Business Segments (Tables)

3 Months Ended

Sep. 30, 2012

Business Segments

Schedule of business segments

	Three Months Ended
Net revenues	September 30, 2012			October 2, 2011
	(in thousands)
Segment Net Revenues:
Consumer Floral	$	72,777		$	70,140
BloomNet Wire Service	19,767			18,505
Gourmet Food & Gift Baskets	28,406			28,625
Corporate (**)	194			187
Intercompany eliminations	(276		)	(259		)
Total net revenues	$	120,868		$	117,198

	Three Months Ended
Operating Loss	September 30, 2012			October 2, 2011
	(in thousands)
Segment Contribution Margin (*):
Consumer Floral	$	6,886		$	5,967
Bloomnet Wire Service	5,796			4,593
Gourmet Food & Gift Baskets	(2,487		)	(1,926		)
Segment Contribution Margin Subtotal	10,195			8,634
Corporate (**)	(12,184		)	(11,465		)
Depreciation and amortization	(4,458		)	(4,902		)
Operating loss	$	(6,447	)	$	(7,733	)

(*)  Segment performance is measured based on contribution margin, which includes only the direct controllable revenue and operating expenses of the segments. As such, management’s measure of profitability for these segments does not include corporate overhead, which includes stock-based compensation, (see footnote (**) below), depreciation and amortization, net interest expense and income taxes. Assets and liabilities are reviewed at the consolidated level by management and are not accounted for by segment.

(**)  The Company’s enterprise shared service cost centers include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions.  In order to leverage the Company’s infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions, other than those of the Customer Service Center, which are allocated directly to the above segments based upon usage, are included within corporate expenses, which includes stock-based compensation, as they are not directly allocable to a specific segment.