Segment Information

9 Months Ended

Sep. 27, 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, Washington, 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, Concordia, 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 arm's length transfer prices.

Net Sales Summary

(dollars in thousands)

	Three Months Ended								Nine Months Ended
	Sept 27, 2014				Sept 28, 2013				Sept 27, 2014				Sept 28, 2013
	Sales		Percent		Sales		Percent		Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	262,805	65.0	%	$	230,807	64.1	%	$	760,754	63.3	%	$	651,211	61.9	%
Food Processing	75,219		18.6		71,209		19.8		240,748		20.0		224,583		21.4
Residential Kitchen	66,265		16.4		57,997		16.1		200,041		16.7		175,471		16.7
Total	$	404,289	100.0	%	$	360,013	100.0	%	$	1,201,543	100.0	%	$	1,051,265	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 27, 2014
Net sales	$	262,805	$	75,219	$	66,265	$	—		$	404,289
Income (loss) from operations	71,775		15,485		6,624		(7,419		)	86,465
Depreciation and amortization expense	4,928		2,091		3,201		400			10,620
Net capital expenditures	1,616		944		506		55			3,121
Nine Months Ended September 27, 2014
Net sales	$	760,754	$	240,748	$	200,041	$	—		$	1,201,543
Income (loss) from operations	196,480		44,595		11,618		(34,556		)	218,137
Depreciation and amortization expense	14,715		6,461		9,524		1,234			31,934
Net capital expenditures	6,082		2,745		1,225		55			10,107
Total assets	$	1,040,061	$	305,585	$	494,661	$	73,610		$	1,913,917
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

(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):

	Sept 27, 2014		Sept 28, 2013
United States and Canada	$	126,995	$	108,854
Asia	5,436		4,126
Europe and Middle East	16,208		16,207
Latin America	1,771		1,484
Total international	$	23,415	$	21,817
	$	150,410	$	130,671

Net sales (in thousands):

	Three Months Ended				Nine Months Ended
	Sept 27, 2014		Sept 28, 2013		Sept 27, 2014		Sept 28, 2013
United States and Canada	$	279,241	$	264,665	$	833,715	$	779,394
Asia	36,753		30,721		116,836		75,128
Europe and Middle East	59,697		46,510		174,938		135,726
Latin America	28,598		18,117		76,054		61,017
Total international	$	125,048	$	95,348	$	367,828	$	271,871
	$	404,289	$	360,013	$	1,201,543	$	1,051,265