Segment Information

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [Abstract]

Segment Information

Segment Information

The company operates in three reportable operating segments defined by management reporting structure and operating activities.

The Commercial Foodservice Equipment Group manufactures, sells, and distributes cooking equipment for the restaurant and institutional kitchen industry. This business segment has manufacturing facilities in California, Illinois, Michigan, New Hampshire, North Carolina, Tennessee, Texas, Vermont, Australia, China, Denmark, Italy, the Philippines and the United Kingdom. Principal product lines of this group include conveyor ovens, ranges, steamers, convection ovens, combi-ovens, broilers and steam cooking equipment, induction cooking systems, baking and proofing ovens, charbroilers, catering equipment, fryers, toasters, hot food servers, food warming equipment, griddles, coffee and beverage dispensing equipment, professional refrigerators, coldrooms, ice machines, freezers and kitchen processing and ventilation equipment. These products are sold and marketed under the brand names: Anets, Beech, Blodgett, Blodgett Combi, Blodgett Range, Bloomfield, Britannia, CTX, Carter-Hoffmann, Celfrost, CookTek, Doyon, Frifri, Giga, Holman, Houno, IMC, Jade, Lang, Lincat, MagiKitch’n, Market Forge, Middleby Marshall, MPC, Nieco, Nu-Vu, PerfectFry, Pitco, Southbend, Star, Toastmaster, TurboChef, Viking, Wells and Wunder-Bar.

The Food Processing Equipment Group manufactures preparation, cooking, packaging food handling and food safety equipment for the food processing industry. This business segment has manufacturing operations in Illinois, Iowa, North Carolina, Texas, Virginia, Wisconsin, Australia, France, Germany and Mexico. Principal product lines of this group include batch ovens, belt ovens, continuous processing ovens, frying systems, automated thermal processing systems, automated loading and unloading systems, meat presses, breading, battering, mixing, forming, grinding and slicing equipment, food suspension, reduction and emulsion systems, defrosting equipment, packaging and food safety equipment. These products are sold and marketed under the brand names: Alkar, Armor Inox, Auto-Bake, Baker Thermal Solutions, Danfotech, Drake, Maurer-Atmos, MP Equipment, RapidPak, Spooner Vicars and Stewart Systems.

The Residential Kitchen Equipment Group manufactures, sells and distributes kitchen equipment for the residential market. This business segment has manufacturing facilities in Greenwood, Mississippi. Principal product lines of this group are ranges, ovens, refrigerators, dishwashers, microwaves, cooktops and outdoor equipment. These products are sold and marketed under the brand names of Brigade, Jade, TurboChef and Viking.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The chief operating decision maker evaluates individual segment performance based on operating income. Management believes that intersegment sales are made at established arms length transfer prices.

Net Sales Summary

(dollars in thousands)

	Three Months Ended
	Mar 29, 2014				Mar 30, 2013
	Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	234,050	62.8	%	$	197,362	60.3	%
Food Processing	75,586		20.3		71,438		21.8
Residential Kitchen	62,842		16.9		58,651		17.9
Total	$	372,478	100.0	%	$	327,451	100.0	%

The following table summarizes the results of operations for the company's business segments(1) (in thousands):

	Commercial  Foodservice		Food Processing		Residential Kitchen			Corporate and Other(2)			Total
Three Months Ended March 29, 2014
Net sales	$	234,050	$	75,586	$	62,842		$	—		$	372,478
Income (loss) from operations	54,962		12,122		207			(11,358		)	55,933
Depreciation and amortization expense	4,884		2,121		3,091			425			10,521
Net capital expenditures	2,243		449		539			—			3,231
Total assets	$	1,020,845	$	308,442	$	491,465		$	95,090		$	1,915,842
Three Months Ended March 30, 2013
Net sales	$	197,362	$	71,438	$	58,651		$	—		$	327,451
Income (loss) from operations	49,750		11,480		(7,241		)	(11,794		)	42,195
Depreciation and amortization expense	4,375		2,025		7,219			404			14,023
Net capital expenditures	1,502		848		1,487			86			3,923
Total assets	$	876,935	$	313,601	$	436,250		$	70,968		$	1,697,754

(1)Non-operating expenses are not allocated to the operating segments. Non-operating expenses consist of interest expense and deferred financing amortization, foreign exchange gains and losses and other income and expense items outside of income from operations.

(2)Includes corporate and other general company assets and operations.

Geographic Information

Long-lived assets, not including goodwill and other intangibles (in thousands):

	Mar 29, 2014		Mar 30, 2013
United States and Canada	$	115,537	$	141,792
Asia	5,156		3,355
Europe and Middle East	16,291		14,073
Latin America	1,930		1,340
Total international	$	23,377	$	18,768
	$	138,914	$	160,560

Net sales (in thousands):

	Three Months Ended
	Mar 29, 2014		Mar 30, 2013
United States and Canada	$	259,100	$	242,057
Asia	33,806		20,386
Europe and Middle East	59,805		42,464
Latin America	19,767		22,544
Total international	$	113,378	$	85,394
	$	372,478	$	327,451