XML 50 R18.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Business Segments | 6 Months Ended
--- | ---
Jun. 30, 2012
Business Segments |
| 11. | Business Segments
Operating segments are components of an enterprise about which separate financial information is available that is regularly reviewed by the chief operating decision maker about how to allocate resources and in assessing performance. The Company has two reportable operating segments: Medifast, and MWCC and Wholesale. The Medifast reporting segment consists of the following distribution channels: Medifast Direct and Take Shape for Life. The MWCC and Wholesale segment consists of Medifast Corporate and Franchise Weight Control Centers as well as Medifast Wholesale Physicians. Total assets and operating expense not identified with a specific segment are listed as “Other” and include items such as auditors’ fees, attorney’s fees, stock compensation expense and corporate governance related to NYSE, Sarbanes Oxley and SEC regulations. Evaluation of the performance of operating segments is based on their respective income from operations before taxes. The accounting policies of the segments are the same as those of the Company. The presentation and allocation of assets, liabilities and results of operations may not reflect the actual economic costs of the segments as stand-alone businesses. If a different basis of allocation were utilized, the relative contributions of the segments might differ, but management believes that the relative trends in segments would likely not be impacted. The following tables present segment information for the three and six months ended June 30, 2012 and 2011:
|  | Three Months Ended June 30, 2012 |
|  | Medifast |  |  | MWCC & Wholesales |  |  | Other |  |  | Consolidated |
Revenues |  | $ | 78,220,000 |  |  | $ | 15,351,000 |  |  | $ | - |  |  | $ | 93,571,000 |
Cost of Sales |  |  | 19,782,000 |  |  |  | 3,649,000 |  |  |  | - |  |  |  | 23,431,000 |
Selling, General and Administrative Expense |  |  | 47,173,000 |  |  |  | 10,279,000 |  |  |  | 5,282,000 |  |  |  | 62,734,000 |
Depreciation and Amortization |  |  | 2,030,000 |  |  |  | 720,000 |  |  |  | 58,000 |  |  |  | 2,808,000 |
Interest(net) and other |  |  | 14,000 |  |  |  | 4,000 |  |  |  | (922,000 | ) |  |  | (904,000 | )
Income before income taxes |  | $ | 9,221,000 |  |  | $ | 699,000 |  |  | $ | (4,418,000 | ) |  | $ | 5,502,000 |
Segment Assets |  | $ | 76,898,000 |  |  | $ | 15,853,000 |  |  | $ | 28,207,000 |  |  | $ | 120,958,000 |
|  | Three Months Ended June 30, 2011 |
|  | Medifast |  |  | MWCC & Wholesales |  |  | Other |  |  | Consolidated |
Revenues |  | $ | 68,603,000 |  |  | $ | 9,652,000 |  |  | $ | - |  |  | $ | 78,255,000 |
Cost of Sales |  |  | 16,920,000 |  |  |  | 2,294,000 |  |  |  | - |  |  |  | 19,214,000 |
Selling, General and Administrative Expense |  |  | 39,735,000 |  |  |  | 6,664,000 |  |  |  | 1,570,000 |  |  |  | 47,969,000 |
Depreciation and Amortization |  |  | 1,648,000 |  |  |  | 283,000 |  |  |  | 84,000 |  |  |  | 2,015,000 |
Interest(net) and other |  |  | 3,000 |  |  |  | - |  |  |  | (88,000 | ) |  |  | (85,000 | )
Income before income taxes |  | $ | 10,297,000 |  |  | $ | 411,000 |  |  | $ | (1,566,000 | ) |  | $ | 9,142,000 |
Segment Assets |  | $ | 51,687,000 |  |  | $ | 10,849,000 |  |  | $ | 39,370,000 |  |  | $ | 101,906,000 |
|  | Six Months Ended June 30, 2012 |
|  | Medifast |  |  | MWCC & Wholesales |  |  | Other |  |  | Consolidated |
Revenues |  | $ | 153,773,000 |  |  | $ | 28,723,000 |  |  | $ | - |  |  | $ | 182,496,000 |
Cost of Sales |  |  | 38,709,000 |  |  |  | 6,891,000 |  |  |  | - |  |  |  | 45,600,000 |
Selling, General and Administrative Expense |  |  | 92,084,000 |  |  |  | 22,115,000 |  |  |  | 6,771,000 |  |  |  | 120,970,000 |
Depreciation and Amortization |  |  | 3,825,000 |  |  |  | 1,230,000 |  |  |  | 135,000 |  |  |  | 5,190,000 |
Interest(net) and other |  |  | 47,000 |  |  |  | 8,000 |  |  |  | (1,155,000 | ) |  |  | (1,100,000 | )
Income before income taxes |  | $ | 19,108,000 |  |  | $ | (1,521,000 | ) |  | $ | (5,751,000 | ) |  | $ | 11,836,000 |
Segment Assets |  | $ | 76,898,000 |  |  | $ | 15,853,000 |  |  | $ | 28,207,000 |  |  | $ | 120,958,000 |
|  | Six Months Ended June 30, 2011 |
|  | Medifast |  |  | MWCC & Wholesales |  |  | Other |  |  | Consolidated |
Revenues |  | $ | 134,700,000 |  |  | $ | 17,850,000 |  |  | $ | - |  |  | $ | 152,550,000 |
Cost of Sales |  |  | 32,650,000 |  |  |  | 4,179,000 |  |  |  | - |  |  |  | 36,829,000 |
Selling, General and Administrative Expense |  |  | 78,129,000 |  |  |  | 11,820,000 |  |  |  | 2,951,000 |  |  |  | 92,900,000 |
Depreciation and Amortization |  |  | 2,965,000 |  |  |  | 532,000 |  |  |  | 165,000 |  |  |  | 3,662,000 |
Interest(net) and other |  |  | 10,000 |  |  |  | - |  |  |  | (274,000 | ) |  |  | (264,000 | )
Income before income taxes |  | $ | 20,946,000 |  |  | $ | 1,319,000 |  |  | $ | (2,842,000 | ) |  | $ | 19,423,000 |
Segment Assets |  | $ | 51,687,000 |  |  | $ | 10,849,000 |  |  | $ | 39,370,000 |  |  | $ | 101,906,000 |

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration