| Segments |
4. SEGMENTS Our CODM evaluates operating performance based on net income adjusted for items impacting comparability as detailed below. The CODM uses adjusted net income for the annual budgeting and monthly forecasting process. The CODM considers budget-to-current forecast and prior forecast-to-current forecast variances for adjusted net income on a period basis for evaluating performance and making decisions about allocating capital and other resources. Detailed below are expense items impacting comparability in the adjusted reports used by the CODM (amounts in thousands):
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For the Twelve Weeks Ended |
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For the Twenty-Eight Weeks Ended |
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Footnote |
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July 12, 2025 |
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July 13, 2024 |
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July 12, 2025 |
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July 13, 2024 |
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Disclosure |
Business process improvement costs |
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$ |
471 |
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$ |
1,606 |
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$ |
1,362 |
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$ |
5,289 |
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Note 1 |
Restructuring charges |
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— |
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6,805 |
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573 |
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7,403 |
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Note 3 |
Restructuring-related implementation costs |
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2,896 |
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1,635 |
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7,184 |
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2,979 |
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Note 3 |
Plant closure costs and impairment of assets |
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— |
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1,377 |
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7,397 |
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5,377 |
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Note 1 |
Acquisition-related costs |
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871 |
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— |
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14,635 |
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— |
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Note 5 |
Legal settlements and related costs |
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205 |
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— |
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|
902 |
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— |
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Note 16 |
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$ |
4,443 |
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$ |
11,423 |
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$ |
32,053 |
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$ |
21,048 |
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Our single reportable segment net sales, net income, and significant expenses are as follows (amounts in thousands):
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For the Twelve Weeks Ended |
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For the Twenty-Eight Weeks Ended |
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July 12, 2025 |
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July 13, 2024 |
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July 12, 2025 |
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July 13, 2024 |
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Net sales |
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$ |
1,242,835 |
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$ |
1,224,983 |
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$ |
2,797,065 |
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$ |
2,801,801 |
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Materials, supplies, labor and other production costs
(exclusive of depreciation and amortization) |
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Ingredients |
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301,878 |
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310,841 |
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684,506 |
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724,760 |
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Workforce-related costs |
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173,421 |
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175,201 |
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401,333 |
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400,734 |
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Packaging |
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45,082 |
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44,286 |
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103,777 |
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102,825 |
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Other(1) |
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115,679 |
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83,034 |
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224,790 |
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182,229 |
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Total materials, supplies, labor and other production costs
(exclusive of depreciation and amortization) |
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636,060 |
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613,362 |
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1,414,406 |
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1,410,548 |
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Selling, distribution, and administrative expenses |
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Workforce-related costs |
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156,011 |
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140,685 |
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358,670 |
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328,499 |
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Distributor distribution fees |
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144,398 |
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163,185 |
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337,325 |
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380,172 |
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Other(2) |
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173,128 |
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167,530 |
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411,055 |
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387,980 |
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Total selling, distribution, and administrative expenses |
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473,537 |
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471,400 |
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1,107,050 |
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1,096,651 |
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Depreciation |
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30,143 |
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29,500 |
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68,809 |
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67,932 |
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Amortization |
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9,660 |
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7,263 |
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20,241 |
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16,979 |
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Right-of-use financing lease amortization |
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23 |
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|
64 |
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44 |
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|
151 |
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Plant closure costs and impairment of assets |
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— |
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1,377 |
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7,397 |
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5,377 |
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Restructuring charges |
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— |
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6,805 |
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|
573 |
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7,403 |
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Interest expense |
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18,876 |
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8,978 |
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38,550 |
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20,279 |
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Interest income |
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(3,840 |
) |
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(4,070 |
) |
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(9,466 |
) |
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(9,760 |
) |
Other components of net periodic pension and postretirement
benefits credit |
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(88 |
) |
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(118 |
) |
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(205 |
) |
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(276 |
) |
Income before income taxes |
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78,464 |
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90,422 |
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149,666 |
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186,517 |
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Income tax expense |
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20,099 |
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|
23,455 |
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|
38,303 |
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|
46,507 |
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Net income |
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$ |
58,365 |
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$ |
66,967 |
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$ |
111,363 |
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$ |
140,010 |
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(1)The Other line item includes utilities, repairs and maintenance, rent, and other production costs. (2)The Other line item includes transportation, marketing, legal, consulting, rent, computer maintenance, and other overhead expenses. |