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, Firex, Follett, Frifri, Giga, Globe, Goldstein, Holman, Houno, IMC, Induc, Jade, Joe Tap, Josper, L2F, Lang, Lincat, MagiKitch’n, Market Forge, Marsal, Middleby Marshall, MPC, Nieco, Nu-Vu, PerfectFry, Pitco, QualServ, Southbend, Star, Sveba Dahlen, Taylor, 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, Washington, 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, filling and depositing solutions, 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, Hinds-Bock, Maurer-Atmos, MP Equipment, RapidPak, Scanico, Spooner Vicars, Stewart Systems and Thurne, Ve.Ma.C.

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.

Net Sales Summary

(dollars in thousands)



	Three Months Ended								Six Months Ended
	Jun 30, 2018				Jul 1, 2017				Jun 30, 2018				Jul 1, 2017
	Sales		Percent		Sales		Percent		Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	414,117	62.0	%	$	333,753	57.6	%	$	774,021	61.8	%	$	646,002	58.2	%
Food Processing	93,649		14.0		92,368		15.9		182,221		14.5		169,644		15.3
Residential Kitchen	160,362		24.0		153,222		26.5		296,686		23.7		293,994		26.5
Total	$	668,128	100.0	%	$	579,343	100.0	%	$	1,252,928	100.0	%	$	1,109,640	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 June 30, 2018
Net sales	$	414,117	$	93,649	$	160,362	$	—		$	668,128
Income (loss) from operations (3,4)	100,008		14,648		16,520		(19,866		)	111,310
Depreciation and amortization expense	7,349		3,129		7,652		468			18,598
Net capital expenditures	2,929		460		2,744		1,418			7,551

Six Months Ended June 30, 2018
Net sales	$	774,021	$	182,221	$	296,686	$	—		$	1,252,928
Income (loss) from operations (3,4)	182,554		25,326		23,109		(32,687		)	198,302
Depreciation and amortization expense	15,349		7,176		15,161		936			38,622
Net capital expenditures	8,706		6,956		7,642		904			24,208

Total assets	$	2,889,677	$	497,439	$	1,133,356	$	81,731		$	4,602,203

Three Months Ended July 1, 2017
Net sales	$	333,753	$	92,368	$	153,222	$	—		$	579,343
Income (loss) from operations (3,4,5)	95,007		24,199		13,394		(19,076		)	113,524
Depreciation and amortization expense	8,496		1,657		7,627		478			18,258
Net capital expenditures	20,764		1,308		1,661		(301		)	23,432

Six Months Ended July 1, 2017
Net sales	$	646,002	$	169,644	$	293,994	$	—		$	1,109,640
Income (loss) from operations (3,4,5)	175,548		42,188		23,968		(35,439		)	206,265
Depreciation and amortization expense	13,478		3,044		14,834		959			32,315
Net capital expenditures	26,749		1,946		2,943		70			31,708

Total assets	$	1,495,316	$	393,674	$	1,205,676	$	45,869		$	3,140,535

(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 16 for further details.

(4)Includes reclassifications due to adoption of ASU No. 2017-07. See note 15 for further details.

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

Geographic Information

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



	Jun 30, 2018		Jul 1, 2017
United States and Canada	$	262,382	$	202,789
Asia	12,575		15,370
Europe and Middle East	128,584		127,053
Latin America	679		1,034
Total international	$	141,838	$	143,457
	$	404,220	$	346,246