SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2011

SEGMENT INFORMATION

(9) 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, 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, MPC, 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 segment has manufacturing operations in Illinois, Iowa, Virginia, Wisconsin, Australia, France, Germany and Mexico. Principal product lines of this group include batch ovens, belt ovens, continuous processing ovens, automated thermal processing systems, automated loading and unloading systems, meat presses, breading, battering, mixing, forming, grinding and slicing equipment, food suspension, reduction and emulsion systems, defrosting equipment, packaging and food safety equipment. These products are sold and marketed under the brand names: Alkar, Armor Inox, Auto-Bake, Danfotech, Drake, Maurer-Atmos, MP Equipment and RapidPak.

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 arms length transfer prices.

The following table summarizes the results of operations for the company’s business segments¹ (dollars in thousands):

	Commercial		Food		Corporate
	Foodservice		Processing		and Other(2)			Total
2011
Net sales	$	723,274	$	132,633	$	—		$	855,907
Operating income		181,963		19,997		(53,250	)		148,710
Depreciation and amortization expense		15,839		3,053		816			19,708
Net capital expenditures		6,896		447		497			7,840
Total assets		752,876		238,724		154,912			1,146,512
Long-lived assets		519,517		146,281		113,331			779,129
2010
Net sales	$	611,596	$	107,525	$	—		$	719,121
Operating income		148,443		20,580		(46,235	)		122,788
Depreciation and amortization expense		13,331		3,130		553			17,014
Net capital expenditures		2,810		136		213			3,159
Total assets		712,738		103,829		56,605			873,172
Long-lived assets		521,915		57,950		29,648			609,513
2009
Net sales	$	580,704	$	65,925	$	—		$	646,629
Operating income		130,557		12,193		(31,309	)		111,441
Depreciation and amortization expense		14,135		1,350		403			15,888
Net capital expenditures		5,249		20		461			5,730
Total assets		694,026		69,137		53,183			816,346
Long-lived assets		527,250		43,518		28,552			599,320

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

Long-lived assets by major geographic region are as follows:

	2011		2010		2009
	(dollars in thousands)
United States and Canada	$	605,146	$	585,614	$	571,688
Asia		35,311		1,805		1,878
Europe and Middle East		137,642		21,143		25,546
Latin America		1,030		951		208
Total international		173,983		23,899		27,632
	$	779,129	$	609,513	$	599,320

Net sales by each major geographic region are as follows:

	2011		2010		2009
	(dollars in thousands)
United States and Canada	$	613,081	$	575,527	$	530,644
Asia		61,078		42,786		28,936
Europe and Middle East		137,335		79,859		69,773
Latin America		44,413		20,949		17,276
Total international		242,826		143,594		115,985
	$	855,907	$	719,121	$	646,629