10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the Fiscal Year Ended January 1, 2022

 or

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File No. 1-9973

THE MIDDLEBY CORPORATION

(Exact name of Registrant as specified in its charter)

Delaware	36-3352497
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification Number)

1400 Toastmaster Drive,	Elgin,	Illinois	60120
(Address of principal executive offices)			(Zip Code)

Registrant's telephone number, including area code: (847) 741-3300

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading symbol(s)	Name of each exchange on which registered
Common stock,	par value $0.01 per share	MIDD	NASDAQ Global Select Market

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.     Yes ý    No ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.    

                                                Yes ¨    No ý

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.                             Yes ý     No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).                                                     Yes ý    No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “accelerated filer," "large accelerated filer," "smaller reporting company," and "emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of

the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.

7262(b)) by the registered public accounting firm that prepared or issued its audit report. ý

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ☐    No ý

The aggregate market value of the voting stock held by nonaffiliates of the Registrant as of July 3, 2021 was approximately $9,526,285,074.

The number of shares outstanding of the Registrant’s class of common stock, as of February 28, 2022, was 54,661,085 shares. 

Documents Incorporated by Reference

Part III of Form 10-K incorporates by reference the Registrant’s definitive proxy statement to be filed pursuant to Regulation 14A in connection with the 2022 annual meeting of stockholders.

THE MIDDLEBY CORPORATION

JANUARY 1, 2022

FORM 10-K ANNUAL REPORT

TABLE OF CONTENTS

		Page
	PART I
Item 1.	Business	1
Item 1A.	Risk Factors	11
Item 1B.	Unresolved Staff Comments	22
Item 2.	Properties	23
Item 3.	Legal Proceedings	25
Item 4.	Mine Safety Issues	25
	PART II
Item 5.	Market for Registrant's Common Equity, Related Stockholder Matters and  Issuer Purchases of Equity Securities	26
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	28
Item 7A.	Quantitative and Qualitative Disclosure about  Market Risk	43
Item 8.	Financial Statements and Supplementary Data	44
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	92
Item 9A.	Controls and Procedures	92
	PART III
Item 10.	Directors, Executive Officers and Corporate Governance	93
Item 11.	Executive Compensation	93
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	93
Item 13.	Certain Relationships and Related Transactions, and Director Independence	93
Item 14.	Principal Accountant Fees and Services	93
	PART IV
Item 15.	Exhibits and Financial Statement Schedule	94
Item 16.	Form 10-K Summary	96

PART I

Item 1.      Business

General

The Middleby Corporation, a Delaware corporation (“Middleby” or the “company”), through its operating subsidiary Middleby Marshall Inc., a Delaware corporation (“Middleby Marshall”) and its subsidiaries, is a leader in the design, manufacture, marketing, distribution, and service of a broad line of (i) foodservice equipment used in all types of commercial restaurants and institutional kitchens, (ii) food preparation, cooking, baking, chilling and packaging equipment for food processing operations, and (iii) premium kitchen equipment including ranges, ovens, refrigerators, ventilation, dishwashers and outdoor cooking equipment primarily used in the residential market.

Founded in 1888 as a manufacturer of baking ovens, Middleby Marshall Oven Company was acquired in 1983 by TMC Industries Ltd., a publicly traded company that changed its name in 1985 to The Middleby Corporation. The company has established itself as a leading provider of (i) commercial restaurant equipment, (ii) food processing equipment and (iii) residential kitchen equipment as a result of its acquisition of industry leading brands and through the introduction of innovative products within each of these segments.

The company's annual reports on Form 10-K, including this Form 10-K, as well as the company's quarterly reports on Form

10-Q, current reports on Form 8-K and amendments to such reports are available, free of charge, on the company's internet website, www.middleby.com. These reports are available as soon as reasonably practicable after they are electronically filed with or furnished to the Securities and Exchange Commission (“SEC”).

Business Segments and Products

The company conducts its business through three principal business segments: the Commercial Foodservice Equipment Group, the Food Processing Equipment Group and the Residential Kitchen Equipment Group. See Note 10 to the Consolidated Financial Statements for further information on the company's business segments.

Commercial Foodservice Equipment Group

The Commercial Foodservice Equipment Group has a broad portfolio of foodservice equipment, which enable 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.

This commercial foodservice equipment is marketed under a portfolio of sixty-eight brands, including Anets, APW Wyott, Bakers Pride, Beech, BKI, Blodgett, Blodgett Combi, Bloomfield, Britannia, Carter-Hoffmann, Celfrost, Concordia, CookTek, Crown, CTX, Desmon, Deutsche Beverage, Doyon, Eswood, EVO, Firex, Follett, Frifri, Globe, Goldstein, Holman, Houno, IMC, Imperial, Induc, Ink Kegs, Inline Filling Systems, Jade, JoeTap, Josper, L2F, Lang, Lincat, MagiKitch’n, Market Forge, Marsal, Meheen, Middleby Marshall, MPC, Newton CFV, Nieco, Nu-Vu, PerfectFry, Pitco, QualServ, RAM, Southbend, Ss Brewtech, Star, Starline, Sveba Dahlen, Synesso, Tank, Taylor, Thor, Toastmaster, TurboChef, Ultrafryer, Varimixer, Wells, Wild Goose and Wunder-Bar.

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, and IoT solutions.

1

Food Processing Equipment Group

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 bakery products, 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 and slicing/packaging 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, greater throughput and reduced labor costs through automation.

This food processing equipment is marketed under a portfolio of twenty-one brands, including Alkar, Armor Inox, Auto-Bake, Baker Thermal Solutions, Burford, Cozzini, CV-Tek, Danfotech, Drake, Glimek, Hinds-Bock, Maurer-Atmos, MP Equipment, Pacproinc, RapidPak, Scanico, Spooner Vicars, Stewart Systems, Sveba Dahlen, Thurne and Ve.Ma.C.

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, formers, 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, 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.

Residential Kitchen Equipment Group

The Residential Kitchen Equipment Group manufactures, sells and distributes kitchen equipment for the residential market. Principal product lines of this group are ranges, cookers, stoves, cooktops, microwaves, ovens, refrigerators, dishwashers, undercounter refrigeration, wine cellars, ice machines, beer dispensers, ventilation equipment, mixers, rotisseries and outdoor cooking equipment. These products are sold and marketed under a portfolio of twenty-two brands, including AGA, AGA Cookshop, Brava, Char-Griller, EVO, Kamado Joe, La Cornue, Leisure Sinks, Lynx, Marvel, Masterbuilt, Mercury, Novy, Rangemaster, Rayburn, Redfyre, Sedona, Stanley, TurboChef, U-Line, Varimixer and Viking.

Acquisition Strategy

The company has pursued a strategy to acquire and assemble a leading portfolio of brands and technologies for each of its three business segments. Over the past two years, the company has completed nine acquisitions to add to its portfolio of brands and technologies of the Commercial Foodservice Equipment Group and the Residential Kitchen Equipment Group. These acquisitions have added twelve brands to the Middleby portfolio and positioned the company as a leading provider of equipment in each respective industry. Significant acquisitions included Novy and Kamado Joe and Masterbuilt, acquired for a purchase price of $250.9 million and $400.7 million, net of cash acquired, respectively. All other acquisitions were acquired for an aggregate purchase price totaling $430.5 million, net of cash acquired.

Commercial Foodservice Equipment Group

•January 2020: The company completed its acquisition of the RAM fry dispenser product line ("RAM"), a leader in automated fry dispensers, located in Red Wing, Minnesota.

•February 2020: The company completed its acquisition of all of the capital stock of DBT Holdings, LLC ("Deutsche"), a leader in beverage brewing and processing systems located in Charlotte, North Carolina.

•December 2020: The company completed its acquisition of all of the capital stock of MEP FMS Holdings, LLC ("Wild Goose"), a leader in the craft beer industry focused on providing the best canning and bottling integrity in the industry, located in Louisville, Colorado and Venice, Florida.

•December 2020: The company completed its acquisition of the properties and assets used to conduct the business of United Foodservice Equipment Limited, a business that purchases and sells foodservice equipment located in Hong Kong, and its affiliate, Zhuhai United Foodservice Equipment Limited (collectively, "United Foodservice Equipment Zhuhai"), a business that manufactures and sells foodservice equipment located in China.

2

•September 2021: The company completed its acquisition of all of the capital stock of Imperial Commercial Cooking Equipment ("Imperial"), a manufacturer of ranges, fryers, ovens, countertop equipment, and other specialty cooking products for the commercial kitchen, located in Corona, California.

•November 2021: The company completed its acquisition of all of the assets of Gate CFV Solutions, Inc. and Newton CFV, LLC ("Newton CFV"), a business that manufactures and sells valves for beverage dispensing and other applications utilizing patented CFV technology that provides constant pressure, flow and ratio control, located in Sebastian, Florida.

Residential Kitchen Equipment Group

•July 2021: The company completed its acquisition of all of the capital stock of Novy Invest NV ("Novy"), a leader in cooker hoods and hobs, located in Belgium.

•December 2021: The company completed its acquisition of all of the capital stock of A&J Structure Services, LLC ("Char-Griller"), a leader in residential outdoor charcoal and gas cooking products, located in Atlanta, Georgia.

•December 2021: The company completed its acquisition of all of the member interests of Masterbuilt Holdings, LLC ("Kamado Joe and Masterbuilt") and their residential outdoor brands Kamado Joe and Masterbuilt, a leader in outdoor residential cooking equipment, located in the Atlanta, Georgia area.

The Customers and Market

Commercial Foodservice Equipment Industry

The company's end-user customers include: (i) fast food, fast casual and quick-service restaurants, including ghost kitchens, (ii) full-service restaurants, including casual-theme restaurants, (iii) retail outlets, such as convenience stores, supermarkets and department stores and (iv) public and private institutions, such as hotels, resorts, schools, hospitals, long-term care facilities, correctional facilities, stadiums, airports, corporate cafeterias, college and universities, military facilities and government agencies. The company's domestic sales are primarily through independent dealers and distributors and are marketed by the company's sales personnel and network of independent manufacturers' representatives. Many of the dealers in the U.S. belong to buying groups that negotiate sales terms with the company. Certain large multi-national restaurant and hotel chain customers have purchasing organizations that manage product procurement for their systems. Included in these customers are several large multi-national restaurant chains, which account for a meaningful portion of the company's business, although no single customer accounts for more than 10% of net sales.

Over the past several decades, the commercial foodservice equipment industry has enjoyed steady growth in the United States due to the development of new quick-service and casual-theme restaurant chain concepts, the expansion of foodservice into nontraditional locations such as convenience stores and retail outlets, as well as store equipment modernization driven by efforts to improve efficiencies within foodservice operations. In the international markets, foodservice equipment manufacturers have been experiencing growth due to expanding international economies and increased opportunity for expansion by U.S. chains into developing regions.

The company believes that the worldwide commercial foodservice equipment market has sales in excess of $35.0 billion. The company believes that continuing growth in demand for foodservice equipment will result from the development of new restaurant concepts in the U.S. and the expansion of U.S. and foreign chains into international markets, the replacement and upgrade of existing equipment and new equipment requirements resulting from menu changes, menu diversity and consumer food trends.

3

Food Processing Equipment Industry

The company's customers include a diversified base of leading food processors. Customers include several large international food processing companies, which account for a significant portion of the revenues of this business segment, although none of which is greater than 10% of net sales. A large portion of the company's revenues have been generated from producers of protein products such as bacon, salami, hot dogs, dinner sausages, poultry, lunchmeats and plant based/alternative protein and producers of bakery products, such as muffins, cookies, crackers, pies, bread and buns; however, the company believes that it can leverage its expertise and product development capabilities in thermal processing to organically grow into new end markets and offers unique full processing line solutions.

Food processing has quickly become a highly competitive landscape dominated by a few large conglomerates that possess a variety of food brands. The consolidation of food processing plants associated with industry consolidation drives a need for more flexible and efficient equipment that is capable of processing large volumes in quicker cycle times. In recent years, food processors have had to conform to the demands of “big-box” retailers and the restaurant industry, including, most importantly, greater product consistency and exact package weights. Food processors are beginning to realize that their old equipment is no longer capable of efficiently producing adequate uniformity in the large product volumes required, and they are turning to equipment manufacturers that offer better process control for proven product consistency, innovative packaging designs and other solutions. To protect their own brands and reputations, retailers and large restaurant chains are also dictating food safety standards that are often stricter than government regulations.

A number of factors, including raw material prices, cost of ownership of their equipment, labor and health care costs, are driving food processors to focus on ways to improve their generally thin profitability margins. In order to increase the profitability and efficiency in processing plants, food processors pay increasingly more attention to the performance of their machinery and the flexibility in the functionality of the equipment. Food processors are continuously looking for ways to make their plants safer and reduce labor-intensive activities. Food processors have begun to recognize the value of new technology as an important vehicle to drive productivity and profitability in their plants. Due to customer requirements, food processors are expected to continue to demand new and innovative equipment that addresses food safety, food quality, automation, flexibility and sustainability.

Improving living standards in developing countries is spurring increased worldwide demand for pre-cooked and convenience food products. As industrializing countries create more jobs, consumers in these countries will have the means to buy pre-cooked food products. In industrialized regions, such as Western Europe and the U.S., consumers are demanding more pre-cooked and convenience food products, such as deli tray variety packs, frozen food products and ready-to-eat varieties of ethnic foods.

The global food processing equipment industry is highly fragmented, large and growing. The company estimates demand for food processing equipment is in excess of $55.0 billion worldwide.

Residential Kitchen Equipment Industry

The company’s end-users include customers with high-end residential kitchens as well as retail dealers of residential cooking equipment. The market potential for such equipment has continued to broaden due to an increase in interest from the consumer to have professionally styled appliances with commercial inspired, higher performing features in their home. The kitchen has been the main area in which consumers have invested the most money over the past several decades to increase the personal satisfaction and the value of their home. Other important factors which affect the market size and growth include the level of new home starts, increase in home renovations and general macro-economic factors. Macro-economic factors such as GDP growth, employment rates, inflation and consumer confidence, which impact the overall economy, impact the residential kitchen equipment industry and cause variability in the revenues at this segment. The residential kitchen appliance industry is estimated to be in excess of $260 billion worldwide. 

Backlog

Commercial Foodservice Equipment Group

The backlog of orders for the Commercial Foodservice Equipment Group was $881.9 million at January 1, 2022, most all of which is expected to be filled during 2022. The Commercial Foodservice Equipment Group's backlog was $238.2 million at January 2, 2021. The acquired Imperial and Newton CFV businesses accounted for $16.3 million of the backlog. The backlog is not necessarily indicative of the level of business expected for the year and the growth in our backlog represents impacts from COVID-19 pandemic related market conditions and supply chain challenges.

4

Food Processing Equipment Group

The backlog of orders for the Food Processing Equipment Group was $187.5 million at January 1, 2022, which is expected to be filled by the end of fiscal 2023. The Food Processing Equipment Group's backlog was $131.2 million at January 2, 2021.

Residential Kitchen Equipment Group

The backlog of orders for the Residential Kitchen Equipment Group was $443.4 million at January 1, 2022, all of which is expected to be filled during 2022. The acquired Novy, Char-Griller, and Kamado Joe and Masterbuilt businesses accounted for $152.4 million of the backlog. The Residential Kitchen Equipment Group's backlog was $153.3 million at January 2, 2021.

Marketing and Distribution

Commercial Foodservice Equipment Group

Middleby's products and services are marketed in the U.S. and in over 100 countries through a combination of the company's sales and marketing personnel, together with an extensive network of independent dealers, distributors, consultants, sales representatives and agents.

In the United States, the company distributes its products to independent end-users primarily through a network of non-exclusive dealers nationwide, who are supported by manufacturers' marketing representatives. Sales are made direct to certain large restaurant chains that have established their own procurement and distribution organization for their franchise system. The company's relationships with major restaurant chains are primarily handled through an integrated effort of top-level executive and sales management at the corporate and business division levels to best serve each customer's needs. International sales are primarily made through a network of company owned and local independent distributors and dealers.

Food Processing Equipment Group

The company maintains a direct sales force to market the brands and maintain direct relationships with each of its customers. In North America, the company employs regional sales managers, each with responsibility for a group of customers and a particular region. This sales force is complimented with involvement of executive management to maintain relationships with customer executives and facilitate coordination amongst the brands for the key global accounts. Internationally, the company maintains sales and distribution offices along with global sales managers supported by a network of independent sales representatives.

The company’s sale process is highly consultative due to the highly technical nature of the equipment, especially in the case of the full processing line solutions. During a typical sales process, sales people make several visits to the customer’s facility to conceptually discuss the production requirements, footprint and configuration of the proposed equipment. The company employs a technically proficient sales force, many of whom have previous technical experience with the company as well as education backgrounds in food science. The sales strategy of the company is fostered with Protein and Bakery Innovation Centers in Chicago, Dallas and India, that are available for development with technical performance and product testing for customers.

Residential Kitchen Equipment Group

The company’s products are marketed through a network of distributors, dealers, designers, select online retailers and home builders to the residential customers. The company markets and sells its products to these channels through a company-employed sales force. The company’s products are distributed through a combination of an independent network of distributors and its wholly owned distribution operations. The company's wholly owned distribution operations include two primary customer support centers and regional logistic warehouse operations, which stock products and service parts for the respective region. To supplement the sales and distribution network, the company has invested in Middleby branded residential showrooms in Chicago, New York City, Orange County, California and Dallas.

Marketing support is provided to and coordinated with its network of dealers, designers, and home builders sales partners to allow for coordinated efforts to market jointly to the end-user customers. The company in certain cases offers incentive based financial programs to invest in local marketing activities with these sales partners.

5

Services and Product Warranty

The company is an industry leader in equipment installation programs and after-sales support and service. The company provides a warranty on its products typically for a one-year period and in certain instances greater periods. The emphasis on global service increases the likelihood of repeat business and enhances Middleby's image as a partner and provider of quality products and services.

Commercial Foodservice Equipment Group

The company's domestic service network consists of over 100 authorized service parts distributors and 3,000 independent certified technicians who have been formally trained and certified by the company through its factory training school and on-site installation training programs. Technicians work through service parts distributors, which are required to provide around-the-clock service. The company provides real-time technical support to the technicians in the field through factory-based technical service engineers. The company maintains sufficient service parts inventory to ensure short lead times for service calls.

Food Processing Equipment Group

The company maintains a technical service group of employees that oversees and performs installation and startup of equipment and completes warranty and repair work. This technical service group provides services for customers both domestically and internationally. Service technicians are trained regularly on new equipment to ensure the customer receives a high level of customer service. From time to time the company utilizes trained third-party technicians supervised by company employees to supplement company employees on large projects.

Residential Kitchen Equipment Group

The company maintains a network of independent authorized service agents throughout North America. Authorized service agents are supported and trained by regional factory-support centers of the company. Trained technical support personnel are available to support independent service agents with technical information and assist in repair issues. The factory-support centers also dispatch service technicians to the customer and provide follow-up and monitoring to ensure field issues are resolved. The company's independent service agents maintain a stock of factory-supplied parts to allow for a high first-call completion rate for service and warranty repairs. The company maintains a substantial amount of service parts at each of its manufacturing operations and distribution operations to provide for quick ship of parts to service agents and end-user customers when necessary.

Internationally, the company has a network of company owned and independent distributors that provide sales and technical service support in their respective markets. These distributors are required to have a team of factory-trained service technicians and maintain a required stock of service parts to support the equipment in the market. The factory supports the international distributors with technical trainers which travel to the various markets to provide on-hands training and monitoring of the distributor service operations.

Competition

The commercial foodservice, food processing and residential kitchen equipment industries are highly competitive and fragmented. Within a given product line the company may compete with a variety of companies, including companies that manufacture a broad line of products and those that specialize in a particular product category. Competition is based upon many factors, including brand recognition, product features, reliability, quality, price, delivery lead times, serviceability and after-sale service. The company believes that its ability to compete depends on strong brand equity, exceptional product performance, short lead-times and timely delivery, competitive pricing and superior customer service support. In the international markets, the company competes with U.S. manufacturers and numerous global and local competitors.

6

The company believes that it is one of the largest multiple-line manufacturers of commercial kitchen, food processing and residential kitchen equipment in the U.S. and worldwide although some of its competitors are units of operations that are larger than the company and possess greater financial and personnel resources. Among the company's major competitors to the Commercial Foodservice Equipment Group are the Ali Group S.r.l.; Duke Manufacturing; AB Electrolux; Haier Group; Hoshizaki America, Inc.; Hobart Corporation and Vulcan-Hart, subsidiaries of Illinois Tool Works Inc.; Marmon Foodservice Technologies, a Bershire Hathaway Company; Midea Group; Panasonic Corporation; Rational AG; SMEG S.p.A.; and Welbilt, Inc. Major competitors to the Food Processing Equipment Group include AMF Bakery Systems, The GEA Group, JBT Technologies, Marel, and Provisur. The residential kitchen appliance sector is highly competitive and includes a number of large global competitors including, AB Electrolux, GE Appliances, LG Corporation, Panasonic Corporation, Samsung Group, Weber Inc., and Whirlpool Corporation. However, within the premium segment of this kitchen equipment market, there are fewer full line competitors and the company’s competition includes Bertazzoni; Bosch, Gaggenau, and Thermador, subsidiaries of Bosch Siemens; Dacor, subsidiary of Samsung Electronics America; Haier Group; Midea Group; Miele; SMEG S.p.A.; and Sub-Zero and Wolf, subsidiaries of Sub-Zero Group, Inc.

Manufacturing and Quality Control

The company’s manufacturing operations provide for an expertise in the design and production of specific products for each of the three business segments. The company has from time to time either consolidated manufacturing facilities producing similar product or transferred production of certain products to another existing operation with a higher level of expertise or efficiency.

The Commercial Foodservice Equipment Group manufactures its products in twenty-two domestic and seventeen international production facilities. The Food Processing Equipment Group manufactures its products in eleven domestic and six international production facilities. The Residential Kitchen Equipment Group manufactures its products in six domestic and five international production facilities. See Item 2. Properties for a list of the principal domestic and international manufacturing facilities by segment.

Metal fabrication, finishing, sub-assembly and assembly operations are typically conducted at each manufacturing facility. Equipment installed at individual manufacturing facilities includes numerically controlled turret presses and machine centers, shears, press brakes, welding equipment, polishing equipment, CAD/CAM systems and product testing and quality assurance measurement devices. The company's CAD/CAM systems enable virtual electronic prototypes to be created, reviewed and refined before the first physical prototype is built.

Detailed manufacturing drawings are quickly and accurately derived from the model and passed electronically to manufacturing for programming and optimal parts nesting on various numerically controlled punching cells. The company believes that this integrated product development and manufacturing process is critical to assuring product performance, customer service and competitive pricing.

The company has established comprehensive programs to ensure the quality of products, to analyze potential product failures and to certify vendors for continuous improvement. Products manufactured by the company are tested prior to shipment to ensure compliance with company standards.

Sources of Supply

The company purchases its raw materials and component parts from a number of suppliers. The majority of the company’s material purchases are standard commodity-type materials, such as stainless steel, electrical components and hardware. These materials and parts generally are available in adequate quantities from numerous suppliers. Some component parts are obtained from sole sources of supply. In such instances, management believes it can substitute other suppliers as required. The majority of fabrication is done internally through the use of automated equipment. Certain equipment and accessories are manufactured by other suppliers for sale by the company. The company believes it enjoys good relationships with its suppliers. The present sources of supply have been impacted by COVID-19 pandemic market conditions, however are adequate for the company's present and anticipated future requirements.

7

Research and Development

The company believes its future success will depend in part on its ability to develop new products and to improve existing products. Much of the company's research and development efforts at the Commercial Foodservice Equipment Group, the Food Processing Equipment Group and the Residential Kitchen Equipment Group are directed to the development and improvement of products designed to reduce cooking and processing time, increase capacity or throughput, reduce energy consumption, minimize labor costs, improve product yield and improve customer, employee and environmental safety, while maintaining consistency and quality of cooking production and food preparation. The company's efforts have also been focused on IoT solutions which allow customers to connect, analyze and control equipment, while delivering operational efficiencies. The company has identified these issues as key concerns for most of its customers. The company often identifies product improvement opportunities by working closely with customers on specific applications. Most research and development activities are performed by the company's technical service and engineering staff located at each manufacturing location. On occasion, the company will contract outside engineering firms to assist with the development of certain technical concepts and applications. See Note 3(n) to the Consolidated Financial Statements for further information on the company's research and development activities.

Seasonality

The company’s revenues at the Commercial Foodservice Equipment Group historically have been slightly stronger in the second and third quarters due to increased purchases from customers involved with the catering business and institutional customers, particularly schools, during the summer months. Revenues at the Residential Kitchen Equipment Group are historically stronger in the second and third quarters, due to increased purchases of outdoor cooking equipment and greater new home construction and remodels during the summer months, and the fourth quarter, due to increased holiday purchases in the European markets. As a result of the COVID-19 pandemic, typical patterns of seasonality as previously mentioned were disrupted.

Trademarks, Patents and Licenses

The company has developed, acquired and assembled a leading portfolio of trademarks and trade names. The company believes that these trademarks and trade names help the company compete in the marketplace due to their recognition with customers, restaurant operators, distribution partners, sales and service agents, and foodservice consultants that specify foodservice equipment.

The company's leading portfolio of trade names of its Commercial Foodservice Equipment Group include Anets, APW Wyott, Bakers Pride, Beech, BKI, Blodgett, Blodgett Combi, Bloomfield, Britannia, Carter-Hoffmann, Celfrost, Concordia, CookTek, Crown, CTX, Desmon, Deutsche Beverage, Doyon, Eswood, EVO, Firex, Follett, Frifri, Globe, Goldstein, Holman, Houno, IMC, Imperial, Induc, Ink Kegs, Inline Filling Systems, Jade, JoeTap, Josper, L2F, Lang, Lincat, MagiKitch’n, Market Forge, Marsal, Meheen, Middleby Marshall, MPC, Newton CFV, Nieco, Nu-Vu, PerfectFry, Pitco, QualServ, RAM, Southbend, Ss Brewtech, Star, Starline, Sveba Dahlen, Synesso, Tank, Taylor, Thor, Toastmaster, TurboChef, Ultrafryer, Varimixer, Wells, Wild Goose and Wunder-Bar.

The company’s leading portfolio of trade names of its Food Processing Equipment Group include Alkar, Armor Inox, Auto-Bake, Baker Thermal Solutions, Burford, Cozzini, CV-Tek, Danfotech, Drake, Glimek, Hinds-Bock, Maurer-Atmos, MP Equipment, Pacproinc, RapidPak, Scanico, Spooner Vicars, Stewart Systems, Sveba Dahlen, Thurne and Ve.Ma.C.

The company’s leading portfolio of trade names of its Residential Kitchen Equipment Group include AGA, AGA Cookshop, Brava, Char-Griller, EVO, Kamado Joe, La Cornue, Leisure Sinks, Lynx, Marvel, Masterbuilt, Mercury, Novy, Rangemaster, Rayburn, Redfyre, Sedona, Stanley, TurboChef, U-Line, Varimixer and Viking.

The company holds a broad portfolio of patents and licenses covering technology and applications related to various products, equipment and systems. Management believes the expiration of any one of these patents would not have a material adverse effect on the overall operations or profitability of the company.

8

Human Capital

As of January 1, 2022, 10,624 persons were employed by the company and its subsidiaries among the various groups as described below. 6,104 employees are located in the United States and the remaining employees are located outside of the United States. Unionized employees accounted for approximately 5% of the company’s workforce as of January 1, 2022. Management believes that the relationships between employees and management are good.

The company believes its success is a direct result of the people employed around the world. The company strives to create a culture that encourages and celebrates collaboration, creativity and confidence while maintaining an environment based on ethical values. The goal is to create a workplace that enables employees to develop their individual paths toward their career goals and encourages a long-term working relationship with the company.

Commercial Foodservice Equipment Group

As of January 1, 2022, 6,078 persons were employed within the Commercial Foodservice Equipment Group. Of this amount, 2,430 were management, administrative, sales, engineering and supervisory personnel; 3,213 were hourly production non-union workers; and 435 were hourly production union members. Included in these totals were 2,465 individuals employed outside of the United States, of which 1,156 were management, sales, administrative and engineering personnel, 1,163 were hourly production non-union workers and 146 were hourly production union workers, who participate in an employee cooperative. At its Windsor, California facility, the company has a union contract with the Sheet Metal Workers International Association that expires on December 31, 2023. At its Elgin, Illinois facility, the company has a union contract with the International Brotherhood of Teamsters that expires on July 31, 2022. At its Easton, Pennsylvania facility, the company has a union contract with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union that expires on May 4, 2023. The company also has a union workforce at its manufacturing facility in the Philippines, under a contract that expires on June 30, 2026. Management believes that the relationships between employees, unions and management are good.

Food Processing Equipment Group

As of January 1, 2022, 1,593 persons were employed within the Food Processing Equipment Group. Of this amount, 831 were management, administrative, sales, engineering and supervisory personnel; 633 were hourly production non-union workers; and 129 were hourly production union members. Included in these totals were 703 individuals employed outside of the United States, of which 411 were management, sales, administrative and engineering personnel and 292 were hourly production non-union workers. At its Lodi, Wisconsin facility, the company has a contract with the International Association of Bridge, Structural, Ornamental and Reinforcing Ironworkers that expires on December 31, 2024. At its Algona, Iowa facility, the company has a union contract with the United Food and Commercial Workers that expires on December 31, 2022. Management believes that the relationships between employees, unions and management are good.

Residential Kitchen Equipment Group

As of January 1, 2022, 2,902 persons were employed within the Residential Kitchen Equipment Group. Of this amount, 1,153 were management, administrative, sales, engineering and supervisory personnel and 1,749 were hourly production workers. Included in these totals were 1,352 individuals employed outside of the United States, of which 542 were management, sales, administrative and engineering personnel and 810 were hourly non-union production workers. Management believes that the relationships between employees and management are good.

Corporate

As of January 1, 2022, 51 persons were employed at the corporate office.

Employee Advancement

The company believes offering opportunities for career development within the company is integral to building and retaining an outstanding workforce. The company is dedicated to the professional development of all employees. Through a commitment to a diverse and engaging culture, the company is able to build a platform that promotes equal opportunities for advancement for everyone.

9

Employee Safety

The company is dedicated to providing a safe and healthy workplace by operating in accordance with established health and safety protocols. In response to the COVID-19 pandemic, the company implemented procedures at its manufacturing locations and offices, including enhanced workplace sanitation, travel minimization, social distancing, staggered shifts and established work-at-home protocols for non-production employees.

Diversity

Fostering a culture that supports diversity among employees as well as professional growth and advancement is an integral part of the company’s identity. The company has a commitment to build its workforce from diverse backgrounds, experiences and talents among race, religion, language, nationality, disability, age and gender. Through our diverse workforce the company is able to attract the best talent, which allows better alignment with customers and creative and efficient development of new products for the marketplace. As a global corporation, the company embraces and celebrates differences and endeavors to cultivate an environment where diversity and inclusion are core values of the organization.

A Focus on Ethics

The company is dedicated to promoting integrity, honesty, and professionalism in all of the business activities within the company. The company strongly believes that business success is a direct correlation of its reputation for fairness and integrity. Accordingly, it is essential that the company’s board members and employees practice the highest standards of conduct and professionalism in any interactions with stakeholders including customers, creditors, stockholders, suppliers and other employees.

10

Item 1A.      Risk Factors

The company’s business, results of operations, cash flows and financial condition are subject to various risks including, but not limited to, those set forth below. Any of these risks, as well as risks not currently known to the company or that are currently deemed to be immaterial, may adversely affect the company’s business, results of operations, cash flows and financial condition. These risk factors should be carefully considered together with the other information in this Annual Report on Form 10-K, including the risks and uncertainties described under the heading Special Note Regarding Forward-Looking Statements.

Economic Risks

Current and future economic conditions could adversely affect the company’s business and financial performance.

The company’s operating results are impacted by the health of the North American, European, Asian and Latin American economies. The company’s business and financial performance, including collection of its accounts receivable, may be adversely affected by current and future economic conditions that may cause a decline in business and consumer spending, a reduction in the availability of credit and decreased growth of its existing customers, resulting in customers electing to delay the replacement of aging equipment. Higher energy costs, rising interest rates, weakness in the residential construction, housing and home improvement markets, financial market volatility, inflation, recession and acts of terrorism may also adversely affect the company’s business and financial performance. Additionally, the company may experience difficulties in scaling its operations due to economic pressures in the U.S. and international markets.

Uncertainty surrounding the terms of the United Kingdom’s withdrawal from the European Union may have a negative effect on global economic conditions, financial markets or the Company’s business.

In June 2016, a majority of voters in the United Kingdom elected to withdraw from the European Union in a national referendum. On January 31, 2020, the U.K. officially exited the European Union and entered into a transition period to negotiate the final terms of Brexit. The transition period ended on December 31, 2020. Although the U.K. and the European Union have entered into a trade and cooperation agreement (the “TCA”), which came into full force on May 1, 2021, significant parts of the U.K. economy are not addressed in detail by the TCA and a number of issues have been the subject of further bilateral negotiations since the beginning of 2021. The potential future impact of Brexit remains unclear and could adversely impact certain areas of labor and trade in addition to creating further short-term uncertainty and currency volatility. Changes to the trading relationship between the U.K. and the European Union could result in increased cost of goods imported into and exported from the U.K. and may decrease the profitability of the company's U.K. and other operations. Additional currency volatility could drive a weaker British pound, which increases the cost of goods imported into the U.K. and may decrease the profitability of the company's U.K. operations. Currency exchange rates for the British pound and the euro with respect to each other and to the U.S. dollar may be negatively affected by Brexit, which could cause volatility in our financial results. With a range of outcomes still possible, the impact from Brexit remains uncertain and will depend, in part, on the final outcome of tariff, trade, regulatory and other negotiations.

The company is subject to currency fluctuations and other risks from its operations outside the United States.

The company has manufacturing and distribution operations located in Asia, Europe and Latin America. The company’s operations are subject to the impact of economic downturns, political instability and foreign trade restrictions, which may adversely affect the company’s business, financial condition and operating results. The company anticipates that international sales will continue to account for a significant portion of consolidated net sales in the foreseeable future. Some sales and operating costs of the company’s foreign operations are realized in local currencies, and an increase in the relative value of the U.S. dollar against such currencies would lead to a reduction in consolidated sales and earnings. Additionally, foreign currency exposures are not fully hedged, and there can be no assurance that the company’s future results of operations will not be adversely affected by currency fluctuations. Furthermore, currency fluctuations may affect the prices paid to the company’s suppliers for materials the company uses in production. As a result, operating margins may also be negatively impacted by worldwide currency fluctuations that result in higher costs for certain cross-border transactions.

11

Business and Operational Risks

The COVID-19 pandemic has adversely impacted, and likely will continue to, adversely impact and pose risks to the company, the nature and extent of which are highly uncertain and unpredictable.

The company is monitoring the global outbreak of the COVID-19 pandemic and taking steps to mitigate the risks posed by its spread, including working with its customers, employees, suppliers and other stakeholders. The pandemic has adversely affected, and is expected to continue to adversely affect, the company's financial results, condition and outlook. Certain elements of the company's business (including its supply chain, distribution systems, production levels and research and development activities) and operations have been negatively impacted due to significant portions of the company's workforce being unable to work effectively due to quarantines, government orders and guidance, facility closures, illness, travel restrictions, implementation of precautionary measures and other restrictions. The company also has experienced, and expects to continue to experience, volatility in demand given disruptions in global health, economic and market conditions, consumer behavior and global restaurant operations. If the pandemic continues and conditions worsen, the company expects to experience additional adverse impacts on operational and commercial activities, costs, customer orders and purchases and collections of accounts receivable, which may be material, and the extent of these exposures remains uncertain even if conditions begin to improve. The pandemic has also increased the risk related to the company's ability to ensure business continuity during a potential disruption, including increased cybersecurity attacks related to the work-from-home environment. Furthermore, the pandemic has impacted and may further impact the broader economies of affected countries, including adversely impacting economic growth, the proper functioning of financial and capital markets, foreign currency exchange rates, inflation and interest rates, all of which could continue to negatively impact the company. Due to the global breadth of the pandemic's spread and the range of governmental and community reactions, there is uncertainty around the pandemic's ultimate impact and the timing of recovery, including as a result of the emergence of new COVID-19 variants, uncertainty regarding vaccine effectiveness on certain variants and vaccine availability. Therefore, the pandemic could lead to an extended disruption of economic activity and the impact on the company's consolidated results of operations, financial position and cash flows could be material. In addition, the continuation or a resurgence of the pandemic could exacerbate the other risk factors.

The company’s level of indebtedness could adversely affect its business, results of operations and growth strategy.

The company now has and may continue to have a significant amount of indebtedness. At January 1, 2022, the company had $2.4 billion of borrowings and $2.7 million in letters of credit outstanding. In August 2020, the company issued $747.5 million aggregate principal amount of 1.00% Convertible Senior Notes due 2025 (the "Convertible Notes"), which bear interest semi-annually in arrears and mature on September 1, 2025 unless they are redeemed, repurchased or converted prior to such date in accordance with their terms. Upon conversion, the company can elect to pay or deliver, cash, shares of common stock or a combination of cash and shares of common stock, in respect of the remainder, if any, of the company's conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted. Under certain circumstances, the holders of the Convertible Notes may require the company to repay all or a portion of the principal and interest outstanding under the Convertible Notes in cash prior to the maturity date, which could have an adverse effect on the company's financial results.

To the extent the company requires additional capital resources, there can be no assurance that such funds will be available on favorable terms, or at all. The unavailability of funds could have a material adverse effect on the company’s financial condition, results of operations and ability to expand the company’s operations.

The company’s level of indebtedness could have adverse consequences to its business and operations, including the following:

•the company may be unable to obtain additional financing for working capital, capital expenditures, product development, acquisitions and other general corporate purposes;

•a significant portion of the company’s cash flow from operations must be dedicated to debt service, which reduces the amount of cash the company has available for other purposes;

•the company may be more vulnerable in the event of a downturn in the company’s business or general economic and industry conditions and have limited flexibility in planning for, or reacting to, changes in its business and/or industry;

•the company may be disadvantaged compared to its competitors that are less leveraged and thereby have greater financial flexibility; and

•the company may be restricted in its ability to make strategic acquisitions and to pursue new business opportunities.

12

The company’s current credit agreement limits its ability to conduct business, which could negatively affect the company’s ability to finance future capital needs and engage in other business activities.

The covenants in the company’s existing credit agreement contain a number of significant limitations on its ability to, among other things:

•pay dividends;

•incur additional indebtedness;

•create liens on the company’s assets;

•engage in new lines of business;

•make investments;

•merge or consolidate; and

•acquire, dispose of, or lease assets.

These restrictive covenants, among others, could negatively affect the company’s ability to finance its future capital needs, engage in other business activities or withstand a future downturn in the company’s business or the economy.

Under the company’s current credit agreement, the company is required to maintain certain specified financial ratios and meet financial tests, including certain ratios of secured leverage and interest coverage. The company’s ability to comply with these requirements may be affected by matters beyond its control, and, as a result, there can be no assurance that the company will be able to meet these ratios and tests. A breach of any of these covenants would prevent the company from being able to draw under the company's revolver and would result in a default under the company’s current credit agreement. In the event of a default under the company’s current credit agreement, the lenders could terminate their commitments and declare all amounts borrowed, together with accrued interest and other fees, to be immediately due and payable. Borrowings under other debt instruments that contain cross-acceleration or cross-default provisions may also be accelerated and become due and payable at such time. The company may be unable to pay these debts in these circumstances.

The conditional conversion feature of the Convertible Notes, if triggered, may adversely affect the company's financial condition and operating results.

In the event the conditional conversion feature of the Convertible Notes is triggered, holders of the Convertible Notes will be entitled to convert their Convertible Notes at any time during specified periods at their option. If one or more holders elect to convert their Convertible Notes, unless the company elects to satisfy the conversion obligation by delivering solely shares of its common stock (other than paying cash in lieu of delivering any fractional share), the company would be required to settle any converted principal through the payment of cash, which could adversely affect the company's liquidity. To the extent the company satisfies the conversion obligation by delivering shares of common stock, the company would be required to deliver a significant number of shares, which would cause dilution to its existing stockholders. In addition, even if holders do not elect to convert their Convertible Notes in such circumstances, the company could be required under applicable accounting rules to reclassify all or a portion of the outstanding principal of the Convertible Notes as a current rather than long-term liability, which would result in a material reduction in net working capital.

The capped call transactions expose the company to counterparty risk and may affect the value of the company's common stock.

In connection with the Convertible Notes, the company has entered into and may in the future enter into, capped call transactions with certain financial institutions, referred to as the capped call counterparties. The capped call transactions are expected generally to reduce or offset the potential dilution upon conversion of the Convertible Notes and/or offset any cash payments the company is required to make in excess of the principal amount of the Convertible Notes, as the case may be, with such reduction and/or offset subject to a cap. From time to time, the capped call counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivative transactions with respect to the company's common stock and/or purchasing or selling the company's common stock in secondary market transactions prior to the maturity of the Convertible Notes. Any such activity could cause a decrease in the market price of the company's common stock.

13

In addition, the capped call counterparties are financial institutions, and the company is subject to the risk that one or more of the capped call counterparties may default or otherwise fail to perform, or may exercise certain rights to terminate, their obligations under the capped call transactions. The company's exposure to the credit risk of the capped call counterparties is not secured by any collateral. If a capped call counterparty becomes subject to insolvency proceedings, the company will become an unsecured creditor in those proceedings with a claim equal to the exposure at the time under such transaction. The company's exposure will depend on many factors but, generally, the exposure will increase if the market price or the volatility of the company's common stock increases. In addition, upon a default or other failure to perform, or a termination of obligations, by a capped call counterparty, the company may suffer more dilution than currently anticipated with respect to the company's common stock. The company can provide no assurances as to the financial stability or viability of the capped call counterparties. 

Fluctuations in interest rates could adversely affect the company's results of operations and financial position.

The company's profitability may be adversely affected during any periods of unexpected or rapid increases in interest rates. The company maintains a revolving credit facility, which, at January 1, 2022, bore interest at 1.375% above LIBOR per annum. A significant increase in any of the forgoing rates would significantly increase the company's cost of borrowings, reduce the availability and increase the cost of obtaining new debt and refinancing existing indebtedness and/or negatively impact the market price of the company's common stock. For additional detail related to this risk, see Part II, Item 7A, "Quantitative and Qualitative Disclosure About Market Risk."

The company has a significant amount of goodwill and indefinite life intangibles could suffer losses due to asset impairment charges.

The company’s balance sheet includes a significant amount of goodwill and indefinite life intangible assets, which represent approximately 35% and 21%, respectively, of its total assets as of January 1, 2022. The excess of the purchase price over the fair value of assets acquired, including identifiable intangible assets, and liabilities assumed in conjunction with acquisitions is recorded as goodwill. In accordance with Accounting Standards Codification (“ASC”) 350 Intangibles-Goodwill and Other, the company’s long-lived assets (including goodwill and other intangibles) are reviewed for impairment annually and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In assessing the recoverability of long-lived assets, the company considers changes in economic conditions and makes assumptions regarding estimated future cash flows and other factors. Various uncertainties, including continued adverse conditions in the capital markets or changes in general economic conditions, could impact the future operating performance at one or more of the company’s businesses, which could significantly affect the company’s valuations and could result in additional future impairments. Also, estimates of future cash flows are judgments based on the company’s experience and knowledge of operations. These estimates could be significantly impacted by many factors, including changes in global and local business and economic conditions, operating costs, inflation, competition, and consumer and demographic trends. If the company’s estimates or the underlying assumptions change in the future, the company may be required to record impairment charges that, if incurred, could have a material adverse effect on the company’s reported net earnings.

The company's defined benefit pension plans are subject to financial market risks that could adversely affect the company's results of operations and cash flows.

The performance of the financial markets and interest rates impact our defined benefit pension plan expenses and funding obligations. Significant changes in market interest rates, decreases in fair value of plan assets, investment losses on plan assets, relevant legislative and regulatory changes relating to defined benefit plan funding and changes in interest rates may increase the company's funding obligations and adversely impact its results of operations and cash flows. In addition, upward pressure on the cost of providing healthcare coverage to current employees and retirees may increase the company's future funding obligations and adversely affect its results of operations and cash flows.

14

The company faces intense competition in the commercial foodservice, food processing, and residential kitchen equipment industries and failure to successfully compete could impact the company’s results of operations and cash flows.

The company operates in highly competitive industries. In each of the company’s three business segments, competition is based on a variety of factors including product features and design, brand recognition, reliability, durability, technology, energy efficiency, breadth of product offerings, price, customer relationships, delivery lead-times, serviceability and after-sale service. The company has numerous competitors in each business segment. Many of the company’s competitors are substantially larger and enjoy substantially greater financial, marketing, technological and personnel resources. These factors may enable them to develop similar or superior products, to provide lower cost products and to carry out their business strategies more quickly and efficiently than the company can. In addition, some competitors focus on particular product lines or geographic regions or emphasize their local manufacturing presence or local market knowledge. Some competitors have different pricing structures and may be able to deliver their products at lower prices. Although the company believes that the performance and price characteristics of its products will provide competitive solutions for its customers’ needs, there can be no assurance that the company’s customers will continue to choose the company’s products over products offered by its competitors.

Further, the markets for the company’s products are characterized by changing technology and evolving industry standards. The company’s ability to compete successfully will depend, in large part, on its ability to enhance and improve its existing products, to continue to bring innovative products to market in a timely fashion, to adapt the company’s products to the needs and standards of its current and potential customers and to continue to improve operating efficiencies and lower manufacturing costs. Moreover, competitors may develop technologies or products that render the company’s products obsolete or less marketable. If the company is unable to successfully compete in this highly competitive environment, the company’s business, financial condition and operating results will be materially harmed.

The company is subject to risks associated with developing products and technologies, which could delay product introductions and result in significant expenditures.

The product, program and service needs of the company’s customers change and evolve regularly, and the company invests substantial amounts in research and development efforts to pursue advancements in a wide range of technologies, products and services. Also, the company continually seeks to refine and improve upon the performance, utility and physical attributes of its existing products and to develop new products. As a result, the company’s business is subject to risks associated with new product and technological development, including unanticipated technical or other problems, meeting development, production, certification and regulatory approval schedules, execution of internal and external performance plans, availability of supplier- and internally-produced parts and materials, performance of suppliers and subcontractors, hiring and training of qualified personnel, achieving cost and production efficiencies, identification of emerging technological trends in the company’s target end-markets, validation of innovative technologies, the level of customer interest in new technologies and products, and customer acceptance of the company’s products and products that incorporate technologies that the company develops. These factors involve significant risks and uncertainties. Also, any development efforts divert resources from other potential investments in the company’s businesses, and these efforts may not lead to the development of new technologies or products on a timely basis or meet the needs of the company’s customers as fully as competitive offerings. In addition, the markets for the company’s products or products that incorporate the company’s technologies may not develop or grow as the company anticipates. The company or its suppliers and subcontractors may encounter difficulties in developing and producing these new products and services, and may not realize the degree or timing of benefits initially anticipated. Due to the design complexity of the company's products, the company may in the future experience delays in completing the development and introduction of new products. Any delays could result in increased development costs or deflect resources from other projects. The occurrence of any of these risks could cause a substantial change in the design, delay in the development, or abandonment of new technologies and products. Consequently, there can be no assurance that the company will develop new technologies superior to the company’s current technologies or successfully bring new products to market.

Additionally, there can be no assurance that new technologies or products, if developed, will meet the company’s current price or performance objectives, be developed on a timely basis, or prove to be as effective as products based on other technologies. The inability to successfully complete the development of a product, or a determination by the company, for financial, technical or other reasons, not to complete development of a product, particularly in instances in which the company has made significant expenditures, could have a material adverse effect on the company’s financial condition and operating results.

15

The company depends on key customers for a material portion of its revenues. As a result, changes in the purchasing patterns or loss of one or more key customers could adversely impact the company’s operating results.

Many of the company’s key customers are large restaurant chains and major food processing companies. The demand for the company’s equipment can vary from period to period depending on the company’s customers’ internal growth plans, construction, seasonality and other factors. In addition, an adverse change to the financial condition of key customers could cause such key customers to open fewer facilities and defer purchases of new equipment for existing operations or otherwise change the purchasing patterns of such key customers. Any of these conditions or the loss of key customers could have a material adverse effect on the company’s financial condition and results of operations.

Price increases in some materials and disruptions in supply could affect the company’s profitability.

The company uses large amounts of stainless steel, aluminized steel and other commodities in the manufacture of its products. A significant increase in the price of steel or any other commodity, due to tariffs or otherwise, would adversely affect the company’s operating results. In addition, we have experienced disruptions to parts of our supply chain as a result of COVID-19. Unanticipated delays in delivery of raw materials and component inventories by suppliers—including delays due to capacity constraints, labor disputes, impaired financial condition of suppliers, natural disasters, extreme weather patterns and climate change, pandemics or other events outside our control— may increase the company's production costs, cause delays in the shipment of products or impair the ability of the company to satisfy customer demand. An interruption in or the cessation of an important supply by any third party and the company’s inability to make alternative arrangements in a timely manner, or at all, could have a material adverse effect on the company’s business, financial condition and operating results.

The company faces risks related to health epidemics and other widespread outbreaks of contagious disease, which could significantly disrupt its operations and impact its operating results.

The spread of COVID-19 and other contagious diseases, or other adverse public health developments, has had, and will likely continue to have, a material and adverse effect on our business operations. These effects have included and could continue to include disruptions or restrictions on our ability to travel, as well as temporary closures of our facilities or the facilities of our suppliers or customers. Any disruption of our suppliers or customers would likely impact our sales and operating results.

The company may be the subject of product liability claims or product recalls, and it may be unable to obtain or maintain insurance adequate to cover potential liabilities.

Product liability is a significant commercial risk to the company. The company’s business exposes it to potential liability risks that arise from the manufacturing, marketing and selling of the company’s products. In addition to direct expenditures for damages, settlement and defense costs, there is a possibility of adverse publicity as a result of product liability claims. Plaintiffs in some jurisdictions have received substantial damage awards against companies based upon claims for injuries allegedly caused by the use of their products. In addition, it may be necessary for the company to recall products that do not meet approved specifications, which could result in adverse publicity as well as costs connected to the recall and loss of revenue.

The company cannot be certain that a product liability claim or series of claims brought against it would not have an adverse effect on the company’s business, financial condition or results of operations. If any claim is brought against the company, regardless of the success or failure of the claim, there can be no assurance that the company will be able to obtain or maintain product liability insurance in the future on acceptable terms or with adequate coverage against potential liabilities or the cost of a recall. The company currently maintains insurance programs consisting of self-insurance up to certain limits and excess insurance coverage for claims over established limits. There can be no assurance that the company's insurance programs will provide adequate protection against actual losses. In addition, the company is subject to the risk that one or more of its insurers may become insolvent or become unable to pay claims that may be made in the future.

An increase in warranty expenses could adversely affect the company’s financial performance.

The company offers purchasers of its products warranties covering workmanship and materials typically for one year and, in certain circumstances, for periods of up to ten years, during which periods the company or an authorized service representative will make repairs and replace parts that have become defective in the course of normal use. The company estimates and records its future warranty costs based upon past experience. These warranty expenses may increase in the future and may exceed the company’s warranty reserves, which, in turn, could adversely affect the company’s financial performance.

16

The company’s financial performance is subject to significant fluctuations.

The company’s financial performance is subject to quarterly and annual fluctuations due to a number of factors, including:

•      general economic conditions;

•the lengthy, unpredictable sales cycle for the commercial foodservice equipment, food processing equipment and residential kitchen equipment groups;

•      the gain or loss of significant customers;

•      unexpected delays in new product introductions;

•the level of market acceptance of new or enhanced versions of the company’s products;

•      unexpected changes in the levels of the company’s operating expenses; and

•      competitive product offerings and pricing actions.

Each of these factors could result in a material and adverse change in the company’s business, financial condition and results of operations.

The company may be unable to manage its growth.

The company has recently experienced rapid growth in its business. Continued growth could place a strain on the company’s management, operations and financial resources. There also will be additional demands on the company’s sales, marketing and information systems and on the company’s administrative infrastructure as it develops and offers additional products and enters new markets. The company cannot be certain that the company’s operating and financial control systems, administrative infrastructure, outsourced and internal production capacity, facilities and personnel will be adequate to support the company’s future operations or to effectively adapt to future growth. If the company cannot manage the company’s growth effectively, the company’s business may be harmed.

Strategic and Organizational Risks

The company’s acquisition, investment and alliance strategy involves risks. If the company is unable to effectively manage these risks, its business will be materially harmed.

To achieve the company’s strategic objectives, the company has pursued and may continue to pursue strategic acquisitions of and investments in other companies, businesses or technologies. Acquisitions and investments entail numerous risks, including, among others:

•     difficulties in the assimilation of acquired businesses or technologies and the inability to fully realize some of the expected synergies or otherwise achieve anticipated revenues and profits;

•    inability to operate acquired businesses or utilize acquired technologies profitably;

•    the significant amount of management time and attention needed to identify, execute and integrate any acquired businesses;

•    potential assumption of unknown material liabilities;

•    failure to achieve financial or operating objectives;

•         unanticipated costs relating to acquisitions or to the integration of acquired businesses;

•    loss of customers, suppliers, or key employees; and

•    the impact on the company's internal controls and compliance with the regulatory requirements under the Sarbanes-Oxley Act of 2002.

17

The company may not be able to successfully integrate any operations, personnel, services or products that it has acquired or may acquire in the future.

The company may seek to expand or enhance some of its operations by forming joint ventures or alliances with various strategic partners throughout the world. Entering into joint ventures and alliances also entails risks, including difficulties in developing and expanding the businesses of newly formed joint ventures, exercising influence over the activities of joint ventures in which the company does not have a controlling interest and potential conflicts with the company’s joint venture or alliance partners. The company cannot assure that any joint venture or alliance entered into or that may be entered into in the future will be successful. 

An inability to identify or complete future acquisitions could adversely affect future growth.

The company intends to continue its growth strategy of identifying and acquiring businesses with complementary products and services by pursuing acquisitions that provide opportunities for profitable growth. While the company continues to evaluate potential acquisitions, it may not be able to identify and successfully negotiate suitable acquisitions, obtain financing for future acquisitions on satisfactory terms, obtain regulatory approval for certain acquisitions, or otherwise complete acquisitions in the future. An inability to identify or complete future acquisitions could limit the company’s growth.

