Segment Information

6 Months Ended

Jul. 04, 2015

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, Washington, 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, Concordia, CookTek, Desmon, Doyon, Eswood, Frifri, Giga, Goldstein, Holman, Houno, IMC, Induc, Jade, Lang, Lincat, MagiKitch’n, Market Forge, Marsal, 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 Georgia, Illinois, Iowa, North Carolina, Texas, Virginia, Wisconsin, Australia, France, Germany and the United Kingdom. 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, water cutting systems, 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, Cozzini, Danfotech, Drake, Maurer-Atmos, MP Equipment, RapidPak, Spooner Vicars, Stewart Systems and Thurne.

The Residential Kitchen Equipment Group manufactures, sells and distributes kitchen equipment for the residential market. This business segment has manufacturing facilities in Mississippi and Wisconsin. 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, U-Line 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 arm's length transfer prices.

Net Sales Summary

(dollars in thousands)

	Three Months Ended								Six Months Ended
	Jul 4, 2015				Jun 28, 2014				Jul 4, 2015				Jun 28, 2014
	Sales		Percent		Sales		Percent		Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	288,831	66.2	%	$	263,899	62.1	%	$	551,047	65.4	%	$	497,949	62.4	%
Food Processing	71,913		16.5		89,943		21.2		141,732		16.8		165,529		20.8
Residential Kitchen	75,547		17.3		70,934		16.7		150,108		17.8		133,776		16.8
Total	$	436,291	100.0	%	$	424,776	100.0	%	$	842,887	100.0	%	$	797,254	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 July 4, 2015
Net sales	$	288,831	$	71,913	$	75,547	$	—		$	436,291
Income (loss) from operations	77,616		14,176		9,101		(17,533		)	83,360
Depreciation and amortization expense	5,027		3,545		2,260		96			10,928
Net capital expenditures	3,296		1,782		309		180			5,567
Six Months Ended July 4, 2015
Net sales	$	551,047	$	141,732	$	150,108	$	—		$	842,887
Income (loss) from operations	141,342		27,486		14,042		(32,930		)	149,940
Depreciation and amortization expense	10,293		4,982		6,389		496			22,160
Net capital expenditures	7,920		2,137		1,369		258			11,684
Total assets	$	1,159,298	$	314,282	$	629,210	$	53,158		$	2,155,948
Three Months Ended June 28, 2014
Net sales	$	263,899	$	89,943	$	70,934	$	—		$	424,776
Income (loss) from operations	69,743		16,988		4,787		(15,779		)	75,739
Depreciation and amortization expense	4,903		2,249		3,232		409			10,793
Net capital expenditures	2,223		1,352		180		—			3,755
Six Months Ended June 28, 2014
Net sales	$	497,949	$	165,529	$	133,776	$	—		$	797,254
Income (loss) from operations	124,705		29,110		4,994		(27,137		)	131,672
Depreciation and amortization expense	9,787		4,370		6,323		834			21,314
Net capital expenditures	4,466		1,801		719		—			6,986
Total assets	$	1,025,374	$	322,864	$	496,324	$	81,537		$	1,926,099

(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):

	Jul 4, 2015		Jun 28, 2014
United States and Canada	$	106,208	$	129,922
Asia	20,835		5,267
Europe and Middle East	46,165		16,904
Latin America	1,401		1,942
Total international	$	68,401	$	24,113
	$	174,609	$	154,035

Net sales (in thousands):

	Three Months Ended				Six Months Ended
	Jul 4, 2015		Jun 28, 2014		Jul 4, 2015		Jun 28, 2014
United States and Canada	$	327,539	$	295,374	$	624,023	$	554,474
Asia	36,383		46,277		84,912		80,083
Europe and Middle East	57,140		55,436		100,124		115,241
Latin America	15,229		27,689		33,828		47,456
Total international	$	108,752	$	129,402	$	218,864	$	242,780
	$	436,291	$	424,776	$	842,887	$	797,254