Segment Information

6 Months Ended

Jul. 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, Pennsylvania, Tennessee, Texas, Vermont, Washington, Australia, China, Denmark, Italy, the Philippines, Poland 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, Follett, 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								Six Months Ended
	Jul 2, 2016				Jul 4, 2015				Jul 2, 2016				Jul 4, 2015
	Sales		Percent		Sales		Percent		Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	321,028	55.3	%	$	288,831	66.2	%	$	600,014	54.7	%	$	551,047	65.4	%
Food Processing	83,475		14.4		71,913		16.5		162,111		14.8		141,732		16.8
Residential Kitchen	175,953		30.3		75,547		17.3		334,686		30.5		150,108		17.8
Total	$	580,456	100.0	%	$	436,291	100.0	%	$	1,096,811	100.0	%	$	842,887	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 2, 2016
Net sales	$	321,028	$	83,475	$	175,953	$	—		$	580,456
Income (loss) from operations	93,732		19,186		22,364		(23,369		)	111,913
Depreciation and amortization expense	5,575		1,520		8,238		977			16,310
Net capital expenditures	3,322		884		1,078		131			5,415
Six Months Ended July 2, 2016
Net sales	$	600,014	$	162,111	$	334,686	$	—		$	1,096,811
Income (loss) from operations	170,301		37,049		32,215		(41,277		)	198,288
Depreciation and amortization expense	9,946		2,958		16,942		1,394			31,240
Net capital expenditures	7,506		2,682		2,789		131			13,108
Total assets	$	1,367,664	$	321,694	$	1,195,379	$	46,933		$	2,931,670
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

(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 2, 2016		Jul 4, 2015
United States and Canada	$	170,854	$	106,208
Asia	15,582		20,835
Europe and Middle East	64,199		46,165
Latin America	1,151		1,401
Total international	$	80,932	$	68,401
	$	251,786	$	174,609

Net sales (in thousands):

	Three Months Ended				Six Months Ended
	Jul 2, 2016		Jul 4, 2015		Jul 2, 2016		Jul 4, 2015
United States and Canada	$	381,369	$	327,539	$	707,310	$	624,023
Asia	43,796		36,383		81,590		84,912
Europe and Middle East	134,484		57,140		271,088		100,124
Latin America	20,807		15,229		36,823		33,828
Total international	$	199,087	$	108,752	$	389,501	$	218,864
	$	580,456	$	436,291	$	1,096,811	$	842,887