Segment Information

12 Months Ended

Jan. 02, 2021

Segment Reporting [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 foodservice equipment for the restaurant and institutional kitchen industry. This business segment has manufacturing facilities in Arkansas, California, Colorado, Florida, Illinois, Michigan, New Hampshire, North Carolina, Ohio, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Washington, Australia, Canada, China, Denmark, Estonia, Italy, Mexico, the Philippines, Poland, Spain, 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, soft serve ice cream equipment, coffee and beverage dispensing equipment, home and professional craft brewing equipment, fry dispensers, bottle filling and canning equipment, and IoT solutions. These products are sold and marketed under the brand names: Anets, APW Wyott, Bakers Pride, Beech, BKI, Blodgett, Blodgett Combi, Bloomfield, Britannia, Carter-Hoffmann, Celfrost, Concordia, CookTek, Crown, CTX, Desmon, Deutsche Beverage, Doyon, Eswood, EVO, Firex, Follett, Frifri, Giga, Globe, Goldstein, Holman, Houno, IMC, Induc, Ink Kegs, Inline Filling Systems, Jade, JoeTap, Josper, L2F, Lang, Lincat, MagiKitch’n, Market Forge, Marsal, Meheen, Middleby Marshall, MPC, Nieco, Nu-Vu, PerfectFry, Pitco, QualServ, RAM, Southbend, Ss Brewtech, Star, Starline, Sveba Dahlen, Synesso, Tank, Taylor, Thor, Toastmaster, TurboChef, Ultrafryer, Varimixer, Wells, Wild Goose 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, Italy, 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, formers, 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, CV-Tek, Danfotech, Deutsche Process, Drake, Glimek, Hinds-Bock, Maurer-Atmos, MP Equipment, Pacproinc, 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, Wisconsin, France and the United Kingdom. Principal product lines of this group are ranges, cookers, stoves, cooktops, microwaves, ovens, refrigerators, dishwashers, undercounter refrigeration, wine cellars, ice machines, ventilation equipment and outdoor equipment. These products are sold and marketed under the brand names: AGA, AGA Cookshop, Brava, EVO, 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. Management believes that intersegment sales are made at established arm's length transfer prices.

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

	Commercial Foodservice		Food Processing		Residential Kitchen		Corporate and Other(2)		Total
2020
Net sales	$	1,510,279	$	437,272	$	565,706	$	—	$	2,513,257
Operating income (3,4)	239,625		78,008		67,046		(60,248)		324,431
Depreciation expense	21,768		5,507		11,691		120		39,086
Amortization expense (5)	51,985		7,319		9,657		2,485		71,446
Net capital expenditures	25,463		3,427		4,801		1,158		34,849
Total assets	3,249,441		617,171		1,221,229		114,633		5,202,474
Long-lived assets (6)	279,481		55,069		192,940		19,849		547,339
2019
Net sales	$	1,984,345	$	400,951	$	574,150	$	—	$	2,959,446
Operating income (3,4)	429,946		68,935		89,312		(74,150)		514,043
Depreciation expense	21,054		4,944		11,742		112		37,852
Amortization expense (5)	45,906		8,162		9,896		1,612		65,576
Net capital expenditures	29,353		6,683		9,168		1,405		46,609
Total assets	3,188,304		621,619		1,157,211		35,009		5,002,143
Long-lived assets (6)	261,466		57,403		176,834		4,116		499,819
2018
Net sales	$	1,729,814	$	389,594	$	603,523	$	—	$	2,722,931
Operating income (3)	393,380		62,435		53,959		(63,808)		445,966
Depreciation expense	17,374		5,207		12,838		363		35,782
Amortization expense (5)	35,224		7,527		17,226		1,479		61,456
Net capital expenditures	17,444		7,373		11,721		(498)		36,040
Total assets	2,906,373		513,189		1,089,103		41,116		4,549,781
Long-lived assets (6)	181,636		33,127		146,897		22,328		383,988

(1)Non-operating expenses are not allocated to the reportable 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.

(3)Restructuring expenses and impairments are included in operating income of the segment to which they pertain. See note 3(f) and 13 for further details.

(4)Gain on litigation settlement is included in Residential Kitchen and gain on sale of plant is included in Commercial Foodservice.

(5)Includes amortization of deferred financing costs.

(6)Long-lived assets consist of property, plant and equipment, long-term deferred tax assets and other assets.

Geographic Information

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

	2020		2019		2018
United States and Canada	$	331,688	$	305,207	$	262,482
Asia	28,018		22,312		12,136
Europe and Middle East	181,242		165,781		108,001
Latin America	6,391		6,519		1,369
Total International	215,651		194,612		121,506
	$	547,339	$	499,819	$	383,988