Segment Information

3 Months Ended

Mar. 30, 2024

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 has a broad portfolio of foodservice equipment, which enables it to serve virtually any cooking, warming, holding, refrigeration, freezing and beverage application within a commercial kitchen or foodservice operation. This equipment is used across all types of foodservice operations, including quick-service restaurants, full-service restaurants, ghost kitchens, convenience stores, supermarkets, retail outlets, hotels and other institutions. The products offered by 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, IoT solutions and controls development and manufacturing.

The Food Processing Equipment Group offers a broad portfolio of processing solutions for customers producing protein products, such as bacon, salami, hot dogs, dinner sausages, poultry and lunchmeats and baked goods such as muffins, cookies, crackers, pies, bread and buns. Through its broad line of products, the company is able to deliver a wide array of food preparation, thermal processing, slicing/packaging, facility automation and equipment sanitation solutions to service a variety of food processing requirements demanded by its customers. The company can offer highly integrated full processing line solutions that provide a food processing operation a uniquely integrated solution providing for the highest level of food quality, product consistency, and reduced operating costs resulting from increased product yields, increased capacity and greater throughput and reduced labor costs through automation. The products offered by this group include a wide array of cooking and baking solutions, including batch ovens, baking ovens, proofing ovens, conveyor belt ovens, continuous processing ovens, frying systems and automated thermal processing systems. The company also provides a comprehensive portfolio of complementary food preparation equipment such as tumblers, massagers, 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, and forming equipment, as well as a variety of automated loading and unloading systems, automated washing systems, auto-guided vehicles, food safety, food handling, freezing, defrosting and packaging equipment. This portfolio of equipment can be integrated to provide customers a highly efficient and customized solution.

The Residential Kitchen Equipment Group has a broad portfolio of innovative and professional-style residential kitchen equipment. The products offered by this group include ranges, cookers, stoves, cooktops, microwaves, ovens, refrigerators, dishwashers, undercounter refrigeration, wine cellars, ice machines, beer dispensers, ventilation equipment, mixers, rotisseries and outdoor cooking equipment.

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 30, 2024				Apr 1, 2023
	Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	590,344	63.7	%	$	613,935	61.0	%
Food Processing	162,683		17.5		173,503		17.2
Residential Kitchen	173,899		18.8		219,958		21.8
Total	$	926,926	100.0	%	$	1,007,396	100.0	%

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
Three Months Ended March 30, 2024
Net sales	$	590,344	$	162,683	$	173,899	$	—	$	926,926
Income (loss) from operations (3)	131,658		32,352		4,537		(31,414)		137,133
Depreciation expense (4)	7,021		2,031		3,805		416		13,273
Amortization expense (5)	13,594		1,954		1,802		1,787		19,137
Net capital expenditures	6,084		1,817		5,259		583		13,743
Total assets	$	3,722,126	$	992,876	$	1,939,293	$	276,110	$	6,930,405
Three Months Ended April 1, 2023
Net sales	$	613,935	$	173,503	$	219,958	$	—	$	1,007,396
Income (loss) from operations (3)	136,562		34,687		21,186		(31,413)		161,022
Depreciation expense (4)	6,166		2,097		3,447		267		11,977
Amortization expense (5)	14,808		4,137		2,238		1,787		22,970
Net capital expenditures	16,906		2,203		6,214		162		25,485
Total assets	$	3,827,805	$	1,007,569	$	1,999,632	$	121,131	$	6,956,137

(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.

(3)Restructuring expenses are allocated in operating income by segment.

(4)Includes depreciation on right of use assets.

(5)Includes amortization of deferred financing costs and Convertible Notes issuance costs.

Geographic Information

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

	Mar 30, 2024		Apr 1, 2023
United States and Canada	$	506,334	$	476,073
Asia	39,136		36,597
Europe and Middle East	207,847		149,031
Latin America	12,370		13,688
Total international	$	259,353	$	199,316
	$	765,687	$	675,389