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Acquisition and Purchase Accounting | 12 Months Ended
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Dec. 30, 2023
Business Combination and Asset Acquisition [Abstract] |
Acquisition and Purchase Accounting [Text Block] | ACQUISITIONS AND PURCHASE ACCOUNTING The following represents the company's significant acquisitions in 2023 and 2022, the termination of a Merger Agreement, as well as summarized information on various acquisitions that were not individually material. Termination of Welbilt Merger On April 20, 2021, Middleby entered into a Merger Agreement with Welbilt, Inc. Following Welbilt's receipt of an alternative acquisition proposal, on July 13, 2021, Middleby announced that, under the terms of the Merger Agreement, it would not exercise its right to propose any modifications to the terms of the Merger Agreement and would allow the match period to expire. Accordingly, on July 14, 2021, Welbilt delivered to Middleby a written notice terminating the Merger Agreement and, concurrently with Middleby’s receipt of the termination fee of $110.0 million in cash from Welbilt, the Merger Agreement was terminated on July 14, 2021. The termination fee received is reflected in the Consolidated Statements of Comprehensive Earnings as the "merger termination fee" and $19.7 million of deal costs associated with the transaction are reflected in selling, general and administrative expenses in the Consolidated Statements of Comprehensive Earnings. 2022 Acquisitions During 2022, the company completed various acquisitions that were not individually material. The final allocation of consideration paid for the other 2022 acquisitions is summarized as follows (in thousands):
| Preliminary Opening Balance Sheet |  | Measurement Period Adjustments |  | Adjusted Opening Balance Sheet
Cash | $ | 25,860 |  |  | $ | 159 |  |  | $ | 26,019 |
Current assets | 115,264 |  |  | (8,911) |  |  | 106,353 |
Property, plant and equipment | 44,598 |  |  | 615 |  |  | 45,213 |
Goodwill | 139,633 |  |  | 11,358 |  |  | 150,991 |
Other intangibles | 93,147 |  |  | 7,018 |  |  | 100,165 |
Long-term deferred tax asset | 426 |  |  | 635 |  |  | 1,061 |
Other assets | 1,420 |  |  | 3,414 |  |  | 4,834 |
Current portion of long-term debt | (22,841) |  |  | 2,043 |  |  | (20,798) |
Current liabilities | (57,158) |  |  | (4,029) |  |  | (61,187) |
Long term debt | (5,646) |  |  | (3,995) |  |  | (9,641) |
Long-term deferred tax liability | (23,137) |  |  | 2,049 |  |  | (21,088) |
Other non-current liabilities | (19,061) |  |  | (8,019) |  |  | (27,080) |
Consideration paid at closing | $ | 292,505 |  |  | $ | 2,337 |  |  | $ | 294,842 |
Deferred payments | — |  |  | 1,970 |  |  | 1,970 |
Contingent consideration | 19,105 |  |  | 3,969 |  |  | 23,074 |
Net assets acquired and liabilities assumed | $ | 311,610 |  |  | $ | 8,276 |  |  | $ | 319,886 |
The net long-term deferred tax liability amounted to $20.0 million. The net deferred tax liability is comprised of $20.8 million related to the difference between the book and tax basis of identifiable intangible assets and $0.8 million net deferred tax asset related to the difference between the book and tax basis on identifiable tangible asset and liability accounts. The goodwill and $46.0 million of other intangibles associated with the trade names are subject to the non-amortization provisions of ASC 350. Other intangibles also include $31.5 million allocated to customer relationships, $16.0 million allocated to developed technology, and $6.7 million allocated to backlog, which are being amortized over periods of 7 to 9 years, 5 to 11 years, and 3 to 12 months, respectively. Goodwill of $113.8 million and other intangibles of $63.8 million are allocated to the Food Processing Equipment Group for segment reporting purposes. Goodwill of $34.9 million and other intangibles of $35.6 million are allocated to the Commercial Foodservice Equipment Group for segment reporting purposes. Goodwill of $2.3 million and other intangibles of $0.8 million are allocated to the Residential Kitchen Equipment Group for segment reporting purposes. Of these assets, goodwill of $21.5 million and intangibles of $11.9 million are expected to be deductible for tax purposes. Several purchase agreements include deferred payment and earnout provisions providing for a contingent payment due to the sellers for the achievement of certain targets. The deferred payments are payable between 2023 and 2024. The contractual obligations associated with the deferred payments on the acquisition date amounts to $2.0 million.Three earnouts are payable to the extent certain EBITDA targets are met with measurement dates ending between 2022 and 2025. One of these three earnouts is also payable yearly through 2027 based on product sales. One earnout is payable yearly through 2028 based on product sales. The contractual obligation associated with the contingent earnout provisions recognized on the acquisition date amount to $23.1 million. 2023 Acquisitions During 2023, the company 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 other 2023 acquisitions and are summarized as follows (in thousands):
