midd-20200926
00007695201/22020Q3FALSE00007695202019-12-292020-09-26xbrli:shares00007695202020-10-30iso4217:USD00007695202020-09-2600007695202019-12-28iso4217:USDxbrli:shares00007695202020-06-282020-09-2600007695202019-06-302019-09-2800007695202018-12-302019-09-280000769520us-gaap:CommonStockMember2020-06-270000769520us-gaap:AdditionalPaidInCapitalMember2020-06-270000769520us-gaap:TreasuryStockMember2020-06-270000769520us-gaap:RetainedEarningsMember2020-06-270000769520us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-2700007695202020-06-270000769520us-gaap:CommonStockMember2020-06-282020-09-260000769520us-gaap:AdditionalPaidInCapitalMember2020-06-282020-09-260000769520us-gaap:TreasuryStockMember2020-06-282020-09-260000769520us-gaap:RetainedEarningsMember2020-06-282020-09-260000769520us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-282020-09-260000769520us-gaap:CommonStockMember2020-09-260000769520us-gaap:AdditionalPaidInCapitalMember2020-09-260000769520us-gaap:TreasuryStockMember2020-09-260000769520us-gaap:RetainedEarningsMember2020-09-260000769520us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-260000769520us-gaap:CommonStockMember2019-12-280000769520us-gaap:AdditionalPaidInCapitalMember2019-12-280000769520us-gaap:TreasuryStockMember2019-12-280000769520us-gaap:RetainedEarningsMember2019-12-280000769520us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-280000769520us-gaap:CommonStockMember2019-12-292020-09-260000769520us-gaap:AdditionalPaidInCapitalMember2019-12-292020-09-260000769520us-gaap:TreasuryStockMember2019-12-292020-09-260000769520us-gaap:RetainedEarningsMember2019-12-292020-09-260000769520us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-292020-09-260000769520us-gaap:CommonStockMember2019-06-290000769520us-gaap:AdditionalPaidInCapitalMember2019-06-290000769520us-gaap:TreasuryStockMember2019-06-290000769520us-gaap:RetainedEarningsMember2019-06-290000769520us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-2900007695202019-06-290000769520us-gaap:CommonStockMember2019-06-302019-09-280000769520us-gaap:AdditionalPaidInCapitalMember2019-06-302019-09-280000769520us-gaap:TreasuryStockMember2019-06-302019-09-280000769520us-gaap:RetainedEarningsMember2019-06-302019-09-280000769520us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-302019-09-280000769520us-gaap:CommonStockMember2019-09-280000769520us-gaap:AdditionalPaidInCapitalMember2019-09-280000769520us-gaap:TreasuryStockMember2019-09-280000769520us-gaap:RetainedEarningsMember2019-09-280000769520us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-2800007695202019-09-280000769520us-gaap:CommonStockMember2018-12-290000769520us-gaap:AdditionalPaidInCapitalMember2018-12-290000769520us-gaap:TreasuryStockMember2018-12-290000769520us-gaap:RetainedEarningsMember2018-12-290000769520us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-2900007695202018-12-290000769520us-gaap:CommonStockMember2018-12-302019-09-280000769520us-gaap:AdditionalPaidInCapitalMember2018-12-302019-09-280000769520us-gaap:TreasuryStockMember2018-12-302019-09-280000769520us-gaap:RetainedEarningsMember2018-12-302019-09-280000769520us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-302019-09-280000769520us-gaap:CommonStockMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201712Member2018-12-290000769520us-gaap:AdditionalPaidInCapitalMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201712Member2018-12-290000769520srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:TreasuryStockMemberus-gaap:AccountingStandardsUpdate201712Member2018-12-290000769520us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201712Member2018-12-290000769520us-gaap:AccumulatedOtherComprehensiveIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201712Member2018-12-290000769520srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201712Member2018-12-290000769520us-gaap:CommonStockMemberus-gaap:AccountingStandardsUpdate201712Member2018-12-302019-09-280000769520us-gaap:AdditionalPaidInCapitalMemberus-gaap:AccountingStandardsUpdate201712Member2018-12-302019-09-280000769520us-gaap:TreasuryStockMemberus-gaap:AccountingStandardsUpdate201712Member2018-12-302019-09-280000769520us-gaap:RetainedEarningsMemberus-gaap:AccountingStandardsUpdate201712Member2018-12-302019-09-280000769520us-gaap:AccumulatedOtherComprehensiveIncomeMemberus-gaap:AccountingStandardsUpdate201712Member2018-12-302019-09-280000769520us-gaap:AccountingStandardsUpdate201712Member2018-12-302019-09-280000769520srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2018-12-29xbrli:pure0000769520us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-260000769520us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-260000769520us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-260000769520us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-260000769520us-gaap:FairValueInputsLevel1Membermidd:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-260000769520us-gaap:FairValueInputsLevel2Membermidd:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-260000769520us-gaap:FairValueInputsLevel3Membermidd:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-260000769520midd:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-260000769520us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignExchangeForwardMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-260000769520us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeForwardMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-260000769520us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignExchangeForwardMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-260000769520us-gaap:ForeignExchangeForwardMