Segment Information

12 Months Ended

Sep. 30, 2015

Segment Information

Segment Information

19.    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. Our products are sold to the major mass merchandisers, club stores, drug store chains and supermarkets, as well as to online retailers, independent pharmacies, health food stores, the military and other retailers.

•           Holland & Barrett International—This segment operates 843 Holland & Barrett stores (including 744 company-owned stores in the UK and Ireland; and franchised stores in the following countries: 33 in China, 28 in Singapore, 16 in United Arab Emirates, 10 in Cyprus, five in Malta, four in Kuwait, two in Spain and one in Gibraltar). Holland & Barrett International also operated 161 De Tuinen stores (including cobranded stores) in the Netherlands (of which five were franchises), 18 Essenza stores in Belgium, and 49 GNC/MET-Rx stores in the UK. Holland & Barrett International operates Holland & Barrett retail websites in the UK, Ireland, the Netherlands and Belgium, as well as retail websites for De Tuinen in the Netherlands and the GNC/MET-Rx brands in the UK. The revenue generated by this segment consists of sales of its branded products and third-party products as well as franchise fees. We are in the process of rebranding or cobranding our De Tuinen and Essenza stores to leverage consumer awareness of our Holland & Barrett brand. We are also in the process of rebranding our GNC brand stores to MET-Rx.

•           Puritan's Pride—This segment generates revenue through the sale of its branded products 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 385 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
Fiscal 2015:
Net sales	$	1,883,164	$	885,872	$	248,982		$	208,106		$	3,226,124	$	—		$	3,226,124
Income (loss) from operations(1)(2)		186,348		185,984		26,107			(53,224	)		345,215		(126,514	)		218,701
Depreciation and amortization		36,057		22,279		11,423			3,776			73,535		61,871			135,406
Capital expenditures		1,469		55,227		1,771			4,588			63,055		52,405			115,460
Fiscal 2014:
Net sales	$	1,879,481	$	850,797	$	250,224		$	225,276		$	3,205,778	$	—		$	3,205,778
Income (loss) from operations(3)		177,069		191,207		(141,660	)		(26,975	)		199,641		(96,901	)		102,740
Depreciation and amortization		36,092		18,048		11,319			3,344			68,803		37,754			106,557
Capital expenditures		482		42,315		1,456			14,095			58,348		46,859			105,207
Fiscal 2013:
Net sales	$	1,938,921	$	743,861	$	246,731		$	233,528		$	3,163,041	$	—		$	3,163,041
Income (loss) from operations(4)		231,812		170,479		39,104			24,538			465,933		(136,168	)		329,765
Depreciation and amortization		36,517		14,320		10,137			2,708			63,682		46,954			110,636
Capital expenditures		971		27,198		4,411			5,557			38,137		91,083			129,220

(1)	Includes charges within Corporate / Manufacturing of $23,952 related to the sale of the nutritional bar assets and powder facility (see Note 4) and charges of $4,308 related to the Glucosamine settlement (see Note 11). Also includes charges in the Consumer Products Group and Puritan's Pride segments of $4,892 and $649, respectively, related to the write-off of goodwill in relation to the sale of the powder facility (see Note 7).
(2)	Includes a charge within the Vitamin World segment of $55,000 related to the impairment on its indefinite-lived tradenames (see Note 7).
(3)	Includes charges within the Puritan's Pride and Vitamin World segments of $171,590 and $35,744, respectively, related to the goodwill and intangible asset impairment charges (see Note 7).
(4)	Includes charges within Corporate / Manufacturing of $32,695 relating to the facility restructuring (see Note 4) and $12,000 related to the accrual of the Glucosamine settlement (see Note 11).

        Total assets by segment as of September 30 are as follows:

	2015		2014
			(As revised)
Reportable Business Segments:
Consumer Products Group	$	2,542,942	$	2,504,402
Holland & Barrett International		944,825		948,010
Puritan's Pride		514,795		513,218
Vitamin World		51,881		109,962
Total Reportable Business Segments:		4,054,443		4,075,592
Corporate / Manufacturing		813,966		747,817
Consolidated assets	$	4,868,409	$	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 2). 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.

        Total net sales by location of customer for the fiscal years ended September 30, are as follows:

	2015		2014		2013
United States	$	1,934,729	$	1,934,668	$	2,024,178
United Kingdom		812,685		767,173		675,378
Canada		116,296		118,814		129,476
Netherlands		112,205		116,107		98,673
Ireland		35,820		40,235		36,655
Other foreign countries		214,389		228,781		198,681
Consolidated net sales	$	3,226,124	$	3,205,778	$	3,163,041

        Long-lived assets—Property, plant and equipment as of September 30, are as follows:

	2015		2014
United States	$	387,376	$	399,296
United Kingdom		160,131		146,814
Netherlands		22,969		15,778
Ireland		8,937		4,454
Canada		6,419		10,687
Other foreign countries		19,876		20,173
Consolidated long-lived assets	$	605,708	$	597,202

        Approximately 36%, 35% and 32% of our net sales for the fiscal years ended September 30, 2015, 2014 and 2013, respectively, were denominated in currencies other than U.S. dollars, principally British pounds, euros, Renminbi 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 total assets and total liabilities as of September 30:

	2015			2014
Total Assets		29	%		28	%
Total Liabilities		7	%		6	%