BUSINESS SEGMENTS

9 Months Ended

Apr. 30, 2011

BUSINESS SEGMENTS

BUSINESS SEGMENTS

5. BUSINESS SEGMENTS

The Company has several operating divisions aggregated under the wholesale segment, which is the Company’s only reportable segment. These operating divisions have similar products and services, customer channels, distribution methods and historical margins. The wholesale segment is engaged in national distribution of natural, organic and specialty foods, produce and related products in the United States and Canada. The Company has additional operating divisions that do not meet the quantitative thresholds for reportable segments and are therefore aggregated under the caption of “Other”. “Other” includes a retail division, which engages in the sale of natural foods and related products to the general public through retail storefronts on the east coast of the United States, a manufacturing division, which engages in importing, roasting and packaging of nuts, seeds, dried fruit, trail mixes, granola, natural and organic snack items, confections and the Company’s branded product lines. “Other” also includes certain corporate operating expenses that are not allocated to operating divisions and are necessary to operate the Company’s headquarters located in Providence, Rhode Island, which include depreciation, salaries, retainers, and other related expenses of officers, directors, corporate finance (including professional services), information technology, governance, legal, human resources and internal audit. As the Company continues to expand its business and serve its customers through a national platform, these corporate expense amounts have increased. These unallocated corporate expenses are the primary driver behind the operating losses within the “Other” category below. Non-operating expenses that are not allocated to the operating divisions are under the caption of “Unallocated Expenses”. The Company does not record its revenues for financial reporting purposes by product group, and it is therefore impracticable for the Company to report them accordingly.

Following reflects business segment information for the periods indicated (in thousands):

	Wholesale		Other			Eliminations			Unallocated			Consolidated
Three months ended April 30, 2011:
Net sales	$	1,189,085	$	41,773		$	(26,875	)				$	1,203,983
Operating income (loss)	46,642		(7,735		)	(1		)				38,906
Interest expense									$	1,146		1,146
Interest income									(750		)	(750		)
Other, net									(427		)	(427		)
Income before income taxes												38,937
Depreciation and amortization	8,918		738									9,656
Capital expenditures	9,474		715									10,189
Goodwill	173,173		17,331									190,504
Total assets	1,309,410		151,466			(8,932		)				1,451,944
Three months ended May 1, 2010:
Net sales	$	970,025	$	48,122		$	(32,453	)				$	985,694
Operating income (loss)	45,777		(11,374		)	(561		)				33,842
Interest expense									$	1,491		1,491
Interest income									(89		)	(89		)
Other, net									(40		)	(40		)
Income before income taxes												32,480
Depreciation and amortization	6,163		699									6,862
Capital expenditures	14,813		276									15,089
Goodwill	145,983		17,363									163,346
Total assets	1,034,810		141,399			(8,679		)				1,167,530

	Wholesale		Other			Eliminations			Unallocated			Consolidated
Nine months ended April 30, 2011:
Net sales	$	3,328,819	$	125,380		$	(82,800	)				$	3,371,399
Operating income (loss)	125,090		(23,902		)	(884		)				100,304
Interest expense									$	3,830		3,830
Interest income									(1,015		)	(1,015		)
Other, net									(682		)	(682		)
Income before income taxes												98,171
Depreciation and amortization	24,748		2,150									26,898
Capital expenditures	22,729		1,727									24,456
Goodwill	173,173		17,331									190,504
Total assets	1,309,410		151,466			(8,932		)				1,451,944
Nine months ended May 1, 2010:
Net sales	$	2,724,214	$	128,661		$	(84,196	)				$	2,768,679
Operating income (loss)	115,118		(26,977		)	497						88,638
Interest expense									$	4,429		4,429
Interest income									(199		)	(199		)
Other, net									(60		)	(60		)
Income before income taxes												84,468
Depreciation and amortization	18,188		2,031									20,219
Capital expenditures	27,692		3,220									30,912
Goodwill	145,983		17,363									163,346
Total assets	1,034,810		141,399			(8,679		)				1,167,530