SEGMENTS

We manage and evaluate our operations in two reportable segments: North America and Europe. Both of these segments manufacture and supply a broad portfolio of single-use products that are used to serve food and beverages and are available in plastic, paper, foam, post-consumer recycled content and annually renewable materials. We manage our operating segments separately based on the products and requirements of the different markets. North America includes all of our entities established in the United States, Canada, Mexico and Puerto Rico, and our corporate function. Europe includes all U.K. entities. Other includes Panama.

The accounting policies of the operating segments are the same as those described in Note 2 to the consolidated financial statements in our 2010 Annual Report on Form 10-K. Segment operating results are measured based on operating income (loss). We account for intersegment net sales on an arm’s-length pricing basis.



(in thousands)	North America			Europe			Other		Total Segments			Eliminations			Total
For the thirteen weeks ended June 26, 2011
Revenues from external customers	$	399,029		$	33,014		$	3,833	$	435,876		$	—		$	435,876
Intersegment net sales	10,044			—			—		10,044			(10,044		)	—
Operating (loss) income	(11,215		)	347			408		(10,460		)	72			(10,388		)
For the thirteen weeks ended June 27, 2010
Revenues from external customers	$	387,113		$	28,892		$	3,174	$	419,179		$	—		$	419,179
Intersegment net sales	7,549			—			—		7,549			(7,549		)	—
Operating (loss) income	(22,984		)	177			210		(22,597		)	174			(22,423		)
For the twenty-six weeks ended June 26, 2011
Revenues from external customers	$	739,770		$	59,802		$	7,449	$	807,021		$	—		$	807,021
Intersegment net sales	17,936			—			—		17,936			(17,936		)	—
Operating (loss) income	(14,706		)	(9		)	758		(13,957		)	(2,142		)	(16,099		)
For the twenty-six weeks ended June 27, 2010
Revenues from external customers	$	703,845		$	53,990		$	6,217	$	764,052		$	—		$	764,052
Intersegment net sales	11,219			—			—		11,219			(11,219		)	—
Operating (loss) income	(19,475		)	(1,228		)	535		(20,168		)	243			(19,925		)

(Continued)

(10) SEGMENTS (CONTINUED)



	For the thirteen weeks ended						For the twenty-six weeks ended
(in thousands)	June 26, 2011			June 27, 2010			June 26, 2011			June 27, 2010
Operating income (loss):
Total segment and other operating loss	$	(10,460	)	$	(22,597	)	$	(13,957	)	$	(20,168	)
Elimination of intersegment operating loss (income)	72			174			(2,142		)	243
Interest expense	(17,682		)	(17,414		)	(34,995		)	(34,548		)
Interest income	26			79			59			113
Foreign currency exchange (loss) gain, net	(215		)	26			(2,373		)	(1,350		)
Gain from bargain purchase	—			1,703			—			1,703
Loss before income taxes	$	(28,259	)	$	(38,029	)	$	(53,408	)	$	(54,007	)