Segment and Geographic Information

6 Months Ended

Jun. 30, 2011

Segment and Geographic Information [Abstract]

Segment Reporting Disclosure

Segment and Geographic Information

As of June 30, 2011, we operated 25 distribution centers (excluding two distribution facilities we operate as a third party logistics provider) which support our wholesale distribution business. Twenty-one of our distribution centers are located in the U.S. and four are located in Canada. Two of the facilities we operate in the U.S. are consolidating warehouses which buy products from our suppliers in bulk quantities and then distribute the products to our other distribution centers.

Our distribution centers (operating divisions) produced almost all of our revenues and have been aggregated into two geographic reporting segments (U.S. and Canada). Corporate adjustments and eliminations include the net results after intercompany eliminations for our consolidating warehouses, service fee revenue, LIFO and reclassifying adjustments, corporate allocations and elimination of intercompany interest charges. Inter-segment revenues were not significant and no single customer accounted for 10% or more of our total net sales for the three and six months ended June 30, 2011 or 2010.

Information about our business operations based on the two geographic reporting segments is as follows (dollars in millions):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Net sales:
United States	$	1,710.3		$	1,527.7		$	3,161.9		$	2,852.2
Canada	320.5			302.0			589.8			556.4
Corporate adjustments and eliminations	9.0			4.6			10.6			7.8
Total	$	2,039.8		$	1,834.3		$	3,762.3		$	3,416.4
Income (loss) before income taxes:
United States	$	17.5		$	12.2		$	19.9		$	14.0
Canada	(0.8		)	(0.6		)	(2.1		)	(1.5		)
Corporate adjustments and eliminations	(2.3		)	(0.5		)	(2.1		)	1.0
Total	$	14.4		$	11.1		$	15.7		$	13.5
Interest expense:
United States	$	5.5		$	5.6		$	10.5		$	11.3
Canada	0.2			0.2			0.5			0.5
Corporate adjustments and eliminations	(5.1		)	(5.3		)	(9.8		)	(10.7		)
Total	$	0.6		$	0.5		$	1.2		$	1.1
Depreciation and amortization:
United States	$	3.8		$	3.4		$	7.4		$	6.7
Canada	0.8			0.6			1.5			1.3
Corporate	1.0			0.8			1.8			1.5
Total	$	5.6		$	4.8		$	10.7		$	9.5

Identifiable assets by geographic reporting segment are as follows (dollars in millions):

	June 30,		December 31,
	2011		2010
Identifiable assets:
United States	$	749.3	$	590.2
Canada	111.9		118.6
Total	$	861.2	$	708.8

The net sales mix for our primary product categories is as follows (dollars in millions):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Product Category	Net Sales		Net Sales		Net Sales		Net Sales
Cigarettes	$	1,430.5	$	1,283.5	$	2,653.5	$	2,397.3
Food	249.7		214.9		450.4		396.4
Candy	120.4		110.7		224.0		210.0
Other tobacco products	154.0		124.4		276.0		234.6
Health, beauty & general	56.9		54.6		110.9		105.2
Non-alcoholic beverages	27.6		45.4		46.0		71.3
Equipment/other	0.7		0.8		1.5		1.6
Total food/non-food products	$	609.3	$	550.8	$	1,108.8	$	1,019.1
Total net sales	$	2,039.8	$	1,834.3	$	3,762.3	$	3,416.4