Expansion of the company’s international operations involves special challenges that it may not be able to meet. The company’s failure to meet these challenges could adversely affect its business, financial condition and operating results.

The company plans to continue to expand its international operations. The company faces certain risks inherent in doing business in international markets. These risks include:

•extensive regulations and oversight, tariffs, including with respect to certain products imported from China or exported to China, retaliatory tariffs by China and certain other countries in response to tariffs implemented by the United States, and other trade barriers;

•    withdrawal from or renegotiation of international trade agreements and other restrictions on trade between the United States and China, the European Union, Canada, Mexico and other countries;

•    effects of the United Kingdom's decision to exit the European Union and related potential disruption to trade;

•    uncertain impact on operations, suppliers and customers related to business disruptions and restrictions due to the COVID-19 pandemic;

•    reduced protection for intellectual property rights;

•    difficulties in staffing and managing foreign operations;

•    potentially adverse tax consequences;

•    limitations on ownership and on repatriation of earnings;

•    transportation delays and interruptions;

•    political, social, and economic instability and disruptions;

•    labor unrests or shortages;

•    potential for nationalization of enterprises; and

•    limitations on the company’s ability to enforce legal rights and remedies.

In addition, the company is and will be required to comply with the laws and regulations of foreign governmental and regulatory authorities of each country in which the company conducts business.

18

There can be no assurance that the company will be able to succeed in marketing its products and services in international markets. The company may also experience difficulty in managing its international operations because of, among other things, competitive conditions overseas, management of foreign exchange risk, established domestic markets, and language and cultural differences. Any of these factors could have a material adverse effect on the success of the company’s international operations and, consequently, on the company’s business, financial condition and operating results.

The impact of future transactions on the company’s common stock is uncertain.

The company periodically reviews potential transactions related to products or product rights and businesses complementary to the company’s business. Such transactions could include mergers, acquisitions, joint ventures, alliances or licensing agreements. In the future, the company may choose to enter into such transactions at any time. The impact of transactions on the market price of a company’s stock is often uncertain and may include substantial fluctuations. Consequently, any announcement of any such transaction could have a material adverse effect upon the market price of the company’s common stock. Moreover, depending upon the nature of any transaction, the company may experience a charge to earnings, which could be material and have an adverse impact upon the market price of the company’s common stock.

The company’s business could suffer in the event of a work stoppage by its unionized labor force.

Because the company has a significant number of workers whose employment is subject to collective bargaining agreements and labor union representation, the company is vulnerable to possible organized work stoppages and similar actions. Unionized employees accounted for approximately 5% of the company’s workforce as of January 1, 2022. The company has union contracts with employees at its facilities in Windsor, California; Algona, Iowa; Elgin, Illinois; Easton, Pennsylvania and Lodi, Wisconsin that extend through December 2023, December 2022, July 2022, May 2023 and December 2024, respectively. The company also has a union workforce at its manufacturing facility in the Philippines under a contract that extends through June 2026. Approximately 1% of the company's workforce is covered by collective bargaining agreements that expire within one year. Any future strikes, employee slowdowns or similar actions by one or more unions, in connection with labor contract negotiations or otherwise, could have a material adverse effect on the company’s ability to operate the company’s business.

The company depends significantly on its key personnel.

The company depends significantly on the company’s executive officers and certain other key personnel, whom could be difficult to replace. While the company has employment agreements with certain key executives, the company cannot be certain that it will succeed in retaining this personnel or their services under existing agreements. The incapacity, inability or unwillingness of certain of these people to perform their services may have a material adverse effect on the company. There is intense competition for qualified personnel within the company’s industry, and there can be no assurance that the company will be able to continue to attract, motivate and retain personnel with the skills and experience needed to successfully manage the company's business and operations.

Technology and Cybersecurity Risks

The company may not be able to adequately protect its intellectual property rights, which may materially harm its business.

The company relies primarily on trade secret, copyright, service mark, trademark and patent law and contractual protections to protect the company’s proprietary technology and other proprietary rights. The company has filed numerous patent applications covering the company’s proprietary technology. Notwithstanding the precautions the company takes to protect its intellectual property rights, it is possible that third parties may copy or otherwise obtain and use the company’s proprietary technology without authorization or may otherwise infringe on the company’s rights. In some cases, including with respect to a number of the company’s most important products, there may be no effective legal recourse against duplication by competitors as the legal systems of certain countries, particularly certain developing countries, do not favor the enforcement of patents and other intellectual property protection. This could make it difficult for us to stop the infringement of our patents and future patents we may own, or, generally, prevent the marketing of competing products in violation of our proprietary rights. Further, the laws of some foreign countries do not protect proprietary rights to the same extent or in the same manner as the laws of the United States. In the future, the company may have to rely on litigation to enforce its intellectual property rights, protect its trade secrets, determine the validity and scope of the proprietary rights of others or defend against claims of infringement or invalidity. Any such litigation, whether successful or unsuccessful, could result in substantial costs to the company and diversions of the company’s resources, either of which could adversely affect the company’s business.

19

Any infringement by the company of a third party's patent rights could result in litigation and adversely affect its ability to provide, or could increase the cost of providing, the company’s products and services.

Patents of third parties may have an important bearing on the company’s ability to offer some of its products and services. The company’s competitors, as well as other companies and individuals, may obtain patents related to the types of products and services the company offers or plans to offer. There can be no assurance that the company is or will be aware of all patents containing claims that may pose a risk of infringement by its products and services. In addition, some patent applications in the United States are confidential until a patent is issued and, therefore, the company cannot evaluate the extent to which its products and services may be covered or asserted to be covered by claims contained in pending patent applications. In general, if one or more of the company’s products or services were to infringe patents held by others, the company may be required to stop developing or marketing the products or services, to obtain licenses from the holders of the patents to develop and market the services, or to redesign the products or services in such a way as to avoid infringing on the patent claims. The company cannot assess the extent to which it may be required in the future to obtain licenses with respect to patents held by others, whether such licenses would be available or, if available, whether it would be able to obtain such licenses on commercially reasonable terms. If the company is unable to obtain such licenses, it also may not be able to redesign the company’s products or services to avoid infringement, which could materially adversely affect the company’s business, financial condition and operating results.

The company may be subject to information technology system failures, network disruptions, cybersecurity attacks and breaches in data security, which may materially adversely affect the company’s operations, financial condition and operating results.

The company depends on information technology as an enabler to improve the effectiveness of its operations and to interface with its customers, as well as to maintain financial accuracy and efficiency. Information technology system failures, including suppliers’ or vendors’ system failures, could disrupt the company’s operations by causing transaction errors, processing inefficiencies, delays or cancellation of customer orders, the loss of customers, impediments to the manufacture or shipment of products, other business disruptions, or the loss of or damage to intellectual property through a security breach.

The company’s information systems, or those of its third-party service providers, could also be penetrated by outside parties intent on extracting information, corrupting information or disrupting business processes. Such unauthorized access could disrupt the company’s business, increase costs and/or result in the loss of assets. Cybersecurity attacks are becoming more sophisticated and include, but are not limited to, malicious software, attempts to gain unauthorized access to data, and other electronic security breaches that could lead to disruptions in critical systems, unauthorized release of confidential or otherwise protected information, corruption or destruction of data and other manipulation or improper use of systems or networks. These events could negatively impact the company’s customers and/or reputation and lead to financial losses from remediation actions, loss of business, production downtimes, operational delays or potential liability, penalties, fines or other increases in expense, all of which may have a material adverse effect on the company’s business. In addition, as security threats and cybersecurity and data privacy and protection laws and regulations, including those related to the collection, storage, handling, use, disclosure, transfer, and security of personally identifiable information, continue to evolve and become more sophisticated, we may invest additional resources in the security of our systems. Any such increased level of investment could adversely affect our financial condition or results of operations. Further, as governmental authorities around the world continue to consider legislative and regulatory proposals concerning data protection, we may face substantial penalties if we fail to comply with regulations and laws regarding data protection.

Tax, Legal and Regulatory Risks

The company may be subject to litigation, tax, and other legal compliance risks.

In addition to product liability claims, the company is subject to a variety of litigation, tax, and other legal compliance risks. These risks include, among other things, possible liability relating to personal injuries, intellectual property rights, contract-related claims, taxes and compliance with U.S. and foreign export laws, competition laws, and laws governing improper business practices. The company or one of its business units could be charged with wrongdoing as a result of such matters. If convicted or found liable, the company could be subject to significant fines, penalties, repayments or other damages.

20

The company’s reputation, ability to do business, and results of operations may be impaired by the improper conduct of any of its employees, agents, or business partners.

While the company strives to maintain high standards, the company cannot provide assurance that its internal controls and compliance systems will always protect the company from acts committed by its employees, agents, or business partners that violate U.S. and/or foreign laws or fail to protect the company’s confidential information, including the laws governing payments to government officials, bribery, fraud, anti-kickback and false claims rules, competition, export and import compliance, money laundering, and data privacy laws, as well as the improper use of proprietary information or social media. Any such violations of law or improper actions could subject the company to civil or criminal investigations in the United States and in other jurisdictions, lead to substantial civil or criminal, monetary and non-monetary penalties, and related shareholder lawsuits, lead to increased costs of compliance and damage the company’s reputation.

The company is subject to potential liability under environmental laws.

The company’s operations are regulated by a number of federal, state and local environmental laws and regulations that govern, among other things, the discharge of hazardous materials into the air and water as well as the handling, storage and disposal of these materials. Compliance with these environmental laws and regulations is a significant consideration for the company because it uses hazardous materials in its manufacturing processes. In addition, because the company is a generator of hazardous wastes, even if it fully complies with applicable environmental laws, it may be subject to financial exposure for costs associated with an investigation and remediation of sites at which it has arranged for the disposal of hazardous wastes if these sites become contaminated. In the event of a violation of environmental laws, the company could be held liable for damages and for the costs of remedial actions. Environmental laws could also become more stringent over time, imposing greater compliance costs and increasing risks and penalties associated with any violation, which could negatively affect the company’s operating results. There can be no assurance that identification of presently unidentified environmental conditions, more vigorous enforcement by regulatory authorities or other unanticipated events will not arise in the future resulting in additional environmental liabilities, compliance costs and penalties that could be material. Environmental laws and regulations are constantly evolving, and it is impossible to accurately predict the effect they may have upon the financial condition, results of operations, or cash flows of the company.

We are subject to risks associated with possible climate change legislation, regulation and international accords.

Government mandates, standards or regulations intended to reduce greenhouse gas emissions or projected climate change impacts have resulted in, and are likely to continue resulting in, increased energy, manufacturing, transportation and raw material costs. Governmental requirements directed at regulating greenhouse gas emissions could cause us to incur expenses that we cannot recover or that will require us to increase the price of products we sell, which could impact the demand for those products.

Unfavorable tax law changes and tax authority rulings may adversely affect financial results.

The company is subject to income taxes in the United States and in various foreign jurisdictions. Domestic and international tax liabilities are based on the income and expenses in various tax jurisdictions. The amount of the company’s income and other tax liability is subject to ongoing audits by U.S. federal, state and local tax authorities and by non-U.S. authorities. If these audits result in assessments different from amounts recorded, future financial results may include unfavorable tax adjustments.

21

The trading price of the company's common stock has been volatile, and investors in the company's common stock may experience substantial losses.

The trading price of the company's common stock has been volatile and may become volatile again in the future. The trading price of the company's common stock could decline or fluctuate in response to a variety of factors, including:

•the company's failure to meet the performance estimates of securities analysts;

•changes in buy/sell recommendations by securities analysts;

•fluctuations in the company's operating results;

•substantial sales of the company's common stock;

•general stock market conditions; or

•other economic or external factors.

Item 1B.      Unresolved Staff Comments

Not applicable.

22

Item 2.      Properties

The company's principal executive offices are located in Elgin, Illinois. The company operates thirty-nine manufacturing facilities in the U.S. and twenty-eight manufacturing facilities internationally.

The principal properties of the company used to conduct business operations are listed below:

Location	Principal Function	Square Footage	Owned/ Leased	Lease Expiration
Commercial Foodservice:
Fort Smith, AR	Manufacturing, Warehousing and Offices	712,600	Leased	Jan-26
Brea, CA	Manufacturing, Warehousing and Offices	86,600	Leased	Sep-26
Vacaville, CA	Manufacturing, Warehousing and Offices	81,200	Leased	May-27
Windsor, CA	Manufacturing, Warehousing and Offices	75,000	Leased	Apr-32
Corona, CA	Manufacturing and Offices	86,000	Owned	N/A
Louisville, CO	Manufacturing, Warehousing and Offices	37,700	Leased	Jul-28
Venice, FL	Manufacturing, Warehousing and Offices	38,600	Leased	Jun-24
Elgin, IL	Manufacturing, Warehousing and Offices	207,000	Owned	N/A
Mundelein, IL	Manufacturing, Warehousing and Offices	70,000	Owned	N/A
Rockton, IL	Manufacturing, Warehousing and Offices	339,400	Owned	N/A
South Beloit, IL	Warehousing	171,700	Leased	Mar-24
Menominee, MI	Manufacturing, Warehousing and Offices	60,000	Owned	N/A
Charlotte, NC	Manufacturing, Warehousing and Offices	44,000	Leased	Feb-24
Fuquay-Varina, NC	Manufacturing, Warehousing and Offices	183,900	Owned	N/A
Bow, NH	Manufacturing, Warehousing and Offices	100,000	Owned	N/A
Pembroke, NH	Warehousing	136,200	Leased	Jul-24
Dayton, OH	Manufacturing, Warehousing and Offices	37,700	Owned	N/A
Moraine, OH	Warehousing	38,300	Leased	Jun-27
Tualatin, OR	Manufacturing, Warehousing and Offices	29,500	Leased	May-28
Easton, PA	Manufacturing, Warehousing and Offices	246,700	Owned	N/A
Smithville, TN	Manufacturing, Warehousing and Offices	268,000	Owned	N/A
Allen, TX	Warehousing	21,000	Leased	Jun-23
Carrollton, TX	Manufacturing, Warehousing and Offices	132,400	Leased	Aug-22
Essex Junction, VT	Manufacturing, Warehousing and Offices*	282,500	Owned	N/A
Renton, WA	Manufacturing, Warehousing and Offices	61,700	Leased	Sep-28
New South Wales, Australia	Manufacturing, Warehousing and Offices	204,900	Owned	N/A
Toronto, Canada	Manufacturing, Warehousing and Offices*	87,700	Owned	N/A
Humen, China	Manufacturing, Warehousing	6,600	Leased	Mar-22
Qingdao City, China	Manufacturing, Warehousing and Offices	113,500	Leased	Jul-29
Zhuhai City, China	Manufacturing, Warehousing and Offices	104,500	Leased	May-22
Brøndby, Denmark	Manufacturing, Warehousing and Offices	50,900	Owned	N/A
Randers, Denmark	Manufacturing, Warehousing and Offices	50,100	Owned	N/A
Viljandi, Estonia	Manufacturing and Offices	47,000	Owned	N/A
Nusco, Italy	Manufacturing, Warehousing and Offices	260,600	Owned	N/A
Sedico, Italy	Manufacturing, Warehousing and Offices	52,500	Leased	Feb-24
Nogales, Mexico	Manufacturing, Warehousing and Offices	129,000	Owned	N/A
Wiślina, Poland	Manufacturing, Warehousing and Offices	77,500	Owned	N/A
Pineda de Mar, Spain	Manufacturing, Warehousing and Offices	57,100	Owned	N/A
Fristad, Sweden	Manufacturing, Warehousing and Offices	173,800	Owned	N/A
Laguna, the Philippines	Manufacturing, Warehousing and Offices	115,200	Owned	N/A
Lincoln, the United Kingdom	Manufacturing, Warehousing and Offices	100,000	Owned	N/A

23

Location	Principal Function	Square Footage	Owned/ Leased	Lease Expiration
Food Processing:
Gainesville, GA	Manufacturing, Warehousing and Offices	107,400	Owned	N/A
Algona, IA	Manufacturing, Warehousing and Offices	70,100	Owned	N/A
Elgin, IL	Manufacturing, Warehousing and Offices	25,000	Owned	N/A
Elk Grove, IL	Manufacturing, Warehousing and Offices	101,500	Leased	Nov-29
Clayton, NC	Manufacturing, Warehousing and Offices	65,000	Leased	Oct-24
Maysville, OK	Manufacturing, Warehousing and Offices	36,700	Owned	N/A
Souderton, PA	Manufacturing, Warehousing and Offices	35,000	Owned	N/A
Plano, TX	Manufacturing, Warehousing and Offices	339,100	Leased	Apr-22
Waynesboro, VA	Manufacturing, Warehousing and Offices	26,400	Owned	N/A
Bothell, WA	Manufacturing, Warehousing and Offices	23,600	Leased	May-25
Lodi, WI	Manufacturing, Warehousing and Offices	114,600	Owned	N/A
Aalborg, Denmark	Manufacturing, Warehousing and Offices	68,300	Leased	Dec-22
Mauron, France	Manufacturing, Warehousing and Offices	107,200	Leased	Dec-22
Reichenau, Germany	Manufacturing, Warehousing and Offices	57,900	Owned	N/A
Bangalore, India	Manufacturing, Warehousing and Offices	75,000	Leased	Mar-24
Castelnuovo Rangone, Italy	Manufacturing, Warehousing and Offices	26,800	Leased	Dec-23
Norwich, the United Kingdom	Manufacturing, Warehousing and Offices	30,000	Owned	N/A

Residential Kitchen:
Chino, CA	Warehousing and Offices	100,000	Leased	Feb-22
Redwood City, CA	Warehousing and Offices	20,600	Leased	Jul-24
Atlanta, GA	Warehousing and Offices	169,200	Leased	Dec-24
Buford, GA	Warehousing and Offices	178,100	Leased	Feb-23
Columbus, GA	Warehousing and Offices	133,800	Leased	Feb-23
Greenville, MI	Manufacturing, Warehousing and Offices	225,000	Owned	N/A
Greenwood, MS	Manufacturing, Warehousing and Offices**	740,600	Owned	N/A
Brown Deer, WI	Manufacturing, Warehousing and Offices	161,900	Leased	Nov-26
Kuurne, Belgium	Manufacturing and Offices	289,700	Owned	N/A
Saint Ouen L'aumone , France	Manufacturing, Warehousing	30,400	Owned	N/A
Waterford, Ireland	Warehousing and Offices	73,000	Leased	Jul-27
Ketley, the United Kingdom	Manufacturing and Offices	217,300	Owned	N/A
Leamington Spa, the United Kingdom	Manufacturing and Offices	270,200	Owned	N/A
Leamington Spa, the United Kingdom	Manufacturing and Offices	100,300	Leased	Aug-29
Nottingham, the United Kingdom	Warehousing and Offices	153,100	Owned	N/A

 * Contains two separate manufacturing facilities.

** Contains four separate manufacturing facilities.

At various other locations the company leases small amounts of space for administrative, manufacturing, distribution and sales functions, and in certain instances limited short-term inventory storage. These locations are in Australia, Brazil, Canada, China, Czech Republic, Denmark, Dubai, France, Germany, India, Italy, Mexico, Netherlands, Philippines, Russia, Spain, the United Kingdom and various locations in the United States.

Management believes that these facilities are adequate for the operation of the company's business as presently conducted.

24

Item 3.      Legal Proceedings

The company is routinely involved in litigation incidental to its business, including product liability claims, which are partially covered by insurance or in certain cases by indemnification provisions under purchase agreements for recently acquired companies. Such routine claims are vigorously contested and management does not believe that the outcome of any such pending litigation will have a material effect upon the financial condition, results of operations or cash flows of the company.

Item 4. Mine Safety Issues

Not applicable.

25

PART II

Item 5.      Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Principal Market

The company's Common Stock trades on the Nasdaq Global Select Market under the symbol "MIDD".

Stockholders

The company estimates there were approximately 69,204 record holders of the company's common stock as of February 28, 2022.

Dividends

The company does not currently pay cash dividends on its common stock. Any future payment of cash dividends on the company’s common stock will be at the discretion of the company’s Board of Directors and will depend upon the company’s results of operations, earnings, capital requirements, contractual restrictions and other factors deemed relevant by the Board of Directors. The company’s Board of Directors currently intends to retain any future earnings to support its operations and to finance the growth and development of the company’s business and does not intend to declare or pay cash dividends on its common stock for the foreseeable future. In addition, the company’s revolving credit facility limits its ability to declare or pay dividends on its common stock.

Securities Authorized for Issuance under Equity Compensation Plans

For information pertaining to securities authorized for issuance under equity compensation plans and the related weighted

average exercise price, see Part III, Item 12, “Security Ownership of Certain Beneficial Owners and Management and Related

Stockholder Matters.”

Unregistered Sales of Equity Securities in connection with Strategic Transactions

On June 29, 2020, in connection with the company’s minority investment in Bluezone Products, Inc. (“Bluezone”), the company issued 46,365 unregistered shares of the company’s common stock to a certain stockholder of Bluezone (“Bluezone Stockholder”) in exchange for 36,764 shares of series A preferred stock of Bluezone. The shares of company common stock were issued in reliance on the exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended ("Securities Act"). The company relied on such exemption based in part upon representations made by the Bluezone Stockholder, including its status as an accredited investor, as such term is defined in Rule 501 of the Securities Act.

On December 23, 2020, in connection with the company’s purchase of assets from Appliance Innovation, Inc. ("Appliance"), the company issued 93,392 unregistered shares of the company’s common stock to Appliance. The shares of company common stock were issued in reliance on the exemption from registration under Section 4(a)(2) of the Securities Act. The company relied on such exemption based in part upon representations made by Appliance, including its status as an accredited investor, as such term is defined in Rule 501 of the Securities Act.

On December 27, 2021, in connection with the company’s purchase of all of the capital stock of Masterbuilt Holdings, LLC ("Kamado Joe and Masterbuilt"), the company issued 12,921 unregistered shares of the company’s common stock to Kamado Joe and Masterbuilt. The shares of company common stock were issued in reliance on the exemption from registration under Section 4(a)(2) of the Securities Act. The company relied on such exemption based in part upon representations made by Kamado Joe and Masterbuilt, including its status as an accredited investor, as such term is defined in Rule 501 of the Securities Act.

26

Issuer Purchases of Equity Securities

	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan or Program	Maximum Number of Shares that May Yet be Purchased Under the Plan or Program (1)
October 3, 2021 to October 30, 2021	—	$	—	—	1,476,835
October 31, 2021 to November 27, 2021	—	—		—	1,476,835
November 28, 2021 to January 1, 2022	141,500	188.17		141,500	1,335,335
Quarter ended January 1, 2022	141,500	$	188.17	141,500	1,335,335

(1) In November 2017, the company's Board of Directors approved a stock repurchase program. This program authorizes the company to repurchase in the aggregate up to 2,500,000 shares of its outstanding common stock in open market purchases or negotiated transactions. As of January 1, 2022, 1,164,665 shares had been purchased under the 2017 stock repurchase program. At January 1, 2022, the company had a total of 8,170,276 shares in treasury amounting to $566.4 million.

In the Consolidated Financial Statements, the company also treats shares withheld for tax purposes on behalf of employees in connection with the vesting of restricted share grants as common stock repurchases because they reduce the number of shares that would have been issued upon vesting. These withheld shares are not considered common stock repurchases under the authorized common stock repurchase plan and accordingly are not included in the common stock repurchase totals in the preceding table.

27

Item 7.      Management’s Discussion and Analysis of Financial Condition and Results of Operations

Special Note Regarding Forward-Looking Statements

This report contains "forward-looking statements" subject to the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which could cause the company's actual results, performance or outcomes to differ materially from those expressed or implied in the forward-looking statements. The following are some of the important factors that could cause the company's actual results, performance or outcomes to differ materially from those discussed in the forward-looking statements:

•changing market conditions;

•volatility in earnings resulting from goodwill impairment losses, which may occur irregularly and in varying amounts;

•variability in financing costs;

•quarterly variations in operating results;

•dependence on key customers;

•risks associated with the company's foreign operations, including market acceptance and demand for the company's products and the company's ability to manage the risk associated with the exposure to foreign currency exchange rate fluctuations;

•the company's ability to protect its trademarks, copyrights and other intellectual property;

•the impact of competitive products and pricing;

•the impact of announced management and organizational changes;

•the state of the residential construction, housing and home improvement markets;

•the state of the credit markets, including mortgages, home equity loans and consumer credit;

•intense competition in the company's business segments including the impact of both new and established global competitors;

•unfavorable tax law changes and tax authority rulings;

•cybersecurity attacks and other breaches in security;

•the continued ability to realize profitable growth through the sourcing and completion of strategic acquisitions;

•the timely development and market acceptance of the company's products; and

•the availability and cost of raw materials.

The company cautions readers to carefully consider the statements set forth in the section entitled "Item 1A. Risk Factors" of this filing and discussion of risks included in the company's SEC filings.

28

NET SALES SUMMARY

(dollars in thousands)

Fiscal Year Ended(1)
	2021				2020				2019
	Sales		Percent		Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	2,032,761	62.5	%	$	1,510,279	60.1	%	$	1,984,345	67.1	%
Food Processing	480,746		14.8		437,272		17.4		400,951		13.5
Residential Kitchen	737,285		22.7		565,706		22.5		574,150		19.4
Total	$	3,250,792	100.0	%	$	2,513,257	100.0	%	$	2,959,446	100.0	%

(1)The company's fiscal year ends on the Saturday nearest to December 31.

29

Results of Operations

The following table sets forth certain items in the consolidated statements of earnings as a percentage of net sales for the periods presented:

	Fiscal Year Ended(1)
	2021		2020		2019
Net sales	100.0	%	100.0	%	100.0	%
Cost of sales	63.2		64.9		62.7
Gross profit	36.8		35.1		37.3
Selling, general and administrative expenses	20.5		21.2		20.1
Restructuring	0.3		0.5		0.3
Merger termination fee	(3.4)		—		—
Gain on litigation settlement	—		—		(0.5)
Gain on sale of plant	—		(0.1)		—
Impairments	—		0.6		—
Income from operations	19.4		12.9		17.4
Interest expense and deferred financing amortization, net	1.8		3.1		2.9
Net periodic pension benefit (other than service cost & curtailment)	(1.4)		(1.6)		(1.0)
Curtailment loss	—		0.6		—
Other expense (income), net	—		0.1		(0.1)
Earnings before income taxes	19.0		10.7		15.6
Provision for income taxes	4.0		2.4		3.7
Net earnings	15.0	%	8.3	%	11.9	%

(1)The company's fiscal year ends on the Saturday nearest to December 31.

30

Fiscal Year Ended January 1, 2022 as Compared to January 2, 2021

NET SALES. Net sales in fiscal 2021 increased by $737.5 million, or 29.3%, to $3,250.8 million as compared to $2,513.3 million in fiscal 2020. Net sales increased by $124.8 million, or 5.0%, from the fiscal 2020 acquisitions of Deutsche, Wild Goose, United Foodservice Equipment Zhuhai and the fiscal 2021 acquisitions of Novy, Newton CFV, Imperial, Char-Griller, and Kamado Joe and Masterbuilt. Excluding acquisitions and a disposition, net sales increased $631.8 million, or 25.3%, from the prior year. The impact of foreign exchange rates on foreign sales translated into U.S. Dollars for fiscal 2021 increased net sales by approximately $39.5 million. Excluding the impact of foreign exchange, acquisitions and the disposition, sales increased 23.7% for the year, including a net sales increase of 28.2% at the Commercial Foodservice Equipment Group, a net sales increase of 9.1% at the Food Processing Equipment Group and a net sales increase of 23.2% at the Residential Kitchen Equipment Group.

•Net sales of the Commercial Foodservice Equipment Group increased by $522.5 million, or 34.6%, to $2,032.8 million in fiscal 2021 as compared to $1,510.3 million in fiscal 2020. Net sales from the acquisitions of Deutsche, Wild Goose, United Foodservice Equipment Zhuhai, Newton CFV, and Imperial which were acquired on March 2, 2020, December 7, 2020, December 18, 2020, November 16, 2021 and September 24, 2021, respectively, accounted for an increase of $77.4 million during fiscal 2021. Excluding the impact of acquisitions, net sales of the Commercial Foodservice Equipment Group increased $445.1 million, or 29.5%, as compared to the prior year. Excluding the impact of foreign exchange and acquisitions, net sales increased $426.1 million, or 28.2% at the Commercial Foodservice Equipment Group. Domestically, the company realized a sales increase of $367.2 million, or 34.4%, to $1,435.1 million, as compared to $1,067.9 million in the prior year. This includes an increase of $61.3 million from recent acquisitions. Excluding acquisitions, the net increase in domestic sales was $305.9 million, or 28.6%. The increase in domestic sales is related to improvements in market conditions and consumer demand. International sales increased $155.3 million, or 35.1%, to $597.7 million, as compared to $442.4 million in the prior year. This includes the increase of $16.1 million from recent acquisitions and an increase of $19.0 million related to the favorable impact of exchange rates. Excluding acquisitions and foreign exchange, the net sales increase in international sales was $120.2 million, or 27.2%. The increase in international sales is related to improvements in market conditions, primarily in the European and Asian markets.

•Net sales of the Food Processing Equipment Group increased by $43.4 million, or 9.9%, to $480.7 million in fiscal 2021, as compared to $437.3 million in fiscal 2020. Excluding the impact of foreign exchange, net sales increased $39.6 million, or 9.1% at the Food Processing Equipment Group. Domestically, the company realized a sales increase of $36.2 million, or 11.6%, to $347.3 million, as compared to $311.1 million in the prior year. The increase in domestic sales reflects growth driven by both protein and bakery products. International sales increased $7.2 million, or 5.7%, to $133.4 million, as compared to $126.2 million in the prior year. This includes an increase of $3.8 million related to the favorable impact of exchange rates. Excluding foreign exchange, the net sales increase in international sales was $3.4 million, or 2.7%. The increase in international revenues is primarily driven by protein projects.

•Net sales of the Residential Kitchen Equipment Group increased by $171.6 million, or 30.3%, to $737.3 million in fiscal 2021, as compared to $565.7 million in fiscal 2020. Net sales from the acquisitions of Novy, Char-Griller, and Kamado Joe and Masterbuilt, which were acquired on July 12, 2021, December 27, 2021, and December 27, 2021, respectively, accounted for an increase of $47.4 million during fiscal 2021. Excluding the impact of acquisitions and the disposition, net sales of the Residential Kitchen Equipment Group increased $143.3 million, or 26.2%, as compared to the prior year. Excluding the impact of foreign exchange, acquisitions, and the disposition, net sales increased $126.6 million, or 23.2% at the Residential Kitchen Equipment Group. Domestically, the company realized a sales increase of $80.5 million, or 21.5%, to $454.4 million, as compared to $373.9 million in the prior year. This includes an increase of $3.5 million from recent acquisitions. Excluding acquisitions, the net increase in domestic sales was $77.0 million, or 20.6%. International sales increased $91.1 million, or 47.5% to $282.9 million, as compared to $191.8 million in the prior year. This includes an increase of $43.9 million from recent acquisitions and an increase of $16.7 million related to the favorable impact of exchange rates. Excluding acquisitions, the disposition, and foreign exchange, the net sales increase in international sales was $49.6 million, or 28.7%. The increase in domestic and international sales reflects the strong demand for our premium appliance brands and strength in the European market.

31

GROSS PROFIT. Gross profit increased by $312.9 million to $1,194.9 million in fiscal 2021 from $882.0 million in fiscal 2020, primarily reflecting higher sales volumes related to improvements in market conditions and consumer demand and the favorable impact of foreign exchange rates of $14.0 million. The gross margin rate increased to 36.8% in 2021 as compared to 35.1% in 2020. The gross margin rate in fiscal 2021 excluding acquisitions and impact of foreign exchange was 37.0%.

•Gross profit at the Commercial Foodservice Equipment Group increased by $230.7 million, or 44.2%, to $752.9 million in fiscal 2021 as compared to $522.2 million in fiscal 2020. Gross profit from acquisitions increased gross profit by $27.1 million. Excluding acquisitions, the gross profit increased by approximately $203.6 million related to higher sales volumes. The impact of foreign exchange rates increased gross profit by approximately $6.7 million. The gross profit margin rate increased to 37.0% in fiscal 2021 as compared to 34.6% in the prior year. The gross margin rate in fiscal 2021 excluding acquisitions and the impact of foreign exchange was 37.1%.

•Gross profit at the Food Processing Equipment Group increased by $17.1 million, or 10.9%, to $174.2 million in fiscal 2021 as compared to $157.1 million in fiscal 2020. The impact of foreign exchange rates increased gross profit by approximately $2.0 million. The gross profit margin rate increased to 36.2% in fiscal 2021 as compared to 35.9% in the prior year. The gross margin rate in fiscal 2021 excluding the impact of foreign exchange was 36.1%.

•Gross profit at the Residential Kitchen Equipment Group increased by $64.3 million, or 31.5%, to $268.6 million in fiscal 2021 as compared to $204.3 million in fiscal 2020. Gross profit from acquisitions increased gross profit by $11.0 million. Excluding acquisitions, the gross profit increased by approximately $53.3 million related to higher sales volumes. The impact of foreign exchange rates increased gross profit by approximately $5.3 million. The gross margin rate increased to 36.4% in fiscal 2021 as compared to 36.1% in the prior year. The gross margin rate in fiscal 2021 excluding acquisitions and the impact of foreign exchange was 37.5%.

SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES. Combined selling, general, and administrative expenses increased by $136.1 million to $668.0 million in fiscal 2021 from $531.9 million in 2020. As a percentage of net sales, selling, general and administrative expenses amounted to 20.5% in fiscal 2021 and 21.2% in fiscal 2020.

Selling, general and administrative expenses reflect increased costs of $33.0 million associated with acquisitions, including $11.8 million of non-cash intangible amortization expense. Selling, general and administrative expenses increased approximately $90.0 million related to compensation costs, professional fees, and commission expense. Increases in professional fees were driven by the costs associated with our proposed and subsequently terminated acquisition of Welbilt, as well as overall increased deal activity. Foreign exchange rates had a favorable impact of $6.7 million.

RESTRUCTURING EXPENSES. Restructuring expenses decreased $4.7 million to $7.7 million from $12.4 million in the prior year period. In fiscal 2021, restructuring expenses related primarily to headcount reductions and facility consolidations within the Commercial Foodservice Equipment Group. During fiscal 2020, restructuring charges related primarily to headcount reductions and cost reduction initiatives related to facility consolidations at the Commercial Foodservice Equipment Group and Residential Kitchen Equipment Group.

IMPAIRMENTS. In fiscal 2020, the company recognized impairment of $11.6 million associated with several trade names in conjunction with the diminution of value as we assessed current market conditions and future business plans. See Note 3 (f) to the Consolidated Financial Statements for further information on the annual impairment testing. In addition the company recorded an impairment charge of approximately $2.9 million to reflect the fair market value of assets held for sale for a non-core business within the Residential Kitchen Equipment Group. See Note 13, Restructuring and Acquisition Integration Initiatives, in the Notes to the Consolidated Financial Statements for further information on restructuring initiatives. In fiscal 2021, there were no impairments recognized in the Consolidated Financial Statements.

32

INCOME FROM OPERATIONS. Income from operations increased $305.6 million to $630.0 million in fiscal 2021 from $324.4 million in fiscal 2020. Operating income as a percentage of net sales amounted to 19.4% in 2021 as compared to 12.9% in 2020. The increase in operating income resulted from improved market conditions and increased sales volumes. In addition, during fiscal 2021, the company received approximately $67.7 million in a termination fee, net of deal costs and taxes. Operating income in fiscal 2020 included impairment charges related to intangible assets, fixed assets, and assets held for sale.

Income from operations in 2021 included $160.8 million of non-cash expenses, including $42.7 million of depreciation expense, $75.8 million of intangible amortization related to acquisitions and $42.3 million of stock based compensation. This compares to $127.7 million of non-cash expenses in the prior year, including $39.1 million of depreciation expense, $69.0 million of intangible amortization related to acquisitions and $19.6 million of stock based compensation costs.

NON-OPERATING EXPENSES. Non-operating expenses decreased $45.9 million to $10.5 million of expense in fiscal 2021 from $56.4 million of expense in fiscal 2020. Net interest expense and deferred financing decreased $21.5 million to $57.2 million in fiscal 2021 from $78.6 million in fiscal 2020 reflecting a reduction in borrowing levels and lower borrowing costs on our current debt structure. Net periodic pension benefit (other than service costs and curtailment) increased $5.1 million to $45.1 million in fiscal 2021 from $40.0 million in fiscal 2020, related to the decrease in discount rate used to calculate the interest cost. During fiscal 2020 a curtailment cost of approximately $14.7 million was recognized as a result of closing the AGA Group Pension Scheme to future pension accruals.

INCOME TAXES. A tax provision of $131.0 million, at an effective rate of 21.1%, was recorded for fiscal 2021 as compared to $60.8 million at an effective rate of 22.7%, in fiscal 2020. In comparison to the prior year, the tax provision reflects favorable tax adjustments for deferred tax rate changes, tax refunds and adjustments for the finalization of 2020 tax returns. The effective rates in 2021 and 2020 are higher than the federal tax rate of 21% primarily due to state taxes and foreign tax rate differentials.

33

Fiscal Year Ended January 2, 2021 as Compared to December 28, 2019

NET SALES. Net sales in fiscal 2020 decreased by $446.1 million, or 15.1%, to $2,513.3 million as compared to $2,959.4 million in fiscal 2019. Net sales increased by $72.3 million, or 2.4%, from the fiscal 2019 acquisitions of Cooking Solutions Group, Powerhouse, Ss Brewtech, Pacproinc, Brava, and Synesso and the fiscal 2020 acquisitions of RAM, Deutsche, Wild Goose, and United Foodservice Equipment Zhuhai. Excluding acquisitions, net sales decreased $518.4 million, or 17.5%, from the prior year. The impact of foreign exchange rates on foreign sales translated into U.S. Dollars for fiscal 2020 increased net sales by approximately $0.2 million. Excluding the impact of foreign exchange and acquisitions, sales decreased 17.5% for the year, including a net sales decrease of 26.5% at the Commercial Foodservice Equipment Group, a net sales increase of 5.9% at the Food Processing Equipment Group and a net sales decrease of 2.9% at the Residential Kitchen Equipment Group.

•Net sales of the Commercial Foodservice Equipment Group decreased by $474.0 million, or 23.9%, to $1,510.3 million in fiscal 2020 as compared to $1,984.3 million in fiscal 2019. Net sales from the acquisitions of Cooking Solutions Group, Powerhouse, Ss Brewtech, Synesso, RAM, Deutsche, Wild Goose, and United Foodservice Equipment Zhuhai, which were acquired on April 1, 2019, April 1, 2019, June 15, 2019, November 27, 2019, January 13, 2020, March 2, 2020, December 7, 2020, and December 18, 2020, respectively, accounted for an increase of $53.1 million during fiscal 2020. Excluding the impact of acquisitions, net sales of the Commercial Foodservice Equipment Group decreased $527.1 million, or 26.6%, as compared to the prior year. Excluding the impact of foreign exchange and acquisitions, net sales decreased $525.6 million, or 26.5% at the Commercial Foodservice Equipment Group. Domestically, the company realized a sales decrease of $266.9 million, or 20.0%, to $1,067.9 million, as compared to $1,334.8 million in the prior year. This includes an increase of $43.0 million from recent acquisitions. Excluding acquisitions, the net decrease in domestic sales was $309.9 million, or 23.2%. International sales decreased $207.1 million, or 31.9%, to $442.4 million, as compared to $649.5 million in the prior year. This includes the increase of $10.1 million from recent acquisitions and a decrease of $1.5 million related to the unfavorable impact of exchange rates. Excluding acquisitions and foreign exchange, the net sales decrease in international sales was $215.7 million, or 33.2%. The decline in both domestic and international sales reflects the impacts of COVID-19. This was most prevalent in the second quarter of 2020 and despite the decline over the prior year, gradually recovered in the second half of the year.

•Net sales of the Food Processing Equipment Group increased by $36.3 million, or 9.1%, to $437.3 million in fiscal 2020, as compared to $401.0 million in fiscal 2019. Excluding the impact of foreign exchange and the acquisition of Pacproinc, acquired July 16, 2019, net sales increased $23.8 million, or 5.9% at the Food Processing Equipment Group. Domestically, the company realized a sales increase of $64.5 million, or 26.2%, to $311.1 million, as compared to $246.6 million in the prior year. Excluding the acquisition, net sales increased $51.8 million, or 21.0%. The increase in domestic sales reflects growth in protein equipment sales. International sales decreased $28.2 million, or 18.3%, to $126.2 million, as compared to $154.4 million in the prior year. This includes a decrease of $1.1 million related to the unfavorable impact of exchange rates. Excluding the acquisition and foreign exchange, the net sales decrease in international sales was $28.0 million, or 18.1%. The decrease in international revenues reflects declines in sales primarily due to the disruptive impact of COVID-19 on our customers' operations.

•Net sales of the Residential Kitchen Equipment Group decreased by $8.4 million, or 1.5%, to $565.7 million in fiscal 2020, as compared to $574.1 million in fiscal 2019. Excluding the impact of foreign exchange, the acquisition of Brava, acquired November, 19, 2019, net sales decreased $16.8 million, or 2.9% at the Residential Kitchen Equipment Group. Domestically, the company realized a sales increase of $11.2 million, or 3.1%, to $373.9 million, as compared to $362.7 million in the prior year. Excluding the acquisition, net sales increased $5.6 million, or 1.5%. The increase in domestic sales is primarily related to strong consumer demand in the last six months of the year, offset by the impacts of COVID-19 in the first half of the year. International sales decreased $19.6 million, or 9.3% to $191.8 million, as compared to $211.4 million in the prior year. This includes an increase of $2.8 million related to the favorable impact of exchange rates. Excluding foreign exchange, the net sales decrease in international sales was $22.4 million, or 10.6%, primarily in the European market, reflecting the impacts of Brexit and the outbreak of COVID-19 partially offset by strong consumer demand in the last six months of the year.

34

GROSS PROFIT. Gross profit decreased by $221.5 million to $882.0 million in fiscal 2020 from $1,103.5 million in fiscal 2019, primarily reflecting the lower sales volumes related to COVID-19 and lower margins at recent acquisitions, offset by the favorable impact of foreign exchange rates of $1.7 million. The gross margin rate decreased from 37.3% in 2019 to 35.1% in 2020. The gross margin rate in fiscal 2020 excluding acquisitions and impact of foreign exchange was 35.3%.

•Gross profit at the Commercial Foodservice Equipment Group decreased by $224.4 million, or 30.1%, to $522.2 million in fiscal 2020 as compared to $746.6 million in fiscal 2019. Gross profit from the acquisitions of Cooking Solutions Group, Powerhouse, Ss Brewtech, Synesso, RAM, Deutsche, Wild Goose, and United Foodservice Equipment Zhuhai, accounted for an approximately $13.0 million increase in gross profit during fiscal 2020. Excluding acquisitions, the gross profit decreased by approximately $237.4 million largely due to lower sales volumes. The impact of foreign exchange rates increased gross profit by approximately $0.1 million. The gross profit margin rate decreased to 34.6% as compared to 37.6% in the prior year, primarily due to lower margins at recent acquisitions. The gross margin rate in fiscal 2020 excluding acquisitions and the impact of foreign exchange was 34.9%.

•Gross profit at the Food Processing Equipment Group increased by $14.9 million, or 10.5%, to $157.1 million in fiscal 2020 as compared to $142.2 million in fiscal 2019. Excluding the acquisition, gross profit increased by approximately $10.6 million. The impact of foreign exchange rates increased gross profit by approximately $0.4 million. The gross profit margin rate increased to 35.9% in fiscal 2020 as compared to 35.5% in the prior year. The gross margin rate in fiscal 2020 excluding the acquisition and the impact of foreign exchange was 35.9%.

•Gross profit at the Residential Kitchen Equipment Group decreased by $12.5 million, or 5.8%, to $204.3 million in fiscal 2020 as compared to $216.8 million in fiscal 2019. The impact of foreign exchange rates increased gross profit by approximately $1.2 million. The gross margin rate decreased to 36.1% in fiscal 2020 as compared to 37.8% in the prior year, primarily related to lower sales volumes and the impact of facility consolidations.

SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES. Combined selling, general, and administrative expenses decreased by $61.9 million to $531.9 million in fiscal 2020 from $593.8 million in 2019. As a percentage of net sales, selling, general and administrative expenses amounted to 21.2% in fiscal 2020 and 20.1% in fiscal 2019.

Selling, general and administrative expenses reflect increased costs of $30.2 million associated with acquisitions, including $7.2 million of non-cash intangible amortization expense. Selling, general and administrative expenses decreased by $35.7 million related to compensation costs and commissions and $59.2 million due to controllable cost reductions primarily within professional fees, travel and entertainment, convention costs, and advertising. Foreign exchange rates had a favorable impact of $0.5 million. The decreases were partially offset by a $11.5 million increase related to higher non-cash share-based compensation and $5.8 million related to increased allowances for doubtful accounts given the current market conditions. The prior year expenses also included $10.1 million related to transition costs with the former Chairman and CEO upon his retirement in February 2019.

RESTRUCTURING EXPENSES. Restructuring expenses increased $1.9 million to $12.4 million from $10.5 million in the prior year period. In fiscal 2020, restructuring expenses related primarily to headcount reductions and facility consolidations within the Commercial Foodservice Equipment Group. During fiscal 2019, restructuring charges related primarily to headcount reductions and cost reduction initiatives related to facility consolidations at the Commercial Foodservice Equipment Group and Residential Kitchen Equipment Group.

GAIN ON LITIGATION SETTLEMENT. In fiscal 2019, the company reached a settlement with respect to a lawsuit filed by the company arising from a prior acquisition included in the Residential Kitchen Equipment Group. The gain associated with this settlement, which is net of the release of funds in escrow, is reflected in the consolidated statement of earnings.

IMPAIRMENTS. In fiscal 2020, the company recognized impairment of $11.6 million associated with several trade names in conjunction with the diminution of value as we assessed current market conditions and future business plans. See Note 3 (f) to the Consolidated Financial Statements for further information on the annual impairment testing. In addition the company recorded an impairment charge of approximately $2.9 million to reflect the fair market value of assets held for sale for a non-core business within the Residential Kitchen Equipment Group. See Note 13, Restructuring and Acquisition Integration Initiatives, in the Notes to the Consolidated Financial Statements for further information on restructuring initiatives.

35

INCOME FROM OPERATIONS. Income from operations decreased $189.6 million to $324.4 million in fiscal 2020 from $514.0 million in fiscal 2019. Operating income as a percentage of net sales amounted to 12.9% in 2020 as compared to 17.4% in 2019. The decrease in operating income resulted from the impacts of COVID-19. Operating income in fiscal 2019 included the gain on litigation settlement, offset by the transition costs related to the former Chairman and CEO. Operating income in fiscal 2020 included impairment charges related to intangible assets, fixed assets, and assets held for sale.

Income from operations in 2020 included $127.7 million of non-cash expenses, including $39.1 million of depreciation expense, $69.0 million of intangible amortization related to acquisitions and $19.6 million of stock based compensation. This compares to $110.0 million of non-cash expenses in the prior year, including $37.9 million of depreciation expense, $64.0 million of intangible amortization related to acquisitions and $8.1 million of stock based compensation costs.

NON-OPERATING EXPENSES. Non-operating expenses increased $5.0 million to $56.4 million of expense in fiscal 2020 from $51.4 million of income in fiscal 2019. Net interest expense and deferred financing decreased $4.0 million to $78.6 million in fiscal 2020 from $82.6 million in fiscal 2019 reflecting the reduction in the average interest rates under the Credit Facility and benefit from the Convertible Notes, offset by higher non-cash interest from the lower interest rate on Convertible Notes. Net periodic pension benefit (other than service costs and curtailment) increased $10.3 million to $40.0 million in fiscal 2020 from $29.7 million in fiscal 2019, related to the increase in discount rate used to calculate the interest cost and lower expected returns on assets driven by lower asset values for fiscal 2019. During fiscal 2020, a curtailment cost of approximately $14.7 million was recognized as a result of closing the AGA Group Pension Scheme to future pension accruals.

INCOME TAXES. A tax provision of $60.8 million, at an effective rate of 22.7%, was recorded for fiscal 2020 as compared to $110.4 million at an effective rate of 23.9%, in fiscal 2019. In comparison to the prior year, the tax provision reflects favorable tax adjustments for deferred tax rate changes and adjustments for the finalization of 2019 tax returns. The effective rates in 2020 and 2019 are higher than the federal tax rate of 21% primarily due to state taxes and foreign tax rate differentials.

36

Financial Condition and Liquidity

Total cash and cash equivalents decreased by $87.7 million to $180.4 million at January 1, 2022 from $268.1 million at January 2, 2021. Total debt increased to $2.4 billion at January 1, 2022 from $1.7 billion at January 2, 2021 related to the funding of acquisitions discussed below and the adoption of ASU 2020-06 as discussed in Note 3(r), Recently Issued Accounting Standards, in the Notes to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

OPERATING ACTIVITIES. Net cash provided by operating activities after changes in assets and liabilities amounted to $423.4 million as compared to $524.8 million in the prior year. During fiscal 2021, the company received approximately $67.7 million in a termination fee, net of deal costs and taxes.

During fiscal 2020, we realized significant benefits from improvements in working capital as a result of COVID-19 pandemic-related market conditions on our business. During fiscal 2021, working capital changes meaningfully impacted operating cash flows. This included an increase in accounts receivable of $99.9 million due to improved market conditions and increased sales volumes. Also, inventory increased $204.2 million and accounts payable increased $61.3 million to support increased demand and to manage challenges present in our supply chain.

In connection with the company’s acquisition activities, the company added assets and liabilities from the opening balance sheets of the acquired businesses in its consolidated balance sheets and accordingly these amounts are not reflected in the net changes in working capital.

INVESTING ACTIVITIES. During 2021, net cash used for investing activities amounted to $1.0 billion. Cash used to fund acquisitions and investments amounted to $963.6 million primarily for the acquisitions of Novy, Imperial, Kamado Joe and Masterbuilt and Char-Griller. Additionally, $46.6 million was expended, primarily for upgrades of production equipment, manufacturing facilities and residential and commercial showrooms. We received $6.3 million in proceeds on the sale of properties following facility consolidations actions.

FINANCING ACTIVITIES. Net cash flows used for financing activities amounted to $502.8 million in 2021. The company’s borrowing activities during 2021 included $604.0 million of net proceeds under its Credit Facility. On October 21, 2021, the company entered into an amended and restated five-year, $4.5 billion multi-currency senior secured credit agreement (the "Credit Facility"). The company incurred approximately $9.2 million of debt issuance costs for the amendment to the Credit Facility. In December 2021, the company then entered into privately negotiated capped call transactions (the "Capped Call Transactions") in an aggregate amount of $54.6 million.

Additionally, the company repurchased $29.3 million of Middleby common shares during 2021. This was comprised of $2.7 million to repurchase 15,480 shares of Middleby common stock that were surrendered to the company for withholding taxes related to restricted stock vestings and $26.6 million used to repurchase 141,500 shares of its common stock under a repurchase program.

At January 1, 2022, the company was in compliance with all covenants pursuant to its borrowing agreements. The company believes that its current capital resources, including cash and cash equivalents, cash expected to be generated from operations, funds available from its current lenders and access to the credit and capital markets will be sufficient to finance its operations, debt service obligations, capital expenditures, product development and expenditures for the foreseeable future.

Material Cash Requirements

The company's material cash requirements from contractual obligations primarily consist of long-term debt obligations, operating lease obligations, tax obligations and continent contingent purchase price payments to the sellers that were deferred in conjunction with various acquisitions. See Notes 3, 5 and 7 to the Consolidated Financial Statements for further information.

Related Party Transactions

From January 3, 2021 through the date hereof, there were no transactions between the company, its directors and executive officers that are required to be disclosed pursuant to Item 404 of Regulation S-K, promulgated under the Securities and Exchange Act of 1934, as amended.

37

Critical Accounting Policies and Estimates

Management's discussion and analysis of financial condition and results of operations are based upon the company's consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires the company to make significant estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses as well as related disclosures. On an ongoing basis, the company evaluates its estimates and judgments based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions and any such differences could be material to our consolidated financial statements. 

Revenue Recognition

Revenue is recognized when the control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services.

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and represents the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The company’s contracts can have multiple performance obligations or just a single performance obligation. For contracts with multiple performance obligations, the contract’s transaction price is allocated to each performance obligation using the company’s best estimate of the standalone selling price of each distinct good or service in the contract.

Within the Commercial Foodservice Equipment and Residential Foodservice Equipment Groups, the estimated standalone selling price of equipment is based on observable prices. Within the Food Processing Equipment Group, the company estimates the standalone selling price based on expected cost to manufacture the good or complete the service plus an appropriate profit margin.

Control may pass to the customer over time or at a point in time. In general, the Commercial Foodservice Equipment and Residential Foodservice Equipment Groups recognize revenue at the point in time control transfers to their customers based on contractual shipping terms. Revenue from equipment sold under our long-term contracts within the Food Processing Equipment group is recognized over time as the equipment is manufactured and assembled. Installation services provided in connection with the delivery of the equipment are also generally recognized as those services are rendered. Over time transfer of control is measured using an appropriate input measure (e.g., costs incurred or direct labor hours incurred in relation to total estimate). These measures include forecasts based on the best information available and therefore reflect the company's judgment to faithfully depict the transfer of the goods.

Inventories

Inventories are stated at the lower of cost or net realizable value using the first-in, first-out method for the majority of the company’s inventories. The company evaluates the need to record valuation adjustments for inventory on a regular basis. The company’s policy is to evaluate all inventories including raw material, work-in-process, finished goods, and spare parts. Inventory in excess of estimated usage requirements is written down to its estimated net realizable value. Inherent in the estimates of net realizable value are estimates related to our future manufacturing schedules, customer demand, possible alternative uses, and ultimate realization of potentially excess inventory.

Goodwill and Indefinite-Life Intangibles

The company’s business acquisitions result in the recognition of goodwill and other intangible assets, which are a significant portion of the company’s total assets. Goodwill represents the excess of acquisition costs over the fair value of the net tangible assets and identifiable intangible assets acquired in a business combination. Identifiable intangible assets are recognized separately from goodwill and include trademarks and trade names, technology, customer relationships and other specifically identifiable assets. Trademarks and trade names are deemed to be indefinite-lived. Goodwill and indefinite-lived intangible assets are not amortized, but are subject to impairment testing.