| Preliminary Opening Balance Sheet |  | Preliminary Measurement Period Adjustments |  | Adjusted Opening Balance Sheet
Cash | $ | 3,102 |  |  | $ | — |  |  | $ | 3,102 |
Current assets | 9,964 |  |  | 188 |  |  | 10,152 |
Property, plant and equipment | 21,954 |  |  | (39) |  |  | 21,915 |
Goodwill | 38,422 |  |  | 2,726 |  |  | 41,148 |
Other intangibles | 34,337 |  |  | (722) |  |  | 33,615 |
Other assets | — |  |  | 5 |  |  | 5 |
Current liabilities | (3,774) |  |  | (1,147) |  |  | (4,921) |
Long-term deferred tax liability | (958) |  |  | 16 |  |  | (942) |
Other non-current liabilities | (12,099) |  |  | (216) |  |  | (12,315) |
Consideration paid at closing | $ | 90,948 |  |  | $ | 811 |  |  | $ | 91,759 |
Contingent consideration | 14,743 |  |  | 216 |  |  | 14,959 |
Net assets acquired and liabilities assumed | $ | 105,691 |  |  | $ | 1,027 |  |  | $ | 106,718 |
The net long-term deferred tax liability amounted to $0.9 million. The net deferred tax liability is comprised of $0.3 million related to the difference between the book and tax basis of identifiable intangible assets and $0.6 million related to the difference between the book and tax basis on identifiable tangible asset and liability accounts. The goodwill and $17.9 million of other intangibles associated with the trade names are subject to the non-amortization provisions of ASC 350. Other intangibles also include $7.2 million allocated to customer relationships, $7.9 million allocated to developed technology, and $0.6 million allocated to backlog, which are being amortized over periods of 7 years, 7 to 12 years, and 9 months, respectively. Goodwill of $17.9 million and other intangibles of $7.8 million are allocated to the Food Processing Equipment Group for segment reporting purposes. Goodwill of $9.6 million and other intangibles of $14.1 million are allocated to the Commercial Foodservice Equipment Group for segment reporting purposes. Goodwill of $13.6 million and other intangibles of $11.7 million are allocated to the Residential Kitchen Equipment Group for segment reporting purposes. Of these assets, goodwill of $39.5 million and intangibles of $32.2 million are expected to be deductible for tax purposes. Four purchase agreements include earnout provisions providing for a contingent payment due to the sellers for the achievement of certain targets. Four earnouts are payable to the extent certain sales and EBITDA targets are met with measurement dates ending between 2024 and 2026. One earnout is payable upon the achievement of certain product rollout targets specific to the year of measurement. The contractual obligation associated with the contingent earnout provisions recognized on the acquisition date amount to $15.0 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 all acquisitions completed during 2023. Certain intangible assets are preliminarily valued using historical information from the Commercial Foodservice Equipment Group, Food Processing Equipment Group, and Residential Kitchen Equipment Group and qualitative assessments of the individual businesses at acquisition date. Specifically, the company estimated the fair values of the intangible assets based on the percentage of purchase price assigned to similar intangible assets in previous acquisitions. Thus, the provisional measurements of fair values 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. Pro Forma Financial Information In accordance with ASC 805 Business Combinations, the following unaudited pro forma results of operations for the twelve months ended December 30, 2023 and December 31, 2022, assumes the 2022 and 2023 acquisitions described above were completed on January 2, 2022 (first day of fiscal year 2022). The following pro forma results include adjustments to reflect amortization of intangibles associated with the acquisitions and the effects of adjustments made to the carrying value of certain assets (in thousands, except per share data):
| Twelve Months Ended
| December 30, 2023 |  | December 31, 2022
Net sales | $ | 4,046,332 |  |  | $ | 4,160,826 |
Net earnings | 403,484 |  |  | 426,167 |
Net earnings per share: |  |  |
Basic | $ | 7.53 |  |  | $ | 7.88 |
Diluted | $ | 7.46 |  |  | $ | 7.76 |
The historical consolidated financial information of the company and the acquisitions have been adjusted in the pro forma information to give effect to pro forma events that are (1) directly attributable to the transactions, (2) factually supportable and (3) expected to have a continuing impact on the combined results. Pro forma data may not be indicative of the results that would have been obtained had these acquisitions occurred at the beginning of the periods presented, nor is it intended to be a projection of future results. Additionally, the pro forma financial information does not reflect the costs which the company has incurred or may incur to integrate the acquired businesses.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//805/tableOfContent + Details
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