Segment Information

9 Months Ended

Oct. 01, 2016

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, Pennsylvania, Tennessee, Texas, Vermont, Washington, Australia, China, Denmark, Italy, the Philippines, Poland 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, Desmon, Doyon, Eswood, Follett, Frifri, Giga, Goldstein, Holman, Houno, IMC, Induc, Jade, Lang, Lincat, MagiKitch’n, Market Forge, Marsal, Middleby Marshall, MPC, Nieco, Nu-Vu, PerfectFry, Pitco, Southbend, Star, Toastmaster, TurboChef, 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, France, Germany and the United Kingdom. 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, water cutting systems, 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, Cozzini, Danfotech, Drake, Maurer-Atmos, MP Equipment, RapidPak, Spooner Vicars, Stewart Systems and Thurne.

The Residential Kitchen Equipment Group manufactures, sells and distributes kitchen equipment for the residential market. This business segment has manufacturing facilities in California, Michigan, Mississippi, Wisconsin, France, Ireland, Romania, and the United Kingdom. Principal product lines of this group include ranges, cookers, ovens, refrigerators, dishwashers, microwaves, cooktops and outdoor equipment. These products are sold and marketed under the brand names of AGA, AGA Cookshop, Brigade, Falcon, Fired Earth, Grange, Heartland, La Cornue, Leisure Sinks, Lynx, Marvel, Mercury, Rangemaster, Rayburn, Redfyre, Sedona, Stanley, TurboChef, U-Line 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.

Net Sales Summary

(dollars in thousands)

	Three Months Ended								Nine Months Ended
	Oct 1, 2016				Oct 3, 2015				Oct 1, 2016				Oct 3, 2015
	Sales		Percent		Sales		Percent		Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	331,571	57.7	%	$	290,885	64.8	%	$	931,585	55.8	%	$	841,932	65.2	%
Food Processing	82,196		14.3		74,178		16.5		244,307		14.6		215,910		16.7
Residential Kitchen	160,457		28.0		83,941		18.7		495,143		29.6		234,049		18.1
Total	$	574,224	100.0	%	$	449,004	100.0	%	$	1,671,035	100.0	%	$	1,291,891	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 October 1, 2016
Net sales	$	331,571	$	82,196		$	160,457	$	—		$	574,224
Income (loss) from operations	90,159		19,360			30,560		(18,640		)	121,439
Depreciation and amortization expense	5,272		1,419			5,249		1,229			13,169
Net capital expenditures	3,469		618			1,604		—			5,691
Nine Months Ended October 1, 2016
Net sales	$	931,585	$	244,307		$	495,143	$	—		$	1,671,035
Income (loss) from operations	260,460		56,409			62,775		(59,917		)	319,727
Depreciation and amortization expense	15,218		4,377			22,191		2,623			44,409
Net capital expenditures	10,975		3,300			4,393		131			18,799
Total assets	$	1,361,244	$	333,056		$	1,163,992	$	57,176		$	2,915,468
Three Months Ended October 3, 2015
Net sales	$	290,885	$	74,178		$	83,941	$	—		$	449,004
Income (loss) from operations	77,245		14,048			6,404		(17,667		)	80,030
Depreciation and amortization expense	2,414		24			8,677		708			11,823
Net capital expenditures	2,801		(607		)	4,231		(117		)	6,308
Nine Months Ended October 3, 2015
Net sales	$	841,932	$	215,910		$	234,049	$	—		$	1,291,891
Income (loss) from operations	218,587		41,534			20,446		(50,597		)	229,970
Depreciation and amortization expense	12,707		5,006			15,066		1,204			33,983
Net capital expenditures	10,721		1,530			5,600		141			17,992
Total assets	$	1,114,479	$	313,109		$	1,192,147	$	91,044		$	2,710,779

(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):

	Oct 1, 2016		Oct 3, 2015
United States and Canada	$	181,397	$	149,260
Asia	15,188		16,188
Europe and Middle East	76,498		73,636
Latin America	1,193		1,032
Total international	$	92,879	$	90,856
	$	274,276	$	240,116

Net sales (in thousands):

	Three Months Ended				Nine Months Ended
	Oct 1, 2016		Oct 3, 2015		Oct 1, 2016		Oct 3, 2015
United States and Canada	$	383,634	$	329,357	$	1,090,944	$	953,380
Asia	49,219		34,900		130,809		119,812
Europe and Middle East	119,835		68,734		390,923		168,858
Latin America	21,536		16,013		58,359		49,841
Total international	$	190,590	$	119,647	$	580,091	$	338,511
	$	574,224	$	449,004	$	1,671,035	$	1,291,891