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Employee Retirement Plans | 12 Months Ended
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Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract] |
Employee Retirement Plans | EMPLOYEE RETIREMENT PLANS (a)Pension Plans U.S. 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 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 using a weighted average rate of increase in future compensation levels of 10.0%. Non-U.S. Plans: 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 maintains several pension plans related to AGA and its subsidiaries (collectively, the "AGA Group"), the most significant being the Aga Rangemaster Group Pension Scheme, which covers the majority of employees in the United Kingdom. Membership in the plan on a defined benefit basis of pension provision was closed to new entrants in 2001. The plan became open to new entrants on a defined contribution basis of pension provision in 2002, but was generally closed to new entrants on this basis during 2014. The other, much smaller, defined benefit pension plans operating within the AGA Group cover employees in France, Ireland and the United Kingdom. All pension plan assets are held in separate trust funds although the net defined benefit pension obligations are included in the company's consolidated balance sheet. 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 2016 |  | Fiscal 2015
| U.S. Plans |  | Non-U.S. Plans |  | U.S. Plans |  | Non-U.S. Plans
Net Periodic Pension Cost (Benefit): |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | 456 |  |  | $ | 3,364 |  |  | $ | 505 |  |  | $ | 1,216 |
Interest cost | 1,280 |  |  | 41,606 |  |  | 1,254 |  |  | 12,992 |
Expected return on assets | (777 | ) |  | (68,845 | ) |  | (813 | ) |  | (20,547 | )
Amortization of net loss (gain) | 126 |  |  | 35 |  |  | 694 |  |  | — |
Curtailment (gain) loss | — |  |  | (632 | ) |  | — |  |  | 3,202 |
Pension settlement | — |  |  | — |  |  | — |  |  | — |
| $ | 1,085 |  |  | $ | (24,472 | ) |  | $ | 1,640 |  |  | $ | (3,137 | )
Change in Benefit Obligation: |  |  |  |  |  |  |  |  |  |  |
Benefit obligation – beginning of year | $ | 31,830 |  |  | $ | 1,476,370 |  |  | $ | 33,907 |  |  | $ | 16,114 |
Benefit obligation – acquisition | — |  |  | — |  |  | — |  |  | 1,495,089 |
Service cost | 456 |  |  | 3,364 |  |  | 505 |  |  | 1,216 |
Interest on benefit obligations | 1,280 |  |  | 41,606 |  |  | 1,254 |  |  | 12,992 |
Employee contributions | — |  |  | 404 |  |  | — |  |  | 182 |
Actuarial (gain) loss | (722 | ) |  | 297,754 |  |  | (2,969 | ) |  | 8,668 |
Pension settlement | — |  |  | — |  |  | — |  |  | — |
Net benefit payments | (895 | ) |  | (64,466 | ) |  | (867 | ) |  | (24,179 | )
Curtailment (gain) loss | — |  |  | (706 | ) |  | — |  |  | 3,202 |
Exchange effect | — |  |  | (275,833 | ) |  | — |  |  | (36,914 | )
Benefit obligation – end of year | $ | 31,949 |  |  | $ | 1,478,493 |  |  | $ | 31,830 |  |  | $ | 1,476,370 |
Change in Plan Assets: |  |  |  |  |  |  |  |  |  |  |
Plan assets at fair value – beginning of year | $ | 12,987 |  |  | $ | 1,287,723 |  |  | $ | 13,575 |  |  | $ | 15,306 |
Plan assets at fair value – acquisition | — |  |  | — |  |  | — |  |  | 1,305,506 |
Company contributions | 754 |  |  | 17,758 |  |  | 823 |  |  | 16,950 |
Investment gain (loss) | 743 |  |  | 161,405 |  |  | (544 | ) |  | 6,173 |
Employee contributions | — |  |  | 404 |  |  | — |  |  | 182 |
Benefit payments and plan expenses | (895 | ) |  | (64,466 | ) |  | (867 | ) |  | (24,179 | )
