Segment Information

9 Months Ended

Oct. 01, 2011

Segment Information

12)  Segment Information

The company operates in two 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, 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, griddles, charbroilers, catering equipment, fryers, toasters, hot food servers, foodwarming equipment, griddles, coffee and beverage dispensing equipment 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, CookTek, Doyon, Frifri, Giga, Holman, Houno, IMC, Jade, Lang, Lincat, MagiKitch’n, Middleby Marshall, Nu-Vu, PerfectFry, Pitco, Southbend, Star, Toastmaster, TurboChef and Wells.

The Food Processing Equipment Group manufactures preparation, cooking, packaging and food safety equipment for the food processing industry.  This business division has manufacturing operations in Illinois, Iowa, Wisconsin, Australia, Germany and Mexico.  Principal product lines of this group include batch ovens, belt ovens, conveyorized cooking systems, meat presses, breading, battering, mixing, 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, Auto-Bake, Danfotech, Maurer-Atmos, MP Equipment and RapidPak.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The chief decision maker evaluates individual segment performance based on operating income.  Management believes that intersegment sales are made at established arms-length transfer prices.

Net Sales Summary

(dollars in thousands)

	Three Months Ended										Nine Months Ended
	Oct 1, 2011					Oct 2, 2010					Oct 1, 2011					Oct 2, 2010
	Sales		Percent			Sales		Percent			Sales		Percent			Sales		Percent
Business Divisions:
Commercial Foodservice	$	189,133		86.5		$	156,081		87.8		$	521,137		85.1		$	450,036		87.9
Food Processing		29,587		13.5			21,712		12.2			91,010		14.9			61,852		12.1
Total	$	218,720		100.0	%	$	177,793		100.0	%	$	612,147		100.0	%	$	511,888		100.0	%

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

	Commercial		Food		Corporate
	Foodservice		Processing		and Other(2)			Total
Three months ended October 1, 2011
Net sales	$	189,133	$	29,587	$	—		$	218,720
Income from operations		47,875		2,484		(13,173	)		37,186
Depreciation and amortization expense		3,995		1,106		233			5,334
Net capital expenditures		1,533		23		173			1,729
Nine months ended October 1, 2011
Net sales	$	521,137	$	91,010	$	—		$	612,147
Income from operations		127,118		13,706		(37,026	)		103,798
Depreciation and amortization expense		11,886		2,207		574			14,667
Net capital expenditures		4,327		162		391			4.880
Total assets		827,276		139,618		63,473			1,030,367
Long-lived assets		602,164		85,263		33,760			721,187
Three months ended October 2, 2010
Net sales	$	156,081	$	21,712	$	—		$	177,793
Income from operations		38,002		4,040		(10,031	)		32,011
Depreciation and amortization expense		3,257		438		154			3,849
Net capital expenditures		400		65		138			603
Nine months ended October 2, 2010
Net sales	$	450,036	$	61,852	$	—		$	511,888
Income from operations		107,042		12,076		(30,943	)		88,175
Depreciation and amortization expense		10,040		1,150		466			11,656
Net capital expenditures		2,492		167		349			3,008
Total assets		709,733		104,377		52,528			866,638
Long-lived assets		524,905		58,271		30,169			613,345

(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.

Long-lived assets by major geographic region are as follows (in thousands):

	Oct 1, 2011		Oct 2, 2010
United States and Canada	$	583,632	$	586,151
Asia		34,254		1,826
Europe and Middle East		102,274		24,412
Latin America		1,027		956
Total international	$	137,555	$	27,194
	$	721,187	$	613,345

Net sales by major geographic region were as follows (in thousands):

	Three Months Ended				Nine Months Ended
	Oct 1, 2011		Oct 2, 2010		Oct 1, 2011		Oct 2, 2010
United States and Canada	$	149,891	$	141,179	$	446,071	$	410,444
Asia		17,228		12,503		41,052		29,724
Europe and Middle East		41,628		17,675		95,248		56,915
Latin America		9,973		6,436		29,776		14,805
Total international	$	68,829	$	36,614	$	166,076	$	101,444
	$	218,720	$	177,793	$	612,147	$	511,888