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-260000769520us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-280000769520us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-280000769520us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-280000769520us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-280000769520us-gaap:FairValueInputsLevel1Membermidd:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-280000769520us-gaap:FairValueInputsLevel2Membermidd:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-280000769520us-gaap:FairValueInputsLevel3Membermidd:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-280000769520midd:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-280000769520us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignExchangeForwardMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-280000769520us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeForwardMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-280000769520us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignExchangeForwardMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-280000769520us-gaap:ForeignExchangeForwardMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-280000769520midd:StandexMember2019-04-012019-04-010000769520midd:StandexMember2019-12-292020-09-260000769520srt:ScenarioPreviouslyReportedMembermidd:StandexMember2019-04-010000769520us-gaap:ScenarioAdjustmentMembermidd:StandexMember2019-04-010000769520midd:StandexMember2019-04-010000769520midd:CommercialFoodserviceEquipmentGroupMemberus-gaap:TradeNamesMembermidd:StandexMember2019-04-010000769520midd:CommercialFoodserviceEquipmentGroupMemberus-gaap:CustomerRelationshipsMembermidd:StandexMember2019-04-010000769520midd:CommercialFoodserviceEquipmentGroupMemberus-gaap:OrderOrProductionBacklogMembermidd:StandexMember2019-04-010000769520midd:CommercialFoodserviceEquipmentGroupMemberus-gaap:CustomerRelationshipsMembermidd:StandexMember2019-04-012019-04-010000769520midd:CommercialFoodserviceEquipmentGroupMemberus-gaap:OrderOrProductionBacklogMembermidd:StandexMember2019-04-012019-04-010000769520midd:A2019AcquisitionsMember2019-12-292020-09-260000769520srt:ScenarioPreviouslyReportedMembermidd:A2019AcquisitionsMember2020-09-260000769520us-gaap:ScenarioAdjustmentMembermidd:A2019AcquisitionsMember2020-09-260000769520midd:A2019AcquisitionsMember2020-09-260000769520midd:TradenamesAndTrademarksMembermidd:A2019AcquisitionsMember2020-09-260000769520us-gaap:CustomerRelationshipsMembermidd:A2019AcquisitionsMember2020-09-260000769520us-gaap:DevelopedTechnologyRightsMembermidd:A2019AcquisitionsMember2020-09-260000769520us-gaap:OrderOrProductionBacklogMembermidd:A2019AcquisitionsMember2020-09-260000769520srt:MinimumMemberus-gaap:CustomerRelationshipsMembermidd:A2019AcquisitionsMember2019-12-292020-09-260000769520srt:MaximumMemberus-gaap:CustomerRelationshipsMembermidd:A2019AcquisitionsMember2019-12-292020-09-260000769520srt:MinimumMemberus-gaap:DevelopedTechnologyRightsMembermidd:A2019AcquisitionsMember2019-12-292020-09-260000769520srt:MaximumMemberus-gaap:DevelopedTechnologyRightsMembermidd:A2019AcquisitionsMember2019-12-292020-09-260000769520srt:MinimumMemberus-gaap:OrderOrProductionBacklogMembermidd:A2019AcquisitionsMember2019-12-292020-09-260000769520midd:CommercialFoodserviceEquipmentGroupMembermidd:A2019AcquisitionsMember2020-09-260000769520midd:FoodProcessingGroupMembermidd:A2019AcquisitionsMember2020-09-260000769520midd:ResidentialKitchenMembermidd:A2019AcquisitionsMember2020-09-260000769520midd:A2020AcquisitionsMember2019-12-292020-09-260000769520srt:ScenarioPreviouslyReportedMembermidd:A2020AcquisitionsMember2020-09-260000769520us-gaap:ScenarioAdjustmentMembermidd:A2020AcquisitionsMember2020-09-260000769520midd:A2020AcquisitionsMember2020-09-260000769520midd:TradenamesAndTrademarksMembermidd:A2020AcquisitionsMember2020-09-260000769520us-gaap:CustomerRelationshipsMembermidd:A2020AcquisitionsMember2020-09-260000769520us-gaap:DevelopedTechnologyRightsMembermidd:A2020AcquisitionsMember2020-09-260000769520us-gaap:OrderOrProductionBacklogMembermidd:A2020AcquisitionsMember2020-09-260000769520srt:MaximumMemberus-gaap:CustomerRelationshipsMembermidd:A2020AcquisitionsMember2019-12-292020-09-260000769520srt:MaximumMemberus-gaap:DevelopedTechnologyRightsMembermidd:A2020AcquisitionsMember2019-12-292020-09-260000769520us-gaap:OrderOrProductionBacklogMembermidd:A2020AcquisitionsMember2019-12-292020-09-260000769520midd:CommercialFoodserviceEquipmentGroupMembermidd:A2020AcquisitionsMember2020-09-260000769520midd:UnitedStatesAndCanadaMembermidd:CommercialFoodserviceEquipmentGroupMember2020-06-282020-09-260000769520midd:FoodProcessingGroupMembermidd:UnitedStatesAndCanadaMember2020-06-282020-09-260000769520midd:UnitedStatesAndCanadaMembermidd:ResidentialKitchenMember2020-06-282020-09-260000769520midd:UnitedStatesAndCanadaMember2020-06-282020-09-260000769520srt:AsiaMembermidd:CommercialFoodserviceEquipmentGroupMember2020-06-282020-09-260000769520srt:AsiaMembermidd:FoodProcessingGroupMember2020-06-282020-09-260000769520srt:AsiaMembermidd:ResidentialKitchenMember2020-06-282020-09-260000769520srt:AsiaMember2020-06-282020-09-260000769520midd:CommercialFoodserviceEquipmentGroupMembermidd:EuropeAndMiddleEastMember2020-06-282020-09-260000769520midd:FoodProcessingGroupMembermidd:EuropeAndMiddleEastMember2020-06-282020-09-260000769520midd:EuropeAndMiddleEastMembermidd:ResidentialKitchenMember2020-06-282020-09-260000769520midd:EuropeAndMiddleEastMember2020-06-282020-09-260000769520srt:LatinAmericaMembermidd:CommercialFoodserviceEquipmentGroupMember2020-06-282020-09-260000769520srt:LatinAmericaMembermidd:FoodProcessingGroupMember2020-06-282020-09-260000769520srt:LatinAmericaMembermidd:ResidentialKitchenMember2020-06-282020-09-260000769520srt:LatinAmericaMember2020-06-282020-09-260000769520midd:CommercialFoodserviceEquipmentGroupMember2020-06-282020-09-260000769520midd:FoodProcessingGroupMember2020-06-282020-09-260000769520midd:ResidentialKitchenMember2020-06-282020-09-260000769520midd:UnitedStatesAndCanadaMembermidd:CommercialFoodserviceEquipmentGroupMember2019-12-292020-09-260000769520midd:FoodProcessingGroupMembermidd:UnitedStatesAndCanadaMember2019-12-292020-09-260000769520midd:UnitedStatesAndCanadaMembermidd:ResidentialKitchenMember2019-12-292020-09-260000769520midd:UnitedStatesAndCanadaMember2019-12-292020-09-260000769520srt:AsiaMembermidd:CommercialFoodserviceEquipmentGroupMember2019-12-292020-09-260000769520srt:AsiaMembermidd:FoodProcessingGroupMember2019-12-292020-09-260000769520srt:AsiaMembermidd:ResidentialKitchenMember2019-12-292020-09-260000769520srt:AsiaMember2019-12-292020-09-260000769520midd:CommercialFoodserviceEquipmentGroupMembermidd:EuropeAndMiddleEastMember2019-12-292020-09-260000769520midd:FoodProcessingGroupMembermidd:EuropeAndMiddleEastMember2019-12-292020-09-260000769520midd:EuropeAndMiddleEastMembermidd:ResidentialKitchenMember2019-12-292020-09-260000769520midd:EuropeAndMiddleEastMember2019-12-292020-09-260000769520srt:LatinAmericaMembermidd:CommercialFoodserviceEquipmentGroupMember2019-12-292020-09-260000769520srt:LatinAmericaMembermidd:FoodProcessingGroupMember2019-12-292020-09-260000769520srt:LatinAmericaMembermidd:ResidentialKitchenMember2019-12-292020-09-260000769520srt:LatinAmericaMember2019-12-292020-09-260000769520midd:CommercialFoodserviceEquipmentGroupMember2019-12-292020-09-260000769520midd:FoodProcessingGroupMember2019-12-292020-09-260000769520midd:ResidentialKitchenMember2019-12-292020-09-260000769520midd:UnitedStatesAndCanadaMembermidd:CommercialFoodserviceEquipmentGroupMember2019-06-302019-09-280000769520midd:FoodProcessingGroupMembermidd:UnitedStatesAndCanadaMember2019-06-302019-09-280000769520midd:UnitedStatesAndCanadaMembermidd:ResidentialKitchenMember2019-06-302019-09-280000769520midd:UnitedStatesAndCanadaMember2019-06-302019-09-280000769520srt:AsiaMembermidd:CommercialFoodserviceEquipmentGroupMember2019-06-302019-09-280000769520srt:AsiaMembermidd:FoodProcessingGroupMember2019-06-302019-09-280000769520srt:AsiaMembermidd:ResidentialKitchenMember2019-06-302019-09-280000769520srt:AsiaMember2019-06-302019-09-280000769520midd:CommercialFoodserviceEquipmentGroupMembermidd:EuropeAndMiddleEastMember2019-06-302019-09-280000769520midd:FoodProcessingGroupMembermidd:EuropeAndMiddleEastMember2019-06-302019-09-280000769520midd:EuropeAndMiddleEastMembermidd:ResidentialKitchenMember2019-06-302019-09-280000769520midd:EuropeAndMiddleEastMember2019-06-302019-09-280000769520srt:LatinAmericaMembermidd:CommercialFoodserviceEquipmentGroupMember2019-06-302019-09-280000769520srt:LatinAmericaMembermidd:FoodProcessingGroupMember2019-06-302019-09-280000769520srt:LatinAmericaMembermidd:ResidentialKitchenMember2019-06-302019-09-280000769520srt:LatinAmericaMember2019-06-302019-09-280000769520midd:CommercialFoodserviceEquipmentGroupMember2019-06-302019-09-280000769520midd:FoodProcessingGroupMember2019-06-302019-09-280000769520midd:ResidentialKitchenMember2019-06-302019-09-280000769520midd:UnitedStatesAndCanadaMembermidd:CommercialFoodserviceEquipmentGroupMember2018-12-302019-09-280000769520midd:FoodProcessingGroupMembermidd:UnitedStatesAndCanadaMember2018-12-302019-09-280000769520midd:UnitedStatesAndCanadaMembermidd:ResidentialKitchenMember2018-12-302019-09-280000769520midd:UnitedStatesAndCanadaMember2018-12-302019-09-280000769520srt:AsiaMembermidd:CommercialFoodserviceEquipmentGroupMember2018-12-302019-09-280000769520srt:AsiaMembermidd:FoodProcessingGroupMember2018-12-302019-09-280000769520srt:AsiaMembermidd:ResidentialKitchenMember2018-12-302019-09-280000769520srt:AsiaMember2018-12-302019-09-280000769520midd:CommercialFoodserviceEquipmentGroupMembermidd:EuropeAndMiddleEastMember2018-12-302019-09-280000769520midd:FoodProcessingGroupMembermidd:EuropeAndMiddleEastMember2018-12-302019-09-280000769520midd:EuropeAndMiddleEastMembermidd:ResidentialKitchenMember2018-12-302019-09-280000769520midd:EuropeAndMiddleEastMember2018-12-302019-09-280000769520srt:LatinAmericaMembermidd:CommercialFoodserviceEquipmentGroupMember2018-12-302019-09-280000769520srt:LatinAmericaMembermidd:FoodProcessingGroupMember2018-12-302019-09-280000769520srt:LatinAmericaMembermidd:ResidentialKitchenMember2018-12-302019-09-280000769520srt:LatinAmericaMember2018-12-302019-09-280000769520midd:CommercialFoodserviceEquipmentGroupMember2018-12-302019-09-280000769520midd:FoodProcessingGroupMember2018-12-302019-09-280000769520midd:ResidentialKitchenMember2018-12-302019-09-280000769520us-gaap:AccumulatedTranslationAdjustmentMember2019-12-280000769520us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-12-280000769520us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:InterestRateSwapMember2019-12-280000769520us-gaap:AccumulatedTranslationAdjustmentMember2019-12-292020-09-260000769520us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-12-292020-09-260000769520us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:InterestRateSwapMember2019-12-292020-09-260000769520us-gaap:AccumulatedTranslationAdjustmentMember2020-09-260000769520us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-09-260000769520us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:InterestRateSwapMember2020-09-260000769520us-gaap:AccumulatedTranslationAdjustmentMember2018-12-290000769520us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-12-290000769520us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:InterestRateSwapMember2018-12-290000769520us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:AccountingStandardsUpdate201712Member2018-12-302019-09-280000769520us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMemberus-gaap:AccountingStandardsUpdate201712Member2018-12-302019-09-280000769520us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:InterestRateSwapMemberus-gaap:AccountingStandardsUpdate201712Member2018-12-302019-09-280000769520us-gaap:AccumulatedTranslationAdjustmentMember2018-12-302019-09-280000769520us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-12-302019-09-280000769520us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:InterestRateSwapMember2018-12-302019-09-280000769520us-gaap:AccumulatedTranslationAdjustmentMember2019-09-280000769520us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-09-280000769520us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:InterestRateSwapMember2019-09-280000769520midd:CommercialFoodserviceEquipmentGroupMember2019-12-280000769520midd:FoodProcessingGroupMember2019-12-280000769520midd:ResidentialKitchenMember2019-12-280000769520midd:CommercialFoodserviceEquipmentGroupMember2020-09-260000769520midd:FoodProcessingGroupMember2020-09-260000769520midd:ResidentialKitchenMember2020-09-260000769520us-gaap:CustomerListsMember2019-12-292020-09-260000769520us-gaap:CustomerListsMember2020-09-260000769520us-gaap:CustomerListsMember2018-12-302019-12-280000769520us-gaap:CustomerListsMember2019-12-280000769520us-gaap:OrderOrProductionBacklogMember2019-12-292020-09-260000769520us-gaap:OrderOrProductionBacklogMember2020-09-260000769520us-gaap:OrderOrProductionBacklogMember2018-12-302019-12-280000769520us-gaap:OrderOrProductionBacklogMember2019-12-280000769520us-gaap:DevelopedTechnologyRightsMember2019-12-292020-09-260000769520us-gaap:DevelopedTechnologyRightsMember2020-09-260000769520us-gaap:DevelopedTechnologyRightsMember2018-12-302019-12-280000769520us-gaap:DevelopedTechnologyRightsMember2019-12-280000769520midd:TradenamesAndTrademarksMember2020-09-260000769520midd:TradenamesAndTrademarksMember2019-12-280000769520midd:ForeignMember2020-09-260000769520midd:ForeignMember2019-12-2800007695202020-01-3100007695202020-08-2100007695202020-01-312020-01-310000769520us-gaap:ConvertibleDebtMember2020-08-210000769520us-gaap:ConvertibleDebtMember2020-08-212020-08-210000769520midd:TermLoanFacilityMember2020-08-212020-08-210000769520midd:DebtExcludingConvertibleSeniorNotesMember2020-09-260000769520midd:DebtExcludingConvertibleSeniorNotesMember2019-12-280000769520us-gaap:ConvertibleDebtMember2020-09-260000769520us-gaap:ConvertibleDebtMember2019-12-292020-09-260000769520midd:ScenarioOneMemberus-gaap:ConvertibleDebtMember2020-08-212020-08-210000769520us-gaap:ConvertibleDebtMembermidd:ScenarioTwoMember2020-08-212020-08-210000769520us-gaap:ForeignExchangeForwardMember2020-09-260000769520us-gaap:InterestRateSwapMemberus-gaap:OtherNoncurrentAssetsMember2020-09-260000769520us-gaap:InterestRateSwapMemberus-gaap:OtherNoncurrentAssetsMember2019-12-280000769520us-gaap:AccruedLiabilitiesMemberus-gaap:InterestRateSwapMember2020-09-260000769520us-gaap:AccruedLiabilitiesMemberus-gaap:InterestRateSwapMember2019-12-280000769520us-gaap:InterestRateSwapMemberus-gaap:OtherNoncurrentLiabilitiesMember2020-09-260000769520us-gaap:InterestRateSwapMemberus-gaap:OtherNoncurrentLiabilitiesMember2019-12-280000769520us-gaap:OtherComprehensiveIncomeMemberus-gaap:InterestRateSwapMember2020-06-282020-09-260000769520us-gaap:OtherComprehensiveIncomeMemberus-gaap:InterestRateSwapMember2019-06-302019-09-280000769520us-gaap:OtherComprehensiveIncomeMemberus-gaap:InterestRateSwapMember2019-12-292020-09-260000769520us-gaap:OtherComprehensiveIncomeMemberus-gaap:InterestRateSwapMember2018-12-302019-09-280000769520us-gaap:InterestExpenseMemberus-gaap:InterestRateSwapMember2020-06-282020-09-260000769520us-gaap:InterestExpenseMemberus-gaap:InterestRateSwapMember2019-06-302019-09-280000769520us-gaap:InterestExpenseMemberus-gaap:InterestRateSwapMember2019-12-292020-09-260000769520us-gaap:InterestExpenseMemberus-gaap:InterestRateSwapMember2018-12-302019-09-280000769520us-gaap:CorporateAndOtherMember2020-06-282020-09-260000769520us-gaap:CorporateAndOtherMember2019-12-292020-09-260000769520us-gaap:CorporateAndOtherMember2020-09-260000769520us-gaap:CorporateAndOtherMember2019-06-302019-09-280000769520us-gaap:CorporateAndOtherMember2018-12-302019-09-280000769520midd:CommercialFoodserviceEquipmentGroupMember2019-09-280000769520midd:FoodProcessingGroupMember2019-09-280000769520midd:ResidentialKitchenMember2019-09-280000769520us-gaap:CorporateAndOtherMember2019-09-280000769520midd:UnitedStatesAndCanadaMember2020-09-260000769520midd:UnitedStatesAndCanadaMember2019-12-280000769520srt:AsiaMember2020-09-260000769520srt:AsiaMember2019-12-280000769520midd:EuropeAndMiddleEastMember2020-09-260000769520midd:EuropeAndMiddleEastMember2019-12-280000769520srt:LatinAmericaMember2020-09-260000769520srt:LatinAmericaMember2019-12-280000769520midd:TotalInternationalMember2020-09-260000769520midd:TotalInternationalMember2019-12-280000769520midd:NonUSPlansMember2020-06-282020-09-260000769520midd:NonUSPlansMember2019-06-302019-09-280000769520midd:NonUSPlansMember2019-12-292020-09-260000769520midd:NonUSPlansMember2018-12-302019-09-28midd:plan0000769520midd:CommercialFoodserviceEquipmentGroupMember2019-12-292020-03-280000769520midd:Covid19Member2020-06-282020-09-260000769520midd:Covid19Member2019-12-292020-09-260000769520midd:Covid19Member2020-09-260000769520midd:A2017ProgramMember2017-11-070000769520midd:A2017ProgramMember2019-12-292020-09-260000769520midd:A2017ProgramMember2020-09-260000769520us-gaap:RestrictedStockMember2019-12-292020-09-26

