Segment Information

3 Months Ended

Mar. 28, 2020

Notes To Financial Statements [Abstract]

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 foodservice equipment for the restaurant and institutional kitchen industry. This business segment has manufacturing facilities in Arkansas, California, Illinois, Massachusetts, Michigan, New Hampshire, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Vermont, Washington, Australia, China, Denmark, Estonia, Italy, Mexico, the Philippines, Poland, Sweden and the United Kingdom. Principal product lines of this group include conveyor ovens, combi-ovens, convection ovens, baking ovens, proofing ovens, deck ovens, speed cooking ovens, hydrovection ovens, ranges, fryers, rethermalizers, steam cooking equipment, food warming equipment, catering equipment, heated cabinets, charbroilers, ventless cooking systems, kitchen ventilation, induction cooking equipment, countertop cooking equipment, toasters, griddles, charcoal grills, professional mixers, stainless steel fabrication, custom millwork, professional refrigerators, blast chillers, coldrooms, ice machines, freezers, and soft serve ice cream, coffee, and beverage dispensing equipment. These products are sold and marketed under the brand names: Anets, APW Wyott, Bakers Pride, Beech, BKI, Blodgett, Blodgett Combi, Blodgett Range, Bloomfield, Britannia, CTX, Carter-Hoffmann, Celfrost, Concordia, CookTek, Crown, Desmon, Deutsche, Doyon, Eswood, EVO, Firex, Follett, Frifri, Giga, Globe, Goldstein, Holman, Houno, IMC, Induc, Jade, JoeTap, Josper, L2F, Lang, Lincat, MagiKitch’n, Market Forge, Marsal, Middleby Marshall, MPC, Nieco, Nu-Vu, PerfectFry, Pitco, QualServ, RAM, SiteSage, Southbend, Star, Sveba Dahlen, Ss Brewtech, Synesso, Taylor, Toastmaster, TurboChef, Ultrafryer, Varimixer, 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, Oklahoma, Pennsylvania, Texas, Virginia, Washington, Wisconsin, Denmark, France, Germany, India and the United Kingdom. Principal product lines of this group include batch ovens, baking ovens, proofing ovens, conveyor belt ovens, continuous processing ovens, frying systems and automated thermal processing systems, grinders, slicers, reduction and emulsion systems, mixers, blenders, battering equipment, breading equipment, seeding equipment, water cutting systems, food presses, food suspension equipment, filling and depositing solutions, forming equipment, automated loading and unloading systems, food safety, food handling, freezing, defrosting and packaging equipment. These products are sold and marketed under the brand names: Alkar, Armor Inox, Auto-Bake, Baker Thermal Solutions, Burford, Cozzini, CVP Systems, Danfotech, Drake, Emico, Glimek, Hinds-Bock, Maurer-Atmos, MP Equipment, M-TEK, Pacpro, RapidPak, Scanico, Spooner Vicars, Stewart Systems, Thurne and Ve.Ma.C.

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, Oregon, Wisconsin, France, Ireland, Romania and the United Kingdom. Principal product lines of this group are ranges, cookers, stoves, ovens, refrigerators, dishwashers, microwaves, cooktops, wine coolers, ice machines, ventilation equipment and outdoor equipment. These products are sold and marketed under the brand names: AGA, AGA Cookshop, Brava, Brigade, EVO, Fired Earth, 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
	Mar 28, 2020				Mar 30, 2019
	Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	443,124	65.4	%	$	457,531	66.6	%
Food Processing	104,266		15.4		92,474		13.5
Residential Kitchen	130,069		19.2		136,797		19.9
Total	$	677,459	100.0	%	$	686,802	100.0	%

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



	Commercial Foodservice		Food Processing		Residential Kitchen		Corporate and Other ⁽¹⁾			Total
Three Months Ended March 28, 2020
Net sales	$	443,124	$	104,266	$	130,069	$	—		$	677,459
Income (loss) from operations ⁽²⁾⁽³⁾	88,607		15,358		12,708		(11,259		)	105,414
Depreciation expense	4,900		1,336		2,983		11			9,230
Amortization expense ⁽⁴⁾	12,440		1,700		2,720		509			17,369
Net capital expenditures	4,686		1,829		2,545		121			9,181

Total assets	$	3,232,632	$	626,907	$	1,145,943	$	272,497		$	5,277,979
Three Months Ended March 30, 2019
Net sales	$	457,531	$	92,474	$	136,797	$	—		$	686,802
Income (loss) from operations ⁽²⁾⁽³⁾	96,811		12,586		18,771		(27,107		)	101,061
Depreciation expense	4,919		1,141		2,908		48			9,016
Amortization expense ⁽⁴⁾	11,261		2,383		2,451		403			16,498
Net capital expenditures	5,973		701		1,421		—			8,095

Total assets	$	2,970,850	$	530,440	$	1,156,191	$	30,636		$	4,688,117

(1)Includes corporate and other general company assets and operations.

(2)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.

(3)Restructuring expenses are allocated in operating income by segment. See note 16 for further details.

(4)Includes amortization of deferred financing costs.

Geographic Information

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



	Mar 28, 2020		Mar 30, 2019
United States and Canada	$	316,087	$	265,512
Asia	21,751		15,089
Europe and Middle East	157,035		183,445
Latin America	5,518		2,804
Total international	$	184,304	$	201,338
	$	500,391	$	466,850