v3.25.1
Note 12 - Segment Information
 12 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

12. Segment Information

 

The Company conducts its business almost entirely in food packaging with two reportable segments: Vegetable and Fruit/Snack. The reportable segments reflect how the Company's Chief Executive Officer, who is the Chief Operating Decision Maker (“CODM”), allocates resources and evaluates performance, and how the Company's internal management financial reporting is structured. The Company's CODM evaluates the performance of these reportable segments with a focus on earnings (loss) before income taxes as the measure of segment profit or loss.

 

The Other category consists of the Company's non-food operations including revenue derived from the sale of cans, ends, seed, outside revenue from the Company's aircraft operations, and certain corporate items. These ancillary activities do not qualify as an operating segment and are not eligible for aggregation with one of the identified operating segments; therefore they are combined and presented within the “Other” category.

 

Earnings (loss) before income taxes is utilized by the CODM to assess the profitability of the business. The CODM uses this information in making key operational decisions, including but not limited to, approval of annual budgets, expanding into new markets or product categories, pursuing business acquisitions or divestures, and initiating major capital expenditures. Analysis of current and historical trends of segment performance, including consideration of known favorable or unfavorable factors that contributed to the financial results for a given period, may also be performed as part of the process. The Company’s business strategies are prioritized and assessed to determine how resources should be allocated to achieve the initiatives and the associated impact on segment performance.

 

Segment information is provided on a FIFO basis which is consistent with how financial information is prepared internally and provided to the CODM. The LIFO impact on earnings (loss) before income taxes and total assets is shown separately for purposes of reconciling to the GAAP financial statement measure shown on the Consolidated Statements of Net Earnings and Consolidated Balance Sheets.

 

The Company adopted ASU 2023-07 during the fiscal year ended March 31, 2025, the impact of which expanded the required segment disclosures including retrospective application for prior fiscal year amounts. The following table summarizes segment earnings (loss) before income taxes and significant segment expenses (in thousands):

 

           

Fruit and

            

Subtotal

    

LIFO

          
   

Vegetable

    

Snack

    

Other

    

(FIFO basis)

    

Impact

    

Total

  

Fiscal Year 2025:

                                                

Net sales (1)

   $ 1,439,029     $ 107,373     $ 32,485     $ 1,578,887     $ -     $ 1,578,887  

Cost of products sold

     1,282,833       87,492       23,887       1,394,212       34,474       1,428,686  

Selling and advertising expense (2)

     30,842       2,680       428       33,950       -       33,950  

General and administrative expense

     27,440       3,243       10,826       41,509       -       41,509  

Other segment items (3)

     (3,214 )     -       (9,772 )     (12,986 )     -       (12,986 )

Interest expense, net of interest income

     30,370       2,251       624       33,245       -       33,245  

Earnings (loss) before income taxes

   $ 70,758     $ 11,707     $ 6,492     $ 88,957     $ (34,474 )   $ 54,483  

Income taxes

                                             13,259  

Net earnings

                                           $ 41,224  
                                                 

Additional segment disclosures:

                                                

Depreciation and amortization (4)

   $ 40,770     $ 3,388     $ 618     $ 44,776     $ -     $ 44,776  

Capital expenditures (5)

   $ 60,431     $ 1,117     $ -     $ 61,548     $ -     $ 61,548  

Total assets

   $ 1,433,773     $ 104,666     $ 2,246     $ 1,540,685     $ (359,256 )   $ 1,181,429  
                                                 

Fiscal Year 2024:

                                                

Net sales (1)

   $ 1,325,618     $ 100,835     $ 32,150     $ 1,458,603     $ -     $ 1,458,603  

Cost of products sold

     1,137,351       88,993       21,699       1,248,043       22,342       1,270,385  

Selling and advertising expense (2)

     30,843       3,011       369       34,223       -       34,223  

General and administrative expense

     30,331       3,011       13,644       46,986       -       46,986  

Other segment items (3)

     2,634       209       (12,853 )     (10,010 )     -       (10,010 )

Interest expense, net of interest income

     31,607       2,347       66       34,020       -       34,020  

Earnings (loss) before income taxes

   $ 92,852     $ 3,264     $ 9,225     $ 105,341     $ (22,342 )   $ 82,999  

Income taxes

                                             19,681  

Net earnings

                                           $ 63,318  
                                                 

Additional segment disclosures:

