Segment Reporting

9 Months Ended

Oct. 06, 2012

Segment Reporting

15. SEGMENT REPORTING

The company’s DSD segment produces fresh and frozen packaged bread, rolls, tortillas, and snack products and the warehouse delivery segment produces frozen bread, rolls, tortillas and snack products. The company evaluates each segment’s performance based on income or loss before interest and income taxes, excluding unallocated expenses and charges which the company’s management deems to be an overall corporate cost or a cost not reflective of the segments’ core operating businesses. Information regarding the operations in these reportable segments is as follows:

	For the Twelve Weeks Ended				For the Forty Weeks Ended
	October 6, 2012		October 8, 2011		October 6, 2012		October 8, 2011
SALES:
DSD	$	601,360	$	560,630	$	1,918,617	$	1,745,625
Warehouse delivery		149,723		145,808		487,551		479,958
Eliminations: Sales from warehouse delivery to DSD		(24,691)		(24,207)		(84,459)		(85,366)
Sales from DSD to warehouse delivery		(9,110)		(6,862)		(24,660)		(20,427)
	$	717,282	$	675,369	$	2,297,049	$	2,119,790
DEPRECIATION AND AMORTIZATION:
DSD	$	20,716	$	18,069	$	62,684	$	56,103
Warehouse delivery		4,067		4,600		14,140		15,249
Unallocated corporate costs		(26)		147		(73)		354
	$	24,757	$	22,816	$	76,751	$	71,706
INCOME FROM OPERATIONS:
DSD	$	58,571	$	46,955	$	173,962	$	162,513
Warehouse delivery		7,566		7,305		23,480		23,753
Unallocated corporate costs		(13,446)		(6,497)		(38,117)		(33,874)
	$	52,691	$	47,763	$	159,325	$	152,392
NET INTEREST (EXPENSE) INCOME	$	(3,568)	$	265	$	(6,527)	$	2,623
INCOME BEFORE INCOME TAXES	$	49,123	$	48,028	$	152,798	$	155,015

The assets of our DSD segment were $1,626.0 million at October 6, 2012 and $1,227.9 million at December 31, 2011. This increase is primarily from the Lepage acquisition which was assigned to the DSD segment.

Sales by product category in each reportable segment are as follows (amounts in thousands):

	For the Twelve Weeks Ended October 6, 2012						For the Twelve Weeks Ended October 8, 2011
	DSD		Warehouse delivery		Total		DSD		Warehouse delivery		Total
Branded Retail	$	350,884	$	21,830	$	372,714	$	327,032	$	22,037	$	349,069
Store Branded Retail		104,269		26,852		131,121		92,561		30,690		123,251
Non-retail and Other		137,097		76,350		213,447		134,175		68,874		203,049
Total	$	592,250	$	125,032	$	717,282	$	553,768	$	121,601	$	675,369
	For the Forty Weeks Ended October 6, 2012						For the Forty Weeks Ended October 8, 2011
	DSD		Warehouse delivery		Total		DSD		Warehouse delivery		Total
Branded Retail	$	1,120,434	$	75,168	$	1,195,602	$	1,008,168	$	73,763	$	1,081,931
Store Branded Retail		321,108		91,039		412,147		283,825		99,308		383,133
Non-retail and Other		452,415		236,885		689,300		433,205		221,521		654,726
Total	$	1,893,957	$	403,092	$	2,297,049	$	1,725,198	$	394,592	$	2,119,790