☒ | Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. |
☐ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
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 |
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 |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
Page | ||||||||
PART I | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
PART III | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
PART IV | ||||||||
Item 15. | ||||||||
Item 16. |
Location | Principal Function | Square Footage | Owned/ Leased | Lease Expiration | ||||||||||||||||||||||
Commercial Foodservice: | ||||||||||||||||||||||||||
Fort Smith, AR | Manufacturing, Warehousing and Offices | 440,200 | Leased | Aug-31 | ||||||||||||||||||||||
Brea, CA | Manufacturing, Warehousing and Offices | Leased | ||||||||||||||||||||||||
Vacaville, CA | Manufacturing, Warehousing and Offices | 81,200 | Leased | May-27 | ||||||||||||||||||||||
Windsor, CA | Manufacturing, Warehousing and Offices | 75,000 | Leased | |||||||||||||||||||||||
Manufacturing, Warehousing and Offices | ||||||||||||||||||||||||||
Manufacturing, Warehousing and Offices | ||||||||||||||||||||||||||
Manufacturing, Warehousing and Offices | Owned | N/A | ||||||||||||||||||||||||
Manufacturing, Warehousing and Offices | Owned | N/A | ||||||||||||||||||||||||
Manufacturing, Warehousing and Offices | Owned | N/A | ||||||||||||||||||||||||
Warehousing | 128,500 | Leased | Jun-23 | |||||||||||||||||||||||
Menominee, MI | Manufacturing, Warehousing and Offices | Owned | N/A | |||||||||||||||||||||||
Manufacturing, Warehousing and Offices | Owned | N/A | ||||||||||||||||||||||||
Warehousing | 39,000 | Leased | Mar-21 | |||||||||||||||||||||||
Pembroke, NH | Warehousing | 136,000 | Leased | Jul-24 | ||||||||||||||||||||||
Charlotte, NC | Manufacturing, Warehousing and Offices | Leased | ||||||||||||||||||||||||
Manufacturing, Warehousing and Offices | ||||||||||||||||||||||||||
Manufacturing, Warehousing and Offices | Owned | N/A | ||||||||||||||||||||||||
Manufacturing, Warehousing and Offices | ||||||||||||||||||||||||||
Manufacturing, Warehousing and Offices | Leased | |||||||||||||||||||||||||
Manufacturing, Warehousing and Offices | Owned | N/A | ||||||||||||||||||||||||
Manufacturing, Warehousing and Offices | ||||||||||||||||||||||||||
Warehousing | 33,100 | Leased | Feb-24 | |||||||||||||||||||||||
Carrollton, TX | Manufacturing, Warehousing and Offices | Leased | Aug-22 | |||||||||||||||||||||||
Essex Junction, VT | Manufacturing, Warehousing and Offices* | 270,000 | Owned | N/A | ||||||||||||||||||||||
Redmond, WA | Manufacturing, Warehousing and Offices | 42,400 | Leased | May-22 | ||||||||||||||||||||||
Seattle, WA | Manufacturing, Warehousing and Offices | 16,100 | Leased | Aug-22 | ||||||||||||||||||||||
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 | |||||||||||||||||||||||||
Manufacturing, Warehousing and Offices | Leased | |||||||||||||||||||||||||
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 | ||||||||||||||||||||||
Scandicci, Italy | Manufacturing, Warehousing and Offices | Leased | Apr-25 | |||||||||||||||||||||||
Sedico, Italy | Manufacturing, Warehousing and Offices | 52,500 | Leased | Feb-24 | ||||||||||||||||||||||
Nogales, Mexico | Manufacturing, Warehousing and Offices | Owned | N/A | |||||||||||||||||||||||
Laguna, the Philippines | Manufacturing, Warehousing and Offices | 115,200 | Owned | N/A | ||||||||||||||||||||||
Wiślina, Poland | Manufacturing, Warehousing and Offices | 77,500 | Owned | N/A | ||||||||||||||||||||||
Pineda de Mar, Spain | Manufacturing, Warehousing and Offices | Owned | N/A | |||||||||||||||||||||||
Fristad, Sweden | Manufacturing, Warehousing and Offices | 173,800 | Owned | N/A | ||||||||||||||||||||||
Lincoln, the United Kingdom | Manufacturing, Warehousing and Offices | 100,000 | Owned | N/A | ||||||||||||||||||||||
Wrexham, the United Kingdom | Manufacturing, Warehousing and Offices | 62,600 | Owned | N/A | ||||||||||||||||||||||
Location | Principal Function | Square Footage | Owned/ Leased | Lease Expiration | ||||||||||||||||||||||
Food Processing: | ||||||||||||||||||||||||||
Gainesville, GA | Manufacturing, Warehousing and Offices | 107,400 | Owned | N/A | ||||||||||||||||||||||
Manufacturing, Warehousing and Offices | Owned | N/A | ||||||||||||||||||||||||
Manufacturing, Warehousing and Offices | ||||||||||||||||||||||||||
Manufacturing, Warehousing and Offices | ||||||||||||||||||||||||||
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 | 112,400 | 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 | 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 | |||||||||||||||||||||||
Buford, GA | Warehousing and Offices | 178,100 | Leased | Feb-23 | ||||||||||||||||||||||
Greenville, MI | Manufacturing, Warehousing and Offices | 225,000 | Owned | N/A | ||||||||||||||||||||||
Greenwood, MS | Manufacturing, Warehousing and Offices** | 738,000 | Owned | N/A | ||||||||||||||||||||||
Brown Deer, WI | Manufacturing, Warehousing and Offices | |||||||||||||||||||||||||
Saint Ouen L'aumone, France | Manufacturing, Warehousing | 30,400 | Owned | N/A | ||||||||||||||||||||||
Waterford, Ireland | 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 | Warehousing and Offices | 100,300 | Leased | Aug-29 | ||||||||||||||||||||||
Nottingham, the United Kingdom | Manufacturing and Offices | 153,100 | Owned | N/A |
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) | ||||||||||||||||||||
September | — | $ | — | — | |||||||||||||||||||
October | — | — | — | ||||||||||||||||||||
November | — | — | — | ||||||||||||||||||||
Quarter ended | — | $ | — | — |
2019 | 2018 | 2017 | 2016 | 2015 | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||||||
Income Statement Data: | Income Statement Data: | |||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 2,959,446 | $ | 2,722,931 | $ | 2,335,542 | $ | 2,267,852 | $ | 1,826,598 | Net sales | $ | 2,513,257 | $ | 2,959,446 | $ | 2,722,931 | $ | 2,335,542 | $ | 2,267,852 | |||||||||||||||||||||||||||
Cost of sales | 1,855,949 | 1,718,791 | 1,422,801 | 1,366,672 | 1,120,093 | Cost of sales | 1,631,209 | 1,855,949 | 1,718,791 | 1,422,801 | 1,366,672 | |||||||||||||||||||||||||||||||||||||
Gross profit | 1,103,497 | 1,004,140 | 912,741 | 901,180 | 706,505 | Gross profit | 882,048 | 1,103,497 | 1,004,140 | 912,741 | 901,180 | |||||||||||||||||||||||||||||||||||||
Selling, general, and administrative expenses | 593,813 | 538,842 | 468,219 | 471,638 | 378,366 | Selling, general, and administrative expenses | 531,897 | 593,813 | 538,842 | 468,219 | 471,638 | |||||||||||||||||||||||||||||||||||||
Restructuring expenses | 10,480 | 19,332 | 19,951 | 10,524 | 28,754 | Restructuring expenses | 12,375 | 10,480 | 19,332 | 19,951 | 10,524 | |||||||||||||||||||||||||||||||||||||
Gain on litigation settlement | (14,839 | ) | — | — | — | — | Gain on litigation settlement | — | (14,839) | — | — | — | ||||||||||||||||||||||||||||||||||||
Gain on sale of plant | — | — | (12,042 | ) | — | — | Gain on sale of plant | (1,982) | — | — | (12,042) | — | ||||||||||||||||||||||||||||||||||||
Impairment of intangible asset | — | — | 58,000 | — | — | |||||||||||||||||||||||||||||||||||||||||||
Impairments | Impairments | 15,327 | — | — | 58,000 | — | ||||||||||||||||||||||||||||||||||||||||||
Income from operations | 514,043 | 445,966 | 378,613 | 419,018 | 299,385 | Income from operations | 324,431 | 514,043 | 445,966 | 378,613 | 419,018 | |||||||||||||||||||||||||||||||||||||
Interest expense and deferred financing amortization, net | 82,609 | 58,742 | 25,983 | 23,880 | 16,967 | Interest expense and deferred financing amortization, net | 78,617 | 82,609 | 58,742 | 25,983 | 23,880 | |||||||||||||||||||||||||||||||||||||
Net periodic pension benefit (other than service costs) | (28,857 | ) | (38,114 | ) | (31,728 | ) | (27,207 | ) | (3,218 | ) | ||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | (2,328 | ) | 1,825 | 829 | 1,040 | 4,469 | ||||||||||||||||||||||||||||||||||||||||||
Net periodic pension benefit (other than service costs & curtailment) | Net periodic pension benefit (other than service costs & curtailment) | (39,996) | (29,722) | (39,020) | (35,033) | (30,409) | ||||||||||||||||||||||||||||||||||||||||||
Curtailment loss | Curtailment loss | 14,682 | 865 | 906 | 3,305 | 3,202 | ||||||||||||||||||||||||||||||||||||||||||
Other expense (income), net | Other expense (income), net | 3,071 | (2,328) | 1,825 | 829 | 1,040 | ||||||||||||||||||||||||||||||||||||||||||
Earnings before income taxes | 462,619 | 423,513 | 383,529 | 421,305 | 281,167 | Earnings before income taxes | 268,057 | 462,619 | 423,513 | 383,529 | 421,305 | |||||||||||||||||||||||||||||||||||||
Provision for income taxes | 110,379 | 106,361 | 85,401 | 137,089 | 89,557 | Provision for income taxes | 60,763 | 110,379 | 106,361 | 85,401 | 137,089 | |||||||||||||||||||||||||||||||||||||
Net earnings | $ | 352,240 | $ | 317,152 | $ | 298,128 | $ | 284,216 | $ | 191,610 | Net earnings | $ | 207,294 | $ | 352,240 | $ | 317,152 | $ | 298,128 | $ | 284,216 | |||||||||||||||||||||||||||
Net earnings per share: | Net earnings per share: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 6.33 | $ | 5.71 | $ | 5.26 | $ | 4.98 | $ | 3.36 | Basic | $ | 3.76 | $ | 6.33 | $ | 5.71 | $ | 5.26 | $ | 4.98 | |||||||||||||||||||||||||||
Diluted | $ | 6.33 | $ | 5.70 | $ | 5.26 | $ | 4.98 | $ | 3.36 | Diluted | $ | 3.76 | $ | 6.33 | $ | 5.70 | $ | 5.26 | $ | 4.98 | |||||||||||||||||||||||||||
Weighted average number of shares outstanding: | Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic | 55,647 | 55,576 | 56,715 | 57,030 | 56,951 | Basic | 55,093 | 55,647 | 55,576 | 56,715 | 57,030 | |||||||||||||||||||||||||||||||||||||
Diluted | 55,656 | 55,604 | 56,719 | 57,085 | 56,973 | Diluted | 55,136 | 55,656 | 55,604 | 56,719 | 57,085 | |||||||||||||||||||||||||||||||||||||
Balance Sheet Data: | Balance Sheet Data: | |||||||||||||||||||||||||||||||||||||||||||||||
Working capital | $ | 616,059 | $ | 502,642 | $ | 458,236 | $ | 323,290 | $ | 285,191 | Working capital | $ | 570,235 | $ | 616,059 | $ | 502,642 | $ | 458,236 | $ | 323,290 | |||||||||||||||||||||||||||
Total assets | 5,002,143 | 4,549,781 | 3,339,713 | 2,917,136 | 2,761,151 | Total assets | 5,202,474 | 5,002,143 | 4,549,781 | 3,339,713 | 2,917,136 | |||||||||||||||||||||||||||||||||||||
Total debt | 1,873,140 | 1,892,105 | 1,028,881 | 732,126 | 766,061 | Total debt | 1,729,596 | 1,873,140 | 1,892,105 | 1,028,881 | 732,126 | |||||||||||||||||||||||||||||||||||||
Stockholders' equity | 1,946,814 | 1,665,203 | 1,361,148 | 1,265,318 | 1,166,830 | Stockholders' equity | 1,976,649 | 1,946,814 | 1,665,203 | 1,361,148 | 1,265,318 |
Fiscal Year Ended(1) | Fiscal Year Ended(1) | Fiscal Year Ended(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | Percent | Sales | Percent | Sales | Percent | Sales | Percent | Sales | Percent | Sales | Percent | ||||||||||||||||||||||||||||||||||||||||||||
Business Segments: | Business Segments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Foodservice | $ | 1,984,345 | 67.1 | % | $ | 1,729,814 | 63.5 | % | $ | 1,382,108 | 59.2 | % | Commercial Foodservice | $ | 1,510,279 | 60.1 | % | $ | 1,984,345 | 67.1 | % | $ | 1,729,814 | 63.5 | % | ||||||||||||||||||||||||||||||
Food Processing | 400,951 | 13.5 | 389,594 | 14.3 | 352,717 | 15.1 | Food Processing | 437,272 | 17.4 | 400,951 | 13.5 | 389,594 | 14.3 | ||||||||||||||||||||||||||||||||||||||||||
Residential Kitchen | 574,150 | 19.4 | 603,523 | 22.2 | 600,717 | 25.7 | Residential Kitchen | 565,706 | 22.5 | 574,150 | 19.4 | 603,523 | 22.2 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 2,959,446 | 100.0 | % | $ | 2,722,931 | 100.0 | % | $ | 2,335,542 | 100.0 | % | Total | $ | 2,513,257 | 100.0 | % | $ | 2,959,446 | 100.0 | % | $ | 2,722,931 | 100.0 | % |
Fiscal Year Ended(1) | Fiscal Year Ended(1) | ||||||||||||||||||||||||
2019 | 2018 | 2017 | 2020 | 2019 | 2018 | ||||||||||||||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | Net sales | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||
Cost of sales | 62.7 | 63.1 | 60.9 | Cost of sales | 64.9 | 62.7 | 63.1 | ||||||||||||||||||
Gross profit | 37.3 | 36.9 | 39.1 | Gross profit | 35.1 | 37.3 | 36.9 | ||||||||||||||||||
