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Note O - Segment Reporting
 12 Months Ended
Sep. 27, 2014
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, 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 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 27,

   

September 28,

   

September 29,

 
   

2014

   

2013

   

2012

 
   

(52 weeks)

   

(52 weeks)

   

(53 weeks)

 
    (in thousands)  

Sales to External Customers:

                       

Food Service

                       

Soft pretzels

  $ 164,680     $ 145,026     $ 118,014  

Frozen juices and ices

    53,888       48,831       53,813  

Churros

    55,929       56,099       45,974  

Handhelds

    24,248       26,488       27,818  

Bakery

    281,556       274,783       266,192  

Other

    11,597       9,532       9,451  

Total Food Service

  $ 591,898     $ 560,759     $ 521,262  
                         

Retail Supermarket

                       

Soft pretzels

  $ 34,830     $ 34,597     $ 33,842  

Frozen juices and ices

    59,404       48,077       53,673  

Handhelds

    21,354       22,528       24,358  

Coupon redemption

    (3,807 )     (3,681 )     (3,222 )

Other

    863       818       1,217  

Total Retail Supermarket

  $ 112,644     $ 102,339     $ 109,868  
                         

Frozen Beverages

                       

Beverages

  $ 133,283     $ 132,274     $ 135,436  

Repair and maintenance service

    59,805       52,813       49,115  

Machines sales

    20,224       17,376       13,136  

Other

    1,597       2,122       1,979  

Total Frozen Beverages

  $ 214,909     $ 204,585     $ 199,666  
                         

Consolidated Sales

  $ 919,451     $ 867,683     $ 830,796  
                         

Depreciation and Amortization:

                       

Food Service

  $ 20,983     $ 18,999     $ 17,287  

Retail Supermarket

    391       31       23  

Frozen Beverages

    15,719       14,522       13,627  

Total Depreciation and Amortization

  $ 37,093     $ 33,552     $ 30,937  
                         

Operating Income:

                       

Food Service

  $ 73,731     $ 65,907     $ 49,770  

Retail Supermarket

    11,201       8,594       13,316  

Frozen Beverages

    21,916       22,903       21,881  

Total Operating Income

  $ 106,848     $ 97,404     $ 84,967  
                         

Capital Expenditures:

                       

Food Service

  $ 21,620     $ 19,097     $ 28,504  

Retail Supermarket

    -       -       -  

Frozen Beverages

    17,211       16,724       14,296  

Total Capital Expenditures

  $ 38,831     $ 35,821     $ 42,800  
                         

Assets:

                       

Food Service

  $ 524,272     $ 486,015     $ 453,509  

Retail Supermarket

    18,561       6,067       6,098  

Frozen Beverages

    161,940       153,579       143,437  

Total Assets

  $ 704,773     $ 645,661     $ 603,044