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Employee Retirement Plans | 12 Months Ended
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Jan. 03, 2015
Compensation and Retirement Disclosure [Abstract] |
Employee Retirement Plans | EMPLOYEE RETIREMENT PLANS (a)Pension Plans The company maintains a non-contributory defined benefit plan for its union employees at the Elgin, Illinois facility. Benefits are determined based upon retirement age and years of service with the company. This defined benefit plan was frozen on April 30, 2002, and no further benefits accrue to the participants beyond this date. Plan participants will receive or continue to receive payments for benefits earned on or prior to April 30, 2002 upon reaching retirement age. The company maintains a non-contributory defined benefit plan for its employees at the Smithville, Tennessee facility, which was acquired as part of the Star acquisition. Benefits are determined based upon retirement age and years of service with the company. This defined benefit plan was frozen on April 1, 2008, and no further benefits accrue to the participants beyond this date. Plan participants will receive or continue to receive payments for benefits earned on or prior to April 1, 2008 upon reaching retirement age. The company maintains a defined benefit plan for its employees at the Wrexham, the United Kingdom facility, which was acquired as part of the Lincat acquisition. Benefits are determined based upon retirement age and years of service with the company. This defined benefit plan was frozen on April 30, 2010 prior to Middleby’s acquisition of the company. No further benefits accrue to the participants beyond this date. Plan participants will receive or continue to receive payments for benefits earned on or prior to April 30, 2010 upon reaching retirement age. The company also maintains a retirement benefit agreement with its Chairman ("Chairman Plan"). The retirement benefits are based upon a percentage of the Chairman’s final base salary. A summary of the plans’ net periodic pension cost, benefit obligations, funded status, and net balance sheet position is as follows (dollars in thousands): Fiscal Year 2014
| Elgin Plan |  | Smithville Plan |  | Wrexham Plan |  | Chairman Plan
Net Periodic Pension Cost: |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 447 |
Interest cost | 183 |  |  | 690 |  |  | 639 |  |  | 416 |
Expected return on assets | (215 | ) |  | (584 | ) |  | (996 | ) |  | — |
Amortization of net loss (gain) | 64 |  |  | 303 |  |  | — |  |  | (413 | )
Pension settlement | — |  |  | — |  |  | — |  |  | — |
| $ | 32 |  |  | $ | 409 |  |  | $ | (357 | ) |  | $ | 450 |
Change in Benefit Obligation: |  |  |  |  |  |  |  |  |  |  |
Benefit obligation – beginning of year | $ | 4,134 |  |  | $ | 14,799 |  |  | $ | 15,745 |  |  | $ | 8,815 |
Service cost | — |  |  | — |  |  | — |  |  | 447 |
Interest on benefit obligations | 183 |  |  | 690 |  |  | 639 |  |  | 416 |
Actuarial loss | 654 |  |  | 3,780 |  |  | 1,273 |  |  | 859 |
Pension settlement | — |  |  | — |  |  | — |  |  | — |
Net benefit payments | (222 | ) |  | (648 | ) |  | (634 | ) |  | — |
Exchange effect | — |  |  | — |  |  | (909 | ) |  | — |
Benefit obligation – end of year | $ | 4,749 |  |  | $ | 18,621 |  |  | $ | 16,114 |  |  | $ | 10,537 |
Change in Plan Assets: |  |  |  |  |  |  |  |  |  |  |
Plan assets at fair value – beginning of year | $ | 3,722 |  |  | $ | 9,602 |  |  | $ | 15,172 |  |  | $ | — |
Company contributions | — |  |  | 913 |  |  | 511 |  |  | — |
Investment gain | 51 |  |  | 157 |  |  | 1,133 |  |  | — |
