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 Arkansas, California, Illinois, Michigan, New Hampshire, North Carolina, Ohio, 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, combi-ovens, convection ovens, baking ovens, proofing ovens, deck ovens, speed cooking ovens, hydrovection ovens, ranges, fryers, rethermalizers, steam cooking equipment, food warming equipment, catering equipment, heated cabinets, charbroilers, ventless cooking systems, kitchen ventilation, induction cooking equipment, countertop cooking equipment, toasters, griddles, professional mixers, stainless steel fabrication, custom millwork, professional refrigerators, blast chillers, coldrooms, ice machines, freezers and coffee and beverage dispensing 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, Globe, Goldstein, Holman, Houno, IMC, Induc, Jade, L2F, 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, Denmark, France, Germany, India and the United Kingdom. Principal product lines of this group include batch ovens, baking ovens, proofing ovens, conveyor belt ovens, continuous processing ovens, frying systems and automated thermal processing systems, grinders, slicers, reduction and emulsion systems, mixers, blenders, battering equipment, breading equipment, seeding equipment, water cutting systems, food presses, food suspension equipment, forming equipment, automated loading and unloading systems, food safety, food handling, freezing, defrosting and packaging 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, Emico, Glimek, Maurer-Atmos, MP Equipment, RapidPak, Scanico, 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, stoves, ovens, refrigerators, dishwashers, microwaves, cooktops, refrigerators, wine coolers, ice machines, ventilation equipment and outdoor equipment. These products are sold and marketed under the brand names: 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. 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) (dollars in thousands):



	Commercial Foodservice		Food Processing		Residential Kitchen		Corporate and Other(3)			Total
2017
Net sales	$	1,382,108	$	352,717	$	600,717	$	—		$	2,335,542
Operating income (4,5,6)	356,776		88,121		30,972		(65,528		)	410,341
Depreciation and amortization expense	29,981		7,357		30,551		1,885			69,774
Net capital expenditures	41,457		5,519		7,637		(120		)	54,493
Total assets	1,693,820		450,932		1,140,668		54,293			3,339,713
Long-lived assets (2)	148,565		25,346		167,486		21,191			362,588

2016
Net sales	$	1,266,955	$	342,235	$	658,662	$	—		$	2,267,852
Operating income (4)	350,315		87,039		89,435		(80,564		)	446,225
Depreciation and amortization expense	19,548		5,696		29,897		3,093			58,234
Net capital expenditures	11,958		5,667		6,961		231			24,817
Total assets	1,347,441		340,088		1,179,640		49,967			2,917,136
Long-lived assets (2)	84,475		21,763		175,206		35,100			316,544

2015
Net sales	$	1,121,046	$	297,712	$	407,840	$	—		$	1,826,598
Operating income (4)	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 (2)	61,835		20,307		129,751		21,327			233,220


(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.


(4)	Restructuring expenses are allocated in operating income by segment. See note 12 for further details.


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


(6)	Impairment of intangible assets allocated to Residential Kitchen.

Geographic Information

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



	2017		2016		2015
United States and Canada	$	221,479	$	181,317	$	149,299

Asia	14,033		14,729		17,336
Europe and Middle East	126,264		119,511		65,581
Latin America	812		987		1,004
Total international	141,109		135,227		83,921

	$	362,588	$	316,544	$	233,220

Net sales (in thousands):



	2017		2016		2015
United States and Canada	$	1,549,876	$	1,470,566	$	1,274,907

Asia	192,638		190,548		165,541
Europe and Middle East	501,247		522,819		319,387
Latin America	91,781		83,919		66,763
Total international	785,666		797,286		551,691

	$	2,335,542	$	2,267,852	$	1,826,598