Segment Reporting

6 Months Ended

Jun. 16, 2012

Segment Reporting Disclosure [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 eight distribution centers that distribute products to military commissaries and exchanges and one shared facility which services both Military and independent Food Distribution customers.  Included in the Military distribution center total is our facility in Oklahoma City, Oklahoma, which was purchased during 2010 and became operational during the first quarter of fiscal 2012.  Our Food Distribution segment consists of 14 distribution centers that sell to independently operated retail grocery stores, our corporate owned stores and other customers.  As of June 16, 2012, the Retail segment consists of 56 corporate-owned stores that sell directly to the consumer. 

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

		Second Quarter Ended
		June 16, 2012			June 18, 2011
(In thousands)		Sales from external customers	Inter-segment sales	Segment profit1	Sales from external customers	Inter-segment sales	Segment profit
Military	$	523,212	-	8,570	529,141	-	11,285
Food Distribution		433,133	71,793	5,517	459,465	55,313	7,709
Retail		136,453	-	2,390	110,969	-	2,128
Eliminations		-	(71,793)	-	-	(55,313)	-
Total	$	1,092,798	-	16,477	1,099,575	-	21,122

		Year-to-Date Ended
		June 16, 2012			June 18, 2011
(In thousands)		Sales from external customers	Inter-segment sales	Segment profit1	Sales from external customers	Inter-segment sales	Segment profit
Military	$	1,054,508	-	19,044	1,066,581	-	23,432
Food Distribution		857,712	123,663	7,855	909,772	110,235	13,554
Retail		239,212	-	3,051	223,031	-	1,144
Eliminations		-	(123,663)	-	-	(110,235)	-
Total	$	2,151,432	-	29,950	2,199,384	-	38,130

Reconciliation to Consolidated Statements of Income:
		Second Quarter Ended		Year-to-Date Ended
		June 16,	June 18,	June 16,	June 18,
(In thousands)		2012	2011	2012	2011
Total segment profit1	$	16,477	21,122	29,950	38,130
Unallocated amounts:
Gain on acquisition of a business		6,639	-	6,639	-
Goodwill impairment		(131,991)	-	(131,991)	-
Interest		(4,425)	(4,508)	(8,829)	(9,146)
Earnings before income taxes	$	(113,300)	16,614	(104,231)	28,984

¹  Segment profit excludes goodwill impairment and gain on acquisition of a business