Segment Information

9 Months Ended

Oct. 02, 2021

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 foodservice equipment for the restaurant and institutional kitchen industry. This business segment has manufacturing facilities in Arkansas, California, Colorado, Florida, Illinois, Michigan, New Hampshire, North Carolina, Ohio, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Washington, Australia, Canada, China, Denmark, Estonia, Italy, Mexico, the Philippines, Poland, Spain, 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, soft serve ice cream equipment, coffee and beverage dispensing equipment, home and professional craft brewing equipment, fry dispensers, bottle filling and canning equipment, and IoT solutions. These products are sold and marketed under the brand names: Anets, APW Wyott, Bakers Pride, Beech, BKI, Blodgett, Blodgett Combi, Bloomfield, Britannia, Carter-Hoffmann, Celfrost, Concordia, CookTek, Crown, CTX, Desmon, Deutsche Beverage, Doyon, Eswood, EVO, Firex, Follett, Frifri, Giga, Globe, Goldstein, Holman, Houno, IMC, Imperial, Induc, Ink Kegs, Inline Filling Systems, Jade, JoeTap, Josper, L2F, Lang, Lincat, MagiKitch’n, Market Forge, Marsal, Meheen, Middleby Marshall, MPC, Nieco, Nu-Vu, PerfectFry, Pitco, QualServ, RAM, Southbend, Ss Brewtech, Star, Starline, Sveba Dahlen, Synesso, Tank, Taylor, Thor, Toastmaster, TurboChef, Ultrafryer, Varimixer, Wells, Wild Goose 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, Pennsylvania, 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, formers, 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, CV-Tek, Danfotech, Deutsche Process, Drake, Glimek, Hinds-Bock, Maurer-Atmos, MP Equipment, Pacproinc, 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, Belgium, France and the United Kingdom. Principal product lines of this group are ranges, cookers, stoves, cooktops, microwaves, ovens, refrigerators, dishwashers, undercounter refrigeration, wine cellars, ice machines, ventilation equipment and outdoor equipment. These products are sold and marketed under the brand names: AGA, AGA Cookshop, Brava, EVO, La Cornue, Leisure Sinks, Lynx, Marvel, Mercury, Novy, 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
	Oct 2, 2021				Sep 26, 2020				Oct 2, 2021				Sep 26, 2020
	Sales		Percent		Sales		Percent		Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	511,480	62.6	%	$	371,223	58.5	%	$	1,501,413	63.0	%	$	1,081,847	60.6	%
Food Processing	112,670		13.8		110,648		17.4		355,172		14.9		316,477		17.7
Residential Kitchen	193,395		23.6		152,654		24.1		527,791		22.1		385,637		21.7
Total	$	817,545	100.0	%	$	634,525	100.0	%	$	2,384,376	100.0	%	$	1,783,961	100.0	%

The following table summarizes the results of operations for the company's business segments (in thousands):

	Commercial  Foodservice		Food Processing		Residential Kitchen		Corporate and Other (1)		Total
Three Months Ended October 2, 2021
Net sales	$	511,480	$	112,670	$	193,395	$	—	$	817,545
Income (loss) from operations (2, 3, 6)	105,529		21,425		31,322		75,206		233,482
Depreciation expense	5,793		1,353		3,608		122		10,876
Amortization expense (5)	12,822		1,773		3,589		1,570		19,754
Net capital expenditures	6,391		1,106		2,127		797		10,421
Nine Months Ended October 2, 2021
Net sales	$	1,501,413	$	355,172	$	527,791	$	—	$	2,384,376
Income (loss) from operations (2, 3, 4, 6)	311,789		68,048		95,088		16,447		491,372
Depreciation expense	17,579		4,005		9,120		476		31,180
Amortization expense (5)	42,272		5,450		7,145		4,625		59,492
Net capital expenditures	17,599		3,539		7,256		1,338		29,732
Total assets	$	3,498,696	$	640,229	$	1,578,857	$	55,069	$	5,772,851
Three Months Ended September 26, 2020
Net sales	$	371,223	$	110,648	$	152,654	$	—	$	634,525
Income (loss) from operations (2, 3)	57,483		22,860		22,626		(16,297)		86,672
Depreciation expense	5,360		1,480		2,965		—		9,805
Amortization expense (5)	12,923		1,794		2,170		692		17,579
Net capital expenditures	5,279		692		794		299		7,064
Nine Months Ended September 26, 2020
Net sales	$	1,081,847	$	316,477	$	385,637	$	—	$	1,783,961
Income (loss) from operations (2, 3)	173,064		57,801		41,860		(41,521)		231,204
Depreciation expense	15,567		4,179		8,742		15		28,503
Amortization expense (5)	38,257		5,494		7,627		1,713		53,091
Net capital expenditures	22,152		3,115		4,089		420		29,776
Total assets	$	3,155,360	$	628,156	$	1,149,550	$	87,118	$	5,020,184

(1)Includes corporate and other general company assets and operations.

(2)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.

(3)Restructuring expenses are allocated in operating income by segment. See note 16 for further details.

(4)Gain (loss) on sale of plants are included in Commercial Foodservice and Residential Kitchen.

(5)Includes amortization of deferred financing costs and Convertible Notes issuance costs.

(6)Termination fee from Welbilt merger is included in Corporate and Other.

Geographic Information

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

	Oct 2, 2021		Sep 26, 2020
United States and Canada	$	337,790	$	321,159
Asia	33,783		22,857
Europe and Middle East	204,696		152,914
Latin America	8,062		6,111
Total international	$	246,541	$	181,882
	$	584,331	$	503,041