Segment, Geographic and Customer Information

12 Months Ended

Dec. 31, 2013

Segment, Geographic and Customer Information

20. SEGMENT, GEOGRAPHIC AND CUSTOMER INFORMATION

We operate as a single reportable segment in manufacturing, marketing, selling and distributing a wide variety of branded and private label dairy case products. Beginning in the first quarter of 2013, we combined the results of our ongoing dairy operations (previously referred to as our Fresh Dairy Direct business) and the corporate items previously categorized as “Corporate and Other” into a single reportable segment, as all of our corporate activities now directly support this business. This change reflects the manner in which our Chief Executive Officer, who is our chief operating decision maker, determines strategy and investment plans for our business given the changes to our operating structure as a result of the WhiteWave spin-off and the Morningstar sale.

We operate 72 manufacturing facilities geographically located largely based on local and regional customer needs and other market factors. We manufacture, market and distribute a wide variety of branded and private label dairy case products, including milk, ice cream, cultured dairy products, creamers, ice cream mix and other dairy products to retailers, distributors, foodservice outlets, educational institutions and governmental entities across the United States. Our products are primarily delivered through what we believe to be one of the most extensive refrigerated direct store delivery (“DSD”) systems in the United States.

On December 2, 2012, we entered into an agreement to sell our Morningstar division, and we completed the sale of these operations on January 3, 2013. The operating results of our Morningstar division, previously reported within the Morningstar segment, have been reclassified as discontinued operations for all periods presented herein. Additionally, as a result of the completion of the WhiteWave spin-off on May 23, 2013, we have reclassified WhiteWave’s operating results as discontinued operations for all periods presented herein. All intersegment sales between WhiteWave and us, previously recorded as intersegment sales and eliminated in consolidation prior to the WhiteWave spin-off, are now reflected as third-party sales that, along with their related costs, are no longer eliminated in consolidation. See Notes 2 and 3, respectively, for further information regarding the WhiteWave spin-off and our discontinued operations.

Our Chief Executive Officer evaluates the performance of our business based on sales and operating income or loss before gains and losses on the sale of businesses, facility closing and reorganization costs, litigation settlements, impairments of long-lived assets and other non-recurring gains and losses.

All results herein have been recast to present results on a comparable basis. These changes had no impact on consolidated net sales and operating income. The amounts in the following tables include our operating results and are obtained from reports used by our executive management team and do not include any allocated income taxes or management fees. There are no significant non-cash items reported in segment profit or loss other than depreciation and amortization.

	Year Ended December 31,
	2013			2012			2011
	(in thousands)
Operating income (loss):
Dean Foods	$	202,720		$	259,013		$	162,614
Facility closing and reorganization costs		(27,008	)		(55,787	)		(45,688	)
Litigation settlements		1,019			—			(131,300	)
Impairment of goodwill and other long-lived assets		(43,441	)		—			(2,075,836	)
Other operating income (loss)		(2,494	)		57,459			13,785
Total		130,796			260,685			(2,076,425	)
Other (income) expense:
Interest expense		200,558			150,589			177,449
Loss on early retirement of debt		63,387			—			—
Gain on disposition of WhiteWave common stock		(415,783	)		—			—
Other income, net		(400	)		(1,664	)		(2,037	)
Consolidated income (loss) from continuing operations before income taxes	$	283,034		$	111,760		$	(2,251,837	)

Geographic Information — Net sales related to our foreign operations comprised less than 1% of our consolidated net sales during the years ended December 31, 2013, 2012 and 2011. None of our long-lived assets are associated with our foreign operations.

Significant Customers — Our largest customer accounted for approximately 19% of our consolidated net sales in 2013, 23% in 2012 and 22% in 2011.