Note 12 - Business Segments

9 Months Ended

Mar. 27, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 12 – Business Segments

The Company’s management reviews the results of the Company’s operations by the following three business segments:

• 1-800-Flowers.com Consumer Floral,

• BloomNet Wire Service, and

• Gourmet Food and Gift Baskets

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 the effect of corporate overhead (see (*) below), nor does it include depreciation and amortization, other (income) expense, net and income taxes, or stock-based compensation and certain Harry & David acquisition/integration costs, both of which are included within corporate overhead. Assets and liabilities are reviewed at the consolidated level by management and not accounted for by segment.

	Three Months Ended						Nine Months Ended
Net Revenues:	March 27, 2016			March 29, 2015			March 27, 2016			March 29, 2015
				(in thousands)
Segment Net Revenues:
1-800-Flowers.com Consumer Floral	$	113,182		$	116,705		$	280,956		$	290,703
BloomNet Wire Service		22,517			22,950			63,740			63,071
Gourmet Food & Gift Baskets		99,096			92,951			595,006			539,979
Corporate		262			283			817			795
Intercompany eliminations		(850	)		(652	)		(1,890	)		(1,333	)
Total net revenues	$	234,207		$	232,237		$	938,629		$	893,215

	Three Months Ended						Nine Months Ended
Operating Income	March 27, 2016			March 29, 2015			March 27, 2016			March 29, 2015
				(in thousands)
Segment Contribution Margin:
1-800-Flowers.com Consumer Floral	$	13,748		$	12,557		$	33,031		$	29,334
Bloomnet Wire Service		7,747			7,290			22,017			20,455
Gourmet Food & Gift Baskets		(6,753	)		(5,413	)		88,626			82,607
Segment Contribution Margin Subtotal		14,742			14,434			143,674			132,396
Corporate (a)		(20,432	)		(22,847	)		(60,519	)		(58,824	)
Depreciation and amortization		(7,546	)		(7,825	)		(24,279	)		(21,605	)
Operating income	$	(13,236	)	$	(16,238	)	$	58,876		$	51,967

(a) Corporate expenses consist of the Company’s enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions, as well as Stock-Based Compensation. 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 categories based upon usage, are included within corporate expenses as they are not directly allocable to a specific segment.