BUSINESS SEGMENTS

3 Months Ended

Oct. 29, 2011

BUSINESS SEGMENTS

BUSINESS SEGMENTS

7. 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 October 29, 2011:
Net sales	$	1,203,082	$	42,468		$	(28,122	)				$	1,217,428
Operating income (loss)	38,403		(10,748		)	(1,600		)				26,055
Interest expense									$	1,073		1,073
Interest income									(170		)	(170		)
Other, net									141			141
Income before income taxes												25,011
Depreciation and amortization	9,186		406									9,592
Capital expenditures	7,507		294									7,801
Goodwill	176,505		17,331									193,836
Total assets	1,443,440		150,877			(13,720		)				1,580,597
Three months ended October 30, 2010:
Net sales	$	1,039,775	$	44,373		$	(31,181	)				$	1,052,967
Operating income (loss)	38,842		(8,472		)	(714		)				29,656
Interest expense									$	1,386		1,386
Interest income									(208		)	(208		)
Other, net									(53		)	(53		)
Income before income taxes												28,531
Depreciation and amortization	7,642		713									8,355
Capital expenditures	7,245		304									7,549
Goodwill	171,479		17,331									188,810
Total assets	1,267,577		137,882			(11,797		)				1,393,662