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Note 15 - Segment Reporting
 12 Months Ended
Sep. 24, 2011
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.  The Restaurant Group, operator of two BAVARIAN PRETZEL BAKERY retail stores with sales of $633,000 in the year ended September 24, 2011, has been included in Food Service because it no longer meets the quantitative thresholds under the guidance for reportable segments to be shown separately. 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; 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, dough enrobed handheld products including PATIO burritos, TIO PEPE’S Churros and CALIFORNIA CHURROS.  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, PARROT ICE and ARCTIC BLAST 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 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 24,
   
September 25,
   
September 26,
 
   
2011
   
2010
   
2009
 
         
(in thousands)
       
Sales to External Customers:
                 
Food Service
                 
Soft pretzels
  $ 103,943     $ 100,694     $ 99,471  
Frozen juices and ices
    49,740       47,273       50,272  
Churros
    41,583       31,732       29,404  
Handhelds
    8,865       -       -  
Bakery
    241,288       234,032       229,371  
Other
    18,143       24,075       10,492  
    $ 463,562     $ 437,806     $ 419,010  
                         
Retail Supermarket
                       
Soft pretzels
  $ 32,044     $ 30,463     $ 30,506  
Frozen juices and ices
    51,940       48,288       37,819  
Handhelds
    9,424       -       -  
Coupon redemption
    (3,857 )     (3,399 )     (3,753 )
Other
    1,548       767       586  
    $ 91,099     $ 76,119     $ 65,158  
                         
Frozen Beverages
                       
Beverages
  $ 133,372     $ 128,125     $ 112,983  
Repair and maintenance service
    42,608       40,410       42,013  
Machines sales
    11,362       11,964       11,729  
Other
    2,068       2,279       2,154  
    $ 189,410     $ 182,778     $ 168,879  
                         
Consolidated Sales
  $ 744,071     $ 696,703     $ 653,047  
                         
Depreciation and Amortization:
                       
Food Service
  $ 16,994     $ 17,252     $ 16,563  
Retail Supermarket
    -       -       -  
Frozen Beverages
    13,240       12,600       11,190  
    $ 30,234     $ 29,852     $ 27,753  
                         
Operating Income:
                       
Food Service
  $ 46,171     $ 50,220     $ 44,960  
Retail Supermarket
    11,830       11,281       7,442  
Frozen Beverages
    18,582       15,661       14,536  
    $ 76,583     $ 77,162     $ 66,938  
                         
Capital Expenditures:
                       
Food Service
  $ 14,905     $ 18,392     $ 14,979  
Retail Supermarket
    -       -       -  
Frozen Beverages
    14,219       15,139       12,211  
    $ 29,124     $ 33,531     $ 27,190  
                         
Assets:
                       
Food Service
  $ 405,927     $ 341,285     $ 307,814  
Retail Supermarket
    3,579       2,731       2,731  
Frozen Beverages
    141,310       139,978       129,282  
    $ 550,816     $ 483,994     $ 439,827