Segment Information

9 Months Ended

Oct. 03, 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 Michigan, Mississippi, Wisconsin, France, Ireland, Romania, and the United Kingdom. Principal product lines of this group are ranges, cookers, ovens, refrigerators, dishwashers, microwaves, cooktops and outdoor equipment. These products are sold and marketed under the brand names of AGA, AGA Cookshop, Brigade, Divertimenti, Falcon, Fired Earth, Grange, Heartland, Jade, La Cornue, Leisure Sinks, Marvel, Mercury, Rangemaster, Rayburn, Redfyre, Stanley, 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.

Net Sales Summary

(dollars in thousands)

	Three Months Ended								Nine Months Ended
	Oct 3, 2015				Sep 27, 2014				Oct 3, 2015				Sep 27, 2014
	Sales		Percent		Sales		Percent		Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	290,885	64.8	%	$	262,805	65.0	%	$	841,932	65.2	%	$	760,754	63.3	%
Food Processing	74,178		16.5		75,219		18.6		215,910		16.7		240,748		20.0
Residential Kitchen	83,941		18.7		66,265		16.4		234,049		18.1		200,041		16.7
Total	$	449,004	100.0	%	$	404,289	100.0	%	$	1,291,891	100.0	%	$	1,201,543	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 October 3, 2015
Net sales	$	290,885	$	74,178		$	83,941	$	—		$	449,004
Income (loss) from operations	77,245		14,048			6,404		(17,667		)	80,030
Depreciation and amortization expense	2,414		24			8,677		708			11,823
Net capital expenditures	2,801		(607		)	4,231		(117		)	6,308
Nine Months Ended October 3, 2015
Net sales	$	841,932	$	215,910		$	234,049	$	—		$	1,291,891
Income (loss) from operations	218,587		41,534			20,446		(50,597		)	229,970
Depreciation and amortization expense	12,707		5,006			15,066		1,204			33,983
Net capital expenditures	10,721		1,530			5,600		141			17,992
Total assets	$	1,114,479	$	313,109		$	1,192,147	$	91,044		$	2,710,779
Three Months Ended September 27, 2014
Net sales	$	262,805	$	75,219		$	66,265	$	—		$	404,289
Income (loss) from operations	71,775		15,485			6,624		(7,419		)	86,465
Depreciation and amortization expense	4,928		2,091			3,201		400			10,620
Net capital expenditures	1,616		944			506		55			3,121
Nine Months Ended September 27, 2014
Net sales	$	760,754	$	240,748		$	200,041	$	—		$	1,201,543
Income (loss) from operations	196,480		44,595			11,618		(34,556		)	218,137
Depreciation and amortization expense	14,715		6,461			9,524		1,234			31,934
Net capital expenditures	6,082		2,745			1,225		55			10,107
Total assets	$	1,040,061	$	305,585		$	494,661	$	73,610		$	1,913,917

(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):

	Oct 3, 2015		Sep 27, 2014
United States and Canada	$	149,260	$	126,995
Asia	16,188		5,436
Europe and Middle East	73,636		16,208
Latin America	1,032		1,771
Total international	$	90,856	$	23,415
	$	240,116	$	150,410

Net sales (in thousands):

	Three Months Ended				Nine Months Ended
	Oct 3, 2015		Sep 27, 2014		Oct 3, 2015		Sep 27, 2014
United States and Canada	$	329,357	$	279,241	$	953,380	$	833,715
Asia	34,900		36,753		119,812		116,836
Europe and Middle East	68,734		59,697		168,858		174,938
Latin America	16,013		28,598		49,841		76,054
Total international	$	119,647	$	125,048	$	338,511	$	367,828
	$	449,004	$	404,289	$	1,291,891	$	1,201,543