Ace Hardware 2005 Annual Report Download - page 35

10 ACE HARDWARE CORP. NEW FRONTIERS. NEW OPPORTUNITIES.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Period Ended December 31, 2005
(In thousands) Elimination of
Paint Intersegment
Wholesale Manufacturing Other Activities Consolidated
Net sales from external customers ........................ $ 3,387,219 $ 23,292 $ 55,451)$—)$ 3,465,962
Intersegment sales .................................................. 32,266 125,371 —)(157,637) —)
Interest expense .................................................... 24,673 1,082 703)(1,785) 24,673
Depreciation and amortization .............................. 25,893 3,177 1,336)—)30,406
Segment profit (loss)
from continuing operations .......................... 96,180 10,061 (6,465) 643)100,419
Identifiable segment assets .................................... 1,206,481 62,978 85,121 (18,136) 1,336,444
Expenditures for long-lived assets ........................ 21,411 5,542 1,911 —)28,864
Period Ended January 1, 2005
(In thousands) Elimination of
Paint Intersegment
Wholesale Manufacturing Other Activities Consolidated
Net sales from external customers ........................ $ 3,219,638 $ 24,769 $ 44,269 $ —)$ 3,288,676
Intersegment sales .................................................. 24,375 119,638 —)(144,013) —)
Interest expense .................................................... 21,577 1,223 738 (1,961) 21,577
Depreciation and amortization .............................. 28,022 2,716 1,365 —)32,103
Segment profit (loss)
from continuing operations .......................... 91,303 10,194 (150) 200 101,547
Identifiable segment assets .................................... 1,160,323 61,598 72,322 (23,403) 1,270,840
Expenditures for long-lived assets ........................ 35,057 4,469 2,142 —)41,668
Period Ended January 3, 2004
(In thousands) Elimination of
Paint Intersegment
Wholesale Manufacturing Other Activities Consolidated
Net sales from external customers ........................ $ 3,094,262 $ 17,022 $ 48,037 $ —)$ 3,159,321
Intersegment sales .................................................. 24,351 120,915 —)(145,266) —)
Interest expense .................................................... 19,838 1,143 695 (1,838) 19,838
Depreciation and amortization .............................. 33,207 1,927 1,494 —)36,628
Segment profit (loss)
from continuing operations .......................... 90,303 12,244 (2,860) 400 100,087
Identifiable segment assets .................................... 1,059,302 58,047 66,550 (24,831) 1,159,068
Expenditures for long-lived assets ........................ 59,442 2,506 222 —)62,170
Net sales and long-lived assets by geographic region based upon customer location are as follows:
December 31, 2005 January 1, 2005 January 3, 2004
(In thousands)
Net sales for the period:
United States ................................................ $ 3,326,014 $ 3,163,568 $ 3,052,222
Foreign countries .......................................... 139,948 125,108 107,099
Total .................................................. $ 3,465,962 $ 3,288,676 $ 3,159,321
Long-lived assets, net at end of period:
United States ................................................ $ 282,459 $ 291,762 $ 309,574
Foreign countries .......................................... —)—)—)
Total .................................................. $ 282,459 $ 291,762 $ 309,574
(10) Segments
The Company is principally engaged as a wholesaler of hardware
and related products and manufactures paint products. The
Company identifies segments based on management responsibility
and the nature of the business activities of each component of the
Company. The Company measures segment profit as operating
profit including an allocation for interest expense and income
taxes. The net sales from external customers included in the other
category are generated primarily from Company-owned retail
locations. Information regarding the identified segments and the
related reconciliation to consolidated information is as follows: