Segment Information

12 Months Ended

Jan. 02, 2016

Segment Reporting [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 foodservice 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, 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, 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 California, 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 Brigade, Divertimenti, Falcon, Fired Earth, Grange, Heartland, La Cornue, Leisure Sinks, Lynx, Marvel, Mercury, Rangemaster, Rayburn, Redfyre, Sedona, 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. Management believes that intersegment sales are made at established arm's length transfer prices.

The following table summarizes the results of operations for the company’s business segments(1,2) (dollars in thousands): 

	Commercial Foodservice		Food Processing		Residential Kitchen		Corporate and Other(3)			Total
2015
Net sales	$	1,121,046	$	297,712	$	407,840	$	—		$	1,826,598
Operating income	296,061		64,650		4,653		(62,761		)	302,603
Depreciation and amortization expense	17,117		5,839		29,515		1,603			54,074
Net capital expenditures	12,123		2,164		7,935		140			22,362
Total assets	1,115,840		308,677		1,250,503		86,131			2,761,151
Long-lived assets	61,835		20,307		129,751		21,327			233,220
2014
Net sales	$	1,041,228	$	322,783	$	272,527	$	—		$	1,636,538
Operating income	269,559		67,395		14,585		(51,107		)	300,432
Depreciation and amortization expense	19,661		6,601		13,356		1,634			41,252
Net capital expenditures	6,752		4,487		1,811		93			13,143
Total assets	1,053,921		304,241		636,680		71,289			2,066,131
Long-lived assets	50,211		19,627		71,500		10,140			151,478
2013
Net sales	$	895,494	$	301,522	$	231,669	$	—		$	1,428,685
Operating income	234,190		49,528		10,815		(50,071		)	244,462
Depreciation and amortization expense	18,787		8,387		14,148		1,842			43,164
Net capital expenditures	7,227		3,140		4,090		183			14,640
Total assets	1,000,065		303,289		441,299		74,553			1,819,206
Long-lived assets	47,490		12,475		60,570		17,038			137,573

(1) Non-operating expenses are not allocated to the reportable 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) Long-lived assets consist of property, plant and equipment, long-term deferred tax assets and other assets.

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

Geographic Information

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

	2015		2014		2013
	(dollars in thousands)
United States and Canada	$	149,299	$	127,308	$	115,162
Asia	17,336		5,714		5,133
Europe and Middle East	65,581		16,739		15,762
Latin America	1,004		1,717		1,516
Total international	83,921		24,170		22,411
	$	233,220	$	151,478	$	137,573

Net sales (in thousands):

	2015		2014		2013
	(dollars in thousands)
United States and Canada	$	1,274,907	$	1,139,034	$	1,049,280
Asia	165,541		171,995		109,599
Europe and Middle East	319,387		222,974		187,381
Latin America	66,763		102,535		82,425
Total international	551,691		497,504		379,405
	$	1,826,598	$	1,636,538	$	1,428,685