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Discontinued Operations and Disposal Groups
 6 Months Ended
Jul. 04, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE
As discussed in Note 1 to these Notes to the Condensed Consolidated Financial Statements, the Residential Kitchen Equipment Group’s financial results are reflected in the Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statements of Cash Flows as discontinued operations through the date of deconsolidation. The assets and liabilities of the Residential Kitchen Equipment Group were reclassified and reported as assets and liabilities held for sale - discontinued operations in the Condensed Consolidated Balance Sheets through the date of deconsolidation.
Upon classification as held for sale during the fourth quarter of 2025, the company ceased depreciating and amortizing long-lived assets within the disposal group, which primarily included property, plant and equipment, intangible assets, and operating lease right-of-use assets.
The Residential Transaction was completed on February 2, 2026. Following the close of the Residential Transaction, the company owns a 49% non-controlling equity interest in Composition Brands, which now holds the Residential Kitchen Equipment business. The company received cash proceeds of $564.6 million, net of cash disposed and subject to future closing adjustments, and a promissory note payable by Composition Brands in the principal amount of $135.0 million, with an initial fair value of $82.4 million. The company's retained interest in Composition Brands had an initial fair value of $150.8 million. The company recognized a pre-tax loss of $94.9 million upon deconsolidation, including $50.8 million related to the remeasurement of the retained interest to fair value. See Note 4 to these Notes to the Condensed Consolidated Financial Statements for further information on the retained equity method investment and promissory note receivable.
Certain assets and liabilities included in the determination of consideration received for the Residential Transaction have not yet legally transferred to Composition Brands as of July 4, 2026. These assets and liabilities, which are associated with distribution operations in certain international locations, have not been deconsolidated and will remain classified as assets and liabilities held for sale – discontinued operations until legal transfer is completed, which is expected within one year of the closing date. Consideration allocated to this portion of the business of $6.5 million is included in Accrued expenses in Current liabilities held for sale - discontinued operations as of July 4, 2026. During the three month period ended July 4, 2026, the company recognized a $0.6 million reversal of a previously recorded held-for-sale loss for this portion of the business, resulting in no net loss on classification as held for sale for the six month period ended July 4, 2026. The loss was originally recorded in the first quarter of 2026 to adjust the carrying value of the remaining net assets to the value of deferred consideration.
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 Aga Rangemaster Group Pension Scheme or the “Retained Plan”) and earnout obligations 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 Composition Brands. 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 7 to these Notes to the Condensed 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 Residential Transaction and have been included within the results of discontinued operations.
Financial Information
The following table summarizes the operating results of the Residential Kitchen Equipment Group as presented in Earnings/(loss) from discontinued operations, net of tax in the Condensed Consolidated Statements of Comprehensive Income (in thousands):
Three Months EndedSix Months Ended
Jul 4, 2026Jun 28, 2025Jul 4, 2026Jun 28, 2025
Net sales$25 $181,060 $51,821 $357,064 
Cost of sales76 125,871 36,086 248,520 
Gross profit(51)55,189 15,735 108,544 
Selling, general and administrative expenses1,550 46,013 22,626 86,810 
Restructuring expenses— 1,601 240 3,082 
(Loss)/income from discontinued operations(1,601)7,575 (7,131)18,652 
Interest income, net(1)
(1)(412)(17)(869)
Net periodic pension cost— 21 — 40 
Other expense, net— 2,006 768 3,320 
Loss on disposition— — 94,911 — 
Gain on classification as held for sale(608)— — — 
(Loss)/earnings from discontinued operations before income taxes(992)5,960 (102,793)16,161 
(Benefit from)/provision for income taxes(1,590)1,670 31,966 4,582 
Earnings/(loss) from discontinued operations, net of tax$598 $4,290 $(134,759)$11,579 
(1)Represents interest income directly associated with, not allocated to, the Residential Kitchen Equipment Group.
The following table summarizes the carrying amounts of major classes of assets and liabilities held for sale - discontinued operations as presented in the Condensed Consolidated Balance Sheets (in thousands):
Jul 4, 2026Jan 3, 2026
ASSETS
Cash and cash equivalents$877 $22,208 
Accounts receivable, net2,978 109,280 
Inventories, net7,407 199,534 
Prepaid expenses and other221 17,951 
Property, plant and equipment, net164 150,561 
Goodwill— 229,964 
Other intangibles, net— 385,133 
Pension benefits assets— 1,150 
Other assets189 49,410 
Valuation allowance - loss on classification as held for sale— (62,750)
Total assets held for sale - discontinued operations$11,836 $1,102,441 
LIABILITIES
Accounts payable$1,335 $53,151 
Accrued expenses8,059 93,247 
Long-term deferred tax liability4 71,649 
Other non-current liabilities124 24,288 
Total liabilities held for sale - discontinued operations$9,522 $242,335