Segment Information

9 Months Ended

Sep. 28, 2013

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 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, Nieco, Nu-Vu, PerfectFry, Pitco, Southbend, Star, Toastmaster, TurboChef, Viking and Wells.

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 Illinois, Iowa, North Carolina, Texas, Virginia, Wisconsin, Australia, France, Germany and Mexico. Principal product lines of this group include batch ovens, belt ovens, continuous processing ovens, frying systems, 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, Danfotech, Drake, Maurer-Atmos, MP Equipment, RapidPak, Spooner Vicars and Stewart.

The Residential Kitchen Equipment Group manufactures, sells and distributes kitchen equipment for the residential market. This business segment has manufacturing facilities in Greenwood, MS. Principal product lines of this group are ranges, ovens, refrigerators, dishwashers, microwaves, cooktops and outdoor equipment. These products are sold and marketed under the brand names of Viking and Brigade.

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									Nine Months Ended
	Sep 28, 2013				Sep 29, 2012					Sep 28, 2013				Sep 29, 2012
	Sales		Percent		Sales			Percent		Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	230,807	64.1	%	$	198,615		77.1	%	$	651,211	61.9	%	$	573,431	76.8	%
Food Processing	71,209		19.8		59,084			22.9		224,583		21.4		173,131		23.2
Residential Kitchen	57,997		16.1		—		—	—		175,471		16.7		—		—
Total	$	360,013	100.0	%	$	257,699		100.0	%	$	1,051,265	100.0	%	$	746,562	100.0	%

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

	Commercial  Foodservice		Food Processing		Residential Kitchen		Corporate and Other(2)			Total
Three Months Ended September 28, 2013
Net sales	$	230,807	$	71,209	$	57,997	$	—		$	360,013
Income (loss) from operations	61,947		8,905		8,498		(11,862		)	67,488
Depreciation and amortization expense	4,557		2,017		2,215		411			9,200
Net capital expenditures	1,705		377		872		6			2,960
Nine Months Ended September 28, 2013
Net sales	$	651,211	$	224,583	$	175,471	$	—		$	1,051,265
Income (loss) from operations	169,089		34,010		5,173		(38,264		)	170,008
Depreciation and amortization expense	13,826		6,173		13,799		1,219			35,017
Net capital expenditures	6,491		2,517		1,941		107			11,056
Total assets	$	878,591	$	302,239	$	434,330	$	85,328		$	1,700,488
Three Months Ended September 29, 2012
Net sales	$	198,615	$	59,084	$	—	$	—		$	257,699
Income (loss) from operations	50,105		7,877		—		(10,553		)	47,429
Depreciation and amortization expense	4,238		2,250		—		613			7,101
Net capital expenditures	779		2,029		—		58			2,866
Nine Months Ended September 29, 2012
Net sales	$	573,431	$	173,131	$	—	$	—		$	746,562
Income (loss) from operations	139,508		23,755		—		(33,836		)	129,427
Depreciation and amortization expense	13,445		6,182		—		1,063			20,690
Net capital expenditures	3,108		2,752		—		103			5,963
Total assets	$	853,582	$	277,129	$	—	$	63,291		$	1,194,002

(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.

Geographic Information

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

	Sep 28, 2013		Sep 29, 2012
United States and Canada	$	108,854	$	50,415
Asia	4,126		3,486
Europe and Middle East	16,207		19,042
Latin America	1,484		1,260
Total international	$	21,817	$	23,788
	$	130,671	$	74,203

Net sales (in thousands):

	Three Months Ended				Nine Months Ended
	Sep 28, 2013		Sep 29, 2012		Sep 28, 2013		Sep 29, 2012
United States and Canada	$	264,665	$	176,982	$	779,394	$	511,475
Asia	30,721		23,495		75,128		66,634
Europe and Middle East	46,510		42,289		135,726		123,165
Latin America	18,117		14,933		61,017		45,288
Total international	$	95,348	$	80,717	$	271,871	$	235,087
	$	360,013	$	257,699	$	1,051,265	$	746,562