UNITED STATES
 
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 
FORM 10-Q 
 
(Mark One)
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended September 26, 2020
or
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Commission File No. 1-9973
 
THE MIDDLEBY CORPORATION
(Exact name of registrant as specified in its charter)  
Delaware36-3352497
(State or other jurisdiction of incorporation or organization)(IRS Employer Identification Number)
 
 
1400 Toastmaster Drive,Elgin,Illinois60120
(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code:(847)741-3300
 
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes x No o   
 
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes x   No o
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “accelerated filer," "large accelerated filer," "smaller reporting company," and "emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filerNon-accelerated filer
Smaller reporting companyEmerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common StockMIDDNasdaq Global Market
As of October 30, 2020, there were 55,612,255 shares of the registrant's common stock outstanding.



THE MIDDLEBY CORPORATION
 
QUARTER ENDED SEPTEMBER 26, 2020
  
INDEX
DESCRIPTIONPAGE
PART I.  FINANCIAL INFORMATION 
  
Item 1. 
   
 CONDENSED CONSOLIDATED BALANCE SHEETS as of SEPTEMBER 26, 2020 and DECEMBER 28, 2019
  
 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME for the three and nine months ended SEPTEMBER 26, 2020 and SEPTEMBER 28, 2019
  
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY for the three and nine months ended SEPTEMBER 26, 2020 and SEPTEMBER 28, 2019
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS for the nine months ended SEPTEMBER 26, 2020 and SEPTEMBER 28, 2019
 
  
Item 2.
  
Item 3.
  
Item 4.
  
PART II. OTHER INFORMATION
  
Item 1.A
Item 2.
  
Item 6.



PART I. FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements

THE MIDDLEBY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Data)
(Unaudited)
 
ASSETSSep 26, 2020Dec 28, 2019
Current assets:  
Cash and cash equivalents$220,310 $94,500 
Accounts receivable, net of reserve for doubtful accounts of $20,237 and $14,886
381,273 447,612 
Inventories, net557,512 585,699 
Prepaid expenses and other67,261 61,224 
Prepaid taxes14,826 20,161 
Total current assets1,241,182 1,209,196 
Property, plant and equipment, net of accumulated depreciation of $223,844 and $197,629
343,860 352,145 
Goodwill1,855,361 1,849,747 
Other intangibles, net of amortization of $385,737 and $333,507
1,420,600 1,443,381 
Long-term deferred tax assets35,115 36,932 
Other assets124,066 110,742 
Total assets$5,020,184 $5,002,143 
LIABILITIES AND STOCKHOLDERS' EQUITY  
Current liabilities:  
Current maturities of long-term debt$23,152 $2,894 
Accounts payable152,262 173,693 
Accrued expenses421,580 416,550 
Total current liabilities596,994 593,137 
Long-term debt1,808,973 1,870,246 
Long-term deferred tax liability137,276 133,500 
Accrued pension benefits252,420 289,086 
Other non-current liabilities193,199 169,360 
Stockholders' equity:  
Preferred stock, $0.01 par value; nonvoting; 2,000,000 shares authorized; none issued
  
Common stock, $0.01 par value; 63,558,226 and 63,129,775 shares issued in 2020 and 2019, respectively
146 145 
Paid-in capital415,952 387,402 
Treasury stock, at cost; 7,945,527 and 6,940,089 shares in 2020 and 2019
(528,506)(451,262)
Retained earnings2,516,919 2,361,462 
Accumulated other comprehensive loss(373,189)(350,933)
Total stockholders' equity2,031,322 1,946,814 
Total liabilities and stockholders' equity$5,020,184 $5,002,143 
 


See accompanying notes
1


THE MIDDLEBY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands, Except Per Share Data)
(Unaudited)
 
 
 Three Months EndedNine Months Ended
 Sep 26, 2020Sep 28, 2019Sep 26, 2020Sep 28, 2019
Net sales$634,525 $724,014 $1,783,961 $2,171,820 
Cost of sales411,776 453,986 1,157,896 1,358,001 
Gross profit222,749 270,028 626,065 813,819 
Selling, general and administrative expenses128,814 144,460 384,580 445,000 
Restructuring expenses7,263 4,223 10,281 6,806 
Income from operations86,672 121,345 231,204 362,013 
Interest expense and deferred financing amortization, net18,418 20,846 55,881 63,334 
Net periodic pension benefit (other than service costs)(10,149)(7,175)(30,004)(22,233)
Other (income) expense, net(294)1,444 3,414 (489)
Earnings before income taxes78,697 106,230 201,913 321,401 
Provision for income taxes18,181 24,210 46,456 78,158 
Net earnings$60,516 $82,020 $155,457 $243,243 
Net earnings per share:  
Basic$1.10 $1.47 $2.82 $4.37 
Diluted$1.10 $1.47 $2.82 $4.37 
Weighted average number of shares  
Basic54,982 55,663 55,104 55,641 
Dilutive common stock equivalents118  48  
Diluted55,100 55,663 55,152 55,641 
Comprehensive income$82,887 $55,915 $133,201 $191,876 
 



















