Segment and Geographic Information

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

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 - the U.S. and Canada - that aggregate into 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.

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

	Three Months Ended
	March 31,
	2016			2015
Net sales:
United States	$	2,736.2		$	2,176.1
Canada	269.4			267.8
Corporate (1)	5.7			8.4
Total	$	3,011.3		$	2,452.3
Income (loss) before income taxes:
United States	$	4.9		$	6.5
Canada	(0.2		)	(0.2		)
Corporate (2)	4.5			2.8
Total	$	9.2		$	9.1
Interest expense:
United States	$	9.6		$	8.2
Canada	0.3			0.2
Corporate (3)	(9.1		)	(7.8		)
Total	$	0.8		$	0.6
Depreciation and amortization:
United States	$	7.4		$	6.7
Canada	0.5			0.6
Corporate (4)	1.7			1.4
Total	$	9.6		$	8.7
Capital expenditures:
United States	$	8.5		$	2.6
Canada	0.3			0.1
Total	$	8.8		$	2.7

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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.

(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):

	March 31, 2016		December 31, 2015
Identifiable assets:
United States	$	1,021.7	$	981.4
Canada	116.1		95.9
Total	$	1,137.8	$	1,077.3

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

	Three Months Ended
	March 31,
	2016		2015
Product Category	Net Sales		Net Sales
Cigarettes	$	2,114.6	$	1,645.3
Food	388.3		353.7
Candy	140.7		131.8
Other tobacco products	237.5		199.6
Health, beauty & general	95.7		89.5
Beverages	34.3		32.1
Equipment/other	0.2		0.3
Total food/non-food products	896.7		807.0
Total net sales	$	3,011.3	$	2,452.3