Segment and Geographic Information

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

As of June 30, 2012, we operated 27 distribution centers (excluding two distribution facilities we operate as a third party logistics provider) which support our wholesale distribution business. Twenty-three of our distribution centers are located in the U.S. and four are located in Canada. Three 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. In May 2012 we began operations of a third consolidating warehouse to better service our distribution centers.

Our distribution centers (operating divisions) produce 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. Couche-Tard accounted for approximately 12.9% and 13.2% of our net sales in the three and six months ended June 30, 2012, respectively, and no single customer accounted for 10% or more of our total net sales during the three or six months ended June 30, 2011. In addition, no single customer accounted for 10% or more of our accounts receivables as of June 30, 2012 or December 31, 2011.

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Net sales:
United States	$	1,984.4		$	1,710.3		$	3,802.9		$	3,161.9
Canada	295.2			320.5			569.8			589.8
Corporate adjustments and eliminations	7.7			9.0			15.3			10.6
Total	$	2,287.3		$	2,039.8		$	4,388.0		$	3,762.3
Income (loss) before income taxes:
United States	$	15.5		$	17.5		$	19.0		$	19.9
Canada	0.7			(0.8		)	0.9			(2.1		)
Corporate adjustments and eliminations	0.9			(2.3		)	3.0			(2.1		)
Total	$	17.1		$	14.4		$	22.9		$	15.7
Interest expense:
United States	$	7.0		$	5.5		$	13.4		$	10.5
Canada	0.2			0.2			0.4			0.5
Corporate adjustments and eliminations	(6.6		)	(5.1		)	(12.6		)	(9.8		)
Total	$	0.6		$	0.6		$	1.2		$	1.2
Depreciation and amortization:
United States	$	4.4		$	3.8		$	8.7		$	7.4
Canada	0.8			0.8			1.5			1.5
Corporate adjustments and eliminations	1.2			1.0			2.5			1.8
Total	$	6.4		$	5.6		$	12.7		$	10.7

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

	June 30,		December 31,
	2012		2011
Identifiable assets:
United States	$	752.0	$	768.6
Canada	98.6		101.6
Total	$	850.6	$	870.2

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
Product Category	Net Sales		Net Sales		Net Sales		Net Sales
Cigarettes	$	1,577.3	$	1,430.5	$	3,029.7	$	2,653.5
Food	304.1		249.7		575.5		450.4
Candy	128.4		120.4		250.2		224.0
Other tobacco products	173.7		154.0		337.1		276.0
Health, beauty & general	67.0		56.9		131.7		110.9
Beverages	36.1		27.6		62.5		46.0
Equipment/other	0.7		0.7		1.3		1.5
Total food/non-food products	$	710.0	$	609.3	$	1,358.3	$	1,108.8
Total net sales	$	2,287.3	$	2,039.8	$	4,388.0	$	3,762.3