Selling, general and administrative expenses | 20.1 | 19.8 | 20.0 | Selling, general and administrative expenses | 21.2 | 20.1 | 19.8 | ||||||||||||||||||
Restructuring | 0.3 | 0.7 | 0.9 | Restructuring | 0.5 | 0.3 | 0.7 | ||||||||||||||||||
Gain on litigation settlement | (0.5 | ) | — | — | Gain on litigation settlement | — | (0.5) | — | |||||||||||||||||
Gain on sale of plant | — | — | (0.5 | ) | Gain on sale of plant | (0.1) | — | — | |||||||||||||||||
Impairment of intangible assets | — | — | 2.5 | ||||||||||||||||||||||
Impairments | Impairments | 0.6 | — | — | |||||||||||||||||||||
Income from operations | 17.4 | 16.4 | 16.2 | Income from operations | 12.9 | 17.4 | 16.4 | ||||||||||||||||||
Interest expense and deferred financing amortization, net | 2.9 | 2.2 | 1.1 | Interest expense and deferred financing amortization, net | 3.1 | 2.9 | 2.2 | ||||||||||||||||||
Net periodic pension benefit (other than service costs) | (1.0 | ) | (1.4 | ) | (1.3 | ) | |||||||||||||||||||
Other (income) expense, net | (0.1 | ) | 0.1 | — | |||||||||||||||||||||
Net periodic pension benefit (other than service cost & curtailment) | Net periodic pension benefit (other than service cost & curtailment) | (1.6) | (1.0) | (1.4) | |||||||||||||||||||||
Curtailment loss | Curtailment loss | 0.6 | — | — | |||||||||||||||||||||
Other expense (income), net | Other expense (income), net | 0.1 | (0.1) | 0.1 | |||||||||||||||||||||
Earnings before income taxes | 15.6 | 15.5 | 16.4 | Earnings before income taxes | 10.7 | 15.6 | 15.5 | ||||||||||||||||||
Provision for income taxes | 3.7 | 3.9 | 3.7 | Provision for income taxes | 2.4 | 3.7 | 3.9 | ||||||||||||||||||
Net earnings | 11.9 | % | 11.6 | % | 12.7 | % | Net earnings | 8.3 | % | 11.9 | % | 11.6 | % |
•Gross profit at the Residential Kitchen Equipment Group decreased by $0.3 million, or 0.1%, to $216.8 million in fiscal 2019 as compared to $217.1 million in fiscal 2018. Gross profit was offset by unfavorable foreign exchange rates of $3.9 million. The gross margin rate increased to 37.8% in fiscal 2019 as compared to 36.0% in the prior year. The gross margin rate in fiscal 2019 excluding acquisitions and impact of foreign exchange was 37.7%. |
Amounts Due Sellers From Acquisition | Debt (1) | Estimated Interest on Debt (1) | Operating Leases | Total Contractual Cash Obligations | Amounts Due Sellers From Acquisition | Debt | Estimated Interest on Debt | Operating Leases | Total Contractual Cash Obligations | |||||||||||||||||||||||||||||||||||||||
Less than 1 year | $ | 2,522 | $ | 2,894 | $ | 72,831 | $ | 24,563 | $ | 102,810 | Less than 1 year | $ | 13,787 | $ | 22,944 | $ | 55,755 | $ | 24,675 | $ | 117,161 | |||||||||||||||||||||||||||
1-3 years | 6,720 | 680 | 143,234 | 39,299 | 189,933 | 1-3 years | 17,972 | 38,317 | 99,712 | 37,880 | 193,881 | |||||||||||||||||||||||||||||||||||||
4-5 years | — | 164 | 140,972 | 22,876 | 164,012 | 4-5 years | 1,137 | 1,668,091 | 57,556 | 22,529 | 1,749,313 | |||||||||||||||||||||||||||||||||||||
After 5 years | — | 1,869,402 | 11,550 | 25,514 | 1,906,466 | After 5 years | 1,875 | 244 | 580 | 23,446 | 26,145 | |||||||||||||||||||||||||||||||||||||
$ | 9,242 | $ | 1,873,140 | $ | 368,587 | $ | 112,252 | $ | 2,363,221 | $ | 34,771 | $ | 1,729,596 | $ | 213,603 | $ | 108,530 | $ | 2,086,500 |
Variable Rate Debt | ||||||||
Variable Rate Debt | ||||||||
2020 | $ | 2,894 | ||||||
2021 | 378 | 2021 | $ | 22,944 | ||||
2022 | 302 | 2022 | 19,261 | |||||
2023 | 82 | 2023 | 19,056 | |||||
2024 and thereafter | 1,869,484 | |||||||
2024 | 2024 | 19,069 | ||||||
2025 and thereafter | 2025 and thereafter | 1,649,266 | ||||||
$ | 1,873,140 | $ | 1,729,596 |
Page | |||||
The following consolidated financial statement schedule is included in response to Item 15 | |||||
Impairment tests of indefinite-lived intangible assets | |||||
Description of the Matter | At Auditing the impairment tests of | ||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of the Company's controls over the impairment tests of indefinite-lived intangible assets. This included evaluating controls over the Company’s process used to develop the forecasts of future net sales and the selection of royalty rates and discount rates used in estimating the fair value of the trademarks and tradenames with indefinite lives. We also tested controls over management’s review of the completeness and accuracy of data used in their valuation models. To test the estimated fair value of the Company’s trademarks and tradenames, we performed audit procedures that included, among others, assessing the methodologies, testing the significant assumptions discussed above and testing the completeness and accuracy of the underlying data. We compared the significant assumptions used by management to current industry and economic trends, the Company’s historical results and other guideline companies within the same industry and evaluated whether changes in the Company’s business would affect the significant assumptions. We assessed the historical accuracy of management’s estimates by comparing them to actual operating results and performed sensitivity analyses of significant assumptions to evaluate the change in the fair value of the trademarks and tradenames with indefinite lives resulting from changes in these assumptions. We involved our |
2019 | 2018 | 2020 | 2019 | |||||||||||||||
ASSETS | ASSETS | |||||||||||||||||
Current assets: | Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 94,500 | $ | 71,701 | Cash and cash equivalents | $ | 268,103 | $ | 94,500 | |||||||||
Accounts receivable, net of reserve for doubtful accounts of $14,886 and $13,608 | 447,612 | 398,660 | ||||||||||||||||
Accounts receivable, net of reserve for doubtful accounts of $19,225 and $14,886 | Accounts receivable, net of reserve for doubtful accounts of $19,225 and $14,886 | 363,361 | 447,612 | |||||||||||||||
Inventories, net | 585,699 | 521,810 | Inventories, net | 540,198 | 585,699 | |||||||||||||
Prepaid expenses and other | 61,224 | 50,940 | Prepaid expenses and other | 81,049 | 61,224 | |||||||||||||
Prepaid taxes | 20,161 | 18,483 | Prepaid taxes | 17,782 | 20,161 | |||||||||||||
Total current assets | 1,209,196 | 1,061,594 | Total current assets | 1,270,493 | 1,209,196 | |||||||||||||
Property, plant and equipment, net of accumulated depreciation of $197,629 and $167,737 | 352,145 | 314,569 | ||||||||||||||||
Property, plant and equipment, net of accumulated depreciation of $229,871 and $197,629 | Property, plant and equipment, net of accumulated depreciation of $229,871 and $197,629 | 344,482 | 352,145 | |||||||||||||||
Goodwill | 1,849,747 | 1,743,175 | Goodwill | 1,934,261 | 1,849,747 | |||||||||||||
Other intangibles, net of amortization of $333,507 and $268,414 | 1,443,381 | 1,361,024 | ||||||||||||||||
Other intangibles, net of amortization of $403,347 and $333,507 | Other intangibles, net of amortization of $403,347 and $333,507 | 1,450,381 | 1,443,381 | |||||||||||||||
Long-term deferred tax assets | 36,932 | 32,188 | Long-term deferred tax assets | 76,052 | 36,932 | |||||||||||||
Other assets | 110,742 | 37,231 | Other assets | 126,805 | 110,742 | |||||||||||||
Total assets | $ | 5,002,143 | $ | 4,549,781 | Total assets | $ | 5,202,474 | $ | 5,002,143 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
Current liabilities: | Current liabilities: | |||||||||||||||||
Current maturities of long-term debt | $ | 2,894 | $ | 3,207 | Current maturities of long-term debt | $ | 22,944 | $ | 2,894 | |||||||||
Accounts payable | 173,693 | 188,299 | Accounts payable | 182,773 | 173,693 | |||||||||||||
Accrued expenses | 416,550 | 367,446 | Accrued expenses | 494,541 | 416,550 | |||||||||||||
Total current liabilities | 593,137 | 558,952 | Total current liabilities | 700,258 | 593,137 | |||||||||||||
Long-term debt | 1,870,246 | 1,888,898 | Long-term debt | 1,706,652 | 1,870,246 | |||||||||||||
Long-term deferred tax liability | 133,500 | 113,896 | Long-term deferred tax liability | 147,224 | 133,500 | |||||||||||||
Accrued pension benefits | 289,086 | 253,119 | Accrued pension benefits | 469,500 | 289,086 | |||||||||||||
Other non-current liabilities | 169,360 | 69,713 | Other non-current liabilities | 202,191 | 169,360 | |||||||||||||
Stockholders' equity: | Stockholders' equity: | |||||||||||||||||
Preferred stock, $0.01 par value; nonvoting; 2,000,000 shares authorized; none issued | — | — | ||||||||||||||||
Common stock, $0.01 par value; 63,129,775 and 62,592,707 shares issued in 2019 and 2018, respectively | 145 | 145 | ||||||||||||||||
Preferred stock, $0.01 par value; nonvoting; 2,000,000 shares authorized; NaN issued | Preferred stock, $0.01 par value; nonvoting; 2,000,000 shares authorized; NaN issued | — | — | |||||||||||||||
Common stock, $0.01 par value; 63,651,773 and 63,129,775 shares issued in 2020 and 2019, respectively | Common stock, $0.01 par value; 63,651,773 and 63,129,775 shares issued in 2020 and 2019, respectively | 147 | 145 | |||||||||||||||
Paid-in capital | 387,402 | 377,419 | Paid-in capital | 433,308 | 387,402 | |||||||||||||
Treasury stock, at cost; 6,940,089 and 6,889,241 shares in 2019 and 2018 | (451,262 | ) | (445,118 | ) | ||||||||||||||
Treasury stock, at cost; 8,013,296 and 6,940,089 shares in 2020 and 2019 | Treasury stock, at cost; 8,013,296 and 6,940,089 shares in 2020 and 2019 | (537,134) | (451,262) | |||||||||||||||
Retained earnings | 2,361,462 | 2,009,233 | Retained earnings | 2,568,756 | 2,361,462 | |||||||||||||
Accumulated other comprehensive loss | (350,933 | ) | (276,476 | ) | Accumulated other comprehensive loss | (488,428) | (350,933) | |||||||||||
Total stockholders' equity | 1,946,814 | 1,665,203 | Total stockholders' equity | 1,976,649 | 1,946,814 | |||||||||||||
Total liabilities and stockholders' equity | $ | 5,002,143 | $ | 4,549,781 | Total liabilities and stockholders' equity | $ | 5,202,474 | $ | 5,002,143 |
2019 | 2018 | 2017 | 2020 | 2019 | 2018 | |||||||||||||||||||||||
Net sales | $ | 2,959,446 | $ | 2,722,931 | $ | 2,335,542 | Net sales | $ | 2,513,257 | $ | 2,959,446 | $ | 2,722,931 | |||||||||||||||
Cost of sales | 1,855,949 | 1,718,791 | 1,422,801 | Cost of sales | 1,631,209 | 1,855,949 | 1,718,791 | |||||||||||||||||||||
Gross profit | 1,103,497 | 1,004,140 | 912,741 | Gross profit | 882,048 | 1,103,497 | 1,004,140 | |||||||||||||||||||||
Selling, general, and administrative expenses | 593,813 | 538,842 | 468,219 | Selling, general, and administrative expenses | 531,897 | 593,813 | 538,842 | |||||||||||||||||||||
Restructuring expenses | 10,480 | 19,332 | 19,951 | Restructuring expenses | 12,375 | 10,480 | 19,332 | |||||||||||||||||||||
Gain on litigation settlement | (14,839 | ) | — | — | Gain on litigation settlement | 0 | (14,839) | 0 | ||||||||||||||||||||
Gain on sale of plant | — | — | (12,042 | ) | Gain on sale of plant | (1,982) | 0 | 0 | ||||||||||||||||||||
Impairment of intangible asset | — | — | 58,000 | |||||||||||||||||||||||||
Impairments | Impairments | 15,327 | 0 | 0 | ||||||||||||||||||||||||
Income from operations | 514,043 | 445,966 | 378,613 | Income from operations | 324,431 | 514,043 | 445,966 | |||||||||||||||||||||
Interest expense and deferred financing amortization, net | 82,609 | 58,742 | 25,983 | Interest expense and deferred financing amortization, net | 78,617 | 82,609 | 58,742 | |||||||||||||||||||||
Net periodic pension benefit (other than service costs) | (28,857 | ) | (38,114 | ) | (31,728 | ) | ||||||||||||||||||||||
Other (income) expense, net | (2,328 | ) | 1,825 | 829 | ||||||||||||||||||||||||
Net periodic pension benefit (other than service cost & curtailment) | Net periodic pension benefit (other than service cost & curtailment) | (39,996) | (29,722) | (39,020) | ||||||||||||||||||||||||
Curtailment loss | Curtailment loss | 14,682 | 865 | 906 | ||||||||||||||||||||||||
Other expense (income), net | Other expense (income), net | 3,071 | (2,328) | 1,825 | ||||||||||||||||||||||||
Earnings before income taxes | 462,619 | 423,513 | 383,529 | Earnings before income taxes | 268,057 | 462,619 | 423,513 | |||||||||||||||||||||
Provision for income taxes | 110,379 | 106,361 | 85,401 | Provision for income taxes | 60,763 | 110,379 | 106,361 | |||||||||||||||||||||
Net earnings | $ | 352,240 | $ | 317,152 | $ | 298,128 | Net earnings | $ | 207,294 | $ | 352,240 | $ | 317,152 | |||||||||||||||
