Note 12 - Business Segments

6 Months Ended

Dec. 27, 2015

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 12 – Business Segments

The Company’s management reviews the results of the Company’s operations by the following three business segments:

• 1-800-Flowers.com Consumer Floral,

• BloomNet Wire Service, and

• Gourmet Food and Gift Baskets

Segment performance is measured based on contribution margin, which includes only the direct controllable revenue and operating expenses of the segments. As such, management’s measure of profitability for these segments does not include the effect of corporate overhead (see (*) below), nor does it include depreciation and amortization, other (income) expense, net and income taxes, or stock-based compensation and certain Harry & David acquisition/integration costs, both of which are included within corporate overhead. Assets and liabilities are reviewed at the consolidated level by management and not accounted for by segment.

	Three Months Ended						Six Months Ended
Net Revenues:	December 27, 2015			December 28, 2014			December 27, 2015			December 28, 2014
				(in thousands)
Segment Net Revenues:
1-800-Flowers.com Consumer Floral	$	94,826		$	99,600		$	167,774		$	173,998
BloomNet Wire Service		19,674			20,110			41,223			40,121
Gourmet Food & Gift Baskets		434,317			414,669			495,910			447,028
Corporate		298			312			555			512
Intercompany eliminations		(734	)		(416	)		(1,040	)		(681	)
Total net revenues	$	548,381		$	534,275		$	704,422		$	660,978

	Three Months Ended						Six Months Ended
Operating Income	December 27, 2015			December 28, 2014			December 27, 2015			December 28, 2014
				(in thousands)
Segment Contribution Margin:
1-800-Flowers.com Consumer Floral	$	11,733		$	9,527		$	19,283		$	16,777
Bloomnet Wire Service		7,355			6,668			14,270			13,165
Gourmet Food & Gift Baskets		103,874			90,455			95,379			88,020
Segment Contribution Margin Subtotal		122,962			106,650			128,932			117,962
Corporate (*)		(19,818	)		(23,138	)		(40,087	)		(35,977	)
Depreciation and amortization		(8,761	)		(8,679	)		(16,733	)		(13,780	)
Operating income	$	94,383		$	74,833		$	72,112		$	68,205

* Corporate expenses consist of the Company's enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions, as well as Stock-Based Compensation, and integration and acquisition costs related to the acquisition of Harry & David of $0 and $0.8 million during the three and six months ended December 27, 2015, respectively and $3.8 million and $4.5 million during the three and six months ended and December 28, 2014, respectively. In order to leverage the Company's infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions, other than those of the Customer Service Center, which are allocated directly to the above segments based upon usage, are included within corporate expenses, as they are not directly allocable to a specific segment. The Company has commenced integration of Harry & David into its operating platforms, and as such, their operating costs have been classified in a similar manner.