Business Segments

3 Months Ended

Mar. 30, 2013

Business Segments

Business Segments

7. Business Segments

Our operations consist of two reportable segments: Snack Products and Frozen Products.  The snack products segment produces potato chips, kettle chips, potato crisps, potato skins, pellet snacks, and extruded product for sale primarily to snack food distributors and retailers.  The frozen products segment produces frozen berries and frozen beverages, for sale primarily to club stores, groceries and mass merchandisers.  Our reportable segments offer different products and services.  The majority of our revenues are attributable to external customers in the United States.  We sell to external customers internationally, however the revenues attributable to those customers are immaterial.  All of our assets are located in the United States.

We do not allocate assets, selling, general and administrative expenses, income taxes or other income and expense to segments.  The following tables present information about our reportable operating segments for the quarters ended March 30, 2013 and March 31, 2012 (in thousands):

	Snack  Products		Frozen  Products		Consolidated
Quarter ended March 30, 2013
Net revenues from external customers	$	21,901	$	26,636	$	48,537
Depreciation and amortization included in segment gross profit	495		248		743
Segment gross profit	3,877		4,948		8,825
Goodwill	5,986		5,630		11,616
Quarter ended March 31, 2012
Net revenues from external customers	$	24,209	$	22,811	$	47,020
Depreciation and amortization included in segment gross profit	490		216		706
Segment gross profit	5,095		4,250		9,345
Goodwill	5,986		5,630		11,616

The following table reconciles reportable segment gross profit to our consolidated income before income tax provision for the quarters ended March 30, 2013 and March 31, 2012 (in thousands):

	Quarter Ended
	March 30,  2013		March 31,  2012
Segment gross profit	$	8,825	$	9,345
Unallocated amounts:
Operating expenses	6,957		6,501
Interest expense, net	220		230
Income before income tax provision	$	1,648	$	2,614