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BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2012
Segment Reporting, Disclosure Of Entity's Reportable Segments [Abstract]  
BUSINESS SEGMENTS

13. 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 years ended December 31, 2012, 2011, and 2010:

 

    Year Ended December 31, 2012  
    Medifast     MWCC &
Wholesale		     Other     Consolidated  
                         
Revenues   $ 300,511,000     $ 56,195,000     $ -     $ 356,706,000  
Cost of Sales     74,984,000       13,687,000       -       88,671,000  
Selling, General and Administrative Expense     184,615,000       40,194,000       8,759,000       233,568,000  
Depreciation and Amortization     8,081,000       2,864,000       260,000       11,205,000  
Interest(net) and other     141,000       26,000       (1,363,000 )     (1,196,000 )
Income before income taxes   $ 32,690,000     $ (576,000 )   $ (7,656,000 )   $ 24,458,000  
                                 
Segment Assets   $ 86,944,000     $ 14,610,000     $ 28,697,000     $ 130,251,000  

 

    Year Ended December 31, 2011  
    Medifast     MWCC &
Wholesale		     Other     Consolidated  
                         
Revenues   $ 259,191,000     $ 38,998,000     $ -     $ 298,189,000  
Cost of Sales     63,888,000       9,805,000       -       73,693,000  
Selling, General and Administrative Expense     152,647,000       30,335,000       5,788,000       188,770,000  
Depreciation and Amortization     6,416,000       1,596,000       332,000       8,344,000  
Interest(net) and other     30,000       -       (328,000 )     (298,000 )
Income before income taxes   $ 36,210,000     $ (2,738,000 )   $ (5,792,000 )   $ 27,680,000  
                                 
Segment Assets   $ 64,388,000     $ 12,658,000     $ 28,619,000     $ 105,665,000  

 

    Year Ended December 31, 2010  
    Medifast     MWCC &
Wholesale		     Other     Consolidated  
                         
Revenues   $ 229,879,000     $ 27,673,000     $ -     $ 257,552,000  
Cost of Sales     58,795,000       6,288,000       -       65,083,000  
Selling, General and Administrative Expense     135,441,000       13,837,000       5,693,000       154,971,000  
Depreciation and Amortization     4,765,000       786,000       307,000       5,858,000  
Interest(net) and other     105,000       -       (157,000 )     (52,000 )
Income before income taxes   $ 30,773,000     $ 6,762,000     $ (5,843,000 )   $ 31,692,000  
                                 
Segment Assets   $ 55,858,000     $ 9,301,000     $ 28,900,000     $ 94,059,000