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PART I
Item 1. Business
Ruddick Corporation (the “Company”) is a holding company which, through its wholly-owned subsidiaries,
is engaged in two primary businesses: Harris Teeter, Inc. (“Harris Teeter”) currently operates a regional chain of
supermarkets in seven southeastern states, and American & Efird, Inc. (“A&E”) manufactures and distributes
industrial sewing thread, embroidery thread and technical textiles on a global basis.
At September 30, 2007, the Company and its subsidiaries had total consolidated assets of $1,529,689,000
and had approximately 24,800 employees. The principal executive office of the Company is located at 301
S. Tryon Street, Suite 1800, Charlotte, North Carolina, 28202.
Ruddick Corporation, which is incorporated under North Carolina law, was created in 1968 through the
consolidation of the predecessor companies of A&E and Ruddick Investment Company. In 1969, the Company
acquired Harris Teeter. Ruddick Investment Company is not classified as a separate operating component of the
Company due to its limited operations and relative size to the consolidated group. Ruddick Investment Company
manages venture capital holdings in a limited number of entities and has investments in various independently
managed venture capital investment funds. For information regarding the Company’s investments, see the Note
entitled “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in
Item 8 hereof.
The two primary businesses of the Company, together with financial information and competitive aspects
of such businesses, are discussed separately below. For other information regarding industry segments, see
the Note entitled “Industry Segment Information” of the Notes to Consolidated Financial Statements in Item 8
hereof.
The only foreign operations conducted by the Company are through A&E. Neither of the two primary
businesses would be characterized as seasonal. The following analysis is based upon the Company’s operating
locations for the fiscal periods and year end (in thousands):
2007 2006 2005
Net Sales for the Fiscal Year:
Domestic United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,454,198 $ 3,089,776 $ 2,796,321
Foreign Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185,010 176,080 168,334
$ 3,639,208 $ 3,265,856 $ 2,964,655
Net Long-Lived Assets at Fiscal Year End:
Domestic United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 860,493 $ 726,128 $ 599,688
Foreign Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,990 42,748 38,866
$ 902,483 $ 768,876 $ 638,554
The Company employs sixteen people at its corporate headquarters, including two executive officers who
formulate and implement overall corporate objectives and policies. The Company’s employees perform functions
in a number of areas including finance, accounting, internal audit, risk management, reporting, employee benefits
and public and shareholder relations. The Company assists its subsidiaries in developing long-range goals, in
strengthening management personnel and their operations and financing. Management of each subsidiary is
responsible for implementing operating policies and reports to management of the Company.
Harris Teeter
As of September 30, 2007, Harris Teeter operated 164 supermarkets located in North Carolina (123),
Virginia (26), South Carolina (9), Tennessee (3), Georgia (1), Florida (1) and Maryland (1). These supermarkets
offer a full assortment of groceries, produce, meat and seafood, delicatessen items, bakery items, wines and
non-food items such as health and beauty care, and floral. In addition, Harris Teeter operated pharmacies in 97