Business Segment Information

6 Months Ended

Dec. 31, 2019

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.

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 by reportable segment. The composition of our identifiable assets at December 31, 2019 is generally consistent with that of June 30, 2019.

We evaluate our Retail and Foodservice segments based on net sales and operating income which follow:



	Three Months Ended December 31,						Six Months Ended December 31,
	2019			2018			2019			2018
Net Sales
Retail	$	186,210		$	186,302		$	352,287		$	349,050
Foodservice	168,907			163,279			339,884			317,185
Total	$	355,117		$	349,581		$	692,171		$	666,235
Operating Income
Retail	$	39,017		$	44,785		$	74,452		$	78,733
Foodservice	23,416			19,405			47,205			38,266
Restructuring and Impairment Charges	—			—			(886		)	—
Corporate Expenses	(8,355		)	(3,035		)	(14,989		)	(6,724		)
Total	$	54,078		$	61,155		$	105,782		$	110,275

The following table sets forth net sales disaggregated by class of similar products for the Retail and Foodservice segments:



	Three Months Ended December 31,				Six Months Ended December 31,
	2019		2018		2019		2018
Retail
Frozen breads	$	92,105	$	89,902	$	152,402	$	147,410
Refrigerated dressings, dips and other	51,405		55,204		114,042		117,073
Shelf-stable dressings and croutons	42,700		41,196		85,843		84,567
Total Retail net sales	$	186,210	$	186,302	$	352,287	$	349,050
Foodservice
Dressings and sauces	$	114,970	$	115,925	$	234,733	$	231,837
Frozen breads and other	47,597		43,518		90,961		81,512
Other roll products	6,340		3,836		14,190		3,836
Total Foodservice net sales	$	168,907	$	163,279	$	339,884	$	317,185
Total net sales	$	355,117	$	349,581	$	692,171	$	666,235

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



	Three Months Ended December 31,				Six Months Ended December 31,
	2019		2018		2019		2018
Foodservice
National accounts	$	122,050	$	120,652	$	245,808	$	236,227
Branded and other	40,517		38,791		79,886		77,122
Other roll products	6,340		3,836		14,190		3,836
Total Foodservice net sales	$	168,907	$	163,279	$	339,884	$	317,185