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Segment Reporting
 12 Months Ended
Jan. 03, 2015
Segment Reporting
Note 22. Segment Reporting

The company’s DSD Segment primarily produces fresh packaged bread, rolls, tortillas, and snack products and the Warehouse Segment produces fresh and frozen bread and rolls and snack products. Effective the first day of fiscal 2014, we reclassified our tortilla operation from a Warehouse Segment bakery to the DSD Segment. This reclassification was made to better align their sales with the delivery method primarily used to serve their customers. All prior period information has been recasted to reflect this change.

During the fourth quarter of fiscal 2014, we revised net sales. Historically, certain immaterial discounts had been recorded as an expense to selling, distribution and administrative costs. These discounts are now recorded as contra revenue. See Note 3, Financial Statement Revisions, for more detailed disclosure of this revision. All prior period information has been revised to reflect this change.

 

The company evaluates each segment’s performance based on income or loss before interest and income taxes, excluding unallocated expenses and charges which the company’s management deems to be an overall corporate cost or a cost not reflective of the segments’ core operating businesses. Information regarding the operations of these segments is as follows for fiscal years 2014, 2013, and 2012:

 

     Fiscal
2014		      Fiscal
2013		      Fiscal
2012		  
     (Amounts in thousands)  

Sales:

      

DSD Segment

    $ 3,227,689       $ 3,171,241       $ 2,527,207   

Warehouse Segment

      723,540         774,443         647,450   

Eliminations:

      

Sales from Warehouse Segment to DSD Segment

      (130,174 )       (122,082 )       (111,253 ) 

Sales from DSD Segment to Warehouse Segment

      (72,082 )       (90,986 )       (32,280 ) 
  

 

 

     

 

 

     

 

 

  
   $ 3,748,973       $ 3,732,616       $ 3,031,124   
  

 

 

     

 

 

     

 

 

  

Depreciation and amortization:

      

DSD Segment

    $ 113,881       $ 102,341       $ 85,725   

Warehouse Segment

      15,166         15,483         16,832   

Other(1)

      (86 )       667         133   
  

 

 

     

 

 

     

 

 

  
   $ 128,961       $ 118,491       $ 102,690   
  

 

 

     

 

 

     

 

 

  

Income from operations:

      

DSD Segment(2)

    $ 284,231       $ 347,114       $ 231,087   

Warehouse Segment

      51,451         51,934         38,339   

Other(1)

      (60,287 )       (63,815 )       (50,915 ) 
  

 

 

     

 

 

     

 

 

  
   $ 275,395       $ 335,233       $ 218,511   
  

 

 

     

 

 

     

 

 

  

Interest expense

    $ 28,288       $ 28,875       $ 23,411   

Interest income

    $ (20,947 )     $ (16,015 )     $ (13,672 ) 
  

 

 

     

 

 

     

 

 

  

Income before income taxes

    $ 268,054       $ 322,373       $ 208,772   
  

 

 

     

 

 

     

 

 

  

Capital expenditures:

      

DSD Segment

    $ 73,454       $ 81,664       $ 53,492   

Warehouse Segment

      6,468         7,051         9,692   

Other(1)

      3,856         10,466         4,075   
  

 

 

     

 

 

     

 

 

  
   $ 83,778       $ 99,181       $ 67,259   
  

 

 

     

 

 

     

 

 

  

 

     As of  
     January 3,
2015		      December 28,
2013		  

Assets:

      

DSD Segment

    $ 2,094,047       $ 2,163,606   

Warehouse Segment

      201,240         216,194   

Other(3)

      113,687         124,214   
  

 

 

     

 

 

  
   $ 2,408,974       $ 2,504,014   
  

 

 

     

 

 

  

 

(1) Represents the company’s corporate head office amounts, acquisition costs, and the fiscal 2014 pension settlement loss.
(2) Includes the gain on acquisition of $50.1 million in fiscal 2013.
(3) Represents the company’s corporate head office assets including primarily cash and cash equivalents, deferred taxes and deferred financing costs.

Sales by product category in each reportable segment are as follows for fiscal years 2014, 2013, and 2012 (amounts in thousands):

 

     Fiscal 2014      Fiscal 2013      Fiscal 2012  
     Total      DSD
Segment		      Warehouse
Segment		      Total      DSD
Segment		      Warehouse
Segment		      Total      DSD
Segment		      Warehouse
Segment		  

Branded Retail

    $ 2,102,131       $ 1,971,931       $ 130,200       $ 2,038,726       $ 1,898,016       $ 140,710       $ 1,583,887       $ 1,480,048       $ 103,839   

Store Branded Retail

      610,899         486,845         124,054         645,858         504,707         141,151         544,479         426,580         117,899   

Non-retail and Other

      1,035,943         696,831         339,112         1,048,032         677,532         370,500         902,758         588,299         314,459   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 3,748,973       $ 3,155,607       $ 593,366       $ 3,732,616       $ 3,080,255       $ 652,361       $ 3,031,124       $ 2,494,927       $ 536,197