Note 10 - Segment Information

3 Months Ended

Dec. 30, 2023

Segment Reporting Disclosure [Text Block]

Note 10

Segment Information

We principally sell our products to the food service and retail supermarket industries. Sales and results of our frozen beverages business are monitored separately from the balance of our food service business because of different distribution and capital requirements. We maintain separate and discrete financial information for the three operating segments mentioned below which is available to our Chief Operating Decision Maker.

Our reportable segments are Food Service, Retail Supermarkets and Frozen Beverages. All inter-segment net sales and expenses have been eliminated in computing net sales and operating income. These segments are described below.

Food Service

The primary products sold by the Food Service segment are soft pretzels, frozen novelties, churros, handheld products and baked goods. Our customers in the Food Service segment include snack bars and food stands in chain, department and discount stores; malls and shopping centers; casual dining restaurants; fast food and casual dining restaurants; stadiums and sports arenas; leisure and theme parks; convenience stores; movie theatres; warehouse club stores; schools, colleges and other institutions. Within the food service industry, our products are purchased by the consumer primarily for consumption at the point-of-sale or for take-away.

Retail Supermarkets

The primary products sold to the retail supermarket channel are soft pretzel products – including SUPERPRETZEL and AUNTIE ANNE’S, frozen novelties including LUIGI’S Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, WHOLE FRUIT frozen fruit bars and sorbet, DOGSTERS ice cream style treats for dogs, PHILLY SWIRL cups and sticks, ICEE Squeeze-Up Tubes and handheld products. Within the retail supermarket channel, our frozen and prepackaged products are purchased by the consumer for consumption at home.

Frozen Beverages

We sell frozen beverages to the foodservice industry primarily under the names ICEE, SLUSH PUPPIE and PARROT ICE in the United States, Mexico and Canada. We also provide repair and maintenance services to customers for customer-owned equipment.

The Chief Operating Decision Maker for Food Service, Retail Supermarkets and Frozen Beverages reviews monthly detailed operating income statements and sales reports in order to assess performance and allocate resources to each individual segment. Sales and operating income are key variables monitored by the Chief Operating Decision Maker and management when determining each segment’s and the company’s financial condition and operating performance. In addition, the Chief Operating Decision Maker reviews and evaluates depreciation, capital spending and assets of each segment on a quarterly basis to monitor cash flow and asset needs of each segment. Information regarding the operations in these three reportable segments is as follows:

	Three months ended
	December 30,			December 24,
	2023			2022
	(in thousands)
Sales to External Customers:
Food Service
Soft pretzels	$	50,128		$	52,223
Frozen novelties		21,050			21,765
Churros		28,061			25,757
Handhelds		22,047			23,572
Bakery		101,982			108,948
Other		5,341			6,032
Total Food Service	$	228,609		$	238,297

Retail Supermarket
Soft pretzels	$	18,447		$	14,485
Frozen novelties		12,861			17,969
Biscuits		7,032			7,913
Handhelds		5,510			2,892
Coupon redemption		(332	)		(176	)
Other		241			(10	)
Total Retail Supermarket	$	43,759		$	43,073

Frozen Beverages
Beverages	$	41,950		$	38,659
Repair and maintenance service		24,559			23,827
Machines revenue		8,889			7,011
Other		542			476
Total Frozen Beverages	$	75,940		$	69,973

Consolidated Sales	$	348,308		$	351,343

Depreciation and Amortization:
Food Service	$	10,673		$	9,458
Retail Supermarket		527			391
Frozen Beverages		5,592			5,332
Total Depreciation and Amortization	$	16,792		$	15,181

Operating Income :
Food Service	$	6,016		$	6,387
Retail Supermarket		452			1,111
Frozen Beverages		3,215			1,830
Total Operating Income	$	9,683		$	9,328

Capital Expenditures:
Food Service	$	11,865		$	24,862
Retail Supermarket		2			1,374
Frozen Beverages		8,063			4,674
Total Capital Expenditures	$	19,930		$	30,910

Assets:
Food Service	$	930,533		$	907,736
Retail Supermarket		36,219			16,941
Frozen Beverages		325,805			302,871
Total Assets	$	1,292,557		$	1,227,548

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 280
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-Paragraph 40
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-Topic 280
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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

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-Topic 280
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-Topic 280
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

J&J SNACK FOODS CORP 10-Q