Business Segment Information

Our financial results are presented as two reportable segments: Retail and Foodservice. Costs that are directly attributable to either Retail or Foodservice are charged directly to the appropriate segment. Costs that are deemed to be indirect, excluding corporate expenses and other unusual significant transactions, are allocated to the two reportable segments using a reasonable methodology that is consistently applied. We evaluate our segments based on net sales and operating income.

Retail - The vast majority of the products we sell in the Retail segment are sold through sales personnel, food brokers and distributors in the United States. We have placement of products in grocery produce departments through our refrigerated salad dressings, vegetable dips and fruit dips. Our flatbread products and sprouted grain bakery products are generally placed in the specialty bakery/deli section of the grocery store. We also have products typically marketed in the shelf-stable section of the grocery store, which include salad dressing, slaw dressing and croutons. Within the frozen food section of the grocery store, we sell yeast rolls, garlic breads and mini stuffed bagels.

Foodservice - The vast majority of the products we sell in the Foodservice segment are sold through sales personnel, food brokers and distributors in the United States. Most of the products we sell in the Foodservice segment are custom-formulated and include salad dressings, sandwich and dipping sauces, frozen breads and yeast rolls. The majority of our Foodservice sales are products sold under private label to restaurants. We also manufacture and sell various branded Foodservice products to distributors. Finally, within this segment, we sell other roll products under a transitional co-packing arrangement resulting from the Omni acquisition.

As many of our products are similar between our two segments, our procurement, manufacturing, warehousing and distribution activities are substantially integrated across our operations in order to maximize efficiency and productivity. Consequently, we do not prepare, and our Chief Operating Decision Maker does not review, separate balance sheets for the reportable segments. As such, our external reporting does not include the presentation of identifiable assets, payments for property additions or depreciation and amortization by reportable segment.

The following table sets forth net sales disaggregated by class of similar products for the Retail and Foodservice segments in each of the years ended June 30:



	2019		2018		2017
Retail
Frozen breads	$	259,290	$	252,186	$	253,965
Refrigerated dressings, dips and other	219,614		226,276		221,422
Shelf-stable dressings and croutons	177,717		171,772		166,030
Total Retail net sales	$	656,621	$	650,234	$	641,417
Foodservice
Dressings and sauces	$	467,364	$	430,944	$	427,017
Frozen breads and other	164,438		141,747		133,408
Other roll products	19,364		—		—
Total Foodservice net sales	$	651,166	$	572,691	$	560,425
Total net sales	$	1,307,787	$	1,222,925	$	1,201,842

The following table provides an additional disaggregation of Foodservice net sales by type of customer:



	2019		2018		2017
Foodservice
National accounts	$	480,249	$	430,680	$	421,858
Branded and other	151,553		142,011		138,567
Other roll products	19,364		—		—
Total Foodservice net sales	$	651,166	$	572,691	$	560,425

The following sets forth certain additional financial information attributable to our reportable segments, certain amounts not allocated among our reportable segments and amounts retained at the corporate level for the years ended June 30:



	2019			2018			2017
Net Sales ^{(1) (2)}
Retail	$	656,621		$	650,234		$	641,417
Foodservice	651,166			572,691			560,425
Total	$	1,307,787		$	1,222,925		$	1,201,842
Operating Income ⁽²⁾
Retail	$	135,093		$	126,400		$	138,489
Foodservice	73,828			58,440			66,234
Restructuring and Impairment Charges ⁽³⁾	(1,643		)	—			—
Multiemployer Pension Settlement and Related Costs ⁽³⁾	—			—			(17,635		)
Corporate Expenses ⁽⁴⁾	(16,354		)	(13,292		)	(12,734		)
Total	$	190,924		$	171,548		$	174,354
Identifiable Assets ^{(1) (5)}
Retail & Foodservice ⁽⁶⁾	$	695,872		$	589,509		$	577,509
Corporate	209,527			214,982			138,896
Total	$	905,399		$	804,491		$	716,405
Payments for Property Additions
Retail & Foodservice ⁽⁶⁾	$	70,880		$	31,025		$	26,031
Corporate	—			—			974
Total	$	70,880		$	31,025		$	27,005
Depreciation and Amortization
Retail & Foodservice ⁽⁶⁾	$	31,595		$	26,685		$	24,752
Corporate	253			211			154
Total	$	31,848		$	26,896		$	24,906


(1)	Net sales and long-lived assets are predominately domestic.


(2)	All intercompany transactions have been eliminated.


(3)	Restructuring and impairment charges and multiemployer pension settlement and related costs were not allocated to our two reportable segments due to their unusual nature.


(4)	Our Corporate Expenses include various expenses of a general corporate nature, ERP expenses and costs related to certain divested or closed nonfood operations. By their very nature, these costs have not been allocated to the Retail and Foodservice segments.

(5)

Retail and Foodservice identifiable assets include those assets used in our operations and other intangible assets allocated to purchased businesses. Corporate assets consist principally of cash and equivalents. The increase in Retail and Foodservice identifiable assets from June 30, 2018 to June 30, 2019 was due to the acquisitions of Bantam and Omni. The increase in Corporate identifiable assets from June 30, 2017 to June 30, 2018 was primarily due to the increase in cash and equivalents.


(6)	As discussed above, we do not present identifiable assets, payments for property additions or depreciation and amortization by reportable segment.

Retail segment net sales attributable to Walmart Inc. (“Walmart”) and Foodservice segment net sales attributable to McLane Company, Inc. (“McLane”), a wholesale distribution subsidiary of Berkshire Hathaway, Inc., for each of the years ended June 30 were as follows:



	2019			2018			2017
Net sales to Walmart	$	222,171		$	209,860		$	201,484
As a percentage of consolidated net sales	17		%	17		%	17		%
Net sales to McLane	$	195,907		$	185,226		$	198,153
As a percentage of consolidated net sales	15		%	15		%	16		%

Accounts receivable attributable to Walmart and McLane at June 30 as a percentage of consolidated accounts receivable were as follows:



	2019		2018
Walmart	28	%	28	%
McLane	9	%	11	%