| Segment Reporting |
Segment Reporting The Company has two reportable segments: Sweet Baked Goods and In-Store Bakery. The Company’s Sweet Baked Goods segment consists of sweet baked goods that are sold under the Hostess® and Dolly Madison® brands, Hostess® branded bread and buns and frozen retail products. The operations attributed to assets acquired from Aryzta are included in the Sweet Baked Goods segment. The In-Store Bakery segment consists of Superior® and Hostess® branded products sold through the in-store bakery section of grocery and club stores. We evaluate performance and allocate resources based on net revenue and gross profit. Information regarding the operations of these reportable segments is as follows: | | | | | | | | | | | | | | | | | (In thousands) | Three Months Ended
June 30,
2018 | | Three Months Ended
June 30,
2017 | | Six Months Ended June 30, 2018 | | Six Months Ended June 30, 2017 | |
| |
| | | | | Net revenue: | | | | | | | | Sweet Baked Goods | $ | 204,237 |
| | $ | 191,695 |
| | $ | 403,529 |
| | $ | 366,488 |
| In-Store Bakery | 11,612 |
| | 11,483 |
| | 21,063 |
| | 21,228 |
| Net revenue | $ | 215,849 |
| | $ | 203,178 |
| | $ | 424,592 |
| | $ | 387,716 |
| | | | | | | | | Depreciation and amortization: | | | | | | | | Sweet Baked Goods | $ | 9,857 |
| | $ | 8,899 |
| | $ | 19,251 |
| | $ | 17,522 |
| In-Store Bakery | 700 |
| | 689 |
| | 1,397 |
| | 1,332 |
| Depreciation and amortization | $ | 10,557 |
| | $ | 9,588 |
| | $ | 20,648 |
| | $ | 18,854 |
| | | | | | | | | Gross profit: | | | | | | | | Sweet Baked Goods | $ | 64,359 |
| | $ | 85,486 |
| | $ | 133,797 |
| | $ | 162,268 |
| In-Store Bakery | 2,498 |
| | 2,958 |
| | 4,301 |
| | 5,472 |
| Gross profit | $ | 66,857 |
| | $ | 88,444 |
| | $ | 138,098 |
| | $ | 167,740 |
| | | | | | | | | Capital expenditures (1): | | | | | | | | Sweet Baked Goods | $ | 13,432 |
| | $ | 7,662 |
| | $ | 22,598 |
| | $ | 15,645 |
| In-Store Bakery | 164 |
| | 167 |
| | 217 |
| | 438 |
| Capital expenditures | $ | 13,596 |
| | $ | 7,829 |
| | $ | 22,815 |
| | $ | 16,083 |
|
| | (1) | Capital expenditures consists of purchases of property and equipment and acquisition and development of software assets paid in cash or acquired through accounts payable during the three and six months ended June 30, 2018 and 2017. |
Total assets by reportable segment are as follows: | | | | | | | | | | (In thousands) | June 30,
2018 | | | December 31,
2017 |
|
| | |
| Total segment assets: | | | | | Sweet Baked Goods | $ | 2,893,075 |
| | | $ | 2,884,642 |
| In-Store Bakery | 89,554 |
| | | 81,633 |
| Total segment assets | $ | 2,982,629 |
| | | $ | 2,966,275 |
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