Harris Teeter 2009 Annual Report Download - page 19

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15
Consolidated Overview
The following table sets forth the operating profit components by each of the Company’s operating segments
and for the holding company (“Corporate”) for the 52 weeks ended September 27, 2009 (fiscal 2009), September
28, 2008 (fiscal 2008), and September 30, 2007 (fiscal 2007). The table also sets forth each of the segment’s net
income components as a percent to total net sales and the percentage increase or decrease of such components
over the prior year (in thousands):
Fiscal 2009 Fiscal 2008 Fiscal 2007 % Inc. (Dec.)
% to
Sales
% to
Sales
% to
Sales
09 vs
08
08 vs
07
Net Sales
Harris Teeter ........... $ 3,827,005 93.8 $3,664,804 91.8 $ 3,299,377 90.7 4.4 11.1
American & Efird....... 250,817 6.2 327,593 8.2 339,831 9.3 (23.4) (3.6)
Total .............. $4,077,822 100.0 $3,992,397 100.0 $3,639,208 100.0 2.1 9.7
Gross Profit
Harris Teeter . . . . . . . . . . . $1,169,441 28.68 $ 1,138,857 28.53 $1,021,739 28.07 2.7 11.5
American & Efird . . . . . . . 47,916 1.17 69,590 1.74 74,608 2.05 (31.1) (6.7)
Total ............... 1,217,357 29.85 1,208,447 30.27 1,096,347 30.12 0.7 10.2
SG&A Expenses
Harris Teeter . . . . . . . . . . . 993,850 24.37 961,092 24.08 867,656 23.84 3.4 10.8
American & Efird . . . . . . . 52,646 1.29 67,262 1.68 73,184 2.01 (21.7) (8.1)
Corporate .............. 6,119 0.15 6,308 0.16 7,333 0.20 (3.0) (14.0)
Total ............... 1,052,615 25.81 1,034,662 25.92 948,173 26.05 1.7 9.1
Impairment Charges – A&E
Goodwill . . . . . . . . . . . . . . 7,654 0.19 — — — — n.m. n.m.
Long-Lived Assets ....... 2,237 0.05 — — — — n.m. n.m.
Total ............... 9,891 0.24 — — — — n.m. n.m.
Operating Profit (Loss)
Harris Teeter . . . . . . . . . . . 175,591 4.31 177,765 4.45 154,083 4.23 (1.2) 15.4
American & Efird . . . . . . . (14,621) (0.36) 2,328 0.06 1,424 0.04 n.m. 63.6
Corporate .............. (6,119) (0.15) (6,308) (0.16) (7,333) (0.20) (3.0) (14.0)
Total ............... 154,851 3.80 173,785 4.35 148,174 4.07 (10.9)17.3
Other Expense, net . . . . . . . . . 16,662 0.41 19,674 0.49 17,683 0.48 (15.3) 11.3
Income Tax Expense ........ 52,225 1.28 57,359 1.44 49,803 1.37 (9.0) 15.2
Net Income ............... $ 85,964 2.11 $96,752 2.42 $80,688 2.22 (11.1)19.9
Consolidated net sales increased 2.1% in fiscal 2009 and 9.7% in fiscal 2008 when compared to prior years
as a result of strong sales gains at Harris Teeter. The fiscal 2009 and 2008 increases were partially offset by sales
declines at A&E. Foreign sales for fiscal 2009 represented 3.4% of the consolidated sales of the Company, compared
to 4.6% for fiscal 2008 and 5.1% for fiscal 2007. Over the past several years, A&E has pursued a global expansion
strategy along with the diversification of its product lines; however, the percentage of foreign sales to consolidated
net sales has declined during these periods as a result of the sales mix between the operating subsidiaries. Refer to
the discussion of segment operations under the captions “Harris Teeter, Retail Grocery Segment” and “American
& Efird, Industrial Thread Segment” for a further analysis of the segment operating results.