Segment Information

9 Months Ended

Dec. 28, 2012

Segment Reporting [Abstract]

SEGMENT INFORMATION

The Company goes to market through strategic businesses that offer products and services to customers within the healthcare industry. The reportable segments are determined based on the factors management utilizes to regularly evaluate the performance of the Company. The reportable segments are managed separately based on the distinct customers and the product and service offerings required by the markets they serve. The Company evaluates the operating performance of its segments based on a number of financial measures, including net sales and income from operations before interest, income taxes and results of discontinued operations.

On May 8, 2012, the Company's Board of Directors approved a strategic restructuring plan designed to transform the Company. The restructuring plan included the sale of two businesses serving skilled nursing facilities within the Extended Care Business and specialty dental practices within the Physician Business. As part of the restructuring plan, the previously reported Physician Business and Extended Care Business segments have been realigned into four strategic business segments including: Physician, Laboratory, Dispensing, and Home Care & Hospice. Each of the segments serve a distinct customer base or provide a distinct product and service offering to the same customer base.

The Company allocates certain components of net sales, cost of goods sold and operating expenses to each of the reportable segments. These allocated components represent specific revenues or costs not specifically identifiable to an individual reportable segment. Management determined the methodology utilized to allocate these items to be reasonable and consistently applied for each period presented, based on inputs and cost drivers common to each reportable segment.

The strategic business segments share healthcare distribution services infrastructure and support costs. The costs of shared healthcare distribution services infrastructure and support are charged to each segment directly, if specifically identifiable, or allocated to each segment based on methodologies reasonably determined by management.

Shared Services includes expenses associated with corporate functions that support the segments through the development of strategic solutions and the delivery of standardized service and transaction processing. Shared Services allocates a portion of its costs to the segments to the extent the segments use the support services provided, based on an estimation of the direct costs attributable to those services. For those operating segments that use Shared Services, the allocation of shared operating costs is generally proportionate to the revenues of the respective segment.

The following tables present financial information about the business segments:

		For the Three Months Ended				For the Nine Months Ended
		December 28,		December 30,		December 28,		December 30,
(in thousands)		2012		2011		2012		2011
Net Sales:
Physician		$	255,066	$	248,862	$	765,915	$	745,934
Laboratory			135,597		96,434		356,775		280,383
Dispensing			21,231		22,695		67,630		61,921
Home Care & Hospice			21,652		25,773		72,776		76,631
Shared Services			366		439		1,003		1,535
	Total net sales	$	433,912	$	394,203	$	1,264,099	$	1,166,404
Income (Loss) from Operations: (a)
Physician		$	25,693	$	23,936	$	69,026	$	68,701
Laboratory			13,295		9,838		32,626		28,265
Dispensing			(1,211)		2,740		(379)		5,372
Home Care & Hospice			2,348		2,430		6,956		7,637
Shared Services			(16,118)		(11,006)		(35,997)		(32,026)
	Total income from operations		24,007		27,938		72,232		77,949
Interest expense			(8,778)		(4,784)		(25,820)		(13,864)
Interest income			16		15		43		59
Other income, net			415		596		1,138		1,564
Income from Continuing Operations Before Provision for Income Taxes:		$	15,660	$	23,765	$	47,593	$	65,708
Depreciation and Amortization: (b)
Physician		$	2,582	$	2,501	$	7,885	$	7,342
Laboratory			773		381		2,097		1,113
Dispensing			1,928		1,216		5,060		3,381
Home Care & Hospice			215		257		645		763
Shared Services			2,814		2,795		8,392		8,228
	Total depreciation and amortization	$	8,312	$	7,150	$	24,079	$	20,827
		As of
		December 28,		March 30,
		2012		2012
Total Assets:
Operating segments		$	741,489	$	610,859
Shared Services			312,907		267,733
Assets held for sale			252,420		277,378
	Total assets	$	1,306,816	$	1,155,970

• Operating income includes an allocation of costs of healthcare distribution services as defined above.
• Depreciation and amortization includes an allocated cost of healthcare distribution services as defined above.

Total assets are not disclosed by operating segment as certain assets are shared amongst the segments, such as inventory and accounts receivable. It is not practicable to specifically allocate such assets to the operating segments.