Net earnings per share: | Net earnings per share: | |||||||||||||||||||||||||||
Basic | $ | 6.33 | $ | 5.71 | $ | 5.26 | Basic | $ | 3.76 | $ | 6.33 | $ | 5.71 | |||||||||||||||
Diluted | $ | 6.33 | $ | 5.70 | $ | 5.26 | Diluted | $ | 3.76 | $ | 6.33 | $ | 5.70 | |||||||||||||||
Weighted average number of shares | Weighted average number of shares | |||||||||||||||||||||||||||
Basic | 55,647 | 55,576 | 56,715 | Basic | 55,093 | 55,647 | 55,576 | |||||||||||||||||||||
Dilutive common stock equivalents | 9 | 28 | 4 | Dilutive common stock equivalents | 43 | 9 | 28 | |||||||||||||||||||||
Diluted | 55,656 | 55,604 | 56,719 | Diluted | 55,136 | 55,656 | 55,604 |
2020 | 2019 | 2018 | |||||||||||||||
Net earnings | $ | 207,294 | $ | 352,240 | $ | 317,152 | |||||||||||
Other comprehensive (loss) income: | |||||||||||||||||
Foreign currency translation adjustments | 55,744 | 7,066 | (43,050) | ||||||||||||||
Pension liability adjustment, net of tax | (172,583) | (57,398) | 32,125 | ||||||||||||||
Unrealized (loss) gain on interest rate swaps, net of tax | (20,656) | (24,125) | 868 | ||||||||||||||
Other comprehensive (loss) income: | $ | (137,495) | $ | (74,457) | $ | (10,057) | |||||||||||
Comprehensive income | $ | 69,799 | $ | 277,783 | $ | 307,095 |
2019 | 2018 | 2017 | |||||||||
Net earnings | $ | 352,240 | $ | 317,152 | $ | 298,128 | |||||
Other comprehensive (loss) income: | |||||||||||
Foreign currency translation adjustments | 7,066 | (43,050 | ) | 46,690 | |||||||
Pension liability adjustment, net of tax | (57,398 | ) | 32,125 | (29,669 | ) | ||||||
Unrealized (loss) gain on interest rate swaps, net of tax | (24,125 | ) | 868 | 883 | |||||||
Other comprehensive (loss) income: | $ | (74,457 | ) | $ | (10,057 | ) | $ | 17,904 | |||
Comprehensive income | $ | 277,783 | $ | 307,095 | $ | 316,032 |
Common Stock | Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income/(loss) | Total Stockholders' Equity | ||||||||||||||||||
Balance, December 31, 2016 | $ | 144 | $ | 355,287 | $ | (205,280 | ) | $ | 1,399,490 | $ | (284,323 | ) | $ | 1,265,318 | |||||||||
Net earnings | — | — | — | 298,128 | — | 298,128 | |||||||||||||||||
Currency translation adjustments | — | — | — | — | 46,690 | 46,690 | |||||||||||||||||
Change in unrecognized pension benefit costs, net of tax of $(5,588) | — | — | — | — | (29,669 | ) | (29,669 | ) | |||||||||||||||
Unrealized gain on interest rate swap, net of tax of $588 | — | — | — | — | 883 | 883 | |||||||||||||||||
Stock compensation | — | 6,237 | — | — | — | 6,237 | |||||||||||||||||
Stock issuance | 1 | 13,398 | — | — | — | 13,399 | |||||||||||||||||
Purchase of treasury stock | — | — | (239,838 | ) | — | — | (239,838 | ) | |||||||||||||||
Balance, December 30, 2017 | $ | 145 | $ | 374,922 | $ | (445,118 | ) | $ | 1,697,618 | $ | (266,419 | ) | $ | 1,361,148 | |||||||||
Net earnings | — | — | — | 317,152 | — | 317,152 | |||||||||||||||||
Adoption of ASU 2018-02 (1) | — | — | — | (1,132 | ) | 1,132 | — | ||||||||||||||||
Adoption of ASU 2014-09 (2) | — | — | — | (4,405 | ) | — | (4,405 | ) | |||||||||||||||
Currency translation adjustments | — | — | — | — | (43,050 | ) | (43,050 | ) | |||||||||||||||
Change in unrecognized pension benefit costs, net of tax of $6,386 | — | — | — | — | 32,612 | 32,612 | |||||||||||||||||
Unrealized gain on interest rate swap, net of tax of $(81) | — | — | — | — | (751 | ) | (751 | ) | |||||||||||||||
Stock compensation | — | 2,497 | — | — | — | 2,497 | |||||||||||||||||
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 (3) | — | — | — | (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 |
Common Stock | Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income/(loss) | Total Stockholders' Equity | ||||||||||||||||||||||||||||||
Balance, December 30, 2017 | $ | 145 | $ | 374,922 | $ | (445,118) | $ | 1,697,618 | $ | (266,419) | $ | 1,361,148 | |||||||||||||||||||||||
Net earnings | 0 | 0 | 0 | 317,152 | 0 | 317,152 | |||||||||||||||||||||||||||||
Adoption of ASU 2018-02 (1) | 0 | 0 | 0 | (1,132) | 1,132 | 0 | |||||||||||||||||||||||||||||
Adoption of ASU 2014-09 (2) | 0 | 0 | 0 | (4,405) | 0 | (4,405) | |||||||||||||||||||||||||||||
Currency translation adjustments | 0 | 0 | 0 | 0 | (43,050) | (43,050) | |||||||||||||||||||||||||||||
Change in unrecognized pension benefit costs, net of tax of $6,386 | 0 | 0 | 0 | 0 | 32,612 | 32,612 | |||||||||||||||||||||||||||||
Unrealized gain on interest rate swap, net of tax of $(81) | 0 | 0 | 0 | 0 | (751) | (751) | |||||||||||||||||||||||||||||
Stock compensation | 0 | 2,497 | 0 | 0 | 0 | 2,497 | |||||||||||||||||||||||||||||
Balance, December 29, 2018 | $ | 145 | $ | 377,419 | $ | (445,118) | $ | 2,009,233 | $ | (276,476) | $ | 1,665,203 | |||||||||||||||||||||||
Net earnings | 0 | 0 | 0 | 352,240 | 0 | 352,240 | |||||||||||||||||||||||||||||
Adoption of ASU 2017-12 (3) | 0 | 0 | 0 | (11) | 11 | 0 | |||||||||||||||||||||||||||||
Currency translation adjustments | 0 | 0 | 0 | 0 | 7,066 | 7,066 | |||||||||||||||||||||||||||||
Change in unrecognized pension benefit costs, net of tax of $(11,914) | 0 | 0 | 0 | 0 | (57,398) | (57,398) | |||||||||||||||||||||||||||||
Unrealized loss on interest rate swap, net of tax of $(8,516) | 0 | 0 | 0 | 0 | (24,136) | (24,136) | |||||||||||||||||||||||||||||
Stock compensation | 0 | 8,133 | 0 | 0 | 0 | 8,133 | |||||||||||||||||||||||||||||
Stock issuance | 0 | 1,850 | 0 | 0 | 0 | 1,850 | |||||||||||||||||||||||||||||
Purchase of treasury stock | 0 | 0 | (6,144) | 0 | 0 | (6,144) | |||||||||||||||||||||||||||||
Balance, December 28, 2019 | $ | 145 | $ | 387,402 | $ | (451,262) | $ | 2,361,462 | $ | (350,933) | $ | 1,946,814 | |||||||||||||||||||||||
Net earnings | $ | 0 | $ | 0 | $ | 0 | $ | 207,294 | $ | 0 | $ | 207,294 | |||||||||||||||||||||||
Currency translation adjustments | 0 | 0 | 0 | 0 | 55,744 | 55,744 | |||||||||||||||||||||||||||||
Change in unrecognized pension benefit costs, net of tax of $(40,426) | 0 | 0 | 0 | 0 | (172,583) | (172,583) | |||||||||||||||||||||||||||||
Unrealized loss on interest rate swap, net of tax of $(7,147) | 0 | 0 | 0 | 0 | (20,656) | (20,656) | |||||||||||||||||||||||||||||
Stock compensation | 0 | 19,613 | 0 | 0 | 0 | 19,613 | |||||||||||||||||||||||||||||
Stock issuance | 2 | 25,985 | 0 | 0 | 0 | 25,987 | |||||||||||||||||||||||||||||
Purchase of treasury stock | 0 | 0 | (85,872) | 0 | 0 | (85,872) | |||||||||||||||||||||||||||||
Equity component of issuance of convertible notes | 0 | 308 | 0 | 0 | 0 | 308 | |||||||||||||||||||||||||||||
Balance, January 2, 2021 | $ | 147 | $ | 433,308 | $ | (537,134) | $ | 2,568,756 | $ | (488,428) | $ | 1,976,649 |
2019 | 2018 | 2017 | 2020 | 2019 | 2018 | |||||||||||||||||||||||
Cash flows from operating activities— | Cash flows from operating activities— | |||||||||||||||||||||||||||
Net earnings | $ | 352,240 | $ | 317,152 | $ | 298,128 | Net earnings | $ | 207,294 | $ | 352,240 | $ | 317,152 | |||||||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities | Adjustments to reconcile net earnings to net cash provided by operating activities | |||||||||||||||||||||||||||
Depreciation and amortization | 103,428 | 97,238 | 69,774 | Depreciation and amortization | 110,532 | 103,428 | 97,238 | |||||||||||||||||||||
Amortization of discount and issuance costs on convertible notes | Amortization of discount and issuance costs on convertible notes | 7,971 | 0 | 0 | ||||||||||||||||||||||||
Non-cash share-based compensation | 8,133 | 2,497 | 6,237 | Non-cash share-based compensation | 19,613 | 8,133 | 2,497 | |||||||||||||||||||||
Deferred income taxes | 22,212 | 20,489 | (14,492 | ) | Deferred income taxes | 16,421 | 22,212 | 20,489 | ||||||||||||||||||||
Net periodic pension benefit (other than service costs) | (28,857 | ) | (38,114 | ) | (31,728 | ) | Net periodic pension benefit (other than service costs) | (25,314) | (28,857) | (38,114) | ||||||||||||||||||
Gain on sale of plant | — | — | (12,042 | ) | Gain on sale of plant | (1,982) | 0 | 0 | ||||||||||||||||||||
Impairment of equipment | — | 783 | 3,114 | |||||||||||||||||||||||||
Impairment of intangible asset | — | — | 58,000 | |||||||||||||||||||||||||
Impairments | Impairments | 15,327 | 0 | 783 | ||||||||||||||||||||||||
Non-cash restructuring | — | 5,637 | — | Non-cash restructuring | 0 | 0 | 5,637 | |||||||||||||||||||||
Changes in assets and liabilities, net of acquisitions | Changes in assets and liabilities, net of acquisitions | |||||||||||||||||||||||||||
Accounts receivable, net | (27,748 | ) | (25,347 | ) | 26,180 | Accounts receivable, net | 90,399 | (27,748) | (25,347) | |||||||||||||||||||
Inventories, net | (28,288 | ) | (28,378 | ) | (9,744 | ) | Inventories, net | 66,690 | (28,288) | (28,378) | ||||||||||||||||||
Prepaid expenses and other assets | 5,067 | 18,145 | (34,122 | ) | Prepaid expenses and other assets | 782 | 5,067 | 18,145 | ||||||||||||||||||||
Accounts payable | (29,396 | ) | 13,611 | (21,631 | ) | Accounts payable | (3,015) | (29,396) | 13,611 | |||||||||||||||||||
Accrued expenses and other liabilities | 634 | (14,799 | ) | (33,219 | ) | Accrued expenses and other liabilities | 20,067 | 634 | (14,799) | |||||||||||||||||||
Net cash provided by operating activities | 377,425 | 368,914 | 304,455 | Net cash provided by operating activities | 524,785 | 377,425 | 368,914 | |||||||||||||||||||||
Cash flows from investing activities— | Cash flows from investing activities— | |||||||||||||||||||||||||||
Additions to property and equipment | (46,609 | ) | (36,040 | ) | (54,493 | ) | ||||||||||||||||||||||
Proceeds on sale of plant | — | — | 14,278 | |||||||||||||||||||||||||
Purchase of tradename | — | (5,399 | ) | — | ||||||||||||||||||||||||
Net additions to property, plant and equipment | Net additions to property, plant and equipment | (34,849) | (46,609) | (36,040) | ||||||||||||||||||||||||
Proceeds on sale of property, plant and equipment | Proceeds on sale of property, plant and equipment | 14,147 | 0 | 0 | ||||||||||||||||||||||||
Purchase of intangible assets | Purchase of intangible assets | (7,052) | 0 | (5,399) | ||||||||||||||||||||||||
Acquisitions, net of cash acquired | (281,058 | ) | (1,197,984 | ) | (305,251 | ) | Acquisitions, net of cash acquired | (79,003) | (281,058) | (1,197,984) | ||||||||||||||||||
Net cash used in investing activities | (327,667 | ) | (1,239,423 | ) | (345,466 | ) | Net cash used in investing activities | (106,757) | (327,667) | (1,239,423) | ||||||||||||||||||
Cash flows from financing activities— | Cash flows from financing activities— | |||||||||||||||||||||||||||
Proceeds under Credit Facility | 543,294 | 1,611,110 | 758,883 | Proceeds under Credit Facility | 2,567,305 | 543,294 | 1,611,110 | |||||||||||||||||||||
Repayments under Credit Facility | (560,363 | ) | (746,281 | ) | (462,112 | ) | Repayments under Credit Facility | (3,345,770) | (560,363) | (746,281) | ||||||||||||||||||
Proceeds from issuance of convertible notes, net of issuance costs | Proceeds from issuance of convertible notes, net of issuance costs | 729,933 | 0 | 0 | ||||||||||||||||||||||||
Premiums paid for capped call | Premiums paid for capped call | (104,650) | 0 | 0 | ||||||||||||||||||||||||
Net repayments under foreign bank loan | (405 | ) | (7,088 | ) | (1,062 | ) | Net repayments under foreign bank loan | 1,305 | (405) | (7,088) | ||||||||||||||||||
Net repayments under other debt arrangement | (179 | ) | (3 | ) | (35 | ) | Net repayments under other debt arrangement | (45) | (179) | (3) | ||||||||||||||||||
Payments of deferred purchase price | (1,648 | ) | (1,234 | ) | — | Payments of deferred purchase price | (3,700) | (1,648) | (1,234) | |||||||||||||||||||
Repurchase of treasury stock | (6,144 | ) | — | (239,838 | ) | Repurchase of treasury stock | (85,872) | (6,144) | 0 | |||||||||||||||||||
Debt issuance costs | — | (375 | ) | — | Debt issuance costs | (10,974) | 0 | (375) | ||||||||||||||||||||
Net cash (used in) provided by financing activities | (25,445 | ) | 856,129 | 55,836 | Net cash (used in) provided by financing activities | (252,468) | (25,445) | 856,129 | ||||||||||||||||||||
Effect of exchange rates on cash and cash equivalents | (1,514 | ) | (3,573 | ) | 6,344 | Effect of exchange rates on cash and cash equivalents | 8,043 | (1,514) | (3,573) | |||||||||||||||||||
