Segment Information

3 Months Ended

Apr. 02, 2016

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, 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 include 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, 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.

Net Sales Summary

(dollars in thousands)

	Three Months Ended
	Apr 2, 2016				Apr 4, 2015
	Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	278,986	54.0	%	$	262,216	64.5	%
Food Processing	78,636		15.2		69,819		17.2
Residential Kitchen	158,733		30.8		74,561		18.3
Total	$	516,355	100.0	%	$	406,596	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 April 2, 2016
Net sales	$	278,986	$	78,636	$	158,733	$	—		$	516,355
Income (loss) from operations	76,569		17,863		9,851		(17,908		)	86,375
Depreciation and amortization expense	4,371		1,438		8,704		417			14,930
Net capital expenditures	4,184		1,798		1,711		—			7,693
Total assets	$	1,132,939	$	325,373	$	1,235,772	$	83,860		$	2,777,944
Three Months Ended April 4, 2015
Net sales	$	262,216	$	69,819	$	74,561				$	406,596
Income (loss) from operations	63,726		13,310		4,941		(15,397		)	66,580
Depreciation and amortization expense	5,266		1,437		4,129		400			11,232
Net capital expenditures	4,624		355		1,060		78			6,117
Total assets	$	1,117,585	$	309,829	$	635,388	$	80,034		$	2,142,836

(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):

	Apr 2, 2016		Apr 4, 2015
United States and Canada	$	153,284	$	129,397
Asia	18,011		13,727
Europe and Middle East	60,795		22,596
Latin America	1,114		1,473
Total international	$	79,920	$	37,796
	$	233,204	$	167,193

Net sales (in thousands):

	Three Months Ended
	Apr 2, 2016		Apr 4, 2015
United States and Canada	$	325,941	$	296,484
Asia	37,794		48,529
Europe and Middle East	136,604		42,984
Latin America	16,016		18,599
Total international	$	190,414	$	110,112
	$	516,355	$	406,596