See accompanying notes
2


THE MIDDLEBY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(amounts in thousands)
(Unaudited)
Common
Stock
Paid-in
Capital
Treasury
Stock
Retained
Earnings
Accumulated
Other
Comprehensive
Income/(loss)
Total
Stockholders'
Equity
Balance, June 27, 2020$145 $406,640 $(528,111)$2,456,403 $(395,560)$1,939,517 
Net earnings   60,516  60,516 
Currency translation adjustments    25,851 25,851 
Change in unrecognized pension benefit costs, net of tax of $(1,283)
    (6,133)(6,133)
Unrealized gain on interest rate swap, net of tax of $960
    2,653 2,653 
Stock compensation 5,300    5,300 
Stock issuance1 3,705    3,706 
Purchase of treasury stock  (395)  (395)
Equity component of issuance of convertible notes 307    307 
Balance, September 26, 2020$146 $415,952 $(528,506)$2,516,919 $(373,189)$2,031,322 
Balance, December 28, 2019$145 $387,402 $(451,262)$2,361,462 $(350,933)$1,946,814 
Net earnings   155,457  155,457 
Currency translation adjustments    (3,213)(3,213)
Change in unrecognized pension benefit costs, net of tax of $1,308
    6,184 6,184 
Unrealized (loss) on interest rate swap, net of tax of $(9,303)
    (25,227)(25,227)
Stock compensation 14,422    14,422 
Stock issuance1 13,821    13,822 
Purchase of treasury stock  (77,244)  (77,244)
Equity component of issuance of convertible notes 307    307 
Balance, September 26, 2020$146 $415,952 $(528,506)$2,516,919 $(373,189)$2,031,322 























See accompanying notes
3


THE MIDDLEBY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(amounts in thousands)
(Unaudited)
Common
Stock
Paid-in
Capital
Treasury
Stock
Retained
Earnings
Accumulated
Other
Comprehensive
Income/(loss)
Total
Stockholders'
Equity
Balance, June 29, 2019$145 $380,603 $(451,204)$2,170,445 $(301,738)$1,798,251 
Net earnings   82,020  82,020 
Currency translation adjustments    (25,428)(25,428)
Change in unrecognized pension benefit costs, net of tax of $1,026
    4,975 4,975 
Unrealized (loss) on interest rate swap, net of tax of $(1,867)
    (5,652)(5,652)
Stock compensation 1,923    1,923 
Purchase of treasury stock  (58)  (58)
Balance, September 28, 2019$145 $382,526 $(451,262)$2,252,465 $(327,843)$1,856,031 
Balance, December 29, 2018$145 $377,419 $(445,118)$2,009,233 $(276,476)$1,665,203 
Net earnings   243,243  243,243 
Adoption of ASU 2017-12 (1)   (11)11  
Currency translation adjustments    (27,190)(27,190)
Change in unrecognized pension benefit costs, net of tax of $955
    4,966 4,966 
Unrealized (loss) on interest rate swap, net of tax of $(9,890)
    (29,154)(29,154)
Stock compensation 3,257    3,257 
Stock issuance 1,850    1,850 
Purchase of treasury stock  (6,144)  (6,144)
Balance, September 28, 2019$145 $382,526 $(451,262)$2,252,465 $(327,843)$1,856,031 

    (1) As of December 30, 2018, the company adopted ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" using the modified retrospective method. The adoption of this guidance resulted in the recognition of less than $0.1 million as an adjustment to the opening balance of retained earnings.

















See accompanying notes
4


THE MIDDLEBY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
 Nine Months Ended
 Sep 26, 2020Sep 28, 2019
Cash flows from operating activities--  
Net earnings$155,457 $243,243 
Adjustments to reconcile net earnings to net cash provided by operating activities--  
Depreciation and amortization81,594 77,272 
Amortization of discount and issuance costs on convertible notes2,130  
Non-cash share-based compensation14,422 3,257 
Deferred income taxes11,696 9,931 
Net periodic pension benefit (other than service costs)(30,004)(22,233)
Changes in assets and liabilities, net of acquisitions  
Accounts receivable, net69,176 (1,116)
Inventories, net43,188 (65,864)
Prepaid expenses and other assets16,576 1,903 
Accounts payable(28,171)(17,659)
Accrued expenses and other liabilities(19,882)1,010 
Net cash provided by operating activities316,182 229,744 
Cash flows from investing activities--  
Net additions to property, plant and equipment(29,776)(33,819)
Proceeds on sale of property, plant and equipment9,381  
Acquisitions, net of cash acquired(33,144)(238,974)
Net cash used in investing activities(53,539)(272,793)
Cash flows from financing activities--  
Proceeds under Credit Facility2,547,305 444,451 
Repayments under Credit Facility(3,217,507)(375,188)
Proceeds from issuance of convertible notes, net of issuance costs729,933  
Premiums paid for capped call(104,650) 
Net proceeds under international credit facilities2,033 319 
Net repayments under other debt arrangement(34)(175)
Payments of deferred purchase price(3,700)(1,648)
Repurchase of treasury stock(77,244)(6,144)
Debt issuance costs on Credit Facility(10,974) 
Net cash (used in) provided by financing activities(134,838)61,615 
Effect of exchange rates on cash and cash equivalents(1,995)(3,086)
Changes in cash and cash equivalents--  
Net increase in cash and cash equivalents125,810 15,480 
Cash and cash equivalents at beginning of year94,500 71,701 
Cash and cash equivalents at end of period$220,310 $87,181 
Non-cash investing and financing activities:
Stock issuance related to acquisition$3,706 $ 
 

