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Note O - Segment Reporting
 12 Months Ended
Sep. 29, 2012
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; fast food outlets; stadiums and sports arenas; leisure and theme parks; convenience stores; movie theatres; warehouse club stores; schools, colleges and other institutions. 

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, 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 29,
2012
   
September 24,
2011
   
September 25,
2010
 
         
(in thousands)
       
Sales to External Customers:
                 
Food Service
                 
Soft pretzels
  $ 118,014     $ 103,943     $ 100,694  
Frozen juices and ices
    53,813       49,740       47,273  
Churros
    45,974       41,583       31,732  
Handhelds
    27,818       8,865       -  
Bakery
    266,192       241,288       234,032  
Other
    9,451       18,143       24,075  
    $ 521,262     $ 463,562     $ 437,806  
                         
Retail Supermarket
                       
Soft pretzels
  $ 33,842     $ 32,044     $ 30,463  
Frozen juices and ices
    53,673       51,940       48,288  
Handhelds
    24,358       9,424       -  
Coupon redemption
    (3,222 )     (3,857 )     (3,399 )
Other
    1,217       1,548       767  
    $ 109,868     $ 91,099     $ 76,119  
                         
Frozen Beverages
                       
Beverages
  $ 135,436     $ 133,372     $ 128,125  
Repair and maintenance service
    49,115       42,608       40,410  
Machines sales
    13,136       11,362       11,964  
Other
    1,979       2,068       2,279  
    $ 199,666     $ 189,410     $ 182,778  
                         
Consolidated Sales
  $ 830,796     $ 744,071     $ 696,703  
                         
Depreciation and Amortization:
                       
Food Service
  $ 17,287     $ 16,986     $ 17,252  
Retail Supermarket
    23       8       -  
Frozen Beverages
    13,627       13,240       12,600  
    $ 30,937     $ 30,234     $ 29,852  
                         
Operating Income:
                       
Food Service
  $ 49,770     $ 46,171     $ 50,220  
Retail Supermarket
    13,316       11,830       11,281  
Frozen Beverages
    21,881       18,582       15,661  
    $ 84,967     $ 76,583     $ 77,162  
                         
Capital Expenditures:
                       
Food Service
  $ 28,504     $ 14,905     $ 18,392  
Retail Supermarket
    -       -       -  
Frozen Beverages
    14,296       14,219       15,139  
    $ 42,800     $ 29,124     $ 33,531  
                         
Assets:
                       
Food Service
  $ 453,509     $ 405,927     $ 341,285  
Retail Supermarket
    6,098       3,579       2,731  
Frozen Beverages
    143,437       141,310       139,978  
    $ 603,044     $ 550,816     $ 483,994