As discussed in Note 1 to these Notes to the Consolidated Financial Statements, the Residential Kitchen Equipment Group’s financial results are reflected in the Consolidated Statements of Earnings and Consolidated Statements of Cash Flows as discontinued operations. The assets and liabilities of the Residential Kitchen Equipment Group have been reclassified and reported as assets and liabilities held for sale - discontinued operations in the Consolidated Balance Sheets.

Upon classification as held for sale during the fourth quarter of 2025, the company recognized a loss of $62.8 million within Earnings from discontinued operations, net of tax in the Consolidated Statements of Earnings to adjust the carrying value of the disposal group to fair value less cost to sell. The fair value of the disposal group was estimated using the expected sale price as negotiated with the third party buyer.

The Residential Transaction was completed on February 2, 2026. Following the close of the Residential Transaction, the company owns a 49% non-controlling interest in a new standalone joint venture holding the business. The company received net cash proceeds of approximately $565 million and a $135 million promissory note from the joint venture, subject to future closing adjustments.

In addition to the retained equity interest, the company will have continuing involvement with the Residential Kitchen Equipment Group through various commercial arrangements, pursuant to which the company will provide certain engineering, manufacturing, distribution, and sales channel support to the joint venture on a transitional basis for initial periods of up to three years from the closing date of the transaction, with certain commercial arrangements automatically renewing for one-year terms until terminated. The company will also provide certain post-closing information technology, finance, tax, human resources, treasury, legal and supply chain services on a transitional basis for periods, generally up to 12 months from the closing date of the transaction (although certain services may be provided for up to 18 months from the closing date of the transaction if the joint venture exercises its extension option), under the terms of a transition services agreement.

Certain assets and liabilities that were previously associated with the Residential Kitchen Equipment Group were excluded from the scope of the Residential Transaction, including a defined benefit pension plan in the United Kingdom (the “Retained Plan”) and earnouts associated with several prior acquisitions.

The Retained Plan, which covers certain current and former employees of, and was previously sponsored by, a division within the Residential Kitchen Equipment Group, was not transferred to the joint venture. The Retained Plan is not included in assets held for sale - discontinued operations. The ongoing net periodic pension benefit, actuarial gains and losses, and other comprehensive income/(loss) related to the Retained Plan are reflected in the company’s results of continuing operations. The Retained Plan is included within Corporate and Other in the company's business segment results. See Note 10 to these Notes to the Consolidated Financial Statements for further information regarding the company’s business segment results.

Certain other immaterial defined benefit pension plans were included within the scope of the transaction and have been included within the results of discontinued operations. See Note 11 to these Notes to the Consolidated Financial Statements for further information regarding the company’s continuing operations pension plans, including the Retained Plan.


	2025		2024		2023
Net sales	$	733,305	$	724,923	$	794,515
Cost of sales	506,581		506,373		544,531
Gross profit	226,724		218,550		249,984
Selling, general, and administrative expenses	186,226		172,387		182,013
Restructuring expenses	8,982		5,936		9,402
Impairments	709,116		28,162		76,128
(Loss)/income from discontinued operations	(677,600)		12,065		(17,559)
Interest (income)/expense and deferred financing amortization, net(1)	(1,340)		(1,127)		(781)
Net periodic pension cost/(benefit) (other than service cost & curtailment)	81		(25)		(31)
Other expense/(income), net	3,244		1,994		(45)
Loss on classification as held for sale	62,750		—		—
(Loss)/earnings from discontinued operations before income taxes	(742,335)		11,223		(16,702)
(Benefit from)/provision for income taxes	(97,337)		3,768		(4,580)
(Loss)/earnings from discontinued operations, net of tax	$	(644,998)	$	7,455	$	(12,122)


	Jan 3, 2026		Dec 28, 2024
ASSETS
Cash and cash equivalents	$	22,208	$	50,767
Accounts receivable, net	109,280		111,597
Inventories, net	199,534		185,623
Prepaid expenses and other	17,951		16,832
Prepaid taxes	—		8
Property, plant and equipment, net	150,561		141,282
Goodwill	229,964		773,976
Other intangibles, net	385,133		511,221
Pension benefits assets	1,150		816
Other assets	49,410		53,525
Valuation allowance - loss on classification as held for sale	(62,750)		—
Total assets held for sale - discontinued operations	$	1,102,441	$	1,845,647

LIABILITIES
Accounts payable	$	53,151	$	42,724
Accrued expenses	93,247		82,787
Long-term deferred tax liability	71,649		100,848
Other non-current liabilities	24,288		31,982
Total liabilities held for sale - discontinued operations	$	242,335	$	258,341

Based on the results of the quantitative tests of indefinite-lived trademarks and trade names, the company recorded a non-cash impairment charge of $131.8 million associated with several trademarks and trade names within the Residential Kitchen Equipment Group. The gross value of all indefinite-lived trademarks and trade names tested was approximately $473.0 million, including those which were impaired. The diminution in fair value for the trademarks and trade names was due to macroeconomic conditions such as high interest rates, international tariffs, challenging housing market conditions and higher carrying costs of inventory levels in the channel. This led to lower than expected revenue in the current year and corresponding reductions of future revenue due to lowered expectations for recovery in demand. The company estimated the fair value of trademarks and trade names using a relief from royalty method under the income approach. In performing the quantitative analyses on the trademarks and trade names, significant assumptions include revenue growth rates, assumed royalty rates and discount rates, which are considered level 3 inputs in the fair value hierarchy. The company believes the assumptions utilized within the quantitative analysis are reasonable and consistent with assumptions that would be used by other marketplace participants.

Based on the results of the goodwill impairment test, the company determined that the carrying amount of the Residential Kitchen Equipment Group reporting unit exceeded its estimated fair value and recorded a non-cash goodwill impairment charge of $572.6 million. The impairment was driven by a combination of factors, including macroeconomic conditions such as high interest rates, international tariffs, challenging housing market conditions and higher carrying costs of inventory levels in the channel, which led to lower than expected revenue in the current year and corresponding reductions of future revenue due to lowered expectations for recovery in demand.

At the time the interim impairment test was performed, the company estimated the fair value of the Residential Kitchen Equipment Group reporting unit by considering both a market approach and an income approach using a discounted cash flow model, which use level 3 inputs in the fair value hierarchy. For the income approach, key valuation inputs included revenue growth rates, EBITDA margins and discount rate, which are based on management’s estimates and assumptions believed to be reasonable and reflective of known market conditions as of the interim impairment test date.