See accompanying notes
5


THE MIDDLEBY CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 26, 2020
(Unaudited)
1)Summary of Significant Accounting Policies
a)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 2019 Form 10-K. The company’s interim results are not necessarily indicative of future full year results for the fiscal year 2020. 
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 September 26, 2020 and December 28, 2019, the results of operations for the three and nine months ended September 26, 2020 and September 28, 2019, cash flows for the nine months ended September 26, 2020 and September 28, 2019 and statement of stockholders' equity for the three and nine months ended September 26, 2020 and September 28, 2019.
Certain prior year amounts have been reclassified to be consistent with current year presentation, including classifying the non-operating components of pension benefit as an individual adjustment within the operating activities on the Consolidated Statements of Cash Flows. Previously the amounts were reported as changes in accrued expenses and other liabilities.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses. Significant estimates and assumptions are used for, but are not limited to, allowances for doubtful accounts, reserves for excess and obsolete inventories, long-lived and intangible assets, warranty reserves, insurance reserves, income tax reserves, non-cash share-based compensation and post-retirement obligations. Actual results could differ from the company's estimates.
b)Non-Cash Share-Based Compensation
The 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. Non-cash share-based compensation expense was $5.3 million and $2.0 million for the three months period ended September 26, 2020 and September 28, 2019, respectively. Non-cash share-based compensation expense was $14.4 million and $3.3 million for the nine months period ended September 26, 2020 and September 28, 2019, respectively.
c)Income Taxes
A tax provision of $18.2 million, at an effective rate of 23.1% was recorded during the three months period ended September 26, 2020, as compared to a $24.2 million tax provision at an effective rate of 22.8% in the prior year period. A tax provision of $46.5 million, at an effective rate of 23.0%, was recorded during the nine months period ended September 26, 2020, as compared to a $78.2 million tax provision at a 24.3% effective rate in the prior year period. The effective tax rates in 2020 and 2019 are higher than the federal tax rate of 21% primarily due to state taxes. The effective tax rate for the nine months period ended September 26, 2020 is lower than the comparable prior year rate primarily due to a reduction in non-deductible costs.



6



d)Fair Value Measures 
Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into the following levels:
Level 1 – Quoted prices in active markets for identical assets or liabilities.
Level 2 – Inputs, other than quoted prices in active markets, that are observable either directly or indirectly.
Level 3 – Unobservable inputs based the company's own assumptions.
The company’s financial assets and liabilities that are measured at fair value and are categorized using the fair value hierarchy are as follows (in thousands):
Fair Value
Level 1
Fair Value
Level 2
Fair Value
Level 3
Total
As of September 26, 2020
Financial Liabilities:
    Interest rate swaps$ $57,820 $ $57,820 
    Contingent consideration$ $ $10,542 $10,542 
    Foreign exchange derivative contracts 171  $171 
As of December 28, 2019
Financial Assets:
    Interest rate swaps$ $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 
The contingent consideration as of September 26, 2020 and December 28, 2019, relates to the earnout provisions recorded in conjunction with various purchase agreements. The earnout provisions associated with these acquisitions are based upon performance measurements related to sales and earnings, as defined in the respective purchase agreement. On a quarterly basis, the company assesses the projected results for each acquired business in comparison to the earnout targets and adjusts the liability accordingly.
e)    Consolidated Statements of Cash Flows
Cash paid for interest was $51.1 million and $61.7 million for the nine months ended September 26, 2020 and September 28, 2019, respectively. Cash payments totaling $28.0 million and $65.7 million were made for income taxes for the nine months ended September 26, 2020 and September 28, 2019, respectively.
7


f)    Earnings Per Share
“Basic earnings per share” is calculated based upon the weighted average number of common shares actually outstanding, and “diluted earnings per share” is calculated based upon the weighted average number of common shares outstanding and other dilutive securities.
The company’s potentially dilutive securities consist of shares issuable on vesting of restricted stock grants computed using the treasury method and amounted to 118,000 and 48,000, for the three and nine months periods ended September 26, 2020, respectively. There were no potentially dilutive securities for the three and nine months periods ended September 28, 2019. For the three and nine months periods ended September 26, 2020, as the average market price of the company's common stock has not exceeded the exercise price the Convertible Notes and there have been no conversions to date, there is no impact to the diluted earnings per share. See Note 12, Financing Arrangements, in these Notes to the Condensed Consolidated Financial Statements included in this Part I, Item 1 of this Quarterly Report on Form 10-Q for further details on the Convertible Notes. There were no anti-dilutive restricted stock grants excluded from common stock equivalents in any period presented.
8


2)    Acquisitions and Purchase Accounting
The company operates in a highly fragmented industry and has completed numerous acquisitions over the past several years as a component of its growth strategy. The company has acquired industry leading brands and technologies to position itself as a leader in the commercial foodservice equipment, food processing equipment and residential kitchen equipment industries.
 
The company has accounted for all business combinations using the acquisition method to record a new cost basis for the assets acquired and liabilities assumed. The difference between the purchase price and the fair value of the assets acquired and liabilities assumed has been recorded as goodwill in the financial statements. The company also recognizes identifiable intangible assets, primarily trade names and customer relationships, at their fair value using a discounted cash flow model. The significant assumptions used to estimate the value of the intangible assets include revenue growth rates, projected profit margins, discount rates, royalty rates, and customer attrition rates. These significant assumptions are forward-looking and could be affected by future economic and market conditions. The results of operations are reflected in the consolidated financial statements of the company from the dates of acquisition.

The following represents the company's significant acquisitions in 2020 and 2019 as well as summarized information on various acquisitions that were not individually material. The company also made smaller acquisitions not presented below which are individually and collectively immaterial.
Cooking Solutions Group
On April 1, 2019, the company completed its acquisition of all of the capital stock of Cooking Solutions Group, Inc. ("Cooking Solutions Group") from Standex International Corporation, which consists of the brands APW Wyott, Bakers Pride, BKI and Ultrafryer with locations in Texas, South Carolina and Mexico for a purchase price of approximately $106.1 million, net of cash acquired. During the third quarter of 2019, the company finalized the working capital provision provided for by the purchase agreement resulting in a payment due to the sellers of $0.1 million.
The final allocation of consideration paid for the Cooking Solutions Group acquisition is summarized as follows (in thousands):
(as initially
reported)
April 1, 2019
Measurement
Period
Adjustments
(as adjusted)
April 1, 2019
Cash$843 $ $843 
Current assets33,666 (1,625)32,041 
Property, plant and equipment15,959 (58)15,901 
Goodwill31,207 6,330 37,537 
Other intangibles53,450 (5,850)47,600 
Other assets 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 (1,163)(1,163)
Net assets acquired and liabilities assumed$106,913 $74 $106,987 
The long-term deferred tax liability amounted to $10.5 million. The net deferred tax liability is comprised of $11.6 million of deferred tax liability related to the difference between the book and tax basis on identifiable intangible asset and liability accounts and $1.1 million of deferred tax asset related to the difference between the book and tax basis on identifiable tangible assets and liability accounts.
The goodwill and $24.7 million of other intangibles associated with the trade name are subject to the non-amortization provisions of ASC 350. Other intangibles also include $22.5 million allocated to customer relationships and $0.4 million allocated to backlog, which are being amortized over periods of 9 years and 3 months, respectively. Goodwill and other intangibles of Cooking Solutions Group are allocated to the Commercial Foodservice Equipment Group for segment reporting purposes. These assets are not expected to be deductible for tax purposes.
9


