XML 38 R20.htm IDEA: XBRL DOCUMENT

Segments, Products and Customers

12 Months Ended

Dec. 31, 2015

Note 13 - Segments, Products and Customers

The Company manufactures probiotic, cultured, functional dairy health food products. The Company's primary product is kefir, a dairy beverage similar to but distinct from yogurt, in several flavors and in several package configurations. In addition to the drinkable products, Lifeway manufactures "Lifeway Farmer Cheese," a line of various farmer cheeses.

The Company has determined that it has one reportable segment based on how the Company's chief operating decision maker manages the business and in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing company performance, has been identified collectively as the Chief Financial Officer, the Chief Executive Officer and Chairman of the board of directors. Substantially all of the consolidated revenues of the Company relate to the sale of fermented dairy products which are produced using the same processes and materials and are sold to consumers through a network of distributors and retailers in the United States.

Gross sales of products by category were as follows for the years ended December 31:

	2015		2014		2013

Lifeway Farmer Cheese	$	9,725	$	10,266	$	9,388
Drinkable Kefir other than ProBugs		118,090		110,297		90,441
ProBugs		7,936		7,868		7,127
Frozen Kefir		1,493		1,785		2,010
Total sales	$	137,244	$	130,216	$	108,966

Significant Customers - Sales are predominately to companies in the retail food industry, located within the United States. Two major customers accounted for approximately 26%, 28% and 35% of gross sales for the years ended December 31, 2015, 2014 and 2013, respectively. These customers accounted for approximately 20% and 23% of accounts receivable as of December 31, 2015 and 2014 respectively.