Segment Information

3 Months Ended

Dec. 31, 2013

Segment Information

Segment Information

13. Segment Information

        We are organized by 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/Manufacturing.

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

• •

  Wholesale—This segment sells products 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 743 Holland & Barrett stores (including franchised stores in the following countries: 31 in China, 26 in Singapore, eight in each of United Arab Emirates and Cyprus, four in Malta and one in each of Gibraltar and Iceland), 57 GNC (UK) stores in the U.K., 128 De Tuinen stores (including seven franchised locations) in the Netherlands, 47 Nature's Way stores in Ireland and 13 Essenza stores in Belgium which were acquired in June of 2013, as well as internet-based sales from www.hollandandbarret.com, www.detuinen.nl and www.gnc.co.uk. 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 under the Puritan's Pride tradename. Catalogs are strategically mailed to customers who order by mail, internet or phone.

• •

  North American Retail—This segment generates revenue through its 423 owned and operated Vitamin World stores selling proprietary brand and third-party products, as well as internet-based sales fromwww.vitaminworld.com.

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

	Total Reportable Business Segments
	Wholesale		European Retail		Direct Response/ E-Commerce		North American Retail		Total		Corporate/ Manufacturing			Consolidated
Three Months Ended December 31, 2013:
Net sales	$	505,275	$	204,912	$	60,362	$	56,556	$	827,105	$	—		$	827,105
Income (loss) from continuing operations		82,728		43,960		6,975		2,792		136,455		(22,274	)		114,181
Depreciation and amortization		9,086		4,044		2,812		706		16,648		8,918			25,566
Capital expenditures		31		5,321		570		3,633		9,555		11,692			21,247
Three Months Ended December 31, 2012:
Net sales	$	494,204	$	178,983	$	58,685	$	57,355		789,227		—			789,227
Income (loss) from continuing operations		69,926		39,984		12,249		5,882		128,041		(22,916	)		105,125
Depreciation and amortization		9,629		3,743		2,504		630		16,506		6,885			23,391
Capital expenditures		174		8,108		112		757		9,151		24,367			33,518

        Total assets by segment are as follows:

	December 31, 2013		September 30, 2013
Reportable Business Segments:
Wholesale	$	2,654,841	$	2,553,857
European Retail		951,804		924,979
Direct Response / E-Commerce		694,017		692,685
North American Retail		120,726		119,395
Total Reportable Business Segments:		4,421,388		4,290,916
Corporate / Manufacturing		701,316		782,400
Consolidated assets	$	5,122,704	$	5,073,316