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 Arkansas, California, Illinois, Michigan, New Hampshire, North Carolina, Pennsylvania, Tennessee, Texas, Vermont, Washington, Australia, China, Denmark, Estonia, Italy, the Philippines, Poland, Sweden 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, Bear Varimixer, Beech, Blodgett, Blodgett Combi, Blodgett Range, Bloomfield, Britannia, CTX, Carter-Hoffmann, Celfrost, Concordia, CookTek, Desmon, Doyon, Eswood, Follett, Frifri, Giga, Goldstein, Holman, Houno, IMC, Induc, Jade, Lang, Lincat, MagiKitch’n, Market Forge, Marsal, Middleby Marshall, MPC, Nieco, Nu-Vu, PerfectFry, Pitco, QualServ, Southbend, Star, Sveba Dahlen, Toastmaster, TurboChef, 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, Oklahoma, Texas, Virginia, Wisconsin, France, Germany and the United Kingdom. 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, seeding, 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, Burford, Cozzini, CVP Systems, Danfotech, Drake, Glimek, Maurer-Atmos, MP Equipment, RapidPak, Spooner Vicars, Stewart Systems and Thurne. 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, Ireland, Romania, and the United Kingdom. Principal product lines of this group include ranges, cookers, ovens, refrigerators, dishwashers, microwaves, cooktops and outdoor equipment. These products are sold and marketed under the brand names of AGA, AGA Cookshop, Brigade, Fired Earth, Grange, Heartland, 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. Net Sales Summary (dollars in thousands) Three Months Ended Nine Months Ended Sep 30, 2017 Oct 1, 2016 Sep 30, 2017 Oct 1, 2016 Sales Percent Sales Percent Sales Percent Sales Percent Business Segments: Commercial Foodservice $ 354,828 59.8 % $ 331,571 57.7 % $ 1,000,830 58.8 % $ 931,585 55.8 % Food Processing 86,871 14.7 82,196 14.3 256,515 15.1 244,307 14.6 Residential Kitchen 151,344 25.5 160,457 28.0 445,338 26.1 495,143 29.6 Total $ 593,043 100.0 % $ 574,224 100.0 % $ 1,702,683 100.0 % $ 1,671,035 100.0 % 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 September 30, 2017 Net sales $ 354,828 $ 86,871 $ 151,344 $ — $ 593,043 Income (loss) from operations (3) 89,028 19,975 25,087 (15,833 ) 118,257 Depreciation and amortization expense 6,977 2,101 7,422 461 16,961 Net capital expenditures 7,978 484 2,813 869 12,144 Nine Months Ended September 30, 2017 Net sales $ 1,000,830 $ 256,515 $ 445,338 $ — $ 1,702,683 Income (loss) from operations (3,4) 264,576 62,163 66,005 (51,272 ) 341,472 Depreciation and amortization expense 20,455 5,145 22,256 1,420 49,276 Net capital expenditures 34,727 2,430 5,756 (479 ) 42,434 Total assets $ 1,559,757 $ 393,272 $ 1,211,388 $ 36,726 $ 3,201,143 Three Months Ended October 1, 2016 Net sales $ 331,571 $ 82,196 $ 160,457 $ — $ 574,224 Income (loss) from operations (3) 90,159 19,360 30,560 (18,640 ) 121,439 Depreciation and amortization expense 5,272 1,419 5,249 1,229 13,169 Net capital expenditures 3,469 618 1,604 — 5,691 Nine Months Ended October 1, 2016 Net sales $ 931,585 $ 244,307 $ 495,143 $ — $ 1,671,035 Income (loss) from operations (3) 260,460 56,409 62,775 (59,917 ) 319,727 Depreciation and amortization expense 15,218 4,377 22,191 2,623 44,409 Net capital expenditures 10,975 3,300 4,393 131 18,799 Total assets $ 1,361,244 $ 333,056 $ 1,163,992 $ 57,176 $ 2,915,468 (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. See note 15 for further details. (4) Gain on sale of plant allocated to Commercial Foodservice. Geographic Information Long-lived assets, not including goodwill and other intangibles (in thousands): Sep 30, 2017 Oct 1, 2016 United States and Canada $ 212,033 $ 181,397 Asia 15,705 15,188 Europe and Middle East 125,892 76,498 Latin America 982 1,193 Total international $ 142,579 $ 92,879 $ 354,612 $ 274,276 Net sales (in thousands): Three Months Ended Nine Months Ended Sep 30, 2017 Oct 1, 2016 Sep 30, 2017 Oct 1, 2016 United States and Canada $ 390,142 $ 383,634 $ 1,144,247 $ 1,090,944 Asia 48,842 49,219 136,407 130,809 Europe and Middle East 129,567 119,835 353,334 390,923 Latin America 24,492 21,536 68,695 58,359 Total international $ 202,901 $ 190,590 $ 558,436 $ 580,091 $ 593,043 $ 574,224 $ 1,702,683 $ 1,671,035 |