GNC 2010 Annual Report Download - page 117

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Table of Contents
GENERAL NUTRITION CENTERS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 19. SEGMENTS
The Company has three operating segments, each of which is a reportable segment. The operating segments represent identifiable
components of the Company for which separate financial information is available. This information is utilized by management to assess
performance and allocate assets accordingly. The Company's management evaluates segment operating results based on several indicators.
The primary key performance indicators are sales and operating income or loss for each segment. Operating income or loss, as evaluated by
management, excludes certain items that are managed at the consolidated level, such as distribution and warehousing, impairments and other
corporate costs. The following table represents key financial information for each of the Company's business segments, identifiable by the
distinct operations and management of each: Retail, Franchising, and Manufacturing/Wholesale. The Retail segment includes the Company's
corporate store operations in the United States, Canada and its www.gnc.com business. The Franchise segment represents the Company's
franchise operations, both domestically and internationally. The Manufacturing/Wholesale segment represents the Company's manufacturing
operations in South Carolina and the Wholesale sales business. This segment supplies the Retail and Franchise segments, along with various
third parties, with finished products for sale. The Warehousing and Distribution, Corporate Costs, and Other Unallocated Costs represent the
Company's administrative expenses. The accounting policies of the segments are the same as those described in the "Basis of Presentation
and Summary of Significant Accounting Policies". 111