Benefit payments and plan expenses | (222 | ) |  | (648 | ) |  | (634 | ) |  | — |
Exchange effect | — |  |  | — |  |  | (876 | ) |  | — |
Plan assets at fair value – end of year | $ | 3,551 |  |  | $ | 10,024 |  |  | $ | 15,306 |  |  | $ | — |
Funded Status: |  |  |  |  |  |  |  |  |  |  |
Unfunded benefit obligation | $ | (1,198 | ) |  | $ | (8,597 | ) |  | $ | (808 | ) |  | $ | (10,537 | )
Amounts recognized in balance sheet at year end: |  |  |  |  |  |  |  |  |  |  |
Other non-current liabilities | $ | (1,198 | ) |  | $ | (8,597 | ) |  | $ | (808 | ) |  | $ | (10,537 | )
Pre-tax components in accumulated other comprehensive income: |  |  |  |  |  |  |  |  |  |  |
Net actuarial loss (gain) | $ | 1,673 |  |  | $ | 8,029 |  |  | $ | 2,188 |  |  | $ | (1,672 | )
Net prior service cost | — |  |  | — |  |  | — |  |  | — |
Net transaction (asset) obligations | — |  |  | — |  |  | — |  |  | — |
Total amount recognized | $ | 1,673 |  |  | $ | 8,029 |  |  | $ | 2,188 |  |  | $ | (1,672 | )
Accumulated Benefit Obligation | $ | 4,749 |  |  | $ | 18,621 |  |  | $ | 16,114 |  |  | $ | 7,197 |
Salary growth rate | n/a |  |  | n/a |  |  | n/a |  |  | 10.0 | %
Assumed discount rate | 3.8 | % |  | 3.8 | % |  | 3.6 | % |  | 3.8 | %
Expected return on assets | 6.0 | % |  | 6.0 | % |  | 6.3 | % |  | n/a |
Fiscal Year 2013
| Elgin Plan |  | Smithville Plan |  | Wrexham Plan |  | Chairman Plan
Net Periodic Pension Cost: |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 929 |
Interest cost | 175 |  |  | 643 |  |  | 635 |  |  | 360 |
Expected return on assets | (209 | ) |  | (529 | ) |  | (819 | ) |  | — |
Amortization of net loss (gain) | 154 |  |  | 519 |  |  | — |  |  | (145 | )
Pension settlement | — |  |  | — |  |  | — |  |  | — |
| $ | 120 |  |  | $ | 633 |  |  | $ | (184 | ) |  | $ | 1,144 |
Change in Benefit Obligation: |  |  |  |  |  |  |  |  |  |  |
Benefit obligation – beginning of year | $ | 4,862 |  |  | $ | 16,070 |  |  | $ | 15,462 |  |  | $ | 8,993 |
Service cost | — |  |  | — |  |  | — |  |  | 929 |
Interest on benefit obligations | 175 |  |  | 643 |  |  | 635 |  |  | 360 |
Actuarial (gain) | (675 | ) |  | (1,282 | ) |  | (7 | ) |  | (1,467 | )
Pension settlement | — |  |  | — |  |  | — |  |  | — |
Net benefit payments | (228 | ) |  | (632 | ) |  | (716 | ) |  | — |
Exchange effect | — |  |  | — |  |  | 371 |  |  | — |
Benefit obligation – end of year | $ | 4,134 |  |  | $ | 14,799 |  |  | $ | 15,745 |  |  | $ | 8,815 |
Change in Plan Assets: |  |  |  |  |  |  |  |  |  |  |
Plan assets at fair value – beginning of year | $ | 3,503 |  |  | $ | 8,781 |  |  | $ | 12,997 |  |  | $ | — |
Company contributions | 128 |  |  | 649 |  |  | 526 |  |  | — |
Investment gain | 319 |  |  | 804 |  |  | 2,054 |  |  | — |
Benefit payments and plan expenses | (228 | ) |  | (632 | ) |  | (716 | ) |  | — |
Exchange effect | — |  |  | — |  |  | 311 |  |  | — |
Plan assets at fair value – end of year | $ | 3,722 |  |  | $ | 9,602 |  |  | $ | 15,172 |  |  | $ | — |
Funded Status: |  |  |  |  |  |  |  |  |  |  |
Unfunded benefit obligation | $ | (412 | ) |  | $ | (5,197 | ) |  | $ | (573 | ) |  | $ | (8,815 | )
Amounts recognized in balance sheet at year end: |  |  |  |  |  |  |  |  |  |  |
Other non-current liabilities | $ | (412 | ) |  | $ | (5,197 | ) |  | $ | (573 | ) |  | $ | (8,815 | )
Pre-tax components in accumulated other comprehensive income: |  |  |  |  |  |  |  |  |  |  |
Net actuarial loss (gain) | $ | 918 |  |  | $ | 4,125 |  |  | $ | 1,116 |  |  | $ | (2,944 | )
Net prior service cost | — |  |  | — |  |  | — |  |  | — |
Net transaction (asset) obligations | — |  |  | — |  |  | — |  |  | — |
