0000769520-22-000008 | 10-Q | XBRL Viewer

Financing Arrangements (Tables)

3 Months Ended

Apr. 02, 2022

Notes To Financial Statements [Abstract]

Carrying Value And Fair Value Of Long Term Debt, Disclosure


	Apr 2, 2022				Jan 1, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
Total debt excluding convertible senior notes	$	1,862,591	$	1,869,089	$	1,679,877	$	1,686,537

Schedule of Debt Instruments, Interest Expense

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


	Three Months Ended
		Apr 2, 2022		Apr 3, 2021
Contractual interest expense		$	1,890	$	1,890
Interest cost related to amortization of issuance costs		902		883
Total interest expense		$	2,792	$	2,773

The estimated fair value of the Convertible Notes was $1.0 billion as of April 2, 2022 and was determined through consideration of quoted market prices. The fair value is classified as Level 2, as defined in Note 1(d), Fair Value Measurements, in these Notes to the Condensed Consolidated Financial Statement. The if-converted value of the Convertible Notes exceeded their respective principal value by $191.0 million as of April 2, 2022.

Long-Term Debt (Details) - USD ($) $ in Thousands	Apr. 02, 2022	Jan. 01, 2022
Debt Disclosure [Line Items]
Senior secured revolving credit line	$ 871,001	$ 683,175
Term loan facility	$ 987,251	$ 993,340

Accrued Expenses

3 Months Ended

Apr. 02, 2022

Disclosure Accrued Expenses [Abstract]

Accrued Expenses

Accrued expenses consist of the following (in thousands):


	Apr 2, 2022		Jan 1, 2022
Contract liabilities	$	160,204	$	133,315
Accrued payroll and related expenses	111,943		115,762
Accrued warranty	79,660		80,215
Accrued customer rebates	40,250		72,451
Accrued short-term leases	22,007		22,753
Accrued contingent consideration	21,391		18,728
Accrued professional fees	20,647		19,292
Accrued sales and other tax	20,256		22,684
Accrued agent commission	15,520		13,670
Accrued product liability and workers compensation	11,722		10,952

Other accrued expenses	81,764		73,033

	$	585,364	$	582,855

Financing Arrangements Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Jan. 01, 2022
Debt Disclosure [Line Items]
Term loan facility	$ 987,251	$ 993,340
Credit facility, additional interest rate above LIBOR	1.625%
Debt Instrument Interest Additional Interest Above LIBOR Rate Alternative	0.625%
Debt Instrument Interest Additional Interest Above Fed Funds Rate	0.50%
Credit facility, average interest rate	2.85%
Term loan facility average interest rate	3.35%
Line of credit, Current and Noncurrent, Foreign	$ 3,300
Derivative Notional Amount, Current	129,000
Derivative Notional Amount, NonCurrent	$ 1,048,000
Derivative Fixed Interest Rate, Current	1.71%
Term loan facility, gross	$ 1,000,000
Debt Instrument Interest Additional Interest Above LIBOR Rate, elevated covenants	1.625%
Line Of Credit Facility Commitment Fee Percentage, elevated covenants	0.25%

Label

Element

Value

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net

midd_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilitiesNet

$ 33,918,000

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net

midd_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilitiesNet

5,482,000

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net

midd_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilitiesNet

39,400,000

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net

midd_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilitiesNet

15,907,000

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net

midd_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilitiesNet

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net

midd_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilitiesNet

15,907,000

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net

midd_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilitiesNet

3,010,000

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net

midd_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilitiesNet

(3,381,000)

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net

midd_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilitiesNet

$ (371,000)