On an annual basis on the first day of the fourth quarter, or more frequently if triggering events occur, the company performs an impairment assessment for goodwill and indefinite-lived intangible assets. The company considers qualitative factors to assess if it is more likely than not that the fair value of goodwill and indefinite-lived intangible assets is below the carrying value.

38

In conducting a qualitative assessment, the company analyzes a variety of events or factors that may influence the fair value of the reporting unit including, but not limited to: the results of prior quantitative assessments performed; changes in the carrying amount of the reporting unit; actual and projected revenue and operating margin; relevant market data for both the company and its peer companies; industry outlooks; macroeconomic conditions; liquidity; changes in key personnel; and the company's competitive position. Significant judgment is used to evaluate the totality of these events and factors to make the determination of whether it is more likely than not that the fair value of the reporting unit or indefinite-life intangible is less than its carrying value.

Goodwill Valuations

The reporting units at which we test goodwill for impairment are our operating segments. These consist of the Commercial Foodservice Equipment Group, the Food Processing Equipment Group and the Residential Kitchen Equipment Group. If the fair value is less than its carrying value, an impairment loss, if any, is recorded for the difference between the implied fair value and the carrying value of goodwill.

In performing a quantitative assessment, if required, the company estimates each reporting unit's fair value under an income approach using a discounted cash flow model. The income approach uses each reporting unit's projection of estimated operating results and cash flows that are discounted using a market participant discount rate based on a weighted-average cost of capital. The financial projections reflect management's best estimate of economic and market conditions over the projected period including forecasted revenue growth, operating margins, tax rate, capital expenditures, depreciation, amortization and changes in working capital requirements. Other assumptions include discount rate and terminal growth rate. The estimated fair value of each reporting unit is compared to their respective carrying values. Additionally, the company validates the estimates of fair value under the income approach by comparing the fair value estimate using a market approach. A market approach estimates fair value by applying cash flow multiples to the reporting unit's operating performance. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics of the reporting units. The company considers the implied control premium and conclude whether it is reasonable based on other recent market transactions.

The company performed a qualitative assessment as of October 3, 2021 over all three reporting units and as a result of the qualitative assessments, the company determined it is more likely than not that the fair value of our reporting units are greater than the carrying amounts.

In estimating the fair value of its reporting units, management relies on a number of factors, including operating results, business plans, economic projections, anticipated future cash flows, comparable transactions and other market data. There are inherent uncertainties related to these factors and management’s judgment in applying them in the impairment tests of goodwill. If actual results are not consistent with management's estimate and assumptions, a material impairment could have an adverse effect on the company's financial condition and results of operations.

39

Indefinite-Life Intangible Valuations

In performing a quantitative assessment of indefinite-life intangible assets other than goodwill, primarily trademarks and trade names, we analyze the variety of events or factors that may impact the fair value of the indefinite-life intangible, including, but not limited to: macroeconomic conditions, industry and market considerations, cost factors, overall financial performance and other relevant factors. We estimate the fair value of these intangible assets using the relief-from-royalty method which requires assumptions related to projected revenues from our long-range plans; assumed royalty rates that could be payable if we did not own the trademark; and a discount rate using a market based weighted-average cost of capital. If the estimated fair value of the indefinite-life intangible asset is less than its carrying value, we would recognize an impairment loss.

In performing the quantitative analysis on these trademark assets, significant assumptions used in our relief-from-royalty model included revenue growth rates, assumed royalty rates and the discount rate, which are discussed further below.

•Revenue growth rates relate to projected revenues from our long-range plans and vary from brand to brand. Adverse changes in the operating environment or our inability to grow revenues at the forecasted rates may result in a material impairment charge.

•In determining royalty rates for the valuation of our trademarks, we considered factors that affect the assumed royalty rates that would hypothetically be paid for the use of the trademarks. The most significant factors in determining the assumed royalty rates include the overall role and importance of the trademarks in the particular industry, the profitability of the products utilizing the trademarks, and the position of the trademarked products in the given market segment.

•In developing discount rates for the valuation of our trademarks, we used the market based weighted average cost of capital, adjusted for higher relative level of risks associated with doing business in other countries, as applicable, as well as the higher relative levels of risks associated with intangible assets.

Based on the qualitative assessment as of October 3, 2021, the company determined it is more likely than not that the fair value of its other indefinite-life intangible assets are greater than the carrying amounts and no quantitative analyses were required.

As of September 27, 2020, the company identified several trademarks and trade names with indicators of potential risk for impairment and performed quantitative assessment. As a result of quantitative testing the company recognized $11.6 million of impairment charges associated with several trademarks, none of which were individually material. There were no other impairments in fiscal 2020 or 2021.

The company continues to monitor the global impacts of the COVID-19 pandemic to assess the outlook for demand of its products and the impact on its business and financial performance. If actual results are not consistent with management's estimate and assumptions, a material impairment charge of our trademarks and trade names could occur, which could have an adverse effect on the company's financial condition and results of operations.

40

Convertible Debt

The company issued convertible debt with debt and equity components. The company evaluated the different components and features of the hybrid instrument and determined whether certain elements were embedded derivative instruments which require bifurcation. Components of convertible debt instruments that upon conversion may be settled fully in cash or partly in cash based on a net-share settlement basis are accounted for separately as long-term debt and equity when the conversion feature of the convertible bonds constitute an embedded equity instrument. When an equity instrument is identified, proceeds from issuance are allocated between debt and equity by measuring first the liability component and then determining the equity component as a residual amount. Prior to January 3, 2021, the liability component was measured as the fair value of a similar nonconvertible debt, which results in the recognition of a debt discount. The debt discount amortizes to interest expense, net within the Consolidated Statements of Earnings, using the effective interest method based on the expected maturity of the debt. The equity component is reported in additional paid-in capital within the Consolidated Statement of Changes in Stockholders' Equity and is not remeasured as long as it continues to meet the conditions for equity classification.

The company allocated transaction costs related to the issuance of convertible debt using the same proportions as the proceeds from the convertible debt. Transaction costs attributable to the liability component are recorded as a direct deduction from the related debt liability in the Consolidated Balance Sheets and are amortized to interest expense, net within the Consolidated Statements of Earnings over the term of the convertible debt using the effective interest rate method. Transaction costs attributable to the equity component are netted within additional paid-in capital within the Consolidated Statement of Stockholders' Equity.

Effective January 3, 2021, the company early adopted ASU 2020-06 using the modified retrospective approach. The convertible debt is now accounted for as a single liability and therefore the company no longer recognized any amortization of debt discounts as non-cash interest expense.

For additional information regarding the company's convertible debt, see Note 5, Financing Arrangements, in the Notes to the Consolidated Financial Statements.

Pension Benefits

The company sponsors pension benefits to certain employees. The accounting for these plans depends on assumptions made by management, which are used by actuaries the company engages to calculate the projected and accumulated obligations and the annual expense recognized for these plans. These assumptions include expected long-term rate of return on plan assets and discount rates.

The amount of unrecognized actuarial gains and losses recognized in the current year’s operations is based on amortizing the unrecognized gains or losses for each plan that exceed the larger of 10% of the projected benefit obligation or the fair value of plan assets, also known as the corridor. The amount of unrecognized gain or loss that exceeds the corridor is amortized over the average future service of the plan participants or the average life expectancy of inactive plan participants for plans where all or almost all of the plan participants are inactive. While we believe that our assumptions are appropriate, significant differences in our actual experience or significant changes in our assumptions may materially affect our pension obligations and our future expense.

Income taxes

The company provides deferred income tax assets and liabilities based on the estimated future tax effects of differences between the financial and tax bases of assets and liabilities based on currently enacted tax laws. The company’s deferred and other tax balances are based on management’s interpretation of the tax regulations and rulings in numerous taxing jurisdictions. Income tax expense and liabilities recognized by the company also reflect its best estimates and assumptions regarding, among other things, the level of future taxable income, the effect of the company’s various tax planning strategies and uncertain tax positions. Future tax authority rulings and changes in tax laws, changes in projected levels of taxable income and future tax planning strategies could affect the actual effective tax rate and tax balances recorded by the company. The company follows the provisions under ASC 740-10-25 that provides a recognition threshold and measurement criteria for the financial statement recognition of a tax benefit taken or expected to be taken in a tax return. Tax benefits are recognized only when it is more likely than not, based on the technical merits, that the benefits will be sustained on examination. Tax benefits that meet the more-likely-than-not recognition threshold are measured using a probability weighting of the largest amount of tax benefit that has greater than 50% likelihood of being realized upon settlement. Whether the more-likely-than-not recognition threshold is met for a particular tax benefit is a matter of judgment based on the individual facts and circumstances evaluated in light of all available evidence as of the balance sheet date.

41

New Accounting Pronouncements

See Note 3(r) to the Consolidated Financial Statements for further information on the new accounting pronouncements.

Certain Risk Factors That May Affect Future Results

An investment in shares of the company's common stock involves risks. The company believes the risks and uncertainties described in "Item 1A. Risk Factors" and in "Special Note Regarding Forward-Looking Statements" are the material risks it faces. Additional risks and uncertainties not currently known to the company or that it currently deems immaterial may impair its business operations. If any of the risks identified in "Item 1A. Risk Factors" actually occurs, the company's business, results of operations and financial condition could be materially adversely affected, and the trading price of the company's common stock could decline.

42

Item 7A.    Quantitative and Qualitative Disclosure about Market Risk

The company is exposed to certain market risks that exist as part of its ongoing business operations, including fluctuations in changes in interest rates, foreign currency exchange rates and price volatility for certain commodities. The company does not hold or issue derivative financial instruments for trading or speculative purposes.

Interest Rate Risk

The company is exposed to market risk related to changes in interest rates. The following table summarizes the maturity of the company's debt obligations:

	Variable Rate Debt
2022	$	27,293
2023	23,621
2024	23,634
2025	757,945
2026 and thereafter	1,581,801
	$	2,414,294

The company is exposed to interest rate risk on its floating-rate debt. The company has entered into interest rate swaps to fix the interest rate applicable to certain of its variable-rate debt. The agreements swap one-month LIBOR for fixed rates. The company has designated these swaps as cash flow hedges and all changes in fair value of the swaps are recognized in accumulated other comprehensive income. As of January 1, 2022, the fair value of these instruments was a liability of $18.0 million. The change in fair value of these swap agreements in the first twelve months of 2021 was a gain of $24.6 million, net of taxes. The potential net loss on fair value for such instruments from a hypothetical 10% adverse change in quoted interest rates would not have a material impact on the company's financial position, results of operations and cash flows.

In August 2020, the company issued $747.5 million aggregate principal amount of Convertible Notes in a private offering pursuant to the Indenture. The company does not have economic interest rate exposure as the Convertible Notes have a fixed annual rate of 1.00%. The fair value of the Convertible Notes is subject to interest rate risk, market risk and other factors due to its conversion feature. The fair value of the Convertible Notes is also affected by the price and volatility of the company’s common stock and will generally increase or decrease as the market price of our common stock changes. The interest and market value changes affect the fair value of the Convertible Notes but do not impact the company’s financial position, cash flows or results of operations due to the fixed nature of the debt obligation. Additionally, the company carries the Convertible Notes at face value, less any unamortized discount on the balance sheet and presents the fair value for disclosure purposes only.

Foreign Exchange Derivative Financial Instruments

The company uses derivative financial instruments, principally foreign currency forward purchase and sale contracts with terms of less than one year, to hedge its exposure to changes in foreign currency exchange rates. The company’s primary hedging activities are to mitigate its exposure to changes in exchange rates on intercompany and third party trade receivables and payables. The company does not currently enter into derivative financial instruments for speculative purposes. In managing its foreign currency exposures, the company identifies and aggregates naturally occurring offsetting positions and then hedges residual balance sheet exposures. The potential loss on fair value for such instruments from a hypothetical 10% adverse change in quoted foreign exchange rates would not have a material impact on the company's financial position, results of operations and cash flows.

Derivative financial instruments are recognized on the balance sheet as either an asset or a liability measured at fair value. Changes in the market value and the related foreign exchange gains and losses are recorded in the statement of earnings.

43

Item 8.      Financial Statements and Supplementary Data

	Page
Reports of Independent Registered Public Accounting Firm (PCAOB ID:42)	45
Consolidated Balance Sheets	48
Consolidated Statements of Earnings	49
Consolidated Statements of Comprehensive Income	50
Consolidated Statements of Changes in Stockholders’ Equity	51
Consolidated Statements of Cash Flows	52
Notes to Consolidated Financial Statements	53
The following consolidated financial statement schedule is included in response to Item 15
Schedule II - Valuation and Qualifying Accounts and Reserves	91

All other schedules for which provision is made to applicable regulation of the Securities and Exchange Commission are not required under the related instruction or are inapplicable and, therefore, have been omitted.

44

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and the Board of Directors of The Middleby Corporation

Opinion on Internal Control over Financial Reporting

We have audited The Middleby Corporation’s internal control over financial reporting as of January 1, 2022, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework), (the COSO criteria). In our opinion, The Middleby Corporation (the Company) maintained, in all material respects, effective internal control over financial reporting as of January 1, 2022, based on the COSO criteria.

As indicated in the accompanying Management’s Report on Internal Control over Financial Reporting, management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of Novy, Imperial, Newton CFV, Kamado Joe and Masterbuilt and Char-Griller, which are included in the 2021 consolidated financial statements of the Company and constituted 17.6% and 1.0% of total and net assets, respectively, as of January 1, 2022 and 1.9% and (0.4%) of net sales and net earnings, respectively, for the year then ended. Our audit of internal control over financial reporting of the Company also did not include an evaluation of the internal control over financial reporting of Novy, Imperial, Newton CFV, Kamado Joe and Masterbuilt and Char-Griller.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of January 1, 2022 and January 2, 2021, the related consolidated statements of earnings, comprehensive income, changes in stockholders' equity and cash flows for each of the three years in the period ended January 1, 2022, and the related notes and financial statement schedule listed in the Index at Item 8 and our report dated March 2, 2022 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Chicago, Illinois

March 2, 2022

45

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and the Board of Directors of The Middleby Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of The Middleby Corporation (the Company) as of January 1, 2022 and January 2, 2021, the related consolidated statements of earnings, comprehensive income, changes in stockholders' equity and cash flows for each of the three years in the period ended January 1, 2022, and the related notes and financial statement schedule listed in the Index at Item 8 (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at January 1, 2022 and January 2, 2021, and the results of its operations and its cash flows for each of the three years in the period ended January 1, 2022, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of January 1, 2022, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated March 2, 2022 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates.

46

	Business Combinations
Description of the Matter	As described in Note 2 to the consolidated financial statements, the Company completed the acquisitions of Novy Invest NV and Kamado Joe and Masterbuilt for total net purchase consideration of $651.6 million in the year ended January 1, 2022. The acquisitions were accounted for under the acquisition method of accounting and the assets acquired and liabilities assumed have been recorded based on preliminary estimates of fair value which are subject to change based on the finalization of the fair values of the assets acquired and liabilities assumed. Auditing the Company’s accounting for the preliminary allocation of the purchase price for these acquisitions was complex due to the overall significance of the acquisitions and the estimation uncertainty in determining the fair value of identifiable intangible assets, which principally consisted of customer relationships and tradenames. The estimation uncertainty was primarily due to the sensitivity of the respective fair values to underlying assumptions. A significant assumption used by the Company to estimate the preliminary fair value of these assets was the determination of which of the Company’s historical acquisitions were of a comparable nature to be utilized as a basis for estimating the fair value of identified intangible assets. This determination was based upon an analysis by the Company of each acquiree’s overall business and customer base as compared to the Company’s historical acquisitions.
How We Addressed the Matter in Our Audit	We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls that address the risks of material misstatement relating to the estimation of the preliminary fair value of the identifiable intangible assets. For example, we tested controls over management’s review of the significant assumptions, such as their evaluation of each acquired business compared with historical acquisitions executed by the Company to determine similarities and differences which provided the basis for determining which of the historical transactions to use in estimating fair values of the identifiable intangible assets. To test the estimate of the preliminary fair value of the acquired identifiable intangible assets, our audit procedures included, among others, assessing the appropriateness of the historical acquisitions utilized as a basis in estimating the preliminary fair values and testing the underlying data used by the Company. For example, we obtained an understanding of the nature of each acquired business through audit procedures such as review of publicly available information, inquiries of management, and review of historical financial information. Based on this understanding, we compared the nature of each acquired business and operations to the historical acquisitions of the Company used in the preliminary fair value estimates. We also tested the mathematical accuracy of historical acquisition averages for identifiable intangible assets.

/s/ Ernst & Young LLP

We have served as the Company's auditor since 2012.

Chicago, Illinois

March 2, 2022

47

THE MIDDLEBY CORPORATION

CONSOLIDATED BALANCE SHEETS

JANUARY 1, 2022 AND JANUARY 2, 2021

(amounts in thousands, except share data)

	2021		2020
ASSETS
Current assets:
Cash and cash equivalents	$	180,362	$	268,103
Accounts receivable, net of reserve for doubtful accounts of $18,770 and $19,225	577,142		363,361
Inventories, net	837,418		540,198
Prepaid expenses and other	92,269		81,049
Prepaid taxes	19,894		17,782
Total current assets	1,707,085		1,270,493
Property, plant and equipment, net of accumulated depreciation of $266,203 and $229,871	380,980		344,482
Goodwill	2,243,469		1,934,261
Other intangibles, net of amortization of $442,208 and $374,061	1,875,377		1,450,381
Long-term deferred tax assets	33,194		76,052
Other assets	143,493		126,805
Total assets	$	6,383,598	$	5,202,474
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt	$	27,293	$	22,944
Accounts payable	304,740		182,773
Accrued expenses	582,855		494,541
Total current liabilities	914,888		700,258
Long-term debt	2,387,001		1,706,652
Long-term deferred tax liability	186,935		147,224
Accrued pension benefits	219,680		469,500
Other non-current liabilities	180,818		202,191
Stockholders' equity:
Preferred stock, $0.01 par value; nonvoting; 2,000,000 shares authorized; none issued	—		—
Common stock, $0.01 par value; 63,666,020 and 63,651,773 shares issued in 2021 and 2020, respectively	147		147
Paid-in capital	357,309		433,308
Treasury stock, at cost; 8,170,276 and 8,013,296 shares in 2021 and 2020	(566,399)		(537,134)
Retained earnings	3,062,303		2,568,756
Accumulated other comprehensive loss	(359,084)		(488,428)
Total stockholders' equity	2,494,276		1,976,649
Total liabilities and stockholders' equity	$	6,383,598	$	5,202,474

The accompanying Notes to Consolidated Financial Statements

are an integral part of these consolidated financial statements.

48

THE MIDDLEBY CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE FISCAL YEARS ENDED JANUARY 1, 2022, JANUARY 2, 2021

AND DECEMBER 28, 2019

(amounts in thousands, except per share data)

	2021		2020		2019
Net sales	$	3,250,792	$	2,513,257	$	2,959,446
Cost of sales	2,055,932		1,631,209		1,855,949
Gross profit	1,194,860		882,048		1,103,497
Selling, general, and administrative expenses	667,976		531,897		593,813
Restructuring expenses	7,655		12,375		10,480
Merger termination fee	(110,000)		—		—
Gain on litigation settlement	—		—		(14,839)
Gain on sale of plant	(763)		(1,982)		—
Impairments	—		15,327		—
Income from operations	629,992		324,431		514,043
Interest expense and deferred financing amortization, net	57,157		78,617		82,609
Net periodic pension benefit (other than service cost & curtailment)	(45,066)		(39,996)		(29,722)
Curtailment loss	—		14,682		865
Other (income) expense, net	(1,603)		3,071		(2,328)
Earnings before income taxes	619,504		268,057		462,619
Provision for income taxes	131,012		60,763		110,379
Net earnings	$	488,492	$	207,294	$	352,240
Net earnings per share:
Basic	$	8.85	$	3.76	$	6.33
Diluted	$	8.62	$	3.76	$	6.33
Weighted average number of shares
Basic	55,216		55,093		55,647
Dilutive common stock equivalents	1,449		43		9
Diluted	56,665		55,136		55,656

The accompanying Notes to Consolidated Financial Statements

are an integral part of these consolidated financial statements.

49

THE MIDDLEBY CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE FISCAL YEARS ENDED JANUARY 1, 2022, JANUARY 2, 2021

AND DECEMBER 28, 2019

(amounts in thousands)

	2021		2020		2019
Net earnings	$	488,492	$	207,294	$	352,240
Other comprehensive income (loss):
Foreign currency translation adjustments	(47,693)		55,744		7,066
Pension liability adjustment, net of tax	151,223		(172,583)		(57,398)
Unrealized gain (loss) on interest rate swaps, net of tax	24,484		(20,656)		(24,125)
Unrealized gain on certain investments, net of tax	$	1,330	$	—	$	—
Other comprehensive income (loss):	$	129,344	$	(137,495)	$	(74,457)
Comprehensive income	$	617,836	$	69,799	$	277,783

The accompanying Notes to Consolidated Financial Statements

are an integral part of these consolidated financial statements.

50

THE MIDDLEBY CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

FOR THE FISCAL YEARS ENDED JANUARY 1, 2022, JANUARY 2, 2021

AND DECEMBER 28, 2019

(amounts in thousands)

	Common Stock		Paid-in Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income/(loss)		Total Stockholders' Equity
Balance, December 29, 2018	$	145	$	377,419	$	(445,118)	$	2,009,233	$	(276,476)	$	1,665,203
Net earnings	—		—		—		352,240		—		352,240
Adoption of ASU 2017-12 (1)	—		—		—		(11)		11		—
Currency translation adjustments	—		—		—		—		7,066		7,066
Change in unrecognized pension benefit costs, net of tax of $(11,914)	—		—		—		—		(57,398)		(57,398)
Unrealized loss on interest rate swap, net of tax of $(8,516)	—		—		—		—		(24,136)		(24,136)
Stock compensation	—		8,133		—		—		—		8,133
Stock issuance	—		1,850		—		—		—		1,850
Purchase of treasury stock	—		—		(6,144)		—		—		(6,144)
Balance, December 28, 2019	$	145	$	387,402	$	(451,262)	$	2,361,462	$	(350,933)	$	1,946,814
Net earnings	—		—		—		207,294		—		207,294
Currency translation adjustments	—		—		—		—		55,744		55,744
Change in unrecognized pension benefit costs, net of tax of $(40,426)	—		—		—		—		(172,583)		(172,583)
Unrealized loss on interest rate swap, net of tax of $(7,147)	—		—		—		—		(20,656)		(20,656)
Stock compensation	—		19,613		—		—		—		19,613
Stock issuance	2		25,985		—		—		—		25,987
Purchase of treasury stock	—		—		(85,872)		—		—		(85,872)
Equity component of issuance of convertible notes	—		308		—		—		—		308
Balance, January 2, 2021	$	147	$	433,308	$	(537,134)	$	2,568,756	$	(488,428)	$	1,976,649
Net earnings	—		—		—		488,492		—		488,492
Adoption of ASU 2020-06 (2)	—		(79,430)		—		5,055		—		(74,375)
Currency translation adjustments	—		—		—		—		(47,693)		(47,693)
Change in unrecognized pension benefit costs, net of tax of $49,589	—		—		—		—		151,223		151,223
Unrealized gain on interest rate swap, net of tax of $8,619	—		—		—		—		24,484		24,484
Unrealized gain on certain investments, net of tax of $443	—		—		—		—		1,330		1,330
Stock compensation	—		42,330		—		—		—		42,330
Stock issuance	—		2,522		—		—		—		2,522
Purchase of treasury stock	—		—		(29,265)		—		—		(29,265)
Purchase of capped calls, net of tax of $(13,132)	—		(41,421)		—		—		—		(41,421)
Balance, January 1, 2022	$	147	$	357,309	$	(566,399)	$	3,062,303	$	(359,084)	$	2,494,276

(1) As of December 30, 2018, the company adopted ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" using the modified retrospective method. The adoption of this guidance resulted in the recognition of less than $(0.1) million as an adjustment to the opening balance of retained earnings.

(2) As of January 3, 2021 the company adopted ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity using the modified retrospective method. The adoption of this guidance resulted in a $79.4 million reduction to paid-in capital, net of tax of $25.5 million, and the recognition of $5.1 million as an adjustment to the opening balance of retained earnings, net of tax of $1.6 million.

The accompanying Notes to Consolidated Financial Statements

are an integral part of these consolidated financial statements.

51

THE MIDDLEBY CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE FISCAL YEARS ENDED JANUARY 1, 2022, JANUARY 2, 2021

AND DECEMBER 28, 2019

(amounts in thousands)

	2021		2020		2019
Cash flows from operating activities—
Net earnings	$	488,492	$	207,294	$	352,240
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization	125,243		110,532		103,428
Amortization of discount and issuance costs on convertible notes	—		7,971		—
Non-cash share-based compensation	42,330		19,613		8,133
Deferred income taxes	6,863		16,421		22,212
Net periodic pension benefit (other than service costs)	(45,066)		(25,314)		(28,857)
Gain on sale of plant	(763)		(1,982)		—
Impairments	—		15,327		—
Non-cash restructuring	1,924		—		—
Changes in assets and liabilities, net of acquisitions
Accounts receivable, net	(99,890)		90,399		(27,748)
Inventories, net	(204,167)		66,690		(28,288)
Prepaid expenses and other assets	10,853		782		5,067
Accounts payable	61,336		(3,015)		(29,396)
Accrued expenses and other liabilities	36,244		20,067		634
Net cash provided by operating activities	423,399		524,785		377,425
Cash flows from investing activities—
Net additions to property, plant and equipment	(46,551)		(34,849)		(46,609)
Proceeds from sale of property, plant and equipment	6,290		14,147		—
Purchase of intangible assets	(5,000)		(7,052)		—
Acquisitions, net of cash acquired	(963,600)		(79,003)		(281,058)
Net cash used in investing activities	(1,008,861)		(106,757)		(327,667)
Cash flows from financing activities—
Proceeds under Credit Facility	1,739,101		2,567,305		543,294
Repayments under Credit Facility	(1,135,058)		(3,345,770)		(560,363)
Proceeds from issuance of convertible notes, net of issuance costs	—		729,933		—
Premiums paid for capped call	(54,553)		(104,650)		—
Net repayments under foreign bank loan	(2,030)		1,305		(405)
Net repayments under other debt arrangement	(303)		(45)		(179)
Payments of deferred purchase price	(5,861)		(3,700)		(1,648)
Repurchase of treasury stock	(29,265)		(85,872)		(6,144)
Debt issuance costs	(9,242)		(10,974)		—
Net cash provided by (used in) financing activities	502,789		(252,468)		(25,445)
Effect of exchange rates on cash and cash equivalents	(5,068)		8,043		(1,514)
Changes in cash and cash equivalents—
Net (decrease) increase in cash and cash equivalents	(87,741)		173,603		22,799
Cash and cash equivalents at beginning of year	268,103		94,500		71,701
Cash and cash equivalents at end of year	$	180,362	$	268,103	$	94,500
Non-cash investing and financing activities:
Stock issuance related to acquisition and purchase of intangible assets	2,522		15,869		—

 The accompanying Notes to Consolidated Financial Statements

are an integral part of these consolidated financial statements.

52

THE MIDDLEBY CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED JANUARY 1, 2022, JANUARY 2, 2021

AND DECEMBER 28, 2019

(1)NATURE OF OPERATIONS

The Middleby Corporation (the "company") is engaged in the design, manufacture and sale of commercial foodservice, food processing equipment and residential kitchen equipment. The company manufactures and assembles this equipment at thirty-nine U.S. and twenty-eight international manufacturing facilities. The company operates in three business segments: 1) the Commercial Foodservice Equipment Group, 2) the Food Processing Equipment Group and 3) the Residential Kitchen Equipment Group.

The Commercial Foodservice Equipment Group has a broad portfolio of foodservice equipment, which enable it to serve virtually any cooking, warming, 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, convenience stores, 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, and IoT solutions.

The Food Processing Equipment Group offers a broad portfolio of processing solutions for customers producing pre-cooked meat products, such as hot dogs, dinner sausages, poultry and lunchmeats and baked goods such as muffins, cookies and bread. Through its broad line of products, the company is able to deliver a wide array of cooking solutions to service a variety of food processing requirements demanded by its customers. The company can offer highly integrated 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, formers, 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, 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.

53

(2) ACQUISITIONS AND PURCHASE ACCOUNTING

The following represents the company's significant acquisitions in 2021 and 2020, the termination of a Merger Agreement, as well as summarized information on various acquisitions that were not individually material.

Termination of Welbilt Merger

On April 20, 2021, Middleby entered into a Merger Agreement with Welbilt, Inc. Following Welbilt's receipt of an alternative acquisition proposal, on July 13, 2021, Middleby announced that, under the terms of the Merger Agreement, it would not exercise its right to propose any modifications to the terms of the Merger Agreement and would allow the match period to expire. Accordingly, on July 14, 2021, Welbilt delivered to Middleby a written notice terminating the Merger Agreement and, concurrently with Middleby’s receipt of the termination fee of $110.0 million in cash from Welbilt, the Merger Agreement was terminated on July 14, 2021.

The termination fee received is reflected in the Consolidated Statements of Comprehensive Earnings as the "merger termination fee" and $19.7 million of deal costs associated with the transaction are reflected in selling, general and administrative expenses in the Consolidated Statements of Comprehensive Earnings.

2020 Acquisitions

During 2020, the company completed various acquisitions that were not individually material. The final allocation of consideration paid for the other 2020 acquisitions is summarized as follows (in thousands):

	Preliminary Opening Balance Sheet		Measurement Period Adjustments		Adjusted Opening Balance Sheet
Cash	$	14,647	$	—	$	14,647
Current assets	43,670		(13,390)		30,280
Property, plant and equipment	3,014		(349)		2,665
Goodwill	55,335		3,847		59,182
Other intangibles	63,201		625		63,826
Other assets	6,121		52		6,173
Current liabilities	(54,478)		13,037		(41,441)
Long-term deferred tax (liability) asset	(123)		387		264
Other non-current liabilities	(21,902)		791		(21,111)
Consideration paid at closing	$	109,485	$	5,000	$	114,485
Deferred payments	8,666		(468)		8,198
Contingent consideration	16,144		(836)		15,308
Net assets acquired and liabilities assumed	$	134,295	$	3,696	$	137,991

The long-term deferred tax asset amounted to $0.3 million and is related to the difference between the book and tax basis on other assets and liability accounts.

The goodwill and $15.7 million of other intangibles associated with the trade names are subject to the non-amortization provisions of ASC 350. Other intangibles also include $10.6 million allocated to customer relationships, $31.2 million allocated to developed technology and $6.3 million allocated to backlog, which are being amortized over periods of 6 to 9 years, 6 to 12 years, and 3 to 9 months, respectively. Goodwill of $59.2 million and other intangibles of $63.8 million from these acquisitions are allocated to the Commercial Foodservice Equipment Group for segment reporting purposes. Of these assets, goodwill of $24.4 million and intangibles of $63.5 million are expected to be deductible for tax purposes.

54

Several purchase agreements include deferred payment and earnout provisions providing for contingent payments due to the sellers to the extent certain financial targets are exceeded. The deferred payments are payable between 2021 and 2022. The contractual obligations associated with the deferred payments on the acquisition dates amount to $8.2 million. The earnouts are payable between 2021 and 2023, if the company exceeds certain sales and earnings targets. The contractual obligations associated with the contingent earnout provisions recognized on the acquisition dates amount to $15.3 million.

Novy Invest NV

On July 12, 2021, the company completed its acquisition of all of the capital stock of Novy Invest NV ("Novy"), a leading manufacturer of premium residential ventilation hoods and cook tops located in Belgium, for a purchase price of approximately $250.9 million, net of cash acquired.

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair values of assets acquired and liabilities assumed (in thousands):

	Preliminary Opening Balance Sheet		Preliminary Measurement Period Adjustments		Adjusted Opening Balance Sheet
Cash	$	16,152	$	—	$	16,152
Current assets	23,762		—		23,762
Property, plant and equipment	17,058		(969)		16,089
Goodwill	142,741		(17,109)		125,632
Other intangibles	126,557		22,966		149,523
Other assets	26		173		199
Current liabilities	(23,440)		569		(22,871)
Long-term deferred tax liability	(33,918)		(5,519)		(39,437)
Other non-current liabilities	(1,930)		(111)		(2,041)
Net assets acquired and liabilities assumed	$	267,008	$	—	$	267,008

The long-term deferred tax liability amounted to $39.4 million. The deferred tax liability is comprised of $37.4 million related to the difference between the book and tax basis of identifiable intangible assets and $2.0 million related to the difference between the book and tax basis on identifiable tangible asset and liability accounts.

The goodwill and $105.7 million of other intangibles associated with the trade names are subject to the non-amortization provisions of ASC 350. Other intangibles also include $40.0 million allocated to customer relationships, $2.7 million allocated to developed technology and $1.1 million allocated to backlog, which are being amortized over periods of 7 years, 7 years, and 3 months, respectively. Goodwill of $125.6 million and other intangibles of $149.5 million from this acquisition are allocated to the Residential Kitchen Equipment Group for segment reporting purposes. Goodwill and other intangibles are not expected to be deductible for tax purposes.

The company believes that information gathered to date provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, but the company is waiting for additional information necessary to finalize those fair values for all acquisitions completed during 2021. The intangible assets are pending external valuation and are preliminarily valued using historical information from the Residential Kitchen Equipment Group and qualitative assessment of the business at acquisition date. Specifically, the company estimated the fair values of the intangible assets based on the percentage of purchase price assigned to similar intangible assets in previous acquisitions. Thus, the provisional measurements of fair values set forth above are subject to change. The company expects to complete the purchase price allocation as soon as practicable but no later than one year from the acquisition date.

55

Kamado Joe and Masterbuilt

On December 27, 2021, the company completed its acquisition of all of the member interests of Masterbuilt Holdings, LLC ("Kamado Joe and Masterbuilt") and their residential outdoor brands of Kamado Joe and Masterbuilt, a leader in outdoor residential cooking located in the Atlanta, Georgia area, for a purchase price of approximately $400.7 million, net of cash acquired. The purchase price included $403.6 million in cash and 12,921 shares of Middleby common stock valued at $2.5 million. The purchase price is subject to adjustment based upon a working capital provision provided by the purchase agreement. The company expects to finalize this in the second quarter of 2022.

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair values of assets acquired and liabilities assumed (in thousands):

	Preliminary Opening Balance Sheet
Cash	$	5,381
Current assets	137,826
Property, plant and equipment	7,773
Goodwill	110,052
Other intangibles	215,577
Other assets	2,143
Current liabilities	(54,865)
Long-term deferred tax liability	(15,907)
Other non-current liabilities	(1,914)
Net assets acquired and liabilities assumed	$	406,066

The long-term deferred tax liability amounted to $15.9 million. The net deferred tax liability is comprised of $2.3 million of deferred tax asset related to tax loss carryforwards and $18.2 million of deferred tax liability related to the difference between the book and tax basis on identifiable tangible asset and liability accounts.

The goodwill and $158.8 million of other intangibles associated with the trade names are subject to the non-amortization provisions of ASC 350. Other intangibles also include $50.3 million allocated to customer relationships and $6.5 million allocated to backlog, which are being amortized over periods of 7 years and 3 months, respectively. Goodwill of $110.1 million and other intangibles of $215.6 million of the company are allocated to the Residential Kitchen Equipment Group for segment reporting purposes. Of these assets, goodwill of $71.7 million and intangibles of $164.3 million are expected to be deductible for tax purposes.

The company believes that information gathered to date provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, but the company is waiting for additional information necessary to finalize those fair values for all acquisitions completed during 2021. The intangible assets are pending external valuation and are preliminarily valued using historical information from the Residential Kitchen Equipment Group and qualitative assessment of the business at acquisition date. Specifically, the company estimated the fair values of the intangible assets based on the percentage of purchase price assigned to similar intangible assets in previous acquisitions. Thus, the provisional measurements of fair values set forth above are subject to change. The company expects to complete the purchase price allocation as soon as practicable but no later than one year from the acquisition date.

56

Other 2021 Acquisitions

During the year ended January 1, 2022, the company completed various acquisitions that were not individually material. The following estimated fair values of assets acquired and liabilities assumed are based on the information that was available as of the acquisition dates for the other 2021 acquisitions and are summarized as follows (in thousands):

	Preliminary Opening Balance Sheet		Preliminary Measurement Period Adjustments		Adjusted Opening Balance Sheet
Cash	$	6,414	$	—	$	6,414
Current assets	76,077		223		76,300
Property, plant and equipment	19,561		(72)		19,489
Goodwill	85,270		9,065		94,335
Other intangibles	158,725		(9,193)		149,532
Other assets	2,101		31		2,132
Current liabilities	(33,910)		(38)		(33,948)
Long-term deferred tax liability	(3,010)		—		(3,010)
Other non-current liabilities	(7,092)		(16)		(7,108)
Consideration paid at closing	$	304,136	$	—	$	304,136
Contingent consideration	9,404		—		9,404
Net assets acquired and liabilities assumed	$	313,540	$	—	$	313,540

The long-term deferred tax liability amounted to $3.0 million. The net deferred tax liability is comprised of $0.6 million of deferred tax asset related to tax loss carryforwards and $3.6 million of deferred tax liability related to the difference between the book and tax basis on identifiable tangible asset and liability accounts.

The goodwill and $97.1 million of other intangibles associated with the trade names are subject to the non-amortization provisions of ASC 350. Other intangibles also include $41.1 million allocated to customer relationships, $3.4 million allocated to developed technology, and $7.9 million allocated to backlog, which are being amortized over periods of 7 years, 7 years, and 3 months, respectively. Goodwill of $30.5 million and other intangibles of $89.0 million are allocated to the Residential Kitchen Equipment Group for segment reporting purposes. Goodwill of $63.8 million and other intangibles of $60.5 million are allocated to the Commercial Foodservice Equipment Group for segment reporting purposes. Of these assets, goodwill of $92.3 million and intangibles of $148.4 million are expected to be deductible for tax purposes.

One purchase agreement includes earnout provisions providing for contingent payments due to the sellers to the extent certain financial targets are exceeded and upon the achievement of product rollout targets. One earnout is payable upon the achievement of product rollout targets. The second earnout is payable during 2026 if the company exceeds certain earnings targets. The contractual obligation associated with the contingent earnout provisions recognized on the acquisition date amount to $9.4 million.

The company believes that information gathered to date provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, but the company is waiting for additional information necessary to finalize those fair values for all acquisitions completed during 2021. Certain intangible assets are pending external valuation and are preliminarily valued using historical information from the Residential Kitchen Equipment Group and Commercial Foodservice Equipment Group and qualitative assessments of the individual businesses at acquisition date. Specifically, the company estimated the fair values of the intangible assets based on the percentage of purchase price assigned to similar intangible assets in previous acquisitions. Thus, the provisional measurements of fair values set forth above are subject to change. The company expects to complete the purchase price allocation as soon as practicable but no later than one year from the acquisition date.

57

Pro Forma Financial Information

In accordance with ASC 805 Business Combinations, the following unaudited pro forma results of operations for the twelve months ended January 1, 2022 and January 2, 2021, assumes the 2020 and 2021 acquisitions described above were completed on December 29, 2019 (first day of fiscal year 2020). The following pro forma results include adjustments to reflect amortization of intangibles associated with the acquisitions and the effects of adjustments made to the carrying value of certain assets (in thousands, except per share data):  

	Twelve Months Ended
	January 1, 2022		January 2, 2021
Net sales	$	3,732,010	$	2,980,164
Net earnings	519,879		177,923
Net earnings per share:
Basic	$	9.42	$	3.23
Diluted	$	9.17	$	3.23

The historical consolidated financial information of the Company and the acquisitions have been adjusted in the pro forma information to give effect to pro forma events that are (1) directly attributable to the transactions, (2) factually supportable and (3) expected to have a continuing impact on the combined results. Pro forma data may not be indicative of the results that would have been obtained had these acquisitions occurred at the beginning of the periods presented, nor is it intended to be a projection of future results. Additionally, the pro forma financial information does not reflect the costs which the company has incurred or may incur to integrate the acquired businesses.

(3)    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a)Basis of Presentation

The consolidated financial statements include the accounts of the company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires the company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses as well as related disclosures. Significant items that are subject to such estimates and judgments include allowances for doubtful accounts, reserves for excess and obsolete inventories, long-lived and intangible assets, warranty reserves, insurance reserves, income tax reserves and post-retirement obligations. On an ongoing basis, the company evaluates its estimates and assumptions based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.

The company's fiscal year ends on the Saturday nearest December 31. Fiscal years 2021, 2020, and 2019 ended on January 1, 2022, January 2, 2021 and December 28, 2019, respectively, and included 52, 53 and 52 weeks, respectively.

(b)Cash and Cash Equivalents

The company considers all short-term investments with original maturities of three months or less when acquired to be cash equivalents. The company’s policy is to invest its excess cash in interest-bearing deposits with major banks that are subject to minimal credit and market risk.

(c)Accounts Receivable

Accounts receivable, as shown in the consolidated balance sheets, are net of allowances for doubtful accounts of $18.8 million and $19.2 million at January 1, 2022 and January 2, 2021, respectively. At January 1, 2022, all accounts receivable are expected to be collected within one year.

58

(d)    Inventories

Inventories are composed of material, labor and overhead and are stated at the lower of cost or net realizable value. Costs for inventory have been determined using the first-in, first-out ("FIFO") method. The company estimates reserves for inventory obsolescence and shrinkage based on its judgment of future realization. Inventories at January 1, 2022 and January 2, 2021 are as follows (in thousands):

	2021		2020
Raw materials and parts	$	421,361	$	263,200
Work in process	65,581		55,104
Finished goods	350,476		221,894
	$	837,418	$	540,198

(e)Property, Plant and Equipment

Property, plant and equipment are carried at cost as follows (in thousands):

	2021		2020
Land	$	54,477	$	40,707
Building and improvements	270,812		245,435
Furniture and fixtures	56,706		68,063
Machinery and equipment	265,188		220,148
	647,183		574,353
Less accumulated depreciation	(266,203)		(229,871)
	$	380,980	$	344,482

Property, plant and equipment are depreciated or amortized on a straight-line basis over their useful lives based on management's estimates of the period over which the assets will be utilized to benefit the operations of the company. The useful lives are estimated based on historical experience with similar assets, taking into account anticipated technological or other changes. The company periodically reviews these lives relative to physical factors, economic factors and industry trends. If there are changes in the planned use of property and equipment or if technological changes were to occur more rapidly than anticipated, the useful lives assigned to these assets may need to be shortened, resulting in the recognition of increased depreciation and amortization expense in future periods.

Following is a summary of the estimated useful lives:

Description	Life
Building and improvements	20 to 40 years
Furniture and fixtures	3 to 7 years
Machinery and equipment	3 to 10 years

Depreciation expense amounted to $42.7 million, $39.1 million and $37.9 million in fiscal 2021, 2020 and 2019, respectively.

Expenditures which significantly extend useful lives are capitalized. Maintenance and repairs are charged to expense as incurred. Asset impairments are recorded whenever events or changes in circumstances indicate that the recorded value of an asset is greater than the sum of its expected future undiscounted cash flows. Asset impairments are recorded at the amount by which the recorded value of an asset exceeds its fair value.

59

(f)Goodwill and Other Intangibles

The company’s business acquisitions result in the recognition of goodwill and other intangible assets, which are a significant portion of the company’s total assets. Goodwill represents the excess of acquisition costs over the fair value of the net tangible assets and identifiable intangible assets acquired in a business combination. Identifiable intangible assets are recognized separately from goodwill and include trademarks and trade names, technology, customer relationships and other specifically identifiable assets. Trademarks and trade names are deemed to be indefinite-lived. Goodwill and indefinite-lived intangible assets are not amortized, but are subject to impairment testing.

The company performs the annual impairment assessment for goodwill and indefinite-lived intangible assets as of first day of the fourth quarter of the fiscal year and more frequently if indicators of impairment exist. The goodwill impairment test is performed at the reporting unit level. The company initially performs a qualitative analysis to determine if it is more likely than not that the goodwill balance or indefinite-life intangible asset is impaired. In conducting a qualitative assessment, the company analyzes a variety of events or factors that may influence the fair value of the reporting unit or indefinite-life intangible, including, but not limited to: macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, share price and other relevant factors.

If an indicator of impairment is determined from the qualitative analysis, then the company will perform a quantitative analysis. The fair value of each reporting unit is compared to its carrying value. If the fair value of the reporting unit is less than its carrying value, the resulting difference will be a charge to impairment of goodwill in the Consolidated Statements of Earnings in the period in which the determination is made. Fair value is determined using a combination of present value techniques and market prices of comparable businesses.

The company performed a qualitative assessment as of October 3, 2021 over all three reporting units and determined it is not more likely than not that the fair values of our reporting units are less than the carrying amounts and therefore quantitative analysis is not required. No impairment was recognized and the company has not recognized any goodwill impairments and therefore there are no accumulated impairment losses.

Goodwill is allocated to the business segments as follows (in thousands):

	Commercial Foodservice		Food Processing		Residential Kitchen		Total
Balance as of December 28, 2019	$	1,153,552	$	257,679	$	438,516	$	1,849,747
Goodwill acquired during the year	56,773		—		—		56,773
Measurement period adjustments to goodwill acquired in prior year	(56)		(8,732)		1,770		(7,018)
Exchange effect	18,167		6,851		9,741		34,759
Balance as of January 2, 2021	$	1,228,436	$	255,798	$	450,027	$	1,934,261
Goodwill acquired during the year	63,849		—		266,170		330,019
Measurement period adjustments to goodwill acquired in prior year	2,411		—		—		2,411
Exchange effect	(9,609)		(5,083)		(8,530)		(23,222)
Balance as of January 1, 2022	$	1,285,087	$	250,715	$	707,667	$	2,243,469

60

Intangible assets consist of the following (in thousands):

	January 1, 2022					January 2, 2021
	Estimated Weighted Avg Remaining Life	Gross Carrying Amount		Accumulated Amortization		Estimated Weighted Avg Remaining Life	Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Customer relationships	7.6	$	863,339	$	(411,327)	8.5	$	735,264	$	(347,029)
Backlog	0.2	13,684		(929)		0.3	5,443		(2,638)
Developed technology	8.9	73,461		(29,952)		10.0	56,931		(24,394)
		$	950,484	$	(442,208)		$	797,638	$	(374,061)
Indefinite-lived intangible assets:
Trademarks and trade names		$	1,367,101				$	1,026,804

The company completed its annual impairment assessment for indefinite-lived intangible assets as of October 3, 2021. Based on this qualitative assessment, the company determined it is not more likely than not that the fair values of our reporting units are less than the carrying amounts and therefore a quantitative impairment analysis was not required.

The estimates of future cash flows used in determining the fair value of goodwill and indefinite-lived intangible assets involve significant management judgment and are based upon assumptions about expected future operating performance, economic conditions, market conditions and cost of capital. Inherent in estimating the future cash flows are uncertainties beyond our control, such as changes in capital markets. The company continues to monitor the global impact of the COVID-19 pandemic to assess the outlook for demand of its products and the impact on its business and financial performance. The actual cash flows could differ materially from management's estimates due to changes in business conditions, operating performance and economic conditions.

During 2020 testing, the company recorded impairment charges of $11.6 million associated with several trade names, none of which were individually material. The company recorded charges of $5.3 million associated with trademarks within the Commercial Foodservice Equipment Group, $5.4 million for the Food Processing Equipment Group and $0.9 million for the Residential Kitchen Equipment Group.

Definite-lived intangible assets are amortized over their estimated useful lives and tested for impairment in accordance with the methodology discussed above under "Property, Plant and Equipment."

The aggregate intangible amortization expense was $75.8 million, $69.0 million and $64.0 million in 2021, 2020 and 2019, respectively. The estimated future amortization expense of intangible assets is as follows (in thousands):

2022	$	95,132
2023	76,386
2024	64,914
2025	58,553
2026	55,277
2027 and thereafter	158,014
	$	508,276

61

 (g)    Accrued Expenses

Accrued expenses consist of the following at January 1, 2022 and January 2, 2021, respectively (in thousands):

	2021		2020
Contract liabilities	$	133,315	$	93,871
Accrued payroll and related expenses	115,762		93,926
Accrued warranty	80,215		69,667
Accrued customer rebates	72,451		43,703
Accrued short-term leases	22,753		22,493
Accrued sales and other tax	22,684		22,030
Accrued professional fees	19,292		12,133
Accrued agent commission	13,670		11,105
Accrued product liability and workers compensation	10,952		12,909
Accrued interest rate swaps	1,171		14,075
Accrued liabilities held for sale	—		22,313
Other accrued expenses	90,590		76,316
	$	582,855	$	494,541

(h)Litigation Matters

From time to time, the company is subject to proceedings, lawsuits and other claims related to products, suppliers, employees, customers and competitors. The company maintains insurance to partially cover product liability, workers compensation, property and casualty, and general liability matters. The company is required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable losses. A determination of the amount of accrual required, if any, for these contingencies is made after assessment of each matter and the related insurance coverage. The required accrual may change in the future due to new developments or changes in approach such as a change in settlement strategy in dealing with these matters. The company does not believe that any such matter will have a material adverse effect on its financial condition, results of operations or cash flows of the company.

During 2019, we reached a settlement with respect to a lawsuit filed by the company arising from a prior acquisition included our Residential Kitchen Equipment Segment. The gain associated with this settlement, which is net of the release of funds in escrow, is reflected in the consolidated statement of earnings.

62

(i)Accumulated Other Comprehensive Income (Loss)

The following table summarizes the components of accumulated other comprehensive income (loss) as reported in the consolidated balance sheets (in thousands):

	2021		2020
Unrecognized pension benefit costs, net of tax of $(39,470) and $(89,059)	$	(249,696)	$	(400,919)
Unrealized loss on interest rate swap, net of tax of $(4,501) and $(13,120)	(13,064)		(37,548)
Unrealized gain on certain investments, net of tax of $433 and $—	1,330		—
Currency translation adjustments	(97,654)		(49,961)
	$	(359,084)	$	(488,428)

Changes in accumulated other comprehensive income (loss) (1) were as follows (in thousands):

	Currency Translation Adjustment		Pension Benefit Costs		Unrealized Gain/(Loss) Interest Rate Swap		Unrealized Gain Certain Investments		Total
Balance as of December 28, 2019	$	(105,705)	$	(228,336)	$	(16,892)	$	—	$	(350,933)
Other comprehensive income before reclassification	55,744		(174,826)		(36,170)		—		(155,252)
Amounts reclassified from accumulated other comprehensive income	—		2,243		15,514		—		17,757
Net current-period other comprehensive income	$	55,744	$	(172,583)	$	(20,656)	—		$	(137,495)
Balance as of January 2, 2021	$	(49,961)	$	(400,919)	$	(37,548)	$	—	$	(488,428)
Other comprehensive income before reclassification	(47,693)		137,187		6,015		1,330		96,839
Amounts reclassified from accumulated other comprehensive income	—		14,036		18,469		—		32,505
Net current-period other comprehensive income	$	(47,693)	$	151,223	$	24,484	$	1,330	$	129,344
Balance as of January 1, 2022	$	(97,654)	$	(249,696)	$	(13,064)	$	1,330	$	(359,084)

    (1) As of January 1, 2022 pension, unrealized gain/(loss) interest rate swap and gain on certain investments amounts are net of tax of $(39.5) million, $(4.5) million and $0.4 million, respectively. During the twelve months ended January 1, 2022, the adjustments to pension benefit costs unrealized gain/(loss) interest rate swap and gain on certain investments were net of tax of $49.6 million, $8.6 million and $0.4 million, respectively.

63

(j)    Fair Value Measures

ASC 820 Fair Value Measurements and Disclosures defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into the following levels:

Level 1 – Quoted prices in active markets for identical assets or liabilities

Level 2 – Inputs, other than quoted prices in active markets, that are observable either directly or indirectly

Level 3 – Unobservable inputs based on our own assumptions

The company’s financial assets and liabilities that are measured at fair value are categorized using the fair value hierarchy at January 1, 2022 and January 2, 2021 are as follows (in thousands):

	Fair Value Level 1		Fair Value Level 2		Fair Value Level 3		Total
As of January 1, 2022
Financial Assets:
Interest rate swaps	$	—	$	3,645	$	—	$	3,645
Foreign exchange derivative contracts	$	—	$	1,095	$	—	$	1,095
Financial Liabilities:
Interest rate swaps	$	—	$	21,635	$	—	$	21,635
Contingent consideration	$	—	$	—	$	34,983	$	34,983
As of January 2, 2021
Financial Liabilities:
Interest rate swaps	$	—	$	51,093	$	—	$	51,093
Contingent consideration	$	—	$	—	$	25,558	$	25,558
Foreign exchange derivative contracts	$	—	$	2,191	$	—	$	2,191

The contingent consideration, as of January 1, 2022 and January 2, 2021, relates to the earnout provisions recorded in conjunction with various purchase agreements.

The earnout provisions associated with these acquisitions are based upon performance measurements related to sales and earnings, as defined in the respective purchase agreements. On a quarterly basis, the company assesses the projected results for each of the acquisitions in comparison to the earnout targets and adjusts the liability accordingly. During fiscal 2021 the increase in contingent consideration was associated with 2021 acquisitions and there were no material performance assumption adjustments.

(k)Foreign Currency

The income statements of the company’s foreign operations are translated at the monthly average rates. Assets and liabilities of the company’s foreign operations are translated at exchange rates at the balance sheet date. These translation adjustments are not included in determining net income for the period but are disclosed and accumulated in a separate component of stockholders’ equity. Exchange gains and losses on foreign currency transactions are included in determining net income for the period in which they occur. These transactions amounted to a gain of $0.3 million, loss of $2.9 million and a loss of $0.9 million in 2021, 2020 and 2019, respectively, and are included in other expense on the statements of earnings.

(l)Shipping and Handling Costs

Fees billed to the customer for shipping and handling are classified as a component of net revenues. Shipping and handling costs are included in cost of products sold.

64

(m)Warranty Costs

In the normal course of business, the company issues product warranties for specific product lines and provides for the estimated future warranty cost in the period in which the sale is recorded. The estimate of warranty cost is based on contract terms and historical warranty loss experience that is periodically adjusted for recent actual experience. Because warranty estimates are forecasts that are based on the best available information, claims costs may differ from amounts provided. Adjustments to initial obligations for warranties are made as changes in the obligations become reasonably estimable.

