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Business Segment Information
 12 Months Ended
Jun. 30, 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. We evaluate our segments based on net sales and operating income. 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, gross profit, 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 dressings, slaw dressing, sauces 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 temporary supply agreement resulting from the Omni acquisition. The temporary supply agreement 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, 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:
202120202019
Retail
Frozen breads$308,482 $290,940 $259,290 
Shelf-stable dressings, sauces and croutons297,572 205,062 177,717 
Refrigerated dressings, dips and other222,909 218,125 219,614 
Total Retail net sales$828,963 $714,127 $656,621 
Foodservice
Dressings and sauces$477,940 $436,909 $467,364 
Frozen breads and other156,457 161,093 164,438 
Other roll products3,707 22,259 19,364 
Total Foodservice net sales$638,104 $620,261 $651,166 
Total net sales$1,467,067 $1,334,388 $1,307,787 
The following table provides an additional disaggregation of Foodservice net sales by type of customer in each of the years ended June 30:
 202120202019
Foodservice
National accounts$494,874 $459,880 $480,249 
Branded and other139,523 138,122 151,553 
Other roll products3,707 22,259 19,364 
Total Foodservice net sales$638,104 $620,261 $651,166 
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:
202120202019
Net Sales (1) (2)
Retail$828,963 $714,127 $656,621 
Foodservice638,104 620,261 651,166 
Total$1,467,067 $1,334,388 $1,307,787 
Operating Income (2) (3)
Retail$188,403 $161,487 $149,019 
Foodservice89,048 80,475 86,177 
Nonallocated Restructuring and Impairment Charges (4)
— (886)(1,643)
Corporate Expenses (5)
(91,599)(65,128)(42,629)
Total$185,852 $175,948 $190,924 
Identifiable Assets (1) (6)
Retail & Foodservice (7)
$878,389 $771,270 $695,872 
Corporate222,896 222,083 209,527 
Total$1,101,285 $993,353 $905,399 
Payments for Property Additions (3)
Retail & Foodservice (7)
$86,792 $81,067 $70,415 
Corporate1,073 1,575 465 
Total$87,865 $82,642 $70,880 
Depreciation and Amortization (3)
Retail & Foodservice (7)
$41,356 $35,790 $30,896 
Corporate3,153 2,173 952 
Total$44,509 $37,963 $31,848 
(1)Net sales and long-lived assets are predominately domestic.
(2)All intercompany transactions have been eliminated.
(3)As discussed above, all historical information for operating income, payments for property additions and depreciation and amortization has been retroactively conformed to the current presentation. These changes had no effect on previously reported consolidated totals.
(4)Reflects restructuring and impairment charges related to a plant closure that were not allocated to our two reportable segments due to their unusual nature.
(5)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. These costs have not been allocated to the Retail and Foodservice segments.
(6)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, 2020 to June 30, 2021 reflected property additions, largely due to several capacity expansion projects that are currently underway, and higher inventory levels due to increased commodity costs. 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.
(7)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:
202120202019
Net sales to Walmart$267,090 $241,699 $222,171 
As a percentage of consolidated net sales18 %18 %17 %
Net sales to McLane$184,021 $174,242 $195,907 
As a percentage of consolidated net sales13 %13 %15 %
Accounts receivable attributable to Walmart and McLane at June 30 as a percentage of consolidated accounts receivable were as follows:
20212020
Walmart27 %30 %
McLane9 %10 %