Percentage Of Net Sales

midd_PercentageOfNetSales

54.70%

Percentage Of Net Sales

midd_PercentageOfNetSales

63.50%

Percentage Of Net Sales

midd_PercentageOfNetSales

12.00%

Percentage Of Net Sales

midd_PercentageOfNetSales

14.80%

Percentage Of Net Sales

midd_PercentageOfNetSales

33.30%

Percentage Of Net Sales

midd_PercentageOfNetSales

21.70%

Percentage Of Net Sales

midd_PercentageOfNetSales

100.00%

Percentage Of Net Sales

midd_PercentageOfNetSales

100.00%

Assets, Noncurrent, excluding Goodwill and Intangible Assets, Net

midd_AssetsNoncurrentExcludingGoodwillAndIntangibleAssetsNet

$ 19,626,000

Assets, Noncurrent, excluding Goodwill and Intangible Assets, Net

midd_AssetsNoncurrentExcludingGoodwillAndIntangibleAssetsNet

18,747,000

Assets, Noncurrent, excluding Goodwill and Intangible Assets, Net

midd_AssetsNoncurrentExcludingGoodwillAndIntangibleAssetsNet

10,934,000

Assets, Noncurrent, excluding Goodwill and Intangible Assets, Net

midd_AssetsNoncurrentExcludingGoodwillAndIntangibleAssetsNet

6,155,000

Assets, Noncurrent, excluding Goodwill and Intangible Assets, Net

midd_AssetsNoncurrentExcludingGoodwillAndIntangibleAssetsNet

578,747,000

Assets, Noncurrent, excluding Goodwill and Intangible Assets, Net

midd_AssetsNoncurrentExcludingGoodwillAndIntangibleAssetsNet

539,865,000

Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Initial Consideration, Net

midd_BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedInitialConsiderationNet

304,136,000

Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Initial Consideration, Net

midd_BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedInitialConsiderationNet

1,019,000

Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Initial Consideration, Net

midd_BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedInitialConsiderationNet

305,155,000

Business Combination, Intangible Assets, Other than Goodwill, Expected Tax Deductible Amount

midd_BusinessCombinationIntangibleAssetsOtherthanGoodwillExpectedTaxDeductibleAmount

164,300,000

Business Combination, Intangible Assets, Other than Goodwill, Expected Tax Deductible Amount

midd_BusinessCombinationIntangibleAssetsOtherthanGoodwillExpectedTaxDeductibleAmount

148,400,000

Capital Expenditures Net

midd_CapitalExpendituresNet

5,564,000

Capital Expenditures Net

midd_CapitalExpendituresNet

3,087,000

Capital Expenditures Net

midd_CapitalExpendituresNet

5,541,000

Capital Expenditures Net

midd_CapitalExpendituresNet

305,000

^[1]

Capital Expenditures Net

midd_CapitalExpendituresNet

14,497,000

Capital Expenditures Net

midd_CapitalExpendituresNet

5,195,000

Capital Expenditures Net

midd_CapitalExpendituresNet

928,000

Capital Expenditures Net

midd_CapitalExpendituresNet

2,256,000

Capital Expenditures Net

midd_CapitalExpendituresNet

346,000

^[1]

Capital Expenditures Net

midd_CapitalExpendituresNet

8,725,000

Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Tax

midd_OtherComprehensiveIncomeLossCashFlowHedgeGainLossTax

10,892,000

Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Tax

midd_OtherComprehensiveIncomeLossCashFlowHedgeGainLossTax

4,327,000

Contract with Customer, Liability, Increase for Contract Acquired during the Period

midd_ContractWithCustomerLiabilityIncreaseForContractAcquiredDuringThePeriod

119,900,000

Net Periodic Benefit Cost, Other Components

midd_NetPeriodicBenefitCostOtherComponents

(11,516,000)

Net Periodic Benefit Cost, Other Components

midd_NetPeriodicBenefitCostOtherComponents

(11,373,000)

Amortization of Intangible Assets and Debt Issuance Costs

midd_AmortizationofIntangibleAssetsandDebtIssuanceCosts

13,649,000

Amortization of Intangible Assets and Debt Issuance Costs

midd_AmortizationofIntangibleAssetsandDebtIssuanceCosts

1,787,000

Amortization of Intangible Assets and Debt Issuance Costs

midd_AmortizationofIntangibleAssetsandDebtIssuanceCosts

18,129,000

Amortization of Intangible Assets and Debt Issuance Costs

midd_AmortizationofIntangibleAssetsandDebtIssuanceCosts

1,805,000

^[1],[2]

Amortization of Intangible Assets and Debt Issuance Costs

midd_AmortizationofIntangibleAssetsandDebtIssuanceCosts

35,370,000

^[2]

Amortization of Intangible Assets and Debt Issuance Costs

midd_AmortizationofIntangibleAssetsandDebtIssuanceCosts

15,204,000

Amortization of Intangible Assets and Debt Issuance Costs

midd_AmortizationofIntangibleAssetsandDebtIssuanceCosts

1,843,000

Amortization of Intangible Assets and Debt Issuance Costs

midd_AmortizationofIntangibleAssetsandDebtIssuanceCosts

1,772,000

Amortization of Intangible Assets and Debt Issuance Costs

midd_AmortizationofIntangibleAssetsandDebtIssuanceCosts

1,476,000

^[1],[2]

