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BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2013
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, 2013, 2012, and 2011:
 
 
 
Year Ended December 31, 2013
 
 
 
 
 
 
MWCC &
 
 
 
 
 
 
 
 
 
Medifast
 
Wholesale
 
Other
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
304,249,000
 
$
52,637,000
 
$
-
 
$
356,886,000
 
Cost of Sales
 
 
75,200,000
 
 
13,840,000
 
 
-
 
 
89,040,000
 
Selling, General and Administrative Expense
 
 
182,098,000
 
 
34,899,000
 
 
5,877,000
 
 
222,874,000
 
Depreciation and Amortization
 
 
7,600,000
 
 
3,520,000
 
 
262,000
 
 
11,382,000
 
Interest(net) and other
 
 
82,000
 
 
36,000
 
 
(715,000)
 
 
(597,000)
 
Income before income taxes
 
$
39,269,000
 
$
342,000
 
$
(5,424,000)
 
$
34,187,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Assets
 
$
76,182,000
 
$
10,950,000
 
$
45,518,000
 
$
132,650,000
 
 
 
 
Year Ended December 31, 2012
 
 
 
 
 
 
MWCC &
 
 
 
 
 
 
 
 
 
Medifast
 
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
 
 
 
 
 
 
MWCC &
 
 
 
 
 
 
 
 
 
Medifast
 
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