(13) Segment Reporting
The Company’s chief operating decision maker (“CODM”) changed during the fourth quarter of fiscal 2012, and in the second quarter of fiscal 2013 there was a change in the information used by the CODM to make decisions about the allocation of resources and the assessment of performance. As a result, during the second quarter of fiscal 2013, the Company changed its operating and reportable segments. The Company previously had one operating segment and one reportable segment; it now aggregates its five operating segments into two reportable segments based on similarities between: economic characteristics, nature of the products, production process, type of customer, methods of distribution, and regulatory environment. The Company’s two reportable segments are Snacks and Nuts. The Snacks reportable segment predominately includes products sold under Kettle U.S., Kettle U.K. and Pop Secret. The Nuts reportable segment predominantly includes products sold under Emerald and Diamond of California.
The Company evaluates the performance of its segments based on net sales and gross profit. Gross profit is calculated as net sales less all cost of sales. The Company’s CODM does not receive or utilize asset information to evaluate performance of operating segments, so asset-related information has not been presented. The accounting policies of the Company’s segments are the same as those described in the summary of critical accounting policies set forth in “Management’s Discussion and Analysis of Results of Operations.”
The Company’s net sales and gross profit by segment for the fiscal 2013, 2012 and 2011 were as follows:
| Year ended July 31, | ||||||||||||
| 2013 | 2012 | 2011 | ||||||||||
|
Net sales |
||||||||||||
|
Snacks |
$ | 437,955 | $ | 425,175 | $ | 403,701 | ||||||
|
Nuts |
426,057 | 556,243 | 562,987 | |||||||||
|
|
|
|
|
|
|
|||||||
|
Total |
$ | 864,012 | $ | 981,418 | $ | 966,688 | ||||||
|
|
|
|
|
|
|
|||||||
|
Gross profit |
||||||||||||
|
Snacks |
$ | 152,133 | $ | 128,122 | $ | 131,807 | ||||||
|
Nuts |
53,390 | 51,599 | 84,672 | |||||||||
|
|
|
|
|
|
|
|||||||
|
Total |
$ | 205,523 | $ | 179,721 | $ | 216,479 | ||||||
|
|
|
|
|
|
|
|||||||
Net sales by channel/product were as follows for fiscal 2013, 2012, and 2011 were as follows:
| Year Ended July 31, | ||||||||||||
| 2013 | 2012 | 2011 | ||||||||||
|
Snacks |
$ | 437,955 | $ | 425,175 | $ | 403,701 | ||||||
|
Retail Nuts |
365,178 | 473,402 | 413,136 | |||||||||
|
|
|
|
|
|
|
|||||||
|
Total Retail |
803,133 | 898,577 | 816,837 | |||||||||
|
|
|
|
|
|
|
|||||||
|
Non-Retail International Nuts |
37,993 | 51,208 | 119,017 | |||||||||
|
North American Ingredient Nuts/Food Service Nuts Other |
22,886 | 31,633 | 30,834 | |||||||||
|
|
|
|
|
|
|
|||||||
|
Total Non-Retail |
$ | 60,879 | $ | 82,841 | $ | 149,851 | ||||||
|
|
|
|
|
|
|
|||||||
|
Total Net Sales |
$ | 864,012 | $ | 981,418 | $ | 966,688 | ||||||
|
|
|
|
|
|
|
|||||||
The geographic distributions of the Company’s net sales for the fiscal years ended July 31 were as follows:
| 2013 | 2012 | 2011 | ||||||||||
|
United States |
$ | 659,110 | $ | 754,966 | $ | 676,829 | ||||||
|
Europe |
134,557 | 141,670 | 161,365 | |||||||||
|
Other |
70,345 | 84,782 | 128,494 | |||||||||
|
|
|
|
|
|
|
|||||||
|
Total |
$ | 864,012 | $ | 981,418 | $ | 966,688 | ||||||
|
|
|
|
|
|
|
|||||||
The geographic distributions of the Company’s long-lived assets as of July 31 were as follows:
| 2013 | 2012 | |||||||
|
United States |
$ | 103,364 | $ | 116,273 | ||||
|
United Kingdom |
28,861 | 30,671 | ||||||
|
|
|
|
|
|||||
|
Total |
$ | 132,225 | $ | 146,944 | ||||
|
|
|
|
|
|||||