                                                

Depreciation and amortization (4)

   $ 39,364     $ 3,480     $ 634     $ 43,478     $ -     $ 43,478  

Capital expenditures (5)

   $ 42,089     $ 1,536     $ -     $ 43,625     $ -     $ 43,625  

Total assets

   $ 1,604,449     $ 100,627     $ 3,703     $ 1,708,779     $ (324,782 )   $ 1,383,997  
                                                 

Fiscal Year 2023:

                                                

Net sales (1)

   $ 1,374,468     $ 104,156     $ 30,728     $ 1,509,352     $ -     $ 1,509,352  

Cost of products sold

     1,151,397       100,272       21,753       1,273,422       131,611       1,405,033  

Selling and advertising expense (2)

     34,861       3,227       387       38,475       -       38,475  

General and administrative expense

     28,278       2,858       11,461       42,597       -       42,597  

Other segment items (3)

     9,693       554       (15,118 )     (4,871 )     -       (4,871 )

Interest expense, net of interest income

     12,684       1,180       461       14,325       -       14,325  

Earnings (loss) before income taxes

   $ 137,555     $ (3,935 )   $ 11,784     $ 145,404     $ (131,611 )   $ 13,793  

Income taxes

                                             4,562  

Net earnings

                                           $ 9,231  
                                                 

Additional segment disclosures:

                                                

Depreciation and amortization (4)

   $ 37,359     $ 3,024     $ 558     $ 40,941     $ -     $ 40,941  

Capital expenditures (5)

   $ 57,593     $ 13,406     $ 806     $ 71,805     $ -     $ 71,805  

Total assets

   $ 1,415,857     $ 95,658     $ 3,646     $ 1,515,161     $ (302,440 )   $ 1,212,721  

 

The following footnotes should be read in connection with the segment disclosure table shown on the previous page:

 

 

(1)

Information received by the CODM as part of net sales includes trade promotion costs representing amounts paid to retailers for shelf space, to obtain favorable display positions, and to offer temporary price reductions for the sale of the Company's products to consumers.

 

 

(2)

Information received by the CODM as part of selling and advertising expenses includes direct selling expenses such as brokerage costs, sales force employee compensation, and costs incurred to execute sales to customers.

 

 

(3)

Other segment items include plant restructuring, other operating (income) expense, net and other non-operating income, each of which are not considered to be significant segment expenses. These amounts are combined into one line for purposes of reconciling to the reported measure of earnings (loss) before income taxes.

 

 

(4)

Depreciation and amortization are required to be disclosed as both amounts are included in the reported measure of earnings (loss) before income taxes. The amounts are not considered to be significant segment expenses and therefore are shown separately as an additional segment disclosure. Depreciation and amortization are included within the line items for cost of products sold and general and administrative expense.

 

 

(5)

Capital expenditures represent fixed asset additions recorded during the respective fiscal year, regardless of payment timing. The total shown for each fiscal year reconciles to amounts reported on the Consolidated Statements of Cash Flows within the sections for net cash used in investing activities and supplemental noncash transaction information.

 

The following table sets forth United States and international net sales (in thousands, except percentages):

 

   

Fiscal Year:

  
   

2025

    

2024

    

2023

  

Net sales:

                        

United States

   $ 1,492,266     $ 1,374,774     $ 1,408,710  

International

     86,621       83,829       100,642  

Total net sales

   $ 1,578,887     $ 1,458,603     $ 1,509,352  
                         

As a percentage of net sales:

                        

United States

     94.5 %     94.3 %     93.3 %

International

     5.5 %     5.7 %     6.7 %

Total

     100.0 %     100.0 %     100.0 %

 

For fiscal years 2025, 2024 and 2023, one customer (Customer A) accounted for approximately 16%, 14%, and 14% of net sales, respectively. As of March 31, 2025 and March 31, 2024, Customer A accounted for approximately 24% and 25% of trade receivables, respectively. No other customers accounted for more than 10% of the Company’s net sales or trade receivables for the respective periods. The Company does not have any long-lived assets located outside of the United Sates.