Segment Information

3 Months Ended

Mar. 31, 2012

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, 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, MPC, 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 segment has manufacturing operations in Illinois, Iowa, North Carolina, Virginia, Wisconsin, Australia, France, Germany and Mexico. Principal product lines of this group include batch ovens, belt ovens, continuous processing ovens, automated thermal processing systems, automated loading and unloading 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, Armor Inox, Auto-Bake, Danfotech, Drake, Maurer-Atmos, MP Equipment, RapidPak and Turkington.

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 arms length transfer prices.

Net Sales Summary

(dollars in thousands)

	Three Months Ended
	Mar 31, 2012					Apr 2, 2011
	Sales		Percent			Sales		Percent
Business Segments:
Commercial Foodservice	$	178,270		77.9		$	153,733		84.2
Food Processing		50,553		22.1			28,839		15.8
Total	$	228,823		100.0	%	$	182,572		100.0	%

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

	Commercial Foodservice		Food Processing		Corporate and Other(2)			Total
Three months ended March 31, 2012
Net sales	$	178,270	$	50,553	$	--		$	228,823
Income from operations		39,746		6,220		(9,306	)		36,660
Depreciation and amortization expense		4,916		1,911		220			7,047
Net capital expenditures		1,304		255		25			1,584
Total assets		846,751		234,691		70,191			1,151,633
Long-lived assets		616,502		140,215		29,190			785,907
Three months ended April 2, 2011
Net sales	$	153,733	$	28,839	$	--		$	182,572
Income from operations		35,835		4,787		(9,258	)		31,364
Depreciation and amortization expense		3,323		551		173			4,047
Net capital expenditures		1,533		26		144			1,703
Total assets		720,061		99,769		61,934			881,764
Long-lived assets		520,059		57,502		30,971			608,532

(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):

	Mar 31, 2012		Apr 2, 1011
United States and Canada	$	619,013	$	584,750
Asia		36,140		1,778
Europe and Middle East		129,373		21,174
Latin America		1,381		830
Total international	$	166,894	$	23,782
	$	785,907	$	608,532

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

	Three Months Ended
	Mar 31, 2012		Apr 2, 2011
United States and Canada	$	157,069	$	140,631
Asia		19,082		10,296
Europe and Middle East		39,649		21,910
Latin America		13,023		9,735
Total international	$	71,754	$	41,941
	$	228,823	$	182,572