Changes in cash and cash equivalents— | Changes in cash and cash equivalents— | |||||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 22,799 | (17,953 | ) | 21,169 | Net increase (decrease) in cash and cash equivalents | 173,603 | 22,799 | (17,953) | ||||||||||||||||||||
Cash and cash equivalents at beginning of year | 71,701 | 89,654 | 68,485 | Cash and cash equivalents at beginning of year | 94,500 | 71,701 | 89,654 | |||||||||||||||||||||
Cash and cash equivalents at end of year | $ | 94,500 | $ | 71,701 | $ | 89,654 | Cash and cash equivalents at end of year | $ | 268,103 | $ | 94,500 | $ | 71,701 | |||||||||||||||
Non-cash investing and financing activities: | Non-cash investing and financing activities: | |||||||||||||||||||||||||||
Stock issuance related to acquisitions | $ | — | $ | — | $ | 13,399 | ||||||||||||||||||||||
Stock issuance related to acquisition and purchase of intangible assets | Stock issuance related to acquisition and purchase of intangible assets | 15,869 | 0 | 0 |
(as initially reported) June 22, 2018 | Measurement Period Adjustments | (as adjusted) June 22, 2018 | |||||||||
Cash | $ | 2,551 | $ | 64 | $ | 2,615 | |||||
Current assets | 71,162 | (2,011 | ) | 69,151 | |||||||
Property, plant and equipment | 21,187 | (556 | ) | 20,631 | |||||||
Goodwill | 491,339 | (120,497 | ) | 370,842 | |||||||
Other intangibles | 484,210 | 119,550 | 603,760 | ||||||||
Other assets | — | 361 | 361 | ||||||||
Long-term deferred tax asset | — | 227 | 227 | ||||||||
Current liabilities | (48,417 | ) | (4,099 | ) | (52,516 | ) | |||||
Other non-current liabilities | (8,161 | ) | (648 | ) | (8,809 | ) | |||||
Net assets acquired and liabilities assumed | $ | 1,013,871 | $ | (7,609 | ) | $ | 1,006,262 |
(as initially reported) April 1, 2019 | Preliminary Measurement Period Adjustments | (as adjusted) April 1, 2019 | |||||||||
Cash | $ | 843 | $ | — | $ | 843 | |||||
Current assets | 33,666 | (1,325 | ) | 32,341 | |||||||
Property, plant and equipment | 15,959 | (243 | ) | 15,716 | |||||||
Goodwill | 31,207 | 5,327 | 36,534 | ||||||||
Other intangibles | 53,450 | (5,850 | ) | 47,600 | |||||||
Other assets | — | 1,470 | 1,470 | ||||||||
Current liabilities | (15,130 | ) | (368 | ) | (15,498 | ) | |||||
Long-term deferred tax liability | (13,082 | ) | 2,226 | (10,856 | ) | ||||||
Other non-current liabilities | — | (1,163 | ) | (1,163 | ) | ||||||
Net assets acquired and liabilities assumed | $ | 106,913 | $ | 74 | $ | 106,987 |
Preliminary Opening Balance Sheet | Measurement Period Adjustments | Adjusted Opening Balance Sheet | |||||||||||||||
Cash | $ | 843 | $ | 0 | $ | 843 | |||||||||||
Current assets | 33,666 | (1,625) | 32,041 | ||||||||||||||
Property, plant and equipment | 15,959 | (58) | 15,901 | ||||||||||||||
Goodwill | 31,207 | 6,330 | 37,537 | ||||||||||||||
Other intangibles | 53,450 | (5,850) | 47,600 | ||||||||||||||
Other assets | 0 | 1,470 | 1,470 | ||||||||||||||
Current liabilities | (15,130) | (1,583) | (16,713) | ||||||||||||||
Long-term deferred tax liability | (13,082) | 2,553 | (10,529) | ||||||||||||||
Other non-current liabilities | 0 | (1,163) | (1,163) | ||||||||||||||
Net assets acquired and liabilities assumed | $ | 106,913 | $ | 74 | $ | 106,987 |
Preliminary Opening Balance Sheet | Measurement Period Adjustments | Adjusted Opening Balance Sheet | |||||||||
Cash | $ | 16,293 | $ | (37 | ) | $ | 16,256 | ||||
Current assets | 38,048 | 115 | 38,163 | ||||||||
Property, plant and equipment | 22,340 | 3,658 | 25,998 | ||||||||
Goodwill | 126,647 | (14,312 | ) | 112,335 | |||||||
Other intangibles | 46,902 | 15,900 | 62,802 | ||||||||
Other assets | 14 | — | 14 | ||||||||
Current portion of long term debt | (3,329 | ) | — | (3,329 | ) | ||||||
Current liabilities | (23,606 | ) | (1,521 | ) | (25,127 | ) | |||||
Long term debt | (2,677 | ) | — | (2,677 | ) | ||||||
Long-term deferred tax liability | (8,937 | ) | (4,923 | ) | (13,860 | ) | |||||
Other non-current liabilities | (3,699 | ) | — | (3,699 | ) | ||||||
Consideration paid at closing | $ | 207,996 | $ | (1,120 | ) | $ | 206,876 | ||||
Contingent consideration | 3,454 | — | 3,454 | ||||||||
Net assets acquired and liabilities assumed | $ | 211,450 | $ | (1,120 | ) | $ | 210,330 |
Preliminary Opening Balance Sheet | Measurement Period Adjustments | Adjusted Opening Balance Sheet | |||||||||
Cash | $ | 2,683 | $ | (10 | ) | $ | 2,673 | ||||
Current assets | 21,525 | 980 | 22,505 | ||||||||
Property, plant and equipment | 8,920 | 18 | 8,938 | ||||||||
Goodwill | 99,838 | (3,096 | ) | 96,742 | |||||||
Other intangibles | 64,019 | 199 | 64,218 | ||||||||
Long-term deferred tax asset | 1,288 | 1,478 | 2,766 | ||||||||
Other assets | 137 | 854 | 991 | ||||||||
Current liabilities | (20,437 | ) | (535 | ) | (20,972 | ) | |||||
Other non-current liabilities | (6,170 | ) | (529 | ) | (6,699 | ) | |||||
Consideration paid at closing | $ | 171,803 | $ | (641 | ) | $ | 171,162 | ||||
Deferred payments | 2,404 | — | 2,404 | ||||||||
Contingent consideration | 4,258 | — | 4,258 | ||||||||
Net assets acquired and liabilities assumed | $ | 178,465 | $ | (641 | ) | $ | 177,824 |
Preliminary Opening Balance Sheet | Measurement Period Adjustments | Adjusted Opening Balance Sheet | |||||||||||||||
Cash | $ | 2,683 | $ | (10) | $ | 2,673 | |||||||||||
Current assets | 21,525 | 920 | 22,445 | ||||||||||||||
Property, plant and equipment | 8,920 | (166) | 8,754 | ||||||||||||||
Goodwill | 99,838 | (11,117) | 88,721 | ||||||||||||||
Other intangibles | 64,019 | 11,363 | 75,382 | ||||||||||||||
Long-term deferred tax asset | 1,288 | 1,428 | 2,716 | ||||||||||||||
Other assets | 137 | 854 | 991 | ||||||||||||||
Current liabilities | (20,437) | (348) | (20,785) | ||||||||||||||
Other non-current liabilities | (6,170) | (4,129) | (10,299) | ||||||||||||||
Consideration paid at closing | $ | 171,803 | $ | (1,205) | $ | 170,598 | |||||||||||
Deferred payments | 2,404 | 0 | 2,404 | ||||||||||||||
Contingent consideration | 4,258 | 3,600 | 7,858 | ||||||||||||||
Net assets acquired and liabilities assumed | $ | 178,465 | $ | 2,395 | $ | 180,860 |
Preliminary Opening Balance Sheet | Preliminary Measurement Period Adjustments | Adjusted Opening Balance Sheet | |||||||||||||||
Cash | $ | 14,647 | $ | 0 | $ | 14,647 | |||||||||||
Current assets | 43,670 | (13,674) | 29,996 | ||||||||||||||
Property, plant and equipment | 3,014 | (241) | 2,773 | ||||||||||||||
Goodwill | 55,335 | 1,438 | 56,773 | ||||||||||||||
Other intangibles | 63,201 | 0 | 63,201 | ||||||||||||||
Other assets | 6,121 | 0 | 6,121 | ||||||||||||||
Current liabilities | (54,478) | 12,477 | (42,001) | ||||||||||||||
Long-term deferred tax liability | (123) | 0 | (123) | ||||||||||||||
Other non-current liabilities | (21,902) | 0 | (21,902) | ||||||||||||||
Consideration paid at closing | $ | 109,485 | $ | 0 | $ | 109,485 | |||||||||||
Deferred payments | 8,666 | 0 | 8,666 | ||||||||||||||
Contingent consideration | 16,144 | 0 | 16,144 | ||||||||||||||
Net assets acquired and liabilities assumed | $ | 134,295 | $ | 0 | $ | 134,295 |
Twelve Months Ended | Twelve Months Ended | |||||||||||||||||
December 28, 2019 | December 29, 2018 | January 2, 2021 | December 28, 2019 | |||||||||||||||
Net sales | $ | 3,022,279 | $ | 3,078,487 | Net sales | $ | 2,563,195 | $ | 3,119,550 | |||||||||
Net earnings | 344,823 | 285,642 | Net earnings | 213,866 | 338,343 | |||||||||||||
Net earnings per share: | Net earnings per share: | |||||||||||||||||
Basic | $ | 6.20 | $ | 5.14 | Basic | $ | 3.88 | $ | 6.08 | |||||||||
Diluted | $ | 6.20 | $ | 5.14 | Diluted | $ | 3.88 | $ | 6.08 |
2019 | 2018 | ||||||
Raw materials and parts | $ | 277,394 | $ | 245,976 | |||
Work in process | 58,663 | 51,164 | |||||
Finished goods | 249,642 | 224,670 | |||||
$ | 585,699 | $ | 521,810 |
2020 | 2019 | ||||||||||
Raw materials and parts | $ | 263,200 | $ | 277,394 | |||||||
Work in process | 55,104 | 58,663 | |||||||||
Finished goods | 221,894 | 249,642 | |||||||||
$ | 540,198 | $ | 585,699 |
2019 | 2018 | ||||||
Land | $ | 43,467 | $ | 32,523 | |||
Building and improvements | 229,025 | 196,743 | |||||
Furniture and fixtures | 67,992 | 64,586 | |||||
Machinery and equipment | 209,290 | 188,454 | |||||
549,774 | 482,306 | ||||||
Less accumulated depreciation | (197,629 | ) | (167,737 | ) | |||
$ | 352,145 | $ | 314,569 |
2020 | 2019 | ||||||||||
Land | $ | 40,707 | $ | 43,467 | |||||||
Building and improvements | 245,435 | 229,025 | |||||||||
Furniture and fixtures | 68,063 | 67,992 | |||||||||
Machinery and equipment | 220,148 | 209,290 | |||||||||
574,353 | 549,774 | ||||||||||
Less accumulated depreciation | (229,871) | (197,629) | |||||||||
$ | 344,482 | $ | 352,145 |
Description | Life | |||||||
Building and improvements | 20 to 40 years | |||||||
Furniture and fixtures | 3 to 7 years | |||||||
Machinery and equipment | 3 to 10 years |
Commercial Foodservice | Food Processing | Residential Kitchen | Total | ||||||||||||||||||||
Balance as of December 29, 2018 | $ | 1,102,067 | $ | 219,054 | $ | 422,054 | $ | 1,743,175 | |||||||||||||||
Goodwill acquired during the year | 81,339 | 43,613 | 9,503 | 134,455 | |||||||||||||||||||
Measurement period adjustments to goodwill acquired in prior year | (27,929) | (3,722) | 0 | (31,651) | |||||||||||||||||||
Exchange effect | (1,925) | (1,266) | 6,959 | 3,768 | |||||||||||||||||||
Balance as of December 28, 2019 | $ | 1,153,552 | $ | 257,679 | $ | 438,516 | $ | 1,849,747 | |||||||||||||||
Goodwill acquired during the year | 56,773 | 0 | 0 | 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 |
Commercial Foodservice | Food Processing | Residential Kitchen | Total | ||||||||||||
Balance as of December 30, 2017 | $ | 631,451 | $ | 198,278 | $ | 435,081 | $ | 1,264,810 | |||||||
Goodwill acquired during the year | 487,032 | 30,624 | — | 517,656 | |||||||||||
Measurement period adjustments to goodwill acquired in prior year | (1,559 | ) | (5,679 | ) | — | (7,238 | ) | ||||||||
Exchange effect | (14,857 | ) | (4,169 | ) | (13,027 | ) | (32,053 | ) | |||||||
Balance as of December 29, 2018 | $ | 1,102,067 | $ | 219,054 | $ | 422,054 | $ | 1,743,175 | |||||||
Goodwill acquired during the year | 81,339 | 43,613 | 9,503 | 134,455 | |||||||||||
Measurement period adjustments to goodwill acquired in prior year | (27,929 | ) | (3,722 | ) | — | (31,651 | ) | ||||||||
Exchange effect | (1,925 | ) | (1,266 | ) | 6,959 | 3,768 | |||||||||
Balance as of December 28, 2019 | $ | 1,153,552 | $ | 257,679 | $ | 438,516 | $ | 1,849,747 |
December 28, 2019 | December 29, 2018 | ||||||||||||||||||
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 | 9.2 | $ | 717,397 | $ | (283,846 | ) | 9.5 | $ | 644,145 | $ | (222,661 | ) | |||||||
Backlog | 1.3 | 29,426 | (28,283 | ) | 2.8 | 27,065 | (24,755 | ) | |||||||||||
Developed technology | 5.2 | 32,999 | (21,378 | ) | 5.9 | 39,624 | (20,998 | ) | |||||||||||
$ | 779,822 | $ | (333,507 | ) | $ | 710,834 | $ | (268,414 | ) | ||||||||||
Indefinite-lived assets: | |||||||||||||||||||
Trademarks and tradenames | $ | 997,066 | $ | 918,604 |
January 2, 2021 | December 28, 2019 | ||||||||||||||||||||||||||||||||||
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 | 8.5 | $ | 735,264 | $ | (347,029) | 9.2 | $ | 717,397 | $ | (283,846) | |||||||||||||||||||||||||
Backlog | 0.3 | 34,729 | (31,924) | 1.3 | 29,426 | (28,283) | |||||||||||||||||||||||||||||
Developed technology | 10.0 | 56,931 | (24,394) | 5.2 | 32,999 | (21,378) | |||||||||||||||||||||||||||||
$ | 826,924 | $ | (403,347) | $ | 779,822 | $ | (333,507) | ||||||||||||||||||||||||||||
Indefinite-lived assets: | |||||||||||||||||||||||||||||||||||
Trademarks and tradenames | $ | 1,026,804 | $ | 997,066 |
2021 | $ | 68,413 | |||
2022 | 62,050 | ||||
2023 | 56,058 | ||||
2024 | 44,587 | ||||
2025 | 38,226 | ||||
2026 and thereafter | 154,243 | ||||
$ | 423,577 |
2020 | $ | 66,177 | |
2021 | 62,246 | ||
2022 | 57,921 | ||
2023 | 51,916 | ||
2024 | 40,456 | ||
2025 and thereafter | 167,599 | ||
$ | 446,315 |
2019 | 2018 | ||||||
Accrued payroll and related expenses | $ | 81,541 | $ | 74,952 | |||
Contract liabilities | 74,511 | 57,913 | |||||
Accrued warranty | 66,374 | 59,451 | |||||
Accrued customer rebates | 51,709 | 45,740 | |||||
Accrued short-term leases | 21,827 | — | |||||
Accrued sales and other tax | 19,862 | 19,452 | |||||
