Business Segments

9 Months Ended

Sep. 26, 2015

Business Segments:

Business Segments

9.Business Segments

Our operations consist of two reportable segments: (1) frozen products and (2) snack products.  The frozen products segment produces frozen fruits, vegetables, beverages, blends, desserts, biscuits and other frozen snacks for sale primarily to groceries, club stores, mass merchandisers and industrial customers.  The snack products segment produces potato chips, kettle chips, potato crisps, potato skins, pellet snacks, sheeted dough products, cereal, popcorn 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 and nine months ended September 26, 2015 and September 27, 2014 (in thousands):

	Frozen Products			Snack Products		Consolidated
Quarter ended September 26, 2015
Net revenues from external customers	$	40,466		$	29,399	$	69,865
Depreciation and amortization included in segment gross profit	601			640		1,241
Segment gross profit	4,386			4,314		8,700
Quarter ended September 27, 2014
Net revenues from external customers	$	46,123		$	26,433	$	72,556
Depreciation and amortization included in segment gross profit	562			690		1,252
Segment gross profit	7,846			5,080		12,926
Nine months ended September 26, 2015
Net revenues from external customers	$	126,715		$	87,179	$	213,894
Depreciation and amortization included in segment gross profit	1,726			1,847		3,573
Segment gross profit	(511		)	13,536		13,025
Nine months ended September 27, 2014
Net revenues from external customers	$	133,916		$	78,001	$	211,917
Depreciation and amortization included in segment gross profit	1,541			1,898		3,439
Segment gross profit	22,788			15,157		37,945

The following table reconciles reportable segment gross profit to our consolidated income (loss) before income taxes for the quarters and nine months ended September 26, 2015 and September 27, 2014 (in thousands):

	Quarters Ended						Nine Months Ended
	September 26, 2015			September 27, 2014			September 26, 2015			September 27, 2014
Segment gross profit	$	8,700		$	12,926		$	13,025		$	37,945
Unallocated amounts:
Operating expenses	(9,233		)	(7,570		)	(37,879		)	(24,992		)
Interest expense, net	(1,742		)	(646		)	(3,400		)	(1,900		)
Income (loss) before income taxes	$	(2,275	)	$	4,710		$	(28,254	)	$	11,053