Business Segments

6 Months Ended

Jun. 29, 2013

Business Segments

Business Segments

8. Business Segments

Our operations consist of two reportable segments: Frozen products and Snack products.  The Frozen segment produces frozen berries and frozen beverages, for sale primarily to club stores, groceries, and mass merchandisers and with the acquisition of WVFC, to other companies as raw ingredients.  The results of operations of WVFC have been consolidated into the Frozen segment since the WVFC Acquisition.  The Snack segment produces potato chips, kettle chips, potato crisps, potato skins, pellet snacks, sheeted dough products and extruded products for sale primarily to snack food distributors and retailers.  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 our reportable segments.  The following tables present information about our reportable segments for the quarters and six months ended June 29, 2013 and June 30, 2012 (in thousands):

	Frozen Products		Snack Products		Consolidated
Quarter ended June 29, 2013
Net revenues from external customers	$	27,921	$	25,756	$	53,677
Depreciation and amortization included in segment gross profit	287		524		811
Segment gross profit	4,446		4,690		9,136
Goodwill	8,777		5,986		14,763
Quarter ended June 30, 2012
Net revenues from external customers	$	23,194	$	24,822	$	48,016
Depreciation and amortization included in segment gross profit	217		501		718
Segment gross profit	3,810		5,394		9,204
Goodwill	5,630		5,986		11,616
Six months ended June 29, 2013
Net revenues from external customers	$	54,557	$	47,657	$	102,214
Depreciation and amortization included in segment gross profit	536		1,019		1,555
Segment gross profit	9,394		8,567		17,961
Goodwill	8,777		5,986		14,763
Six months ended June 30, 2012
Net revenues from external customers	$	46,005	$	49,031	$	95,036
Depreciation and amortization included in segment gross profit	433		991		1,424
Segment gross profit	8,060		10,489		18,549
Goodwill	5,630		5,986		11,616

The following table reconciles reportable segment gross profit to our consolidated income before income tax provision the quarters and six months ended June 29, 2013 and June 30, 2012 (in thousands):

	Quarters Ended						Six Months Ended
	June 29, 2013			June 30, 2012			June 29, 2013			June 30, 2012
Segment gross profit	$	9,136		$	9,204		$	17,961		$	18,549
Unallocated amounts:
Selling, general and administrative expenses	(6,889		)	(6,379		)	(13,846		)	(12,880		)
Interest expense, net	(171		)	(204		)	(391		)	(434		)
Income before income tax provision	$	2,076		$	2,621		$	3,724		$	5,235