A rollforward of the warranty reserve for the fiscal years 2021 and 2020 are as follows (in thousands):

	2021		2020
Beginning balance	$	69,667	$	66,374
Warranty reserve related to acquisitions	5,046		1,485
Warranty expense	68,199		58,047
Warranty claims paid	(62,697)		(56,239)
Ending balance	$	80,215	$	69,667

(n)Research and Development Costs

Research and development costs, included in cost of sales in the consolidated statements of earnings, are charged to expense when incurred. These costs were $41.8 million, $35.3 million and $41.2 million in fiscal 2021, 2020 and 2019, respectively.

(o)Non-Cash Share-Based Compensation

The company's 2021 Stock Incentive Plan (the "2021 Plan"), allows for the granting of stock options, stock appreciation rights, restricted stock and restricted stock units, performance stock, phantom units and other equity-based awards. The company estimates the fair value of restricted stock grants, restricted stock units and performance stock at the time of grant and recognizes compensation costs over the vesting period of the grants. The expense, net of forfeitures, is recognized using the straight-line method. Non-cash share-based compensation expense is only recognized for those grants expected to vest. See Note 6, "Common and Preferred Stock," for further information on the company's share-based incentive plans.

(p)Earnings Per Share

“Basic earnings per share” is calculated based upon the weighted average number of common shares actually outstanding, and “diluted earnings per share” is calculated based upon the weighted average number of common shares outstanding and other dilutive securities.

The company’s potentially dilutive securities consist of shares issuable on exercise of outstanding options and vesting of restricted stock grants computed using the treasury method and amounted to approximately 1,449,000, 43,000, and 9,000 for fiscal 2021, 2020 and 2019, respectively. The company’s potentially dilutive securities consist of shares issuable on vesting of restricted stock grants computed using the treasury method and amounted to approximately 56,000 for fiscal 2021. During fiscal 2021, the average market price of the company's common stock exceeded the exercise price of the Convertible Notes resulting in approximately 1,393,000 diluted stock equivalents to be included in the diluted net earnings per share. There have been no conversions to date. See Note 5, Financing Arrangements, in these Notes to the Consolidated Financial Statements for further details on the Convertible Notes. There were no anti-dilutive equity awards excluded from common stock equivalents for 2021, 2020 or 2019.

(q)Consolidated Statements of Cash Flows

Cash paid for interest was $50.6 million, $65.6 million and $80.9 million in fiscal 2021, 2020 and 2019, respectively. Cash payments totaling $125.8 million, $41.2 million, and $91.5 million were made for income taxes during fiscal 2021, 2020 and 2019, respectively.

65

(r)New Accounting Pronouncements

Accounting Pronouncements - Recently Adopted

In August 2020, the FASB issued ASU No. 2020-06, “Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging- Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity," which simplifies the accounting for convertible instruments by eliminating the requirement to separate embedded conversion features from the host contract when the conversion features are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital. By removing the separation model, a convertible debt instrument is reported as a single liability instrument with no separate accounting for embedded conversion features. This new standard also removes certain settlement conditions that are required for contracts to qualify for equity classification and simplifies the diluted earnings per share calculations by requiring that an entity use the if-converted method and that the effect of potential share settlement be included in diluted earnings per share calculations. Effective January 3, 2021, the company early adopted ASU 2020-06 using the modified retrospective approach. Adoption of the new standard resulted in an increase to the opening balance of retained earnings of $5.1 million, a decrease to additional paid-in capital of $79.4 million, and an increase to convertible senior notes of $98.4 million. In addition, the company ceased recording non-cash interest expense associated with amortization of the debt discount and calculates earnings per share using the if-converted method to the extent those shares are not anti-dilutive.

In December 2019, the FASB issued ASU 2019-12, "Simplifying the Accounting for Income Taxes (Topic 740)", which removes certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC 740. This guidance is effective for annual reporting periods, and interim periods within those reporting periods, beginning after December 15, 2020 with early adoption permitted. The company adopted this guidance on January 3, 2021, and it did not have a material impact on the company's Consolidated Financial Statements upon adoption.

In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848)," which clarified that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition related to reference rate reform. The amendments in this update were effective immediately for all entities. The adoption of this guidance did not materially impact the company's Consolidated Financial Statements.

Accounting Pronouncements - To be adopted

On May 3, 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. This new standard provides clarification and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (such as warrants) that remain equity classified after modification or exchange. This guidance is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The company is currently evaluating the impacts the adoption of this guidance will have on its Consolidated Financial Statements and disclosures.

In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities About Government Assistance, which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. The new standard is effective for the company on January 2, 2022 and only impacts annual financial statement footnote disclosures. The company is currently evaluating the impacts the adoption of this guidance will have on its Consolidated Financial Statements and disclosures.

66

(4)     REVENUE RECOGNITION

Revenue is recognized when the control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services.

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and represents the unit of account. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The company’s contracts can have multiple performance obligations or just a single performance obligation.

For contracts with multiple performance obligations, the contracts transaction price is allocated to each performance obligation using the company’s best estimate of the standalone selling price of each distinct good or service in the contract. As the company’s standard payment terms are less than one year, the company does not assess whether a contract has a significant financing component. The company treats shipping and handling activities performed after the customer obtains control of the good as a contract fulfillment activity. Sales, use and value added taxes assessed by governmental authorities are excluded from the measurement of the transaction price within the company’s contracts with its customers. The company generally expenses sales commissions when incurred because the amortization period would have been less than one year. These costs are recorded within selling, general and administrative expenses.

Within the Commercial Foodservice Equipment and Residential Foodservice Equipment Groups, the estimated standalone selling price of equipment is based on observable prices. Within the Food Processing Equipment Group, the company estimates the standalone selling price based on expected cost to manufacture the good or complete the service plus an appropriate profit margin.

Control may pass to the customer over time or at a point in time. In general, the Commercial Foodservice Equipment and Residential Foodservice Equipment Groups recognize revenue at the point in time control transfers to their customers based on contractual shipping terms. Revenue from equipment sold under our long-term contracts within the Food Processing Equipment group is recognized over time as the equipment is manufactured and assembled. Installation services provided in connection with the delivery of the equipment are also generally recognized as those services are rendered. Over time transfer of control is measured using an appropriate input measure (e.g., costs incurred or direct labor hours incurred in relation to total estimate). These measures include forecasts based on the best information available and therefore reflect the company's judgment to faithfully depict the transfer of the goods.

Contract Estimates

Accounting for long-term contracts within the Food Processing Equipment group involves the use of various techniques to estimate total contract revenue and costs. For the company’s long-term contracts, estimated profit for the equipment performance obligations is recognized as the equipment is manufactured and assembled. Profit on the equipment performance obligations is estimated as the difference between the total estimated revenue and expected costs to complete a contract. Contract cost estimates are based on labor productivity and availability, the complexity of the work to be performed; the cost and availability of materials and labor, and the performance of subcontractors. The company does not disclose information about remaining performance obligations that have original expected durations of one year or less.

Contracts within the Commercial Foodservice and Residential Foodservice Equipment groups may contain variable consideration in the form of volume rebate programs. The company’s estimate of variable consideration is based on its experience with similarly situated customers using the portfolio approach.

67

Disaggregation of Revenue

We disaggregate our net sales by reportable operating segment and geographical location as we believe it best depicts how the nature, timing and uncertainty of our net sales and cash flows are affected by economic factors. In general, the Commercial Foodservice Equipment and Residential Foodservice Equipment Groups recognize revenue at the point in time control transfers to their customers based on contractual shipping terms. Revenue from equipment sold under our long-term contracts within the Food Processing Equipment group is recognized over time as the equipment is manufactured and assembled. The following table summarizes our net sales by reportable operating segment and geographical location (in thousands):

	Commercial  Foodservice		Food Processing		Residential Kitchen		Total
Twelve Months Ended January 1, 2022
United States and Canada	$	1,435,120	$	347,280	$	454,375	$	2,236,775
Asia	204,432		17,641		11,154		233,227
Europe and Middle East	344,273		77,671		265,508		687,452
Latin America	48,936		38,154		6,248		93,338
Total	$	2,032,761	$	480,746	$	737,285	$	3,250,792
Twelve Months Ended January 2, 2021
United States and Canada	$	1,067,872	$	311,042	$	373,864	$	1,752,778
Asia	155,742		26,778		6,711		189,231
Europe and Middle East	246,845		78,690		182,919		508,454
Latin America	39,820		20,762		2,212		62,794
Total	$	1,510,279	$	437,272	$	565,706	$	2,513,257
Twelve Months Ended December 28, 2019
United States and Canada	$	1,334,776	$	246,572	$	362,753	$	1,944,101
Asia	221,422		31,250		5,760		258,432
Europe and Middle East	349,613		98,814		198,672		647,099
Latin America	78,534		24,315		6,965		109,814
Total	$	1,984,345	$	400,951	$	574,150	$	2,959,446

Contract Balances

Contract assets primarily relate to the company's right to consideration for work completed but not billed at the reporting date and are recorded in prepaid expenses and other in the Consolidated Balance Sheet. Contract assets are transferred to receivables when the right to consideration becomes unconditional.

Contract liabilities relate to advance consideration received from customers for which revenue has not been recognized. Current contract liabilities are recorded in accrued expenses in the Consolidated Balance Sheet. Non-current contract liabilities are recorded in other non-current liabilities in the Consolidated Balance Sheet. Contract liabilities are reduced when the associated revenue from the contract is recognized.

The following table provides information about contract assets and contract liabilities from contracts with customers (in thousands):

	January 1, 2022		January 2, 2021
Contract assets	$	21,592	$	20,328
Contract liabilities	$	133,315	$	93,871
Non-current contract liabilities	$	11,602	$	13,523

68

During the twelve months period ended January 1, 2022, the company reclassified $16.3 million to accounts receivable which was included in the contract asset balance at the beginning of the period. During the twelve months period ended January 1, 2022, the company recognized revenue of $77.3 million which was included in the contract liability balance at the beginning of the period. Additions to contract liabilities representing amounts billed to clients in excess of revenue recognized to date were $129.0 million during the twelve months period ended January 1, 2022. Substantially all of the company's outstanding performance obligations will be satisfied within 12 to 36 months. There were no contract asset impairments during twelve months period ended January 1, 2022.

(5)     FINANCING ARRANGEMENTS

	2021		2020
	(in thousands)
Senior secured revolving credit line	$	683,175	$	755,000
Term loan facility	993,340		335,938
Convertible senior notes	734,417		632,847
Foreign loans	2,224		4,421
Other debt arrangement	1,138		1,390
Total debt	2,414,294		1,729,596
Less:  Current maturities of long-term debt	27,293		22,944
Long-term debt	$	2,387,001	$	1,706,652

On October 21, 2021, the company entered into an amended and restated five-year, $4.5 billion multi-currency senior secured credit agreement (the "Credit Facility") that amends and restates the company's pre-existing $3.1 billion credit facility which had an original maturity of January 31, 2025. The Credit Facility consists of (i) a $1 billion term loan facility, (ii) a $750 million delayed draw term loan facility, and (iii) a $2.75 billion multi-currency revolving credit facility, with the potential under certain circumstances, to increase the amount of the credit facility by the greater of $625 million and 100% of consolidated EBITDA for the most recently ended period of consecutive fiscal quarters (plus additional amounts, subject to compliance with a senior secured net leverage ratio), either by increasing the revolving commitment or by adding one or more revolver or term loan tranches. The Credit Facility matures on October 21, 2026, with the potential to extend the maturity date in one year increments with the consent of the extending lenders. The term facility will amortize in equal quarterly installments due on the last day of each fiscal quarter, commencing with the first full fiscal quarter after October 21, 2021, in an aggregate amount equal to 2.50% of the original aggregate principal amount of the term loan facility, with the balance, plus any accrued interest, due and payable on October 21, 2026. The delayed draw term loan facility is available for borrowing within one year and will amortize in quarterly installments due on the last day of each fiscal quarter, commencing with the first full fiscal quarter after each delayed draw term loan borrowing in an amount equal to 0.625% of the original aggregate principal amount of such borrowing, with the balance, plus any accrued interest, due and payable on October 21, 2026. Fees associated with the amendment of the term loan facilities are recorded as a direct deduction from the related debt liability in the Consolidated Balance Sheets and amortized to interest expense over the term of the Credit Facility.

On August 21, 2020, the company issued $747.5 million aggregate principal amount of 1.00% Convertible Senior Notes due 2025 in a private offering pursuant to an indenture, dated August 21, 2020 (the "Indenture"), between the company and U.S. Bank National Association, as trustee. The net proceeds from the sale of the Convertible Notes were approximately $729.9 million after deducting the initial purchasers' discounts and the offering expenses payable by the company. In connection with the pricing of the Convertible Notes, the company entered into privately negotiated Capped Call Transactions (the "2020 Capped Call Transactions") and the company used the net proceeds of the offering of the Convertible Notes to pay the aggregate amount of $104.7 million for them.

In December 2021, the company entered into two tranches of privately negotiated Capped Call Transactions (the "2021 Capped Call Transactions") in the aggregate amount of $54.6 million. The 2020 and 2021 Capped Call Transactions initially cover, subject to customary anti-dilution adjustments, the number of shares of the company's common stock that underlie the Convertible Notes.

69

Credit Facility

As of January 1, 2022, the company had $1.7 billion of borrowings outstanding under the Credit Facility, including $1.0 billion outstanding under the term loan ($993 million, net of unamortized issuance fees). The company also had $2.7 million in outstanding letters of credit as of January 1, 2022, which reduces the borrowing availability under the Credit Facility. Remaining borrowing capacity under this facility was $2.8 billion at January 1, 2022.

At January 1, 2022, borrowings under the Credit Facility accrued interest at a rate of 1.375% above LIBOR per annum or 0.375% above the highest of the prime rate, the federal funds rate plus 0.50% and one month LIBOR plus 1.00%. The interest rates on borrowings under the Credit Facility may be adjusted quarterly based on the company’s Funded Debt less Unrestricted Cash to Pro Forma EBITDA (the “Leverage Ratio”) on a rolling four-quarter basis. Additionally, a commitment fee based upon the Leverage Ratio is charged on the unused portion of the commitments under the Credit Facility. Borrowings under the Credit Facility will accrue interest at a minimum of 1.375% above LIBOR and the variable unused commitment fee will be at a minimum of 0.20%. The average interest rate per annum, inclusive of hedging instruments, on the debt under the Credit Facility was equal to 2.32% at the end of the period and the variable commitment fee was equal to 0.20% per annum as of January 1, 2022.

The term loan facility had an average interest rate per annum, inclusive of hedging instruments, of 2.93% as of January 1, 2022.

In addition, the company has international credit facilities to fund working capital needs outside the United States. At January 1, 2022, these foreign credit facilities amounted to $2.2 million in U.S. Dollars with a weighted average per annum interest rate of approximately 10.18%.

The company’s debt is reflected on the balance sheet at cost. The fair values of the Credit Facility, term debt and foreign and other debt is based on the amount of future cash flows associated with each instrument discounted using the company's incremental borrowing rate. The company believes its interest rate margins on its existing debt are consistent with current market conditions and therefore the carrying value of debt reflects the fair value. The interest rate margin is based on the company's Leverage Ratio. The carrying value and estimated aggregate fair value, a level 2 measurement, based primarily on market prices, of debt excluding the Convertible Notes is as follows (in thousands):

	Jan 1, 2022				Jan 2, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
Total debt excluding convertible senior notes	$	1,679,877	$	1,686,537	$	1,096,749	$	1,096,749

The company uses floating-to-fixed interest rate swap agreements to hedge variable interest rate risk associated with the Credit Facility. At January 1, 2022, the company had outstanding floating-to-fixed interest rate swaps totaling $94.0 million notional amount carrying an average interest rate of 1.45% maturing in less than 12 months and $708.0 million notional amount carrying an average interest rate of 1.98% that mature in more than 12 months but less than 63 months. In February 2022, subsequent to year end fiscal 2021, the company entered into an additional floating-to-fixed interest rate swap agreements totaling $375.0 million notional amount carrying an average interest rate of 1.50%.

The terms of the Credit Facility, as amended, limit the ability of the company and its subsidiaries to, with certain exceptions: incur indebtedness; grant liens; engage in certain mergers, consolidations, acquisitions and dispositions; make restricted payments; enter into certain transactions with affiliates; and requires, among other things, the company to satisfy certain financial covenants: (i) a minimum Interest Coverage Ratio (as defined in the Credit Facility) of 3.00 to 1.00, (ii) a maximum Secured Leverage Ratio (as defined in the Credit Facility) of Funded Debt less Unrestricted Cash to Pro Forma EBITDA (each as defined in the Credit Facility) of 3.75 to 1.00, which may be adjusted to 4.25 to 1.00 for a four consecutive fiscal quarter period in connection with certain qualified acquisitions, subject to the terms and conditions contained in the Credit Facility. The Credit Facility is secured by substantially all of the assets of Middleby Marshall, the company and the company's domestic subsidiaries and is unconditionally guaranteed by, subject to certain exceptions, the company and certain of the company's direct and indirect material foreign and domestic subsidiaries. The Credit Facility contains certain customary events of default, including, but not limited to, the failure to make required payments; bankruptcy and other insolvency events; the failure to perform certain covenants; the material breach of a representation or warranty; non-payment of certain other indebtedness; the entry of undischarged judgments against the company or any subsidiary for the payment of material uninsured amounts; the invalidity of the company guarantee or any subsidiary guaranty; and a change of control of the company. At January 1, 2022, the company was in compliance with all covenants pursuant to its borrowing agreements.

70

Convertible Notes

The following table summarizes the outstanding principal amount and carrying value of the Convertible Notes:

	Jan 1, 2022		Jan 2, 2021
	(in thousands)
Principal amounts:
Principal	$	747,500	$	747,500
Unamortized debt discount	—		(98,358)
Unamortized issuance costs	(13,083)		(16,295)
Net carrying amount	$	734,417	$	632,847

The following table summarizes total interest expense recognized related to the Convertible Notes:

	Twelve Months Ended
	Jan 1, 2022		Jan 2, 2021
Contractual interest expense	$	7,454	$	2,720
Interest cost related to amortization of the debt discount and issuance costs	3,484		7,971
Total interest expense	$	10,938	$	10,691

The estimated fair value of the Convertible Notes was $1.2 billion as of January 1, 2022 and was determined through consideration of quoted market prices. The fair value is classified as Level 2, as defined in Note 3 (j), Fair Value Measurements, in these Notes to the Consolidated Financial Statements included in this Part II, Item 8 of this Annual Report on Form 10-K. The if-converted value of the Convertible Notes exceeded their respective principal value by $396.0 million as of January 1, 2022.

The Convertible Notes are general unsecured obligations of the company. The Convertible Notes rank senior in right of payment to any of the company’s future indebtedness that is expressly subordinated in right of payment to the Convertible Notes; rank equal in right of payment to the company’s existing and future unsecured indebtedness that is not so subordinated; are effectively subordinated in right of payment to any of the company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and are structurally subordinated to all existing and future indebtedness and liabilities of the company’s subsidiaries.

The company initially separated the Convertible Notes into liability and equity components. The equity component of the Convertible Notes of approximately $105.0 million was included in the additional paid-in capital and the resulting debt discount was being amortized to interest expense at an effective interest rate of 1.5%, which is no longer applicable upon adoption of ASU 2020-06 as discussed in Note 3 to the Consolidated Financial Statement.

The Convertible Notes were issued pursuant to the Indenture and bear interest semi-annually in arrears at a rate of 1.00% per annum on March 1 and September 1 of each year. The Convertible Notes are convertible based upon an initial conversion rate of 7.7746 shares of the company's common stock per $1,000 principal amount of the Convertible Notes, which is equivalent to an initial conversion price of approximately $128.62 per share of the company's common stock. The conversion rate will be subject to adjustment upon occurrence of certain specified events in accordance with the Indenture, but will not be adjusted for accrued and unpaid interest. Additionally, in the event of a Fundamental Change (as defined in the Indenture), holders of the Convertible Notes may require the company to repurchase all or a portion of their Convertible Notes at a price equal to 100.0% of the principal amount of Convertible Notes, plus any accrued and unpaid interest to, but excluding, the repurchase date. Upon conversion, the company will pay cash up to the aggregate principal amount of the Convertible Notes to be converted and pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the company's election, in respect of the remainder, if any, of the company's conversion obligation in excess of the aggregate principal amount of the notes being converted.

71

The Convertible Notes will mature on September 1, 2025 unless they are redeemed, repurchased or converted prior to such date in accordance with their terms. Prior to the close of business on the business day immediately preceding June 1, 2025, the notes will be convertible at the option of the holders only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on January 2, 2021 (and only during such fiscal quarter), if the last reported sale price of the company's common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130.0% of the conversion price for the Convertible Notes on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period in which the trading price per $1,000 principal amount of the Convertible Notes for each trading day of that ten consecutive trading day period was less than 98.0% of the product of the last reported sale price of the company's common stock and the conversion rate of the Convertible Notes on each such trading day; (3) if the company calls such Convertible Notes for redemption; or (4) upon the occurrence of specified corporate events. On or after June 1, 2025, the notes will be convertible at the option of the holders at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Holders of the Convertible Notes who convert in connection with a Make-Whole Fundamental Change or during a Redemption Period (each as defined in the Indenture) will be, under certain circumstances, entitled to an increase in the conversion rate.

The company may settle the conversions of the Convertible Notes in cash, shares of the company's common stock or any combination thereof at its election. The number of shares of the company's common stock issuable at the conversion price of $128.62 per share is expected to be 5.8 million shares. However, the Capped Call Transactions are expected generally to reduce the potential dilution of the company's common stock upon any conversion of Convertible Notes and/or offset the cash payments the company is required to make in excess of the principal amount of the Notes. Under the 2020 Capped Call Transactions, the number of shares of common stock issuable at the conversion price of $207.93 is expected to be 3.6 million shares. Under the 2021 Capped Call Transactions, the number of shares of common stock issuable at the conversion prices of $216.50 and $225.00 is expected to be 3.5 million shares and 3.3 million shares, respectively. During the twelve months period ended January 1, 2022, no Convertible Notes have been converted to date.

The company may redeem all or any portion of the Convertible Notes, at its option, on or after September 5, 2023 and prior to the 41st scheduled trading day immediately preceding the maturity date, at a redemption price equal to 100.0% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest thereon, if the last reported sales price of the company's common stock has been at least 130.0% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the company provides written notice of redemption.

The Indenture includes customary terms and covenants, including certain events of default after which the Convertible Notes may become due and payable immediately.

72

Capped Call Transactions

The 2020 Capped Call Transactions and 2021 Capped Call Transactions (collectively, the "Capped Call Transactions") are expected generally to reduce the potential dilution and/or offset the cash payments the company is required to make in excess of the principal amount of the Convertible Notes upon conversion of the Convertible Notes in the event that the market price per share of the company's common stock is greater than the strike price of the Capped Call Transactions (which initially corresponds to the initial conversion price of the Convertible Notes and is subject to certain adjustments under the terms of the Capped Call Transactions), with such reduction and/or offset subject to a cap based on the cap price of the Capped Call Transactions. The 2020 Capped Call Transactions have an initial cap price of $207.93 per share of the company's common stock. The 2021 Capped Call Transactions have initial cap prices of $216.50 and $225.00 per share of the company's common stock. The Capped Call Transactions cover, initially, the number of shares of the company's common stock underlying the Convertible Notes, subject to anti-dilution adjustments substantially similar to those applicable to the Convertible Notes.

The Capped Call Transactions are separate transactions entered into by the company with the capped call counterparties, and are not part of the terms of the Convertible Notes and will not affect any holder's right under the Convertible Notes. Holders of the Convertible Notes will not have any rights with respect to the Capped Call Transactions. The Capped Call Transactions do not meet the criteria for separate accounting as a derivative as they are indexed to the company's stock. The premiums paid of the Capped Call Transactions have been included as a net reduction to additional paid-in capital with stockholders' equity.

The aggregate amount of debt payable during each of the next five years is as follows (in thousands):

2022	$	27,293
2023	23,621
2024	23,634
2025	757,945
2026 and thereafter	1,581,801
	$	2,414,294

73

(6)    COMMON AND PREFERRED STOCK

(a)    Shares Authorized

At January 1, 2022 and January 2, 2021, the company had 95,000,000 authorized shares of common stock and 2,000,000 authorized shares of non-voting preferred stock.

(b)    Treasury Stock

In November 2017, the company's Board of Directors approved a stock repurchase program authorizing the company to repurchase in the aggregate up to 2,500,000 shares of its outstanding common stock. During 2020, the company repurchased 896,965 shares of its common stock under the program for $69.7 million, including applicable commissions, which represented an average price of $77.70. During 2021, the company repurchased 141,500 shares of its common stock under the program for $26.6 million, including applicable commissions, which represented an average price of $188.17. As of January 1, 2022, 1,164,665 shares had been purchased under the 2017 stock repurchase program and 1,335,335 remain authorized for repurchase.

The company also treats shares withheld for tax purposes on behalf of employees in connection with the vesting of restricted share grants as common stock repurchases because they reduce the number of shares that would have been issued upon vesting. During 2020, the company repurchased 176,242 shares of its common stock that were surrendered to the company for withholding taxes related to restricted stock vestings for $16.2 million. During 2021, the company repurchased 15,480 shares of its common stock that were surrendered to the company for withholding taxes related to restricted stock vestings for $2.7 million.   

(c)    Share-Based Awards

The company maintains an incentive plan under which the company's Board of Directors grants share-based awards to key employees. On May 10, 2021, the 2021 Stock Incentive Plan (the "2021 Plan") was approved, which included a maximum amount of 1,350,000 shares allowed to be awarded plus the shares remaining for future grants under the 2011 Stock Incentive Plan (the "2011 Plan") as of the approval date and any shares outstanding that are subsequently forfeited or expired. Thus, no further shares are available to grant under the 2011 Plan and the maximum amount of shares available for future grants under the 2021 Plan as of January 1, 2022 is 1,642,966.

Non-cash share-based compensation of $42.3 million, $19.6 million and $8.1 million was recognized for fiscal 2021, 2020 and 2019, respectively, associated with restricted share grants and restricted stock units. The company recorded a related tax benefit of $0.4 million, $2.7 million and less than $0.5 million in fiscal 2021, 2020 and 2019, respectively.

Restricted share grants:

The company has issued restricted share grant awards, which are generally time and performance based and were not subject to market conditions. The fair value of restricted share grants represents the closing share price of the company's stock as of the date of the grant and is recognized over the vesting period of the awards. The weighted average grant date fair value was $181.31, $57.74 and $113.26 per share for restricted share grants in fiscal 2021, 2020 and 2019 respectively, which represents the closing share price of the company’s stock as of the date of grant. The approximate fair value of restricted shares vested were $7.3 million, $44.8 million, $16.5 million for fiscal 2021, 2020 and 2019, respectively.

74

A summary of the company’s nonvested restricted share grant activity and their corresponding fair value on the date of grant for fiscal year ended January 1, 2022 is as follows:

 

	Shares	Weighted Average Grant-Date Fair Value
Nonvested shares at January 2, 2021	433,065	$	112.54
Granted	4,399	181.31
Vested	(43,485)	115.77
Forfeited	(213,673)	112.49
Nonvested shares at January 1, 2022	180,306	$	113.31

As of January 1, 2022, there was $3.7 million of total unrecognized compensation cost related to nonvested restricted share grant compensation arrangements, if all performance conditions are fully achieved. The remaining weighted average life is 0.34 years.    

Restricted stock units:

During 2020, the company began granting restricted stock units, which entitle the holder to shares of common stock subject to time vesting and the achievement of certain market and performance goals. The fair value for time based units are valued at the closing share price of the company’s stock as of the date of the grant and the fair value for performance units are based upon valuations using the Monte Carlo Methodology. Compensation expense is recognized over the performance measurement period of the units in accordance with ASC 718 Stock Compensation for awards with market and performance vesting conditions.

Time vesting units vest equally over two or three years and performance units vest based on achievement of certain company performance criteria over the two or three year period, as set forth in the grant agreement ranging from 0 to 200% of the target shares granted. The weighted average grant date fair value was $166.41 and $134.25 per share for restricted stock units in fiscal 2021 and 2020, respectively. No restricted stock units have vested.

A summary of the company’s nonvested restricted stock unit activity at target shares and their corresponding fair value on the date of grant for fiscal year ended January 1, 2022 is as follows:

	Units	Weighted Average Grant-Date Fair Value
Nonvested shares at January 2, 2021	47,500	$	134.25
Granted	287,624	166.41
Nonvested shares at January 1, 2022	335,124	$	161.85

As of January 1, 2022, there was $66.2 million of total unrecognized compensation cost related to nonvested restricted stock unit compensation arrangements, if all performance conditions are fully achieved. The remaining weighted average life is 1.74 years.

75

(7)     INCOME TAXES

Earnings before taxes is summarized as follows (in thousands):

	2021		2020		2019
Domestic	$	453,357	$	178,813	$	336,688
Foreign	166,147		89,244		125,931
Total	$	619,504	$	268,057	$	462,619

The provision for income taxes is summarized as follows (in thousands):

	2021		2020		2019
Federal	$	84,689	$	36,908	$	69,074
State and local	24,363		8,815		16,203
Foreign	21,960		15,040		25,102
Total	$	131,012	$	60,763	$	110,379
Current	$	124,149	$	44,342	$	88,167
Deferred	6,863		16,421		22,212
Total	$	131,012	$	60,763	$	110,379

Reconciliation of the differences between income taxes computed at the federal statutory rate to the effective rate are as follows:

	2021		2020		2019
U.S. federal statutory tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	3.1		3.2		3.2
Permanent differences	0.5		(0.4)		0.6
Foreign income tax rate at rates other than U.S. statutory	0.2		0.5		0.2
Deferred tax changes	(2.2)		(0.7)		—
Tax refunds	(0.7)		—		—
Change in valuation allowances (1)	0.4		(0.1)		0.1
Tax on unremitted earnings	0.4		1.2		0.3
Other	(1.6)		(2.0)		(1.5)
Consolidated effective tax	21.1	%	22.7	%	23.9	%

(1) Net of changes in related tax attributes.

The company’s effective tax rate for 2021 was 21.1% as compared to 22.7% in 2020. The effective tax rate for 2021 reflects favorable tax adjustments for deferred tax rate changes, tax refunds and adjustments for the finalization of 2020 tax returns. The effective tax rate is higher than the federal tax rate of 21.0% primarily due to state taxes and foreign tax rate differentials.

76

At January 1, 2022 and January 2, 2021, the company had recorded the following deferred tax assets and liabilities (in thousands):

	2021		2020
Deferred tax assets:
Compensation related	$	21,543	$	12,328
Pension and post-retirement benefits	49,072		88,709
Inventory reserves	14,453		14,732
Accrued liabilities and reserves	17,088		22,049
Warranty reserves	19,286		17,890
Operating lease liability	18,643		16,180
Interest rate swaps	4,573		12,997
Convertible debt	37,034		—
Net operating loss carryforwards	17,083		20,747
Other	12,695		17,187
Gross deferred tax assets	211,470		222,819
Valuation allowance	(10,222)		(11,731)
Deferred tax assets	$	201,248	$	211,088
Deferred tax liabilities:
Intangible assets	$	(273,974)	$	(226,598)
Depreciable assets	(26,996)		(26,916)
Basis difference on affiliates	(18,795)		—
Operating lease right-of-use assets	(18,029)		(15,921)
Other	(17,195)		(12,825)
Deferred tax liabilities	$	(354,989)	$	(282,260)
Net deferred tax assets (liabilities)	$	(153,741)	$	(71,172)
Long-term deferred asset	33,194		76,052
Long-term deferred liability	(186,935)		(147,224)
Net deferred tax assets (liabilities)	$	(153,741)	$	(71,172)

The company has recorded tax reserves on undistributed foreign earnings not permanently reinvested of $9.7 million and $7.5 million at January 1, 2022 and January 2, 2021, respectively. No further provisions were made for income taxes that may result from future remittances of undistributed earnings of foreign subsidiaries that are determined to be permanently reinvested, which were $538.0 million on January 1, 2022. Determination of the total amount of unrecognized deferred income taxes on undistributed earnings net of foreign subsidiaries is not practicable.

The company has a deferred tax asset on net operating loss carryforwards totaling $17.1 million as of January 1, 2022. These net operating losses are available to reduce future taxable earnings of certain domestic and foreign subsidiaries. United States federal loss carryforwards total $29.0 million of which $5.6 million will expire through 2036 and $23.4 million have no expiration date. State loss carryforwards total $34.2 million and expire through 2040 and international loss carryforwards total $44.7 million and expire through 2038; however, some have no expiration date. Of these carryforwards, $33.4 million are subject to full valuation allowance.

77

As of January 1, 2022, the total amount of liability for unrecognized tax benefits related to federal, state and foreign taxes was approximately $36.2 million (of which $36.2 million would impact the effective tax rate if recognized) plus approximately $7.1 million of accrued interest and $6.0 million of penalties. The company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. Interest recognized in fiscal years 2021, 2020 and 2019 was $0.9 million, $0.8 million and $0.4 million, respectively. Penalties recognized in fiscal years 2021, 2020 and 2019 was $(1.0) million, $(0.2) million and $(0.9) million, respectively.

Although the company believes its tax returns are correct, the final determination of tax examinations may be different than what was reported on the tax returns. In the opinion of management, adequate tax provisions have been made for the years subject to examination.

The following table summarizes the activity related to the unrecognized tax benefits for the fiscal years ended December 28, 2019, January 2, 2021 and January 1, 2022 (in thousands):

Balance at December 28, 2019	$	31,559
Increases to current year tax positions	3,657
Increase to prior year tax positions	183
Decrease to prior year tax positions	(53)
Settlements	(533)
Lapse of statute of limitations	(4,484)
Balance at January 2, 2021	$	30,329
Increases to current year tax positions	1,760
Increase to prior year tax positions	6,796
Decrease to prior year tax positions	(576)
Settlements	(1,180)
Lapse of statute of limitations	(920)
Balance as of January 1, 2022	$	36,209

It is reasonably possible that the amounts of unrecognized tax benefits associated with state, federal and foreign tax positions may decrease over the next twelve months due to expiration of a statute or completion of an audit. The company believes that it is reasonably possible that $3.8 million of its remaining unrecognized tax benefits may be recognized by the end of 2022 as a result of settlements with taxing authorities or lapses of statutes of limitations.

In the normal course of business, income tax authorities in various income tax jurisdictions both in the United States and internationally conduct routine audits of our income tax returns filed in prior years. These audits are generally designed to determine if individual income tax authorities are in agreement with our interpretations of complex tax regulations regarding the allocation of income to the various income tax jurisdictions. Income tax years are open from 2017 through the current year for the United States federal jurisdiction. Income tax years open for our other major jurisdictions range from 2016 through the current year.

78

(8)     FINANCIAL INSTRUMENTS

Derivatives are measured at fair value and recognized as either assets or liabilities. Derivatives that do not qualify as a hedge must be adjusted to fair value in earnings. If a derivative does qualify, changes in the fair value will either be offset against the change in the fair value of the hedged assets, liabilities or firm commitments or recognized in other accumulated comprehensive income until the hedged item is recognized in earnings.

(a)Foreign Exchange

The company periodically enters into derivative instruments, principally forward contracts to reduce exposures pertaining to fluctuations in foreign exchange rates. The notional amount of foreign currency contracts outstanding was $350.5 million and $155.6 million as of January 1, 2022 and January 2, 2021, respectively. The fair value of these forward contracts was an unrealized gain of $1.1 million at the end of the year.

(b)Interest Rate

The company has entered into interest rate swaps to fix the interest rate applicable to certain of its variable-rate debt. The agreements swap one-month LIBOR for fixed rates. The company has designated these swaps as cash flow hedges and all changes in fair value of the swaps are recognized in accumulated other comprehensive income. The fair value of these instruments was a liability of $18.0 million and $51.1 million as of January 1, 2022 and January 2, 2021, respectively. The change in fair value of these swap agreements in 2021 was a gain of $24.6 million, net of taxes.

A summary of the company’s interest rate swaps is as follows (in thousands):

		Twelve Months Ended
	Location	Jan 1, 2022		Jan 2, 2021
Fair value	Other assets	$	3,645	$	—
Fair value	Accrued expenses	$	1,171	$	14,075
Fair value	Other non-current liabilities	$	20,464	$	37,018
Amount of gain/(loss) recognized in other comprehensive income	Other comprehensive income	$	14,634	$	(43,317)
Gain/(loss) reclassified from accumulated other comprehensive income (effective portion)	Interest expense	$	(18,469)	$	(15,514)

Interest rate swaps are subject to default risk to the extent the counterparty is unable to satisfy its settlement obligations under the interest rate swap agreements. The company reviews the credit profile of the financial institutions that are counterparties to such swap agreements and assesses their creditworthiness prior to entering into the interest rate swap agreements and throughout the term. The interest rate swap agreements typically contain provisions that allow the counterparty to require early settlement in the event that the company becomes insolvent or is unable to maintain compliance with its covenants under its existing debt agreement.

79

(9)    LEASE COMMITMENTS

Accounting Policy

At the commencement date of a lease, the company recognizes a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. The lease liability is measured at the present value of lease payments over the lease term, including variable fees that are known or subject to a minimum floor. The lease liability includes lease component fees, while non-lease component fees are expensed as incurred for all asset classes. The company's lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. When a contract excludes an implicit rate, the company utilizes an incremental borrowing rate based on information available at the lease commencement date including lease term and geographic region. The initial valuation of the right-of-use (“ROU”) asset includes the initial measurement of the lease liability, lease payments made in advance of the lease commencement date and initial direct costs incurred by the company and excludes lease incentives. Operating lease ROU assets are included in other assets and operating lease liabilities are included accrued expenses and other non-current liabilities.

Leases with an initial term of 12 months or less are classified as short-term leases and are not recorded on the Consolidated Balance Sheets. The lease expense for short-term leases is recognized on a straight-line basis over the lease term.

Leases

The company leases warehouse space, office facilities and equipment under operating leases. The company has operating lease costs of $31.5 million, $30.1 million and $30.6 million in fiscal 2021, 2020 and 2019 respectively, including short-term lease expense and variable lease costs, which were immaterial in the year.

Leases (in thousands)	January 1, 2022		January 2, 2021
Operating lease right-of-use assets:
Other assets	$	93,388	$	97,193
Operating lease liabilities:
Accrued expenses	22,753		22,493
Other non-current liabilities	74,202		76,529
Total Liability	$	96,955	$	99,022

Total Lease Commitments (in thousands)	Operating Leases
2022	$	24,903
2023	21,458
2024	17,588
2025	12,581
2026	10,122
2027 and thereafter	19,062
Total future lease commitments	105,714
Less imputed interest	8,759
Total	$	96,955

80

Other Lease Information (in thousands, except lease term and discount rate)	Twelve Months Ended January 1, 2022			Twelve Months Ended January 2, 2021
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	25,957		$	26,024
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	16,353			25,433
	January 1, 2022			January 2, 2021
Weighted-average remaining lease terms - Operating	5.6 years			6.0 years
Weighted-average discount rate - Operating	2.8		%	3.0		%

81

(10)    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 foodservice equipment for the restaurant and institutional kitchen industry. The Food Processing Equipment Group manufactures preparation, cooking, packaging food handling and food safety equipment for the food processing industry. The Residential Kitchen Equipment Group manufactures, sells and distributes kitchen equipment for the residential market.

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.

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
2021
Net sales	$	2,032,761	$	480,746	$	737,285	$	—	$	3,250,792
Income (loss) from operations(3,4,7)	423,121		94,414		124,701		(12,244)		629,992
Depreciation expense	23,814		5,601		12,655		611		42,681
Amortization expense (5)	56,910		7,247		11,628		6,777		82,562
Net capital expenditures	26,507		9,111		9,232		1,701		46,551
Total assets	3,522,630		637,252		2,153,758		69,958		6,383,598
Long-lived assets (6)	292,593		54,934		169,028		41,112		557,667
2020
Net sales	$	1,510,279	$	437,272	$	565,706	$	—	$	2,513,257
Income (loss) from operations (3,7)	239,625		78,008		67,046		(60,248)		324,431
Depreciation expense	21,768		5,507		11,691		120		39,086
Amortization expense (5)	51,985		7,319		9,657		2,485		71,446
Net capital expenditures	25,463		3,427		4,801		1,158		34,849
Total assets	3,249,441		617,171		1,221,229		114,633		5,202,474
Long-lived assets (6)	279,481		55,069		192,940		19,849		547,339
2019
Net sales	$	1,984,345	$	400,951	$	574,150	$	—	$	2,959,446
Income (loss) from operations (3,8)	429,946		68,935		89,312		(74,150)		514,043
Depreciation expense	21,054		4,944		11,742		112		37,852
Amortization expense (5)	45,906		8,162		9,896		1,612		65,576
Net capital expenditures	29,353		6,683		9,168		1,405		46,609
Total assets	3,188,304		621,619		1,157,211		35,009		5,002,143
Long-lived assets (6)	261,466		57,403		176,834		4,116		499,819

(1)Non-operating expenses are not allocated to the reportable 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 and impairments are included in operating income of the segment to which they pertain. See note 3(f) and 12 for further details.

(4)Termination fee from Welbilt merger is included in Corporate and Other.

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

(6)Long-lived assets consist of property, plant and equipment, long-term deferred tax assets and other assets.

(7)Gain on sale of plant is included in Commercial Foodservice and Residential Kitchen for 2021 and Gain on sale of plant is included in Commercial Foodservice for 2020.

(8)Gain on litigation settlement is included in Residential Kitchen.

82

Geographic Information

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

	2021		2020		2019
United States and Canada	$	359,215	$	331,688	$	305,207
Asia	32,986		28,018		22,312
Europe and Middle East	157,432		181,242		165,781
Latin America	8,034		6,391		6,519
Total International	198,452		215,651		194,612
	$	557,667	$	547,339	$	499,819

(11)    EMPLOYEE RETIREMENT PLANS

(a)Pension Plans

U.S. Plans:

The company maintains a non-contributory defined benefit plan for its union employees at the Elgin, Illinois facility. Benefits are determined based upon retirement age and years of service with the company. This defined benefit plan was frozen on April 30, 2002, and no further benefits accrue to the participants beyond this date. Plan participants will receive or continue to receive payments for benefits earned on or prior to April 30, 2002 upon reaching retirement age.

The company maintains a non-contributory defined benefit plan for its employees at the Smithville, Tennessee facility. Benefits are determined based upon retirement age and years of service with the company. This defined benefit plan was frozen on April 1, 2008, and no further benefits accrue to the participants beyond this date. Plan participants will receive or continue to receive payments for benefits earned on or prior to April 1, 2008 upon reaching retirement age.

The company also maintains a retirement benefit agreement with its former Chairman ("Chairman Plan"). The retirement benefits are based upon a percentage of the former Chairman’s final base salary.

Non-U.S. Plans:

The company maintains a defined benefit plan for its employees at the Wrexham, the United Kingdom facility. Benefits are determined based upon retirement age and years of service with the company. This defined benefit plan was frozen on April 30, 2010 and no further benefits accrue to the participants beyond this date. Plan participants will receive or continue to receive payments for benefits earned on or prior to April 30, 2010 upon reaching retirement age.

The company maintains several pension plans related to AGA and its subsidiaries (collectively, the "AGA Group"), the most significant being the Aga Rangemaster Group Pension Scheme in the United Kingdom. Membership in the plan on a defined benefit basis of pension provision was closed to new entrants in 2001. The plan became open to new entrants on a defined contribution basis of pension provision in 2002, but was generally closed to new entrants on this basis during 2014. In December 2020, it was agreed that the Group Pension Scheme will be closed to future pension accruals effective April 5, 2021 and as a result, a curtailment loss was recognized in fiscal 2020.

The other, much smaller, defined benefit pension plans operating within the AGA Group cover employees in France and the United Kingdom. All pension plan assets are held in separate trust funds although the net defined benefit pension obligations are included in the company's consolidated balance sheet.

83

A summary of the plans’ net periodic pension cost, benefit obligations, funded status, and net balance sheet position is as follows (dollars in thousands)

	Fiscal 2021				Fiscal 2020
	U.S. Plans		Non-U.S. Plans		U.S. Plans		Non-U.S. Plans
Net Periodic Pension Cost (Benefit):
Service cost	$	—	$	773	$	—	$	2,581
Interest cost	841		17,340		1,043		25,966
Expected return on assets	(1,029)		(78,956)		(999)		(72,795)
Amortization of net loss	1,118		12,741		763		3,449
Amortization of prior service cost	—		2,879		—		2,577
Curtailment loss	—		—		—		14,682
	$	930	$	(45,223)	$	807	$	(23,540)
Change in Benefit Obligation:
Benefit obligation – beginning of year	$	38,897	$	1,744,574	$	35,395	$	1,501,616
Service cost	—		773		—		2,581
Prior service cost	—		—		—		2,309
Interest on benefit obligations	841		17,340		1,043		25,966
Member contributions	—		81		—		312
Actuarial (gain) loss	(1,617)		(135,475)		4,146		186,945
Net benefit payments	(1,698)		(65,138)		(1,687)		(62,878)
Curtailment loss	—		—		—		14,682
Exchange effect	—		(18,008)		—		73,041
Benefit obligation – end of year	$	36,423	$	1,544,147	$	38,897	$	1,744,574
Change in Plan Assets:
Plan assets at fair value – beginning of year	$	17,455	$	1,296,516	$	16,744	$	1,231,181
Company contributions	1,233		4,890		1,587		5,745
Investment gain	1,299		123,708		811		69,824
Member contributions	—		81		—		312
Benefit payments and plan expenses	(1,698)		(65,138)		(1,687)		(62,878)
Exchange effect	—		(17,456)		—		52,332
Plan assets at fair value – end of year	$	18,289	$	1,342,601	$	17,455	$	1,296,516
Funded Status:
Unfunded benefit obligation	$	(18,134)	$	(201,546)	$	(21,442)	$	(448,058)
Amounts recognized in balance sheet at year end:
Accrued pension benefits	$	(18,134)	$	(201,546)	$	(21,442)	$	(448,058)

84

	Fiscal 2021						Fiscal 2020
	U.S. Plans			Non-U.S. Plans			U.S. Plans			Non-U.S. Plans
Pre-tax components in accumulated other comprehensive income at period end:
Net actuarial loss	$	7,419		$	281,745		$	10,424		$	479,554
Pre-tax components recognized in other comprehensive income for the period:
Current year actuarial (gain) loss	$	(1,887)		$	(181,518)		$	4,334		$	211,494
Actuarial loss recognized	(1,118)			(12,832)			(763)			(3,841)
Prior service cost	—			—			—			3,335
Prior service cost recognized	—			(3,457)			—			(1,550)
Total amount recognized	$	(3,005)		$	(197,807)		$	3,571		$	209,438
Accumulated Benefit Obligation	$	36,423		$	1,544,117		$	38,897		$	1,744,536
Salary growth rate	n/a			0.8		%	n/a			0.8		%
Assumed discount rate	2.6		%	1.9		%	2.2		%	1.2		%
Expected return on assets	6.0		%	6.2		%	6.0		%	6.2		%

The company has engaged non-affiliated third party professional investment advisors to assist the company in developing its investment policy and establishing asset allocations. The company's overall investment objective is to provide a return, that along with company contributions, is expected to meet future benefit payments. Investment policy is established in consideration of anticipated future timing of benefit payments under the plans. The anticipated duration of the investment and the potential for investment losses during that period are carefully weighed against the potential for appreciation when making investment decisions. The company routinely monitors the performance of investments made under the plans and reviews investment policy in consideration of changes made to the plans or expected changes in the timing of future benefit payments.

The assets of the plans were invested in the following classes of securities (none of which were securities of the company):

U.S. Plans:

	Target Allocation		Percentage of Plan Assets
			2021		2020
Equity	48	%	53	%	48	%
Fixed income	40		36		39
Money market	4		1		3
Other (real estate investment trusts & commodities contracts)	8		10		10
	100	%	100	%	100	%

Non-U.S. Plans:

	Target Allocation		Percentage of Plan Assets
			2021		2020
Equity	17	%	11	%	12	%
Fixed income	38		56		57
Alternatives/Other	32		15		15
Real Estate	13		15		13
Cash and cash equivalents	—		3		3
	100	%	100	%	100	%

85

In accordance with ASC 820 Fair Value Measurements and Disclosures, the company has measured its defined benefit pension plans at fair value. In accordance with ASU 2015-04, "Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets", the company has elected to measure the pension plan assets and obligations as of the calendar month end closest to the fiscal year end. The following tables summarize the basis used to measure the pension plans’ assets at fair value as of January 1, 2022 and January 2, 2021 (in thousands):

U.S. Plans:

	Fiscal 2021						Fiscal 2020
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Net Asset Value		Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Net Asset Value
Short Term Investment Fund (a)	$	274	$	—	$	274	$	533	$	—	$	533
Equity Securities:
Large Cap	3,928		3,928		—		3,443		3,443		—
Mid Cap	413		413		—		407		407		—
Small Cap	424		424		—		489		489		—
International	4,918		4,918		—		4,198		4,198		—
Fixed Income:
Government/Corporate	5,137		5,137		—		5,517		5,517		—
High Yield	1,383		1,383		—		1,211		1,211		—
Alternative:
Global Real Estate Investment Trust	758		758		—		1,063		1,063		—
Commodities Contracts	1,054		1,054		—		594		594		—
Total	$	18,289	$	18,015	$	274	$	17,455	$	16,922	$	533

(a)Represents collective short term investment fund, composed of high-grade money market instruments with short maturities.

86

Non-U.S. Plans:

	Fiscal 2021
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value
Cash and cash equivalents	$	51,780	$	6,566	$	5,092	$	—	$	40,122
Equity Securities:
UK	6,470		1,878		—		—		4,592
International:
Developed	117,751		3,034		—		—		114,717
Emerging	31,392		435		—		—		30,957
Unquoted/Private Equity	2,195		1		—		—		2,194
Fixed Income:
Government/Corporate:
UK	259,833		15,471		—		—		244,362
International	114,973		—		—		—		114,973
Index Linked	364,666		2,138		—		—		362,528
Other	7,811		—		—		—		7,811
Convertible Bonds	185		—		—		—		185
Real Estate:
Direct	183,045		—		183,045		—		—
Indirect	8,030		80		3,038		—		4,912
Hedge Fund Strategy:
Equity Long/Short	29,345		—		—		—		29,345
Arbitrage & Event	25,788		—		—		—		25,788
Directional Trading & Fixed Income	3,266		—		—		—		3,266
Cash & Other	196,930		—		—		—		196,930
Direct Sourcing	1,156		—		—		—		1,156
Leveraged Loans	30,224		—		—		—		30,224
Alternative/Other	(92,239)		453		—		—		(92,692)
Total	$	1,342,601	$	30,056	$	191,175	$	—	$	1,121,370

87

	Fiscal 2020
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value
Cash and cash equivalents	$	36,537	$	9,653	$	832	$	—	$	26,052
Equity Securities:
UK	8,615		1,747		—		—		6,868
International:
Developed	110,718		3,076		—		—		107,642
Emerging	34,417		418		—		—		33,999
Unquoted/Private Equity	1,792		1		—		—		1,791
Fixed Income:
Government/Corporate:
UK	264,703		16,330		—		—		248,373
International	141,030		—		—		—		141,030
Index Linked	330,360		2,945		—		—		327,415
Other	8,296		—		—		—		8,296
Convertible Bonds	214		—		—		—		214
Real Estate:
Direct	156,588		—		156,588		—		—
Indirect	9,283		52		4,485		—		4,746
Hedge Fund Strategy:
Equity Long/Short	44,097		—		—		—		44,097
Arbitrage & Event	16,594		—		—		—		16,594
Directional Trading & Fixed Income	9,721		—		—		—		9,721
Cash & Other	196,952		—		—		—		196,952
Direct Sourcing	2,397		—		—		—		2,397
Leveraged Loans	28,720		—		—		—		28,720
Alternative/Other	(104,518)		5		—		—		(104,523)
Total	$	1,296,516	$	34,227	$	161,905	$	—	$	1,100,384

The fair value of the Level 1 assets is based on observable, quoted market prices of the identical underlying security in an active market. The fair value of the Level 2 assets is primarily based on market observable inputs to quoted market prices, benchmark yields and broker/dealer quotes. Level 3 inputs, as applicable, represent unobservable inputs that reflect assumptions developed by management to measure assets at fair value.

The expected return on assets is developed in consideration of the anticipated duration of investment period for assets held by the plan, the allocation of assets in the plan, and the historical returns for plan assets.

88

Estimated future benefit payments under the plans are as follows (dollars in thousands):

	U.S. Plans		Non-U.S. Plans
2022	$	1,798	$	62,209
2023	1,802		63,462
2024	1,810		63,739
2025	1,831		64,817
2026 through 2031	11,597		388,203

Expected contributions to the U.S. Plans and Non-U.S. Plans to be made in 2022 are $0.4 million and $4.0 million, respectively.

(b)Defined Contribution Plans

As of January 1, 2022, the company maintained two separate defined contribution 401(k) savings plans covering all employees in the United States. These two plans separately cover the union employees at the Elgin, Illinois facility and all other remaining union and non-union employees in the United States. The company also maintained defined contribution plans for its UK based employees.

89

(12)    RESTRUCTURING AND ACQUISITION INTEGRATION INITIATIVES

Commercial Foodservice Equipment Group:

During the fiscal years 2021, 2020 and 2019, the company undertook cost reduction initiatives related to the Commercial Foodservice Equipment Group including headcount reductions and facility consolidations. These actions resulted in expenses of $5.4 million, $10.1 million and $6.4 million in the twelve months ended January 1, 2022, January 2, 2021 and December 28, 2019 respectively, primarily for severance related to headcount reductions associated with COVID-19 pandemic and facility consolidations. These expenses are reflected in restructuring expenses in the Consolidated Statements of Earnings. The primary realization of cost savings from the restructuring initiatives began in 2020 with an expected annual savings of approximately $20.0 million. At January 1, 2022, the restructuring obligations accrued for these initiatives are immaterial and will be substantially complete by the end of fiscal year 2022.

The restructuring expenses for the other segments of the company were not material during fiscal years 2021, 2020 and 2019.

In December 2020, the company recorded an impairment of approximately $2.9 million associated to reflect the fair market value of assets held for sale of a non-core business within the Residential Kitchen Equipment Group. This charge was reflected in impairments in the Consolidated Statements of Earnings. As a result approximately $17.4 million of current assets have been classified as held for sale, within prepaid expenses and other current assets and approximately $22.3 million of liabilities have been classified as held for sale within accrued expenses on the Consolidated Balance Sheets. The sale was completed in January 2021.

