Segment Information

9 Months Ended

Jun. 30, 2015

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:

•           Consumer Products Group—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.

•           Holland & Barrett International—This segment generates revenue through its 1,007 Holland & Barrett and co-branded stores; including company-owned stores in the following countries: 690 in the UK, 151 in the Netherlands, 48 in Ireland, 18 in Belgium; and franchised stores in the following countries: 32 in China, 28 in Singapore, 15 in United Arab Emirates,10 in Cyprus, five in each of Malta and the Netherlands, two in each of Spain and Kuwait and one in Gibraltar. We also have 49 GNC / MET-Rx branded UK stores, 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. We are currently in the process of co-branding the De Tuinen, Essenza and Natures Way stores to leverage the value of the Holland & Barrett brand.

•           Puritan's Pride—This segment generates revenue through the sale of proprietary brand and third-party products primarily through the internet and mail order catalogs under the Puritan's Pride tradename. Catalogs are strategically mailed to customers who order by mail, internet, or phone.

•           Vitamin World—This segment generates revenue through its 386 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
	Consumer Products Group		Holland & Barrett International		Puritan's Pride		Vitamin World		Total		Corporate/ Manufacturing			Consolidated
Three Months Ended June 30, 2015(As restated):
Net sales	$	476,452	$	225,428	$	62,467	$	51,263	$	815,610	$	—		$	815,610
Income (loss) from operations		61,363		45,890		6,630		1,395		115,278		(37,387	)		77,891
Depreciation and amortization		8,993		5,848		2,838		945		18,624		20,402			39,026
Capital expenditures		602		17,139		22		1,460		19,223		18,403			37,626
Three Months Ended June 30, 2014:
Net sales	$	471,344	$	215,328	$	63,940	$	56,349	$	806,961	$	—		$	806,961
Income (loss) from operations		41,355		48,386		9,009		3,073		101,823		(22,535	)		79,288
Depreciation and amortization		9,032		4,807		2,830		892		17,561		9,748			27,309
Capital expenditures		41		12,380		402		4,388		17,211		7,981			25,192
Nine Months Ended June 30, 2015(As restated):
Net sales	$	1,425,918	$	655,831	$	188,984	$	158,524	$	2,429,257	$	—		$	2,429,257
Income (loss) from operations		147,828		138,287		19,159		4,790		310,064		(94,023	)		216,041
Depreciation and amortization		27,021		16,005		8,508		2,745		54,279		44,180			98,459
Capital expenditures		1,301		40,291		293		3,131		45,016		38,576			83,592
Nine Months Ended June 30, 2014:
Net sales	$	1,420,067	$	635,556	$	187,904	$	169,565	$	2,413,092	$	—		$	2,413,092
Income (loss) from operations		143,087		142,260		23,372		7,568		316,287		(72,549	)		243,738
Depreciation and amortization		27,199		12,984		8,475		2,365		51,023		27,686			78,709
Capital expenditures		244		27,248		1,084		11,977		40,553		31,883			72,436

        The three months ended June 30, 2015 was restated to reflect the corrections described in Note 1. This restatement resulted in the reduction of Income (loss) from operations for the above columns as follows: $534 for Consumer Products Group, $55 for Puritan's Pride, $589 for Total, $4,905 for Corporate / Manufacturing and $5,494 for Consolidated.

        The nine months ended June 30, 2015 was restated to reflect the corrections described in Note 1. This restatement resulted in the reduction of Income (loss) from operations for the above columns as follows: $3,743 for Consumer Products Group, $576 for Puritan's Pride, $2,529 for Vitamin World, $6,893 for Total, $6,659 for Corporate / Manufacturing and $13,498 for Consolidated.

        Total assets by segment are as follows:

	June 30, 2015		September 30, 2014
	(As Restated)		(As Revised)
Reportable Business Segments:
Consumer Products Group	$	2,468,588	$	2,504,402
Holland & Barrett International		992,960		948,010
Puritan's Pride		511,283		513,218
Vitamin World		111,257		109,962
Total Reportable Business Segments:		4,084,088		4,075,592
Corporate / Manufacturing		769,373		747,817
Consolidated assets	$	4,853,461	$	4,823,409

        Assets by segment as of September 30, 2014 were revised to reflect the correction of the Company's policy with respect to its labels inventory and prepaid rent (as described in Note 1). This revision resulted in an increase in assets as follows: $3,743 for Consumer Products Group segment; $576 Puritan's Pride segment and $2,520 for Vitamin World segment, partially offset by a decrease of $2,552 for Corporate / Manufacturing.