Exchange effect | — |  |  | (228,959 | ) |  | — |  |  | (32,215 | )
Plan assets at fair value – end of year | $ | 13,589 |  |  | $ | 1,173,865 |  |  | $ | 12,987 |  |  | $ | 1,287,723 |
Funded Status: |  |  |  |  |  |  |  |  |  |  |
Unfunded benefit obligation | $ | (18,360 | ) |  | $ | (304,628 | ) |  | $ | (18,843 | ) |  | $ | (188,647 | )
Amounts recognized in balance sheet at year end: |  |  |  |  |  |  |  |  |  |  |
Accrued pension benefits | $ | (18,360 | ) |  | $ | (304,628 | ) |  | $ | (18,843 | ) |  | $ | (188,647 | )
Pre-tax components in accumulated other comprehensive income at period end: |  |  |  |  |  |  |  |  |  |  |
Net actuarial loss | $ | 4,908 |  |  | $ | 206,490 |  |  | $ | 5,725 |  |  | $ | 25,141 |
Pre-tax components in recognized in other comprehensive income for the period: |  |  |  |  |  |  |
Current year actuarial (gain) loss | $ | (691 | ) |  | $ | 181,384 |  |  | $ | (1,612 | ) |  | $ | 25,141 |
Actuarial loss recognized | (126 | ) |  | (35 | ) |  | (694 | ) |  | — |
Total amount recognized | $ | (817 | ) |  | $ | 181,349 |  |  | $ | (2,306 | ) |  | $ | 25,141 |
Accumulated Benefit Obligation | $ | 31,041 |  |  | $ | 1,478,435 |  |  | $ | 30,106 |  |  | $ | 1,475,631 |
Salary growth rate | n/a |  |  | 1.6 | % |  | n/a |  |  | 1.5 | %
Assumed discount rate | 3.9 | % |  | 2.5 | % |  | 4.1 | % |  | 3.7 | %
Expected return on assets | 6.0 | % |  | 6.2 | % |  | 6.0 | % |  | 6.2 | %
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): U.S. Plans:
| Target Allocation |  |  | Percentage of Plan Assets |
|  |  | 2016 |  |  | 2015 |
Equity | 48 | % |  | 51 | % |  | 47 | %
Fixed income | 40 |  |  | 39 |  |  | 39 |
Money market | 4 |  |  | 3 |  |  | 5 |
Other (real estate investment trusts & commodities contracts) | 8 |  |  | 7 |  |  | 9 |
| 100 | % |  | 100 | % |  | 100 | %
Non-U.S. Plans:
| Target Allocation |  |  | Percentage of Plan Assets |
|  |  | 2016 |  |  | 2015 |
Equity | 16 | % |  | 20 | % |  | 19 | %
Fixed income | 45 |  |  | 55 |  |  | 44 |
Alternatives/Other | 28 |  |  | 8 |  |  | 20 |
Real Estate | 11 |  |  | 12 |  |  | 12 |
Cash and cash equivalents | — |  |  | 5 |  |  | 5 |
| 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 December 31, 2016 and January 2, 2016 (in thousands): U.S. Plans:
|  | Fiscal 2016 |  | Fiscal 2015
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) |  | $ | 368 |  |  | $ | — |  |  | $ | 368 |  |  | $ | 540 |  |  | $ | — |  |  | $ | 540 |
Equity Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Large Cap |  | 3,055 |  |  | 3,055 |  |  | — |  |  | 3,149 |  |  | 3,149 |  |  | — |
Mid Cap |  | 512 |  |  | 512 |  |  | — |  |  | 383 |  |  | 383 |  |  | — |
Small Cap |  | 455 |  |  | 455 |  |  | — |  |  | 383 |  |  | 383 |  |  | — |
International |  | 2,917 |  |  | 2,917 |  |  | — |  |  | 2,291 |  |  | 2,291 |  |  | — |
Fixed Income: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government/Corporate |  | 4,367 |  |  | 4,367 |  |  | — |  |  | 4,311 |  |  | 4,311 |  |  | — |
High Yield |  | 971 |  |  | 971 |  |  | — |  |  | 778 |  |  | 778 |  |  | — |
Alternative: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Global Real Estate Investment Trust |  | 539 |  |  | 539 |  |  | — |  |  | 771 |  |  | 771 |  |  | — |
Commodities Contracts |  | 405 |  |  | 405 |  |  | — |  |  | 381 |  |  | 381 |  |  | — |
Total |  | $ | 13,589 |  |  | $ | 13,221 |  |  | $ | 368 |  |  | $ | 12,987 |  |  | $ | 12,447 |  |  | $ | 540 |
(a) | Represents collective short term investment fund, composed of high-grade money market instruments with short maturities.
