Segment Information

6 Months Ended

Jun. 30, 2012

Notes To Financial Statements [Abstract]

Segment Information

Segment Infomation

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, North Carolina, 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, Baker Thermal Solutions (formerly known as Turkington), 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.

Net Sales Summary

(dollars in thousands)

	Three Months Ended								Six Months Ended
	Jun 30, 2012				Jul 2, 2011				Jun 30, 2012				Jul 2, 2011
	Sales		Percent		Sales		Percent		Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	196,546	75.6	%	$	178,271	84.5	%	$	374,816	76.7	%	$	332,004	84.4	%
Food Processing	63,494		24.4	%	32,584		15.5	%	114,047		23.3	%	61,423		15.6	%
Total	$	260,040	100.0	%	$	210,855	100.0	%	$	488,863	100.0	%	$	393,427	100.0	%

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

	Commercial  Foodservice		Food Processing		Corporate and Other(2)			Total
Three Months Ended June 30, 2012
Net sales	$	196,546	$	63,494	$	—		$	260,040
Income from operations	49,657		9,658		(13,977		)	45,338
Depreciation and amortization expense	4,291		2,021		230			6,542
Net capital expenditures	1,025		468		20			1,513
Six Months Ended June 30, 2012
Net sales	374,816		114,047		—			488,863
Income from operations	89,403		15,878		(23,283		)	81,998
Depreciation and amortization expense	9,207		3,932		450			13,589
Net capital expenditures	2,329		723		45			3,097
Total assets	842,585		239,714		58,715			1,141,014
Long-lived assets	608,770		150,561		18,360			777,691
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

(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):

	Jun 30, 2012		Jul 2, 2011
United States and Canada	$	607,036	$	581,134
Asia	35,729		15,442
Europe and Middle East	133,665		110,245
Latin America	1,261		887
Total international	$	170,655	$	126,574
	$	777,691	$	707,708

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

	Three Months Ended				Six Months Ended
	Jun 30, 2012		Jul 2, 2011		Jun 30, 2012		Jul 2, 2011
United States and Canada	$	177,424	$	155,549	$	334,493	$	296,180
Asia	24,057		13,528		43,139		23,824
Europe and Middle East	41,227		31,710		80,876		53,620
Latin America	17,332		10,068		30,355		19,803
Total international	$	82,616	$	55,306	$	154,370	$	97,247
	$	260,040	$	210,855	$	488,863	$	393,427