variable interest rates and receive from the counterparty either: the total return on our capital stock; the total return of the Standard & Poor's 500 Index, which is expected to approximate the total return of the Vanguard Institutional Index Institutional Plus Shares; or the total return of the iShares MSCI EAFE Index, which is expected to approximate the total return of the Vanguard Total International Stock Index. These contracts were not designated as hedges for accounting purposes. Unrealized gains (losses) and settlements are included in Administrative expenses in the Consolidated Statements of Earnings. We enter into these contracts for periods typically not exceeding 12 months. The notional amounts of the contracts were $22 as of November 1, 2020, and August 2, 2020.

			Balance Sheet Classification						November 1, 2020						August 2, 2020
Asset Derivatives
Derivatives designated as hedges:
Foreign exchange forward contracts			Other current assets						$	1					$	1
Total derivatives designated as hedges									$	1					$	1
Derivatives not designated as hedges:
Commodity derivative contracts			Other current assets						$	11					$	7
Deferred compensation derivative contracts			Other current assets						—						4
Total derivatives not designated as hedges									$	11					$	11
Total asset derivatives									$	12					$	12

			Balance Sheet Classification						November 1, 2020						August 2, 2020
Liability Derivatives
Derivatives designated as hedges:
Foreign exchange forward contracts			Accrued liabilities						$	2					$	2
Total derivatives designated as hedges									$	2					$	2
Derivatives not designated as hedges:
Commodity derivative contracts			Accrued liabilities						$	7					$	9
Total derivatives not designated as hedges									$	7					$	9
Total liability derivatives									$	9					$	11

We do not offset the fair values of derivative assets and liabilities executed with the same counterparty that are generally subject to enforceable netting agreements. However, if we were to offset and record the asset and liability balances of derivatives on a net basis, the amounts presented in the Consolidated Balance Sheets as of November 1, 2020, and August 2, 2020, would be adjusted as detailed in the following table:

						November 1, 2020																		August 2, 2020
Derivative Instrument						Gross Amounts Presented in the Consolidated Balance Sheet						Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to Netting Agreements						Net Amount						Gross Amounts Presented in the Consolidated Balance Sheet						Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to Netting Agreements						Net Amount
Total asset derivatives						$	12					$	(4)					$	8					$	12					$	(4)					$	8
Total liability derivatives						$	9					$	(4)					$	5					$	11					$	(4)					$	7

We are required to maintain cash margin accounts in connection with funding the settlement of open positions for exchange-traded commodity derivative instruments. The cash margin account balance was not material at November 1, 2020, and $8 at August 2, 2020, which was included in Other current assets in the Consolidated Balance Sheets.

The following tables show the effect of our derivative instruments designated as cash-flow hedges for the three-month periods ended November 1, 2020, and October 27, 2019, in other comprehensive income (loss) (OCI) and the Consolidated Statements of Earnings:

									Total Cash-Flow Hedge OCI Activity
Derivatives Designated as Cash-Flow Hedges									November 1, 2020						October 27, 2019
Three Months Ended
OCI derivative gain (loss) at beginning of year									$	(8)					$	(11)
Effective portion of changes in fair value recognized in OCI:
Foreign exchange forward contracts									(1)						—
Amount of (gain) loss reclassified from OCI to earnings:			Location in Earnings
Foreign exchange forward contracts			Earnings (loss) from discontinued operations						—						1
Forward starting interest rate swaps			Interest expense						—						1
OCI derivative gain (loss) at end of quarter									$	(9)					$	(9)