Total amount recognized | $ | 918 |  |  | $ | 4,125 |  |  | $ | 1,116 |  |  | $ | (2,944 | )
Accumulated Benefit Obligation | $ | 4,134 |  |  | $ | 14,799 |  |  | $ | 15,745 |  |  | $ | 5,473 |
Salary growth rate | n/a |  |  | n/a |  |  | n/a |  |  | 10.0 | %
Assumed discount rate | 4.7 | % |  | 4.7 | % |  | 4.4 | % |  | 4.7 | %
Expected return on assets | 6.0 | % |  | 6.0 | % |  | 7.0 | % |  | n/a |
The company has engaged non-affiliated third party professional investment advisors to assist the company to develop its investment policy and establish asset allocations. The company's overall investment objective is to provide a return, that along with company contributions, is expected to meet future benefit payments. Investment policy is established in consideration of anticipated future timing of benefit payments under the plans. The anticipated duration of the investment and the potential for investment losses during that period are carefully weighed against the potential for appreciation when making investment decisions. The company routinely monitors the performance of investments made under the plans and reviews investment policy in consideration of changes made to the plans or expected changes in the timing of future benefit payments. The assets of the plans were invested in the following classes of securities (none of which were securities of the company): Elgin Plan
| Target Allocation |  |  | Percentage of Plan Assets |
|  |  | 2014 |  |  | 2013 |
Equity | 48 | % |  | 48 | % |  | 56 | %
Fixed income | 40 |  |  | 36 |  |  | 32 |
Money market | 4 |  |  | 4 |  |  | 2 |
Other (real estate investment trusts & commodities contracts) | 8 |  |  | 12 |  |  | 10 |
| 100 | % |  | 100 | % |  | 100 | %
Smithville Plan
| Target Allocation |  |  | Percentage of Plan Assets
|  |  | 2014 |  |  | 2013 |
Equity | 48 | % |  | 48 | % |  | 54 | %
Fixed income | 40 |  |  | 36 |  |  | 32 |
Money market | 4 |  |  | 4 |  |  | 4 |
Other (real estate investment trusts & commodities contracts) | 8 |  |  | 12 |  |  | 10 |
| 100 | % |  | 100 | % |  | 100 | %
Wrexham Plan
| Target Allocation |  |  | Percentage of Plan Assets
|  |  | 2014 |  |  | 2013 |
Equity | 50 | % |  | 72 | % |  | 76 | %
Fixed income | 50 |  |  | 24 |  |  | 23 |
Money market | — |  |  | 4 |  |  | 1 |
Other (real estate investment trusts & commodities contracts) | — |  |  | — |  |  | — |
| 100 | % |  | 100 | % |  | 100 | %
In accordance with ASC 820 “Fair Value Measurements and Disclosures”, the company has measured its defined benefit pension plans at fair value. The following tables summarize the basis used to measure the pension plans’ assets at fair value as of January 3, 2015 (in thousands): Elgin Plan
Asset Category |  | Total |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Short Term Investment Fund (a) |  | $ | 121 |  |  | $ | — |  |  | $ | 121 |  |  | $ | — |
Equity Securities: |  |  |  |  |  |  |  |  |  |  |  |
Large Cap |  | 813 |  |  | 813 |  |  | — |  |  | — |
Mid Cap |  | 100 |  |  | 100 |  |  | — |  |  | — |
Small Cap |  | 100 |  |  | 100 |  |  | — |  |  | — |
International |  | 686 |  |  | 686 |  |  | — |  |  | — |
Fixed Income: |  |  |  |  |  |  |  |  |  |  |  |
Government/Corporate |  | 1,074 |  |  | 1,074 |  |  | — |  |  | — |
High Yield |  | 216 |  |  | 216 |  |  | — |  |  | — |
Alternative: |  |  |  |  |  |  |  |  |  |  |  |
Global Real Estate Investment Trust |  | 314 |  |  | 314 |  |  | — |  |  | — |
Commodities Contracts |  | 127 |  |  | 127 |  |  | — |  |  | — |
Total |  | $ | 3,551 |  |  | $ | 3,430 |  |  | $ | 121 |  |  | $ | — |
(a) | Represents collective short term investment fund, composed of high-grade money market instruments with short maturities.