Amortization of Intangible Assets and Debt Issuance Costs

midd_AmortizationofIntangibleAssetsandDebtIssuanceCosts

20,295,000

^[2]

Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Tax

midd_AccumulatedOtherComprehensiveIncomeLossCumulativeChangesinNetGainLossfromCashFlowHedgesTax

6,400,000

Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Tax

midd_AccumulatedOtherComprehensiveIncomeLossCumulativeChangesinNetGainLossfromCashFlowHedgesTax

$ (8,800,000)

Share Based Compensation Policy [Policy Text Block]

midd_ShareBasedCompensationPolicyPolicyTextBlock

Non-Cash Share-Based CompensationThe company estimates the fair value of market-based stock awards and stock options at the time of grant and recognizes compensation cost over the vesting period of the awards and options.

Accumulated Other Comprehensive (income) Loss, Defined Benefit Plan, Tax

midd_AccumulatedOtherComprehensiveincomeLossDefinedBenefitPlanTax

$ (38,500,000)

Accumulated Other Comprehensive (income) Loss, Defined Benefit Plan, Tax

midd_AccumulatedOtherComprehensiveincomeLossDefinedBenefitPlanTax

(90,000,000.0)

Accumulated Other Comprehensive Income (Loss), Unrealized Gain (Loss) Certain Investments, tax

midd_AccumulatedOtherComprehensiveIncomeLossUnrealizedGainLossCertainInvestmentsTax

900,000

Other Comprehensive Income (Loss), Unrealized Gain (loss) Certain Investments, Tax

midd_OtherComprehensiveIncomeLossUnrealizedGainLossCertainInvestmentsTax

$ 500,000

Basis Of Presentation [Policy Text Block]

midd_BasisOfPresentationPolicyTextBlock

Basis of Presentation

The condensed consolidated financial statements have been prepared by The Middleby Corporation (the "company" or “Middleby”), pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The financial statements are unaudited and certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the company believes that the disclosures are adequate to make the information not misleading. These financial statements should be read in conjunction with the financial statements and related notes contained in the company's 2021 Form 10-K. The company’s interim results are not necessarily indicative of future full year results for the fiscal year 2022.

In the opinion of management, the financial statements contain all adjustments, which are normal and recurring in nature, necessary to present fairly the financial position of the company as of April 2, 2022 and January 1, 2022, the results of operations for the three months ended April 2, 2022 and April 3, 2021, cash flows for the three months ended April 2, 2022 and April 3, 2021 and statement of stockholders' equity for the three months ended April 2, 2022 and April 3, 2021.

Cumulative Effect Period of Adoption, Retained Earnings

midd_CumulativeEffectPeriodOfAdoptionRetainedEarnings

$ 5,100,000

Cumulative effect Period of Adoption, tax impact

midd_CumulativeEffectPeriodOfAdoptionTaxImpact

25,500,000

Cumulative effect Period of Adoption, tax impact

midd_CumulativeEffectPeriodOfAdoptionTaxImpact

1,600,000

Adjustments to Additional Paid in Capital, Purchase of Capped Calls, Tax

midd_AdjustmentsToAdditionalPaidInCapitalPurchaseOfCappedCallsTax

$ (2,364,000)

Share Repurchase Program, Number of Shares Repurchased

midd_ShareRepurchaseProgramNumberofSharesRepurchased

2,027,577

Cumulative Effect Period of Adoption, Additional Paid In Capital

midd_CumulativeEffectPeriodOfAdoptionAdditionalPaidInCapital

$ 79,400,000

Europe And Middle East [Member]

Assets, Noncurrent, excluding Goodwill and Intangible Assets, Net

midd_AssetsNoncurrentExcludingGoodwillAndIntangibleAssetsNet

147,005,000

Assets, Noncurrent, excluding Goodwill and Intangible Assets, Net

midd_AssetsNoncurrentExcludingGoodwillAndIntangibleAssetsNet

182,577,000

Total International [Member]

Assets, Noncurrent, excluding Goodwill and Intangible Assets, Net

midd_AssetsNoncurrentExcludingGoodwillAndIntangibleAssetsNet

177,565,000

Assets, Noncurrent, excluding Goodwill and Intangible Assets, Net

midd_AssetsNoncurrentExcludingGoodwillAndIntangibleAssetsNet

209,785,000

United States And Canada [Member]

