favorable foreign exchange of 11 percentage points and positive net price realization, offset by a decrease in volume. Average diluted shares outstanding decreased by 7 million from fiscal 2008 due to the repurchase of 40 million shares of common stock in fiscal 2009, partially offset by the issuance of 29 million shares of common stock in fiscal 2008 to settle a forward contract with an affiliate of Lehman Brothers, Inc. (Leh- man Brothers), the issuance of common stock upon stock option exercises, the issuance of annual stock awards, the vesting of restricted stock units, and the issuance of shares to acquire Humm Foods. Our businesses are organized into three operating segments: U.S. Retail; International; and Bakeries and Foodservice. The following tables provide the dollar amount and percentage of net sales and operating profit from each segment for fiscal years 2010, 2009, and 2008: Net Sales RESULTS OF SEGMENT OPERATIONS Segment operating profit excludes unallocated corporate items, gain on divestitures, and restructuring, impairment, and other exit costs because these items affecting operating profit are centrally managed at the corporate level and are excluded from the measure of segment profitability reviewed by our executive management. chains operating throughout the United States. Our major prod- uct categories in this business segment are ready-to-eat cereals, refrigerated yogurt, ready-to-serve soup, dry dinners, shelf stable and frozen vegetables, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, grain, fruit and savory snacks, and a wide variety of organic products including soup, granola bars, and cereal. U.S. Retail Segment Our U.S. Retail segment reflects business with a wide variety of grocery stores, mass merchandisers, mem- bership stores, natural food chains, and drug, dollar and discount Annual Report 2010 25 In Millions 2010 2009 2008 Fiscal Year ......................................................................................................................................................................................... ......................................................................................................................................................................................... Segment Operating Profit Percent of Segment Operating Profit Segment Operating Profit Percent of Segment Operating Profit Segment Operating Profit Percent of Segment Operating Profit ............................................................................................................................................................................................................................................................................................................................................................................................ U.S. Retail $2,392.0 83% $2,208.5 84% $1,971.2 82% International 219.2 8 263.5 10 270.3 11 Bakeries and Foodservice 250.1 9 171.0 6 165.4 7 ............................................................................................................................................................................................................................................................................................................................................................................................ Total $2,861.3 100% $2,643.0 100% $2,406.9 100% In Millions 2010 2009 2008 Fiscal Year .................................................................................................................................................................................................. .................................................................................................................................................................................................. Net Sales Percent of Net Sales Net Sales Percent of Net Sales Net Sales Percent of Net Sales ............................................................................................................................................................................................................................................................................................................................................................................................ U.S. Retail $10,323.5 70% $10,052.1 68% $ 9,072.0 66% International 2,702.5 18 2,591.4 18 2,558.8 19 Bakeries and Foodservice 1,770.5 12 2,047.8 14 2,021.3 15 ............................................................................................................................................................................................................................................................................................................................................................................................ Total $14,796.5 100% $14,691.3 100% $13,652.1 100% Segment Operating Profit