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Segment Reporting
 9 Months Ended
Oct. 07, 2017
Segment Reporting [Abstract]  
Segment Reporting

17. SEGMENT REPORTING

The company currently operates two business segments: the DSD Segment and the Warehouse Segment. The DSD Segment produces a wide variety of fresh bakery foods, including fresh breads, buns, rolls, tortillas, and snack cakes, which are sold through a DSD route delivery system to retail and foodservice customers in the East, South, Southwest, California, and select markets in the Midwest, Pacific Northwest, Nevada and Colorado. The Warehouse Segment produces snack cakes, breads and rolls for national retail, foodservice, vending, and co-pack customers and delivers through customers’ warehouse channels.

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 segment’s core operating businesses. Information regarding the operations in these reportable segments is as follows (amounts in thousands):

 

 

 

For the Twelve Weeks Ended

 

 

For the Forty Weeks Ended

 

 

 

October 7, 2017

 

 

October 8, 2016

 

 

October 7, 2017

 

 

October 8, 2016

 

Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DSD Segment

 

$

803,153

 

 

$

784,768

 

 

$

2,628,365

 

 

$

2,603,006

 

Warehouse Segment

 

 

185,219

 

 

 

182,706

 

 

 

596,740

 

 

 

615,798

 

Eliminations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales from Warehouse Segment to DSD Segment

 

 

(39,652

)

 

 

(32,835

)

 

 

(129,637

)

 

 

(111,320

)

Sales from DSD Segment to Warehouse Segment

 

 

(15,898

)

 

 

(15,848

)

 

 

(48,358

)

 

 

(49,316

)

 

 

$

932,822

 

 

$

918,791

 

 

$

3,047,110

 

 

$

3,058,168

 

Gain on divestiture:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warehouse Segment

 

$

—

 

 

$

—

 

 

$

28,875

 

 

$

—

 

 

 

$

—

 

 

$

—

 

 

$

28,875

 

 

$

—

 

Multi-employer pension plan withdrawal costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DSD Segment

 

$

18,268

 

 

$

—

 

 

$

18,268

 

 

$

—

 

 

 

$

18,268

 

 

$

—

 

 

$

18,268

 

 

$

—

 

Restructuring and related impairment charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DSD Segment

 

$

76,625

 

 

$

—

 

 

$

76,625

 

 

$

—

 

Warehouse Segment

 

 

20,091

 

 

 

—

 

 

 

20,091

 

 

 

—

 

Unallocated corporate costs

 

 

3,833

 

 

 

—

 

 

 

3,833

 

 

 

—

 

 

 

$

100,549

 

 

$

—

 

 

$

100,549

 

 

$

—

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DSD Segment

 

$

28,286

 

 

$

27,852

 

 

$

98,703

 

 

$

92,906

 

Warehouse Segment

 

 

4,769

 

 

 

4,585

 

 

 

15,841

 

 

 

15,462

 

Unallocated corporate costs(1)

 

 

(83

)

 

 

93

 

 

 

(256

)

 

 

227

 

 

 

$

32,972

 

 

$

32,530

 

 

$

114,288

 

 

$

108,595

 

Income (loss) from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DSD Segment

 

$

(20,239

)

 

$

66,331

 

 

$

146,719

 

 

$

238,415

 

Warehouse Segment

 

 

(9,082

)

 

 

12,311

 

 

 

47,202

 

 

 

46,762

 

Unallocated corporate costs(2)

 

 

(24,445

)

 

 

(12,511

)

 

 

(77,396

)

 

 

(42,455

)

 

 

$

(53,766

)

 

$

66,131

 

 

$

116,525

 

 

$

242,722

 

Interest expense

 

$

(8,194

)

 

$

(9,440

)

 

$

(28,255

)

 

$

(26,157

)

Interest income

 

$

5,464

 

 

$

4,757

 

 

$

17,199

 

 

$

15,686

 

Income (loss) before income taxes

 

$

(56,496

)

 

$

61,448

 

 

$

105,469

 

 

$

232,251

 

 

The table below presents the assets by segment (amounts in thousands):

Assets:

October 7, 2017

 

 

December 31, 2016

 

DSD Segment

$

2,281,198

 

 

$

2,344,616

 

Warehouse Segment

 

303,756

 

 

 

330,006

 

Other (3)

 

97,725

 

 

 

86,446

 

Total assets

$

2,682,679

 

 

$

2,761,068

 

 

(1)

Represents costs allocated to the company’s corporate head office.

(2)

Represents costs allocated to the company’s corporate head office and pension settlement losses.

(3)

Represents the company’s corporate head office assets including primarily cash and cash equivalents and deferred taxes.

Sales by product category in each reportable segment are as follows for the twelve and forty weeks ended October 7, 2017 and October 8, 2016, respectively (amounts in thousands):

 

 

 

For the Twelve Weeks Ended

 

 

For the Twelve Weeks Ended

 

 

 

October 7, 2017

 

 

October 8, 2016

 

 

 

DSD Segment

 

 

Warehouse Segment

 

 

Total

 

 

DSD Segment

 

 

Warehouse Segment

 

 

Total

 

Branded retail

 

$

514,556

 

 

$

36,242

 

 

$

550,798

 

 

$

496,361

 

 

$

38,366

 

 

$

534,727

 

Store branded retail

 

 

110,822

 

 

 

27,790

 

 

 

138,612

 

 

 

110,625

 

 

 

26,476

 

 

 

137,101

 

Non-retail and other

 

 

161,877

 

 

 

81,535

 

 

 

243,412

 

 

 

161,934

 

 

 

85,029

 

 

 

246,963

 

Total

 

$

787,255

 

 

$

145,567

 

 

$

932,822

 

 

$

768,920

 

 

$

149,871

 

 

$

918,791

 

 

 

 

For the Forty Weeks Ended

 

 

For the Forty Weeks Ended

 

 

 

October 7, 2017

 

 

October 8, 2016

 

 

 

DSD Segment

 

 

Warehouse Segment

 

 

Total

 

 

DSD Segment

 

 

Warehouse Segment

 

 

Total

 

Branded retail

 

$

1,675,246

 

 

$

117,623

 

 

$

1,792,869

 

 

$

1,646,840

 

 

$

137,908

 

 

$

1,784,748

 

Store branded retail

 

 

368,265

 

 

 

86,788

 

 

 

455,053

 

 

 

360,102

 

 

 

94,023

 

 

 

454,125

 

Non-retail and other

 

 

536,496

 

 

 

262,692

 

 

 

799,188

 

 

 

546,748

 

 

 

272,547

 

 

 

819,295

 

Total

 

$

2,580,007

 

 

$

467,103

 

 

$

3,047,110

 

 

$

2,553,690

 

 

$

504,478

 

 

$

3,058,168