BUSINESS SEGMENTS

6 Months Ended

Jan. 28, 2012

BUSINESS SEGMENTS

BUSINESS SEGMENTS

7.             BUSINESS SEGMENTS

The Company has several operating divisions aggregated under the wholesale segment, which is the Company’s only reportable segment. These operating divisions have similar products and services, customer channels, distribution methods and historical margins. The wholesale segment is engaged in national distribution of natural, organic and specialty foods, produce and related products in the United States and Canada. The Company has additional operating divisions that do not meet the quantitative thresholds for reportable segments and are therefore aggregated under the caption of “Other”. “Other” includes a retail division, which engages in the sale of natural foods and related products to the general public through retail storefronts on the east coast of the United States, a manufacturing division, which engages in importing, roasting and packaging of nuts, seeds, dried fruit, trail mixes, granola, natural and organic snack items, confections and the Company’s branded product lines. “Other” also includes certain corporate operating expenses that are not allocated to operating divisions and are necessary to operate the Company’s headquarters located in Providence, Rhode Island, which include depreciation, salaries, retainers, and other related expenses of officers, directors, information technology, corporate finance (including professional services), governance, legal, human resources and internal audit. As the Company continues to expand its business and serve its customers through a national platform, these corporate expense amounts have increased. These unallocated corporate expenses are the primary driver behind the operating losses within the “Other” category below. Non-operating expenses that are not allocated to the operating divisions are under the caption of “Unallocated Expenses”. The Company does not record its revenues for financial reporting purposes by product group, and it is therefore impracticable for the Company to report them accordingly.

Following reflects business segment information for the periods indicated (in thousands):

	Wholesale		Other			Eliminations			Unallocated			Consolidated
Three months ended January 28, 2012:
Net sales	$	1,273,400	$	34,987		$	(21,477	)				$	1,286,910
Operating income (loss)	43,139		(6,589		)	963						37,513
Interest expense									$	1,382		1,382
Interest income									(219		)	(219		)
Other, net									27			27
Income before income taxes												36,323
Depreciation and amortization	9,190		408									9,598
Capital expenditures	4,479		642									5,121
Goodwill	176,245		17,331									193,576
Total assets	1,400,094		153,017			(6,288		)				1,546,823
Three months ended January 29, 2011:
Net sales	$	1,099,960	$	39,233		$	(24,744	)				$	1,114,449
Operating income (loss)	39,609		(7,698		)	(169		)				31,742
Interest expense									$	1,298		1,298
Interest income									(57		)	(57		)
Other, net									(202		)	(202		)
Income before income taxes												30,703
Depreciation and amortization	8,188		699									8,887
Capital expenditures	6,010		708									6,718
Goodwill	172,066		17,331									189,397
Total assets	1,262,797		140,265			(8,395		)				1,394,667

	Wholesale		Other			Eliminations			Unallocated			Consolidated
Six months ended January 28, 2012:
Net sales	$	2,476,482	$	77,455		$	(49,599	)				$	2,504,338
Operating income (loss)	81,541		(17,336		)	(637		)				63,568
Interest expense									$	2,455		2,455
Interest income									(389		)	(389		)
Other, net									168			168
Income before income taxes												61,334
Depreciation and amortization	18,375		815									19,190
Capital expenditures	11,986		936									12,922
Goodwill	176,245		17,331									193,576
Total assets	1,400,094		153,017			(6,288		)				1,546,823
Six months ended January 29, 2011:
Net sales	$	2,139,735	$	83,606		$	(55,925	)				$	2,167,416
Operating income (loss)	78,449		(16,168		)	(883		)				61,398
Interest expense									$	2,684		2,684
Interest income									(265		)	(265		)
Other, net									(255		)	(255		)
Income before income taxes												59,234
Depreciation and amortization	15,830		1,412									17,242
Capital expenditures	13,255		1,012									14,267
Goodwill	172,066		17,331									189,397
Total assets	1,262,797		140,265			(8,395		)				1,394,667