Segment Information

6 Months Ended

Jul. 02, 2011

Segment Information

12)  Segment Information

The company operates in two reportable operating segments defined by management reporting structure and operating activities.

The Commercial Foodservice Equipment Group manufactures, sells and distributes cooking equipment for the restaurant and institutional kitchen industry.  This business segment has manufacturing facilities in California, Illinois, Michigan, New Hampshire, North Carolina, Tennessee, Texas, Vermont, Australia, China, Denmark, Italy, the Philippines and the United Kingdom.  Principal product lines of this group include conveyor ovens, ranges, steamers, convection ovens, combi-ovens, broilers and steam cooking equipment, induction cooking systems, baking and proofing ovens, griddles, charbroilers, catering equipment, fryers, toasters, hot food servers, foodwarming equipment, griddles, coffee and beverage dispensing equipment and kitchen processing and ventilation equipment.  These products are sold and marketed under the brand names: Anets, Beech, Blodgett, Blodgett Combi, Blodgett Range, Bloomfield, Britannia, CTX, Carter-Hoffmann, CookTek, Doyon, Frifri, Giga, Holman, Houno, IMC, Jade, Lang, Lincat, MagiKitch’n, Middleby Marshall, Nu-Vu, PerfectFry, Pitco, Southbend, Star, Toastmaster, TurboChef and Wells.

The Food Processing Equipment Group manufactures preparation, cooking, packaging and food safety equipment for the food processing industry.  This business division has manufacturing operations in Illinois, Iowa, Wisconsin and Mexico.  Its principal products include batch ovens, belt ovens and conveyorized cooking systems sold under the Alkar brand name; grinding and slicing equipment and food suspension, reduction and emulstion systems sold under the Cozzini brand name; breading, battering, mixing, slicing and forming equipment sold under the MP Equipment brand name and packaging and food safety equipment sold under the RapidPak brand name.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The chief decision maker evaluates individual segment performance based on operating income.  Management believes that intersegment sales are made at established arms-length transfer prices.

Net Sales Summary

(dollars in thousands)

	Three Months Ended										Six Months Ended
	Jul 2, 2011					Jul 3, 2010					Jul 2, 2011					Jul 3, 2010
	Sales		Percent			Sales		Percent			Sales		Percent			Sales		Percent
Business Divisions:
Commercial Foodservice	$	178,271		84.5		$	153,418		88.5		$	332,004		84.4		$	293,955		88.0
Food Processing		32,584		15.5			19,994		11.5			61,423		15.6			40,140		12.0
Total	$	210,855		100.0	%	$	173,412		100.0	%	$	393,427		100.0	%	$	334,095		100.0	%

The following table summarizes the results of operations for the company's business segments(1)(in thousands):

	Commercial		Food		Corporate
	Foodservice		Processing		and Other(2)			Total
Three months ended July  2, 2011
Net sales	$	178,271	$	32,584	$	—		$	210,855
Income from operations		43,408		6,435		(14,595	)		35,248
Depreciation and amortization expense		4,568		550		168			5,286
Net capital expenditures		1,261		113		74			1,448
Six months ended July  2, 2011
Net sales	$	332,004	$	61,423	$	—		$	393,427
Income from operations		79,243		11,222		(23,853	)		66,612
Depreciation and amortization expense		7,891		1,101		341			9,333
Net capital expenditures		2,794		139		218			3,151
Total assets		857,058		98,793		63,235			1,019,086
Long-lived assets		617,454		56,659		33,595			707,708
Three months ended July 3, 2010
Net sales	$	153,418	$	19,994	$	—		$	173,412
Income from operations		37,705		3,664		(11,640	)		29,729
Depreciation and amortization expense		3,381		354		156			3,891
Net capital expenditures		753		40		211			1,004
Six months ended July 3, 2010
Net sales	$	293,955	$	40,140	$	—		$	334,095
Income from operations		69,040		8,036		(20,912	)		56,164
Depreciation and amortization expense		6,783		712		312			7,807
Net capital expenditures		2,092		102		211			2,405
Total assets		702,588		74,070		47,199			823,857
Long-lived assets		519,969		43,106		27,415			590,490

(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.

Long-lived assets by major geographic region are as follows (in thousands):

	Jul 2, 2011		Jul 3, 2010
United States and Canada	$	581,134	$	565,691
Asia		15,442		1,874
Europe and Middle East		110,245		22,738
Latin America		887		187
Total international	$	126,574	$	24,799
	$	707,708	$	590,490

Net sales by major geographic region were as follows (in thousands):

	Three Months Ended				Six Months Ended
	Jul 2, 2011		Jul 3, 2010		Jul 2, 2011		Jul 3, 2010
United States and Canada	$	155,549	$	140,336	$	296,180	$	269,265
Asia		13,528		8,308		23,824		17,221
Europe and Middle East		31,710		20,415		53,620		39,240
Latin America		10,068		4,353		19,803		8,369
Total international	$	55,306	$	33,076	$	97,247	$	64,830
	$	210,855	$	173,412	$	393,427	$	334,095