Segment Information

6 Months Ended

Jun. 28, 2014

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, food warming equipment, griddles, coffee and beverage dispensing equipment, professional refrigerators, coldrooms, ice machines, freezers 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, Celfrost, CookTek, Doyon, Frifri, Giga, Holman, Houno, IMC, Jade, Lang, Lincat, MagiKitch’n, Market Forge, Middleby Marshall, MPC, Nieco, Nu-Vu, PerfectFry, Pitco, Southbend, Star, Toastmaster, TurboChef, Viking, Wells and Wunder-Bar.

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 Georgia, 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, water jet cutting 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, PES, RapidPak, Spooner Vicars and Stewart Systems.

The Residential Kitchen Equipment Group manufactures, sells and distributes kitchen equipment for the residential market. This business segment has manufacturing facilities in Greenwood, Mississippi. 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 Brigade, Jade, TurboChef and Viking.

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 28, 2014				Jun 29, 2013				Jun 28, 2014				Jun 29, 2013
	Sales		Percent		Sales		Percent		Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	263,899	62.1	%	$	223,042	61.3	%	$	497,949	62.4	%	$	420,404	60.8	%
Food Processing	89,943		21.2		81,936		22.5		165,529		20.8		153,374		22.2
Residential Kitchen	70,934		16.7		58,823		16.2		133,776		16.8		117,474		17.0
Total	$	424,776	100.0	%	$	363,801	100.0	%	$	797,254	100.0	%	$	691,252	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 June 28, 2014
Net sales	$	263,899	$	89,943	$	70,934		$	—		$	424,776
Income (loss) from operations	69,743		16,988		4,787			(15,779		)	75,739
Depreciation and amortization expense	4,903		2,249		3,232			409			10,793
Net capital expenditures	2,223		1,352		180			—			3,755
Six Months Ended June 28, 2014
Net sales	$	497,949	$	165,529	$	133,776		$	—		$	797,254
Income (loss) from operations	124,705		29,110		4,994			(27,137		)	131,672
Depreciation and amortization expense	9,787		4,370		6,323			834			21,314
Net capital expenditures	4,466		1,801		719			—			6,986
Total assets	$	1,025,374	$	322,864	$	496,324		$	81,537		$	1,926,099
Three Months Ended June 29, 2013
Net sales	$	223,042	$	81,936	$	58,823		$	—		$	363,801
Income (loss) from operations	57,392		13,625		3,916			(14,608		)	60,325
Depreciation and amortization expense	4,894		2,131		4,365			404			11,794
Net capital expenditures	3,284		1,292		(418		)	15			4,173
Six Months Ended June 29, 2013
Net sales	$	420,404	$	153,374	$	117,474		$	—		$	691,252
Income (loss) from operations	107,142		25,105		(3,325		)	(26,402		)	102,520
Depreciation and amortization expense	9,269		4,156		11,584			808			25,817
Net capital expenditures	4,786		2,140		1,069			101			8,096
Total assets	$	887,938	$	298,890	$	441,112		$	82,611		$	1,710,551

(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):

	Jun 28, 2014		Jun 29, 2013
United States and Canada	$	129,922	$	105,550
Asia	5,267		3,855
Europe and Middle East	16,904		14,655
Latin America	1,942		1,418
Total international	$	24,113	$	19,928
	$	154,035	$	125,478

Net sales (in thousands):

	Three Months Ended				Six Months Ended
	Jun 28, 2014		Jun 29, 2013		Jun 28, 2014		Jun 29, 2013
United States and Canada	$	295,374	$	272,672	$	554,474	$	514,729
Asia	46,277		24,021		80,083		44,407
Europe and Middle East	55,436		46,752		115,241		89,216
Latin America	27,689		20,356		47,456		42,900
Total international	$	129,402	$	91,129	$	242,780	$	176,523
	$	424,776	$	363,801	$	797,254	$	691,252