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 Forty Weeks Ended
	October 6, 2018			October 7, 2017			October 6, 2018			October 7, 2017
Sales:
DSD Segment	$	799,271		$	803,153		$	2,659,639		$	2,628,365
Warehouse Segment		182,639			185,219			615,530			596,740
Eliminations:
Sales from Warehouse Segment to DSD Segment		(39,443	)		(39,652	)		(136,708	)		(129,637	)
Sales from DSD Segment to Warehouse Segment		(19,018	)		(15,898	)		(67,276	)		(48,358	)
	$	923,449		$	932,822		$	3,071,185		$	3,047,110
Gain on divestiture:
Warehouse Segment	$	—		$	—		$	—		$	28,875
	$	—		$	—		$	—		$	28,875
Multi-employer pension plan withdrawal costs:
DSD Segment	$	—		$	18,268		$	2,322		$	18,268
	$	—		$	18,268		$	2,322		$	18,268
Loss (recovery) on inferior ingredients:
DSD Segment	$	(2,986	)	$	—		$	898		$	—
Warehouse Segment		1,095			—			1,095			—
	$	(1,891	)	$	—		$	1,993		$	—
Restructuring charges:
DSD Segment	$	289		$	76,625		$	2,187		$	76,625
Warehouse Segment		175			20,091			251			20,091
Unallocated corporate costs		33			3,833			119			3,833
	$	497		$	100,549		$	2,557		$	100,549
Impairment of assets:
DSD Segment	$	—		$	—		$	2,483		$	—
	$	—		$	—		$	2,483		$	—
Depreciation and amortization:
DSD Segment	$	27,676		$	28,286		$	95,273		$	98,703
Warehouse Segment		4,916			4,769			16,443			15,841
Unallocated corporate costs(1)		70			(83	)		233			(256	)
	$	32,662		$	32,972		$	111,949		$	114,288
Income from operations:
DSD Segment	$	58,819		$	(20,338	)	$	197,725		$	146,388
Warehouse Segment		5,866			(9,082	)		31,563			47,202
Unallocated corporate costs(2)		(11,235	)		(22,637	)		(46,959	)		(78,722	)
	$	53,450		$	(52,057	)	$	182,329		$	114,868
Interest expense	$	(8,180	)	$	(8,194	)	$	(27,390	)	$	(28,255	)
Interest income	$	6,615		$	5,464		$	21,176		$	17,199
Pension plan settlement loss	$	(930	)	$	(3,030	)	$	(6,633	)	$	(3,030	)
Other components of net periodic pension and postretirement benefits credit	$	171		$	1,321		$	1,204		$	4,687
Income before income taxes	$	51,126		$	(56,496	)	$	170,686		$	105,469

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

Assets:	October 6, 2018		December 30, 2017
DSD Segment	$	2,293,104	$	2,270,179
Warehouse Segment		301,249		296,157
Other (3)		98,784		93,388
Total assets	$	2,693,137	$	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 forty weeks ended October 6, 2018 and October 7, 2017, respectively (amounts in thousands):

	For the Twelve Weeks Ended						For the Twelve Weeks Ended
	October 6, 2018						October 7, 2017
	DSD Segment		Warehouse Segment		Total		DSD Segment		Warehouse Segment		Total
Branded retail	$	514,405	$	32,945	$	547,350	$	514,346	$	36,963	$	551,309
Store branded retail		114,581		26,418		140,999		110,853		27,803		138,656
Non-retail and other		151,267		83,833		235,100		162,056		80,801		242,857
Total	$	780,253	$	143,196	$	923,449	$	787,255	$	145,567	$	932,822

	For the Forty Weeks Ended						For the Forty Weeks Ended
	October 6, 2018						October 7, 2017
	DSD Segment		Warehouse Segment		Total		DSD Segment		Warehouse Segment		Total
Branded retail	$	1,700,461	$	116,192	$	1,816,653	$	1,674,871	$	121,052	$	1,795,923
Store branded retail		372,802		90,369		463,171		368,371		86,960		455,331
Non-retail and other		519,100		272,261		791,361		536,765		259,091		795,856
Total	$	2,592,363	$	478,822	$	3,071,185	$	2,580,007	$	467,103	$	3,047,110

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