Non-U.S. Plans:
|  | Fiscal 2016
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 |  | $ | 58,131 |  |  | $ | 4,730 |  |  | $ | 2,886 |  |  | $ | — |  |  | $ | 50,515 |
Equity Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
UK |  | 87,828 |  |  | 2,098 |  |  | — |  |  | — |  |  | 85,730 |
International: |  |  |  |  |  |  |  |  |  |
Developed |  | 135,186 |  |  | 3,547 |  |  | — |  |  | — |  |  | 131,639 |
Emerging |  | 6,803 |  |  | 79 |  |  | — |  |  | — |  |  | 6,724 |
Unquoted/Private Equity |  | 3189 |  |  | 0 |  |  | — |  |  | — |  |  | 3,189 |
Fixed Income: |  |  |  |  |  |  |  |  |  |
Government/Corporate: |  |  |  |  |  |  |  |  |  |
UK |  | 317,621 |  |  | 11,203 |  |  | 14,009 |  |  | — |  |  | 292,409 |
International |  | 107,882 |  |  | — |  |  | 103 |  |  | — |  |  | 107,779 |
Index Linked |  | 212,327 |  |  | 4,205 |  |  | — |  |  | — |  |  | 208,122 |
Other |  | 3,812 |  |  | — |  |  | — |  |  | — |  |  | 3,812 |
Convertible Bonds |  | 160 |  |  | — |  |  | — |  |  | — |  |  | 160 |
Real Estate: |  |  |  |  |  |  |  |  |  |
Direct |  | 121,612 |  |  | — |  |  | 121,612 |  |  | — |  |  | — |
Indirect |  | 10,693 |  |  | 138 |  |  | — |  |  | — |  |  | 10,555 |
Hedge Fund Strategy: |  |  |  |  |  |  |  |  |  |
Equity Long/Short |  | 61,612 |  |  | — |  |  | — |  |  | — |  |  | 61,612 |
Arbitrage & Event |  | 64,961 |  |  | — |  |  | — |  |  | — |  |  | 64,961 |
Directional Trading & Fixed Income |  | 30,430 |  |  | — |  |  | — |  |  | — |  |  | 30,430 |
Cash & Other |  | 38,099 |  |  | — |  |  | — |  |  | — |  |  | 38,099 |
Direct Sourcing |  | 1,379 |  |  | — |  |  | — |  |  | — |  |  | 1,379 |
Leveraged Loans |  | 11,025 |  |  | — |  |  | — |  |  | — |  |  | 11,025 |
Alternative/Other |  | (98,885 | ) |  | — |  |  | — |  |  | 95 |  |  | (98,980 | )
Total |  | $ | 1,173,865 |  |  | $ | 26,000 |  |  | $ | 138,610 |  |  | $ | 95 |  |  | $ | 1,009,160 |
|  | Fiscal 2015
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 |  | $ | 73,006 |  |  | $ | 3,937 |  |  | $ | 3,288 |  |  | $ | — |  |  | $ | 65,781 |
Equity Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
UK |  | 91,269 |  |  | 2,565 |  |  | 194 |  |  | — |  |  | 88,510 |
International: |  |  |  |  |  |  |  |  |  |
Developed |  | 147,277 |  |  | 3,294 |  |  | 2,414 |  |  | — |  |  | 141,569 |
Emerging |  | 6,375 |  |  | 77 |  |  | — |  |  | — |  |  | 6,298 |
Unquoted/Private Equity |  | 759 |  |  | — |  |  | — |  |  | — |  |  | 759 |
Fixed Income: |  |  |  |  |  |  |  |  |  |
Government/Corporate: |  |  |  |  |  |  |  |  |  |
UK |  | 168,706 |  |  | 10,816 |  |  | 19,952 |  |  | — |  |  | 137,938 |
International |  | 126,735 |  |  | — |  |  | 1,046 |  |  | — |  |  | 125,689 |
Index Linked |  | 258,502 |  |  | — |  |  | — |  |  | — |  |  | 258,502 |
Other |  | 3,518 |  |  | — |  |  | — |  |  | — |  |  | 3,518 |
Convertible Bonds |  | 1,471 |  |  | — |  |  | — |  |  | — |  |  | 1,471 |
Real Estate: |  |  |  |  |  |  |  |  |  |
Direct |  | 140,765 |  |  | — |  |  | 140,765 |  |  | — |  |  | — |
Indirect |  | 13,617 |  |  | 177 |  |  | — |  |  | — |  |  | 13,440 |
Hedge Fund Strategy: |  |  |  |  |  |  |  |  |  |
Equity Long/Short |  | 80,230 |  |  | — |  |  | — |  |  | — |  |  | 80,230 |
Arbitrage & Event |  | 92,635 |  |  | — |  |  | — |  |  | — |  |  | 92,635 |
Directional Trading & Fixed Income |  | 55,424 |  |  | — |  |  | — |  |  | — |  |  | 55,424 |
Cash & Other |  | 2,557 |  |  | — |  |  | — |  |  | — |  |  | 2,557 |
Direct Sourcing |  | 1,655 |  |  | — |  |  | — |  |  | — |  |  | 1,655 |
Leveraged Loans |  | 10,824 |  |  | — |  |  | — |  |  | — |  |  | 10,824 |
Alternative/Other |  | 12,398 |  |  | 288 |  |  | — |  |  | — |  |  | 12,110 |
Total |  | $ | 1,287,723 |  |  | $ | 21,154 |  |  | $ | 167,659 |  |  | $ | — |  |  | $ | 1,098,910 |
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):
| U.S. Plans |  | Non-U.S. Plans
2017 | $ | 977 |  |  | $ | 54,702 |
2018 | 1,648 |  |  | 56,430 |
2019 | 1,653 |  |  | 57,493 |
2020 | 1,674 |  |  | 59,525 |
2021 through 2026 | 10,634 |  |  | 368,206 |
Expected contributions to the U.S. Plans and Non-U.S. Plans to be made in 2017 are $1.2 million and $3.5 million, respectively.
(b) | Defined Contribution Plans
As of December 31, 2016, 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. The company also maintained defined contribution plans for its UK based employees.

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