Smithville Plan
Asset Category |  | Total |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Short Term Investment Fund (a) |  | $ | 446 |  |  | $ | — |  |  | $ | 446 |  |  | $ | — |
Equity Securities: |  |  |  |  |  |  |  |  |  |  |  |
Large Cap |  | 2,297 |  |  | 2,297 |  |  | — |  |  | — |
Mid Cap |  | 268 |  |  | 268 |  |  | — |  |  | — |
Small Cap |  | 281 |  |  | 281 |  |  | — |  |  | — |
International |  | 1,923 |  |  | 1,923 |  |  | — |  |  | — |
Fixed Income: |  |  |  |  |  |  |  |  |  |
Government/Corporate |  | 3,058 |  |  | 3,058 |  |  | — |  |  | — |
High Yield |  | 599 |  |  | 599 |  |  | — |  |  | — |
Alternative: |  |  |  |  |  |  |  |  |  |  |  |
Global Real Estate Investment Trust |  | 830 |  |  | 830 |  |  | — |  |  | — |
Commodities Contracts |  | 322 |  |  | 322 |  |  | — |  |  | — |
Total |  | $ | 10,024 |  |  | $ | 9,578 |  |  | $ | 446 |  |  | $ | — |
(a) | Represents collective short term investment fund, composed of high-grade money market instruments with short maturities.
Wrexham Plan
Asset Category |  | Total |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Short Term Investment Fund (a) |  | $ | 667 |  |  | $ | — |  |  | $ | 667 |  |  | $ | — |
Equity Securities: |  |  |  |  |  |  |  |  |  |  |  |
UK |  | 5,109 |  |  | 5,109 |  |  | — |  |  | — |
International |  |  |  |  |  |  |  |  |  |  |  |
Developed |  | 4,827 |  |  | 4,827 |  |  | — |  |  | — |
Emerging |  | 487 |  |  | 487 |  |  | — |  |  | — |
Global |  | 602 |  |  | 602 |  |  | — |  |  | — |
Fixed Income: |  |  |  |  |  |  |  |  |  |
Government/Corporate |  | 2,113 |  |  | 2,113 |  |  | — |  |  | — |
Aggregate |  | 358 |  |  | 358 |  |  | — |  |  | — |
Index Linked |  | 1,143 |  |  | 1,143 |  |  | — |  |  | — |
Total |  | $ | 15,306 |  |  | $ | 14,639 |  |  | $ | 667 |  |  | $ | — |
(a) | Represents collective short term investment fund, composed of high-grade money market instruments with short maturities.
The fair value of the Level 1 assets is based on observable, quoted market prices of the identical underlying security in an active market. The fair value of the Level 2 assets is primarily based on market observable inputs to quoted market prices, benchmark yields and broker/dealer quotes. Level 3 inputs, as applicable, represent unobservable inputs that reflect assumptions developed by management to measure assets at fair value. The expected return on assets is developed in consideration of the anticipated duration of investment period for assets held by the plan, the allocation of assets in the plan, and the historical returns for plan assets. Estimated future benefit payments under the plans are as follows (dollars in thousands):
| Elgin Plan |  |  | Smithville Plan |  |  | Wrexham Plan |  |  | Chairman Plan |
2015 | $ | 282 |  |  | $ | 674 |  |  | $ | 623 |  |  | $ | — |
2016 | 280 |  |  | 693 |  |  | 662 |  |  | — |
2017 | 278 |  |  | 707 |  |  | 701 |  |  | — |
2018 | 278 |  |  | 726 |  |  | 740 |  |  | 733 |
2019 through 2024 | 1,628 |  |  | 4,837 |  |  | 5,300 |  |  | 4,399 |
Contributions to the Chairman plan are based upon actual retirement benefits at the Chairman's retirement. Contributions under the Smithville and Elgin plans are funded in accordance with provisions of The Employee Retirement Income Security Act of 1974. Expected contributions to the Smithville and Wrexham plans to be made in 2015 are $0.8 million and $0.4 million, respectively.
(b) | 401K Savings Plans
As of January 3, 2015, the company maintained two separate defined contribution 401K savings plans covering all employees in the United States. These two plans separately cover the union employees at the Elgin, Illinois facility and all other remaining union and non-union employees in the United States. In conjunction with the freeze on future benefits under the defined benefit plan for union employees at the Elgin, Illinois facility, the company established a 401K savings plan for this group of employees. The company makes contributions to this plan in accordance with its agreement with the union. These contributions amounted to $0.1 million for fiscal 2014 and less than $0.1 million for fiscal 2013 and 2012. There were no other profit sharing contributions to the 401K savings plans for 2014, 2013 and 2012.

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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