Segment Reporting

9 Months Ended

Oct. 06, 2012

Segment Reporting Disclosure [Text Block]

Note 13 – 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.  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.  During the third quarter of 2012, we transferred the operations of our Military distribution center in Jessup, Maryland to a larger facility in Landover, Maryland.  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 October 6, 2012, the Retail segment consists of 74 corporate-owned stores that sell directly to the consumer. 

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

		Third Quarter Ended
		October 6, 2012			October 8, 2011
(In thousands)		Sales from external customers	Inter-segment sales	Segment profit	Sales from external customers	Inter-segment sales	Segment profit
Military	$	708,059	-	10,322	709,720	-	14,666
Food Distribution		546,095	126,050	11,191	620,118	72,358	6,177
Retail		242,189	-	7,725	141,519	-	1,790
Eliminations		-	(126,050)	-	-	(72,358)	-
Total	$	1,496,343	-	29,238	1,471,357	-	22,633

		Year-to-Date Ended
		6-Oct-12			8-Oct-11
(In thousands)		Sales from external customers	Inter-segment sales	Segment profit	Sales from external customers	Inter-segment sales	Segment profit
Military	$	1,762,567	-	29,366	1,776,301	-	38,098
Food Distribution		1,403,807	249,713	19,046	1,529,890	182,593	19,731
Retail		481,401	-	10,776	364,550	-	2,934
Eliminations		-	(249,713)	-	-	(182,593)	-
Total	$	3,647,775	-	59,188	3,670,741	-	60,763

Reconciliation to Consolidated Statements of Income:
		Third Quarter Ended		Year-to-Date Ended
		October 6,	October 8,	October 6,	October 8,
(In thousands)		2012	2011	2012	2011
Total segment profit	$	29,238	22,633	59,188	60,763
Unallocated amounts:
Gain on acquisition of a business		-	-	6,639	-
Goodwill impairment		-	-	(131,991)	-
Interest		(6,283)	(5,896)	(15,112)	(15,042)
Earnings (loss) before income taxes	$	22,955	16,737	(81,276)	45,721