90

THE MIDDLEBY CORPORATION

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

FOR THE FISCAL YEARS ENDED JANUARY 1, 2022, JANUARY 2, 2021

AND December 28, 2019

(amounts in thousands)

	Balance Beginning Of Period		Additions/ (Recoveries) Charged to Expense		Other Adjustments (1)		Write-Offs During the Period		Balance At End Of Period
Allowance for doubtful accounts; deducted from accounts receivable on the balance sheets-
2021	$	19,225	$	809	$	554	$	(1,818)	$	18,770
2020	$	14,886	$	6,868	$	1,239	$	(3,768)	$	19,225
2019	$	13,608	$	1,941	$	2,009	$	(2,672)	$	14,886

(1) Amounts consist primarily of valuation allowances assumed from acquired companies.

	Balance Beginning Of Period		Additions/ (Recoveries) Charged to Expense		Write-Offs During the Period		Balance At End Of Period
Valuation allowance - Deferred tax assets
2021	$	11,731	$	1,138	$	(2,647)	$	10,222
2020	$	7,754	$	3,977	$	—	$	11,731
2019	$	26,023	$	129	$	(18,398)	$	7,754

91

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None

 Item 9A. Controls and Procedures

Disclosure Controls and Procedures

The company maintains disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) as of the end of the period covered by this report that are designed to ensure that information required to be disclosed in the company's Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the company's management, including its Chief Executive Officer and Chief Financial Officer as appropriate, to allow timely decisions regarding required disclosure.

The company carried out an evaluation, under the supervision and with the participation of the company's management, including the company's Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the company's disclosure controls and procedures as of January 1, 2022. Based on the foregoing, the company's Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of this period.

Changes in Internal Control Over Financial Reporting

During the quarter ended January 1, 2022, there have been no changes in the company's internal controls over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting.

92

Management's Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that:

(i)pertain to the maintenance of records that in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;

(ii)provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of our management and directors; and

(iii)provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (COSO). Our assessment of the internal control structure excluded Novy (acquired July 12, 2021), Imperial (acquired September 24, 2021), Newton CFV (acquired November 16, 2021), Kamado Joe and Masterbuilt (acquired December 27, 2021) and Char-Griller (acquired December 27, 2021).

These acquisitions constitute 1.0% and 17.6% of net and total assets, respectively, 1.9% of net sales and (0.4)% of net income of the consolidated financial statements of the Company as of and for the year ended January 1, 2022. These acquisitions are included in the consolidated financial statements of the company as of and for the year ended January 1, 2022. Under guidelines established by the Securities Exchange Commission, companies are allowed to exclude acquisitions from their assessment of internal control over financial reporting during the first year of an acquisition while integrating the acquired companies.

Based on our evaluation under the framework in Internal Control - Integrated Framework, our management concluded that our internal control over financial reporting was effective as of January 1, 2022.

Ernst & Young LLP, independent registered public accounting firm, who audited and reported on the consolidated financial statements of the company included in this report, has issued a report on the effectiveness of the company's internal control over financial reporting as of January 1, 2022.

The Middleby Corporation

March 2, 2022

PART III

Pursuant to General Instruction G (3), of Form 10-K, the information called for by Part III Item 10 (Directors, Executive Officers and Corporate Governance), Item 11 (Executive Compensation), Item 12 (Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters), Item 13 (Certain Relationships and Related Transactions, and Director Independence) and Item 14 (Principal Accountant Fees and Services), is incorporated herein by reference from the registrant’s definitive proxy statement filed with the Commission pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Form 10-K.

93

PART IV

Item 15. Exhibits and Financial Statement Schedules

(a)    1.    Financial Statements

The financial statements listed on Page 48 are filed as part of this Form 10-K.

3.    Exhibits

3.1    Restated Certificate of Incorporation of The Middleby Corporation (effective as of May 13, 2005), incorporated by reference to the company's Form 8-K, Exhibit 3.1, dated April 29, 2005, filed on May 17, 2005.

3.2    Fourth Amended and Restated Bylaws of The Middleby Corporation (effective as of February 26, 2021), filed on March 3, 2021.

3.3    Certificate of Amendment to the Restated Certificate of Incorporation of The Middleby Corporation (effective as of May 3, 2007), incorporated by reference to the company’s Form 8-K, Exhibit 3.1, dated May 3, 2007, filed on May 3, 2007.

3.4    Certificate of Amendment to the Restated Certificate of Incorporation of The Middleby Corporation (effective as of May 8, 2014), incorporated by reference to the company's Form 8-K, Exhibit 3.1, dated May 6, 2014, filed on May 8, 2014.

4.1    Certificate of Designations dated October 30, 1987, and specimen stock certificate relating to the company Preferred Stock, incorporated by reference from the company’s Form 10-K, Exhibit (4), for the fiscal year ended December 31, 1988, filed on March 15, 1989.

4.2    Indenture (including form of Global Note) with respect to The Middleby Corporation’s 1.00% Convertible Senior Notes due 2025, dated as of August 21, 2020, between The Middleby Corporation and U.S. Bank National Association, as trustee, incorporated by reference to the company's Form 8-K Exhibit 4.1 filed on August 21, 2020.

4.3    Form of Global Note for the 1.00% Convertible Senior Notes due 2025 incorporated by reference to the company's Form 8-K Exhibit 4.1 filed on August 21, 2020.

4.4    Description of the Company's Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934, filed on March 3, 2021.

10.1    Voting and Support Agreement, dated as of April 20, 2021, by and among The Middleby Corporation and the Welbilt Significant Stockholders named therein, incorporated by reference to the company's Form 8-K Exhibit 10.1 filed on April 21, 2021.

10.2    Eighth Amended and Restated Credit Agreement, dated as of October 21, 2021, among Middleby Marshall Inc., The Middleby Corporation, the Subsidiary Borrowers named therein, the lenders named therein and Bank of America, N.A., as administrative agent for the lenders, incorporated by reference to the company's Form 8-K Exhibit 10.1 filed on October 21, 2021.

10.3*    Amended 1998 Stock Incentive Plan, dated December 15, 2003, incorporated by reference to the company’s Form 10-K, Exhibit 10.21, for the fiscal year ended January 3, 2004, filed on April 2, 2004.

10.4*    Employment Agreement by and between The Middleby Corporation and Timothy J. FitzGerald, dated March 21, 2013, incorporated by reference to the company's Form 8-K Exhibit 10.1, dated March 21, 2013, filed on March 25, 2013.

10.5*    Form of The Middleby Corporation 1998 Stock Incentive Plan Restricted Stock Agreement, incorporated by reference to the company's Form 8-K Exhibit 10.2, dated March 7, 2005, filed on March 8, 2005.

10.6*    Amendment to The Middleby Corporation 1998 Stock Incentive Plan, effective as of January 1, 2005, incorporated by reference to the company's Form 8-K Exhibit 10.2, dated April 29, 2005, filed on May 17, 2005.

94

10.7*    Revised Form of Restricted Stock Agreement for The Middleby Corporation 1998 Stock Incentive Plan, incorporated by reference to the company’s Form 8-K, Exhibit 10.1, dated March 8, 2007, filed on March 14, 2007.

10.8*    The Middleby Corporation 2011 Long-Term Incentive Plan, incorporated by reference to Appendix A to the company’s definitive proxy statement filed with the Securities and Exchange Commission on April 1, 2011.

10.9*    The Middleby Corporation Value Creation Incentive Plan, incorporated by reference to Appendix B to the company’s definitive proxy statement filed with the Securities and Exchange Commission on April 1, 2011.

10.10*    Form of Restricted Performance Stock Agreement for The Middleby Corporation 2011 Long-Term Incentive Plan, incorporated by reference to Exhibit 10.1 to the company's Form 8-K, dated February 24, 2014, filed on March 3, 2014.

10.11*    Amendment to Employment Agreement between The Middleby Corporation, Middleby Marshall Inc. and Timothy J. FitzGerald, dated February 19, 2018, incorporated by reference to the company's Form 8-K Exhibit 10.2, dated February 19, 2018, filed on February 22, 2018.

10.12*    Employment Agreement between The Middleby Corporation, Middleby Marshall Inc. and David Brewer, dated February 19, 2018, incorporated by reference to the company's Form 8-K Exhibit 10.3, dated February 19, 2018, filed on February 22, 2018.

10.13*    Form of Stock Award Agreement for The Middleby Corporation 2011 Long-Term Incentive Plan, incorporated by reference to the company's Form 8-K, Exhibit 10.1, dated April 11, 2019, filed on April 16, 2019.

10.14*    Form of Restricted Stock Award Agreement for The Middleby Corporation 2011 Long-Term Incentive Plan, incorporated by reference to the company's Form 8-K, Exhibit 10.2, dated April 11, 2019, filed on April 16, 2019. 

10.15*    Form of Restricted Stock Unit Award Agreement for The Middleby Corporation 2011 Long-Term Incentive Plan, incorporated by reference to the company's Form 8-K Exhibit 10.1, dated December 31, 2020, filed on January 5, 2021.

10.16*    Form of Restricted Stock Unit Award Agreement for Non-Employee Directors for The Middleby Corporation 2011 Long-Term Incentive Plan, incorporated by reference to the company's Form 10-Q Exhibit 10.2 filed on May 13, 2021

21    List of subsidiaries.

23.1    Consent of Ernst & Young LLP.

31.1    Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.

31.2    Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.

32.1    Certification of Principal Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2    Certification of Principal Financial Officer Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101    Financial statements on Form 10-K for the year ended January 1, 2022, filed on March 2, 2022, formatted in Extensive Business Reporting Language (XBRL); (i) consolidated balance sheets, (ii) consolidated statements of earnings, (iii) consolidated statements of cash flows, (iv) notes to the consolidated financial statements.

104    Cover Page Interactive Data File (formatted as Inline Extensive Business Reporting Language (iXBRL) and contained in Exhibit 101).

*    Designates management contract or compensation plan. 

(c)See the financial statement schedule included under Item 8.

95

Item 16. Form 10-K Summary

None

96

SIGNATURES

Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 2nd day of March 2022.

THE MIDDLEBY CORPORATION

BY:	/s/ Bryan E. Mittelman
	Bryan E. Mittelman
	Chief Financial Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on March 2, 2022.

Signatures	Title
PRINCIPAL EXECUTIVE OFFICER
/s/  Timothy J. FitzGerald	Chief Executive Officer and Director
Timothy J. FitzGerald
PRINCIPAL FINANCIAL AND
ACCOUNTING OFFICER
/s/  Bryan E. Mittelman	Chief Financial Officer,
Bryan E. Mittelman	Principal Financial Officer and
	Principal Accounting Officer
DIRECTORS
/s/  Gordon O'Brien	Chairman of the Board, Director
Gordon O'Brien
/s/  Sarah Palisi Chapin	Director
Sarah Palisi Chapin
/s/  Cathy L. McCarthy	Director
Cathy L. McCarthy
/s/  John R. Miller, III	Director
John R. Miller, III
/s/  Robert Nerbonne	Director
Robert Nerbonne
/s/  Nassem Ziyad	Director
Nassem Ziyad

97

EX-21

EXHIBIT 21

Subsidiaries of The Middleby Corporation(1)
	State/Country of
Name of Subsidiary	Incorporation/Organization
A&J Manufacturing, LLC (Florida)	Florida
A&J Manufacturing, LLC (Georgia)	Georgia
AGA Rangemaster Group Ltd	United Kingdom
AGA Rangemaster Ltd	United Kingdom
AGA Rangemaster Properties Ltd	United Kingdom
AGA Rayburn Ltd	United Kingdom
Alkar Holdings, Inc.	Wisconsin
Alkar-RapidPak, Inc.	Wisconsin
American Permanent Ware Company, LLC	Delaware
Anetsberger, LLC	Delaware
ARG Corporate Services Ltd	United Kingdom
Armor Inox Holding France S.A.S.	France
Armor Inox Production S.a.r.l.	France
Armor Inox S.A.S.	France
Armor Inox Services S.A.S.	France
Armor Inox USA LLC	Delaware
Associated American Industries, LLC	Texas
Auto-Bake Acquisition Pty. Ltd	Australia
Auto-Bake Pty Ltd	Australia
Automation Tech, LLC	Delaware
Automatic Bar Controls, Inc.	Delaware
Bakers Pride Oven Company, LLC	Delaware
Baker Thermal Solutions LLC	Delaware
Beech Ovens LLC	Delaware
Beech Ovens Pty Ltd	Australia
Brava Home, Inc.	Delaware
Britannia Kitchen Ventilation	United Kingdom
Burford Bakery Solutions Limited	United Kingdom
Burford Corp	Oklahoma
Carter-Hoffmann LLC	Delaware
Catering Equipment Industry srl	Italy
Cinoxplan, S.L.U.	Spain
Cloverleaf AM Essex, LLC	Delaware
CM Brewing Technologies, LLC	California
Cooking Solutions Group, LLC	Delaware
CookTek Induction Systems, LLC	Delaware
Cozzini Middleby de Mexico, S. de R.L.de C.V.	Mexico
Cozzini, LLC	Delaware
Danfotech Holdings, LLC	Delaware
Danfotech Inc.	Missouri

DBT Holdings LLC	Delaware
Desmon S.p.A.	Italy
Evo America, LLC	Delaware
F.R. Drake Company	Delaware
Fab-Asia Inc.	Philippines
Field Service Solutions	Arkansas
Filling Machines & Systems, Inc.	Delaware
Firex S.r.l.	Italy
Follett Europe Polska sp. z.o.o.	Poland
Follett International sp. z.o.o.	Poland
Follett Products, LLC	Delaware
GateNext, LLC	Florida
G.S. Blodgett, LLC	Delaware
Giga Grandi Cucine S.r.l.	Italy
Globe Food Equipment Company	Ohio
Globe Food Equipment Holding Company	Delaware
Goldstein Eswood Commercial Cooking Pty Ltd	Australia
Goldstein Properties Pty Ltd	Australia
Grand Rise International Limited	Hong Kong
Grange Furniture Inc.	Delaware
Guangzhou Masterbuilt Co. Limited	Peoples Republic of China
Hinds-Bock Corporation	Washington
Holman Cooking Equipment Inc.	Delaware
Houno A/S	Denmark
Houno Holdings LLC	Delaware
Imperial Machine Company Ltd	United Kingdom
Inline Filling Systems, LLC	Florida
Jade Range LLC	Delaware
Johs. Lassen Fjellebroen A/S	Denmark
Josper, S.A.	Spain
Keylog S.r.l.	Italy
Kamado Joe Deutschland GmbH	Germany
Kamado Joe Europe BV	Netherlands
Kamado Joe UK Limited	United Kingdom
KJ UK Holdings Limited	United Kingdom
Lab2Fab, LLC	Delaware
LA Cornue SAS	France
Levens Middleby Worldwide B.V.	Netherlands
Lincat Group Ltd.	United Kingdom
Lincat Limited.	United Kingdom
Masterbuilt I, Inc.	Delaware
Masterbuilt II, Inc.	Delaware
Masterbuilt Holdings, LLC	Delaware
Masterbuilt Manufacturing, LLC	Delaware
Maurer-Atmos Middleby GmbH	Germany
Meheen Manufacturing, Inc.	Washington
MEP FMS Holdings, LLC	Delaware

Middleby Advantage, LLC	Delaware
Middleby Asia Ltd	Hong Kong
Middleby Canada Company, Inc.	Canada
Middleby Celfrost Innovations Pvt Ltd	India
Middleby China Corporation	Peoples Republic of China
Middleby Coffee Solutions Group, LLC	Delaware
Middleby Cozzini Brasil Equipamentos, Ltda	Brazil
Middleby Denmark Holdings ApS	Denmark
Middleby do Brasil Ltda	Brazil
Middleby Espana SLU	Spain
Middleby Europe SL	Spain
Middleby Foodservice Equipment Corporation	Peoples Republic of China
Middleby Food Service Equipment Co., Ltd	Peoples Republic of China
Middleby Holding UK Ltd	United Kingdom
Middleby India Engineering Pvt Ltd	India
Middleby Lux Holdings SCS	Luxembourg
Middleby Luxembourg S.a.r.l.	Luxembourg
Middleby Marshall Holding, LLC	Delaware
Middleby Marshall, Inc.	Delaware
Middleby Nationals Sales LLC	Delaware
Middleby Packaging Solutions, LLC	Delaware
Middleby Philippines Corporation	Philippines
Middleby Sweden Holdings AB	Sweden
Middleby UK Ltd	United Kingdom
Middleby UK Residential Holdings	United Kingdom
Middleby Worldwide Australia Pty Ltd	Australia
Middleby Worldwide Mexico SA de CV	Mexico
Middleby Worldwide Philippines	Philippines
Middleby Worldwide Services SA de CV	Mexico
Middleby Worldwide, Inc.	Florida
Middleby XME S.L.U.	Spain
MP Equipment, LLC	Delaware
New Star International Holdings, Inc.	Delaware
Newton CFV, LLC	Delaware
Newton CFV, Inc.	Delaware
Nieco, LLC	Delaware
Northland Corporation	Michigan
Pacproinc, LLC	Delaware
Novy GmbH	Germany
Novy Holding NV	Belgium
Novy International	Belgium
Novy Invest NV	Belgium
Novy Ltd	United Kingdom
Novy Nederland BV	Netherlands
Novy NV	Belgium
Novy SAS	Belgium
Pengyuan Technology (Shenzhen) Co, LTD.	Peoples Republic of China

Pitco Frialator, LLC	Delaware
Premier Specialty Brands, LLC	Delaware
Powerhouse Dynamics, LLC	Delaware
QualServ Solutions LLC	Delaware
Scanico A/S	Denmark
SD Group Intressenter (SDGI)	Sweden
Spenuzza, Inc.	California
Standex de Mexico S.A. de C.V.	Mexico
Star International Holdings, Inc.	Delaware
Star Manufacturing International Inc.	Delaware
Stewart Systems Baking, LLC	Delaware
Sveba Dahlen Rus. Ltd.	Russia
Sveba-Dahlen Aktiebolag	Sweden
Sveba Dahlen Baltic OÜ	Estonia
Sveba-Dahlen España	Spain
Sveba-Dahlen Group AB	Sweden
Taylor Company S.r.l.	Italy
Taylor Commercial Foodservice, LLC	Delaware
Taylor Food Service Equipment Trading (Shanghai) Co. Ltd	China
The Alluvian Spa, LLC	Mississippi
The Alluvian, LLC	Mississippi
Thurne-Middleby Ltd	United Kingdom
TMC Lux Holdings Sarl	Luxembourg
TMC Lux Sarl	Luxembourg
TMC Scots Holdings LP	United Kingdom
TurboChef Technologies, LLC	Delaware
ULC Holding Company	Delaware
U-Line Corporation	Wisconsin
Varimixer A/S	Denmark
Ve.Ma.C. S.r.l.	Italy
Viking Cooking Schools, LLC	Mississippi
Viking Culinary Group, LLC	Mississippi
Viking Range Brasil Participacoes Ltda	Brazil
Viking Range Corporation do Brasil Importacao e Comercio Ltda	Brazil
Viking Range, LLC	Delaware
Waterford Stanley Ltd	Ireland
Wells Bloomfield LLC	Delaware
Wild Goose Canning Technologies, LLC	Colorado
Wunder-Bar Europe S.r.o.	Czech Republic
Wunder-Bar Dispensing UK Ltd	United Kingdom
Wunder-Bar Holdings, Inc.	Delaware
Wunder-Bar International, Inc.	California
(1) Certain subsidiaries have been omitted as allowed.

EX-23.1

                                                Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the Registration Statement (Form S-8 No. 333-259055) pertaining to The Middleby Corporation 2021 Long-Term Incentive Plan, of our reports dated March 2, 2022, with respect to the consolidated financial statements and schedule of The Middleby Corporation and the effectiveness of internal control over financial reporting of The Middleby Corporation, included in this Annual Report (Form 10-K) for the year ended January 1, 2022.

/s/ Ernst & Young LLP

Chicago, Illinois

March 2, 2022

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Timothy J. FitzGerald, certify that:

1.I have reviewed this Annual Report on Form 10-K of The Middleby Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: March 2, 2022

/s/ Timothy J. FitzGerald

Timothy J. FitzGerald

Chief Executive Officer of The Middleby Corporation

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, Bryan E. Mittelman, certify that:

1.I have reviewed this Annual Report on Form 10-K of The Middleby Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: March 2, 2022

/s/ Bryan E. Mittelman

Bryan E. Mittelman

Chief Financial Officer of The Middleby Corporation

EX-32.1

EXHIBIT 32.1

CERTIFICATION BY THE PRINCIPAL EXECUTIVE OFFICER OF

THE MIDDLEBY CORPORATION

PURSUANT TO RULE 13A-14(b) UNDER THE EXCHANGE ACT AND

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. 1350)

This certification is being furnished pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

I, Timothy J. FitzGerald, Chief Executive Officer (principal executive officer) of The Middleby Corporation (the “Registrant”), certify, to the best of my knowledge, based upon a review of the Annual Report on Form 10-K for the period ended January 1, 2022 of the Registrant (the “Report”), that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and

(2)The information contained in the Report fairly presents, in all material aspects, the financial condition and results of operations of the Registrant.

Date: March 2, 2022

/s/ Timothy J. FitzGerald

Timothy J. FitzGerald

EX-32.2

EXHIBIT 32.2

CERTIFICATION BY THE PRINCIPAL FINANCIAL OFFICER OF

THE MIDDLEBY CORPORATION

PURSUANT TO RULE 13A-14(b) UNDER THE EXCHANGE ACT AND

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. 1350)

This certification is being furnished pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

I, Bryan E. Mittelman, Chief Financial Officer (principal financial officer) of The Middleby Corporation (the “Registrant”), certify, to the best of my knowledge, based upon a review of the Annual Report on Form 10-K for the period ended January 1, 2022 of the Registrant (the “Report”), that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and

(2)The information contained in the Report fairly presents, in all material aspects, the financial condition and results of operations of the Registrant.

Date: March 2, 2022

/s/ Bryan E. Mittelman

Bryan E. Mittelman

XML

Document and Entity Information - USD ($)	12 Months Ended
	Jan. 01, 2022	Feb. 28, 2022	Jul. 03, 2021
Cover [Abstract]
Document Fiscal Period Focus	FY
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jan. 01, 2022
Document Transition Report	false
Entity File Number	1-9973
Entity Registrant Name	THE MIDDLEBY CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-3352497
Entity Address, Address Line One	1400 Toastmaster Drive,
Entity Address, City or Town	Elgin,
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60120
City Area Code	(847)
Local Phone Number	741-3300
Title of 12(b) Security	Common stock,
Trading Symbol	MIDD
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 9,526,285,074
Entity Common Stock, Shares Outstanding		54,661,085
Entity Central Index Key	0000769520
Current Fiscal Year End Date	--01-01
Document Fiscal Year Focus	2021
Amendment Flag	false
ICFR Auditor Attestation Flag	true

XML

Audit Information	12 Months Ended
	Jan. 01, 2022
Auditor [Line Items]
Auditor Firm ID	42
Auditor Name	Ernst & Young LLP
Auditor Location	Chicago, Illinois

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Current assets:
Cash and cash equivalents	$ 180,362	$ 268,103
Accounts Receivable, Net, Current	577,142	363,361
Inventory, Net	837,418	540,198
Prepaid expenses and other	92,269	81,049
Prepaid Taxes	19,894	17,782
Total current assets	1,707,085	1,270,493
Property, Plant and Equipment, Net	380,980	344,482
Goodwill	2,243,469	1,934,261
Other intangibles	1,875,377	1,450,381
Deferred Income Tax Assets, Net	33,194	76,052
Other assets	143,493	126,805
Total Assets	6,383,598	5,202,474
Current liabilities:
Current maturities of long-term debt	27,293	22,944
Accounts payable	304,740	182,773
Accrued expenses	582,855	494,541
Total current liabilities	914,888	700,258
Long-term debt	2,387,001	1,706,652
Deferred Tax and Other Liabilities, Noncurrent	186,935	147,224
Liability, Defined Benefit Pension Plan, Noncurrent	219,680	469,500
Other non-current liabilities	180,818	202,191
Stockholders' equity:
Common Stock, Value, Issued	147	147
Paid-in capital	357,309	433,308
Treasury Stock, Value	566,399	537,134
Retained earnings	3,062,303	2,568,756
Accumulated other comprehensive loss	(359,084)	(488,428)
Total stockholders' equity	2,494,276	1,976,649
Total liabilities and stockholders' equity	$ 6,383,598	$ 5,202,474

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Allowance for Doubtful Accounts Receivable, Current	$ 18,770	$ 19,225
Less accumulated depreciation	(266,203)	(229,871)
Finite-Lived Intangible Assets, Accumulated Amortization	$ (442,208)	$ (374,061)
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares issued	63,666,020	63,651,773
Treasury Stock, Shares	8,170,276	8,013,296

XML

CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands		12 Months Ended
		Jan. 01, 2022		Jan. 02, 2021		Dec. 28, 2019
Net sales		$ 3,250,792		$ 2,513,257		$ 2,959,446
Cost of Sales		2,055,932		1,631,209		1,855,949
Gross profit		1,194,860		882,048		1,103,497
Selling, General and Administrative Expense		667,976		531,897		593,813
Restructuring Charges		7,655		12,375		10,480
Merger termination fee		(110,000)		0		0
Gain (Loss) Related to Litigation Settlement		0		0		(14,839)
Gain (Loss) on Disposition of Assets		(763)		(1,982)		0
Impairments		0		15,327		0
Income from operations	[2]	629,992	[1],[3]	324,431	[1]	514,043
Net interest expense and deferred financing amortization, net		57,157		78,617		82,609
Net Periodic Benefit Cost, Other Than Service Cost & Curtailment		(45,066)		(39,996)		(29,722)
Curtailment loss		0		14,682		865
Other (income) expense, net		(1,603)		3,071		(2,328)
Earnings before income taxes		619,504		268,057		462,619
Provision for income taxes		131,012		60,763		110,379
Net earnings		$ 488,492		$ 207,294		$ 352,240
Net earnings per share:
Basic (in usd per share)		$ 8.85		$ 3.76		$ 6.33
Diluted (in usd per share)		$ 8.62		$ 3.76		$ 6.33
Weighted average number of shares
Basic (in shares)		55,216,000		55,093,000		55,647,000
Dilutive common stock equivalents (in shares)		1,449,000		43,000		9,000
Diluted (in shares)		56,665,000		55,136,000		55,656,000

[1] Gain on sale of plant is included in Commercial Foodservice and Residential Kitchen for 2021 and Gain on sale of plant is included in Commercial Foodservice for 2020.

[2] Restructuring expenses and impairments are included in operating income of the segment to which they pertain. See note 3(f) and 12 for further details

[3] Termination fee from Welbilt merger is included in Corporate and Other.

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Statement of Comprehensive Income [Abstract]
Net earnings	$ 488,492	$ 207,294	$ 352,240
Other comprehensive income:
Foreign currency translation adjustments	(47,693)	55,744	7,066
Pension liability adjustment, net of tax	151,223	(172,583)	(57,398)
Unrealized gain (loss) on interest rate swaps, net of tax	24,484	(20,656)	(24,125)
Unrealized gain on certain investments, net of tax	1,330	0	0
Other Comprehensive Income (Loss), Net of Tax	129,344	(137,495)	(74,457)
Comprehensive income	$ 617,836	$ 69,799	$ 277,783

XML

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment		Common Stock	Common Stock Cumulative Effect, Period of Adoption, Adjustment	Paid-in Capital	Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment		Treasury Stock	Treasury Stock Cumulative Effect, Period of Adoption, Adjustment	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment		Accumulated Other Comprehensive Income (loss)	Accumulated Other Comprehensive Income (loss) Cumulative Effect, Period of Adoption, Adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adoption of ASU		$ (100)
Adoption of ASU | Accounting Standards Update 2017-12		0			$ 0		$ 0			$ 0		$ (11)	[1]		$ 11	[1]
Balance, Beginning at Dec. 29, 2018	$ 1,665,203			$ 145		$ 377,419			$ (445,118)		$ 2,009,233			$ (276,476)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	352,240			0		0			0		352,240			0
Currency translation adjustments	7,066			0		0			0		0			7,066
Change in unrecognized pension benefit costs, net of tax	(57,398)			0		0			0		0			(57,398)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax	(24,125)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | Accounting Standards Update 2017-12	(24,136)			0		0			0		0			(24,136)
Unrealized gain on certain investments, net of tax	0
Stock compensation	8,133			0		8,133			0		0			0
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs	1,850			0		1,850			0		0			0
Purchase of treasury stock	(6,144)			0		0			(6,144)		0			0
Balance, Ending at Dec. 28, 2019	1,946,814			145		387,402			(451,262)		2,361,462			(350,933)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	207,294			0		0			0		207,294			0
Currency translation adjustments	55,744			0		0			0		0			55,744
Change in unrecognized pension benefit costs, net of tax	(172,583)			0		0			0		0			(172,583)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax	(20,656)			0		0			0		0			(20,656)
Unrealized gain on certain investments, net of tax	0
Stock compensation	19,613			0		19,613			0		0			0
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs	25,987			2		25,985			0		0			0
Purchase of treasury stock	(85,872)			0		0			(85,872)		0			0
Equity component of issuance of convertible notes	308			0		308			0		0			0
Balance, Ending at Jan. 02, 2021	1,976,649			147		433,308			(537,134)		2,568,756			(488,428)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adoption of ASU | Accounting Standards Update 2020-06		$ (74,375)	[2]		$ 0		$ (79,430)	[2]		$ 0		$ 5,055	[2]		$ 0
Net earnings	488,492			0		0			0		488,492			0
Currency translation adjustments	(47,693)			0		0			0		0			(47,693)
Change in unrecognized pension benefit costs, net of tax	151,223			0		0			0		0			151,223
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax	24,484			0		0			0		0			24,484
Unrealized gain on certain investments, net of tax	1,330			0		0			0		0			1,330
Stock compensation	42,330			0		42,330			0		0			0
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs	2,522			0		2,522			0		0			0
Purchase of treasury stock	(29,265)			0		0			(29,265)		0			0
Purchase of capped calls	41,421			0		41,421			0		0			0
Balance, Ending at Jan. 01, 2022	$ 2,494,276			$ 147		$ 357,309			$ (566,399)		$ 3,062,303			$ (359,084)

[1] As of December 30, 2018, the company adopted ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" using the modified retrospective method. The adoption of this guidance resulted in the recognition of less than $(0.1) million as an adjustment to the opening balance of retained earnings.

[2] As of January 3, 2021 the company adopted ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity using the modified retrospective method. The adoption of this guidance resulted in a $79.4 million reduction to paid-in capital, net of tax of $25.5 million, and the recognition of $5.1 million as an adjustment to the opening balance of retained earnings, net of tax of $1.6 million.

XML

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax	$ (49,589)	$ 40,426	$ 11,914
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Tax	8,619	(7,147)	$ (8,516)
OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment, Tax	443
Adjustments to Additional Paid in Capital, Purchase of Capped Calls, Tax	$ (13,132)
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06
Cumulative Effect Period of Adoption, Additional Paid In Capital		79,400
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | Paid-in Capital
Cumulative effect Period of Adoption, tax impact		25,500
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | Retained Earnings
Cumulative effect Period of Adoption, tax impact		$ 1,600

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Cash flows from operating activities--
Net earnings	$ 488,492	$ 207,294	$ 352,240
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization	125,243	110,532	103,428
Amortization of Debt Issuance Costs and Discounts	0	7,971	0
Non-cash share-based compensation	42,330	19,613	8,133
Deferred income taxes	6,863	16,421	22,212
Net Periodic Benefit Cost, Other Components	(45,066)	(25,314)	(28,857)
Gain (Loss) on Disposition of Assets	(763)	(1,982)	0
Gain (Loss) on Sale of Assets and Asset Impairment Charges	0	15,327	0
Non Cash Restructuring	1,924	0	0
Changes in assets and liabilities, net of acquisitions
Accounts receivable, net	(99,890)	90,399	(27,748)
Inventories, net	(204,167)	66,690	(28,288)
Prepaid expenses and other assets	10,853	782	5,067
Accounts payable	61,336	(3,015)	(29,396)
Accrued expenses and other liabilities	36,244	20,067	634
Net cash provided by operating activities	423,399	524,785	377,425
Cash flows from investing activities--
Additions to property and equipment	(46,551)	(34,849)	(46,609)
Proceeds from Sale of Property Held-for-sale	6,290	14,147	0
Payments to Acquire Intangible Assets	(5,000)	(7,052)	0
Payments to Acquire Businesses, Net of Cash Acquired	(963,600)	(79,003)	(281,058)
Net cash (used in) investing activities	(1,008,861)	(106,757)	(327,667)
Cash flows from financing activities--
Proceeds from (Repayments of) Lines of Credit	1,739,101	2,567,305	543,294
Deferred Income Tax Liabilities, Net	(1,135,058)	(3,345,770)	(560,363)
Proceeds from Convertible Debt	0	729,933	0
Payments for Premiums for Capped Call Confirmations, Debt Issuance	(54,553)	(104,650)	0
Net (repayments) proceeds under foreign bank loan	(2,030)	1,305	(405)
Repayments of Notes Payable	(303)	(45)	(179)
Proceeds from (Payments for) Other Financing Activities	(5,861)	(3,700)	(1,648)
Repurchase of treasury stock	(29,265)	(85,872)	(6,144)
Payments of Debt Issuance Costs	(9,242)	(10,974)	0
Net cash (used in) provided by financing activities	502,789	(252,468)	(25,445)
Effect of exchange rates on cash and cash equivalents	(5,068)	8,043	(1,514)
Net (decrease) increase in cash and cash equivalents	(87,741)	173,603	22,799
Changes in cash and cash equivalents--
Cash and cash equivalents at beginning of year	268,103	94,500	71,701
Cash and cash equivalents at end of quarter	180,362	268,103	94,500
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]
Stock Issued During Period, Value, Acquisitions	$ 2,522	$ 15,869	$ 0

XML

Nature of Operations

12 Months Ended

Jan. 01, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations

NATURE OF OPERATIONS

The Middleby Corporation (the "company") is engaged in the design, manufacture and sale of commercial foodservice, food processing equipment and residential kitchen equipment. The company manufactures and assembles this equipment at thirty-nine U.S. and twenty-eight international manufacturing facilities. The company operates in three business segments: 1) the Commercial Foodservice Equipment Group, 2) the Food Processing Equipment Group and 3) the Residential Kitchen Equipment Group.

The Commercial Foodservice Equipment Group has a broad portfolio of foodservice equipment, which enable it to serve virtually any cooking, warming, 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, convenience stores, 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, and IoT solutions.

The Food Processing Equipment Group offers a broad portfolio of processing solutions for customers producing pre-cooked meat products, such as hot dogs, dinner sausages, poultry and lunchmeats and baked goods such as muffins, cookies and bread. Through its broad line of products, the company is able to deliver a wide array of cooking solutions to service a variety of food processing requirements demanded by its customers. The company can offer highly integrated 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, formers, 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, 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.

XML

Acquisition and Purchase Accounting

12 Months Ended

Jan. 01, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisition and Purchase Accounting [Text Block]

ACQUISITIONS AND PURCHASE ACCOUNTING

The following represents the company's significant acquisitions in 2021 and 2020, the termination of a Merger Agreement, as well as summarized information on various acquisitions that were not individually material.

Termination of Welbilt Merger

On April 20, 2021, Middleby entered into a Merger Agreement with Welbilt, Inc. Following Welbilt's receipt of an alternative acquisition proposal, on July 13, 2021, Middleby announced that, under the terms of the Merger Agreement, it would not exercise its right to propose any modifications to the terms of the Merger Agreement and would allow the match period to expire. Accordingly, on July 14, 2021, Welbilt delivered to Middleby a written notice terminating the Merger Agreement and, concurrently with Middleby’s receipt of the termination fee of $110.0 million in cash from Welbilt, the Merger Agreement was terminated on July 14, 2021.

The termination fee received is reflected in the Consolidated Statements of Comprehensive Earnings as the "merger termination fee" and $19.7 million of deal costs associated with the transaction are reflected in selling, general and administrative expenses in the Consolidated Statements of Comprehensive Earnings.

2020 Acquisitions

During 2020, the company completed various acquisitions that were not individually material. The final allocation of consideration paid for the other 2020 acquisitions is summarized as follows (in thousands):

	Preliminary Opening Balance Sheet		Measurement Period Adjustments		Adjusted Opening Balance Sheet
Cash	$	14,647	$	—	$	14,647
Current assets	43,670		(13,390)		30,280
Property, plant and equipment	3,014		(349)		2,665
Goodwill	55,335		3,847		59,182
Other intangibles	63,201		625		63,826
Other assets	6,121		52		6,173
Current liabilities	(54,478)		13,037		(41,441)
Long-term deferred tax (liability) asset	(123)		387		264
Other non-current liabilities	(21,902)		791		(21,111)
Consideration paid at closing	$	109,485	$	5,000	$	114,485
Deferred payments	8,666		(468)		8,198
Contingent consideration	16,144		(836)		15,308
Net assets acquired and liabilities assumed	$	134,295	$	3,696	$	137,991

The long-term deferred tax asset amounted to $0.3 million and is related to the difference between the book and tax basis on other assets and liability accounts.

The goodwill and $15.7 million of other intangibles associated with the trade names are subject to the non-amortization provisions of ASC 350. Other intangibles also include $10.6 million allocated to customer relationships, $31.2 million allocated to developed technology and $6.3 million allocated to backlog, which are being amortized over periods of 6 to 9 years, 6 to 12 years, and 3 to 9 months, respectively. Goodwill of $59.2 million and other intangibles of $63.8 million from these acquisitions are allocated to the Commercial Foodservice Equipment Group for segment reporting purposes. Of these assets, goodwill of $24.4 million and intangibles of $63.5 million are expected to be deductible for tax purposes.

Several purchase agreements include deferred payment and earnout provisions providing for contingent payments due to the sellers to the extent certain financial targets are exceeded. The deferred payments are payable between 2021 and 2022. The contractual obligations associated with the deferred payments on the acquisition dates amount to $8.2 million. The earnouts are payable between 2021 and 2023, if the company exceeds certain sales and earnings targets. The contractual obligations associated with the contingent earnout provisions recognized on the acquisition dates amount to $15.3 million.

Novy Invest NV

On July 12, 2021, the company completed its acquisition of all of the capital stock of Novy Invest NV ("Novy"), a leading manufacturer of premium residential ventilation hoods and cook tops located in Belgium, for a purchase price of approximately $250.9 million, net of cash acquired.

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair values of assets acquired and liabilities assumed (in thousands):

	Preliminary Opening Balance Sheet		Preliminary Measurement Period Adjustments		Adjusted Opening Balance Sheet
Cash	$	16,152	$	—	$	16,152
Current assets	23,762		—		23,762
Property, plant and equipment	17,058		(969)		16,089
Goodwill	142,741		(17,109)		125,632
Other intangibles	126,557		22,966		149,523
Other assets	26		173		199
Current liabilities	(23,440)		569		(22,871)
Long-term deferred tax liability	(33,918)		(5,519)		(39,437)
Other non-current liabilities	(1,930)		(111)		(2,041)
Net assets acquired and liabilities assumed	$	267,008	$	—	$	267,008

The long-term deferred tax liability amounted to $39.4 million. The deferred tax liability is comprised of $37.4 million related to the difference between the book and tax basis of identifiable intangible assets and $2.0 million related to the difference between the book and tax basis on identifiable tangible asset and liability accounts.

The goodwill and $105.7 million of other intangibles associated with the trade names are subject to the non-amortization provisions of ASC 350. Other intangibles also include $40.0 million allocated to customer relationships, $2.7 million allocated to developed technology and $1.1 million allocated to backlog, which are being amortized over periods of 7 years, 7 years, and 3 months, respectively. Goodwill of $125.6 million and other intangibles of $149.5 million from this acquisition are allocated to the Residential Kitchen Equipment Group for segment reporting purposes. Goodwill and other intangibles are not expected to be deductible for tax purposes.

The company believes that information gathered to date provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, but the company is waiting for additional information necessary to finalize those fair values for all acquisitions completed during 2021. The intangible assets are pending external valuation and are preliminarily valued using historical information from the Residential Kitchen Equipment Group and qualitative assessment of the business at acquisition date. Specifically, the company estimated the fair values of the intangible assets based on the percentage of purchase price assigned to similar intangible assets in previous acquisitions. Thus, the provisional measurements of fair values set forth above are subject to change. The company expects to complete the purchase price allocation as soon as practicable but no later than one year from the acquisition date.

Kamado Joe and Masterbuilt

On December 27, 2021, the company completed its acquisition of all of the member interests of Masterbuilt Holdings, LLC ("Kamado Joe and Masterbuilt") and their residential outdoor brands of Kamado Joe and Masterbuilt, a leader in outdoor residential cooking located in the Atlanta, Georgia area, for a purchase price of approximately $400.7 million, net of cash acquired. The purchase price included $403.6 million in cash and 12,921 shares of Middleby common stock valued at $2.5 million. The purchase price is subject to adjustment based upon a working capital provision provided by the purchase agreement. The company expects to finalize this in the second quarter of 2022.

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair values of assets acquired and liabilities assumed (in thousands):

	Preliminary Opening Balance Sheet
Cash	$	5,381
Current assets	137,826
Property, plant and equipment	7,773
Goodwill	110,052
Other intangibles	215,577
Other assets	2,143
Current liabilities	(54,865)
Long-term deferred tax liability	(15,907)
Other non-current liabilities	(1,914)
Net assets acquired and liabilities assumed	$	406,066

The long-term deferred tax liability amounted to $15.9 million. The net deferred tax liability is comprised of $2.3 million of deferred tax asset related to tax loss carryforwards and $18.2 million of deferred tax liability related to the difference between the book and tax basis on identifiable tangible asset and liability accounts.

The goodwill and $158.8 million of other intangibles associated with the trade names are subject to the non-amortization provisions of ASC 350. Other intangibles also include $50.3 million allocated to customer relationships and $6.5 million allocated to backlog, which are being amortized over periods of 7 years and 3 months, respectively. Goodwill of $110.1 million and other intangibles of $215.6 million of the company are allocated to the Residential Kitchen Equipment Group for segment reporting purposes. Of these assets, goodwill of $71.7 million and intangibles of $164.3 million are expected to be deductible for tax purposes.

The company believes that information gathered to date provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, but the company is waiting for additional information necessary to finalize those fair values for all acquisitions completed during 2021. The intangible assets are pending external valuation and are preliminarily valued using historical information from the Residential Kitchen Equipment Group and qualitative assessment of the business at acquisition date. Specifically, the company estimated the fair values of the intangible assets based on the percentage of purchase price assigned to similar intangible assets in previous acquisitions. Thus, the provisional measurements of fair values set forth above are subject to change. The company expects to complete the purchase price allocation as soon as practicable but no later than one year from the acquisition date.

Other 2021 Acquisitions

During the year ended January 1, 2022, the company completed various acquisitions that were not individually material. The following estimated fair values of assets acquired and liabilities assumed are based on the information that was available as of the acquisition dates for the other 2021 acquisitions and are summarized as follows (in thousands):

	Preliminary Opening Balance Sheet		Preliminary Measurement Period Adjustments		Adjusted Opening Balance Sheet
Cash	$	6,414	$	—	$	6,414
Current assets	76,077		223		76,300
Property, plant and equipment	19,561		(72)		19,489
Goodwill	85,270		9,065		94,335
Other intangibles	158,725		(9,193)		149,532
Other assets	2,101		31		2,132
Current liabilities	(33,910)		(38)		(33,948)
Long-term deferred tax liability	(3,010)		—		(3,010)
Other non-current liabilities	(7,092)		(16)		(7,108)
Consideration paid at closing	$	304,136	$	—	$	304,136
Contingent consideration	9,404		—		9,404
Net assets acquired and liabilities assumed	$	313,540	$	—	$	313,540

The long-term deferred tax liability amounted to $3.0 million. The net deferred tax liability is comprised of $0.6 million of deferred tax asset related to tax loss carryforwards and $3.6 million of deferred tax liability related to the difference between the book and tax basis on identifiable tangible asset and liability accounts.

The goodwill and $97.1 million of other intangibles associated with the trade names are subject to the non-amortization provisions of ASC 350. Other intangibles also include $41.1 million allocated to customer relationships, $3.4 million allocated to developed technology, and $7.9 million allocated to backlog, which are being amortized over periods of 7 years, 7 years, and 3 months, respectively. Goodwill of $30.5 million and other intangibles of $89.0 million are allocated to the Residential Kitchen Equipment Group for segment reporting purposes. Goodwill of $63.8 million and other intangibles of $60.5 million are allocated to the Commercial Foodservice Equipment Group for segment reporting purposes. Of these assets, goodwill of $92.3 million and intangibles of $148.4 million are expected to be deductible for tax purposes.

One purchase agreement includes earnout provisions providing for contingent payments due to the sellers to the extent certain financial targets are exceeded and upon the achievement of product rollout targets. One earnout is payable upon the achievement of product rollout targets. The second earnout is payable during 2026 if the company exceeds certain earnings targets. The contractual obligation associated with the contingent earnout provisions recognized on the acquisition date amount to $9.4 million.

The company believes that information gathered to date provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, but the company is waiting for additional information necessary to finalize those fair values for all acquisitions completed during 2021. Certain intangible assets are pending external valuation and are preliminarily valued using historical information from the Residential Kitchen Equipment Group and Commercial Foodservice Equipment Group and qualitative assessments of the individual businesses at acquisition date. Specifically, the company estimated the fair values of the intangible assets based on the percentage of purchase price assigned to similar intangible assets in previous acquisitions. Thus, the provisional measurements of fair values set forth above are subject to change. The company expects to complete the purchase price allocation as soon as practicable but no later than one year from the acquisition date.

Pro Forma Financial Information

In accordance with ASC 805 Business Combinations, the following unaudited pro forma results of operations for the twelve months ended January 1, 2022 and January 2, 2021, assumes the 2020 and 2021 acquisitions described above were completed on December 29, 2019 (first day of fiscal year 2020). The following pro forma results include adjustments to reflect amortization of intangibles associated with the acquisitions and the effects of adjustments made to the carrying value of certain assets (in thousands, except per share data):  

	Twelve Months Ended
	January 1, 2022		January 2, 2021
Net sales	$	3,732,010	$	2,980,164
Net earnings	519,879		177,923
Net earnings per share:
Basic	$	9.42	$	3.23
Diluted	$	9.17	$	3.23

The historical consolidated financial information of the Company and the acquisitions have been adjusted in the pro forma information to give effect to pro forma events that are (1) directly attributable to the transactions, (2) factually supportable and (3) expected to have a continuing impact on the combined results. Pro forma data may not be indicative of the results that would have been obtained had these acquisitions occurred at the beginning of the periods presented, nor is it intended to be a projection of future results. Additionally, the pro forma financial information does not reflect the costs which the company has incurred or may incur to integrate the acquired businesses.

XML

Summary of Significant Accounting Policies

12 Months Ended

Jan. 01, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a)Basis of Presentation

The consolidated financial statements include the accounts of the company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires the company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses as well as related disclosures. Significant items that are subject to such estimates and judgments include allowances for doubtful accounts, reserves for excess and obsolete inventories, long-lived and intangible assets, warranty reserves, insurance reserves, income tax reserves and post-retirement obligations. On an ongoing basis, the company evaluates its estimates and assumptions based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.

The company's fiscal year ends on the Saturday nearest December 31. Fiscal years 2021, 2020, and 2019 ended on January 1, 2022, January 2, 2021 and December 28, 2019, respectively, and included 52, 53 and 52 weeks, respectively.

(b)Cash and Cash Equivalents

The company considers all short-term investments with original maturities of three months or less when acquired to be cash equivalents. The company’s policy is to invest its excess cash in interest-bearing deposits with major banks that are subject to minimal credit and market risk.

(c)Accounts Receivable

Accounts receivable, as shown in the consolidated balance sheets, are net of allowances for doubtful accounts of $18.8 million and $19.2 million at January 1, 2022 and January 2, 2021, respectively. At January 1, 2022, all accounts receivable are expected to be collected within one year.

(d)    Inventories

Inventories are composed of material, labor and overhead and are stated at the lower of cost or net realizable value. Costs for inventory have been determined using the first-in, first-out ("FIFO") method. The company estimates reserves for inventory obsolescence and shrinkage based on its judgment of future realization. Inventories at January 1, 2022 and January 2, 2021 are as follows (in thousands):

	2021		2020
Raw materials and parts	$	421,361	$	263,200
Work in process	65,581		55,104
Finished goods	350,476		221,894
	$	837,418	$	540,198

(e)Property, Plant and Equipment

Property, plant and equipment are carried at cost as follows (in thousands):

	2021		2020
Land	$	54,477	$	40,707
Building and improvements	270,812		245,435
Furniture and fixtures	56,706		68,063
Machinery and equipment	265,188		220,148
	647,183		574,353
Less accumulated depreciation	(266,203)		(229,871)
	$	380,980	$	344,482

Property, plant and equipment are depreciated or amortized on a straight-line basis over their useful lives based on management's estimates of the period over which the assets will be utilized to benefit the operations of the company. The useful lives are estimated based on historical experience with similar assets, taking into account anticipated technological or other changes. The company periodically reviews these lives relative to physical factors, economic factors and industry trends. If there are changes in the planned use of property and equipment or if technological changes were to occur more rapidly than anticipated, the useful lives assigned to these assets may need to be shortened, resulting in the recognition of increased depreciation and amortization expense in future periods.

Following is a summary of the estimated useful lives:

Description	Life
Building and improvements	20 to 40 years
Furniture and fixtures	3 to 7 years
Machinery and equipment	3 to 10 years

Depreciation expense amounted to $42.7 million, $39.1 million and $37.9 million in fiscal 2021, 2020 and 2019, respectively.

Expenditures which significantly extend useful lives are capitalized. Maintenance and repairs are charged to expense as incurred. Asset impairments are recorded whenever events or changes in circumstances indicate that the recorded value of an asset is greater than the sum of its expected future undiscounted cash flows. Asset impairments are recorded at the amount by which the recorded value of an asset exceeds its fair value.

(f)Goodwill and Other Intangibles

The company’s business acquisitions result in the recognition of goodwill and other intangible assets, which are a significant portion of the company’s total assets. Goodwill represents the excess of acquisition costs over the fair value of the net tangible assets and identifiable intangible assets acquired in a business combination. Identifiable intangible assets are recognized separately from goodwill and include trademarks and trade names, technology, customer relationships and other specifically identifiable assets. Trademarks and trade names are deemed to be indefinite-lived. Goodwill and indefinite-lived intangible assets are not amortized, but are subject to impairment testing.

The company performs the annual impairment assessment for goodwill and indefinite-lived intangible assets as of first day of the fourth quarter of the fiscal year and more frequently if indicators of impairment exist. The goodwill impairment test is performed at the reporting unit level. The company initially performs a qualitative analysis to determine if it is more likely than not that the goodwill balance or indefinite-life intangible asset is impaired. In conducting a qualitative assessment, the company analyzes a variety of events or factors that may influence the fair value of the reporting unit or indefinite-life intangible, including, but not limited to: macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, share price and other relevant factors.

If an indicator of impairment is determined from the qualitative analysis, then the company will perform a quantitative analysis. The fair value of each reporting unit is compared to its carrying value. If the fair value of the reporting unit is less than its carrying value, the resulting difference will be a charge to impairment of goodwill in the Consolidated Statements of Earnings in the period in which the determination is made. Fair value is determined using a combination of present value techniques and market prices of comparable businesses.

The company performed a qualitative assessment as of October 3, 2021 over all three reporting units and determined it is not more likely than not that the fair values of our reporting units are less than the carrying amounts and therefore quantitative analysis is not required. No impairment was recognized and the company has not recognized any goodwill impairments and therefore there are no accumulated impairment losses.

Goodwill is allocated to the business segments as follows (in thousands):

	Commercial Foodservice		Food Processing		Residential Kitchen		Total
Balance as of December 28, 2019	$	1,153,552	$	257,679	$	438,516	$	1,849,747
Goodwill acquired during the year	56,773		—		—		56,773
Measurement period adjustments to goodwill acquired in prior year	(56)		(8,732)		1,770		(7,018)
Exchange effect	18,167		6,851		9,741		34,759
Balance as of January 2, 2021	$	1,228,436	$	255,798	$	450,027	$	1,934,261
Goodwill acquired during the year	63,849		—		266,170		330,019
Measurement period adjustments to goodwill acquired in prior year	2,411		—		—		2,411
Exchange effect	(9,609)		(5,083)		(8,530)		(23,222)
Balance as of January 1, 2022	$	1,285,087	$	250,715	$	707,667	$	2,243,469

Intangible assets consist of the following (in thousands):

	January 1, 2022					January 2, 2021
	Estimated Weighted Avg Remaining Life	Gross Carrying Amount		Accumulated Amortization		Estimated Weighted Avg Remaining Life	Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Customer relationships	7.6	$	863,339	$	(411,327)	8.5	$	735,264	$	(347,029)
Backlog	0.2	13,684		(929)		0.3	5,443		(2,638)
Developed technology	8.9	73,461		(29,952)		10.0	56,931		(24,394)
		$	950,484	$	(442,208)		$	797,638	$	(374,061)
Indefinite-lived intangible assets:
Trademarks and trade names		$	1,367,101				$	1,026,804

The company completed its annual impairment assessment for indefinite-lived intangible assets as of October 3, 2021. Based on this qualitative assessment, the company determined it is not more likely than not that the fair values of our reporting units are less than the carrying amounts and therefore a quantitative impairment analysis was not required.

The estimates of future cash flows used in determining the fair value of goodwill and indefinite-lived intangible assets involve significant management judgment and are based upon assumptions about expected future operating performance, economic conditions, market conditions and cost of capital. Inherent in estimating the future cash flows are uncertainties beyond our control, such as changes in capital markets. The company continues to monitor the global impact of the COVID-19 pandemic to assess the outlook for demand of its products and the impact on its business and financial performance. The actual cash flows could differ materially from management's estimates due to changes in business conditions, operating performance and economic conditions.

During 2020 testing, the company recorded impairment charges of $11.6 million associated with several trade names, none of which were individually material. The company recorded charges of $5.3 million associated with trademarks within the Commercial Foodservice Equipment Group, $5.4 million for the Food Processing Equipment Group and $0.9 million for the Residential Kitchen Equipment Group.

Definite-lived intangible assets are amortized over their estimated useful lives and tested for impairment in accordance with the methodology discussed above under "Property, Plant and Equipment."

