Segment Information

3 Months Ended

Dec. 31, 2014

Segment Information

Segment Information

11. 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 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 766 Holland & Barrett stores (including franchised stores in the following countries: 31 in China, 30 in Singapore, 12 in United Arab Emirates,10 in Cyprus, five in Malta and one in each of Gibraltar, Iceland and Kuwait), 148 De Tuinen stores (including six franchised locations) in the Netherlands, 53 GNC branded UK stores, 48 Nature's Way stores in Ireland and 17 Essenza stores in Belgium, as well as internet-based sales from www.hollandandbarrett.com, www.hollandandbarrett.co.uk, www.hollandandbarrett.ie,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 catalogs and the 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 403 owned and operated Vitamin World stores selling proprietary brand and third-party products, as well as internet-based sales from www.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, 2014:
Net sales	$	495,126	$	213,597	$	63,143	$	53,905	$	825,771	$	—		$	825,771
Income (loss) from operations		64,829		46,315		6,060		1,304		118,508		(22,983	)		95,525
Depreciation and amortization		9,002		5,049		2,830		895		17,776		10,289			28,065
Capital expenditures		73		10,703		13		1,023		11,812		7,278			19,090
Three Months Ended December 31, 2013:
Net sales	$	505,275	$	204,912	$	60,362	$	56,556	$	827,105	$	—		$	827,105
Income (loss) from 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

        Total assets by segment are as follows:

	December 31, 2014		September 30, 2014
Reportable Business Segments:
Wholesale	$	2,523,828	$	2,581,069
European Retail		918,555		948,010
Direct Response / E-Commerce		512,527		512,642
North American Retail		107,289		107,442
Total Reportable Business Segments:		4,062,199		4,149,163
Corporate / Manufacturing		788,647		728,559
Consolidated assets	$	4,850,846	$	4,877,722