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Business Segment Information
9 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Business Segment Information 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. Our Chief Operating Decision Maker (“CODM”), in order to drive enhanced accountability and transparency throughout our organization, initiated a review of functional costs that have historically been part of the indirect costs allocated to our two reportable segments. This review was completed as part of our preparation for our upcoming enterprise resource planning system implementation. As a result of this review, our CODM identified certain support functions that would be more appropriately presented within corporate expenses to facilitate the management of the business, including assessing segment performance and allocating resources. These changes were effective July 1, 2020. All historical information has been retroactively conformed to the current presentation. These changes had no effect on previously reported consolidated net sales, operating income, net income or earnings per share.
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 sold other roll products under a transitional co-packing arrangement resulting from the acquisition of Omni Baking Company LLC. This arrangement was terminated effective October 31, 2020.
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 CODM 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 March 31, 2021 is generally consistent with that of June 30, 2020.
We evaluate our Retail and Foodservice segments based on net sales and operating income which follow:
 Three Months Ended 
March 31,
Nine Months Ended 
March 31,
 2021202020212020
Net Sales
Retail$198,358 $169,414 $614,653 $521,701 
Foodservice158,891 151,949 466,848 491,833 
Total$357,249 $321,363 $1,081,501 $1,013,534 
Operating Income
Retail$41,179 $34,150 $144,557 $116,628 
Foodservice21,088 12,765 66,845 66,660 
Nonallocated Restructuring and Impairment Charges (1)
 —  (886)
Corporate Expenses(24,879)(16,925)(66,468)(46,630)
Total$37,388 $29,990 $144,934 $135,772 
(1)Reflects restructuring and impairment charges related to a plant closure that were not allocated to our two reportable segments due to their unusual nature.
The following table sets forth net sales disaggregated by class of similar products for the Retail and Foodservice segments:
 Three Months Ended 
March 31,
Nine Months Ended 
March 31,
 2021202020212020
Retail
Frozen breads$73,628 $68,682 $250,157 $221,084 
Refrigerated dressings, dips and other48,957 49,479 165,204 163,521 
Shelf-stable dressings and croutons75,773 51,253 199,292 137,096 
Total Retail net sales$198,358 $169,414 $614,653 $521,701 
Foodservice
Dressings and sauces$120,925 $106,306 $347,101 $341,039 
Frozen breads and other37,966 40,339 116,040 131,300 
Other roll products 5,304 3,707 19,494 
Total Foodservice net sales$158,891 $151,949 $466,848 $491,833 
Total net sales$357,249 $321,363 $1,081,501 $1,013,534 
The following table provides an additional disaggregation of Foodservice net sales by type of customer:
 Three Months Ended 
March 31,
Nine Months Ended 
March 31,
 2021202020212020
Foodservice
National accounts$124,323 $110,384 $359,228 $356,192 
Branded and other34,568 36,261 103,913 116,147 
Other roll products 5,304 3,707 19,494 
Total Foodservice net sales$158,891 $151,949 $466,848 $491,833