Accrued product liability and workers compensation | 15,164 | 16,284 | |||||
Accrued agent commission | 13,816 | 11,969 | |||||
Accrued professional fees | 13,368 | 17,313 | |||||
Other accrued expenses | 58,378 | 64,372 | |||||
$ | 416,550 | $ | 367,446 |
2020 | 2019 | ||||||||||
Accrued payroll and related expenses | $ | 93,926 | $ | 80,621 | |||||||
Contract liabilities | 93,871 | 74,511 | |||||||||
Accrued warranty | 69,667 | 66,374 | |||||||||
Accrued customer rebates | 43,703 | 51,709 | |||||||||
Accrued short-term leases | 22,493 | 21,827 | |||||||||
Accrued liabilities held for sale | 22,313 | 0 | |||||||||
Accrued sales and other tax | 22,030 | 19,862 | |||||||||
Accrued interest rate swaps | 14,075 | 0 | |||||||||
Accrued product liability and workers compensation | 12,909 | 15,164 | |||||||||
Accrued professional fees | 12,133 | 13,368 | |||||||||
Accrued agent commission | 11,105 | 13,816 | |||||||||
Accrued restructuring | 2,686 | 1,121 | |||||||||
Other accrued expenses | 73,630 | 58,177 | |||||||||
$ | 494,541 | $ | 416,550 |
2019 | 2018 | ||||||
Unrecognized pension benefit costs, net of tax of ($48,633) and ($36,719) | $ | (228,336 | ) | $ | (170,938 | ) | |
Unrealized gain on interest rate swap, net of tax of ($5,973) and $2,543 | (16,892 | ) | 7,233 | ||||
Currency translation adjustments | (105,705 | ) | (112,771 | ) | |||
$ | (350,933 | ) | $ | (276,476 | ) |
2020 | 2019 | ||||||||||
Unrecognized pension benefit costs, net of tax of $(89,059) and $(48,633) | $ | (400,919) | $ | (228,336) | |||||||
Unrealized gain on interest rate swap, net of tax of $(13,120) and $(5,973) | (37,548) | (16,892) | |||||||||
Currency translation adjustments | (49,961) | (105,705) | |||||||||
$ | (488,428) | $ | (350,933) |
Currency Translation Adjustment | Pension Benefit Costs | Unrealized Gain/(Loss) Interest Rate Swap | Total | ||||||||||||
Balance as of December 30, 2017 | $ | (69,721 | ) | $ | (203,063 | ) | $ | 6,365 | $ | (266,419 | ) | ||||
Adoption of ASU 2018-02 (2) | — | (487 | ) | 1,619 | 1,132 | ||||||||||
Other comprehensive income before reclassification | (43,050 | ) | 29,527 | (1,166 | ) | (14,689 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | — | 3,085 | 415 | 3,500 | |||||||||||
Net current-period other comprehensive income | $ | (43,050 | ) | $ | 32,125 | $ | 868 | $ | (10,057 | ) | |||||
Balance as of December 29, 2018 | $ | (112,771 | ) | $ | (170,938 | ) | $ | 7,233 | $ | (276,476 | ) | ||||
Adoption of ASU 2017-12 (3) | — | — | 11 | 11 | |||||||||||
Other comprehensive income before reclassification | 7,066 | (59,238 | ) | (25,392 | ) | (77,564 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | — | 1,840 | 1,256 | 3,096 | |||||||||||
Net current-period other comprehensive income | $ | 7,066 | $ | (57,398 | ) | $ | (24,125 | ) | $ | (74,457 | ) | ||||
Balance as of December 28, 2019 | $ | (105,705 | ) | $ | (228,336 | ) | $ | (16,892 | ) | $ | (350,933 | ) |
Currency Translation Adjustment | Pension Benefit Costs | Unrealized Gain/(Loss) Interest Rate Swap | Total | ||||||||||||||||||||
Balance as of December 29, 2018 | $ | (112,771) | $ | (170,938) | $ | 7,233 | $ | (276,476) | |||||||||||||||
Adoption of ASU 2017-12 (2) | 0 | 0 | 11 | 11 | |||||||||||||||||||
Other comprehensive income before reclassification | 7,066 | (59,238) | (22,880) | (75,052) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 0 | 1,840 | (1,256) | 584 | |||||||||||||||||||
Net current-period other comprehensive income | $ | 7,066 | $ | (57,398) | $ | (24,125) | $ | (74,457) | |||||||||||||||
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 | 0 | 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) |
Fair Value Level 1 | Fair Value Level 2 | Fair Value Level 3 | Total | ||||||||||||||||||||
As of January 2, 2021 | |||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||
Interest rate swaps | $ | 0 | $ | 51,093 | $ | 0 | $ | 51,093 | |||||||||||||||
Contingent consideration | $ | 0 | $ | 0 | $ | 25,558 | $ | 25,558 | |||||||||||||||
Foreign exchange derivative contracts | $ | 0 | $ | 2,191 | $ | 0 | $ | 2,191 | |||||||||||||||
As of December 28, 2019 | |||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||
Interest rate swaps | $ | 0 | $ | 1,830 | $ | 0 | $ | 1,830 | |||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||
Interest rate swaps | $ | 0 | $ | 25,120 | $ | 0 | $ | 25,120 | |||||||||||||||
Contingent consideration | $ | 0 | $ | 0 | $ | 6,697 | $ | 6,697 | |||||||||||||||
Foreign exchange derivative contracts | $ | 0 | $ | 901 | $ | 0 | $ | 901 |
Fair Value Level 1 | Fair Value Level 2 | Fair Value Level 3 | Total | ||||||||||||
As of December 28, 2019 | |||||||||||||||
Financial Assets: | |||||||||||||||
Interest rate swaps | $ | — | $ | 1,830 | $ | — | $ | 1,830 | |||||||
Financial Liabilities: | |||||||||||||||
Interest rate swaps | $ | — | $ | 25,120 | $ | — | $ | 25,120 | |||||||
Contingent consideration | $ | — | $ | — | $ | 6,697 | $ | 6,697 | |||||||
Foreign exchange derivative contracts | $ | — | $ | 901 | $ | — | $ | 901 | |||||||
As of December 29, 2018 | |||||||||||||||
Financial Assets: | |||||||||||||||
Interest rate swaps | $ | — | $ | 13,487 | $ | — | $ | 13,487 | |||||||
Financial Liabilities: | |||||||||||||||
Interest rate swaps | $ | — | $ | 4,125 | $ | — | $ | 4,125 | |||||||
Contingent consideration | $ | — | $ | — | $ | 3,566 | $ | 3,566 | |||||||
Foreign exchange derivative contracts | $ | — | $ | 854 | $ | — | $ | 854 |
2020 | 2019 | ||||||||||
Beginning balance | $ | 66,374 | $ | 59,451 | |||||||
Warranty reserve related to acquisitions | 1,485 | 7,353 | |||||||||
Warranty expense | 58,047 | 68,842 | |||||||||
Warranty claims paid | (56,239) | (69,272) | |||||||||
Ending balance | $ | 69,667 | $ | 66,374 |
2019 | 2018 | ||||||
Beginning balance | $ | 59,451 | $ | 52,834 | |||
Warranty reserve related to acquisitions | 7,353 | 5,884 | |||||
Warranty expense | 68,842 | 62,314 | |||||
Warranty claims paid | (69,272 | ) | (61,581 | ) | |||
Ending balance | $ | 66,374 | $ | 59,451 |
Commercial Foodservice | Food Processing | Residential Kitchen | Total | ||||||||||||||||||||
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 | |||||||||||||||
Twelve Months Ended December 29, 2018 | |||||||||||||||||||||||
United States and Canada | $ | 1,176,006 | $ | 263,743 | $ | 366,679 | $ | 1,806,428 | |||||||||||||||
Asia | 180,409 | 36,578 | 7,155 | 224,142 | |||||||||||||||||||
Europe and Middle East | 315,935 | 64,666 | 221,126 | 601,727 | |||||||||||||||||||
Latin America | 57,464 | 24,607 | 8,563 | 90,634 | |||||||||||||||||||
Total | $ | 1,729,814 | $ | 389,594 | $ | 603,523 | $ | 2,722,931 |
Commercial Foodservice | Food Processing | Residential Kitchen | Total | ||||||||||||
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 | |||||||
Twelve Months Ended December 29, 2018 | |||||||||||||||
United States and Canada | $ | 1,176,006 | $ | 263,743 | $ | 366,679 | $ | 1,806,428 | |||||||
Asia | 180,409 | 36,578 | 7,155 | 224,142 | |||||||||||
Europe and Middle East | 315,935 | 64,666 | 221,126 | 601,727 | |||||||||||
Latin America | 57,464 | 24,607 | 8,563 | 90,634 | |||||||||||
Total | $ | 1,729,814 | $ | 389,594 | $ | 603,523 | $ | 2,722,931 | |||||||
Twelve Months Ended December 30, 2017 | |||||||||||||||
United States and Canada | $ | 968,483 | $ | 256,739 | $ | 344,204 | $ | 1,569,426 | |||||||
Asia | 144,702 | 25,175 | 8,099 | 177,976 | |||||||||||
Europe and Middle East | 226,697 | 42,473 | 240,456 | 509,626 | |||||||||||
Latin America | 42,226 | 28,330 | 7,958 | 78,514 | |||||||||||
Total | $ | 1,382,108 | $ | 352,717 | $ | 600,717 | $ | 2,335,542 |
December 28, 2019 | December 29, 2018 | January 2, 2021 | December 28, 2019 | |||||||||||||||
Contract assets | $ | 22,675 | $ | 14,048 | Contract assets | $ | 20,328 | $ | 22,675 | |||||||||
Contract liabilities | $ | 74,511 | $ | 57,913 | Contract liabilities | $ | 93,871 | $ | 74,511 | |||||||||
Non-current contract liabilities | $ | 12,870 | $ | 12,170 | Non-current contract liabilities | $ | 13,523 | $ | 12,870 |
2019 | 2018 | ||||||
Senior secured revolving credit line | $ | 1,869,402 | $ | 1,887,764 | |||
Foreign loans | 3,622 | 4,166 | |||||
Other debt arrangement | 116 | 175 | |||||
Total debt | $ | 1,873,140 | $ | 1,892,105 | |||
Less current maturities of long-term debt | 2,894 | 3,207 | |||||
Long-term debt | $ | 1,870,246 | $ | 1,888,898 |
2020 | 2019 | ||||||||||
(in thousands) | |||||||||||
Senior secured revolving credit line | $ | 755,000 | $ | 1,869,402 | |||||||
Term loan facility | 335,938 | 0 | |||||||||
Convertible senior notes | 632,847 | 0 | |||||||||
Foreign loans | 4,421 | 3,622 | |||||||||
Other debt arrangement | 1,390 | 116 | |||||||||
Total debt | 1,729,596 | 1,873,140 | |||||||||
Less: Current maturities of long-term debt | 22,944 | 2,894 | |||||||||
Long-term debt | $ | 1,706,652 | $ | 1,870,246 |
December 28, 2019 | December 29, 2018 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Total debt | $ | 1,873,140 | $ | 1,873,140 | $ | 1,892,105 | $ | 1,892,105 |
Jan 2, 2021 | Dec 28, 2019 | ||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
Total debt excluding convertible senior notes | $ | 1,096,749 | $ | 1,096,749 | $ | 1,873,140 | $ | 1,873,140 |
Jan 2, 2021 | |||||||||||
(in thousands) | |||||||||||
Principal amounts: | |||||||||||
Principal | $ | 747,500 | |||||||||
Unamortized debt discount | (114,653) | ||||||||||
Net carrying amount | $ | 632,847 |
Twelve Months Ended | |||||
Jan 2, 2021 | |||||
Contractual interest expense | $ | 2,720 | |||
Interest cost related to amortization of the debt discount and issuance costs | 7,971 | ||||
Total interest expense | $ | 10,691 |
2020 | $ | 2,894 | ||||||
2021 | 378 | 2021 | $ | 22,944 | ||||
2022 | 302 | 2022 | 19,261 | |||||
2023 | 82 | 2023 | 19,056 | |||||
2024 and thereafter | 1,869,484 | |||||||
2024 | 2024 | 19,069 | ||||||
2025 and thereafter | 2025 and thereafter | 1,649,266 | ||||||
$ | 1,873,140 | $ | 1,729,596 |
Shares | Weighted Average Grant-Date Fair Value | ||||||||||
Nonvested shares at December 29, 2018 | 125,842 | $ | 103.29 | ||||||||
Granted | 537,059 | 113.26 | |||||||||
Vested | (135,816) | 105.81 | |||||||||
Forfeited | 0 | 0 | |||||||||
Nonvested shares at December 28, 2019 | 527,085 | $ | 112.60 | ||||||||
Granted | 389,993 | 57.74 | |||||||||
Vested | (476,261) | 68.54 | |||||||||
Forfeited | (7,752) | 66.01 | |||||||||
Nonvested shares at January 2, 2021 | 433,065 | $ | 112.54 |
Shares | Weighted Average Grant-Date Fair Value | |||||
Nonvested shares at December 30, 2017 | 159,203 | $ | 104.44 | |||
Granted | 132,038 | 100.50 | ||||
Vested | (6,203 | ) | 126.09 | |||
Forfeited | (159,196 | ) | 100.84 | |||
Nonvested shares at December 29, 2018 | 125,842 | $ | 103.29 | |||
Granted | 537,059 | 113.26 | ||||
Vested | (135,816 | ) | 105.81 | |||
Forfeited | — | — | ||||
Nonvested shares at December 28, 2019 | 527,085 | $ | 112.60 |
Units | Weighted Average Grant-Date Fair Value | ||||||||||
Nonvested shares at December 28, 2019 | 0 | $ | 0 | ||||||||
Granted | 95,000 | 135.31 | |||||||||
Vested | 0 | 0 | |||||||||
Forfeited | 0 | 0 | |||||||||
Nonvested shares at January 2, 2021 | 95,000 | $ | 135.31 |
2019 | 2018 | 2017 | |||||||||
Domestic | $ | 336,688 | $ | 328,870 | $ | 290,866 | |||||
Foreign | 125,931 | 94,643 | 92,663 | ||||||||
Total | $ | 462,619 | $ | 423,513 | $ | 383,529 |
2020 | 2019 | 2018 | |||||||||||||||
Domestic | $ | 178,813 | $ | 336,688 | $ | 328,870 | |||||||||||
Foreign | 89,244 | 125,931 | 94,643 | ||||||||||||||
Total | $ | 268,057 | $ | 462,619 | $ | 423,513 |
2019 | 2018 | 2017 | |||||||||
Federal | $ | 69,074 | $ | 66,359 | $ | 48,688 | |||||
State and local | 16,203 | 16,035 | 9,076 | ||||||||
Foreign | 25,102 | 23,967 | 27,637 | ||||||||
Total | $ | 110,379 | $ | 106,361 | $ | 85,401 | |||||
Current | $ | 88,167 | $ | 85,872 | $ | 99,893 | |||||
Deferred | 22,212 | 20,489 | (14,492 | ) | |||||||
Total | $ | 110,379 | $ | 106,361 | $ | 85,401 |
2020 | 2019 | 2018 | |||||||||||||||
Federal | $ | 36,908 | $ | 69,074 | $ | 66,359 | |||||||||||
State and local | 8,815 | 16,203 | 16,035 | ||||||||||||||
Foreign | 15,040 | 25,102 | 23,967 | ||||||||||||||
Total | $ | 60,763 | $ | 110,379 | $ | 106,361 | |||||||||||
Current | $ | 44,342 | $ | 88,167 | $ | 85,872 | |||||||||||
Deferred | 16,421 | 22,212 | 20,489 | ||||||||||||||
