Note O - Segment Reporting

12 Months Ended

Sep. 28, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE O – SEGMENT REPORTING

We principally sell our products to the food service and retail supermarket industries. Sales and results of our frozen beverages business are monitored separately from the balance of our food service business because of different distribution and capital requirements. We maintain separate and discrete financial information for the three operating segments mentioned above which is available to our Chief Operating Decision Makers. We have applied no aggregate criteria to any of these operating segments in order to determine reportable segments. Our three reportable segments are Food Service, Retail Supermarkets and Frozen Beverages. All inter-segment net sales and expenses have been eliminated in computing net sales and operating income. These segments are described below.

Food Service

The primary products sold by the food service segment are soft pretzels, frozen juice treats and desserts, churros, dough enrobed handheld products and baked goods. Our customers in the food service segment include snack bars and food stands in chain, department and discount stores; malls and shopping centers; casual dining restaurants; fast food outlets; stadiums and sports arenas; leisure and theme parks; convenience stores; movie theatres; warehouse club stores; schools, colleges and other institutions. Within the food service industry, our products are purchased by the consumer primarily for consumption at the point-of-sale.

Retail Supermarkets

The primary products sold to the retail supermarket channel are soft pretzel products – including SUPERPRETZEL, frozen juice treats and desserts including LUIGI’S Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, WHOLE FRUIT frozen fruit bars and sorbet, ICEE Squeeze-Up Tubes and dough enrobed handheld products including PATIO burritos. Within the retail supermarket channel, our frozen and prepackaged products are purchased by the consumer for consumption at home.

Frozen Beverages

We sell frozen beverages to the food service industry primarily under the names ICEE, SLUSH PUPPIE and PARROT ICE in the United States, Mexico and Canada. We also provide repair and maintenance service to customers for customers’ owned equipment.

The Chief Operating Decision Maker for Food Service and Retail Supermarkets and the Chief Operating Decision Maker for Frozen Beverages monthly review detailed operating income statements and sales reports in order to assess performance and allocate resources to each individual segment. Sales is considered to be the one and only key variable monitored by the Chief Operating Decision Makers and management when determining each segment’s and the company’s financial condition and operating performance. In addition, the Chief Operating Decision Makers review and evaluate depreciation, capital spending and assets of each segment on a quarterly basis to monitor cash flow and asset needs of each segment. Information regarding the operations in these three reportable segments is as follows:

	Fiscal year ended
	September 28, 2013			September 29, 2012			September 24, 2011
				(in thousands)
Sales to External Customers:
Food Service
Soft pretzels	$	145,026		$	118,014		$	103,943
Frozen juices and ices		48,831			53,813			49,740
Churros		56,099			45,974			41,583
Handhelds		26,488			27,818			8,865
Bakery		274,783			266,192			241,288
Other		9,532			9,451			18,143
	$	560,759		$	521,262		$	463,562
Retail Supermarket
Soft pretzels	$	34,597		$	33,842		$	32,044
Frozen juices and ices		48,077			53,673			51,940
Handhelds		22,528			24,358			9,424
Coupon redemption		(3,681	)		(3,222	)		(3,857	)
Other		818			1,217			1,548
	$	102,339		$	109,868		$	91,099
Frozen Beverages
Beverages	$	132,274		$	135,436		$	133,372
Repair and maintenance service		52,813			49,115			42,608
Machines sales		17,376			13,136			11,362
Other		2,122			1,979			2,068
	$	204,585		$	199,666		$	189,410
Consolidated Sales	$	867,683		$	830,796		$	744,071
Depreciation and Amortization:
Food Service	$	18,999		$	17,287		$	16,986
Retail Supermarket		31			23			8
Frozen Beverages		14,522			13,627			13,240
	$	33,552		$	30,937		$	30,234
Operating Income:
Food Service	$	65,907		$	49,770		$	46,171
Retail Supermarket		8,594			13,316			11,830
Frozen Beverages		22,903			21,881			18,582
	$	97,404		$	84,967		$	76,583
Capital Expenditures:
Food Service	$	19,097		$	28,504		$	14,905
Retail Supermarket		-			-			-
Frozen Beverages		16,724			14,296			14,219
	$	35,821		$	42,800		$	29,124
Assets:
Food Service	$	486,015		$	453,509		$	405,927
Retail Supermarket		6,067			6,098			3,579
Frozen Beverages		153,579			143,437			141,310
	$	645,661		$	603,044		$	550,816