Other 2019 Acquisitions
During 2019, the company completed various other acquisitions that were not individually material. The estimated fair values of assets acquired and liabilities assumed are based on the information that was available as of the acquisition dates for the other 2019 acquisitions and are summarized as follows (in thousands):
Preliminary Opening Balance SheetPreliminary Measurement
Period
Adjustments
Adjusted Opening Balance Sheet
Cash$2,683 $(10)$2,673 
Current assets21,525 1,016 22,541 
Property, plant and equipment8,920 (166)8,754 
Goodwill99,838 (11,213)88,625 
Other intangibles64,019 11,363 75,382 
Long-term deferred tax asset1,288 1,428 2,716 
Other assets137 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 payments2,404  2,404 
Contingent consideration4,258 3,600 7,858 
Net assets acquired and liabilities assumed$178,465 $2,395 $180,860 
The long-term deferred tax asset amounted to $2.7 million. The net deferred tax asset is comprised of $2.9 million of deferred tax asset related to tax loss carryforwards, $1.0 million of deferred tax liability related to the difference between the book and tax basis of identifiable intangible assets and $0.8 million of deferred tax asset related to the difference between the book and tax basis on identifiable tangible asset and liability accounts.
The goodwill and $33.8 million of other intangibles associated with the trade names are subject to the non-amortization provisions of ASC 350. Other intangibles also include $27.9 million allocated to customer relationships, $12.3 million allocated to developed technology and $1.4 million allocated to backlog, which are being amortized over periods of 5 to 10 years, 5 to 12 years, and 3 months, respectively. Goodwill of $42.6 million and other intangibles of $35.5 million of the companies are allocated to the Commercial Foodservice Equipment Group for segment reporting purposes. Goodwill of $34.9 million and other intangibles of $30.1 million are allocated to the Food Processing Equipment Group for segment reporting purposes. Goodwill of $11.2 million and other intangibles of $9.8 million are allocated to the Residential Kitchen Equipment Group for segment reporting purposes. Of these assets, goodwill of $77.8 million and intangibles of $64.8 million are expected to be deductible for tax purposes.
Two purchase agreements include deferred payments and earnout provisions providing for contingent payments due to the sellers to the extent certain financial targets are exceeded. The deferred payments are payable between 2020 and 2022. The contractual obligations associated with the deferred payments on the acquisition dates amount to $2.4 million. The earnouts are payable between 2021 and 2030, if the companies exceed certain sales and earnings targets. The contractual obligations associated with the contingent earnout provisions recognized on the acquisition dates amount to $7.9 million.
The company believes that information gathered to date provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, but the company is waiting for additional information necessary to finalize those fair values for various 2019 acquisitions. Thus, the provisional measurements of fair value set forth above are subject to change. The company expects to complete the purchase price allocations during 2020.


10


2020 Acquisitions
As of September 26, 2020, the company has completed various acquisitions that were not individually material. The following estimated fair values of assets acquired and liabilities assumed are based on the information that was available as of the acquisition dates for the acquisitions and are summarized as follows (in thousands):
Preliminary Opening Balance SheetPreliminary Measurement
Period
Adjustments
Adjusted Opening Balance Sheet
Cash$2,347 $ $2,347 
Current assets31,089 (12,908)18,181 
Property, plant and equipment1,032 (241)791 
Goodwill12,776 672 13,448 
Other intangibles16,484  16,484 
Other assets1,708  1,708 
Current liabilities(30,005)12,477 (17,528)
Other non-current liabilities(3,070) (3,070)
Consideration paid at closing$32,361 $ $32,361 
Deferred payments1,250  1,250 
Contingent consideration1,774  1,774 
Net assets acquired and liabilities assumed$35,385 $ $35,385 
The goodwill and $9.0 million of other intangibles associated with the trade names are subject to the non-amortization provisions of ASC 350. Other intangibles also include $5.3 million allocated to customer relationships, $0.2 million allocated to developed technology and $2.0 million allocated to backlog, which are being amortized over periods of 7 years, 7 years, and 9 months, respectively. Goodwill of $13.4 million and other intangibles of $16.5 million of the companies are allocated to the Commercial Foodservice Equipment Group for segment reporting purposes and are expected to be deductible for tax purposes.
One purchase agreement includes a deferred payment and earnout provision providing for contingent payments due to the sellers to the extent certain financial targets are exceeded. The deferred payment is payable during 2020. The contractual obligation associated with the deferred payments on the acquisition date is $1.3 million. The earnout is payable in 2023, if the company exceeds certain sales and earnings targets. The contractual obligation associated with the contingent earnout provision recognized on the acquisition date is $1.8 million.
The company believes that information gathered to date provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, but the company is waiting for additional information necessary to finalize those fair values for substantially all 2020 acquisitions to date. Thus, the provisional measurements of fair value set forth above are subject to change. The company expects to complete the purchase price allocation as soon as practicable but no later than one year from the acquisition date.
11


Pro Forma Financial Information
 
In accordance with ASC 805 Business Combinations, the following unaudited pro forma results of operations for the nine months ended September 26, 2020 and September 28, 2019, assumes the 2019 and 2020 acquisitions described above were completed on December 30, 2018 (first day of fiscal year 2019). The following pro forma results include adjustments to reflect amortization of intangibles associated with the acquisition and the effects of adjustments made to the carrying value of certain assets (in thousands, except per share data): 
Nine Months Ended
 September 26, 2020September 28, 2019
Net sales$1,786,481 $2,262,959 
Net earnings158,115 231,068 
Net earnings per share:  
Basic$