Segment Information

3 Months Ended

Apr. 04, 2015

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 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, Washington, 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, food warming equipment, griddles, coffee and beverage dispensing equipment, professional refrigerators, coldrooms, ice machines, freezers 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, Celfrost, Concordia, CookTek, Desmon, Doyon, Eswood, Frifri, Giga, Goldstein, Holman, Houno, IMC, Jade, Lang, Lincat, MagiKitch’n, Market Forge, Marsal, Middleby Marshall, MPC, Nieco, Nu-Vu, PerfectFry, Pitco, Southbend, Star, Toastmaster, TurboChef, Viking, 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, Texas, Virginia, Wisconsin, Australia, France and Germany. Principal product lines of this group include batch ovens, belt ovens, continuous processing ovens, frying systems, automated thermal processing systems, automated loading and unloading systems, meat presses, breading, battering, mixing, water cutting systems, 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, Baker Thermal Solutions, Cozzini, Danfotech, Drake, Maurer-Atmos, MP Equipment, RapidPak, Spooner Vicars and Stewart Systems.

The Residential Kitchen Equipment Group manufactures, sells and distributes kitchen equipment for the residential market. This business segment has manufacturing facilities in Mississippi and Wisconsin. Principal product lines of this group are ranges, ovens, refrigerators, dishwashers, microwaves, cooktops and outdoor equipment. These products are sold and marketed under the brand names of Brigade, Jade, 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.

Net Sales Summary

(dollars in thousands)

	Three Months Ended
	Apr 4, 2015				Mar 29, 2014
	Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	262,216	64.5	%	$	234,050	62.8	%
Food Processing	69,819		17.2		75,586		20.3
Residential Kitchen	74,561		18.3		62,842		16.9
Total	$	406,596	100.0	%	$	372,478	100.0	%

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

	Commercial  Foodservice		Food Processing		Residential Kitchen		Corporate and Other(2)			Total
Three Months Ended April 4, 2015
Net sales	$	262,216	$	69,819	$	74,561	$	—		$	406,596
Income (loss) from operations	63,726		13,310		4,941		(15,397		)	66,580
Depreciation and amortization expense	5,266		1,437		4,129		400			11,232
Net capital expenditures	4,624		355		1,060		78			6,117
Total assets	$	1,117,585	$	309,829	$	635,388	$	80,034		$	2,142,836
Three Months Ended March 29, 2014
Net sales	$	234,050	$	75,586	$	62,842	$	—		$	372,478
Income (loss) from operations	54,962		12,122		207		(11,358		)	55,933
Depreciation and amortization expense	4,884		2,121		3,091		425			10,521
Net capital expenditures	2,243		449		539		—			3,231
Total assets	$	1,020,845	$	308,442	$	491,465	$	95,090		$	1,915,842

(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.

Geographic Information

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

	Apr 4, 2015		Mar 29, 2014
United States and Canada	$	129,397	$	115,537
Asia	13,727		5,156
Europe and Middle East	22,596		16,291
Latin America	1,473		1,930
Total international	$	37,796	$	23,377
	$	167,193	$	138,914

Net sales (in thousands):

	Three Months Ended
	Apr 4, 2015		Mar 29, 2014
United States and Canada	$	296,484	$	259,100
Asia	48,529		33,806
Europe and Middle East	42,984		59,805
Latin America	18,599		19,767
Total international	$	110,112	$	113,378
	$	406,596	$	372,478