Segment and Geographic Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

The Company identifies its operating segments according to how management reviews, assesses and makes decisions about operational performance. In 2014, the Company assessed the identification of its operating segments given the organic growth in the business as well as the addition of national chain customers, and the way the Chief Operating Decision Maker (“CODM”) evaluates performance and makes decisions. From the perspective of the CODM, the Company is engaged primarily in the business of distributing packaged consumer products to convenience retail stores in the U.S. and Canada (collectively “North America”), which consists of customers that have similar characteristics. Therefore, the Company has determined that it has two operating segments -- U.S. and Canada that aggregates to one reportable segment. The Company presents its segment reporting information based on business operations for each of the two geographic areas in which it operates and also by major product category.

Couche-Tard, the Company’s largest customer, accounted for approximately 14.5%, 14.7%% and 13.7% of total net sales for 2014, 2013 and 2012, respectively.

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

	Year Ended December 31,
	2014			2013			2012
Net sales:
United States	$	8,989.0		$	8,618.3		$	7,716.3
Canada	1,250.9			1,114.3			1,148.6
Corporate (1)	40.2			35.0			27.5
Total	$	10,280.1		$	9,767.6		$	8,892.4
Income (loss) before income taxes:
United States	$	70.8		$	57.3		$	48.6
Canada	3.2			0.9			2.3
Corporate (2)	(7.6		)	7.8			4.5
Total	$	66.4		$	66.0		$	55.4
Interest expense:
United States	$	32.0		$	30.2		$	27.4
Canada	0.7			0.6			0.7
Corporate (3)	(30.3		)	(28.1		)	(25.9		)
Total	$	2.4		$	2.7		$	2.2
Depreciation and amortization:
United States	$	24.9		$	20.2		$	17.7
Canada	2.8			2.7			2.9
Corporate (4)	4.3			4.3			4.7
Total	$	32.0		$	27.2		$	25.3

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(1) Consists primarily of external sales made by the Company’s consolidating warehouses, management service fee revenue, allowance for sales returns and certain other sales adjustments.

(2) Consists primarily of expenses and other income, such as corporate incentives and salaries, LIFO expense, health care costs, insurance and workers’ compensation adjustments, elimination of overhead allocations and foreign exchange gains or losses. The change from 2013 to 2014 is primarily attributable to increases in corporate incentives and salaries, and LIFO expense.

(3) Consists primarily of intercompany eliminations for interest.

(4) Consists primarily of depreciation for the consolidation centers and amortization of intangible assets.

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

	December 31,		December 31,
	2014		2013
Identifiable assets:
United States	$	913.8	$	844.8
Canada	115.8		112.0
Total	$	1,029.6	$	956.8

The net sales for the Company’s product categories are as follows (in millions):

	Year Ended December 31,
	2014		2013		2012
Product Category	Net Sales		Net Sales		Net Sales
Cigarettes	$	6,942.0	$	6,642.0	$	6,139.4
Food	1,462.0		1,342.3		1,178.6
Candy (1)	534.3		513.2		476.6
Other tobacco products	827.5		787.8		687.8
Health, beauty & general (1)	361.0		341.3		282.1
Beverages	151.8		139.1		125.6
Equipment/other	1.5		1.9		2.3
Total food/non-food products	$	3,338.1	$	3,125.6	$	2,753.0
Total net sales	$	10,280.1	$	9,767.6	$	8,892.4

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(1) In 2014, certain products were moved from the candy category to the health, beauty & general category to align them with the industry classifications used by the National Association of Convenience Stores. The 2013 and 2012 presentations have been realigned to reflect these changes. Without the changes, net sales for Candy would have been $527.2 million and $489.5 million for the years ended December 31,2013 and 2012, respectively. Net sales for Health, beauty & general products would have been $327.3 million and $269.2 million for the years ended December 31,2013 and 2012, respectively.