Assets, Noncurrent, excluding Goodwill and Intangible Assets, Net

midd_AssetsNoncurrentExcludingGoodwillAndIntangibleAssetsNet

401,182,000

Assets, Noncurrent, excluding Goodwill and Intangible Assets, Net

midd_AssetsNoncurrentExcludingGoodwillAndIntangibleAssetsNet

332,387,000

Book and tax difference, identifiable tangible assets and liabilities [Member]

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net

midd_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilitiesNet

(2,000,000)

Book and tax difference, identifiable intangible assets [Member]

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net

midd_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilitiesNet

(37,400,000)

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net

midd_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilitiesNet

(18,200,000)

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net

midd_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilitiesNet

(300,000)

Tax loss carryforwards [Member]

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net

midd_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilitiesNet

2,300,000

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net

midd_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilitiesNet

$ 700,000

[1]	Includes corporate and other general company assets and operations.
[2]	Includes amortization of deferred financing costs and Convertible Notes issuance costs

Capped Call Information (Details) - USD ($)	3 Months Ended
Capped Call Information (Details) - USD ($)	Apr. 02, 2022	Apr. 03, 2021	Mar. 22, 2022	Dec. 22, 2021	Dec. 16, 2021	Aug. 21, 2020
Debt Disclosure [Line Items]
Debt Instrument, Capped Call Transaction, Net Cost						$ 104,700,000
Debt Instrument, Capped Call Transaction Cap Price, Per Share			$ 229.00	$ 225.00	$ 216.50	$ 207.93
Premiums paid for capped call	$ 9,700,000	$ 0

Segment Information (Tables)

3 Months Ended

Apr. 02, 2022

Notes To Financial Statements [Abstract]

Net Sales Summary By Segment

Net Sales Summary

(dollars in thousands)


	Three Months Ended
		Apr 2, 2022	Apr 3, 2021
			Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice			$	543,653	54.7	%	$	481,155	63.5	%
Food Processing			119,943		12.0		112,494		14.8
Residential Kitchen			331,080		33.3		164,409		21.7
Total			$	994,676	100.0	%	$	758,058	100.0	%

Schedule of Segment Reporting Information, by Segment

The following table summarizes the results of operations for the company's business segments (in thousands):


	Commercial Foodservice		Food Processing		Residential Kitchen		Corporate and Other (1)		Total







Three Months Ended April 2, 2022
Net sales	$	543,653	$	119,943	$	331,080	$	—	$	994,676
Income (loss) from operations (2, 3)	109,718		20,112		24,946		(32,212)		122,564
Depreciation expense	5,872		1,325		3,985		190		11,372
Amortization expense (5)	13,649		1,787		18,129		1,805		35,370
Net capital expenditures	5,564		3,087		5,541		305		14,497

Total assets	$	3,596,857	$	654,766	$	2,127,119	$	95,423	$	6,474,165








Three Months Ended April 3, 2021
Net sales	$	481,155	$	112,494	$	164,409	$	—	$	758,058
Income (loss) from operations (2, 3, 4)	96,316		19,662		29,856		(24,661)		121,173
Depreciation expense	5,793		1,315		2,774		255		10,137
Amortization expense (5)	15,204		1,843		1,772		1,476		20,295
Net capital expenditures	5,195		928		2,256		346		8,725

Total assets	$	3,283,354	$	632,746	$	1,213,045	$	160,768	$	5,289,913

(1)Includes corporate and other general company assets and operations.

(2)Non-operating expenses are not allocated to the operating segments. Non-operating expenses consist of interest expense and deferred financing amortization, foreign exchange gains and losses and other income and expense items outside of income from operations.

Carrying Value and Estimated Aggregate Fair Value of Debt (Details)	Apr. 02, 2022
Debt Disclosure [Line Items]
Derivative Fixed Interest Rate, Noncurrent	1.79%

Accrued Expenses (Details) - USD ($) $ in Thousands	Apr. 02, 2022	Jan. 01, 2022
Disclosure Accrued Expenses [Abstract]
Accrued customer rebates	$ 40,250	$ 72,451
Accrued Product Liability And Workers Compensation Liability Current	$ 11,722	$ 10,952