Business Segments

3 Months Ended

Mar. 28, 2015

Business Segments and Significant Customers:

Business Segments

8.Business Segments

Our operations consist of two reportable segments: (1) frozen products and (2) snack products.  The frozen products segment produces frozen fruits, vegetables and beverages for sale primarily to groceries, club stores and mass merchandisers.  The snack products segment produces potato chips, kettle chips, potato crisps, potato skins, pellet snacks, sheeted dough products, cereal 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 also sell to external customers internationally; however, the revenues attributable to such 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 ended March 28, 2015 and March 29, 2014 (in thousands):

	Frozen Products			Snack Products		Consolidated
Quarter ended March 28, 2015
Net revenues from external customers	$	51,349		$	26,258	$	77,607
Depreciation and amortization included in segment gross profit	556			606		1,162
Segment gross profit	(7,489		)	3,789		(3,700		)
Quarter ended March 29, 2014
Net revenues from external customers	$	43,655		$	23,854	$	67,509
Depreciation and amortization included in segment gross profit	475			577		1,052
Segment gross profit	7,844			3,719		11,563

The following table reconciles reportable segment gross profit to our consolidated income (loss) before income taxes for the quarters ended March 28, 2015 and March 29, 2014 (in thousands):

	Quarter Ended
	March 28, 2015			March 29, 2014
Segment gross profit	$	(3,700	)	$	11,563
Unallocated amounts:
Operating expenses	18,429			8,398
Interest expense, net	730			670
Income (loss) before income taxes	$	(22,859	)	$	2,495