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 Arkansas, California, Illinois, Michigan, New Hampshire, North Carolina, Pennsylvania, Tennessee, Texas, Vermont, Washington, Australia, China, Denmark, Estonia, Italy, the Philippines, Poland, Sweden 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, Bear Varimixer, 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, QualServ, Southbend, Star, Sveba Dahlen, 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, Oklahoma, 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, seeding, 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, Burford, Cozzini, CVP Systems, Danfotech, Drake, Glimek, 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								Nine Months Ended
	Sep 30, 2017				Oct 1, 2016				Sep 30, 2017				Oct 1, 2016
	Sales		Percent		Sales		Percent		Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	354,828	59.8	%	$	331,571	57.7	%	$	1,000,830	58.8	%	$	931,585	55.8	%
Food Processing	86,871		14.7		82,196		14.3		256,515		15.1		244,307		14.6
Residential Kitchen	151,344		25.5		160,457		28.0		445,338		26.1		495,143		29.6
Total	$	593,043	100.0	%	$	574,224	100.0	%	$	1,702,683	100.0	%	$	1,671,035	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 September 30, 2017
Net sales	$	354,828	$	86,871	$	151,344	$	—		$	593,043
Income (loss) from operations (3)	89,028		19,975		25,087		(15,833		)	118,257
Depreciation and amortization expense	6,977		2,101		7,422		461			16,961
Net capital expenditures	7,978		484		2,813		869			12,144

Nine Months Ended September 30, 2017
Net sales	$	1,000,830	$	256,515	$	445,338	$	—		$	1,702,683
Income (loss) from operations (3,4)	264,576		62,163		66,005		(51,272		)	341,472
Depreciation and amortization expense	20,455		5,145		22,256		1,420			49,276
Net capital expenditures	34,727		2,430		5,756		(479		)	42,434

Total assets	$	1,559,757	$	393,272	$	1,211,388	$	36,726		$	3,201,143

Three Months Ended October 1, 2016
Net sales	$	331,571	$	82,196	$	160,457	$	—		$	574,224
Income (loss) from operations (3)	90,159		19,360		30,560		(18,640		)	121,439
Depreciation and amortization expense	5,272		1,419		5,249		1,229			13,169
Net capital expenditures	3,469		618		1,604		—			5,691

Nine Months Ended October 1, 2016
Net sales	$	931,585	$	244,307	$	495,143	$	—		$	1,671,035
Income (loss) from operations (3)	260,460		56,409		62,775		(59,917		)	319,727
Depreciation and amortization expense	15,218		4,377		22,191		2,623			44,409
Net capital expenditures	10,975		3,300		4,393		131			18,799

Total assets	$	1,361,244	$	333,056	$	1,163,992	$	57,176		$	2,915,468

(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.

(3)Restructuring expenses are allocated in operating income by segment. See note 15 for further details.

(4)Gain on sale of plant allocated to Commercial Foodservice.

Geographic Information

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



	Sep 30, 2017		Oct 1, 2016
United States and Canada	$	212,033	$	181,397
Asia	15,705		15,188
Europe and Middle East	125,892		76,498
Latin America	982		1,193
Total international	$	142,579	$	92,879
	$	354,612	$	274,276

Net sales (in thousands):



	Three Months Ended				Nine Months Ended
	Sep 30, 2017		Oct 1, 2016		Sep 30, 2017		Oct 1, 2016
United States and Canada	$	390,142	$	383,634	$	1,144,247	$	1,090,944
Asia	48,842		49,219		136,407		130,809
Europe and Middle East	129,567		119,835		353,334		390,923
Latin America	24,492		21,536		68,695		58,359
Total international	$	202,901	$	190,590	$	558,436	$	580,091
	$	593,043	$	574,224	$	1,702,683	$	1,671,035