Segment Information

9 Months Ended

Oct. 01, 2022

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 has a broad portfolio of foodservice equipment, which enables it to serve virtually any cooking, warming, refrigeration, freezing and beverage application within a commercial kitchen or foodservice operation. This equipment is used across all types of foodservice operations, including quick-service restaurants, full-service restaurants, convenience stores, retail outlets, hotels and other institutions. The products offered by 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.

The Food Processing Equipment Group offers a broad portfolio of processing solutions for customers producing pre-cooked meat products, such as hot dogs, dinner sausages, poultry and lunchmeats and baked goods such as muffins, cookies and bread. Through its broad line of products, the company is able to deliver a wide array of cooking solutions to service a variety of food processing requirements demanded by its customers. The company can offer highly integrated solutions that provide a food processing operation a uniquely integrated solution providing for the highest level of food quality, product consistency, and reduced operating costs resulting from increased product yields, increased capacity and greater throughput and reduced labor costs through automation. The products offered by this group include a wide array of cooking and baking solutions, including batch ovens, baking ovens, proofing ovens, conveyor belt ovens, continuous processing ovens, frying systems and automated thermal processing systems. The company also provides a comprehensive portfolio of complementary food preparation equipment such as tumblers, massagers, 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, and forming equipment, as well as a variety of automated loading and unloading systems, automated washing systems, auto-guided vehicles, food safety, food handling, freezing, defrosting and packaging equipment. This portfolio of equipment can be integrated to provide customers a highly efficient and customized solution.

The Residential Kitchen Equipment Group has a broad portfolio of innovative and professional-style residential kitchen equipment. The products offered by this group include ranges, cookers, stoves, cooktops, microwaves, ovens, refrigerators, dishwashers, undercounter refrigeration, wine cellars, ice machines, beer dispensers, ventilation equipment, mixers, rotisseries and outdoor cooking equipment.

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 1, 2022				Oct 2, 2021				Oct 1, 2022				Oct 2, 2021
	Sales		Percent		Sales		Percent		Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	623,662	62.8	%	$	511,480	62.6	%	$	1,776,994	59.2	%	$	1,501,413	63.0	%
Food Processing	148,244		14.9		112,670		13.8		392,100		13.1		355,172		14.9
Residential Kitchen	220,965		22.3		193,395		23.6		832,054		27.7		527,791		22.1
Total	$	992,871	100.0	%	$	817,545	100.0	%	$	3,001,148	100.0	%	$	2,384,376	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 1, 2022
Net sales	$	623,662	$	148,244	$	220,965	$	—	$	992,871
Income (loss) from operations (2, 3)	143,678		26,982		29,788		(38,743)		161,705
Depreciation expense	5,855		1,558		1,861		205		9,479
Amortization expense (5)	14,283		4,311		1,289		1,778		21,661
Net capital expenditures	10,235		2,959		5,211		376		18,781
Nine Months Ended October 1, 2022
Net sales	$	1,776,994	$	392,100	$	832,054	$	—	$	3,001,148
Income (loss) from operations (2, 3)	390,740		65,642		100,811		(105,697)		451,496
Depreciation expense	17,577		4,182		9,271		578		31,608
Amortization expense (5)	41,644		7,844		20,448		5,373		75,309
Net capital expenditures	23,178		10,108		16,457		1,171		50,914
Total assets	$	3,718,045	$	856,532	$	1,949,883	$	147,401	$	6,671,861
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

(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.

(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 1, 2022		Oct 2, 2021
United States and Canada	$	470,952	$	353,928
Asia	33,432		18,148
Europe and Middle East	135,341		204,192
Latin America	12,377		8,063
Total international	$	181,150	$	230,403
	$	652,102	$	584,331