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, Spain, 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, charcoal grills, professional mixers, stainless steel fabrication, custom millwork, professional refrigerators, blast chillers, coldrooms, ice machines, freezers, and soft serve, ice cream, 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, Crown, Desmon, Doyon, Eswood, Firex, Follett, Frifri, Giga, Globe, Goldstein, Holman, Houno, IMC, Induc, Jade, JoeTap, 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, Italy, 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, M-TEK, RapidPak, Scanico, Spooner Vicars, Stewart Systems, Thurne and 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 and the United Kingdom. Principal product lines of this group are ranges, cookers, stoves, ovens, refrigerators, dishwashers, microwaves, cooktops, 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, 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
2018
Net sales	$	1,729,814	$	389,594	$	603,523		$	—		$	2,722,931
Operating income (4)	393,380		62,435		53,959			(63,808		)	445,966
Depreciation and amortization expense	52,598		12,734		30,064			1,842			97,238
Net capital expenditures	17,444		7,373		11,721			(498		)	36,040
Total assets	2,906,373		513,189		1,089,103			41,116			4,549,781
Long-lived assets (2)	181,636		33,127		146,897			22,328			383,988

2017
Net sales	$	1,382,108	$	352,717	$	600,717		$	—		$	2,335,542
Operating income (4,5,6)	357,085		88,121		(377		)	(66,216		)	378,613
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)	350,483		87,039		62,326			(80,830		)	419,018
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


(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 included in operating income of the segment to which they pertain. See note 13 for further details.


(5)	Gain on sale of plant is included in Commercial Foodservice.


(6)	Impairment of intangible assets is included in Residential Kitchen.

Geographic Information

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



	2018		2017		2016
United States and Canada	$	262,482	$	221,479	$	181,317

Asia	12,136		14,033		14,729
Europe and Middle East	108,001		126,264		119,511
Latin America	1,369		812		987
Total International	121,506		141,109		135,227

	$	383,988	$	362,588	$	316,544