Total | $ | 60,763 | $ | 110,379 | $ | 106,361 |
2019 | 2018 | 2017 | ||||||
U.S. federal statutory tax rate | 21.0 | % | 21.0 | % | 35.0 | % | ||
State taxes, net of federal benefit | 3.2 | 3.0 | 1.5 | |||||
U.S. domestic manufacturers deduction | — | — | (2.1 | ) | ||||
Permanent differences | 0.6 | 0.2 | (0.7 | ) | ||||
Foreign income tax rate at rates other than U.S. statutory | 0.2 | 1.3 | (1.6 | ) | ||||
Tax Cuts and Jobs Act of 2017 deferred tax changes | — | 0.2 | (10.0 | ) | ||||
Tax Cuts and Jobs Act of 2017 transition tax | — | (0.1 | ) | 2.0 | ||||
Change in valuation allowances (1) | 0.1 | (0.5 | ) | (2.0 | ) | |||
Tax on unremitted earnings | 0.3 | — | 1.5 | |||||
Other | (1.5 | ) | — | (1.3 | ) | |||
Consolidated effective tax | 23.9 | % | 25.1 | % | 22.3 | % |
2020 | 2019 | 2018 | |||||||||||||||
U.S. federal statutory tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
State taxes, net of federal benefit | 3.2 | 3.2 | 3.0 | ||||||||||||||
Permanent differences | (0.4) | 0.6 | 0.2 | ||||||||||||||
Foreign income tax rate at rates other than U.S. statutory | 0.5 | 0.2 | 1.3 | ||||||||||||||
Deferred tax changes | (0.7) | 0 | 0.2 | ||||||||||||||
Tax Cuts and Jobs Act of 2017 transition tax | 0 | 0 | (0.1) | ||||||||||||||
Change in valuation allowances (1) | (0.1) | 0.1 | (0.5) | ||||||||||||||
Tax on unremitted earnings | 1.2 | 0.3 | 0 | ||||||||||||||
Other | (2.0) | (1.5) | 0 | ||||||||||||||
Consolidated effective tax | 22.7 | % | 23.9 | % | 25.1 | % |
2019 | 2018 | ||||||
Deferred tax assets: | |||||||
Compensation related | $ | 4,744 | $ | 3,776 | |||
Pension and post-retirement benefits | 48,716 | 41,502 | |||||
Inventory reserves | 15,166 | 14,441 | |||||
Accrued liabilities and reserves | 17,321 | 13,835 | |||||
Warranty reserves | 16,550 | 10,641 | |||||
Operating lease liability | 17,521 | — | |||||
Net operating loss carryforwards | 17,873 | 36,629 | |||||
Other | 22,579 | 10,531 | |||||
Gross deferred tax assets | 160,470 | 131,355 | |||||
Valuation allowance | (7,754 | ) | (26,023 | ) | |||
Deferred tax assets | $ | 152,716 | $ | 105,332 | |||
Deferred tax liabilities: | |||||||
Intangible assets | $ | (203,721 | ) | $ | (167,197 | ) | |
Depreciable assets | (18,020 | ) | (13,617 | ) | |||
Operating lease right-of-use assets | (17,542 | ) | — | ||||
Other | (10,001 | ) | (6,226 | ) | |||
Deferred tax liabilities | $ | (249,284 | ) | $ | (187,040 | ) | |
Net deferred tax assets (liabilities) | $ | (96,568 | ) | $ | (81,708 | ) | |
Long-term deferred asset | 36,932 | 32,188 | |||||
Long-term deferred liability | (133,500 | ) | (113,896 | ) | |||
Net deferred tax assets (liabilities) | $ | (96,568 | ) | $ | (81,708 | ) |
2020 | 2019 | ||||||||||
Deferred tax assets: | |||||||||||
Compensation related | $ | 12,328 | $ | 4,744 | |||||||
Pension and post-retirement benefits | 88,709 | 48,716 | |||||||||
Inventory reserves | 14,732 | 15,166 | |||||||||
Accrued liabilities and reserves | 22,049 | 17,321 | |||||||||
Warranty reserves | 17,890 | 16,550 | |||||||||
Operating lease liability | 16,180 | 17,521 | |||||||||
Interest rate swaps | 12,997 | 6,075 | |||||||||
Net operating loss carryforwards | 20,747 | 17,873 | |||||||||
Other | 17,187 | 16,504 | |||||||||
Gross deferred tax assets | 222,819 | 160,470 | |||||||||
Valuation allowance | (11,731) | (7,754) | |||||||||
Deferred tax assets | $ | 211,088 | $ | 152,716 | |||||||
Deferred tax liabilities: | |||||||||||
Intangible assets | $ | (226,598) | $ | (203,721) | |||||||
Depreciable assets | (26,916) | (18,020) | |||||||||
Operating lease right-of-use assets | (15,921) | (17,542) | |||||||||
Other | (12,825) | (10,001) | |||||||||
Deferred tax liabilities | $ | (282,260) | $ | (249,284) | |||||||
Net deferred tax assets (liabilities) | $ | (71,172) | $ | (96,568) | |||||||
Long-term deferred asset | 76,052 | 36,932 | |||||||||
Long-term deferred liability | (147,224) | (133,500) | |||||||||
Net deferred tax assets (liabilities) | $ | (71,172) | $ | (96,568) |
Balance at December 29, 2018 | $ | 31,912 | |||
Increases to current year tax positions | 4,216 | ||||
Increase to prior year tax positions | 254 | ||||
Lapse of statute of limitations | (4,823) | ||||
Balance at December 28, 2019 | $ | 31,559 | |||
Increases to current year tax positions | 3,657 | ||||
Increase to prior year tax positions | 183 | ||||
Settlements and other adjustments | (586) | ||||
Lapse of statute of limitations | (4,484) | ||||
Balance at January 2, 2021 | $ | 30,329 |
Balance at December 30, 2017 | $ | 29,930 | |
Increases to current year tax positions | 3,912 | ||
Increase to prior year tax positions | 2,860 | ||
Decrease to prior year tax positions | (569 | ) | |
Lapse of statute of limitations | (4,221 | ) | |
Balance at December 29, 2018 | $ | 31,912 | |
Increases to current year tax positions | 4,216 | ||
Increase to prior year tax positions | 254 | ||
Lapse of statute of limitations | (4,823 | ) | |
Balance at December 28, 2019 | $ | 31,559 |
Twelve Months Ended | |||||||||||||||||
Location | Jan 2, 2021 | Dec 28, 2019 | |||||||||||||||
Fair value | Other assets | $ | 0 | $ | 1,830 | ||||||||||||
Fair value | Accrued expenses | $ | 14,075 | $ | 0 | ||||||||||||
Fair value | Other non-current liabilities | $ | 37,018 | $ | 25,120 | ||||||||||||
Amount of gain/(loss) recognized in other comprehensive income | Other comprehensive income | $ | (43,317) | $ | (31,396) | ||||||||||||
Gain/(loss) reclassified from accumulated other comprehensive income (effective portion) | Interest expense | $ | (15,514) | $ | 1,256 | ||||||||||||
Twelve Months Ended | |||||||||
Location | Dec 28, 2019 | Dec 29, 2018 | |||||||
Fair value | Other assets | $ | 1,830 | $ | 13,487 | ||||
Fair value | Other non-current liabilities | $ | 25,120 | $ | 4,125 | ||||
Amount of gain/(loss) recognized in other comprehensive income | Other comprehensive income | $ | (31,396 | ) | $ | (561 | ) | ||
Gain/(loss) reclassified from accumulated other comprehensive income (effective portion) | Interest expense | $ | 1,256 | $ | 415 | ||||
Gain/(loss) recognized in income (ineffective portion) | Other expense | $ | — | $ | 72 |
Leases (in thousands) | January 2, 2021 | December 28, 2019 | |||||||||
Operating lease right-of-use assets | $ | 97,193 | $ | 96,655 | |||||||
Operating Lease Liability: | |||||||||||
Current | 22,493 | 21,827 | |||||||||
Non-current | 76,529 | 75,018 | |||||||||
Total Liability | $ | 99,022 | $ | 96,845 |
Leases (in thousands) | December 28, 2019 | ||
Operating lease right-of-use assets | $ | 96,655 | |
Operating Lease Liability: | |||
Current | 21,827 | ||
Non-current | 75,018 | ||
Total Liability | $ | 96,845 |
Total Lease Commitments (in thousands) | Operating Leases | ||||
2021 | $ | 24,675 | |||
2022 | 21,230 | ||||
2023 | 16,650 | ||||
2024 | 13,214 | ||||
2025 | 9,315 | ||||
2026 and thereafter | 23,446 | ||||
Total future lease commitments | 108,530 | ||||
Less imputed interest | 9,508 | ||||
Total | $ | 99,022 |
Total Lease Commitments (in thousands) | Operating Leases | ||
2020 | $ | 24,563 | |
2021 | 21,424 | ||
2022 | 17,875 | ||
2023 | 12,742 | ||
2024 | 10,134 | ||
2025 and thereafter | 25,514 | ||
Total future lease commitments | 112,252 | ||
Less imputed interest | 15,407 | ||
Total | $ | 96,845 |
Other Lease Information (in thousands, except lease term and discount rate) | Twelve Months Ended December 28, 2019 | ||
Supplemental cash flow information | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows for operating leases | $ | 24,794 | |
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | 25,306 | ||
December 28, 2019 | |||
Weighted-average remaining lease terms leases - Operating | 6.3 years | ||
Weighted-average discount rate - Operating | 3.4 | % |
Other Lease Information (in thousands, except lease term and discount rate) | Twelve Months Ended January 2, 2021 | Twelve Months Ended December 28, 2019 | |||||||||
Supplemental cash flow information | |||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows for operating leases | $ | 26,024 | $ | 24,794 | |||||||
Right-of-use assets obtained in exchange for lease obligations: | |||||||||||
Operating leases | 25,433 | 25,306 | |||||||||
January 2, 2021 | December 28, 2019 | ||||||||||
Weighted-average remaining lease terms leases - Operating | 6.0 years | 6.3 years | |||||||||
Weighted-average discount rate - Operating | 3.0 | % | 3.4 | % |
Commercial Foodservice | Food Processing | Residential Kitchen | Corporate and Other(2) | Total | |||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||
Net sales | $ | 1,510,279 | $ | 437,272 | $ | 565,706 | $ | 0 | $ | 2,513,257 | |||||||||||||||||||
Operating income (3,4) | 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 | $ | 0 | $ | 2,959,446 | |||||||||||||||||||
Operating income (3,4) | 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 | ||||||||||||||||||||||||
2018 | |||||||||||||||||||||||||||||
Net sales | $ | 1,729,814 | $ | 389,594 | $ | 603,523 | $ | 0 | $ | 2,722,931 | |||||||||||||||||||
Operating income (3) | 393,380 | 62,435 | 53,959 | (63,808) | 445,966 | ||||||||||||||||||||||||
Depreciation expense | 17,374 | 5,207 | 12,838 | 363 | 35,782 | ||||||||||||||||||||||||
Amortization expense (5) | 35,224 | 7,527 | 17,226 | 1,479 | 61,456 | ||||||||||||||||||||||||
Net capital expenditures | 17,444 | 7,373 | 11,721 | (498) | 36,040 | ||||||||||||||||||||||||
Total assets | 2,906,373 | 513,189 | 1,089,103 | 41,116 | 4,549,781 | ||||||||||||||||||||||||
Long-lived assets (6) | 181,636 | 33,127 | 146,897 | 22,328 | 383,988 |
Commercial Foodservice | Food Processing | Residential Kitchen | Corporate and Other(2) | Total | |||||||||||||||
2019 | |||||||||||||||||||
Net sales | $ | 1,984,345 | $ | 400,951 | $ | 574,150 | $ | — | $ | 2,959,446 | |||||||||
Operating income (3,4) | 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 | ||||||||||||||
2018 | |||||||||||||||||||
Net sales | $ | 1,729,814 | $ | 389,594 | $ | 603,523 | $ | — | $ | 2,722,931 | |||||||||
Operating income (3) | 393,380 | 62,435 | 53,959 | (63,808 | ) | 445,966 | |||||||||||||
Depreciation expense | 17,374 | 5,207 | 12,838 | 363 | 35,782 | ||||||||||||||
Amortization expense (5) | 35,224 | 7,527 | 17,226 | 1,479 | 61,456 | ||||||||||||||
Net capital expenditures | 17,444 | 7,373 | 11,721 | (498 | ) | 36,040 | |||||||||||||
Total assets | 2,906,373 | 513,189 | 1,089,103 | 41,116 | 4,549,781 | ||||||||||||||
Long-lived assets (6) | 181,636 | 33,127 | 146,897 | 22,328 | 383,988 | ||||||||||||||
2017 | |||||||||||||||||||
Net sales | $ | 1,382,108 | $ | 352,717 | $ | 600,717 | $ | — | $ | 2,335,542 | |||||||||
Operating income (3,7,8) | 357,085 | 88,121 | (377 | ) | (66,216 | ) | 378,613 | ||||||||||||
Depreciation expense | 12,643 | 3,677 | 12,984 | 406 | 29,710 | ||||||||||||||
Amortization expense (5) | 17,338 | 3,680 | 17,567 | 1,479 | 40,064 | ||||||||||||||
Net capital expenditures | 41,457 | 5,519 | 7,637 | (120 | ) | 54,493 | |||||||||||||
Total assets | 1,693,820 | 450,932 | 1,140,668 | 54,293 | 3,339,713 | ||||||||||||||
Long-lived assets (6) | 148,565 | 25,346 | 167,486 | 21,191 | 362,588 |
2019 | 2018 | 2017 | |||||||||
United States and Canada | $ | 305,207 | $ | 262,482 | $ | 221,479 | |||||
Asia | 22,312 | 12,136 | 14,033 | ||||||||
Europe and Middle East | 165,781 | 108,001 | 126,264 | ||||||||
Latin America | 6,519 | 1,369 | 812 | ||||||||
Total International | 194,612 | 121,506 | 141,109 | ||||||||
$ | 499,819 | $ | 383,988 | $ | 362,588 |
2020 | 2019 | 2018 | |||||||||||||||
United States and Canada | $ | 331,688 | $ | 305,207 | $ | 262,482 | |||||||||||
Asia | 28,018 | 22,312 | 12,136 | ||||||||||||||
Europe and Middle East | 181,242 | 165,781 | 108,001 | ||||||||||||||
Latin America | 6,391 | 6,519 | 1,369 | ||||||||||||||
Total International | 215,651 | 194,612 | 121,506 | ||||||||||||||
$ | 547,339 | $ | 499,819 | $ | 383,988 |
Fiscal 2020 | Fiscal 2019 | ||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||
Net Periodic Pension Cost (Benefit): | |||||||||||||||||||||||
Service cost | $ | 0 | $ | 2,581 | $ | 0 | $ | 2,457 | |||||||||||||||
Interest cost | 1,043 | 25,966 | 1,253 | 33,490 | |||||||||||||||||||
Expected return on assets | (999) | (72,795) | (868) | (67,542) | |||||||||||||||||||
Amortization of net loss | 763 | 3,449 | 664 | 721 | |||||||||||||||||||
