Note 9

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.

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 (loss). These segments are described below

Food Service

The primary products sold by the food service group are soft pretzels, frozen juice treats and desserts, churros, dough enrobed handheld products and baked goods. Our customers in the food service industry include snack bars and food stands in chain, department and discount stores; malls and shopping centers; 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, PHILLY SWIRL cups and sticks, 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 and related products 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. 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:

	Three months ended						Six months ended
	March 26, 2016			March 28, 2015			March 26, 2016			March 28, 2015
	(unaudited)
	(in thousands)
Sales to External Customers:
Food Service
Soft pretzels	$	42,834		$	41,099		$	81,533		$	81,817
Frozen juices and ices		10,971			11,072			19,286			19,273
Churros		13,697			14,622			27,633			27,589
Handhelds		7,178			5,044			13,324			10,202
Bakery		70,424			70,791			147,025			145,222
Other		3,619			2,634			6,674			4,720
Total Food Service	$	148,723		$	145,262		$	295,475		$	288,823

Retail Supermarket
Soft pretzels	$	9,735		$	10,829		$	18,475		$	20,029
Frozen juices and ices		12,907			13,722			21,971			22,877
Handhelds		3,433			4,569			7,308			9,448
Coupon redemption		(511	)		(927	)		(1,085	)		(2,000	)
Other		1,136			340			1,291			566
Total Retail Supermarket	$	26,700		$	28,533		$	47,960		$	50,920

Frozen Beverages
Beverages	$	30,544		$	28,778		$	58,614		$	54,288
Repair and maintenance service		16,944			15,723			34,707			31,033
Machines sales		6,237			6,328			14,969			12,075
Other		562			384			835			621
Total Frozen Beverages	$	54,287		$	51,213		$	109,125		$	98,017

Consolidated Sales	$	229,710		$	225,008		$	452,560		$	437,760

Depreciation and Amortization:
Food Service	$	5,684		$	5,325		$	11,069		$	10,515
Retail Supermarket		288			250			574			566
Frozen Beverages		4,073			3,866			8,027			7,775
Total Depreciation and Amortization	$	10,045		$	9,441		$	19,670		$	18,856

Operating Income :
Food Service	$	18,520		$	15,649		$	34,422		$	31,142
Retail Supermarket		2,469			2,535			3,559			3,201
Frozen Beverages		2,290			3,621			3,658			4,072
Total Operating Income	$	23,279		$	21,805		$	41,639		$	38,415

Capital Expenditures:
Food Service	$	5,425		$	4,617		$	13,509		$	10,750
Retail Supermarket		43		$	39			199			62
Frozen Beverages		4,963			3,603			10,027			7,121
Total Capital Expenditures		10,431			8,259		$	23,735		$	17,933

Assets:
Food Service	$	545,344		$	522,080		$	545,344		$	522,080
Retail Supermarket		24,432			25,145			24,432			25,145
Frozen Beverages		175,331			162,088			175,331			162,088
Total Assets	$	745,107		$	709,313		$	745,107		$	709,313