The aggregate intangible amortization expense was $75.8 million, $69.0 million and $64.0 million in 2021, 2020 and 2019, respectively. The estimated future amortization expense of intangible assets is as follows (in thousands):

2022	$	95,132
2023	76,386
2024	64,914
2025	58,553
2026	55,277
2027 and thereafter	158,014
	$	508,276

 (g)    Accrued Expenses

Accrued expenses consist of the following at January 1, 2022 and January 2, 2021, respectively (in thousands):

	2021		2020
Contract liabilities	$	133,315	$	93,871
Accrued payroll and related expenses	115,762		93,926
Accrued warranty	80,215		69,667
Accrued customer rebates	72,451		43,703
Accrued short-term leases	22,753		22,493
Accrued sales and other tax	22,684		22,030
Accrued professional fees	19,292		12,133
Accrued agent commission	13,670		11,105
Accrued product liability and workers compensation	10,952		12,909
Accrued interest rate swaps	1,171		14,075
Accrued liabilities held for sale	—		22,313
Other accrued expenses	90,590		76,316
	$	582,855	$	494,541

(h)Litigation Matters

From time to time, the company is subject to proceedings, lawsuits and other claims related to products, suppliers, employees, customers and competitors. The company maintains insurance to partially cover product liability, workers compensation, property and casualty, and general liability matters. The company is required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable losses. A determination of the amount of accrual required, if any, for these contingencies is made after assessment of each matter and the related insurance coverage. The required accrual may change in the future due to new developments or changes in approach such as a change in settlement strategy in dealing with these matters. The company does not believe that any such matter will have a material adverse effect on its financial condition, results of operations or cash flows of the company.

During 2019, we reached a settlement with respect to a lawsuit filed by the company arising from a prior acquisition included our Residential Kitchen Equipment Segment. The gain associated with this settlement, which is net of the release of funds in escrow, is reflected in the consolidated statement of earnings.

(i)Accumulated Other Comprehensive Income (Loss)

The following table summarizes the components of accumulated other comprehensive income (loss) as reported in the consolidated balance sheets (in thousands):

	2021		2020
Unrecognized pension benefit costs, net of tax of $(39,470) and $(89,059)	$	(249,696)	$	(400,919)
Unrealized loss on interest rate swap, net of tax of $(4,501) and $(13,120)	(13,064)		(37,548)
Unrealized gain on certain investments, net of tax of $433 and $—	1,330		—
Currency translation adjustments	(97,654)		(49,961)
	$	(359,084)	$	(488,428)

Changes in accumulated other comprehensive income (loss) (1) were as follows (in thousands):

	Currency Translation Adjustment		Pension Benefit Costs		Unrealized Gain/(Loss) Interest Rate Swap		Unrealized Gain Certain Investments		Total
Balance as of December 28, 2019	$	(105,705)	$	(228,336)	$	(16,892)	$	—	$	(350,933)
Other comprehensive income before reclassification	55,744		(174,826)		(36,170)		—		(155,252)
Amounts reclassified from accumulated other comprehensive income	—		2,243		15,514		—		17,757
Net current-period other comprehensive income	$	55,744	$	(172,583)	$	(20,656)	—		$	(137,495)
Balance as of January 2, 2021	$	(49,961)	$	(400,919)	$	(37,548)	$	—	$	(488,428)
Other comprehensive income before reclassification	(47,693)		137,187		6,015		1,330		96,839
Amounts reclassified from accumulated other comprehensive income	—		14,036		18,469		—		32,505
Net current-period other comprehensive income	$	(47,693)	$	151,223	$	24,484	$	1,330	$	129,344
Balance as of January 1, 2022	$	(97,654)	$	(249,696)	$	(13,064)	$	1,330	$	(359,084)

    (1) As of January 1, 2022 pension, unrealized gain/(loss) interest rate swap and gain on certain investments amounts are net of tax of $(39.5) million, $(4.5) million and $0.4 million, respectively. During the twelve months ended January 1, 2022, the adjustments to pension benefit costs unrealized gain/(loss) interest rate swap and gain on certain investments were net of tax of $49.6 million, $8.6 million and $0.4 million, respectively.

(j)    Fair Value Measures

ASC 820 Fair Value Measurements and Disclosures defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into the following levels:

Level 1 – Quoted prices in active markets for identical assets or liabilities

Level 2 – Inputs, other than quoted prices in active markets, that are observable either directly or indirectly

Level 3 – Unobservable inputs based on our own assumptions

The company’s financial assets and liabilities that are measured at fair value are categorized using the fair value hierarchy at January 1, 2022 and January 2, 2021 are as follows (in thousands):

	Fair Value Level 1		Fair Value Level 2		Fair Value Level 3		Total
As of January 1, 2022
Financial Assets:
Interest rate swaps	$	—	$	3,645	$	—	$	3,645
Foreign exchange derivative contracts	$	—	$	1,095	$	—	$	1,095
Financial Liabilities:
Interest rate swaps	$	—	$	21,635	$	—	$	21,635
Contingent consideration	$	—	$	—	$	34,983	$	34,983
As of January 2, 2021
Financial Liabilities:
Interest rate swaps	$	—	$	51,093	$	—	$	51,093
Contingent consideration	$	—	$	—	$	25,558	$	25,558
Foreign exchange derivative contracts	$	—	$	2,191	$	—	$	2,191

The contingent consideration, as of January 1, 2022 and January 2, 2021, relates to the earnout provisions recorded in conjunction with various purchase agreements.

The earnout provisions associated with these acquisitions are based upon performance measurements related to sales and earnings, as defined in the respective purchase agreements. On a quarterly basis, the company assesses the projected results for each of the acquisitions in comparison to the earnout targets and adjusts the liability accordingly. During fiscal 2021 the increase in contingent consideration was associated with 2021 acquisitions and there were no material performance assumption adjustments.

(k)Foreign Currency

The income statements of the company’s foreign operations are translated at the monthly average rates. Assets and liabilities of the company’s foreign operations are translated at exchange rates at the balance sheet date. These translation adjustments are not included in determining net income for the period but are disclosed and accumulated in a separate component of stockholders’ equity. Exchange gains and losses on foreign currency transactions are included in determining net income for the period in which they occur. These transactions amounted to a gain of $0.3 million, loss of $2.9 million and a loss of $0.9 million in 2021, 2020 and 2019, respectively, and are included in other expense on the statements of earnings.

(l)Shipping and Handling Costs

Fees billed to the customer for shipping and handling are classified as a component of net revenues. Shipping and handling costs are included in cost of products sold.

(m)Warranty Costs

In the normal course of business, the company issues product warranties for specific product lines and provides for the estimated future warranty cost in the period in which the sale is recorded. The estimate of warranty cost is based on contract terms and historical warranty loss experience that is periodically adjusted for recent actual experience. Because warranty estimates are forecasts that are based on the best available information, claims costs may differ from amounts provided. Adjustments to initial obligations for warranties are made as changes in the obligations become reasonably estimable.

A rollforward of the warranty reserve for the fiscal years 2021 and 2020 are as follows (in thousands):

	2021		2020
Beginning balance	$	69,667	$	66,374
Warranty reserve related to acquisitions	5,046		1,485
Warranty expense	68,199		58,047
Warranty claims paid	(62,697)		(56,239)
Ending balance	$	80,215	$	69,667

(n)Research and Development Costs

Research and development costs, included in cost of sales in the consolidated statements of earnings, are charged to expense when incurred. These costs were $41.8 million, $35.3 million and $41.2 million in fiscal 2021, 2020 and 2019, respectively.

(o)Non-Cash Share-Based Compensation

The company's 2021 Stock Incentive Plan (the "2021 Plan"), allows for the granting of stock options, stock appreciation rights, restricted stock and restricted stock units, performance stock, phantom units and other equity-based awards. The company estimates the fair value of restricted stock grants, restricted stock units and performance stock at the time of grant and recognizes compensation costs over the vesting period of the grants. The expense, net of forfeitures, is recognized using the straight-line method. Non-cash share-based compensation expense is only recognized for those grants expected to vest. See Note 6, "Common and Preferred Stock," for further information on the company's share-based incentive plans.

(p)Earnings Per Share

“Basic earnings per share” is calculated based upon the weighted average number of common shares actually outstanding, and “diluted earnings per share” is calculated based upon the weighted average number of common shares outstanding and other dilutive securities.

The company’s potentially dilutive securities consist of shares issuable on exercise of outstanding options and vesting of restricted stock grants computed using the treasury method and amounted to approximately 1,449,000, 43,000, and 9,000 for fiscal 2021, 2020 and 2019, respectively. The company’s potentially dilutive securities consist of shares issuable on vesting of restricted stock grants computed using the treasury method and amounted to approximately 56,000 for fiscal 2021. During fiscal 2021, the average market price of the company's common stock exceeded the exercise price of the Convertible Notes resulting in approximately 1,393,000 diluted stock equivalents to be included in the diluted net earnings per share. There have been no conversions to date. See Note 5, Financing Arrangements, in these Notes to the Consolidated Financial Statements for further details on the Convertible Notes. There were no anti-dilutive equity awards excluded from common stock equivalents for 2021, 2020 or 2019.

(q)Consolidated Statements of Cash Flows

Cash paid for interest was $50.6 million, $65.6 million and $80.9 million in fiscal 2021, 2020 and 2019, respectively. Cash payments totaling $125.8 million, $41.2 million, and $91.5 million were made for income taxes during fiscal 2021, 2020 and 2019, respectively.

(r)New Accounting Pronouncements

Accounting Pronouncements - Recently Adopted

In August 2020, the FASB issued ASU No. 2020-06, “Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging- Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity," which simplifies the accounting for convertible instruments by eliminating the requirement to separate embedded conversion features from the host contract when the conversion features are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital. By removing the separation model, a convertible debt instrument is reported as a single liability instrument with no separate accounting for embedded conversion features. This new standard also removes certain settlement conditions that are required for contracts to qualify for equity classification and simplifies the diluted earnings per share calculations by requiring that an entity use the if-converted method and that the effect of potential share settlement be included in diluted earnings per share calculations. Effective January 3, 2021, the company early adopted ASU 2020-06 using the modified retrospective approach. Adoption of the new standard resulted in an increase to the opening balance of retained earnings of $5.1 million, a decrease to additional paid-in capital of $79.4 million, and an increase to convertible senior notes of $98.4 million. In addition, the company ceased recording non-cash interest expense associated with amortization of the debt discount and calculates earnings per share using the if-converted method to the extent those shares are not anti-dilutive.

In December 2019, the FASB issued ASU 2019-12, "Simplifying the Accounting for Income Taxes (Topic 740)", which removes certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC 740. This guidance is effective for annual reporting periods, and interim periods within those reporting periods, beginning after December 15, 2020 with early adoption permitted. The company adopted this guidance on January 3, 2021, and it did not have a material impact on the company's Consolidated Financial Statements upon adoption.

In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848)," which clarified that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition related to reference rate reform. The amendments in this update were effective immediately for all entities. The adoption of this guidance did not materially impact the company's Consolidated Financial Statements.

Accounting Pronouncements - To be adopted

On May 3, 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. This new standard provides clarification and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (such as warrants) that remain equity classified after modification or exchange. This guidance is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The company is currently evaluating the impacts the adoption of this guidance will have on its Consolidated Financial Statements and disclosures.

In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities About Government Assistance, which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. The new standard is effective for the company on January 2, 2022 and only impacts annual financial statement footnote disclosures. The company is currently evaluating the impacts the adoption of this guidance will have on its Consolidated Financial Statements and disclosures.

XML

Revenue Recognition

12 Months Ended

Jan. 01, 2022

Revenue Recognition [Abstract]

Revenue from Contract with Customer [Text Block]

REVENUE RECOGNITION

Revenue is recognized when the control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services.

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and represents the unit of account. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The company’s contracts can have multiple performance obligations or just a single performance obligation.

For contracts with multiple performance obligations, the contracts transaction price is allocated to each performance obligation using the company’s best estimate of the standalone selling price of each distinct good or service in the contract. As the company’s standard payment terms are less than one year, the company does not assess whether a contract has a significant financing component. The company treats shipping and handling activities performed after the customer obtains control of the good as a contract fulfillment activity. Sales, use and value added taxes assessed by governmental authorities are excluded from the measurement of the transaction price within the company’s contracts with its customers. The company generally expenses sales commissions when incurred because the amortization period would have been less than one year. These costs are recorded within selling, general and administrative expenses.

Within the Commercial Foodservice Equipment and Residential Foodservice Equipment Groups, the estimated standalone selling price of equipment is based on observable prices. Within the Food Processing Equipment Group, the company estimates the standalone selling price based on expected cost to manufacture the good or complete the service plus an appropriate profit margin.

Control may pass to the customer over time or at a point in time. In general, the Commercial Foodservice Equipment and Residential Foodservice Equipment Groups recognize revenue at the point in time control transfers to their customers based on contractual shipping terms. Revenue from equipment sold under our long-term contracts within the Food Processing Equipment group is recognized over time as the equipment is manufactured and assembled. Installation services provided in connection with the delivery of the equipment are also generally recognized as those services are rendered. Over time transfer of control is measured using an appropriate input measure (e.g., costs incurred or direct labor hours incurred in relation to total estimate). These measures include forecasts based on the best information available and therefore reflect the company's judgment to faithfully depict the transfer of the goods.

Contract Estimates

Accounting for long-term contracts within the Food Processing Equipment group involves the use of various techniques to estimate total contract revenue and costs. For the company’s long-term contracts, estimated profit for the equipment performance obligations is recognized as the equipment is manufactured and assembled. Profit on the equipment performance obligations is estimated as the difference between the total estimated revenue and expected costs to complete a contract. Contract cost estimates are based on labor productivity and availability, the complexity of the work to be performed; the cost and availability of materials and labor, and the performance of subcontractors. The company does not disclose information about remaining performance obligations that have original expected durations of one year or less.

Contracts within the Commercial Foodservice and Residential Foodservice Equipment groups may contain variable consideration in the form of volume rebate programs. The company’s estimate of variable consideration is based on its experience with similarly situated customers using the portfolio approach.

Disaggregation of Revenue

We disaggregate our net sales by reportable operating segment and geographical location as we believe it best depicts how the nature, timing and uncertainty of our net sales and cash flows are affected by economic factors. In general, the Commercial Foodservice Equipment and Residential Foodservice Equipment Groups recognize revenue at the point in time control transfers to their customers based on contractual shipping terms. Revenue from equipment sold under our long-term contracts within the Food Processing Equipment group is recognized over time as the equipment is manufactured and assembled. The following table summarizes our net sales by reportable operating segment and geographical location (in thousands):

	Commercial  Foodservice		Food Processing		Residential Kitchen		Total
Twelve Months Ended January 1, 2022
United States and Canada	$	1,435,120	$	347,280	$	454,375	$	2,236,775
Asia	204,432		17,641		11,154		233,227
Europe and Middle East	344,273		77,671		265,508		687,452
Latin America	48,936		38,154		6,248		93,338
Total	$	2,032,761	$	480,746	$	737,285	$	3,250,792
Twelve Months Ended January 2, 2021
United States and Canada	$	1,067,872	$	311,042	$	373,864	$	1,752,778
Asia	155,742		26,778		6,711		189,231
Europe and Middle East	246,845		78,690		182,919		508,454
Latin America	39,820		20,762		2,212		62,794
Total	$	1,510,279	$	437,272	$	565,706	$	2,513,257
Twelve Months Ended December 28, 2019
United States and Canada	$	1,334,776	$	246,572	$	362,753	$	1,944,101
Asia	221,422		31,250		5,760		258,432
Europe and Middle East	349,613		98,814		198,672		647,099
Latin America	78,534		24,315		6,965		109,814
Total	$	1,984,345	$	400,951	$	574,150	$	2,959,446

Contract Balances

Contract assets primarily relate to the company's right to consideration for work completed but not billed at the reporting date and are recorded in prepaid expenses and other in the Consolidated Balance Sheet. Contract assets are transferred to receivables when the right to consideration becomes unconditional.

Contract liabilities relate to advance consideration received from customers for which revenue has not been recognized. Current contract liabilities are recorded in accrued expenses in the Consolidated Balance Sheet. Non-current contract liabilities are recorded in other non-current liabilities in the Consolidated Balance Sheet. Contract liabilities are reduced when the associated revenue from the contract is recognized.

The following table provides information about contract assets and contract liabilities from contracts with customers (in thousands):

	January 1, 2022		January 2, 2021
Contract assets	$	21,592	$	20,328
Contract liabilities	$	133,315	$	93,871
Non-current contract liabilities	$	11,602	$	13,523

During the twelve months period ended January 1, 2022, the company reclassified $16.3 million to accounts receivable which was included in the contract asset balance at the beginning of the period. During the twelve months period ended January 1, 2022, the company recognized revenue of $77.3 million which was included in the contract liability balance at the beginning of the period. Additions to contract liabilities representing amounts billed to clients in excess of revenue recognized to date were $129.0 million during the twelve months period ended January 1, 2022. Substantially all of the company's outstanding performance obligations will be satisfied within 12 to 36 months. There were no contract asset impairments during twelve months period ended January 1, 2022.

XML

Financing Arragements

12 Months Ended

Jan. 01, 2022

Debt Disclosure [Abstract]

Financing Arrangements

FINANCING ARRANGEMENTS

	2021		2020
	(in thousands)
Senior secured revolving credit line	$	683,175	$	755,000
Term loan facility	993,340		335,938
Convertible senior notes	734,417		632,847
Foreign loans	2,224		4,421
Other debt arrangement	1,138		1,390
Total debt	2,414,294		1,729,596
Less:  Current maturities of long-term debt	27,293		22,944
Long-term debt	$	2,387,001	$	1,706,652

On October 21, 2021, the company entered into an amended and restated five-year, $4.5 billion multi-currency senior secured credit agreement (the "Credit Facility") that amends and restates the company's pre-existing $3.1 billion credit facility which had an original maturity of January 31, 2025. The Credit Facility consists of (i) a $1 billion term loan facility, (ii) a $750 million delayed draw term loan facility, and (iii) a $2.75 billion multi-currency revolving credit facility, with the potential under certain circumstances, to increase the amount of the credit facility by the greater of $625 million and 100% of consolidated EBITDA for the most recently ended period of consecutive fiscal quarters (plus additional amounts, subject to compliance with a senior secured net leverage ratio), either by increasing the revolving commitment or by adding one or more revolver or term loan tranches. The Credit Facility matures on October 21, 2026, with the potential to extend the maturity date in one year increments with the consent of the extending lenders. The term facility will amortize in equal quarterly installments due on the last day of each fiscal quarter, commencing with the first full fiscal quarter after October 21, 2021, in an aggregate amount equal to 2.50% of the original aggregate principal amount of the term loan facility, with the balance, plus any accrued interest, due and payable on October 21, 2026. The delayed draw term loan facility is available for borrowing within one year and will amortize in quarterly installments due on the last day of each fiscal quarter, commencing with the first full fiscal quarter after each delayed draw term loan borrowing in an amount equal to 0.625% of the original aggregate principal amount of such borrowing, with the balance, plus any accrued interest, due and payable on October 21, 2026. Fees associated with the amendment of the term loan facilities are recorded as a direct deduction from the related debt liability in the Consolidated Balance Sheets and amortized to interest expense over the term of the Credit Facility.

On August 21, 2020, the company issued $747.5 million aggregate principal amount of 1.00% Convertible Senior Notes due 2025 in a private offering pursuant to an indenture, dated August 21, 2020 (the "Indenture"), between the company and U.S. Bank National Association, as trustee. The net proceeds from the sale of the Convertible Notes were approximately $729.9 million after deducting the initial purchasers' discounts and the offering expenses payable by the company. In connection with the pricing of the Convertible Notes, the company entered into privately negotiated Capped Call Transactions (the "2020 Capped Call Transactions") and the company used the net proceeds of the offering of the Convertible Notes to pay the aggregate amount of $104.7 million for them.

In December 2021, the company entered into two tranches of privately negotiated Capped Call Transactions (the "2021 Capped Call Transactions") in the aggregate amount of $54.6 million. The 2020 and 2021 Capped Call Transactions initially cover, subject to customary anti-dilution adjustments, the number of shares of the company's common stock that underlie the Convertible Notes.

Credit Facility

As of January 1, 2022, the company had $1.7 billion of borrowings outstanding under the Credit Facility, including $1.0 billion outstanding under the term loan ($993 million, net of unamortized issuance fees). The company also had $2.7 million in outstanding letters of credit as of January 1, 2022, which reduces the borrowing availability under the Credit Facility. Remaining borrowing capacity under this facility was $2.8 billion at January 1, 2022.

At January 1, 2022, borrowings under the Credit Facility accrued interest at a rate of 1.375% above LIBOR per annum or 0.375% above the highest of the prime rate, the federal funds rate plus 0.50% and one month LIBOR plus 1.00%. The interest rates on borrowings under the Credit Facility may be adjusted quarterly based on the company’s Funded Debt less Unrestricted Cash to Pro Forma EBITDA (the “Leverage Ratio”) on a rolling four-quarter basis. Additionally, a commitment fee based upon the Leverage Ratio is charged on the unused portion of the commitments under the Credit Facility. Borrowings under the Credit Facility will accrue interest at a minimum of 1.375% above LIBOR and the variable unused commitment fee will be at a minimum of 0.20%. The average interest rate per annum, inclusive of hedging instruments, on the debt under the Credit Facility was equal to 2.32% at the end of the period and the variable commitment fee was equal to 0.20% per annum as of January 1, 2022.

The term loan facility had an average interest rate per annum, inclusive of hedging instruments, of 2.93% as of January 1, 2022.

In addition, the company has international credit facilities to fund working capital needs outside the United States. At January 1, 2022, these foreign credit facilities amounted to $2.2 million in U.S. Dollars with a weighted average per annum interest rate of approximately 10.18%.

The company’s debt is reflected on the balance sheet at cost. The fair values of the Credit Facility, term debt and foreign and other debt is based on the amount of future cash flows associated with each instrument discounted using the company's incremental borrowing rate. The company believes its interest rate margins on its existing debt are consistent with current market conditions and therefore the carrying value of debt reflects the fair value. The interest rate margin is based on the company's Leverage Ratio. The carrying value and estimated aggregate fair value, a level 2 measurement, based primarily on market prices, of debt excluding the Convertible Notes is as follows (in thousands):

	Jan 1, 2022				Jan 2, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
Total debt excluding convertible senior notes	$	1,679,877	$	1,686,537	$	1,096,749	$	1,096,749

The company uses floating-to-fixed interest rate swap agreements to hedge variable interest rate risk associated with the Credit Facility. At January 1, 2022, the company had outstanding floating-to-fixed interest rate swaps totaling $94.0 million notional amount carrying an average interest rate of 1.45% maturing in less than 12 months and $708.0 million notional amount carrying an average interest rate of 1.98% that mature in more than 12 months but less than 63 months. In February 2022, subsequent to year end fiscal 2021, the company entered into an additional floating-to-fixed interest rate swap agreements totaling $375.0 million notional amount carrying an average interest rate of 1.50%.

The terms of the Credit Facility, as amended, limit the ability of the company and its subsidiaries to, with certain exceptions: incur indebtedness; grant liens; engage in certain mergers, consolidations, acquisitions and dispositions; make restricted payments; enter into certain transactions with affiliates; and requires, among other things, the company to satisfy certain financial covenants: (i) a minimum Interest Coverage Ratio (as defined in the Credit Facility) of 3.00 to 1.00, (ii) a maximum Secured Leverage Ratio (as defined in the Credit Facility) of Funded Debt less Unrestricted Cash to Pro Forma EBITDA (each as defined in the Credit Facility) of 3.75 to 1.00, which may be adjusted to 4.25 to 1.00 for a four consecutive fiscal quarter period in connection with certain qualified acquisitions, subject to the terms and conditions contained in the Credit Facility. The Credit Facility is secured by substantially all of the assets of Middleby Marshall, the company and the company's domestic subsidiaries and is unconditionally guaranteed by, subject to certain exceptions, the company and certain of the company's direct and indirect material foreign and domestic subsidiaries. The Credit Facility contains certain customary events of default, including, but not limited to, the failure to make required payments; bankruptcy and other insolvency events; the failure to perform certain covenants; the material breach of a representation or warranty; non-payment of certain other indebtedness; the entry of undischarged judgments against the company or any subsidiary for the payment of material uninsured amounts; the invalidity of the company guarantee or any subsidiary guaranty; and a change of control of the company. At January 1, 2022, the company was in compliance with all covenants pursuant to its borrowing agreements.

Convertible Notes

The following table summarizes the outstanding principal amount and carrying value of the Convertible Notes:

	Jan 1, 2022		Jan 2, 2021
	(in thousands)
Principal amounts:
Principal	$	747,500	$	747,500
Unamortized debt discount	—		(98,358)
Unamortized issuance costs	(13,083)		(16,295)
Net carrying amount	$	734,417	$	632,847

The following table summarizes total interest expense recognized related to the Convertible Notes:

	Twelve Months Ended
	Jan 1, 2022		Jan 2, 2021
Contractual interest expense	$	7,454	$	2,720
Interest cost related to amortization of the debt discount and issuance costs	3,484		7,971
Total interest expense	$	10,938	$	10,691

The estimated fair value of the Convertible Notes was $1.2 billion as of January 1, 2022 and was determined through consideration of quoted market prices. The fair value is classified as Level 2, as defined in Note 3 (j), Fair Value Measurements, in these Notes to the Consolidated Financial Statements included in this Part II, Item 8 of this Annual Report on Form 10-K. The if-converted value of the Convertible Notes exceeded their respective principal value by $396.0 million as of January 1, 2022.

The Convertible Notes are general unsecured obligations of the company. The Convertible Notes rank senior in right of payment to any of the company’s future indebtedness that is expressly subordinated in right of payment to the Convertible Notes; rank equal in right of payment to the company’s existing and future unsecured indebtedness that is not so subordinated; are effectively subordinated in right of payment to any of the company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and are structurally subordinated to all existing and future indebtedness and liabilities of the company’s subsidiaries.

The company initially separated the Convertible Notes into liability and equity components. The equity component of the Convertible Notes of approximately $105.0 million was included in the additional paid-in capital and the resulting debt discount was being amortized to interest expense at an effective interest rate of 1.5%, which is no longer applicable upon adoption of ASU 2020-06 as discussed in Note 3 to the Consolidated Financial Statement.

The Convertible Notes were issued pursuant to the Indenture and bear interest semi-annually in arrears at a rate of 1.00% per annum on March 1 and September 1 of each year. The Convertible Notes are convertible based upon an initial conversion rate of 7.7746 shares of the company's common stock per $1,000 principal amount of the Convertible Notes, which is equivalent to an initial conversion price of approximately $128.62 per share of the company's common stock. The conversion rate will be subject to adjustment upon occurrence of certain specified events in accordance with the Indenture, but will not be adjusted for accrued and unpaid interest. Additionally, in the event of a Fundamental Change (as defined in the Indenture), holders of the Convertible Notes may require the company to repurchase all or a portion of their Convertible Notes at a price equal to 100.0% of the principal amount of Convertible Notes, plus any accrued and unpaid interest to, but excluding, the repurchase date. Upon conversion, the company will pay cash up to the aggregate principal amount of the Convertible Notes to be converted and pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the company's election, in respect of the remainder, if any, of the company's conversion obligation in excess of the aggregate principal amount of the notes being converted.

The Convertible Notes will mature on September 1, 2025 unless they are redeemed, repurchased or converted prior to such date in accordance with their terms. Prior to the close of business on the business day immediately preceding June 1, 2025, the notes will be convertible at the option of the holders only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on January 2, 2021 (and only during such fiscal quarter), if the last reported sale price of the company's common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130.0% of the conversion price for the Convertible Notes on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period in which the trading price per $1,000 principal amount of the Convertible Notes for each trading day of that ten consecutive trading day period was less than 98.0% of the product of the last reported sale price of the company's common stock and the conversion rate of the Convertible Notes on each such trading day; (3) if the company calls such Convertible Notes for redemption; or (4) upon the occurrence of specified corporate events. On or after June 1, 2025, the notes will be convertible at the option of the holders at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Holders of the Convertible Notes who convert in connection with a Make-Whole Fundamental Change or during a Redemption Period (each as defined in the Indenture) will be, under certain circumstances, entitled to an increase in the conversion rate.

The company may settle the conversions of the Convertible Notes in cash, shares of the company's common stock or any combination thereof at its election. The number of shares of the company's common stock issuable at the conversion price of $128.62 per share is expected to be 5.8 million shares. However, the Capped Call Transactions are expected generally to reduce the potential dilution of the company's common stock upon any conversion of Convertible Notes and/or offset the cash payments the company is required to make in excess of the principal amount of the Notes. Under the 2020 Capped Call Transactions, the number of shares of common stock issuable at the conversion price of $207.93 is expected to be 3.6 million shares. Under the 2021 Capped Call Transactions, the number of shares of common stock issuable at the conversion prices of $216.50 and $225.00 is expected to be 3.5 million shares and 3.3 million shares, respectively. During the twelve months period ended January 1, 2022, no Convertible Notes have been converted to date.

The company may redeem all or any portion of the Convertible Notes, at its option, on or after September 5, 2023 and prior to the 41st scheduled trading day immediately preceding the maturity date, at a redemption price equal to 100.0% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest thereon, if the last reported sales price of the company's common stock has been at least 130.0% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the company provides written notice of redemption.

The Indenture includes customary terms and covenants, including certain events of default after which the Convertible Notes may become due and payable immediately.

Capped Call Transactions

The 2020 Capped Call Transactions and 2021 Capped Call Transactions (collectively, the "Capped Call Transactions") are expected generally to reduce the potential dilution and/or offset the cash payments the company is required to make in excess of the principal amount of the Convertible Notes upon conversion of the Convertible Notes in the event that the market price per share of the company's common stock is greater than the strike price of the Capped Call Transactions (which initially corresponds to the initial conversion price of the Convertible Notes and is subject to certain adjustments under the terms of the Capped Call Transactions), with such reduction and/or offset subject to a cap based on the cap price of the Capped Call Transactions. The 2020 Capped Call Transactions have an initial cap price of $207.93 per share of the company's common stock. The 2021 Capped Call Transactions have initial cap prices of $216.50 and $225.00 per share of the company's common stock. The Capped Call Transactions cover, initially, the number of shares of the company's common stock underlying the Convertible Notes, subject to anti-dilution adjustments substantially similar to those applicable to the Convertible Notes.

The Capped Call Transactions are separate transactions entered into by the company with the capped call counterparties, and are not part of the terms of the Convertible Notes and will not affect any holder's right under the Convertible Notes. Holders of the Convertible Notes will not have any rights with respect to the Capped Call Transactions. The Capped Call Transactions do not meet the criteria for separate accounting as a derivative as they are indexed to the company's stock. The premiums paid of the Capped Call Transactions have been included as a net reduction to additional paid-in capital with stockholders' equity.

The aggregate amount of debt payable during each of the next five years is as follows (in thousands):

2022	$	27,293
2023	23,621
2024	23,634
2025	757,945
2026 and thereafter	1,581,801
	$	2,414,294

XML

Common and Preferred Stock

12 Months Ended

Jan. 01, 2022

Stockholders' Equity Note [Abstract]

Common and Preferred Stock

COMMON AND PREFERRED STOCK

(a)    Shares Authorized

At January 1, 2022 and January 2, 2021, the company had 95,000,000 authorized shares of common stock and 2,000,000 authorized shares of non-voting preferred stock.

(b)    Treasury Stock

In November 2017, the company's Board of Directors approved a stock repurchase program authorizing the company to repurchase in the aggregate up to 2,500,000 shares of its outstanding common stock. During 2020, the company repurchased 896,965 shares of its common stock under the program for $69.7 million, including applicable commissions, which represented an average price of $77.70. During 2021, the company repurchased 141,500 shares of its common stock under the program for $26.6 million, including applicable commissions, which represented an average price of $188.17. As of January 1, 2022, 1,164,665 shares had been purchased under the 2017 stock repurchase program and 1,335,335 remain authorized for repurchase.

The company also treats shares withheld for tax purposes on behalf of employees in connection with the vesting of restricted share grants as common stock repurchases because they reduce the number of shares that would have been issued upon vesting. During 2020, the company repurchased 176,242 shares of its common stock that were surrendered to the company for withholding taxes related to restricted stock vestings for $16.2 million. During 2021, the company repurchased 15,480 shares of its common stock that were surrendered to the company for withholding taxes related to restricted stock vestings for $2.7 million.   

(c)    Share-Based Awards

The company maintains an incentive plan under which the company's Board of Directors grants share-based awards to key employees. On May 10, 2021, the 2021 Stock Incentive Plan (the "2021 Plan") was approved, which included a maximum amount of 1,350,000 shares allowed to be awarded plus the shares remaining for future grants under the 2011 Stock Incentive Plan (the "2011 Plan") as of the approval date and any shares outstanding that are subsequently forfeited or expired. Thus, no further shares are available to grant under the 2011 Plan and the maximum amount of shares available for future grants under the 2021 Plan as of January 1, 2022 is 1,642,966.

Non-cash share-based compensation of $42.3 million, $19.6 million and $8.1 million was recognized for fiscal 2021, 2020 and 2019, respectively, associated with restricted share grants and restricted stock units. The company recorded a related tax benefit of $0.4 million, $2.7 million and less than $0.5 million in fiscal 2021, 2020 and 2019, respectively.

Restricted share grants:

The company has issued restricted share grant awards, which are generally time and performance based and were not subject to market conditions. The fair value of restricted share grants represents the closing share price of the company's stock as of the date of the grant and is recognized over the vesting period of the awards. The weighted average grant date fair value was $181.31, $57.74 and $113.26 per share for restricted share grants in fiscal 2021, 2020 and 2019 respectively, which represents the closing share price of the company’s stock as of the date of grant. The approximate fair value of restricted shares vested were $7.3 million, $44.8 million, $16.5 million for fiscal 2021, 2020 and 2019, respectively.

A summary of the company’s nonvested restricted share grant activity and their corresponding fair value on the date of grant for fiscal year ended January 1, 2022 is as follows:

 

	Shares	Weighted Average Grant-Date Fair Value
Nonvested shares at January 2, 2021	433,065	$	112.54
Granted	4,399	181.31
Vested	(43,485)	115.77
Forfeited	(213,673)	112.49
Nonvested shares at January 1, 2022	180,306	$	113.31

As of January 1, 2022, there was $3.7 million of total unrecognized compensation cost related to nonvested restricted share grant compensation arrangements, if all performance conditions are fully achieved. The remaining weighted average life is 0.34 years.    

Restricted stock units:

During 2020, the company began granting restricted stock units, which entitle the holder to shares of common stock subject to time vesting and the achievement of certain market and performance goals. The fair value for time based units are valued at the closing share price of the company’s stock as of the date of the grant and the fair value for performance units are based upon valuations using the Monte Carlo Methodology. Compensation expense is recognized over the performance measurement period of the units in accordance with ASC 718 Stock Compensation for awards with market and performance vesting conditions.

Time vesting units vest equally over two or three years and performance units vest based on achievement of certain company performance criteria over the two or three year period, as set forth in the grant agreement ranging from 0 to 200% of the target shares granted. The weighted average grant date fair value was $166.41 and $134.25 per share for restricted stock units in fiscal 2021 and 2020, respectively. No restricted stock units have vested.

A summary of the company’s nonvested restricted stock unit activity at target shares and their corresponding fair value on the date of grant for fiscal year ended January 1, 2022 is as follows:

	Units	Weighted Average Grant-Date Fair Value
Nonvested shares at January 2, 2021	47,500	$	134.25
Granted	287,624	166.41
Nonvested shares at January 1, 2022	335,124	$	161.85

As of January 1, 2022, there was $66.2 million of total unrecognized compensation cost related to nonvested restricted stock unit compensation arrangements, if all performance conditions are fully achieved. The remaining weighted average life is 1.74 years.

XML

Income Taxes

12 Months Ended

Jan. 01, 2022

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Earnings before taxes is summarized as follows (in thousands):

	2021		2020		2019
Domestic	$	453,357	$	178,813	$	336,688
Foreign	166,147		89,244		125,931
Total	$	619,504	$	268,057	$	462,619

The provision for income taxes is summarized as follows (in thousands):

	2021		2020		2019
Federal	$	84,689	$	36,908	$	69,074
State and local	24,363		8,815		16,203
Foreign	21,960		15,040		25,102
Total	$	131,012	$	60,763	$	110,379
Current	$	124,149	$	44,342	$	88,167
Deferred	6,863		16,421		22,212
Total	$	131,012	$	60,763	$	110,379

Reconciliation of the differences between income taxes computed at the federal statutory rate to the effective rate are as follows:

	2021		2020		2019
U.S. federal statutory tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	3.1		3.2		3.2
Permanent differences	0.5		(0.4)		0.6
Foreign income tax rate at rates other than U.S. statutory	0.2		0.5		0.2
Deferred tax changes	(2.2)		(0.7)		—
Tax refunds	(0.7)		—		—
Change in valuation allowances (1)	0.4		(0.1)		0.1
Tax on unremitted earnings	0.4		1.2		0.3
Other	(1.6)		(2.0)		(1.5)
Consolidated effective tax	21.1	%	22.7	%	23.9	%

(1) Net of changes in related tax attributes.

The company’s effective tax rate for 2021 was 21.1% as compared to 22.7% in 2020. The effective tax rate for 2021 reflects favorable tax adjustments for deferred tax rate changes, tax refunds and adjustments for the finalization of 2020 tax returns. The effective tax rate is higher than the federal tax rate of 21.0% primarily due to state taxes and foreign tax rate differentials.

At January 1, 2022 and January 2, 2021, the company had recorded the following deferred tax assets and liabilities (in thousands):

	2021		2020
Deferred tax assets:
Compensation related	$	21,543	$	12,328
Pension and post-retirement benefits	49,072		88,709
Inventory reserves	14,453		14,732
Accrued liabilities and reserves	17,088		22,049
Warranty reserves	19,286		17,890
Operating lease liability	18,643		16,180
Interest rate swaps	4,573		12,997
Convertible debt	37,034		—
Net operating loss carryforwards	17,083		20,747
Other	12,695		17,187
Gross deferred tax assets	211,470		222,819
Valuation allowance	(10,222)		(11,731)
Deferred tax assets	$	201,248	$	211,088
Deferred tax liabilities:
Intangible assets	$	(273,974)	$	(226,598)
Depreciable assets	(26,996)		(26,916)
Basis difference on affiliates	(18,795)		—
Operating lease right-of-use assets	(18,029)		(15,921)
Other	(17,195)		(12,825)
Deferred tax liabilities	$	(354,989)	$	(282,260)
Net deferred tax assets (liabilities)	$	(153,741)	$	(71,172)
Long-term deferred asset	33,194		76,052
Long-term deferred liability	(186,935)		(147,224)
Net deferred tax assets (liabilities)	$	(153,741)	$	(71,172)

The company has recorded tax reserves on undistributed foreign earnings not permanently reinvested of $9.7 million and $7.5 million at January 1, 2022 and January 2, 2021, respectively. No further provisions were made for income taxes that may result from future remittances of undistributed earnings of foreign subsidiaries that are determined to be permanently reinvested, which were $538.0 million on January 1, 2022. Determination of the total amount of unrecognized deferred income taxes on undistributed earnings net of foreign subsidiaries is not practicable.

The company has a deferred tax asset on net operating loss carryforwards totaling $17.1 million as of January 1, 2022. These net operating losses are available to reduce future taxable earnings of certain domestic and foreign subsidiaries. United States federal loss carryforwards total $29.0 million of which $5.6 million will expire through 2036 and $23.4 million have no expiration date. State loss carryforwards total $34.2 million and expire through 2040 and international loss carryforwards total $44.7 million and expire through 2038; however, some have no expiration date. Of these carryforwards, $33.4 million are subject to full valuation allowance.

As of January 1, 2022, the total amount of liability for unrecognized tax benefits related to federal, state and foreign taxes was approximately $36.2 million (of which $36.2 million would impact the effective tax rate if recognized) plus approximately $7.1 million of accrued interest and $6.0 million of penalties. The company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. Interest recognized in fiscal years 2021, 2020 and 2019 was $0.9 million, $0.8 million and $0.4 million, respectively. Penalties recognized in fiscal years 2021, 2020 and 2019 was $(1.0) million, $(0.2) million and $(0.9) million, respectively.

Although the company believes its tax returns are correct, the final determination of tax examinations may be different than what was reported on the tax returns. In the opinion of management, adequate tax provisions have been made for the years subject to examination.

The following table summarizes the activity related to the unrecognized tax benefits for the fiscal years ended December 28, 2019, January 2, 2021 and January 1, 2022 (in thousands):

Balance at December 28, 2019	$	31,559
Increases to current year tax positions	3,657
Increase to prior year tax positions	183
Decrease to prior year tax positions	(53)
Settlements	(533)
Lapse of statute of limitations	(4,484)
Balance at January 2, 2021	$	30,329
Increases to current year tax positions	1,760
Increase to prior year tax positions	6,796
Decrease to prior year tax positions	(576)
Settlements	(1,180)
Lapse of statute of limitations	(920)
Balance as of January 1, 2022	$	36,209

It is reasonably possible that the amounts of unrecognized tax benefits associated with state, federal and foreign tax positions may decrease over the next twelve months due to expiration of a statute or completion of an audit. The company believes that it is reasonably possible that $3.8 million of its remaining unrecognized tax benefits may be recognized by the end of 2022 as a result of settlements with taxing authorities or lapses of statutes of limitations.

In the normal course of business, income tax authorities in various income tax jurisdictions both in the United States and internationally conduct routine audits of our income tax returns filed in prior years. These audits are generally designed to determine if individual income tax authorities are in agreement with our interpretations of complex tax regulations regarding the allocation of income to the various income tax jurisdictions. Income tax years are open from 2017 through the current year for the United States federal jurisdiction. Income tax years open for our other major jurisdictions range from 2016 through the current year.

XML

Financial Instruments

12 Months Ended

Jan. 01, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments

FINANCIAL INSTRUMENTS

Derivatives are measured at fair value and recognized as either assets or liabilities. Derivatives that do not qualify as a hedge must be adjusted to fair value in earnings. If a derivative does qualify, changes in the fair value will either be offset against the change in the fair value of the hedged assets, liabilities or firm commitments or recognized in other accumulated comprehensive income until the hedged item is recognized in earnings.

(a)Foreign Exchange

The company periodically enters into derivative instruments, principally forward contracts to reduce exposures pertaining to fluctuations in foreign exchange rates. The notional amount of foreign currency contracts outstanding was $350.5 million and $155.6 million as of January 1, 2022 and January 2, 2021, respectively. The fair value of these forward contracts was an unrealized gain of $1.1 million at the end of the year.

(b)Interest Rate

The company has entered into interest rate swaps to fix the interest rate applicable to certain of its variable-rate debt. The agreements swap one-month LIBOR for fixed rates. The company has designated these swaps as cash flow hedges and all changes in fair value of the swaps are recognized in accumulated other comprehensive income. The fair value of these instruments was a liability of $18.0 million and $51.1 million as of January 1, 2022 and January 2, 2021, respectively. The change in fair value of these swap agreements in 2021 was a gain of $24.6 million, net of taxes.

A summary of the company’s interest rate swaps is as follows (in thousands):

		Twelve Months Ended
	Location	Jan 1, 2022		Jan 2, 2021
Fair value	Other assets	$	3,645	$	—
Fair value	Accrued expenses	$	1,171	$	14,075
Fair value	Other non-current liabilities	$	20,464	$	37,018
Amount of gain/(loss) recognized in other comprehensive income	Other comprehensive income	$	14,634	$	(43,317)
Gain/(loss) reclassified from accumulated other comprehensive income (effective portion)	Interest expense	$	(18,469)	$	(15,514)

Interest rate swaps are subject to default risk to the extent the counterparty is unable to satisfy its settlement obligations under the interest rate swap agreements. The company reviews the credit profile of the financial institutions that are counterparties to such swap agreements and assesses their creditworthiness prior to entering into the interest rate swap agreements and throughout the term. The interest rate swap agreements typically contain provisions that allow the counterparty to require early settlement in the event that the company becomes insolvent or is unable to maintain compliance with its covenants under its existing debt agreement.

XML

Lease Commitments

12 Months Ended

Jan. 01, 2022

Leases [Abstract]

Lessee, Operating Leases

LEASE COMMITMENTS

Accounting Policy

At the commencement date of a lease, the company recognizes a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. The lease liability is measured at the present value of lease payments over the lease term, including variable fees that are known or subject to a minimum floor. The lease liability includes lease component fees, while non-lease component fees are expensed as incurred for all asset classes. The company's lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. When a contract excludes an implicit rate, the company utilizes an incremental borrowing rate based on information available at the lease commencement date including lease term and geographic region. The initial valuation of the right-of-use (“ROU”) asset includes the initial measurement of the lease liability, lease payments made in advance of the lease commencement date and initial direct costs incurred by the company and excludes lease incentives. Operating lease ROU assets are included in other assets and operating lease liabilities are included accrued expenses and other non-current liabilities.

Leases with an initial term of 12 months or less are classified as short-term leases and are not recorded on the Consolidated Balance Sheets. The lease expense for short-term leases is recognized on a straight-line basis over the lease term.

Leases

The company leases warehouse space, office facilities and equipment under operating leases. The company has operating lease costs of $31.5 million, $30.1 million and $30.6 million in fiscal 2021, 2020 and 2019 respectively, including short-term lease expense and variable lease costs, which were immaterial in the year.

Leases (in thousands)	January 1, 2022		January 2, 2021
Operating lease right-of-use assets:
Other assets	$	93,388	$	97,193
Operating lease liabilities:
Accrued expenses	22,753		22,493
Other non-current liabilities	74,202		76,529
Total Liability	$	96,955	$	99,022

Total Lease Commitments (in thousands)	Operating Leases
2022	$	24,903
2023	21,458
2024	17,588
2025	12,581
2026	10,122
2027 and thereafter	19,062
Total future lease commitments	105,714
Less imputed interest	8,759
Total	$	96,955

Other Lease Information (in thousands, except lease term and discount rate)	Twelve Months Ended January 1, 2022			Twelve Months Ended January 2, 2021
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	25,957		$	26,024
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	16,353			25,433
	January 1, 2022			January 2, 2021
Weighted-average remaining lease terms - Operating	5.6 years			6.0 years
Weighted-average discount rate - Operating	2.8		%	3.0		%

XML

Segment Information

12 Months Ended

Jan. 01, 2022

Segment Reporting [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 foodservice equipment for the restaurant and institutional kitchen industry. The Food Processing Equipment Group manufactures preparation, cooking, packaging food handling and food safety equipment for the food processing industry. The Residential Kitchen Equipment Group manufactures, sells and distributes kitchen equipment for the residential market.

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.

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
2021
Net sales	$	2,032,761	$	480,746	$	737,285	$	—	$	3,250,792
Income (loss) from operations(3,4,7)	423,121		94,414		124,701		(12,244)		629,992
Depreciation expense	23,814		5,601		12,655		611		42,681
Amortization expense (5)	56,910		7,247		11,628		6,777		82,562
Net capital expenditures	26,507		9,111		9,232		1,701		46,551
Total assets	3,522,630		637,252		2,153,758		69,958		6,383,598
Long-lived assets (6)	292,593		54,934		169,028		41,112		557,667
2020
Net sales	$	1,510,279	$	437,272	$	565,706	$	—	$	2,513,257
Income (loss) from operations (3,7)	239,625		78,008		67,046		(60,248)		324,431
Depreciation expense	21,768		5,507		11,691		120		39,086
Amortization expense (5)	51,985		7,319		9,657		2,485		71,446
Net capital expenditures	25,463		3,427		4,801		1,158		34,849
Total assets	3,249,441		617,171		1,221,229		114,633		5,202,474
Long-lived assets (6)	279,481		55,069		192,940		19,849		547,339
2019
Net sales	$	1,984,345	$	400,951	$	574,150	$	—	$	2,959,446
Income (loss) from operations (3,8)	429,946		68,935		89,312		(74,150)		514,043
Depreciation expense	21,054		4,944		11,742		112		37,852
Amortization expense (5)	45,906		8,162		9,896		1,612		65,576
Net capital expenditures	29,353		6,683		9,168		1,405		46,609
Total assets	3,188,304		621,619		1,157,211		35,009		5,002,143
Long-lived assets (6)	261,466		57,403		176,834		4,116		499,819

(1)Non-operating expenses are not allocated to the reportable 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 and impairments are included in operating income of the segment to which they pertain. See note 3(f) and 12 for further details.

(4)Termination fee from Welbilt merger is included in Corporate and Other.

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

(6)Long-lived assets consist of property, plant and equipment, long-term deferred tax assets and other assets.

(7)Gain on sale of plant is included in Commercial Foodservice and Residential Kitchen for 2021 and Gain on sale of plant is included in Commercial Foodservice for 2020.

(8)Gain on litigation settlement is included in Residential Kitchen.

Geographic Information

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

	2021		2020		2019
United States and Canada	$	359,215	$	331,688	$	305,207
Asia	32,986		28,018		22,312
Europe and Middle East	157,432		181,242		165,781
Latin America	8,034		6,391		6,519
Total International	198,452		215,651		194,612
	$	557,667	$	547,339	$	499,819

XML

Employee Retirement Plans

12 Months Ended

Jan. 01, 2022

Retirement Benefits [Abstract]

Employee Retirement Plans

EMPLOYEE RETIREMENT PLANS

(a)Pension Plans

U.S. Plans:

The company maintains a non-contributory defined benefit plan for its union employees at the Elgin, Illinois facility. Benefits are determined based upon retirement age and years of service with the company. This defined benefit plan was frozen on April 30, 2002, and no further benefits accrue to the participants beyond this date. Plan participants will receive or continue to receive payments for benefits earned on or prior to April 30, 2002 upon reaching retirement age.

The company maintains a non-contributory defined benefit plan for its employees at the Smithville, Tennessee facility. Benefits are determined based upon retirement age and years of service with the company. This defined benefit plan was frozen on April 1, 2008, and no further benefits accrue to the participants beyond this date. Plan participants will receive or continue to receive payments for benefits earned on or prior to April 1, 2008 upon reaching retirement age.

The company also maintains a retirement benefit agreement with its former Chairman ("Chairman Plan"). The retirement benefits are based upon a percentage of the former Chairman’s final base salary.

Non-U.S. Plans:

The company maintains a defined benefit plan for its employees at the Wrexham, the United Kingdom facility. Benefits are determined based upon retirement age and years of service with the company. This defined benefit plan was frozen on April 30, 2010 and no further benefits accrue to the participants beyond this date. Plan participants will receive or continue to receive payments for benefits earned on or prior to April 30, 2010 upon reaching retirement age.

The company maintains several pension plans related to AGA and its subsidiaries (collectively, the "AGA Group"), the most significant being the Aga Rangemaster Group Pension Scheme in the United Kingdom. Membership in the plan on a defined benefit basis of pension provision was closed to new entrants in 2001. The plan became open to new entrants on a defined contribution basis of pension provision in 2002, but was generally closed to new entrants on this basis during 2014. In December 2020, it was agreed that the Group Pension Scheme will be closed to future pension accruals effective April 5, 2021 and as a result, a curtailment loss was recognized in fiscal 2020.

The other, much smaller, defined benefit pension plans operating within the AGA Group cover employees in France and the United Kingdom. All pension plan assets are held in separate trust funds although the net defined benefit pension obligations are included in the company's consolidated balance sheet.

A summary of the plans’ net periodic pension cost, benefit obligations, funded status, and net balance sheet position is as follows (dollars in thousands)

	Fiscal 2021				Fiscal 2020
	U.S. Plans		Non-U.S. Plans		U.S. Plans		Non-U.S. Plans
Net Periodic Pension Cost (Benefit):
Service cost	$	—	$	773	$	—	$	2,581
Interest cost	841		17,340		1,043		25,966
Expected return on assets	(1,029)		(78,956)		(999)		(72,795)
Amortization of net loss	1,118		12,741		763		3,449
Amortization of prior service cost	—		2,879		—		2,577
Curtailment loss	—		—		—		14,682
	$	930	$	(45,223)	$	807	$	(23,540)
Change in Benefit Obligation:
Benefit obligation – beginning of year	$	38,897	$	1,744,574	$	35,395	$	1,501,616
Service cost	—		773		—		2,581
Prior service cost	—		—		—		2,309
Interest on benefit obligations	841		17,340		1,043		25,966
Member contributions	—		81		—		312
Actuarial (gain) loss	(1,617)		(135,475)		4,146		186,945
Net benefit payments	(1,698)		(65,138)		(1,687)		(62,878)
Curtailment loss	—		—		—		14,682
Exchange effect	—		(18,008)		—		73,041
Benefit obligation – end of year	$	36,423	$	1,544,147	$	38,897	$	1,744,574
Change in Plan Assets:
Plan assets at fair value – beginning of year	$	17,455	$	1,296,516	$	16,744	$	1,231,181
Company contributions	1,233		4,890		1,587		5,745
Investment gain	1,299		123,708		811		69,824
Member contributions	—		81		—		312
Benefit payments and plan expenses	(1,698)		(65,138)		(1,687)		(62,878)
Exchange effect	—		(17,456)		—		52,332
Plan assets at fair value – end of year	$	18,289	$	1,342,601	$	17,455	$	1,296,516
Funded Status:
Unfunded benefit obligation	$	(18,134)	$	(201,546)	$	(21,442)	$	(448,058)
Amounts recognized in balance sheet at year end:
Accrued pension benefits	$	(18,134)	$	(201,546)	$	(21,442)	$	(448,058)

	Fiscal 2021						Fiscal 2020
	U.S. Plans			Non-U.S. Plans			U.S. Plans			Non-U.S. Plans
Pre-tax components in accumulated other comprehensive income at period end:
Net actuarial loss	$	7,419		$	281,745		$	10,424		$	479,554
Pre-tax components recognized in other comprehensive income for the period:
Current year actuarial (gain) loss	$	(1,887)		$	(181,518)		$	4,334		$	211,494
Actuarial loss recognized	(1,118)			(12,832)			(763)			(3,841)
Prior service cost	—			—			—			3,335
Prior service cost recognized	—			(3,457)			—			(1,550)
Total amount recognized	$	(3,005)		$	(197,807)		$	3,571		$	209,438
Accumulated Benefit Obligation	$	36,423		$	1,544,117		$	38,897		$	1,744,536
Salary growth rate	n/a			0.8		%	n/a			0.8		%
Assumed discount rate	2.6		%	1.9		%	2.2		%	1.2		%
Expected return on assets	6.0		%	6.2		%	6.0		%	6.2		%

The company has engaged non-affiliated third party professional investment advisors to assist the company in developing its investment policy and establishing asset allocations. The company's overall investment objective is to provide a return, that along with company contributions, is expected to meet future benefit payments. Investment policy is established in consideration of anticipated future timing of benefit payments under the plans. The anticipated duration of the investment and the potential for investment losses during that period are carefully weighed against the potential for appreciation when making investment decisions. The company routinely monitors the performance of investments made under the plans and reviews investment policy in consideration of changes made to the plans or expected changes in the timing of future benefit payments.

