Segment and Geographic Information

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

As of September 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) which produce almost all of our revenues have similar historical economic characteristics and have been aggregated into one reporting segment. Corporate adjustments and eliminations include the net results after intercompany eliminations for our consolidating warehouses, service fee revenue, LIFO and reclassifying adjustments, and the elimination of corporate allocations and intercompany interest charges. Couche-Tard accounted for approximately 13.7% and 13.6% of our net sales in the three and nine months ended September 30, 2012, respectively, and no single customer accounted for 10% or more of our total net sales during the three or nine months ended September 30, 2011. In addition, no single customer accounted for 10% or more of our accounts receivables as of September 30, 2012 or December 31, 2011.

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
Net sales:
United States	$	1,995.6		$	1,874.5		$	5,798.5		$	5,036.4
Canada	311.2			340.5			881.0			930.3
Corporate adjustments and eliminations	8.1			10.1			23.4			20.7
Total	$	2,314.9		$	2,225.1		$	6,702.9		$	5,987.4
Income (loss) before income taxes:
United States	$	10.3		$	20.0		$	29.3		$	39.9
Canada	0.7			0.4			1.6			(1.7		)
Corporate adjustments and eliminations	5.9			(1.1		)	8.8			(3.2		)
Total	$	16.9		$	19.3		$	39.7		$	35.0
Interest expense:
United States	$	6.6		$	5.9		$	20.0		$	16.4
Canada	0.1			0.2			0.5			0.7
Corporate adjustments and eliminations	(6.3		)	(5.5		)	(18.9		)	(15.3		)
Total	$	0.4		$	0.6		$	1.6		$	1.8
Depreciation and amortization:
United States	$	4.4		$	3.6		$	13.1		$	11.0
Canada	0.7			0.7			2.2			2.2
Corporate adjustments and eliminations	1.2			1.1			3.7			2.9
Total	$	6.3		$	5.4		$	19.0		$	16.1

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

	September 30,		December 31,
	2012		2011
Identifiable assets:
United States	$	726.1	$	768.6
Canada	86.5		101.6
Total	$	812.6	$	870.2

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
Product Category	Net Sales		Net Sales		Net Sales		Net Sales
Cigarettes	$	1,596.5	$	1,566.4	$	4,626.1	$	4,219.9
Food	312.5		276.5		888.0		726.9
Candy	122.8		122.7		373.0		346.7
Other tobacco products	178.5		167.2		515.7		443.2
Health, beauty & general	66.7		60.6		198.5		171.5
Beverages	37.3		31.2		99.8		77.2
Equipment/other	0.6		0.5		1.8		2.0
Total food/non-food products	$	718.4	$	658.7	$	2,076.8	$	1,767.5
Total net sales	$	2,314.9	$	2,225.1	$	6,702.9	$	5,987.4