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Segment Information
3 Months Ended
Apr. 01, 2017
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, 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 1, 2017
 
Apr 2, 2016
 
Sales
 
Percent
 
Sales
 
Percent
Business Segments:
 
 
 
 
 
 
 
Commercial Foodservice
$
312,249

 
58.9
%
 
$
278,986

 
54.0
%
Food Processing
77,276

 
14.6

 
78,636

 
15.2

Residential Kitchen
140,772

 
26.5

 
158,733

 
30.8

    Total
$
530,297

 
100.0
%
 
$
516,355

 
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 1, 2017
 
 
 
 
 
 
 
 
 
Net sales
$
312,249

 
$
77,276

 
$
140,772

 
$

 
$
530,297

Income (loss) from operations
80,541

 
17,989

 
18,912

 
(16,363
)
 
101,079

Depreciation and amortization expense
4,982

 
1,387

 
7,207

 
481

 
14,057

Net capital expenditures
5,985

 
638

 
1,282

 
371

 
8,276

 
 
 
 
 
 
 
 
 
 
Total assets
$
1,359,869

 
$
344,307

 
$
1,200,241

 
$
38,614

 
$
2,943,031

 
 
 
 
 
 
 
 
 
 
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

 
 
 
 
 
 
 
 
 
 

(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 1, 2017
 
Apr 2, 2016
United States and Canada
$
178,363

 
$
153,284

Asia
15,357

 
18,011

Europe and Middle East
120,505

 
60,795

Latin America
1,050

 
1,114

Total international
$
136,912

 
$
79,920

 
$
315,275

 
$
233,204


Net sales (in thousands):
 
Three Months Ended
 
Apr 1, 2017

 
Apr 2, 2016

United States and Canada
$
360,101

 
$
325,941

Asia
42,692

 
37,794

Europe and Middle East
108,704

 
136,604

Latin America
18,800

 
16,016

Total international
$
170,196

 
$
190,414

 
$
530,297

 
$
516,355