Business Segment Information

12 Months Ended

Jun. 30, 2020

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:



	2020		2019		2018
Retail
Frozen breads	$	290,940	$	259,290	$	252,186
Refrigerated dressings, dips and other	218,125		219,614		226,276
Shelf-stable dressings and croutons	205,062		177,717		171,772
Total Retail net sales	$	714,127	$	656,621	$	650,234
Foodservice
Dressings and sauces	$	436,909	$	467,364	$	430,944
Frozen breads and other	161,093		164,438		141,747
Other roll products	22,259		19,364		—
Total Foodservice net sales	$	620,261	$	651,166	$	572,691
Total net sales	$	1,334,388	$	1,307,787	$	1,222,925

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



	2020		2019		2018
Foodservice
National accounts	$	459,880	$	480,249	$	430,680
Branded and other	138,122		151,553		142,011
Other roll products	22,259		19,364		—
Total Foodservice net sales	$	620,261	$	651,166	$	572,691

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:



	2020			2019			2018
Net Sales ^{(1) (2)}
Retail	$	714,127		$	656,621		$	650,234
Foodservice	620,261			651,166			572,691
Total	$	1,334,388		$	1,307,787		$	1,222,925
Operating Income ⁽²⁾
Retail	$	142,822		$	135,093		$	126,400
Foodservice	66,480			73,828			58,440
Restructuring and Impairment Charges ⁽³⁾	(886		)	(1,643		)	—
Corporate Expenses ⁽⁴⁾	(32,468		)	(16,354		)	(13,292		)
Total	$	175,948		$	190,924		$	171,548
Identifiable Assets ^{(1) (5)}
Retail & Foodservice ⁽⁶⁾	$	771,270		$	695,872		$	589,509
Corporate	222,083			209,527			214,982
Total	$	993,353		$	905,399		$	804,491
Payments for Property Additions
Retail & Foodservice ⁽⁶⁾	$	82,579		$	70,880		$	31,025
Corporate	63			—			—
Total	$	82,642		$	70,880		$	31,025
Depreciation and Amortization
Retail & Foodservice ⁽⁶⁾	$	37,708		$	31,595		$	26,685
Corporate	255			253			211
Total	$	37,963		$	31,848		$	26,896


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


(2)	All intercompany transactions have been eliminated.


(3)	Restructuring and impairment charges 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, expenditures for Project Ascent 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, 2019 to June 30, 2020 reflected property additions, notably a capacity expansion project at our frozen dinner roll facility in Horse Cave, Kentucky, as well as operating lease right-of-use assets recorded in 2020 due to the adoption of new accounting guidance. 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.


(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:



	2020			2019			2018
Net sales to Walmart	$	241,699		$	222,171		$	209,860
As a percentage of consolidated net sales	18		%	17		%	17		%
Net sales to McLane	$	174,242		$	195,907		$	185,226
As a percentage of consolidated net sales	13		%	15		%	15		%

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



	2020		2019
Walmart	30	%	28	%
McLane	10	%	9	%