Amortization of prior service cost | 0 | 2,577 | 0 | 2,560 | |||||||||||||||||||
Curtailment loss | 0 | 14,682 | 0 | 865 | |||||||||||||||||||
$ | 807 | $ | (23,540) | $ | 1,049 | $ | (27,449) | ||||||||||||||||
Change in Benefit Obligation: | |||||||||||||||||||||||
Benefit obligation – beginning of year | $ | 35,395 | $ | 1,501,616 | $ | 31,559 | $ | 1,377,575 | |||||||||||||||
Service cost | 0 | 2,581 | 0 | 2,457 | |||||||||||||||||||
Prior service cost | 0 | 2,309 | 0 | 0 | |||||||||||||||||||
Interest on benefit obligations | 1,043 | 25,966 | 1,253 | 33,490 | |||||||||||||||||||
Member contributions | 0 | 312 | 0 | 313 | |||||||||||||||||||
Actuarial loss | 4,146 | 186,945 | 4,173 | 102,377 | |||||||||||||||||||
Net benefit payments | (1,687) | (62,878) | (1,590) | (62,355) | |||||||||||||||||||
Curtailment loss | 0 | 14,682 | 0 | 865 | |||||||||||||||||||
Exchange effect | 0 | 73,041 | 0 | 46,894 | |||||||||||||||||||
Benefit obligation – end of year | $ | 38,897 | $ | 1,744,574 | $ | 35,395 | $ | 1,501,616 | |||||||||||||||
Change in Plan Assets: | |||||||||||||||||||||||
Plan assets at fair value – beginning of year | $ | 16,744 | $ | 1,231,181 | $ | 14,634 | $ | 1,141,381 | |||||||||||||||
Company contributions | 1,587 | 5,745 | 1,191 | 5,934 | |||||||||||||||||||
Investment gain | 811 | 69,824 | 2,509 | 107,368 | |||||||||||||||||||
Member contributions | 0 | 312 | 0 | 313 | |||||||||||||||||||
Benefit payments and plan expenses | (1,687) | (62,878) | (1,590) | (62,355) | |||||||||||||||||||
Exchange effect | 0 | 52,332 | 0 | 38,540 | |||||||||||||||||||
Plan assets at fair value – end of year | $ | 17,455 | $ | 1,296,516 | $ | 16,744 | $ | 1,231,181 | |||||||||||||||
Funded Status: | |||||||||||||||||||||||
Unfunded benefit obligation | $ | (21,442) | $ | (448,058) | $ | (18,651) | $ | (270,435) | |||||||||||||||
Amounts recognized in balance sheet at year end: | |||||||||||||||||||||||
Accrued pension benefits | $ | (21,442) | $ | (448,058) | $ | (18,651) | $ | (270,435) |
Fiscal 2019 | Fiscal 2018 | ||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | ||||||||||||
Net Periodic Pension Cost (Benefit): | |||||||||||||||
Service cost | $ | — | $ | 2,457 | $ | 365 | $ | 3,754 | |||||||
Interest cost | 1,253 | 33,490 | 1,082 | 32,173 | |||||||||||
Expected return on assets | (868 | ) | (67,542 | ) | (967 | ) | (75,017 | ) | |||||||
Amortization of net loss (gain) | 664 | 721 | (129 | ) | 4,056 | ||||||||||
Amortization of prior service cost | — | 2,560 | — | 437 | |||||||||||
Curtailment loss | — | 865 | — | 906 | |||||||||||
Pension settlement gain | — | — | — | (655 | ) | ||||||||||
$ | 1,049 | $ | (27,449 | ) | $ | 351 | $ | (34,346 | ) | ||||||
Change in Benefit Obligation: | |||||||||||||||
Benefit obligation – beginning of year | $ | 31,559 | $ | 1,377,575 | $ | 31,908 | $ | 1,615,244 | |||||||
Service cost | — | 2,457 | 365 | 3,754 | |||||||||||
Prior service cost | — | — | — | 53,586 | |||||||||||
Interest on benefit obligations | 1,253 | 33,490 | 1,082 | 32,173 | |||||||||||
Member contributions | — | 313 | — | 290 | |||||||||||
Actuarial loss (gain) | 4,173 | 102,377 | (850 | ) | (163,746 | ) | |||||||||
Pension settlement gain | — | — | — | (873 | ) | ||||||||||
Net benefit payments | (1,590 | ) | (62,355 | ) | (946 | ) | (72,095 | ) | |||||||
Curtailment loss | — | 865 | — | 906 | |||||||||||
Exchange effect | — | 46,894 | — | (91,664 | ) | ||||||||||
Benefit obligation – end of year | $ | 35,395 | $ | 1,501,616 | $ | 31,559 | $ | 1,377,575 | |||||||
Change in Plan Assets: | |||||||||||||||
Plan assets at fair value – beginning of year | $ | 14,634 | $ | 1,141,381 | $ | 16,102 | $ | 1,296,539 | |||||||
Company contributions | 1,191 | 5,934 | 877 | 4,889 | |||||||||||
Investment gain (loss) | 2,509 | 107,368 | (1,399 | ) | (12,600 | ) | |||||||||
Member contributions | — | 313 | — | 290 | |||||||||||
Pension settlement loss | — | — | — | (161 | ) | ||||||||||
Benefit payments and plan expenses | (1,590 | ) | (62,355 | ) | (946 | ) | (72,095 | ) | |||||||
Exchange effect | — | 38,540 | — | (75,481 | ) | ||||||||||
Plan assets at fair value – end of year | $ | 16,744 | $ | 1,231,181 | $ | 14,634 | $ | 1,141,381 | |||||||
Funded Status: | |||||||||||||||
Unfunded benefit obligation | $ | (18,651 | ) | $ | (270,435 | ) | $ | (16,925 | ) | $ | (236,194 | ) | |||
Amounts recognized in balance sheet at year end: | |||||||||||||||
Accrued pension benefits | $ | (18,651 | ) | $ | (270,435 | ) | $ | (16,925 | ) | $ | (236,194 | ) |
Fiscal 2019 | Fiscal 2018 | ||||||||||||||
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 | $ | 6,853 | $ | 270,116 | $ | 4,985 | $ | 202,672 | |||||||
Pre-tax components recognized in other comprehensive income for the period: | |||||||||||||||
Current year actuarial (gain) loss | $ | 2,532 | $ | 69,228 | $ | 1,516 | $ | (88,992 | ) | ||||||
Actuarial gain (loss) recognized | (664 | ) | (798 | ) | 129 | (4,741 | ) | ||||||||
Prior service cost | — | — | — | 53,586 | |||||||||||
Prior service cost recognized | — | (986 | ) | — | (437 | ) | |||||||||
Pension settlement gain | — | — | — | (713 | ) | ||||||||||
Pension settlement gain recognized | — | — | — | 654 | |||||||||||
Total amount recognized | $ | 1,868 | $ | 67,444 | $ | 1,645 | $ | (40,643 | ) | ||||||
Accumulated Benefit Obligation | $ | 35,395 | $ | 1,501,616 | $ | 31,559 | $ | 1,377,532 | |||||||
Salary growth rate | n/a | 0.8 | % | n/a | 0.8 | % | |||||||||
Assumed discount rate | 3.0 | % | 2.0 | % | 4.1 | % | 2.7 | % | |||||||
Expected return on assets | 6.0 | % | 6.2 | % | 6.0 | % | 6.2 | % |
Fiscal 2020 | Fiscal 2019 | ||||||||||||||||||||||
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 | $ | 10,424 | $ | 479,554 | $ | 6,853 | $ | 270,116 | |||||||||||||||
Pre-tax components recognized in other comprehensive income for the period: | |||||||||||||||||||||||
Current year actuarial loss | $ | 4,334 | $ | 211,494 | $ | 2,532 | $ | 69,228 | |||||||||||||||
Actuarial loss recognized | (763) | (3,841) | (664) | (798) | |||||||||||||||||||
Prior service cost | 0 | 3,335 | 0 | 0 | |||||||||||||||||||
Prior service cost recognized | 0 | (1,550) | 0 | (986) | |||||||||||||||||||
Total amount recognized | $ | 3,571 | $ | 209,438 | $ | 1,868 | $ | 67,444 | |||||||||||||||
Accumulated Benefit Obligation | $ | 38,897 | $ | 1,744,536 | $ | 35,395 | $ | 1,501,589 | |||||||||||||||
Salary growth rate | n/a | 0.8 | % | n/a | 0.8 | % | |||||||||||||||||
Assumed discount rate | 2.2 | % | 1.2 | % | 3.0 | % | 2.0 | % | |||||||||||||||
Expected return on assets | 6.0 | % | 6.2 | % | 6.0 | % | 6.2 | % |
Target Allocation | Percentage of Plan Assets | Target Allocation | Percentage of Plan Assets | ||||||||||||||||||||||
2019 | 2018 | 2020 | 2019 | ||||||||||||||||||||||
Equity | 48 | % | 51 | % | 42 | % | Equity | 48 | % | 48 | % | 51 | % | ||||||||||||
Fixed income | 40 | 37 | 49 | Fixed income | 40 | 39 | 37 | ||||||||||||||||||
Money market | 4 | 2 | 1 | Money market | 4 | 3 | 2 | ||||||||||||||||||
Other (real estate investment trusts & commodities contracts) | 8 | 10 | 8 | Other (real estate investment trusts & commodities contracts) | 8 | 10 | 10 | ||||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
Target Allocation | Percentage of Plan Assets | ||||||||||||||||
2020 | 2019 | ||||||||||||||||
Equity | 17 | % | 12 | % | 22 | % | |||||||||||
Fixed income | 38 | 57 | 39 | ||||||||||||||
Alternatives/Other | 32 | 15 | 22 | ||||||||||||||
Real Estate | 13 | 13 | 13 | ||||||||||||||
Cash and cash equivalents | 0 | 3 | 4 | ||||||||||||||
100 | % | 100 | % | 100 | % |
Target Allocation | Percentage of Plan Assets | |||||||
2019 | 2018 | |||||||
Equity | 17 | % | 22 | % | 23 | % | ||
Fixed income | 38 | 39 | 52 | |||||
Alternatives/Other | 32 | 22 | 9 | |||||
Real Estate | 13 | 13 | 14 | |||||
Cash and cash equivalents | — | 4 | 2 | |||||
100 | % | 100 | % | 100 | % |
Fiscal 2020 | Fiscal 2019 | |||||||||||||||||||||||||||||||||||||
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) | $ | 533 | $ | 0 | $ | 533 | $ | 347 | $ | 0 | $ | 347 | ||||||||||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||||||||||||||||
Large Cap | 3,443 | 3,443 | 0 | 3,957 | 3,957 | 0 | ||||||||||||||||||||||||||||||||
Mid Cap | 407 | 407 | 0 | 417 | 417 | 0 | ||||||||||||||||||||||||||||||||
Small Cap | 489 | 489 | 0 | 418 | 418 | 0 | ||||||||||||||||||||||||||||||||
International | 4,198 | 4,198 | 0 | 3,657 | 3,657 | 0 | ||||||||||||||||||||||||||||||||
Fixed Income: | ||||||||||||||||||||||||||||||||||||||
Government/Corporate | 5,517 | 5,517 | 0 | 4,992 | 4,992 | 0 | ||||||||||||||||||||||||||||||||
High Yield | 1,211 | 1,211 | 0 | 1,260 | 1,260 | 0 | ||||||||||||||||||||||||||||||||
Alternative: | ||||||||||||||||||||||||||||||||||||||
Global Real Estate Investment Trust | 1,063 | 1,063 | 0 | 1,358 | 1,358 | 0 | ||||||||||||||||||||||||||||||||
Commodities Contracts | 594 | 594 | 0 | 338 | 338 | 0 | ||||||||||||||||||||||||||||||||
Total | $ | 17,455 | $ | 16,922 | $ | 533 | $ | 16,744 | $ | 16,397 | $ | 347 |
Fiscal 2019 | Fiscal 2018 | |||||||||||||||||||||||
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) | $ | 347 | $ | — | $ | 347 | $ | 175 | $ | — | $ | 175 | ||||||||||||
Equity Securities: | ||||||||||||||||||||||||
Large Cap | 3,957 | 3,957 | — | 2,615 | 2,615 | — | ||||||||||||||||||
Mid Cap | 417 | 417 | — | 329 | 329 | — | ||||||||||||||||||
Small Cap | 418 | 418 | — | 326 | 326 | — | ||||||||||||||||||
International | 3,657 | 3,657 | — | 2,937 | 2,937 | — | ||||||||||||||||||
Fixed Income: | ||||||||||||||||||||||||
Government/Corporate | 4,992 | 4,992 | — | 5,994 | 5,994 | — | ||||||||||||||||||
High Yield | 1,260 | 1,260 | — | 1,102 | 1,102 | — | ||||||||||||||||||
Alternative: | ||||||||||||||||||||||||
Global Real Estate Investment Trust | 1,358 | 1,358 | — | 591 | 591 | — | ||||||||||||||||||
Commodities Contracts | 338 | 338 | — | 565 | 565 | — | ||||||||||||||||||
Total | $ | 16,744 | $ | 16,397 | $ | 347 | $ | 14,634 | $ | 14,459 | $ | 175 |
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 | $ | 0 | $ | 26,052 | ||||||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||||||||||
UK | 8,615 | 1,747 | 0 | 0 | 6,868 | |||||||||||||||||||||||||||
International: | ||||||||||||||||||||||||||||||||
Developed | 110,718 | 3,076 | 0 | 0 | 107,642 | |||||||||||||||||||||||||||
Emerging | 34,417 | 418 | 0 | 0 | 33,999 | |||||||||||||||||||||||||||
Unquoted/Private Equity | 1,792 | 1 | 0 | 0 | 1,791 | |||||||||||||||||||||||||||
Fixed Income: | ||||||||||||||||||||||||||||||||
Government/Corporate: | ||||||||||||||||||||||||||||||||
UK | 264,703 | 16,330 | 0 | 0 | 248,373 | |||||||||||||||||||||||||||
International | 141,030 | 0 | 0 | 0 | 141,030 | |||||||||||||||||||||||||||
Index Linked | 330,360 | 2,945 | 0 | 0 | 327,415 | |||||||||||||||||||||||||||
Other | 8,296 | 0 | 0 | 0 | 8,296 | |||||||||||||||||||||||||||
Convertible Bonds | 214 | 0 | 0 | 0 | 214 | |||||||||||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||||||||||
Direct | 156,588 | 0 | 156,588 | 0 | 0 | |||||||||||||||||||||||||||
Indirect | 9,283 | 52 | 4,485 | 0 | 4,746 | |||||||||||||||||||||||||||
Hedge Fund Strategy: | ||||||||||||||||||||||||||||||||
Equity Long/Short | 44,097 | 0 | 0 | 0 | 44,097 | |||||||||||||||||||||||||||
Arbitrage & Event | 16,594 | 0 | 0 | 0 | 16,594 | |||||||||||||||||||||||||||
Directional Trading & Fixed Income | 9,721 | 0 | 0 | 0 | 9,721 | |||||||||||||||||||||||||||
Cash & Other | 196,952 | 0 | 0 | 0 | 196,952 | |||||||||||||||||||||||||||
Direct Sourcing | 2,397 | 0 | 0 | 0 | 2,397 | |||||||||||||||||||||||||||
Leveraged Loans | 28,720 | 0 | 0 | 0 | 28,720 | |||||||||||||||||||||||||||
Alternative/Other | (104,518) | 5 | 0 | 0 | (104,523) | |||||||||||||||||||||||||||
Total | $ | 1,296,516 | $ | 34,227 | $ | 161,905 | $ | 0 | $ | 1,100,384 |
Fiscal 2019 | ||||||||||||||||||||
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 | $ | 44,748 | $ | 18,142 | $ | 2,874 | $ | — | $ | 23,732 | ||||||||||
Equity Securities: | ||||||||||||||||||||
UK | 101,922 | 88,830 | — | — | 13,092 | |||||||||||||||
International: | ||||||||||||||||||||
Developed | 165,709 | 13,170 | — | — | 152,539 | |||||||||||||||
Emerging | 11,653 | 650 | — | — | 11,003 | |||||||||||||||
Unquoted/Private Equity | 123 | — | — | — | 123 | |||||||||||||||