The assets of the plans were invested in the following classes of securities (none of which were securities of the company):

U.S. Plans:

	Target Allocation		Percentage of Plan Assets
			2021		2020
Equity	48	%	53	%	48	%
Fixed income	40		36		39
Money market	4		1		3
Other (real estate investment trusts & commodities contracts)	8		10		10
	100	%	100	%	100	%

Non-U.S. Plans:

	Target Allocation		Percentage of Plan Assets
			2021		2020
Equity	17	%	11	%	12	%
Fixed income	38		56		57
Alternatives/Other	32		15		15
Real Estate	13		15		13
Cash and cash equivalents	—		3		3
	100	%	100	%	100	%

In accordance with ASC 820 Fair Value Measurements and Disclosures, the company has measured its defined benefit pension plans at fair value. In accordance with ASU 2015-04, "Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets", the company has elected to measure the pension plan assets and obligations as of the calendar month end closest to the fiscal year end. The following tables summarize the basis used to measure the pension plans’ assets at fair value as of January 1, 2022 and January 2, 2021 (in thousands):

U.S. Plans:

	Fiscal 2021						Fiscal 2020
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Net Asset Value		Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Net Asset Value
Short Term Investment Fund (a)	$	274	$	—	$	274	$	533	$	—	$	533
Equity Securities:
Large Cap	3,928		3,928		—		3,443		3,443		—
Mid Cap	413		413		—		407		407		—
Small Cap	424		424		—		489		489		—
International	4,918		4,918		—		4,198		4,198		—
Fixed Income:
Government/Corporate	5,137		5,137		—		5,517		5,517		—
High Yield	1,383		1,383		—		1,211		1,211		—
Alternative:
Global Real Estate Investment Trust	758		758		—		1,063		1,063		—
Commodities Contracts	1,054		1,054		—		594		594		—
Total	$	18,289	$	18,015	$	274	$	17,455	$	16,922	$	533

(a)Represents collective short term investment fund, composed of high-grade money market instruments with short maturities.

Non-U.S. Plans:

	Fiscal 2021
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value
Cash and cash equivalents	$	51,780	$	6,566	$	5,092	$	—	$	40,122
Equity Securities:
UK	6,470		1,878		—		—		4,592
International:
Developed	117,751		3,034		—		—		114,717
Emerging	31,392		435		—		—		30,957
Unquoted/Private Equity	2,195		1		—		—		2,194
Fixed Income:
Government/Corporate:
UK	259,833		15,471		—		—		244,362
International	114,973		—		—		—		114,973
Index Linked	364,666		2,138		—		—		362,528
Other	7,811		—		—		—		7,811
Convertible Bonds	185		—		—		—		185
Real Estate:
Direct	183,045		—		183,045		—		—
Indirect	8,030		80		3,038		—		4,912
Hedge Fund Strategy:
Equity Long/Short	29,345		—		—		—		29,345
Arbitrage & Event	25,788		—		—		—		25,788
Directional Trading & Fixed Income	3,266		—		—		—		3,266
Cash & Other	196,930		—		—		—		196,930
Direct Sourcing	1,156		—		—		—		1,156
Leveraged Loans	30,224		—		—		—		30,224
Alternative/Other	(92,239)		453		—		—		(92,692)
Total	$	1,342,601	$	30,056	$	191,175	$	—	$	1,121,370

	Fiscal 2020
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value
Cash and cash equivalents	$	36,537	$	9,653	$	832	$	—	$	26,052
Equity Securities:
UK	8,615		1,747		—		—		6,868
International:
Developed	110,718		3,076		—		—		107,642
Emerging	34,417		418		—		—		33,999
Unquoted/Private Equity	1,792		1		—		—		1,791
Fixed Income:
Government/Corporate:
UK	264,703		16,330		—		—		248,373
International	141,030		—		—		—		141,030
Index Linked	330,360		2,945		—		—		327,415
Other	8,296		—		—		—		8,296
Convertible Bonds	214		—		—		—		214
Real Estate:
Direct	156,588		—		156,588		—		—
Indirect	9,283		52		4,485		—		4,746
Hedge Fund Strategy:
Equity Long/Short	44,097		—		—		—		44,097
Arbitrage & Event	16,594		—		—		—		16,594
Directional Trading & Fixed Income	9,721		—		—		—		9,721
Cash & Other	196,952		—		—		—		196,952
Direct Sourcing	2,397		—		—		—		2,397
Leveraged Loans	28,720		—		—		—		28,720
Alternative/Other	(104,518)		5		—		—		(104,523)
Total	$	1,296,516	$	34,227	$	161,905	$	—	$	1,100,384

The fair value of the Level 1 assets is based on observable, quoted market prices of the identical underlying security in an active market. The fair value of the Level 2 assets is primarily based on market observable inputs to quoted market prices, benchmark yields and broker/dealer quotes. Level 3 inputs, as applicable, represent unobservable inputs that reflect assumptions developed by management to measure assets at fair value.

The expected return on assets is developed in consideration of the anticipated duration of investment period for assets held by the plan, the allocation of assets in the plan, and the historical returns for plan assets.

Estimated future benefit payments under the plans are as follows (dollars in thousands):

	U.S. Plans		Non-U.S. Plans
2022	$	1,798	$	62,209
2023	1,802		63,462
2024	1,810		63,739
2025	1,831		64,817
2026 through 2031	11,597		388,203

Expected contributions to the U.S. Plans and Non-U.S. Plans to be made in 2022 are $0.4 million and $4.0 million, respectively.

(b)Defined Contribution Plans

As of January 1, 2022, the company maintained two separate defined contribution 401(k) savings plans covering all employees in the United States. These two plans separately cover the union employees at the Elgin, Illinois facility and all other remaining union and non-union employees in the United States. The company also maintained defined contribution plans for its UK based employees.

XML

Restructuring and Acquisition Integration Initiatives

12 Months Ended

Jan. 01, 2022

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

RESTRUCTURING AND ACQUISITION INTEGRATION INITIATIVES

Commercial Foodservice Equipment Group:

During the fiscal years 2021, 2020 and 2019, the company undertook cost reduction initiatives related to the Commercial Foodservice Equipment Group including headcount reductions and facility consolidations. These actions resulted in expenses of $5.4 million, $10.1 million and $6.4 million in the twelve months ended January 1, 2022, January 2, 2021 and December 28, 2019 respectively, primarily for severance related to headcount reductions associated with COVID-19 pandemic and facility consolidations. These expenses are reflected in restructuring expenses in the Consolidated Statements of Earnings. The primary realization of cost savings from the restructuring initiatives began in 2020 with an expected annual savings of approximately $20.0 million. At January 1, 2022, the restructuring obligations accrued for these initiatives are immaterial and will be substantially complete by the end of fiscal year 2022.

The restructuring expenses for the other segments of the company were not material during fiscal years 2021, 2020 and 2019.

In December 2020, the company recorded an impairment of approximately $2.9 million associated to reflect the fair market value of assets held for sale of a non-core business within the Residential Kitchen Equipment Group. This charge was reflected in impairments in the Consolidated Statements of Earnings. As a result approximately $17.4 million of current assets have been classified as held for sale, within prepaid expenses and other current assets and approximately $22.3 million of liabilities have been classified as held for sale within accrued expenses on the Consolidated Balance Sheets. The sale was completed in January 2021.

XML

Schedule II - Valuation and Qualifying Accounts and Reserves

12 Months Ended

Jan. 01, 2022

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts and Reserves

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

FOR THE FISCAL YEARS ENDED JANUARY 1, 2022, JANUARY 2, 2021

AND December 28, 2019

(amounts in thousands)

	Balance Beginning Of Period		Additions/ (Recoveries) Charged to Expense		Other Adjustments (1)		Write-Offs During the Period		Balance At End Of Period
Allowance for doubtful accounts; deducted from accounts receivable on the balance sheets-
2021	$	19,225	$	809	$	554	$	(1,818)	$	18,770
2020	$	14,886	$	6,868	$	1,239	$	(3,768)	$	19,225
2019	$	13,608	$	1,941	$	2,009	$	(2,672)	$	14,886

(1) Amounts consist primarily of valuation allowances assumed from acquired companies.

	Balance Beginning Of Period		Additions/ (Recoveries) Charged to Expense		Write-Offs During the Period		Balance At End Of Period
Valuation allowance - Deferred tax assets
2021	$	11,731	$	1,138	$	(2,647)	$	10,222
2020	$	7,754	$	3,977	$	—	$	11,731
2019	$	26,023	$	129	$	(18,398)	$	7,754

XML

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Jan. 01, 2022

Accounting Policies [Abstract]

Basis of Presentation

Basis of PresentationThe consolidated financial statements include the accounts of the company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires the company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses as well as related disclosures. Significant items that are subject to such estimates and judgments include allowances for doubtful accounts, reserves for excess and obsolete inventories, long-lived and intangible assets, warranty reserves, insurance reserves, income tax reserves and post-retirement obligations. On an ongoing basis, the company evaluates its estimates and assumptions based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.

Fiscal Period

The company's fiscal year ends on the Saturday nearest December 31. Fiscal years 2021, 2020, and 2019 ended on January 1, 2022, January 2, 2021 and December 28, 2019, respectively, and included 52, 53 and 52 weeks, respectively.

Cash and Cash Equivalents

Cash and Cash EquivalentsThe company considers all short-term investments with original maturities of three months or less when acquired to be cash equivalents. The company’s policy is to invest its excess cash in interest-bearing deposits with major banks that are subject to minimal credit and market risk.

Accounts Receivable

Accounts ReceivableAccounts receivable, as shown in the consolidated balance sheets, are net of allowances for doubtful accounts of $18.8 million and $19.2 million at January 1, 2022 and January 2, 2021, respectively. At January 1, 2022, all accounts receivable are expected to be collected within one year.

Inventories

InventoriesInventories are composed of material, labor and overhead and are stated at the lower of cost or net realizable value. Costs for inventory have been determined using the first-in, first-out ("FIFO") method. The company estimates reserves for inventory obsolescence and shrinkage based on its judgment of future realization.

Property, Plant and Equipment

Property, plant and equipment are depreciated or amortized on a straight-line basis over their useful lives based on management's estimates of the period over which the assets will be utilized to benefit the operations of the company. The useful lives are estimated based on historical experience with similar assets, taking into account anticipated technological or other changes. The company periodically reviews these lives relative to physical factors, economic factors and industry trends. If there are changes in the planned use of property and equipment or if technological changes were to occur more rapidly than anticipated, the useful lives assigned to these assets may need to be shortened, resulting in the recognition of increased depreciation and amortization expense in future periods.

Following is a summary of the estimated useful lives:

Description	Life
Building and improvements	20 to 40 years
Furniture and fixtures	3 to 7 years
Machinery and equipment	3 to 10 years

Goodwill and Other Intangibles

Goodwill and Other Intangibles

The company’s business acquisitions result in the recognition of goodwill and other intangible assets, which are a significant portion of the company’s total assets. Goodwill represents the excess of acquisition costs over the fair value of the net tangible assets and identifiable intangible assets acquired in a business combination. Identifiable intangible assets are recognized separately from goodwill and include trademarks and trade names, technology, customer relationships and other specifically identifiable assets. Trademarks and trade names are deemed to be indefinite-lived. Goodwill and indefinite-lived intangible assets are not amortized, but are subject to impairment testing.

The company performs the annual impairment assessment for goodwill and indefinite-lived intangible assets as of first day of the fourth quarter of the fiscal year and more frequently if indicators of impairment exist. The goodwill impairment test is performed at the reporting unit level. The company initially performs a qualitative analysis to determine if it is more likely than not that the goodwill balance or indefinite-life intangible asset is impaired. In conducting a qualitative assessment, the company analyzes a variety of events or factors that may influence the fair value of the reporting unit or indefinite-life intangible, including, but not limited to: macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, share price and other relevant factors.

Litigation Matters

Litigation MattersFrom time to time, the company is subject to proceedings, lawsuits and other claims related to products, suppliers, employees, customers and competitors. The company maintains insurance to partially cover product liability, workers compensation, property and casualty, and general liability matters. The company is required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable losses. A determination of the amount of accrual required, if any, for these contingencies is made after assessment of each matter and the related insurance coverage. The required accrual may change in the future due to new developments or changes in approach such as a change in settlement strategy in dealing with these matters. The company does not believe that any such matter will have a material adverse effect on its financial condition, results of operations or cash flows of the company.

Fair Value Measures

Fair Value Measures

ASC 820 Fair Value Measurements and Disclosures defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into the following levels:

Level 1 – Quoted prices in active markets for identical assets or liabilities

Level 2 – Inputs, other than quoted prices in active markets, that are observable either directly or indirectly

Level 3 – Unobservable inputs based on our own assumptions

Foreign Currency

Foreign CurrencyThe income statements of the company’s foreign operations are translated at the monthly average rates. Assets and liabilities of the company’s foreign operations are translated at exchange rates at the balance sheet date. These translation adjustments are not included in determining net income for the period but are disclosed and accumulated in a separate component of stockholders’ equity. Exchange gains and losses on foreign currency transactions are included in determining net income for the period in which they occur.

Shipping and Handling Costs

Shipping and Handling CostsFees billed to the customer for shipping and handling are classified as a component of net revenues. Shipping and handling costs are included in cost of products sold.

Warranty Costs

Warranty CostsIn the normal course of business, the company issues product warranties for specific product lines and provides for the estimated future warranty cost in the period in which the sale is recorded. The estimate of warranty cost is based on contract terms and historical warranty loss experience that is periodically adjusted for recent actual experience. Because warranty estimates are forecasts that are based on the best available information, claims costs may differ from amounts provided. Adjustments to initial obligations for warranties are made as changes in the obligations become reasonably estimable.

Research and Development Costs

Research and Development CostsResearch and development costs, included in cost of sales in the consolidated statements of earnings, are charged to expense when incurred.

Non-Cash Share-Based Compensation

Non-Cash Share-Based CompensationThe company's 2021 Stock Incentive Plan (the "2021 Plan"), allows for the granting of stock options, stock appreciation rights, restricted stock and restricted stock units, performance stock, phantom units and other equity-based awards. The company estimates the fair value of restricted stock grants, restricted stock units and performance stock at the time of grant and recognizes compensation costs over the vesting period of the grants. The expense, net of forfeitures, is recognized using the straight-line method. Non-cash share-based compensation expense is only recognized for those grants expected to vest.

Earnings Per Share

Earnings Per Share“Basic earnings per share” is calculated based upon the weighted average number of common shares actually outstanding, and “diluted earnings per share” is calculated based upon the weighted average number of common shares outstanding and other dilutive securities.

New Accounting Pronouncements

New Accounting Pronouncements

Accounting Pronouncements - Recently Adopted

In August 2020, the FASB issued ASU No. 2020-06, “Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging- Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity," which simplifies the accounting for convertible instruments by eliminating the requirement to separate embedded conversion features from the host contract when the conversion features are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital. By removing the separation model, a convertible debt instrument is reported as a single liability instrument with no separate accounting for embedded conversion features. This new standard also removes certain settlement conditions that are required for contracts to qualify for equity classification and simplifies the diluted earnings per share calculations by requiring that an entity use the if-converted method and that the effect of potential share settlement be included in diluted earnings per share calculations. Effective January 3, 2021, the company early adopted ASU 2020-06 using the modified retrospective approach. Adoption of the new standard resulted in an increase to the opening balance of retained earnings of $5.1 million, a decrease to additional paid-in capital of $79.4 million, and an increase to convertible senior notes of $98.4 million. In addition, the company ceased recording non-cash interest expense associated with amortization of the debt discount and calculates earnings per share using the if-converted method to the extent those shares are not anti-dilutive.

In December 2019, the FASB issued ASU 2019-12, "Simplifying the Accounting for Income Taxes (Topic 740)", which removes certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC 740. This guidance is effective for annual reporting periods, and interim periods within those reporting periods, beginning after December 15, 2020 with early adoption permitted. The company adopted this guidance on January 3, 2021, and it did not have a material impact on the company's Consolidated Financial Statements upon adoption.

In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848)," which clarified that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition related to reference rate reform. The amendments in this update were effective immediately for all entities. The adoption of this guidance did not materially impact the company's Consolidated Financial Statements.

Accounting Pronouncements - To be adopted

On May 3, 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. This new standard provides clarification and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (such as warrants) that remain equity classified after modification or exchange. This guidance is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The company is currently evaluating the impacts the adoption of this guidance will have on its Consolidated Financial Statements and disclosures.

In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities About Government Assistance, which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. The new standard is effective for the company on January 2, 2022 and only impacts annual financial statement footnote disclosures. The company is currently evaluating the impacts the adoption of this guidance will have on its Consolidated Financial Statements and disclosures.

XML

Revenue Recognition (Policies)

12 Months Ended

Jan. 01, 2022

Revenue Recognition [Abstract]

Revenue Recognition

Revenue is recognized when the control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services.

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and represents the unit of account. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The company’s contracts can have multiple performance obligations or just a single performance obligation.

For contracts with multiple performance obligations, the contracts transaction price is allocated to each performance obligation using the company’s best estimate of the standalone selling price of each distinct good or service in the contract. As the company’s standard payment terms are less than one year, the company does not assess whether a contract has a significant financing component. The company treats shipping and handling activities performed after the customer obtains control of the good as a contract fulfillment activity. Sales, use and value added taxes assessed by governmental authorities are excluded from the measurement of the transaction price within the company’s contracts with its customers. The company generally expenses sales commissions when incurred because the amortization period would have been less than one year. These costs are recorded within selling, general and administrative expenses.

Within the Commercial Foodservice Equipment and Residential Foodservice Equipment Groups, the estimated standalone selling price of equipment is based on observable prices. Within the Food Processing Equipment Group, the company estimates the standalone selling price based on expected cost to manufacture the good or complete the service plus an appropriate profit margin.

Control may pass to the customer over time or at a point in time. In general, the Commercial Foodservice Equipment and Residential Foodservice Equipment Groups recognize revenue at the point in time control transfers to their customers based on contractual shipping terms. Revenue from equipment sold under our long-term contracts within the Food Processing Equipment group is recognized over time as the equipment is manufactured and assembled. Installation services provided in connection with the delivery of the equipment are also generally recognized as those services are rendered. Over time transfer of control is measured using an appropriate input measure (e.g., costs incurred or direct labor hours incurred in relation to total estimate). These measures include forecasts based on the best information available and therefore reflect the company's judgment to faithfully depict the transfer of the goods.

Contract Estimates

Accounting for long-term contracts within the Food Processing Equipment group involves the use of various techniques to estimate total contract revenue and costs. For the company’s long-term contracts, estimated profit for the equipment performance obligations is recognized as the equipment is manufactured and assembled. Profit on the equipment performance obligations is estimated as the difference between the total estimated revenue and expected costs to complete a contract. Contract cost estimates are based on labor productivity and availability, the complexity of the work to be performed; the cost and availability of materials and labor, and the performance of subcontractors. The company does not disclose information about remaining performance obligations that have original expected durations of one year or less.

Contracts within the Commercial Foodservice and Residential Foodservice Equipment groups may contain variable consideration in the form of volume rebate programs. The company’s estimate of variable consideration is based on its experience with similarly situated customers using the portfolio approach.

XML

Leases Commitments (Policies)

12 Months Ended

Jan. 01, 2022

Leases [Abstract]

Lease commitments policy

Accounting Policy

At the commencement date of a lease, the company recognizes a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. The lease liability is measured at the present value of lease payments over the lease term, including variable fees that are known or subject to a minimum floor. The lease liability includes lease component fees, while non-lease component fees are expensed as incurred for all asset classes. The company's lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. When a contract excludes an implicit rate, the company utilizes an incremental borrowing rate based on information available at the lease commencement date including lease term and geographic region. The initial valuation of the right-of-use (“ROU”) asset includes the initial measurement of the lease liability, lease payments made in advance of the lease commencement date and initial direct costs incurred by the company and excludes lease incentives. Operating lease ROU assets are included in other assets and operating lease liabilities are included accrued expenses and other non-current liabilities.

Leases with an initial term of 12 months or less are classified as short-term leases and are not recorded on the Consolidated Balance Sheets. The lease expense for short-term leases is recognized on a straight-line basis over the lease term.

XML

Aqcuisitions and Purchase Accounting (Tables)

12 Months Ended

Jan. 01, 2022

Business Acquisition [Line Items]

Schedule of Business Acquisition Pro Forma Information

The following pro forma results include adjustments to reflect amortization of intangibles associated with the acquisitions and the effects of adjustments made to the carrying value of certain assets (in thousands, except per share data):  

	Twelve Months Ended
	January 1, 2022		January 2, 2021
Net sales	$	3,732,010	$	2,980,164
Net earnings	519,879		177,923
Net earnings per share:
Basic	$	9.42	$	3.23
Diluted	$	9.17	$	3.23

2020 Acquisitions

Business Acquisition [Line Items]

Schedule of Business Acquisitions, by Acquisition

The final allocation of consideration paid for the other 2020 acquisitions is summarized as follows (in thousands):

	Preliminary Opening Balance Sheet		Measurement Period Adjustments		Adjusted Opening Balance Sheet
Cash	$	14,647	$	—	$	14,647
Current assets	43,670		(13,390)		30,280
Property, plant and equipment	3,014		(349)		2,665
Goodwill	55,335		3,847		59,182
Other intangibles	63,201		625		63,826
Other assets	6,121		52		6,173
Current liabilities	(54,478)		13,037		(41,441)
Long-term deferred tax (liability) asset	(123)		387		264
Other non-current liabilities	(21,902)		791		(21,111)
Consideration paid at closing	$	109,485	$	5,000	$	114,485
Deferred payments	8,666		(468)		8,198
Contingent consideration	16,144		(836)		15,308
Net assets acquired and liabilities assumed	$	134,295	$	3,696	$	137,991

Novy

Business Acquisition [Line Items]

Schedule of Business Acquisitions, by Acquisition

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair values of assets acquired and liabilities assumed (in thousands):

	Preliminary Opening Balance Sheet		Preliminary Measurement Period Adjustments		Adjusted Opening Balance Sheet
Cash	$	16,152	$	—	$	16,152
Current assets	23,762		—		23,762
Property, plant and equipment	17,058		(969)		16,089
Goodwill	142,741		(17,109)		125,632
Other intangibles	126,557		22,966		149,523
Other assets	26		173		199
Current liabilities	(23,440)		569		(22,871)
Long-term deferred tax liability	(33,918)		(5,519)		(39,437)
Other non-current liabilities	(1,930)		(111)		(2,041)
Net assets acquired and liabilities assumed	$	267,008	$	—	$	267,008

Kamado Joe and Masterbuilt

Business Acquisition [Line Items]

Schedule of Business Acquisitions, by Acquisition

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair values of assets acquired and liabilities assumed (in thousands):

	Preliminary Opening Balance Sheet
Cash	$	5,381
Current assets	137,826
Property, plant and equipment	7,773
Goodwill	110,052
Other intangibles	215,577
Other assets	2,143
Current liabilities	(54,865)
Long-term deferred tax liability	(15,907)
Other non-current liabilities	(1,914)
Net assets acquired and liabilities assumed	$	406,066

2021 Acquisitions

Business Acquisition [Line Items]

Schedule of Business Acquisitions, by Acquisition

The following estimated fair values of assets acquired and liabilities assumed are based on the information that was available as of the acquisition dates for the other 2021 acquisitions and are summarized as follows (in thousands):

	Preliminary Opening Balance Sheet		Preliminary Measurement Period Adjustments		Adjusted Opening Balance Sheet
Cash	$	6,414	$	—	$	6,414
Current assets	76,077		223		76,300
Property, plant and equipment	19,561		(72)		19,489
Goodwill	85,270		9,065		94,335
Other intangibles	158,725		(9,193)		149,532
Other assets	2,101		31		2,132
Current liabilities	(33,910)		(38)		(33,948)
Long-term deferred tax liability	(3,010)		—		(3,010)
Other non-current liabilities	(7,092)		(16)		(7,108)
Consideration paid at closing	$	304,136	$	—	$	304,136
Contingent consideration	9,404		—		9,404
Net assets acquired and liabilities assumed	$	313,540	$	—	$	313,540

XML

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 01, 2022

Accounting Policies [Abstract]

Schedule of Inventory, Current

Inventories at January 1, 2022 and January 2, 2021 are as follows (in thousands):

	2021		2020
Raw materials and parts	$	421,361	$	263,200
Work in process	65,581		55,104
Finished goods	350,476		221,894
	$	837,418	$	540,198

Property, Plant and Equipment

Property, plant and equipment are carried at cost as follows (in thousands):

	2021		2020
Land	$	54,477	$	40,707
Building and improvements	270,812		245,435
Furniture and fixtures	56,706		68,063
Machinery and equipment	265,188		220,148
	647,183		574,353
Less accumulated depreciation	(266,203)		(229,871)
	$	380,980	$	344,482

Schedule Of Useful Lives For Property Plant Equipment

Following is a summary of the estimated useful lives:

Description	Life
Building and improvements	20 to 40 years
Furniture and fixtures	3 to 7 years
Machinery and equipment	3 to 10 years

Schedule of Goodwill

Goodwill is allocated to the business segments as follows (in thousands):

	Commercial Foodservice		Food Processing		Residential Kitchen		Total
Balance as of December 28, 2019	$	1,153,552	$	257,679	$	438,516	$	1,849,747
Goodwill acquired during the year	56,773		—		—		56,773
Measurement period adjustments to goodwill acquired in prior year	(56)		(8,732)		1,770		(7,018)
Exchange effect	18,167		6,851		9,741		34,759
Balance as of January 2, 2021	$	1,228,436	$	255,798	$	450,027	$	1,934,261
Goodwill acquired during the year	63,849		—		266,170		330,019
Measurement period adjustments to goodwill acquired in prior year	2,411		—		—		2,411
Exchange effect	(9,609)		(5,083)		(8,530)		(23,222)
Balance as of January 1, 2022	$	1,285,087	$	250,715	$	707,667	$	2,243,469

Schedule Of Intangible Assets By Major Class

Intangible assets consist of the following (in thousands):

	January 1, 2022					January 2, 2021
	Estimated Weighted Avg Remaining Life	Gross Carrying Amount		Accumulated Amortization		Estimated Weighted Avg Remaining Life	Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Customer relationships	7.6	$	863,339	$	(411,327)	8.5	$	735,264	$	(347,029)
Backlog	0.2	13,684		(929)		0.3	5,443		(2,638)
Developed technology	8.9	73,461		(29,952)		10.0	56,931		(24,394)
		$	950,484	$	(442,208)		$	797,638	$	(374,061)
Indefinite-lived intangible assets:
Trademarks and trade names		$	1,367,101				$	1,026,804

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated future amortization expense of intangible assets is as follows (in thousands):

2022	$	95,132
2023	76,386
2024	64,914
2025	58,553
2026	55,277
2027 and thereafter	158,014
	$	508,276

Schedule of Accrued Liabilities

Accrued expenses consist of the following at January 1, 2022 and January 2, 2021, respectively (in thousands):

	2021		2020
Contract liabilities	$	133,315	$	93,871
Accrued payroll and related expenses	115,762		93,926
Accrued warranty	80,215		69,667
Accrued customer rebates	72,451		43,703
Accrued short-term leases	22,753		22,493
Accrued sales and other tax	22,684		22,030
Accrued professional fees	19,292		12,133
Accrued agent commission	13,670		11,105
Accrued product liability and workers compensation	10,952		12,909
Accrued interest rate swaps	1,171		14,075
Accrued liabilities held for sale	—		22,313
Other accrued expenses	90,590		76,316
	$	582,855	$	494,541

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table summarizes the components of accumulated other comprehensive income (loss) as reported in the consolidated balance sheets (in thousands):

	2021		2020
Unrecognized pension benefit costs, net of tax of $(39,470) and $(89,059)	$	(249,696)	$	(400,919)
Unrealized loss on interest rate swap, net of tax of $(4,501) and $(13,120)	(13,064)		(37,548)
Unrealized gain on certain investments, net of tax of $433 and $—	1,330		—
Currency translation adjustments	(97,654)		(49,961)
	$	(359,084)	$	(488,428)

Changes in accumulated other comprehensive income (loss) (1) were as follows (in thousands):

	Currency Translation Adjustment		Pension Benefit Costs		Unrealized Gain/(Loss) Interest Rate Swap		Unrealized Gain Certain Investments		Total
Balance as of December 28, 2019	$	(105,705)	$	(228,336)	$	(16,892)	$	—	$	(350,933)
Other comprehensive income before reclassification	55,744		(174,826)		(36,170)		—		(155,252)
Amounts reclassified from accumulated other comprehensive income	—		2,243		15,514		—		17,757
Net current-period other comprehensive income	$	55,744	$	(172,583)	$	(20,656)	—		$	(137,495)
Balance as of January 2, 2021	$	(49,961)	$	(400,919)	$	(37,548)	$	—	$	(488,428)
Other comprehensive income before reclassification	(47,693)		137,187		6,015		1,330		96,839
Amounts reclassified from accumulated other comprehensive income	—		14,036		18,469		—		32,505
Net current-period other comprehensive income	$	(47,693)	$	151,223	$	24,484	$	1,330	$	129,344
Balance as of January 1, 2022	$	(97,654)	$	(249,696)	$	(13,064)	$	1,330	$	(359,084)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The company’s financial assets and liabilities that are measured at fair value are categorized using the fair value hierarchy at January 1, 2022 and January 2, 2021 are as follows (in thousands):

	Fair Value Level 1		Fair Value Level 2		Fair Value Level 3		Total
As of January 1, 2022
Financial Assets:
Interest rate swaps	$	—	$	3,645	$	—	$	3,645
Foreign exchange derivative contracts	$	—	$	1,095	$	—	$	1,095
Financial Liabilities:
Interest rate swaps	$	—	$	21,635	$	—	$	21,635
Contingent consideration	$	—	$	—	$	34,983	$	34,983
As of January 2, 2021
Financial Liabilities:
Interest rate swaps	$	—	$	51,093	$	—	$	51,093
Contingent consideration	$	—	$	—	$	25,558	$	25,558
Foreign exchange derivative contracts	$	—	$	2,191	$	—	$	2,191

Schedule of Product Warranty Liability

A rollforward of the warranty reserve for the fiscal years 2021 and 2020 are as follows (in thousands):

	2021		2020
Beginning balance	$	69,667	$	66,374
Warranty reserve related to acquisitions	5,046		1,485
Warranty expense	68,199		58,047
Warranty claims paid	(62,697)		(56,239)
Ending balance	$	80,215	$	69,667

XML

Revenue Recognition (Tables)

12 Months Ended

Jan. 01, 2022

Revenue Recognition [Abstract]

Disaggregation of Revenue

The following table summarizes our net sales by reportable operating segment and geographical location (in thousands):

	Commercial  Foodservice		Food Processing		Residential Kitchen		Total
Twelve Months Ended January 1, 2022
United States and Canada	$	1,435,120	$	347,280	$	454,375	$	2,236,775
Asia	204,432		17,641		11,154		233,227
Europe and Middle East	344,273		77,671		265,508		687,452
Latin America	48,936		38,154		6,248		93,338
Total	$	2,032,761	$	480,746	$	737,285	$	3,250,792
Twelve Months Ended January 2, 2021
United States and Canada	$	1,067,872	$	311,042	$	373,864	$	1,752,778
Asia	155,742		26,778		6,711		189,231
Europe and Middle East	246,845		78,690		182,919		508,454
Latin America	39,820		20,762		2,212		62,794
Total	$	1,510,279	$	437,272	$	565,706	$	2,513,257
Twelve Months Ended December 28, 2019
United States and Canada	$	1,334,776	$	246,572	$	362,753	$	1,944,101
Asia	221,422		31,250		5,760		258,432
Europe and Middle East	349,613		98,814		198,672		647,099
Latin America	78,534		24,315		6,965		109,814
Total	$	1,984,345	$	400,951	$	574,150	$	2,959,446

Contract with Customer, Asset and Liability

The following table provides information about contract assets and contract liabilities from contracts with customers (in thousands):

	January 1, 2022		January 2, 2021
Contract assets	$	21,592	$	20,328
Contract liabilities	$	133,315	$	93,871
Non-current contract liabilities	$	11,602	$	13,523

XML

Financing Arrangements (Tables)

12 Months Ended

Jan. 01, 2022

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

	2021		2020
	(in thousands)
Senior secured revolving credit line	$	683,175	$	755,000
Term loan facility	993,340		335,938
Convertible senior notes	734,417		632,847
Foreign loans	2,224		4,421
Other debt arrangement	1,138		1,390
Total debt	2,414,294		1,729,596
Less:  Current maturities of long-term debt	27,293		22,944
Long-term debt	$	2,387,001	$	1,706,652

Carrying Value And Fair Value Of Long Term Debt, Disclosure

The carrying value and estimated aggregate fair value, a level 2 measurement, based primarily on market prices, of debt excluding the Convertible Notes is as follows (in thousands):

	Jan 1, 2022				Jan 2, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
Total debt excluding convertible senior notes	$	1,679,877	$	1,686,537	$	1,096,749	$	1,096,749

Convertible Debt

The following table summarizes the outstanding principal amount and carrying value of the Convertible Notes:

	Jan 1, 2022		Jan 2, 2021
	(in thousands)
Principal amounts:
Principal	$	747,500	$	747,500
Unamortized debt discount	—		(98,358)
Unamortized issuance costs	(13,083)		(16,295)
Net carrying amount	$	734,417	$	632,847

Schedule of Debt Instruments, Interest Expense

The following table summarizes total interest expense recognized related to the Convertible Notes:

	Twelve Months Ended
	Jan 1, 2022		Jan 2, 2021
Contractual interest expense	$	7,454	$	2,720
Interest cost related to amortization of the debt discount and issuance costs	3,484		7,971
Total interest expense	$	10,938	$	10,691

Schedule of Maturities of Long-term Debt

2022	$	27,293
2023	23,621
2024	23,634
2025	757,945
2026 and thereafter	1,581,801
	$	2,414,294

XML

Common and Preferred Stock (Tables)

12 Months Ended

Jan. 01, 2022

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

A summary of the company’s nonvested restricted share grant activity and their corresponding fair value on the date of grant for fiscal year ended January 1, 2022 is as follows:

 

	Shares	Weighted Average Grant-Date Fair Value
Nonvested shares at January 2, 2021	433,065	$	112.54
Granted	4,399	181.31
Vested	(43,485)	115.77
Forfeited	(213,673)	112.49
Nonvested shares at January 1, 2022	180,306	$	113.31

As of January 1, 2022, there was $3.7 million of total unrecognized compensation cost related to nonvested restricted share grant compensation arrangements, if all performance conditions are fully achieved. The remaining weighted average life is 0.34 years.

Schedule of Unvested Restricted Stock Units Roll Forward

A summary of the company’s nonvested restricted stock unit activity at target shares and their corresponding fair value on the date of grant for fiscal year ended January 1, 2022 is as follows:

	Units	Weighted Average Grant-Date Fair Value
Nonvested shares at January 2, 2021	47,500	$	134.25
Granted	287,624	166.41
Nonvested shares at January 1, 2022	335,124	$	161.85

XML

Income Taxes (Tables)

12 Months Ended

Jan. 01, 2022

Income Tax Disclosure [Abstract]

Schedule of Earnings Before Taxes

Earnings before taxes is summarized as follows (in thousands):

	2021		2020		2019
Domestic	$	453,357	$	178,813	$	336,688
Foreign	166,147		89,244		125,931
Total	$	619,504	$	268,057	$	462,619

Schedule of Provision of Taxes

The provision for income taxes is summarized as follows (in thousands):

	2021		2020		2019
Federal	$	84,689	$	36,908	$	69,074
State and local	24,363		8,815		16,203
Foreign	21,960		15,040		25,102
Total	$	131,012	$	60,763	$	110,379
Current	$	124,149	$	44,342	$	88,167
Deferred	6,863		16,421		22,212
Total	$	131,012	$	60,763	$	110,379

Schedule of Effective Income Tax Reconciliation

Reconciliation of the differences between income taxes computed at the federal statutory rate to the effective rate are as follows:

	2021		2020		2019
U.S. federal statutory tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	3.1		3.2		3.2
Permanent differences	0.5		(0.4)		0.6
Foreign income tax rate at rates other than U.S. statutory	0.2		0.5		0.2
Deferred tax changes	(2.2)		(0.7)		—
Tax refunds	(0.7)		—		—
Change in valuation allowances (1)	0.4		(0.1)		0.1
Tax on unremitted earnings	0.4		1.2		0.3
Other	(1.6)		(2.0)		(1.5)
Consolidated effective tax	21.1	%	22.7	%	23.9	%

Schedule of Deferred Assets and Liabilities

At January 1, 2022 and January 2, 2021, the company had recorded the following deferred tax assets and liabilities (in thousands):

	2021		2020
Deferred tax assets:
Compensation related	$	21,543	$	12,328
Pension and post-retirement benefits	49,072		88,709
Inventory reserves	14,453		14,732
Accrued liabilities and reserves	17,088		22,049
Warranty reserves	19,286		17,890
Operating lease liability	18,643		16,180
Interest rate swaps	4,573		12,997
Convertible debt	37,034		—
Net operating loss carryforwards	17,083		20,747
Other	12,695		17,187
Gross deferred tax assets	211,470		222,819
Valuation allowance	(10,222)		(11,731)
Deferred tax assets	$	201,248	$	211,088
Deferred tax liabilities:
Intangible assets	$	(273,974)	$	(226,598)
Depreciable assets	(26,996)		(26,916)
Basis difference on affiliates	(18,795)		—
Operating lease right-of-use assets	(18,029)		(15,921)
Other	(17,195)		(12,825)
Deferred tax liabilities	$	(354,989)	$	(282,260)
Net deferred tax assets (liabilities)	$	(153,741)	$	(71,172)
Long-term deferred asset	33,194		76,052
Long-term deferred liability	(186,935)		(147,224)
Net deferred tax assets (liabilities)	$	(153,741)	$	(71,172)

Schedule of Unrecognized Tax Benefits

The following table summarizes the activity related to the unrecognized tax benefits for the fiscal years ended December 28, 2019, January 2, 2021 and January 1, 2022 (in thousands):

Balance at December 28, 2019	$	31,559
Increases to current year tax positions	3,657
Increase to prior year tax positions	183
Decrease to prior year tax positions	(53)
Settlements	(533)
Lapse of statute of limitations	(4,484)
Balance at January 2, 2021	$	30,329
Increases to current year tax positions	1,760
Increase to prior year tax positions	6,796
Decrease to prior year tax positions	(576)
Settlements	(1,180)
Lapse of statute of limitations	(920)
Balance as of January 1, 2022	$	36,209

XML

Financial Instruments (Tables)

12 Months Ended

Jan. 01, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

A summary of the company’s interest rate swaps is as follows (in thousands):

		Twelve Months Ended
	Location	Jan 1, 2022		Jan 2, 2021
Fair value	Other assets	$	3,645	$	—
Fair value	Accrued expenses	$	1,171	$	14,075
Fair value	Other non-current liabilities	$	20,464	$	37,018
Amount of gain/(loss) recognized in other comprehensive income	Other comprehensive income	$	14,634	$	(43,317)
Gain/(loss) reclassified from accumulated other comprehensive income (effective portion)	Interest expense	$	(18,469)	$	(15,514)

XML

Lease Commitments (Tables)

12 Months Ended

Jan. 01, 2022

Leases [Abstract]

Lease, Cost

Leases (in thousands)	January 1, 2022		January 2, 2021
Operating lease right-of-use assets:
Other assets	$	93,388	$	97,193
Operating lease liabilities:
Accrued expenses	22,753		22,493
Other non-current liabilities	74,202		76,529
Total Liability	$	96,955	$	99,022

Lessee, Operating Lease, Liability, Maturity

Total Lease Commitments (in thousands)	Operating Leases
2022	$	24,903
2023	21,458
2024	17,588
2025	12,581
2026	10,122
2027 and thereafter	19,062
Total future lease commitments	105,714
Less imputed interest	8,759
Total	$	96,955

Other Lease Information

Other Lease Information (in thousands, except lease term and discount rate)	Twelve Months Ended January 1, 2022			Twelve Months Ended January 2, 2021
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	25,957		$	26,024
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	16,353			25,433
	January 1, 2022			January 2, 2021
Weighted-average remaining lease terms - Operating	5.6 years			6.0 years
Weighted-average discount rate - Operating	2.8		%	3.0		%

XML

Segment Information (Tables)

12 Months Ended

Jan. 01, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

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
2021
Net sales	$	2,032,761	$	480,746	$	737,285	$	—	$	3,250,792
Income (loss) from operations(3,4,7)	423,121		94,414		124,701		(12,244)		629,992
Depreciation expense	23,814		5,601		12,655		611		42,681
Amortization expense (5)	56,910		7,247		11,628		6,777		82,562
Net capital expenditures	26,507		9,111		9,232		1,701		46,551
Total assets	3,522,630		637,252		2,153,758		69,958		6,383,598
Long-lived assets (6)	292,593		54,934		169,028		41,112		557,667
2020
Net sales	$	1,510,279	$	437,272	$	565,706	$	—	$	2,513,257
Income (loss) from operations (3,7)	239,625		78,008		67,046		(60,248)		324,431
Depreciation expense	21,768		5,507		11,691		120		39,086
Amortization expense (5)	51,985		7,319		9,657		2,485		71,446
Net capital expenditures	25,463		3,427		4,801		1,158		34,849
Total assets	3,249,441		617,171		1,221,229		114,633		5,202,474
Long-lived assets (6)	279,481		55,069		192,940		19,849		547,339
2019
Net sales	$	1,984,345	$	400,951	$	574,150	$	—	$	2,959,446
Income (loss) from operations (3,8)	429,946		68,935		89,312		(74,150)		514,043
Depreciation expense	21,054		4,944		11,742		112		37,852
Amortization expense (5)	45,906		8,162		9,896		1,612		65,576
Net capital expenditures	29,353		6,683		9,168		1,405		46,609
Total assets	3,188,304		621,619		1,157,211		35,009		5,002,143
Long-lived assets (6)	261,466		57,403		176,834		4,116		499,819

(1)Non-operating expenses are not allocated to the reportable 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 and impairments are included in operating income of the segment to which they pertain. See note 3(f) and 12 for further details.

(4)Termination fee from Welbilt merger is included in Corporate and Other.

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

(6)Long-lived assets consist of property, plant and equipment, long-term deferred tax assets and other assets.

(7)Gain on sale of plant is included in Commercial Foodservice and Residential Kitchen for 2021 and Gain on sale of plant is included in Commercial Foodservice for 2020.

(8)Gain on litigation settlement is included in Residential Kitchen.

Schedule of Entity-Wide Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country

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

	2021		2020		2019
United States and Canada	$	359,215	$	331,688	$	305,207
Asia	32,986		28,018		22,312
Europe and Middle East	157,432		181,242		165,781
Latin America	8,034		6,391		6,519
Total International	198,452		215,651		194,612
	$	557,667	$	547,339	$	499,819

XML

Employee Retirement Plans (Tables)

12 Months Ended

Jan. 01, 2022

Retirement Benefits [Abstract]

Schedule of Defined Benefit Plans Disclosures

A summary of the plans’ net periodic pension cost, benefit obligations, funded status, and net balance sheet position is as follows (dollars in thousands)

	Fiscal 2021				Fiscal 2020
	U.S. Plans		Non-U.S. Plans		U.S. Plans		Non-U.S. Plans
Net Periodic Pension Cost (Benefit):
Service cost	$	—	$	773	$	—	$	2,581
Interest cost	841		17,340		1,043		25,966
Expected return on assets	(1,029)		(78,956)		(999)		(72,795)
Amortization of net loss	1,118		12,741		763		3,449
Amortization of prior service cost	—		2,879		—		2,577
Curtailment loss	—		—		—		14,682
	$	930	$	(45,223)	$	807	$	(23,540)
Change in Benefit Obligation:
Benefit obligation – beginning of year	$	38,897	$	1,744,574	$	35,395	$	1,501,616
Service cost	—		773		—		2,581
Prior service cost	—		—		—		2,309
Interest on benefit obligations	841		17,340		1,043		25,966
Member contributions	—		81		—		312
Actuarial (gain) loss	(1,617)		(135,475)		4,146		186,945
Net benefit payments	(1,698)		(65,138)		(1,687)		(62,878)
Curtailment loss	—		—		—		14,682
Exchange effect	—		(18,008)		—		73,041
Benefit obligation – end of year	$	36,423	$	1,544,147	$	38,897	$	1,744,574
Change in Plan Assets:
Plan assets at fair value – beginning of year	$	17,455	$	1,296,516	$	16,744	$	1,231,181
Company contributions	1,233		4,890		1,587		5,745
Investment gain	1,299		123,708		811		69,824
Member contributions	—		81		—		312
Benefit payments and plan expenses	(1,698)		(65,138)		(1,687)		(62,878)
Exchange effect	—		(17,456)		—		52,332
Plan assets at fair value – end of year	$	18,289	$	1,342,601	$	17,455	$	1,296,516
Funded Status:
Unfunded benefit obligation	$	(18,134)	$	(201,546)	$	(21,442)	$	(448,058)
Amounts recognized in balance sheet at year end:
Accrued pension benefits	$	(18,134)	$	(201,546)	$	(21,442)	$	(448,058)

	Fiscal 2021						Fiscal 2020
	U.S. Plans			Non-U.S. Plans			U.S. Plans			Non-U.S. Plans
Pre-tax components in accumulated other comprehensive income at period end:
Net actuarial loss	$	7,419		$	281,745		$	10,424		$	479,554
Pre-tax components recognized in other comprehensive income for the period:
Current year actuarial (gain) loss	$	(1,887)		$	(181,518)		$	4,334		$	211,494
Actuarial loss recognized	(1,118)			(12,832)			(763)			(3,841)
Prior service cost	—			—			—			3,335
Prior service cost recognized	—			(3,457)			—			(1,550)
Total amount recognized	$	(3,005)		$	(197,807)		$	3,571		$	209,438
Accumulated Benefit Obligation	$	36,423		$	1,544,117		$	38,897		$	1,744,536
Salary growth rate	n/a			0.8		%	n/a			0.8		%
Assumed discount rate	2.6		%	1.9		%	2.2		%	1.2		%
Expected return on assets	6.0		%	6.2		%	6.0		%	6.2		%

Schedule of Allocation of Plan Assets

The assets of the plans were invested in the following classes of securities (none of which were securities of the company):

U.S. Plans:

	Target Allocation		Percentage of Plan Assets
			2021		2020
Equity	48	%	53	%	48	%
Fixed income	40		36		39
Money market	4		1		3
Other (real estate investment trusts & commodities contracts)	8		10		10
	100	%	100	%	100	%

Non-U.S. Plans:

	Target Allocation		Percentage of Plan Assets
			2021		2020
Equity	17	%	11	%	12	%
Fixed income	38		56		57
Alternatives/Other	32		15		15
Real Estate	13		15		13
Cash and cash equivalents	—		3		3
	100	%	100	%	100	%

Pension Plans Fair Value Of Investments

The following tables summarize the basis used to measure the pension plans’ assets at fair value as of January 1, 2022 and January 2, 2021 (in thousands):

U.S. Plans:

	Fiscal 2021						Fiscal 2020
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Net Asset Value		Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Net Asset Value
Short Term Investment Fund (a)	$	274	$	—	$	274	$	533	$	—	$	533
Equity Securities:
Large Cap	3,928		3,928		—		3,443		3,443		—
Mid Cap	413		413		—		407		407		—
Small Cap	424		424		—		489		489		—
International	4,918		4,918		—		4,198		4,198		—
Fixed Income:
Government/Corporate	5,137		5,137		—		5,517		5,517		—
High Yield	1,383		1,383		—		1,211		1,211		—
Alternative:
Global Real Estate Investment Trust	758		758		—		1,063		1,063		—
Commodities Contracts	1,054		1,054		—		594		594		—
Total	$	18,289	$	18,015	$	274	$	17,455	$	16,922	$	533

(a)Represents collective short term investment fund, composed of high-grade money market instruments with short maturities.

