Segment Information

12 Months Ended

Sep. 30, 2012

Segment Information

Segment Information

21.    Segment Information

        We are organized by sales segments on a worldwide basis. We evaluate performance based on a number of factors; however, the primary measures of performance are the net sales and income or loss from operations (before corporate allocations) of each segment, as these are the key performance indicators that we review. Operating income or loss for each segment does not include the impact of any intercompany transfer pricing mark-up, corporate general and administrative expenses, interest expense and other miscellaneous income/expense items. Corporate general and administrative expenses include, but are not limited to, human resources, legal, finance, and various other corporate level activity related expenses. Such unallocated expenses remain within Corporate.

        All our products fall into one or more of these four segments:

• •

  Wholesale—This segment sells products worldwide under various brand names and third-party private labels, each targeting specific market groups which include virtually all major mass merchandisers, club stores, drug store chains and supermarkets. This segment also sells products to independent pharmacies, health food stores, the military and other retailers.

  •

  European Retail—This segment generates revenue through its 687 Holland & Barrett stores (including ten franchised stores in Singapore, six franchised stores in Cyprus and China, three franchised stores in Malta, and United Arab Emirates and one franchised store in Gibraltar and Hungary), 55 GNC (UK) stores in the U.K., 112 De Tuinen stores (including 10 franchised locations) in the Netherlands and 42 Nature's Way stores in Ireland. Such revenue consists of sales of proprietary brand and third-party products as well as franchise fees.

  •

  Direct Response/E-Commerce—This segment generates revenue through the sale of proprietary brand and third-party products primarily through mail order catalog and internet. Catalogs are strategically mailed to customers who order by mail, internet, or by phone.

  •

  North American Retail—This segment generates revenue through its 426 owned and operated Vitamin World stores selling proprietary brand and third-party products.

        The following table represents key financial information of our business segments:

	Wholesale		European Retail		Direct Response / E-Commerce		North American Retail		Corporate / Manufacturing			Consolidated
Successor
Fiscal 2012:
Net sales	$	1,826,780	$	675,889	$	277,278	$	219,786	$	—		$	2,999,733
Income (loss) from continuing operations		241,504		151,274		56,391		22,812		(77,611	)		394,370
Depreciation and amortization		39,692		13,988		10,704		2,996		34,891			102,271
Capital expenditures		804		22,428		131		596		62,355			86,314
Successor
Fiscal 2011:
Net sales	$	1,764,755	$	636,303	$	257,466	$	205,903	$	—		$	2,864,427
Income (loss) from continuing operations		283,775		121,219		59,193		12,575		(239,441	)		237,321
Depreciation and amortization		38,840		13,277		10,649		2,997		33,912			99,675
Capital expenditures		652		19,338		40		955		23,014			43,999
Predecessor
Fiscal 2010:
Net sales	$	1,734,860	$	543,364	$	233,972	$	193,641	$	—		$	2,705,837
Income (loss) from continuing operations		292,991		101,121		68,018		11,272		(118,129	)		355,273
Depreciation and amortization		14,578		10,705		4,698		2,032		31,333			63,346
Capital expenditures		1,473		38,827		36		3,309		25,809			69,454

        Net sales by location of customer:

	Successor				Predecessor
	2012		2011		2010
United States	$	1,922,549	$	1,898,535	$	1,870,622
United Kingdom		653,170		596,927		516,200
Canada		111,047		95,639		81,335
Netherlands		84,167		80,221		65,591
Ireland		33,341		33,774		24,567
Other foreign countries		195,459		159,331		147,522
Consolidated net sales	$	2,999,733	$	2,864,427	$	2,705,837

        Long-lived assets—Property, plant and equipment

	2012		2011
United States	$	358,648	$	333,863
United Kingdom		113,929		103,760
Netherlands		10,101		7,635
Ireland		4,782		4,716
Canada		12,503		12,500
Other foreign countries		12,716		12,098
Consolidated long-lived assets	$	512,679	$	474,572

        Total assets by segment as of September 30, 2012 and 2011 are as follows:

	2012		2011
Wholesale	$	2,531,145	$	2,527,402
European Retail		864,231		853,717
Direct Response/E-Commerce		772,240		781,464
North American Retail		91,510		93,164
Corporate/Manufacturing		792,121		803,332
Assets of discontinued operations		—		40,191
Consolidated assets	$	5,051,247	$	5,099,270

        Approximately 31%, 32% and 29% of our net sales for the fiscal years ended September 30, 2012, 2011 and 2010, respectively, were denominated in currencies other than U.S. dollars, principally British pounds, euros and Canadian dollars. A significant weakening of such currencies versus the U.S. dollar could have a material adverse effect on the Company, as this would result in a decrease in our consolidated operating results.

        Foreign subsidiaries accounted for the following percentages of assets and total liabilities as of September 30, 2012 and 2011:

	2012			2011
Total Assets		25	%		24	%
Total Liabilities		5	%		4	%