Harris Teeter 2008 Annual Report Download - page 5

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 eight states in the southeastern U.S. and the District of Columbia, while American & Efird,
Inc. (“A&E”) manufactures and distributes industrial sewing thread, embroidery thread and technical textiles
on a global basis.
At September 28, 2008, the Company and its subsidiaries had total consolidated assets of $1,696,407,000
and had approximately 25,500 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 Ruddick Investment Company (which was subsequently merged
into Ruddick Operating Company) and A&E. In 1969, the Company acquired Harris Teeter. Ruddick Operating
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 Operating 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):
2008 2007 2006
Net Sales for the Fiscal Year:
Domestic United States ............................... $3,810,635 $3,454,198 $3,089,776
Foreign Countries.................................... 181,762 185,010 176,080
$3,992,397 $3,639,208 $3,265,856
Net Long-Lived Assets at Fiscal Year End:
Domestic United States ............................... $ 978,363 $ 860,493 $ 726,128
Foreign Countries.................................... 40,625 41,990 42,748
$1,018,988 $ 902,483 $ 768,876
The Company’s consolidated working capital as of September 28, 2008 consisted of $477,156,000 in
current assets and $410,803,000 in current liabilities. Normal operating fluctuations in these balances can result
in changes to cash flow from operating activities presented in the statements of consolidated cash flows that are
not necessarily indicative of long-term operating trends. There are no unusual industry practices or requirements
relating to working capital items in either of the Company’s subsidiary operations.
The Company employs fifteen 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, financial reporting,
employee benefits and public and shareholder relations. The Company assists its subsidiaries in developing