Non-U.S. Plans:

	Fiscal 2021
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value
Cash and cash equivalents	$	51,780	$	6,566	$	5,092	$	—	$	40,122
Equity Securities:
UK	6,470		1,878		—		—		4,592
International:
Developed	117,751		3,034		—		—		114,717
Emerging	31,392		435		—		—		30,957
Unquoted/Private Equity	2,195		1		—		—		2,194
Fixed Income:
Government/Corporate:
UK	259,833		15,471		—		—		244,362
International	114,973		—		—		—		114,973
Index Linked	364,666		2,138		—		—		362,528
Other	7,811		—		—		—		7,811
Convertible Bonds	185		—		—		—		185
Real Estate:
Direct	183,045		—		183,045		—		—
Indirect	8,030		80		3,038		—		4,912
Hedge Fund Strategy:
Equity Long/Short	29,345		—		—		—		29,345
Arbitrage & Event	25,788		—		—		—		25,788
Directional Trading & Fixed Income	3,266		—		—		—		3,266
Cash & Other	196,930		—		—		—		196,930
Direct Sourcing	1,156		—		—		—		1,156
Leveraged Loans	30,224		—		—		—		30,224
Alternative/Other	(92,239)		453		—		—		(92,692)
Total	$	1,342,601	$	30,056	$	191,175	$	—	$	1,121,370

	Fiscal 2020
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value
Cash and cash equivalents	$	36,537	$	9,653	$	832	$	—	$	26,052
Equity Securities:
UK	8,615		1,747		—		—		6,868
International:
Developed	110,718		3,076		—		—		107,642
Emerging	34,417		418		—		—		33,999
Unquoted/Private Equity	1,792		1		—		—		1,791
Fixed Income:
Government/Corporate:
UK	264,703		16,330		—		—		248,373
International	141,030		—		—		—		141,030
Index Linked	330,360		2,945		—		—		327,415
Other	8,296		—		—		—		8,296
Convertible Bonds	214		—		—		—		214
Real Estate:
Direct	156,588		—		156,588		—		—
Indirect	9,283		52		4,485		—		4,746
Hedge Fund Strategy:
Equity Long/Short	44,097		—		—		—		44,097
Arbitrage & Event	16,594		—		—		—		16,594
Directional Trading & Fixed Income	9,721		—		—		—		9,721
Cash & Other	196,952		—		—		—		196,952
Direct Sourcing	2,397		—		—		—		2,397
Leveraged Loans	28,720		—		—		—		28,720
Alternative/Other	(104,518)		5		—		—		(104,523)
Total	$	1,296,516	$	34,227	$	161,905	$	—	$	1,100,384

Schedule of Expected Benefit Payments

Estimated future benefit payments under the plans are as follows (dollars in thousands):

	U.S. Plans		Non-U.S. Plans
2022	$	1,798	$	62,209
2023	1,802		63,462
2024	1,810		63,739
2025	1,831		64,817
2026 through 2031	11,597		388,203

XML

Nature of Operations (Details)	12 Months Ended
	Jan. 01, 2022 segment
Regulatory Assets [Line Items]
Number of operating segments	3
United States
Regulatory Assets [Line Items]
Number of manufacturing plants	39
International
Regulatory Assets [Line Items]
Number of manufacturing plants	28

XML

Termination of Welbilt Merger (Details) - USD ($) $ in Millions		12 Months Ended
	Jul. 14, 2021	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Business Acquisition [Line Items]
Merger termination fee		$ 110.0	$ 0.0	$ 0.0
Welbilt
Business Acquisition [Line Items]
Merger termination fee	$ 110.0
Business Acquisition, Transaction Costs		$ 19.7

XML

Acquisitions and Purchase Accounting Acquisition and Purchase Accounting - Other 2020 Acquisitions (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Business Acquisition [Line Items]
Goodwill	$ 2,243,469	$ 1,934,261	$ 1,849,747
2020 Acquisitions
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	14,647
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	30,280
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	2,665
Goodwill	59,182
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	63,826
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	6,173
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(41,441)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net	(264)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	(21,111)
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Initial Consideration, Net	114,485
Business Combination, Deferred Payments, Liability	8,198
Business Combination, Contingent Consideration, Liability	15,308
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	137,991
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets	300
Business Acquisition, Goodwill, Expected Tax Deductible Amount	24,400
Business Combination, Intangible Assets, Other than Goodwill, Expected Tax Deductible Amount	63,500
2020 Acquisitions | Previously Reported
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	14,647
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	43,670
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	3,014
Goodwill	55,335
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	63,201
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	6,121
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(54,478)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net	123
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	(21,902)
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Initial Consideration, Net	109,485
Business Combination, Deferred Payments, Liability	8,666
Business Combination, Contingent Consideration, Liability	16,144
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	134,295
2020 Acquisitions | Measurement period adjustment
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	(13,390)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	(349)
Goodwill	3,847
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	625
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	52
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	13,037
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net	(387)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	791
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Initial Consideration, Net	5,000
Business Combination, Deferred Payments, Liability	(468)
Business Combination, Contingent Consideration, Liability	(836)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	3,696
Tradenames And Trademarks | 2020 Acquisitions
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	15,700
Customer Relationships | 2020 Acquisitions
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	10,600
Developed Technology Rights | 2020 Acquisitions
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	31,200
Backlog | 2020 Acquisitions
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	6,300
Commercial Foodservice Equipment Group
Business Acquisition [Line Items]
Goodwill	1,285,087	$ 1,228,436	$ 1,153,552
Commercial Foodservice Equipment Group | 2020 Acquisitions
Business Acquisition [Line Items]
Goodwill	59,200
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 63,800
Minimum | Customer Relationships | 2020 Acquisitions
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	6 years
Minimum | Developed Technology Rights | 2020 Acquisitions
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	6 years
Minimum | Backlog | 2020 Acquisitions
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	3 months
Maximum | Customer Relationships | 2020 Acquisitions
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	9 years
Maximum | Developed Technology Rights | 2020 Acquisitions
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	12 years
Maximum | Backlog | 2020 Acquisitions
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	9 months

XML

Acquisitions and Purchase Accounting Estimated Fair Values of Asset Acquired and Liabilities Assumed - Novy (Details) - USD ($)		12 Months Ended
	Jul. 12, 2021	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Business Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired		$ 963,600,000	$ 79,003,000	$ 281,058,000
Goodwill		2,243,469,000	1,934,261,000	1,849,747,000
Residential Kitchen
Business Acquisition [Line Items]
Goodwill		$ 707,667,000	$ 450,027,000	$ 438,516,000
Novy
Business Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired	$ 250,900,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	16,152,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	23,762,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	16,089,000
Goodwill	125,632,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	149,523,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	199,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(22,871,000)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net	(39,437,000)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	(2,041,000)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	267,008,000
Novy | Residential Kitchen
Business Acquisition [Line Items]
Goodwill	125,600,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	149,500,000
Novy | Tradenames And Trademarks
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	105,700,000
Novy | Customer Relationships
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 40,000,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	7 years
Novy | Developed Technology Rights
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 2,700,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	7 years
Novy | Backlog
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 1,100,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	3 months
Novy | Book and tax difference, identifiable intangible assets
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net	$ 37,400,000
Novy | Book and tax difference, identifiable tangible assets and liabilities
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net	2,000,000
Novy | Previously Reported
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	16,152,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	23,762,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	17,058,000
Goodwill	142,741,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	126,557,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	26,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(23,440,000)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net	(33,918,000)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	(1,930,000)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	267,008,000
Novy | Measurement period adjustment
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	(969,000)
Goodwill	(17,109,000)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	22,966,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	173,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	569,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net	(5,519,000)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	(111,000)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	$ 0

XML

Acquisitions and Purchase Accounting Estimated Fair Values of Assets Acquired and Liabilities Assumed - Kamado Joe and Masterbuilt (Details) - USD ($) $ in Thousands		12 Months Ended
	Dec. 27, 2021	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Business Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired		$ 963,600	$ 79,003	$ 281,058
Stock Issued During Period, Value, Acquisitions		2,522	15,869	0
Goodwill		2,243,469	1,934,261	1,849,747
Residential Kitchen
Business Acquisition [Line Items]
Goodwill		$ 707,667	$ 450,027	$ 438,516
Kamado Joe and Masterbuilt
Business Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired	$ 400,700
Payments to Acquire Businesses, Gross	$ 403,600
Stock Issued During Period, Shares, Acquisitions	12,921
Stock Issued During Period, Value, Acquisitions	$ 2,500
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net	15,900
Business Combination, Intangible Assets, Other than Goodwill, Expected Tax Deductible Amount	164,300
Business Acquisition, Goodwill, Expected Tax Deductible Amount	71,700
Kamado Joe and Masterbuilt | Residential Kitchen
Business Acquisition [Line Items]
Goodwill	110,100
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	215,600
Kamado Joe and Masterbuilt | Tradenames And Trademarks
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	158,800
Kamado Joe and Masterbuilt | Customer Relationships
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 50,300
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	7 years
Kamado Joe and Masterbuilt | Backlog
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 6,500
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	3 months
Kamado Joe and Masterbuilt | Tax loss carryforwards
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net	$ (2,300)
Kamado Joe and Masterbuilt | Book and tax difference, identifiable intangible assets
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net	18,200
Previously Reported | Kamado Joe and Masterbuilt
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	5,381
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	137,826
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	7,773
Goodwill	110,052
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	215,577
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	2,143
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(54,865)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net	(15,907)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	(1,914)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	$ 406,066

XML

Acquisitions and Purchase Accounting Estimated Fair Values of Assets Acquired and Liabilities Assumed - 2021 Acquisition (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Business Acquisition [Line Items]
Goodwill	$ 2,243,469	$ 1,934,261	$ 1,849,747
Residential Kitchen
Business Acquisition [Line Items]
Goodwill	707,667	450,027	438,516
Commercial Foodservice Equipment Group
Business Acquisition [Line Items]
Goodwill	1,285,087	$ 1,228,436	$ 1,153,552
2021 Acquisitions
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	6,414
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	76,300
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	19,489
Goodwill	94,335
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	149,532
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	2,132
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(33,948)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net	(3,010)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	(7,108)
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Initial Consideration, Net	304,136
Business Combination, Contingent Consideration, Liability	9,404
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	313,540
Business Acquisition, Goodwill, Expected Tax Deductible Amount	92,300
Business Combination, Intangible Assets, Other than Goodwill, Expected Tax Deductible Amount	148,400
2021 Acquisitions | Residential Kitchen
Business Acquisition [Line Items]
Goodwill	30,500
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	89,000
2021 Acquisitions | Commercial Foodservice Equipment Group
Business Acquisition [Line Items]
Goodwill	63,800
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	60,500
2021 Acquisitions | Tradenames And Trademarks
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	97,100
2021 Acquisitions | Customer Relationships
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 41,100
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	7 years
2021 Acquisitions | Developed Technology Rights
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 3,400
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	7 years
2021 Acquisitions | Backlog
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 7,900
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	3 months
2021 Acquisitions | Tax loss carryforwards
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net	$ (600)
2021 Acquisitions | Book and tax difference, identifiable intangible assets
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net	3,600
Previously Reported | 2021 Acquisitions
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	6,414
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	76,077
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	19,561
Goodwill	85,270
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	158,725
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	2,101
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(33,910)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net	(3,010)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	(7,092)
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Initial Consideration, Net	304,136
Business Combination, Contingent Consideration, Liability	9,404
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	313,540
Measurement period adjustment | 2021 Acquisitions
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	223
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	(72)
Goodwill	9,065
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	(9,193)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	31
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(38)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net	0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	(16)
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Initial Consideration, Net	0
Business Combination, Contingent Consideration, Liability	0
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	$ 0

XML

Acquisitions and Purchase Accounting - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net sales	$ 3,732,010	$ 2,980,164
Net earnings	$ 519,879	$ 177,923
Basic	$ 9.42	$ 3.23
Diluted	$ 9.17	$ 3.23

XML

Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Accounting Policies [Abstract]
Allowance for Doubtful Accounts Receivable, Current	$ 18,770	$ 19,225

XML

Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Accounting Policies [Abstract]
Inventory, Raw Materials, Net of Reserves	$ 421,361	$ 263,200
Inventory, Work in Process, Net of Reserves	65,581	55,104
Inventory, Finished Goods, Net of Reserves	350,476	221,894
Inventory, Net	$ 837,418	$ 540,198

XML

Summary of Significant Accounting Policies - Property Plant and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Accounting Policies [Abstract]
Land	$ 54,477	$ 40,707
Building and improvements	270,812	245,435
Furniture and fixtures	56,706	68,063
Machinery and equipment	265,188	220,148
Property, pland and equipment, gross	647,183	574,353
Less accumulated depreciation	(266,203)	(229,871)
Property, plant and equipment, net	380,980	344,482
Depreciation	$ 42,681	$ 39,086	$ 37,852

XML

Summary of Significant Accounting Policies - Summary of Estimated Useful Lives (Details)	12 Months Ended
	Jan. 01, 2022
Minimum | Building and Building Improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	20 years
Minimum | Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Minimum | Machinery and Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Maximum | Building and Building Improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	40 years
Maximum | Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	7 years
Maximum | Machinery and Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years

XML

Summary of Significant Accounting Policies - Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Goodwill [Line Items]
Goodwill, Impaired, Accumulated Impairment Loss	$ 0
Goodwill [Roll Forward]
Balance beginning of period	1,934,261	$ 1,849,747
Goodwill, Acquired During Period	330,019	56,773
Measurement period adjustments to goodwill acquired in prior year	2,411	(7,018)
Goodwill Translation Accounting Adjustments	23,222	(34,759)
Balance end of period	2,243,469	1,934,261
Commercial Foodservice Equipment Group
Goodwill [Roll Forward]
Balance beginning of period	1,228,436	1,153,552
Goodwill, Acquired During Period	63,849	56,773
Measurement period adjustments to goodwill acquired in prior year	2,411	(56)
Goodwill Translation Accounting Adjustments	9,609	(18,167)
Balance end of period	1,285,087	1,228,436
Food Processing Group
Goodwill [Roll Forward]
Balance beginning of period	255,798	257,679
Goodwill, Acquired During Period	0	0
Measurement period adjustments to goodwill acquired in prior year	0	(8,732)
Goodwill Translation Accounting Adjustments	5,083	(6,851)
Balance end of period	250,715	255,798
Residential Kitchen
Goodwill [Roll Forward]
Balance beginning of period	450,027	438,516
Goodwill, Acquired During Period	266,170	0
Measurement period adjustments to goodwill acquired in prior year	0	1,770
Goodwill Translation Accounting Adjustments	8,530	(9,741)
Balance end of period	$ 707,667	$ 450,027

XML

Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying amount	$ 950,484	$ 797,638
Finite-Lived Intangible Assets, Accumulated Amortization	(442,208)	(374,061)
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		11,600
Finite-Lived Intangible Assets, Amortization Expense	$ 75,800	69,000	$ 64,000
Commercial Foodservice Equipment Group
Finite-Lived Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		5,300
Food Processing Group
Finite-Lived Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		5,400
Residential Kitchen
Finite-Lived Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		$ 900
Customer Lists
Finite-Lived Intangible Assets [Line Items]
Estimated Weighted Avg Remaining LIfe	7 years 7 months 6 days	8 years 6 months
Gross Carrying amount	$ 863,339	$ 735,264
Finite-Lived Intangible Assets, Accumulated Amortization	$ (411,327)	$ (347,029)
Service Backlog
Finite-Lived Intangible Assets [Line Items]
Estimated Weighted Avg Remaining LIfe	2 months 12 days	3 months 18 days
Gross Carrying amount	$ 13,684	$ 5,443
Finite-Lived Intangible Assets, Accumulated Amortization	$ (929)	$ (2,638)
Developed Technology Rights
Finite-Lived Intangible Assets [Line Items]
Estimated Weighted Avg Remaining LIfe	8 years 10 months 24 days	10 years
Gross Carrying amount	$ 73,461	$ 56,931
Finite-Lived Intangible Assets, Accumulated Amortization	(29,952)	(24,394)
Tradenames And Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 1,367,101	$ 1,026,804

XML

Summary of Significant Accounting Policies - Estimated Future Amortization Expense of Intangible Assets (Details) $ in Thousands	Jan. 01, 2022 USD ($)
Accounting Policies [Abstract]
2022	$ 95,132
2023	76,386
2024	64,914
2025	58,553
2026	55,277
2027 and thereafter	158,014
Future amortization expense, net	$ 508,276

XML

Summary of Significant Accounting Policies - Accrued Expenses (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Accrued Expenses [Line Items]
Contract liabilities	$ 133,315	$ 93,871
Accrued payroll and related expenses	115,762	93,926
Accrued warranty	80,215	69,667
Accrued customer rebates	72,451	43,703
Accrued short-term leases	22,753	22,493
Accrued sales and other tax	22,684	22,030
Accrued professional fees	19,292	12,133
Accrued agent commission	13,670	11,105
Accrued product liability and workers compensation	10,952	12,909
Accrued interest rate swaps	1,171	14,075
Accrued liabilities held for sale	0	22,313
Other accrued expenses	90,590	76,316
Accrued expenses	$ 582,855	$ 494,541
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued expenses	Accrued expenses

XML

Summary of Significant Accounting Policies - Summary of Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrecognized pension benefit costs, net of tax	$ 249,696	$ 400,919
Unrealized loss on interest rate swap, net of tax	(13,064)	(37,548)
Unrealized gain on certain investments, net of tax	1,330	0
Currency translation adjustments	(97,654)	(49,961)
Accumulated Other Comprehensive Income (Loss), Net of Tax	(359,084)	(488,428)	$ (350,933)
Accumulated Foreign Currency Adjustment Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(97,654)	(49,961)	(105,705)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(249,696)	(400,919)	(228,336)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Interest Rate Swap
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(13,064)	(37,548)	(16,892)
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ 1,330	$ 0	$ 0

XML

Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income (Loss), Tax (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrecognized pension benefit costs, Tax	$ 39,470	$ (89,059)
Unrealized loss on interest rate swap, tax	(4,501)	(13,120)
Unrealized gain on certain investments, Tax	$ 433	$ 0

XML

Summary of Significant Accounting Policies - Changes in accumulated other comprehensive income (loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	$ (359,084)	$ (488,428)	$ (350,933)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(96,839)	155,252
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	32,505	17,757
Other Comprehensive Income (Loss), Net of Tax	129,344	(137,495)	(74,457)
Unrecognized pension benefit costs, Tax	(39,470)	89,059
Unrealized loss on interest rate swap, tax	(4,501)	(13,120)
Accumulated Other Comprehensive Income (Loss), Unrealized Gain (Loss) Certain Investments, tax	400
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax	49,600
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Tax	8,619	(7,147)	(8,516)
Other Comprehensive Income (Loss), Unrealized Gain (loss) Certain Investments, Tax	400
Accumulated Foreign Currency Adjustment Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	(97,654)	(49,961)	(105,705)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	47,693	(55,744)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0
Other Comprehensive Income (Loss), Net of Tax	(47,693)	55,744
Accumulated Defined Benefit Plans Adjustment Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	(249,696)	(400,919)	(228,336)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	137,187	(174,826)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	14,036	2,243
Other Comprehensive Income (Loss), Net of Tax	151,223	(172,583)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Interest Rate Swap
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	(13,064)	(37,548)	(16,892)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(6,015)	36,170
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	18,469	15,514
Other Comprehensive Income (Loss), Net of Tax	24,484	(20,656)
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	1,330	0	$ 0
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(1,330)	0
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0
Other Comprehensive Income (Loss), Net of Tax	$ 1,330	$ 0

XML

Summary of Significant Accounting Policies - Financial Assets and Liabilities that are Measured At Fair Value and are Categorized Using Fair Value Heirarchy (Details) - Fair Value, Measurements, Recurring - USD ($)	Jan. 01, 2022	Jan. 02, 2021
Interest Rate Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets	$ 3,645,000
Financial Liabilities	21,635,000	$ 51,093,000
Interest Rate Swap | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets	0
Financial Liabilities	0	0
Interest Rate Swap | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets	3,645,000
Financial Liabilities	21,635,000	51,093,000
Interest Rate Swap | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets	0
Financial Liabilities	0	0
Contingent Consideration
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Liabilities	34,983,000	25,558,000
Contingent Consideration | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Liabilities	0	0
Contingent Consideration | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Liabilities	0	0
Contingent Consideration | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Liabilities	34,983,000	25,558,000
Foreign Exchange Forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets	1,095,000
Financial Liabilities		2,191,000
Foreign Exchange Forward | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets	0
Financial Liabilities		0
Foreign Exchange Forward | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets	1,095,000
Financial Liabilities		2,191,000
Foreign Exchange Forward | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets	$ 0
Financial Liabilities		$ 0

XML

Summary of Significant Accounting Policies - Foreign Currency (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Accounting Policies [Abstract]
Foreign Currency Transaction Gain (Loss), before Tax	$ 0.3	$ 2.9	$ (0.9)

XML

Summary of Significant Accounting Policies - Rollforward of the Warranty Reserve (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 69,667	$ 66,374
Warranty reserve related to acquisitions	5,046	1,485
Warranty expense	68,199	58,047
Warranty claims paid	(62,697)	(56,239)
Ending balance	$ 80,215	$ 69,667

XML

Summary of Significant Accounting Policies - Research and Development Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Accounting Policies [Abstract]
Research and Development Expense	$ 41.8	$ 35.3	$ 41.2

XML

Summary of Significant Accounting Policies - Earnings Per Share (Details) - shares	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Accounting Policies [Abstract]
Weighted average number diluted shares outstanding (shares)	1,449,000	43,000	9,000
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	56,000
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities	1,393,000

XML

Summary of Significant Accounting Policies - Consolidated Statement of Cash Flows (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Accounting Policies [Abstract]
Interest Paid, Excluding Capitalized Interest, Operating Activities	$ 50.6	$ 65.6	$ 80.9
Income Taxes Paid	$ 125.8	$ 41.2	$ 91.5

XML

Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Unamortized debt discount	$ 0	$ 98,358
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect Period of Adoption, Retained Earnings		5,100
Cumulative Effect Period of Adoption, Additional Paid In Capital		79,400
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | Convertible Debt
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Unamortized debt discount		$ 98,400

XML

Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Disaggregation of Revenue [Line Items]
Net sales	$ 3,250,792	$ 2,513,257	$ 2,959,446
United States And Canada
Disaggregation of Revenue [Line Items]
Net sales	2,236,775	1,752,778	1,944,101
Asia
Disaggregation of Revenue [Line Items]
Net sales	233,227	189,231	258,432
Europe And Middle East
Disaggregation of Revenue [Line Items]
Net sales	687,452	508,454	647,099
Latin America
Disaggregation of Revenue [Line Items]
Net sales	93,338	62,794	109,814
Commercial Foodservice Equipment Group
Disaggregation of Revenue [Line Items]
Net sales	2,032,761	1,510,279	1,984,345
Commercial Foodservice Equipment Group | United States And Canada
Disaggregation of Revenue [Line Items]
Net sales	1,435,120	1,067,872	1,334,776
Commercial Foodservice Equipment Group | Asia
Disaggregation of Revenue [Line Items]
Net sales	204,432	155,742	221,422
Commercial Foodservice Equipment Group | Europe And Middle East
Disaggregation of Revenue [Line Items]
Net sales	344,273	246,845	349,613
Commercial Foodservice Equipment Group | Latin America
Disaggregation of Revenue [Line Items]
Net sales	48,936	39,820	78,534
Food Processing Group
Disaggregation of Revenue [Line Items]
Net sales	480,746	437,272	400,951
Food Processing Group | United States And Canada
Disaggregation of Revenue [Line Items]
Net sales	347,280	311,042	246,572
Food Processing Group | Asia
Disaggregation of Revenue [Line Items]
Net sales	17,641	26,778	31,250
Food Processing Group | Europe And Middle East
Disaggregation of Revenue [Line Items]
Net sales	77,671	78,690	98,814
Food Processing Group | Latin America
Disaggregation of Revenue [Line Items]
Net sales	38,154	20,762	24,315
Residential Kitchen
Disaggregation of Revenue [Line Items]
Net sales	737,285	565,706	574,150
Residential Kitchen | United States And Canada
Disaggregation of Revenue [Line Items]
Net sales	454,375	373,864	362,753
Residential Kitchen | Asia
Disaggregation of Revenue [Line Items]
Net sales	11,154	6,711	5,760
Residential Kitchen | Europe And Middle East
Disaggregation of Revenue [Line Items]
Net sales	265,508	182,919	198,672
Residential Kitchen | Latin America
Disaggregation of Revenue [Line Items]
Net sales	$ 6,248	$ 2,212	$ 6,965

XML

Revenue Recognition Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Revenue Recognition [Abstract]
Contract assets	$ 21,592	$ 20,328
Contract liabilities	133,315	93,871
Non-current contract liabilities	11,602	$ 13,523
Contract with Customer, Asset, Reclassified to Receivable	16,300
Contract with Customer, Liability, Revenue Recognized	77,300
Contract with Customer, Liability, Increase for Contract Acquired during the Period	129,000
Contract asset impairment	$ 0

XML

Financing Arrangements - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Oct. 21, 2021	Jan. 02, 2021
Debt Instrument [Line Items]
Senior secured revolving credit line	$ 683,175		$ 755,000
Term loan facility	993,340	$ 1,000,000	335,938
Convertible Senior Notes	734,417		632,847
Other debt arrangement	1,138		1,390
Total debt	2,414,294		1,729,596
Less: Current maturities of long-term debt	27,293		22,944
Long-term debt	2,387,001		1,706,652
Foreign loans [Member]
Debt Instrument [Line Items]
Foreign loans	$ 2,224		$ 4,421

XML

Financing Arrangements - Additional Information (Details) - USD ($)			12 Months Ended
	Oct. 21, 2021	Aug. 21, 2020	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 4,500,000,000	$ 3,100,000,000
Term loan facility	1,000,000,000		$ 993,340,000	$ 335,938,000
Delayed draw term loan facility	750,000,000
Long-term Line of Credit, Revolving Credit Facility	$ 2,750,000,000
Term loan facility amortization rate			2.50%
Delayed draw term loan facility, amortization quarter percent	0.625%
Payments for Premiums for Capped Call Confirmations, Debt Issuance			$ 54,553,000	104,650,000	$ 0
2021 Capped Call Transaction One
Debt Instrument [Line Items]
Payments for Premiums for Capped Call Confirmations, Debt Issuance			54,600,000
dollar amount
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 625,000,000
Line of Credit Facility, Potential Increase, Percentage	100.00%
Convertible Debt
Debt Instrument [Line Items]
Principal		$ 747,500,000	$ 747,500,000	$ 747,500,000
Debt Instrument, Interest Rate, Stated Percentage		1.00%
Proceeds from Debt, Net of Issuance Costs		$ 729,900,000
Debt Instrument, Capped Call Transaction, Net Cost		$ 104,700,000

XML

Credit Facility (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Oct. 21, 2021	Jan. 02, 2021
Debt Disclosure [Line Items]
Long-term line of credit	$ 1,700,000
Term loan facility, gross	1,000,000
Term loan facility	993,340	$ 1,000,000	$ 335,938
Letters of credit outstanding	2,700
Remaining borrowing capacity	$ 2,800,000
Credit facility, additional interest rate above LIBOR	1.375%
Debt Instrument Interest Additional Interest Above LIBOR Rate Alternative	0.375%
Debt Instrument Interest Additional Interest Above Fed Funds Rate	0.50%
Debt Instrument, Interest Rate, Increase (Decrease)	1.00%
Debt Instrument Interest Additional Interest Above LIBOR Rate, elevated covenants	1.375%
Line Of Credit Facility Commitment Fee Percentage, elevated covenants	0.20%
Credit facility, average interest rate	2.32%
Variable commitment fee	0.20%
Term loan facility average interest rate	2.93%
Line of credit, Current and Noncurrent, Foreign	$ 2,200
Interest rate at period end	10.18%
Derivative Notional Amount, Current	$ 94,000
Derivative Fixed Interest Rate, Current	1.45%
Derivative Notional Amount, NonCurrent	$ 708,000
Derivative Fixed Interest Rate, NonCurrent	1.98%
Debt Instrument, Interest Coverage Ratio Range, Low	300.00%
Debt Instrument, Interest Coverage Ratio Range, High	100.00%
Debt Instrument, Qualified Leverage Ratio Range, Low	375.00%
Debt Instrument, Qualified Leverage Ratio Range, High	425.00%
Debt Instrument, Leverage Ratio Range, High	100.00%

XML

Subsequent Event - Capped Call (Details) - Subsequent Event $ in Millions	Feb. 11, 2022 USD ($)
Subsequent Event [Line Items]
Derivative, Notional Amount	$ 375.0
Derivative, Fixed Interest Rate	1.50%

XML

Financing Arrangements - Level 2 Measurements (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Debt Disclosure [Line Items]
Total debt	$ 2,414,294	$ 1,729,596
Debt excluding convertible senior notes
Debt Disclosure [Line Items]
Total debt	1,679,877	1,096,749
Fair Value	$ 1,686,537	$ 1,096,749

XML

Convertible Notes (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021	Aug. 21, 2020
Debt Disclosure [Line Items]
Unamortized debt discount	$ 0	$ (98,358)
Convertible Senior Notes	734,417	632,847
Convertible Debt
Debt Disclosure [Line Items]
Principal	747,500	747,500	$ 747,500
Unamortized Debt Issuance Expense	$ (13,083)	$ (16,295)

XML

Convertible Debt Interest Expense (Details) - Convertible Debt - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Debt Disclosure [Line Items]
Contractual interest expense	$ 7,454	$ 2,720
Interest cost related to amortization of the debt discount and issuance costs	3,484	7,971
Total interest expense	$ 10,938	$ 10,691

XML

Convertible Debt Additional Information (Details) - USD ($)		12 Months Ended
	Aug. 21, 2020	Jan. 01, 2022	Dec. 22, 2021	Dec. 16, 2021
Debt Disclosure [Line Items]
Debt Instrument, Convertible, If-converted Value in Excess of Principal		$ 396,000,000
Debt Instrument, Convertible, Carrying Amount of Equity Component		105,000,000
Debt Instrument, Convertible, Estimated Conversion Shares	5,800,000
2020 Capped Call Transaction
Debt Disclosure [Line Items]
Debt Instrument, Capped Call Transaction, Estimated Conversion Shares	3,600,000
2021 Capped Call Transaction One
Debt Disclosure [Line Items]
Debt Instrument, Capped Call Transaction, Estimated Conversion Shares				3,500,000
2021 Capped Call Transaction Two
Debt Disclosure [Line Items]
Debt Instrument, Capped Call Transaction, Estimated Conversion Shares			3,300,000
Convertible Debt
Debt Disclosure [Line Items]
Notes Payable, Fair Value Disclosure		$ 1,200,000,000
Debt Instrument, Interest Rate, Effective Percentage		1.50%
Debt Conversion, Converted Instrument, Shares Issued	7.7746
Debt Instrument Convertible Principal Amount Used in Conversion Rate	$ 1,000
Debt Instrument, Convertible, Conversion Price	$ 128.62
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed	100.00%
Convertible Debt | 2020 Capped Call Transaction
Debt Disclosure [Line Items]
Debt Instrument, Capped Call Transaction Cap Price, Per Share	$ 207.93
Convertible Debt | 2021 Capped Call Transaction One
Debt Disclosure [Line Items]
Debt Instrument, Capped Call Transaction Cap Price, Per Share				$ 216.50
Convertible Debt | 2021 Capped Call Transaction Two
Debt Disclosure [Line Items]
Debt Instrument, Capped Call Transaction Cap Price, Per Share			$ 225.00
Convertible Debt | Scenario One
Debt Disclosure [Line Items]
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger	130.00%
Convertible Debt | Scenario Two
Debt Disclosure [Line Items]
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger	98.00%

XML

Financing Arrangements - Schedule of Future Aggregate Debt Payable (Details) $ in Thousands	Jan. 01, 2022 USD ($)
Debt Disclosure [Abstract]
2022	$ 27,293
2023	23,621
2024	23,634
2025	757,945
2026 and thereafter	1,581,801
Total Debt Payable	$ 2,414,294

XML

Common and Preferred Stock - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019	Nov. 07, 2017
Common Stock, Shares Authorized	95,000,000	95,000,000
Preferred Stock, Shares Authorized	2,000,000	2,000,000
Stock Repurchased During Period, Shares	141,500	896,965
Treasury Stock Acquired, Average Cost Per Share	$ 188.17	$ 77.70
Remaining number of shares authorized to be repurchased (shares)	1,335,335
Treasury Stock, Value, Acquired, Cost Method	$ 29,265	$ 85,872	$ 6,144
Share-based Compensation	42,330	19,613	8,133
Tax benefit	400	2,700	500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	7,300	44,800	$ 16,500
Total unrecognized compensation	$ 3,700
Weighted average life	4 months 2 days
2017 Program
Stock Repurchase Program, Number of Shares Authorized to be Repurchased				2,500,000
Stock Repurchased During Period, Value	$ 26,600	$ 69,700
Share Repurchase Program, Number of Shares Repurchased	1,164,665
Restricted Stock
Treasury Stock, Shares, Acquired	15,480	176,242
Treasury Stock, Value, Acquired, Cost Method	$ 2,700	$ 16,200
Grant awards, fair value per share at date of grant (usd per share)	$ 181.31	$ 57.74	$ 113.26
Restricted Stock Units (RSUs)
Grant awards, fair value per share at date of grant (usd per share)	$ 166.41	$ 134.25
Total unrecognized compensation	$ 66,200
Restricted Stock Units, Outstanding, Weighted Average Remaining Contractual Terms	1 year 8 months 26 days
Stock Incentive Plan 2021
Number of shares authorized (shares)	1,642,966
IncreaseInAuthSharesDuring2017 | Stock Incentive Plan 2021
Number of shares authorized (shares)	1,350,000

XML

Common and Preferred Stock - Summary of Nonvested Restricted Share Grant Activity Under 2011 Stock Incentive Plans and Related Information (Details) - $ / shares	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Nonvested shares, beginning balance (shares)	433,065
Granted (shares)	4,399
Vested (shares)	(43,485)
Forfeited (shares)	(213,673)
Nonvested shares, ending balance (shares)	180,306	433,065
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Nonvested shares, beginning balance (usd per share)	$ 113.31	$ 112.54
Granted (usd per share)	181.31	57.74	$ 113.26
Vested (usd per share)	115.77
Forfeited (usd per share)	112.49
Nonvested shares, ending balance (usd per share)	$ 113.31	$ 112.54
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Nonvested shares, beginning balance (shares)	47,500
Granted (shares)	287,624
Nonvested shares, ending balance (shares)	335,124	47,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Nonvested shares, beginning balance (usd per share)	$ 161.85	$ 134.25
Granted (usd per share)	166.41	134.25
Nonvested shares, ending balance (usd per share)	$ 161.85	$ 134.25

XML

Income Taxes - Summary of Earnings Before Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Income Tax Disclosure [Abstract]
Domestic	$ 453,357	$ 178,813	$ 336,688
Foreign	166,147	89,244	125,931
Total	$ 619,504	$ 268,057	$ 462,619

XML

Income Taxes - Summary of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Income Tax Disclosure [Abstract]
Federal	$ 84,689	$ 36,908	$ 69,074
State and local	24,363	8,815	16,203
Foreign	21,960	15,040	25,102
Total	131,012	60,763	110,379
Current	124,149	44,342	88,167
Deferred	$ 6,863	$ 16,421	$ 22,212

XML

Income Taxes - Reconciliation of Differences Between Income Taxes Computed at the Federal Statutory Rate to the Effective Rate (Details)	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Income Tax Disclosure [Abstract]
U.S. federal statutory tax rate	21.00%	21.00%	21.00%
State taxes, net of federal benefit	3.10%	3.20%	3.20%
Permanent differences	0.50%	(0.40%)	0.60%
Foreign income tax rate at rates other than U.S. statutory	0.20%	0.50%	0.20%
Deferred tax changes	(2.20%)	(0.70%)	0.00%
Effective Income Tax Rate Reconciliation, Tax Settlement, Percent	(0.70%)	0.00%	0.00%
Change in valuation allowances (1)	0.40%	(0.10%)	0.10%
Tax on unremitted earnings	0.40%	1.20%	0.30%
Other	(1.60%)	(2.00%)	(1.50%)
Consolidated effective tax	21.10%	22.70%	23.90%

XML

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Deferred tax assets:
Compensation related	$ 21,543	$ 12,328
Pension and post-retirement benefits	49,072	88,709
Inventory reserves	14,453	14,732
Accrued liabilities and reserves	17,088	22,049
Warranty reserves	19,286	17,890
Operating lease liability	18,643	16,180
Interest Rate Swaps	4,573	12,997
Convertible debt	37,034	0
Net operating loss carryforwards	17,083	20,747
Other	12,695	17,187
Gross deferred tax assets	211,470	222,819
Valuation allowance	(10,222)	(11,731)
Deferred tax assets	201,248	211,088
Deferred tax liabilities:
Intangible assets	(273,974)	(226,598)
Depreciable assets	(26,996)	(26,916)
Basis difference on affiliates	(18,795)	0
Operating lease right-of-use assets	(18,029)	(15,921)
Other	(17,195)	(12,825)
Deferred Tax Liabilities, Gross	354,989	282,260
Deferred Tax Liabilities, Net	(153,741)	(71,172)
Deferred Income Tax Assets, Net	33,194	76,052
Deferred Income Tax Liabilities, Net	$ (186,935)	$ (147,224)

XML

Income Taxes - Summary of Activity Related to Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance, Beginning Period	$ 30,329	$ 31,559
Increases to current year tax positions	1,760	3,657
Increase to prior year tax positions	6,796	183
Decrease to prior year tax positions	(576)	(53)
Settlements	(1,180)	(533)
Lapse of statute of limitations	920	4,484
Balance, Ending Period	$ 36,209	$ 30,329

XML

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Income Tax Disclosure [Abstract]
Permanently Reinvested Foreign Earnings	$ 9,700	$ 7,500
Deferred Tax Liabilities, Undistributed Foreign Earnings	538,000
Operating Loss Carryforwards	17,083	20,747
Deferred Tax Assets, Operating Loss Carryforwards	29,000
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration	5,600
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration	23,400
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	34,200
Deferred Tax Assets, Operating Loss Carryforwards, Foreign	44,700
Deferred Tax Assets, Valuation Allowance	33,400
Unrecognized tax benefits rleated to federal, state and foreign taxes	36,209	30,329	$ 31,559
Unrecognized tax benefits related to federal, state and foreign taxes that would impact the effective tax rate if recognized	36,200
Unrecognized tax benefits, accured interest	7,100
Unrecognized tax benefits, penalties	6,000
Unrecognized tax benefits, interest recognized	900	800	400
Unrecognized tax benefits, penalties recognized	(1,000)	$ (200)	$ (900)
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit	$ 3,800

XML

Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Derivatives, Fair Value [Line Items]
Interest rate derivative liabilities, at fair value	$ 18,000	$ 51,100
Increase (decrease) in fair value of interest rate fair value hedging instruments	(24,600)
Accrued interest rate swaps	1,171	14,075
Interest Rate Swap | Other Noncurrent Assets
Derivatives, Fair Value [Line Items]
Interest Rate Fair Value Hedge Asset at Fair Value	3,645	0
Interest Rate Swap | Other Noncurrent Liabilities
Derivatives, Fair Value [Line Items]
Interest Rate Cash Flow Hedge Liability at Fair Value	20,464	37,018
Foreign Exchange Forward
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	350,500	155,600
Fair value of forward contracts	(1,100)
Other Comprehensive Income (Loss) | Interest Rate Swap
Derivatives, Fair Value [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	14,634	(43,317)
Interest Expense | Interest Rate Swap
Derivatives, Fair Value [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	$ (18,469)	$ (15,514)

XML

Lease Commitments Operating Lease (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Lessee, Lease, Description [Line Items]
Operating Lease, Cost	$ 31,500	$ 30,100	$ 30,600
Operating Lease, Right-of-Use Asset	93,388	97,193
Operating Lease, Liability, Current	22,753	22,493
Operating Lease, Liability, Noncurrent	74,202	76,529
Operating Lease, Liability	$ 96,955	$ 99,022
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued expenses	Accrued expenses
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other non-current liabilities	Other non-current liabilities

XML

Lease Commitments Lease Commitments (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Leases [Abstract]
2022	$ 24,903
2023	21,458
2024	17,588
2025	12,581
2026	10,122
2027 and thereafter	19,062
Total future lease commitments	105,714
Less imputed interest	8,759
Operating Lease, Liability	$ 96,955	$ 99,022

XML

Lease Commitments Other Lease Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Leases [Abstract]
Operating Lease, Payments	$ 25,957	$ 26,024
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 16,353	$ 25,433
Operating Lease, Weighted Average Remaining Lease Term	5 years 7 months 6 days	6 years
Operating Lease, Weighted Average Discount Rate, Percent	2.80%	3.00%

XML

Segment Information Segment Information - Narrative (Details)	12 Months Ended
	Jan. 01, 2022 segment
Segment Reporting [Abstract]
Number of operating segments	3

XML

Segment Information - Results of Business Segments (Details) - USD ($) $ in Thousands		12 Months Ended
		Jan. 01, 2022		Jan. 02, 2021		Dec. 28, 2019
Segment Reporting Information [Line Items]
Net sales		$ 3,250,792		$ 2,513,257		$ 2,959,446
Operating Income (Loss)	[2]	629,992	[1],[3]	324,431	[1]	514,043
Depreciation		42,681		39,086		37,852
Amortization expense (5)	[4]	82,562		71,446		65,576
Net capital expenditures		46,551		34,849		46,609
Total assets		6,383,598		5,202,474		5,002,143
Long-lived assets (6)	[5]	557,667		547,339		499,819
Commercial Foodservice Equipment Group
Segment Reporting Information [Line Items]
Net sales		2,032,761		1,510,279		1,984,345
Operating Income (Loss)	[2]	423,121	[1]	239,625	[1]	429,946
Depreciation		23,814		21,768		21,054
Amortization expense (5)		56,910		51,985		45,906
Net capital expenditures		26,507		25,463		29,353
Total assets		3,522,630		3,249,441		3,188,304
Long-lived assets (6)	[5]	292,593		279,481		261,466
Food Processing Group
Segment Reporting Information [Line Items]
Net sales		480,746		437,272		400,951
Operating Income (Loss)	[2]	94,414		78,008		68,935
Depreciation		5,601		5,507		4,944
Amortization expense (5)		7,247		7,319		8,162
Net capital expenditures		9,111		3,427		6,683
Total assets		637,252		617,171		621,619
Long-lived assets (6)	[5]	54,934		55,069		57,403
Residential Kitchen
Segment Reporting Information [Line Items]
Net sales		737,285		565,706		574,150
Operating Income (Loss)	[2]	124,701	[1]	67,046		89,312	[6]
Depreciation		12,655		11,691		11,742
Amortization expense (5)		11,628		9,657		9,896
Net capital expenditures		9,232		4,801		9,168
Total assets		2,153,758		1,221,229		1,157,211
Long-lived assets (6)	[5]	169,028		192,940		176,834
Corporate and Other
Segment Reporting Information [Line Items]
Net sales	[7]	0		0		0
Operating Income (Loss)	[2],[7]	(12,244)	[3]	(60,248)		(74,150)
Depreciation	[7]	611		120		112
Amortization expense (5)	[4],[7]	6,777		2,485		1,612
Net capital expenditures	[7]	1,701		1,158		1,405
Total assets	[7]	69,958		114,633		35,009
Long-lived assets (6)	[5],[7]	$ 41,112		$ 19,849		$ 4,116

[1] Gain on sale of plant is included in Commercial Foodservice and Residential Kitchen for 2021 and Gain on sale of plant is included in Commercial Foodservice for 2020.

[2] Restructuring expenses and impairments are included in operating income of the segment to which they pertain. See note 3(f) and 12 for further details

[3] Termination fee from Welbilt merger is included in Corporate and Other.

[4] Includes amortization of deferred financing costs and Convertible Notes issuance costs.

[5] Long-lived assets consist of property, plant and equipment, long-term deferred tax assets and other assets.

[6] Gain on litigation settlement is included in Residential Kitchen.

[7] Includes corporate and other general company assets and operations.

XML

Segment Information - Long-lived assets (Details) - USD ($) $ in Thousands		Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Segment Reporting Information [Line Items]
Long-lived assets (6)	[1]	$ 557,667	$ 547,339	$ 499,819
United States And Canada
Segment Reporting Information [Line Items]
Long-lived assets (6)		359,215	331,688	305,207
Asia
Segment Reporting Information [Line Items]
Long-lived assets (6)		32,986	28,018	22,312
Europe And Middle East
Segment Reporting Information [Line Items]
Long-lived assets (6)		157,432	181,242	165,781
Latin America
Segment Reporting Information [Line Items]
Long-lived assets (6)		8,034	6,391	6,519
Total International
Segment Reporting Information [Line Items]
Long-lived assets (6)		$ 198,452	$ 215,651	$ 194,612

[1] Long-lived assets consist of property, plant and equipment, long-term deferred tax assets and other assets.

XML

Employee Retirement Plans Summary of the Plans' Net Periodic Pension Cost, Benefit Obligations, Funded Status, and Net Balance Sheet Position (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Net Periodic Pension Cost:
Curtailment loss	$ 0	$ (14,682)	$ (865)
Change in Benefit Obligation:
Curtailment loss	0
Amounts recognized in balance sheet at year end:
Accrued pension benefits	(219,680)	(469,500)
Non US Plans
Net Periodic Pension Cost:
Service cost	773	2,581
Interest cost	17,340	25,966
Expected return on assets	(78,956)	(72,795)
Amortization of net loss	(12,741)	(3,449)
Amortization of prior service cost	2,879	2,577
Curtailment loss	0	(14,682)
Defined Benefit Plan, Net Periodic Benefit Cost	(45,223)	(23,540)
Change in Benefit Obligation:
Benefit obligation – beginning of year	1,744,574	1,501,616
Service cost	773	2,581
Prior service cost	0	2,309
Interest cost	17,340	25,966
Member contributions	81	312
Actuarial (gain) loss	(135,475)	186,945
Net benefit payments	(65,138)	(62,878)
Curtailment loss		14,682
Exchange effect	(18,008)	73,041
Benefit obligation – end of year	1,544,147	1,744,574	1,501,616
Change in Plan Assets:
Plan assets at fair value – beginning of year	1,296,516	1,231,181
Company contributions	4,890	5,745
Investment gain	123,708	69,824
Member contributions	81	312
Benefit payments and plan expenses	(65,138)	(62,878)
Exchange effect	(17,456)	52,332
Plan assets at fair value – end of year	1,342,601	1,296,516	1,231,181
Funded Status:
Unfunded benefit obligation	(201,546)	(448,058)
Amounts recognized in balance sheet at year end:
Accrued pension benefits	(201,546)	(448,058)
Pre-tax components in accumulated other comprehensive income at period end:
Net actuarial loss	281,745	479,554
Current year actuarial (gain) loss	(181,518)	211,494
Actuarial loss recognized	(12,832)	(3,841)
Prior service cost	0	3,335
Prior service cost recognized	(3,457)	(1,550)
Total amount recognized	197,807	(209,438)
Accumulated Benefit Obligation	$ 1,544,117	$ 1,744,536
Salary growth rate	0.80%	0.80%
Assumed discount rate	1.90%	1.20%
Expected return on assets	6.20%	6.20%
USPlans
Net Periodic Pension Cost:
Service cost	$ 0	$ 0
Interest cost	841	1,043
Expected return on assets	(1,029)	(999)
Amortization of net loss	(1,118)	(763)
Amortization of prior service cost	0	0
Curtailment loss	0	0
Defined Benefit Plan, Net Periodic Benefit Cost	930	807
Change in Benefit Obligation:
Benefit obligation – beginning of year	38,897	35,395
Service cost	0	0
Prior service cost	0	0
Interest cost	841	1,043
Member contributions	0	0
Actuarial (gain) loss	(1,617)	4,146
Net benefit payments	(1,698)	(1,687)
Curtailment loss	0	0
Exchange effect	0	0
Benefit obligation – end of year	36,423	38,897	35,395
Change in Plan Assets:
Plan assets at fair value – beginning of year	17,455	16,744
Company contributions	1,233	1,587
Investment gain	1,299	811
Member contributions	0	0
Benefit payments and plan expenses	(1,698)	(1,687)
Exchange effect	0	0
Plan assets at fair value – end of year	18,289	17,455	$ 16,744
Funded Status:
Unfunded benefit obligation	(18,134)	(21,442)
Amounts recognized in balance sheet at year end:
Accrued pension benefits	(18,134)	(21,442)
Pre-tax components in accumulated other comprehensive income at period end:
Net actuarial loss	7,419	10,424
Current year actuarial (gain) loss	(1,887)	4,334
Actuarial loss recognized	(1,118)	(763)
Prior service cost	0	0
Prior service cost recognized	0	0
Total amount recognized	3,005	(3,571)
Accumulated Benefit Obligation	$ 36,423	$ 38,897
Assumed discount rate	2.60%	2.20%
Expected return on assets	6.00%	6.00%

XML

Employee Retirement Plans Summary classes of security by percentage (Details)	Jan. 01, 2022	Jan. 02, 2021
USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	100.00%
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage	100.00%	100.00%
Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	100.00%
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage	100.00%	100.00%
Equity Securities [Member] | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	48.00%
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage	53.00%	48.00%
Equity Securities [Member] | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	17.00%
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage	11.00%	12.00%
Fixed Income Securities [Member] | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	40.00%
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage	36.00%	39.00%
Fixed Income Securities [Member] | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	38.00%
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage	56.00%	57.00%
Money Market Instruments [Member] | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	4.00%
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage	1.00%	3.00%
Money Market Instruments [Member] | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	32.00%
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage	15.00%	15.00%
Other (real estate & commodities) [Member] | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	8.00%
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage	10.00%	10.00%
Other (real estate & commodities) [Member] | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	13.00%
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage	15.00%	13.00%
Cash and Cash Equivalents | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	0.00%
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage	3.00%	3.00%

XML

Employee Retirement Plans Summary of the Basis Used to Measure Pension Plans' Assets at Fair Value (Details) - USD ($) $ in Thousands		Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		$ 18,289	$ 17,455	$ 16,744
Defined Benefit Plan, Net Asset Value of Plan Assets		274	533
Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		1,342,601	1,296,516	$ 1,231,181
Defined Benefit Plan, Net Asset Value of Plan Assets		1,121,370	1,100,384
Short Term Investment Fund | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount	[1]	274	533
Defined Benefit Plan, Net Asset Value of Plan Assets	[1]	274	533
Real Estate Funds | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		758	1,063
Defined Benefit Plan, Net Asset Value of Plan Assets		0	0
Hedge Funds, Multi-strategy | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		29,345	44,097
Defined Benefit Plan, Net Asset Value of Plan Assets		29,345	44,097
Leveraged Loans | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		30,224	28,720
Defined Benefit Plan, Net Asset Value of Plan Assets		30,224	28,720
Alternative Investment [Member] | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		(92,239)	(104,518)
Defined Benefit Plan, Net Asset Value of Plan Assets		(92,692)	(104,523)
U S Large Cap | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		3,928	3,443
Defined Benefit Plan, Net Asset Value of Plan Assets		0	0
U S Mid Cap | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		413	407
Defined Benefit Plan, Net Asset Value of Plan Assets		0	0
U S Small Cap | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		424	489
Defined Benefit Plan, Net Asset Value of Plan Assets		0	0
International Equity Securities | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		4,918	4,198
Defined Benefit Plan, Net Asset Value of Plan Assets		0	0
Government/Corporate | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		5,137	5,517
Defined Benefit Plan, Net Asset Value of Plan Assets		0	0
High Yield Fixed Income | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		1,383	1,211
Defined Benefit Plan, Net Asset Value of Plan Assets		0	0
Commodities Contracts | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		1,054	594
Defined Benefit Plan, Net Asset Value of Plan Assets		0	0
Cash and Cash Equivalents | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		51,780	36,537
Defined Benefit Plan, Net Asset Value of Plan Assets		40,122	26,052
Equity Securities, U K Market | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		6,470	8,615
Defined Benefit Plan, Net Asset Value of Plan Assets		4,592	6,868
Equity Securities, International, Developed | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		117,751	110,718
Defined Benefit Plan, Net Asset Value of Plan Assets		114,717	107,642
Equity Securities, international, Emerging | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		31,392	34,417
Defined Benefit Plan, Net Asset Value of Plan Assets		30,957	33,999
Equity Securities, Unquoted Private Equity | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		2,195	1,792
Defined Benefit Plan, Net Asset Value of Plan Assets		2,194	1,791
Fixed Income, Government/Corporate, U K | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		259,833	264,703
Defined Benefit Plan, Net Asset Value of Plan Assets		244,362	248,373
Fixed Income, Government/Corporate, International | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		114,973	141,030
Defined Benefit Plan, Net Asset Value of Plan Assets		114,973	141,030
Fixed Income, Government/Corporate, Index Linked | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		364,666	330,360
Defined Benefit Plan, Net Asset Value of Plan Assets		362,528	327,415
Fixed Income, Government/Corporate, Other | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		7,811	8,296
Defined Benefit Plan, Net Asset Value of Plan Assets		7,811	8,296
Fixed Income,Convertible Bonds | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		185	214
Defined Benefit Plan, Net Asset Value of Plan Assets		185	214
Real Estate Funds, Direct | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		183,045	156,588
Defined Benefit Plan, Net Asset Value of Plan Assets		0	0
Real Estate Funds,Indirect | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		8,030	9,283
Defined Benefit Plan, Net Asset Value of Plan Assets		4,912	4,746
Hedge Fund, Arbitrage&Event | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		25,788	16,594
Defined Benefit Plan, Net Asset Value of Plan Assets		25,788	16,594
Hedge Fund, Directional Trading&Fixed Income | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		3,266	9,721
Defined Benefit Plan, Net Asset Value of Plan Assets		3,266	9,721
Hedge Fund, Cash & Other | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		196,930	196,952
Defined Benefit Plan, Net Asset Value of Plan Assets		196,930	196,952
Hedge Fund, Direct Sourcing | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		1,156	2,397
Defined Benefit Plan, Net Asset Value of Plan Assets		1,156	2,397
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		18,015	16,922
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		30,056	34,227
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short Term Investment Fund | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount	[1]	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Real Estate Funds | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		758	1,063
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Hedge Funds, Multi-strategy | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Leveraged Loans | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Alternative Investment [Member] | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		453	5
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U S Large Cap | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		3,928	3,443
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U S Mid Cap | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		413	407
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U S Small Cap | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		424	489
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | International Equity Securities | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		4,918	4,198
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Government/Corporate | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		5,137	5,517
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | High Yield Fixed Income | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		1,383	1,211
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commodities Contracts | USPlans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		1,054	594
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Cash Equivalents | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		6,566	9,653
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities, U K Market | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		1,878	1,747
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities, International, Developed | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		3,034	3,076
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities, international, Emerging | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		435	418
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities, Unquoted Private Equity | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		1	1
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income, Government/Corporate, U K | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		15,471	16,330
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income, Government/Corporate, International | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income, Government/Corporate, Index Linked | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		2,138	2,945
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income, Government/Corporate, Other | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income,Convertible Bonds | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Real Estate Funds, Direct | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Real Estate Funds,Indirect | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		80	52
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Hedge Fund, Arbitrage&Event | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Hedge Fund, Directional Trading&Fixed Income | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Hedge Fund, Cash & Other | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Hedge Fund, Direct Sourcing | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Observable Inputs (Level 2) | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		191,175	161,905
Significant Observable Inputs (Level 2) | Hedge Funds, Multi-strategy | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Observable Inputs (Level 2) | Leveraged Loans | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Observable Inputs (Level 2) | Alternative Investment [Member] | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Observable Inputs (Level 2) | Cash and Cash Equivalents | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		5,092	832
Significant Observable Inputs (Level 2) | Equity Securities, U K Market | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Observable Inputs (Level 2) | Equity Securities, International, Developed | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Observable Inputs (Level 2) | Equity Securities, international, Emerging | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Observable Inputs (Level 2) | Equity Securities, Unquoted Private Equity | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Observable Inputs (Level 2) | Fixed Income, Government/Corporate, U K | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Observable Inputs (Level 2) | Fixed Income, Government/Corporate, International | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Observable Inputs (Level 2) | Fixed Income, Government/Corporate, Index Linked | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Observable Inputs (Level 2) | Fixed Income, Government/Corporate, Other | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Observable Inputs (Level 2) | Fixed Income,Convertible Bonds | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Observable Inputs (Level 2) | Real Estate Funds, Direct | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		183,045	156,588
Significant Observable Inputs (Level 2) | Real Estate Funds,Indirect | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		3,038	4,485
Significant Observable Inputs (Level 2) | Hedge Fund, Arbitrage&Event | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Observable Inputs (Level 2) | Hedge Fund, Directional Trading&Fixed Income | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Observable Inputs (Level 2) | Hedge Fund, Cash & Other | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Observable Inputs (Level 2) | Hedge Fund, Direct Sourcing | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Unobservable Inputs (Level 3) | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Unobservable Inputs (Level 3) | Hedge Funds, Multi-strategy | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Unobservable Inputs (Level 3) | Leveraged Loans | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Unobservable Inputs (Level 3) | Alternative Investment [Member] | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Unobservable Inputs (Level 3) | Cash and Cash Equivalents | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Unobservable Inputs (Level 3) | Equity Securities, U K Market | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Unobservable Inputs (Level 3) | Equity Securities, International, Developed | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Unobservable Inputs (Level 3) | Equity Securities, international, Emerging | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Unobservable Inputs (Level 3) | Equity Securities, Unquoted Private Equity | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Unobservable Inputs (Level 3) | Fixed Income, Government/Corporate, U K | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Unobservable Inputs (Level 3) | Fixed Income, Government/Corporate, International | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Unobservable Inputs (Level 3) | Fixed Income, Government/Corporate, Index Linked | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Unobservable Inputs (Level 3) | Fixed Income, Government/Corporate, Other | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Unobservable Inputs (Level 3) | Fixed Income,Convertible Bonds | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Unobservable Inputs (Level 3) | Real Estate Funds, Direct | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Unobservable Inputs (Level 3) | Real Estate Funds,Indirect | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Unobservable Inputs (Level 3) | Hedge Fund, Arbitrage&Event | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Unobservable Inputs (Level 3) | Hedge Fund, Directional Trading&Fixed Income | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Unobservable Inputs (Level 3) | Hedge Fund, Cash & Other | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		0	0
Significant Unobservable Inputs (Level 3) | Hedge Fund, Direct Sourcing | Non US Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		$ 0	$ 0

[1] Represents collective short term investment fund, composed of high-grade money market instruments with short maturities.

XML

Employee Retirement Plans Estimated Future Benefit Payments under the Plans (Details) $ in Thousands	Jan. 01, 2022 USD ($)
USPlans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
2022	$ 1,798
2023	1,802
2024	1,810
2025	1,831
2026 through 2031	11,597
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year	400
Non US Plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
2022	62,209
2023	63,462
2024	63,739
2025	64,817
2026 through 2031	388,203
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year	$ 4,000

XML

Employee Retirement Plans - Additional Information (Details)	12 Months Ended
	Jan. 01, 2022 plan
Retirement Benefits [Abstract]
Number of defined contribution 401K savings plans	2

XML

Restructuring Restructuring Charges (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 7,655	$ 12,375	$ 10,480
Impairment of Long-Lived Assets to be Disposed of		2,900
Disposal Group, Including Discontinued Operation, Assets		17,400
Accrued liabilities held for sale	0	22,313
Commercial Foodservice Equipment Group
Restructuring Cost and Reserve [Line Items]
Effects on Future Earnings, Restructuring	20,000
Commercial Foodservice Equipment Group
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 5,400	$ 10,100	$ 6,400

XML

Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
SEC Schedule, 12-09, Allowance, Credit Loss [Member]
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance Beginning Of Period	$ 19,225	$ 14,886	$ 13,608
Additions/ (Recoveries) Charged to Expense	809	6,868	1,941
Other Adjustments (1)	554	1,239	2,009
Write-Offs During the Period	(1,818)	(3,768)	(2,672)
Balance At End Of Period	18,770	19,225	14,886
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member]
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance Beginning Of Period	11,731	7,754	26,023
Additions/ (Recoveries) Charged to Expense	1,138	3,977	129
Write-Offs During the Period	(2,647)	0	(18,398)
Balance At End Of Period	$ 10,222	$ 11,731	$ 7,754