Restructuring and Acquisition Integration Initiatives

12 Months Ended

Dec. 31, 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 2022, 2021 and 2020, 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 $2.0 million, $5.4 million and $10.1 million in the twelve months ended December 31, 2022, January 1, 2022 and January 2, 2021 respectively. 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 expected annual savings of approximately $20.0 million. At December 31, 2022, the restructuring obligations accrued for these initiatives are immaterial and will be substantially complete by the end of fiscal year 2023.

Residential Kitchen Equipment Group:

During fiscal year 2022, the company initiated cost reduction initiatives related to the Residential Kitchen Equipment Group of $5.1 million, primarily related to headcount reductions 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 2023 with an expected annual savings of approximately $8.0 million. At December 31, 2022, the restructuring obligations accrued for these initiatives are immaterial and will be substantially complete by the end of fiscal year 2023.

The restructuring expenses for the other segment of the company were not material during fiscal years 2022, 2021 and 2020.

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.