20. SEGMENT REPORTING

The company’s segments are currently separated primarily by the different delivery methods each segment uses for its respective product deliveries. The DSD Segment’s products are delivered fresh to customers through a network of IDPs who are incentivized to grow sales and to build equity in their distributorships. The Warehouse Segment ships fresh and frozen products to customers’ warehouses nationwide. Our bakeries fall into either the DSD Segment or Warehouse Segment depending on the primary method of delivery used to sell that bakery’s products. The bakeries within each segment produce products that are sold externally and internally. Internal sales are to bakeries within the producing bakery’s segment or to the other segment. Sales between bakeries are transferred at standard cost.

The company evaluates each segment’s performance based on income or loss before interest and income taxes, excluding unallocated expenses and charges, which the company’s management deems to be an overall corporate cost or a cost not reflective of the segment’s core operating businesses.

Information regarding the operations in these reportable segments is as follows (amounts in thousands):

	For the Twelve Weeks Ended						For the Twenty-Eight Weeks Ended
	July 14, 2018			July 15, 2017			July 14, 2018			July 15, 2017
Sales:
DSD Segment	$	818,998		$	806,296		$	1,860,367		$	1,825,212
Warehouse Segment		187,078			173,844			432,891			411,521
Eliminations:
Sales from Warehouse Segment to DSD Segment		(42,421	)		(40,097	)		(97,265	)		(89,985	)
Sales from DSD Segment to Warehouse Segment		(22,372	)		(13,404	)		(48,257	)		(32,460	)
	$	941,283		$	926,639		$	2,147,736		$	2,114,288
Gain on divestiture:
Warehouse Segment	$	—		$	—		$	—		$	28,875
	$	—		$	—		$	—		$	28,875
Multi-employer pension plan withdrawal costs:
DSD Segment	$	—		$	—		$	2,322		$	—
	$	—		$	—		$	2,322		$	—
Loss on inferior ingredients:
DSD Segment	$	3,884		$	—		$	3,884		$	—
	$	3,884		$	—		$	3,884		$	—
Restructuring charges:
DSD Segment	$	694		$	—		$	1,898		$	—
Warehouse Segment		49			—			76			—
Unallocated corporate costs		58			—			86			—
	$	801		$	—		$	2,060		$	—
Impairment of assets:
DSD Segment	$	—		$	—		$	2,483		$	—
	$	—		$	—		$	2,483		$	—
Depreciation and amortization:
DSD Segment	$	30,127		$	29,355		$	67,597		$	70,417
Warehouse Segment		4,902			4,761			11,527			11,072
Unallocated corporate costs(1)		69			12			163			(173	)
	$	35,098		$	34,128		$	79,287		$	81,316
Income from operations:
DSD Segment	$	54,481		$	79,465		$	138,906		$	166,726
Warehouse Segment		11,135			11,589			25,697			56,284
Unallocated corporate costs(2)		(13,352	)		(22,331	)		(35,724	)		(56,085	)
	$	52,264		$	68,723		$	128,879		$	166,925
Interest expense	$	(8,214	)	$	(8,436	)	$	(19,210	)	$	(20,061	)
Interest income	$	6,466		$	5,158		$	14,561		$	11,735
Pension plan settlement loss	$	(1,035	)	$	—		$	(5,703	)	$	—
Other components of net periodic pension and postretirement benefits credit	$	298		$	1,443		$	1,033		$	3,366
Income before income taxes	$	49,779		$	66,888		$	119,560		$	161,965

The table below presents the assets by segment (amounts in thousands):

Assets:	July 14, 2018		December 30, 2017
DSD Segment	$	2,296,462	$	2,270,179
Warehouse Segment		303,263		296,157
Other (3)		117,582		93,388
Total assets	$	2,717,307	$	2,659,724

(1)	Represents costs allocated to the company’s corporate head office.

(2)	Represents costs allocated to the company’s corporate head office and pension plan settlement loss.

(3)	Represents the company’s corporate head office assets, including primarily cash and cash equivalents and deferred taxes. Certain assets were reclassified from the unallocated corporate head office to the DSD Segment during the first quarter of our fiscal 2018.

Sales by product category in each reportable segment are as follows for the twelve and twenty-eight weeks ended July 14, 2018 and July 15, 2017, respectively (amounts in thousands):

	For the Twelve Weeks Ended						For the Twelve Weeks Ended
	July 14, 2018						July 15, 2017
	DSD Segment		Warehouse Segment		Total		DSD Segment		Warehouse Segment		Total
Branded retail	$	521,946	$	35,772	$	557,718	$	514,617	$	34,972	$	549,589
Store branded retail		121,507		28,058		149,565		119,972		24,466		144,438
Non-retail and other		153,173		80,827		234,000		158,303		74,309		232,612
Total	$	796,626	$	144,657	$	941,283	$	792,892	$	133,747	$	926,639

	For the Twenty-Eight Weeks Ended						For the Twenty-Eight Weeks Ended
	July 14, 2018						July 15, 2017
	DSD Segment		Warehouse Segment		Total		DSD Segment		Warehouse Segment		Total
Branded retail	$	1,185,740	$	83,286	$	1,269,026	$	1,160,558	$	84,089	$	1,244,647
Store branded retail		258,217		63,951		322,168		257,505		59,157		316,662
Non-retail and other		368,153		188,389		556,542		374,689		178,290		552,979
Total	$	1,812,110	$	335,626	$	2,147,736	$	1,792,752	$	321,536	$	2,114,288

The tables above present certain sales by category that have been reclassified from amounts previously reported.