Segment Reporting

3 Months Ended

Jun. 18, 2011

Segment Reporting

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Note 12 – Segment Reporting

We sell and distribute products that are typically found in supermarkets and operate three reportable operating segments.  The military segment consists of seven distribution centers that distribute products to military commissaries and exchanges and one shared facility which services both military and independent food distribution customers.  During fiscal 2010, our military distribution centers in Columbus, Georgia and Bloomington, Indiana became operational.  Excluded from the military distribution center total are two adjacent military distribution centers we purchased during the third quarter of fiscal 2010 in Oklahoma City, Oklahoma, which are scheduled to become operational during fiscal 2012.  Our food distribution segment consists of 14 distribution centers that sell to independently operated retail food stores, our corporate owned stores and other customers.  The retail segment consists of 46 corporate-owned stores that sell directly to the consumer.  During the second quarter 2011, we closed two and sold four retail stores. 

During fiscal 2009 and fiscal 2010, we acquired facilities in Columbus, Georgia, Bloomington, Indiana and Oklahoma City, Oklahoma for expansion of our military distribution business.  We have historically serviced military commissaries and exchanges outside of the military segment’s distribution network through distribution centers that are included in our food distribution segment.  The revenue and segment profit associated with this business had previously been reported in the food distribution segment.  We are currently in the process of transitioning the military business serviced by the food distribution segment to military distribution facilities and are scheduled to have all of the business transitioned during fiscal 2012.  Accordingly, we revised our segment reporting during the fourth quarter of fiscal 2010 to include this business in our military segment, which impacts quarterly amounts previously reported during fiscal 2010.  This revision had no impact on our consolidated financial statements in any period presented.

Certain prior year amounts shown below have been revised to conform to the current year presentation.  Quarterly periods presented after the second quarter 2011 will be revised as shown the next time those periods are presented.

				Year-to-date
		2nd Quarter 2010		2nd Quarter 2010		3rd Quarter 2010
(In thousands)		As adjusted	As reported	As adjusted	As reported	As adjusted	As reported
Segment revenue:
Military	$	515,785	456,588	1,055,419	934,585	699,655	620,822
Food Distribution		514,982	574,179	1,037,174	1,158,008	652,670	731,503
Retail		123,850	123,850	241,717	241,717	158,556	158,556
Total revenue	$	1,154,617	1,154,617	2,334,310	2,334,310	1,510,881	1,510,881
Segment profit:
Military	$	12,663	11,519	25,581	23,335	14,270	12,822
Food Distribution		7,636	8,581	12,540	14,380	11,666	12,848
Retail		2,190	2,389	2,210	2,616	2,558	2,824
Total segment profit	$	22,489	22,489	40,331	40,331	28,494	28,494

A summary of the major segments of the business is as follows:

		Second Quarter Ended
		June 18, 2011			June 19, 2010
(In thousands)		Sales from external customers	Inter-segment sales	Segment profit	Sales from external customers	Inter-segment sales	Segment profit
Military	$	529,141	-	11,285	515,785	-	12,663
Food Distribution		459,465	55,313	7,709	514,982	61,361	7,636
Retail		110,969	-	2,128	123,850	-	2,190
Eliminations		-	(55,313)	-	-	(61,361)	-
Total	$	1,099,575	-	21,122	1,154,617	-	22,489

		Year-to-Date Ended
		June 18, 2011			June 19, 2010
(In thousands)		Sales from external customers	Inter-segment sales	Segment profit	Sales from external customers	Inter-segment sales	Segment profit
Military	$	1,066,581	-	23,432	1,055,419	-	25,581
Food Distribution		909,772	110,235	13,554	1,037,174	119,653	12,540
Retail		223,031	-	1,144	241,717	-	2,210
Eliminations		-	(110,235)	-	-	(119,653)	-
Total	$	2,199,384	-	38,130	2,334,310	-	40,331

Reconciliation to Consolidated Statements of Income:
		Second Quarter Ended		Year-to-Date Ended
		June 18,	June 19,	June 18,	June 19,
(In thousands)		2011	2010	2011	2010
Total segment profit	$	21,122	22,489	38,130	40,331
Unallocated amounts:
Interest		(4,508)	(4,523)	(9,146)	(9,035)
Earnings before income taxes	$	16,614	17,966	28,984	31,296