Fixed Income: | ||||||||||||||||||||
Government/Corporate: | ||||||||||||||||||||
UK | 189,513 | 14,245 | 2,867 | — | 172,401 | |||||||||||||||
International | 86,208 | — | — | — | 86,208 | |||||||||||||||
Index Linked | 189,463 | 2,085 | — | — | 187,378 | |||||||||||||||
Other | 6,367 | — | — | — | 6,367 | |||||||||||||||
Convertible Bonds | 177 | — | — | — | 177 | |||||||||||||||
Real Estate: | ||||||||||||||||||||
Direct | 154,494 | — | 154,494 | — | — | |||||||||||||||
Indirect | 8,155 | 137 | 7,603 | — | 415 | |||||||||||||||
Hedge Fund Strategy: | ||||||||||||||||||||
Equity Long/Short | 21,683 | — | — | — | 21,683 | |||||||||||||||
Arbitrage & Event | 29,284 | — | — | — | 29,284 | |||||||||||||||
Directional Trading & Fixed Income | 9,361 | — | — | — | 9,361 | |||||||||||||||
Cash & Other | 163,058 | — | — | — | 163,058 | |||||||||||||||
Direct Sourcing | 2,269 | — | — | — | 2,269 | |||||||||||||||
Leveraged Loans | 21,635 | — | — | — | 21,635 | |||||||||||||||
Alternative/Other | 25,359 | 1 | — | — | 25,358 | |||||||||||||||
Total | $ | 1,231,181 | $ | 137,260 | $ | 167,838 | $ | — | $ | 926,083 |
Fiscal 2018 | ||||||||||||||||||||
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 | $ | 28,434 | $ | 4,325 | $ | 2,656 | $ | — | $ | 21,453 | ||||||||||
Equity Securities: | ||||||||||||||||||||
UK | 155,687 | 78,938 | — | — | 76,749 | |||||||||||||||
International: | ||||||||||||||||||||
Developed | 99,872 | 14,497 | — | — | 85,375 | |||||||||||||||
Emerging | 7,488 | 591 | — | — | 6,897 | |||||||||||||||
Unquoted/Private Equity | 1,752 | — | — | — | 1,752 | |||||||||||||||
Fixed Income: | ||||||||||||||||||||
Government/Corporate: | ||||||||||||||||||||
UK | 468,608 | 11,860 | 6,779 | — | 449,969 | |||||||||||||||
International | 75,980 | — | — | — | 75,980 | |||||||||||||||
Index Linked | 47,873 | 3,614 | — | — | 44,259 | |||||||||||||||
Other | 650 | — | — | — | 650 | |||||||||||||||
Convertible Bonds | 188 | — | — | — | 188 | |||||||||||||||
Real Estate: | ||||||||||||||||||||
Direct | 148,551 | — | 148,551 | — | — | |||||||||||||||
Indirect | 10,812 | 188 | 9,298 | — | 1,326 | |||||||||||||||
Hedge Fund Strategy: | ||||||||||||||||||||
Equity Long/Short | 73,783 | — | — | — | 73,783 | |||||||||||||||
Arbitrage & Event | 73,261 | — | — | — | 73,261 | |||||||||||||||
Directional Trading & Fixed Income | 44,091 | — | — | — | 44,091 | |||||||||||||||
Cash & Other | 21,719 | — | — | — | 21,719 | |||||||||||||||
Direct Sourcing | 2,289 | — | — | — | 2,289 | |||||||||||||||
Leveraged Loans | 18,295 | — | — | — | 18,295 | |||||||||||||||
Alternative/Other | (137,952 | ) | 5 | — | 86 | (138,043 | ) | |||||||||||||
Total | $ | 1,141,381 | $ | 114,018 | $ | 167,284 | $ | 86 | $ | 859,993 |
Fiscal 2019 | ||||||||||||||||||||||||||||||||
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 | $ | 44,748 | $ | 18,142 | $ | 2,874 | $ | 0 | $ | 23,732 | ||||||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||||||||||
UK | 101,922 | 88,830 | 0 | 0 | 13,092 | |||||||||||||||||||||||||||
International: | ||||||||||||||||||||||||||||||||
Developed | 165,709 | 13,170 | 0 | 0 | 152,539 | |||||||||||||||||||||||||||
Emerging | 11,653 | 650 | 0 | 0 | 11,003 | |||||||||||||||||||||||||||
Unquoted/Private Equity | 123 | 0 | 0 | 0 | 123 | |||||||||||||||||||||||||||
Fixed Income: | ||||||||||||||||||||||||||||||||
Government/Corporate: | ||||||||||||||||||||||||||||||||
UK | 189,513 | 14,245 | 2,867 | 0 | 172,401 | |||||||||||||||||||||||||||
International | 86,208 | 0 | 0 | 0 | 86,208 | |||||||||||||||||||||||||||
Index Linked | 189,463 | 2,085 | 0 | 0 | 187,378 | |||||||||||||||||||||||||||
Other | 6,367 | 0 | 0 | 0 | 6,367 | |||||||||||||||||||||||||||
Convertible Bonds | 177 | 0 | 0 | 0 | 177 | |||||||||||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||||||||||
Direct | 154,494 | 0 | 154,494 | 0 | 0 | |||||||||||||||||||||||||||
Indirect | 8,155 | 137 | 7,603 | 0 | 415 | |||||||||||||||||||||||||||
Hedge Fund Strategy: | ||||||||||||||||||||||||||||||||
Equity Long/Short | 21,683 | 0 | 0 | 0 | 21,683 | |||||||||||||||||||||||||||
Arbitrage & Event | 29,284 | 0 | 0 | 0 | 29,284 | |||||||||||||||||||||||||||
Directional Trading & Fixed Income | 9,361 | 0 | 0 | 0 | 9,361 | |||||||||||||||||||||||||||
Cash & Other | 163,058 | 0 | 0 | 0 | 163,058 | |||||||||||||||||||||||||||
Direct Sourcing | 2,269 | 0 | 0 | 0 | 2,269 | |||||||||||||||||||||||||||
Leveraged Loans | 21,635 | 0 | 0 | 0 | 21,635 | |||||||||||||||||||||||||||
Alternative/Other | 25,359 | 1 | 0 | 0 | 25,358 | |||||||||||||||||||||||||||
Total | $ | 1,231,181 | $ | 137,260 | $ | 167,838 | $ | 0 | $ | 926,083 |
U.S. Plans | Non-U.S. Plans | ||||||
2020 | $ | 1,738 | $ | 63,856 | |||
2021 | 1,763 | 65,110 | |||||
2022 | 1,776 | 66,177 | |||||
2023 | 1,784 | 66,332 | |||||
2024 through 2029 | 11,267 | 405,088 |
U.S. Plans | Non-U.S. Plans | ||||||||||
2021 | $ | 1,794 | $ | 64,476 | |||||||
2022 | 1,789 | 64,905 | |||||||||
2023 | 1,792 | 65,805 | |||||||||
2024 | 1,807 | 65,551 | |||||||||
2025 through 2030 | 11,446 | 402,537 |
1st | 2nd | 3rd | 4th | Total Year | ||||||||||||||||||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | Total Year | (dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | Net sales | $ | 677,459 | $ | 471,977 | $ | 634,525 | $ | 729,296 | $ | 2,513,257 | |||||||||||||||||||||||||||||||||||||||||
Gross profit | Gross profit | 250,190 | 153,126 | 222,749 | 255,983 | 882,048 | ||||||||||||||||||||||||||||||||||||||||||||||
Income from operations | Income from operations | 105,414 | 39,118 | 86,672 | 93,227 | 324,431 | ||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | Net earnings | $ | 73,779 | $ | 21,162 | $ | 60,516 | $ | 51,837 | $ | 207,294 | |||||||||||||||||||||||||||||||||||||||||
Basic earnings per share (1) | Basic earnings per share (1) | $ | 1.33 | $ | 0.39 | $ | 1.10 | $ | 0.94 | $ | 3.76 | |||||||||||||||||||||||||||||||||||||||||
Diluted earnings per share (1) | Diluted earnings per share (1) | $ | 1.33 | $ | 0.39 | $ | 1.10 | $ | 0.94 | $ | 3.76 | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 686,802 | $ | 761,004 | $ | 724,014 | $ | 787,626 | $ | 2,959,446 | Net sales | $ | 686,802 | $ | 761,004 | $ | 724,014 | $ | 787,626 | $ | 2,959,446 | |||||||||||||||||||||||||||||||
Gross profit | 257,312 | 286,479 | 270,028 | 289,678 | 1,103,497 | Gross profit | 257,312 | 286,479 | 270,028 | 289,678 | 1,103,497 | |||||||||||||||||||||||||||||||||||||||||
Income from operations | 101,061 | 139,607 | 121,345 | 152,030 | 514,043 | Income from operations | 101,061 | 139,607 | 121,345 | 152,030 | 514,043 | |||||||||||||||||||||||||||||||||||||||||
Net earnings | $ | 69,013 | $ | 92,210 | $ | 82,020 | $ | 108,997 | $ | 352,240 | Net earnings | $ | 69,013 | $ | 92,210 | $ | 82,020 | $ | 108,997 | $ | 352,240 | |||||||||||||||||||||||||||||||
Basic earnings per share (1) | $ | 1.24 | $ | 1.66 | $ | 1.47 | $ | 1.96 | $ | 6.33 | Basic earnings per share (1) | $ | 1.24 | $ | 1.66 | $ | 1.47 | $ | 1.96 | $ | 6.33 | |||||||||||||||||||||||||||||||
Diluted earnings per share (1) | $ | 1.24 | $ | 1.66 | $ | 1.47 | $ | 1.96 | $ | 6.33 | Diluted earnings per share (1) | $ | 1.24 | $ | 1.66 | $ | 1.47 | $ | 1.96 | $ | 6.33 | |||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 584,800 | $ | 668,128 | $ | 713,331 | $ | 756,672 | $ | 2,722,931 | ||||||||||||||||||||||||||||||||||||||||||
Gross profit | 211,633 | 250,759 | 261,160 | 280,588 | 1,004,140 | |||||||||||||||||||||||||||||||||||||||||||||||
Income from operations | 86,992 | 111,310 | 107,677 | 139,987 | 445,966 | |||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | $ | 65,420 | $ | 83,988 | $ | 72,905 | $ | 94,839 | $ | 317,152 | ||||||||||||||||||||||||||||||||||||||||||
Basic earnings per share (1) | $ | 1.18 | $ | 1.51 | $ | 1.31 | $ | 1.71 | $ | 5.71 | ||||||||||||||||||||||||||||||||||||||||||
Diluted earnings per share (1) | $ | 1.18 | $ | 1.51 | $ | 1.31 | $ | 1.70 | $ | 5.70 |
Severance/Benefits | Facilities/Operations | Other | Total | |||||||||||||||||||||||
Balance as of December 30, 2017 | $ | 3,698 | $ | 1,467 | $ | 157 | $ | 5,322 | ||||||||||||||||||
Expenses | 6,367 | 3,771 | 5,001 | 15,139 | ||||||||||||||||||||||
Exchange Effect | (49) | (11) | 23 | (37) | ||||||||||||||||||||||
Payments | (9,150) | (5,171) | (4,394) | (18,715) | ||||||||||||||||||||||
Balance as of December 29, 2018 | $ | 866 | $ | 56 | $ | 787 | $ | 1,709 | ||||||||||||||||||
Expenses | 3,766 | 684 | (476) | 3,974 | ||||||||||||||||||||||
Exchange Effect | 24 | (7) | (55) | (38) | ||||||||||||||||||||||
Payments/Utilization | (3,990) | (632) | (256) | (4,878) | ||||||||||||||||||||||
Balance as of December 28, 2019 | $ | 666 | $ | 101 | $ | 0 | $ | 767 | ||||||||||||||||||
Expenses | 899 | 907 | 0 | 1,806 | ||||||||||||||||||||||
Exchange Effect | 0 | 26 | 0 | 26 | ||||||||||||||||||||||
Payments/Utilization | (1,368) | (922) | 0 | (2,290) | ||||||||||||||||||||||
Balance as of January 2, 2021 | $ | 197 | $ | 112 | $ | 0 | $ | 309 |
Severance/Benefits | Facilities/Operations | Other | Total | |||||||||||||
Balance as of December 31, 2016 | $ | 5,145 | $ | 2,032 | $ | 69 | $ | 7,246 | ||||||||
Expenses | 8,662 | 3,872 | 601 | 13,135 | ||||||||||||
Exchange Effect | 533 | 358 | 11 | 902 | ||||||||||||
Payments | (10,642 | ) | (4,795 | ) | (524 | ) | (15,961 | ) | ||||||||
Balance as of December 30, 2017 | $ | 3,698 | $ | 1,467 | $ | 157 | $ | 5,322 | ||||||||
Expenses | 6,367 | 3,771 | 5,001 | 15,139 | ||||||||||||
Exchange Effect | (49 | ) | (11 | ) | 23 | (37 | ) | |||||||||
Payments/Utilization | (9,150 | ) | (5,171 | ) | (4,394 | ) | (18,715 | ) | ||||||||
Balance as of December 29, 2018 | $ | 866 | $ | 56 | $ | 787 | $ | 1,709 | ||||||||
Expenses | 3,766 | 684 | (476 | ) | 3,974 | |||||||||||
Exchange Effect | 24 | (7 | ) | (55 | ) | (38 | ) | |||||||||
Payments/Utilization | (3,990 | ) | (632 | ) | (256 | ) | (4,878 | ) | ||||||||
Balance as of December 28, 2019 | $ | 666 | $ | 101 | $ | — | $ | 767 |
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- | |||||||||||||||||||||||||||||
2020 | $ | 14,886 | $ | 6,868 | $ | 1,239 | $ | (3,768) | $ | 19,225 | |||||||||||||||||||
2019 | $ | 13,608 | $ | 1,941 | $ | 2,009 | $ | (2,672) | $ | 14,886 | |||||||||||||||||||
2018 | $ | 13,182 | $ | 3,160 | $ | 1,121 | $ | (3,855) | $ | 13,608 |
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- | |||||||||||||||||||
2019 | $ | 13,608 | $ | 1,941 | $ | 2,009 | $ | (2,672 | ) | $ | 14,886 | ||||||||
2018 | $ | 13,182 | $ | 3,160 | $ | 1,121 | $ | (3,855 | ) | $ | 13,608 | ||||||||
2017 | $ | 12,600 | $ | 2,084 | $ | 478 | $ | (1,979 | ) | $ | 13,182 |
Balance Beginning Of Period | Additions/ (Recoveries) Charged to Expense | Write-Offs During the Period | Balance At End Of Period | ||||||||||||||||||||
Valuation allowance - Deferred tax assets | |||||||||||||||||||||||
2020 | $ | 7,754 | $ | 3,977 | $ | 0 | $ | 11,731 | |||||||||||||||
2019 | $ | 26,023 | $ | 129 | $ | (18,398) | $ | 7,754 | |||||||||||||||
2018 | $ | 23,190 | $ | 2,833 | $ | 0 | $ | 26,023 |
Balance Beginning Of Period | Additions/ (Recoveries) Charged to Expense | Write-Offs During the Period | Balance At End Of Period | ||||||||||||
Valuation allowance - Deferred tax assets | |||||||||||||||
2019 | $ | 26,023 | $ | 129 | $ | (18,398 | ) | $ | 7,754 | ||||||
2018 | $ | 23,190 | $ | 2,833 | $ | — | $ | 26,023 | |||||||
2017 | $ | 29,893 | $ | (6,703 | ) | $ | — | $ | 23,190 |
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. 4.4 Description of the Company's Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934. 10.1 Seventh Amended and Restated Credit Agreement, dated as of January 31,2020, among Middleby Marshall Inc., The Middleby Corporation, theSubsidiary Borrowers named therein, the lenders named therein and Bank ofAmerica, N.A., as administrative agent for the lenders, incorporated byreference to the company's Form 8-K, Exhibit 10.1, filed on February 3, 2020. 97 10.16* 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. 101 Financial statements on Form 10-K for the year ended January 2, 2021, filed on March 3, 2021, 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. 98 |
BY: | /s/ Bryan E. Mittelman | |||||||
Bryan E. Mittelman | ||||||||
Chief Financial Officer |
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 |