Segment Reporting

12 Months Ended

Jan. 02, 2016

Segment Reporting [Abstract]

Segment Reporting

Note 22. Segment Reporting

The company’s DSD Segment primarily produces fresh packaged breads, buns, rolls, tortillas, and snack cakes and the Warehouse Segment produces fresh and frozen bread and rolls and snack cakes.

The company purchased DKB and Alpine during fiscal 2015, See Note 8, Acquisitions, for more detailed disclosures for these acquisitions.  DKB is included in our DSD Segment and Alpine is included in our Warehouse Segment.  Their results from operations and impact on our total assets are included in the tables below in their respective segment.  Effective the first day of fiscal 2014, we reclassified our tortilla operation from a Warehouse Segment bakery to the DSD Segment. This reclassification was made to better align their sales with the delivery method primarily used to serve their customers. All prior period information has been recasted to reflect this change.

During the fourth quarter of fiscal 2014, we revised net sales. Historically, certain immaterial discounts had been recorded as an expense to selling, distribution and administrative costs. These discounts are now recorded as contra revenue. See Note 3, Financial Statement Revisions, for more detailed disclosure of this revision. All prior period information was revised in our 2014 Form 10-K to reflect this change.

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 of these segments is as follows for fiscal years 2015, 2014, and 2013:

	Fiscal 2015			Fiscal 2014			Fiscal 2013
	(Amounts in thousands)
Sales:
DSD Segment	$	3,242,482		$	3,227,695		$	3,171,241
Warehouse Segment		733,170			723,541			774,443
Eliminations:
Sales from Warehouse Segment to DSD Segment		(134,013	)		(130,175	)		(122,082	)
Sales from DSD Segment to Warehouse Segment		(63,134	)		(72,088	)		(90,986	)
	$	3,778,505		$	3,748,973		$	3,732,616
Depreciation and amortization:
DSD Segment	$	115,801		$	113,881		$	102,341
Warehouse Segment		16,734			15,166			15,483
Other(1)		(360	)		(86	)		667
	$	132,175		$	128,961		$	118,491
Income from operations:
DSD Segment(2)	$	302,361		$	284,231		$	347,114
Warehouse Segment		55,266			51,451			51,934
Other(1)		(59,748	)		(60,287	)		(63,815	)
	$	297,879		$	275,395		$	335,233
Interest expense	$	26,815		$	28,288		$	28,875
Interest income	$	(21,967	)	$	(20,947	)	$	(16,015	)
Income before income taxes	$	293,031		$	268,054		$	322,373
Capital expenditures:
DSD Segment	$	72,148		$	73,454		$	81,664
Warehouse Segment		9,596			6,468			7,051
Other(1)		9,029			3,856			10,466
	$	90,773		$	83,778		$	99,181

	As of
	January 2, 2016		January 3, 2015
Assets:
DSD Segment	$	2,409,902	$	2,094,047
Warehouse Segment		334,029		201,240
Other (3)		141,237		113,687
	$	2,885,168	$	2,408,974

(1) Represents the company’s corporate head office amounts, acquisition costs, and the fiscal 2014 pension settlement loss.

(2) Includes the gain on acquisition of $50.1 million in fiscal 2013.

(3) Represents the company’s corporate head office assets including primarily cash and cash equivalents, deferred taxes and deferred financing costs.

Sales by product category in each reportable segment are as follows for fiscal years 2015, 2014, and 2013 (amounts in thousands):

	Fiscal 2015						Fiscal 2014						Fiscal 2013
	Total		DSD Segment		Warehouse Segment		Total		DSD Segment		Warehouse Segment		Total		DSD Segment		Warehouse Segment
Branded retail	$	2,150,624	$	2,010,792	$	139,832	$	2,102,028	$	1,971,851	$	130,177	$	2,038,726	$	1,898,016	$	140,710
Store branded retail		571,594		457,234		114,360		608,617		486,886		121,731		645,858		504,707		141,151
Non-retail and other		1,056,287		711,322		344,965		1,038,328		696,870		341,458		1,048,032		677,532		370,500
Total	$	3,778,505	$	3,179,348	$	599,157	$	3,748,973	$	3,155,607	$	593,366	$	3,732,616	$	3,080,255	$	652,361