10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 29, 2014

or

o 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)  

Delaware	36-3352497
(State or Other Jurisdiction of	(I.R.S. Employer Identification No.)
Incorporation or Organization)

1400 Toastmaster Drive, Elgin, Illinois	60120
(Address of Principal Executive Offices)	(Zip Code)

Registrant's Telephone No., 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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post 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 or a smaller reporting company. See the definitions of “accelerated filer, large accelerated filer and smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x Accelerated filer o Non-accelerated filer o Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of May 2, 2014 there were 19,089,560 shares of the registrant's common stock outstanding.

THE MIDDLEBY CORPORATION AND SUBSIDIARIES

QUARTER ENDED MARCH 29, 2014

INDEX

DESCRIPTION		PAGE
PART I.  FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements (unaudited)
	CONDENSED CONSOLIDATED BALANCE SHEETS MARCH 29, 2014 and DECEMBER 28, 2013	1
	CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME MARCH 29, 2014 and MARCH 30, 2013	2
	CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS MARCH 29, 2014 and MARCH 30, 2013	3
	NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	4
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32
Item 4.	Controls and Procedures	35
PART II. OTHER INFORMATION
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 6.	Exhibits	37

PART I. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

THE MIDDLEBY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share Data)

(Unaudited)

ASSETS	Mar 29, 2014			Dec 28, 2013
Current assets:
Cash and cash equivalents	$	39,050		$	36,894
Accounts receivable, net of reserve for doubtful accounts of $8,117 and $6,987	224,193			205,264
Inventories, net	260,475			220,116
Prepaid expenses and other	32,863			32,322
Prepaid taxes	24,201			801
Current deferred taxes	48,489			50,337
Total current assets	629,271			545,734
Property, plant and equipment, net of accumulated depreciation of $75,893 and $73,329	127,239			125,457
Goodwill	701,844			687,955
Other intangibles, net of amortization of $93,903 and $87,350	445,813			447,944
Long-term deferred tax assets	2,870			1,641
Other assets	8,805			10,475
Total assets	$	1,915,842		$	1,819,206
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt	$	6,900		$	1,408
Accounts payable	100,701			96,518
Accrued expenses	193,242			213,459
Total current liabilities	300,843			311,385
Long-term debt	648,543			570,190
Long-term deferred tax liability	71,706			61,433
Other non-current liabilities	38,477			37,851
Stockholders' equity:
Preferred stock, $0.01 par value; nonvoting; 2,000,000 shares authorized; none issued				—
Common stock, $0.01 par value; 47,500,000 shares authorized; 23,906,472 and 23,786,203 shares issued in 2014 and 2013, respectively	144			144
Paid-in capital	295,212			268,229
Treasury stock, at cost; 4,816,912 and 4,661,701 shares in 2014 and 2013, respectively	(196,026		)	(151,743		)
Retained earnings	763,797			730,352
Accumulated other comprehensive loss	(6,854		)	(8,635		)
Total stockholders' equity	856,273			838,347
Total liabilities and stockholders' equity	$	1,915,842		$	1,819,206

See accompanying notes

1

THE MIDDLEBY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands, Except Per Share Data)

(Unaudited)

	Three Months Ended
	Mar 29, 2014		Mar 30, 2013
Net sales	$	372,478	$	327,451
Cost of sales	229,502		206,183
Gross profit	142,976		121,268
Selling and distribution expenses	46,970		36,152
General and administrative expenses	40,073		42,921
Income from operations	55,933		42,195
Net interest expense and deferred financing amortization, net	3,987		3,434
Other expense, net	865		213
Earnings before income taxes	51,081		38,548
Provision for income taxes	17,636		12,646
Net earnings	$	33,445	$	25,902
Net earnings per share:
Basic	$	1.78	$	1.41
Diluted	$	1.78	$	1.39
Weighted average number of shares
Basic	18,819		18,395
Dilutive common stock equivalents1	1		223
Diluted	18,820		18,618
Comprehensive income	$	35,226	$	21,078

¹ There were no anti-dilutive equity awards excluded from common stock equivalents for any period presented.

See accompanying notes

2

THE MIDDLEBY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

	Three Months Ended
	Mar 29, 2014			Mar 30, 2013
Cash flows from operating activities--
Net earnings	$	33,445		$	25,902
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities--
Depreciation and amortization	10,521			14,023
Non-cash share-based compensation	1,938			2,965
Deferred taxes	12,800			1,115
Unrealized (gain) loss on derivative financial instruments	(31		)	5
Changes in assets and liabilities, net of acquisitions
Accounts receivable, net	(15,786		)	(8,603		)
Inventories, net	(5,638		)	(13,229		)
Prepaid expenses and other assets	(21,873		)	(5,474		)
Accounts payable	(2,415		)	(941		)
Accrued expenses and other liabilities	(26,519		)	(2,232		)
Net cash (used in) provided by operating activities	(13,558		)	13,531
Cash flows from investing activities--
Additions to property and equipment	(3,231		)	(3,923		)
Purchase of trade name	—			(5,000		)
Acquisition of Viking, net of cash acquired	—			(372,836		)
Acquisition of Viking Distributors 2014	(38,485		)	—
Acquisition of Market Forge	(7,240		)	—
Net cash used in investing activities	(48,956		)	(381,759		)
Cash flows from financing activities--
Net proceeds under current revolving credit facilities	78,400			378,500
Net proceeds (repayments) under foreign bank loan	5,463			(47		)
Net repayments under other debt arrangement	(9		)	(5		)
Repurchase of treasury stock	(44,283		)	(1,091		)
Debt issuance costs	—			(11		)
Excess tax benefit related to share-based compensation	25,044			1,089
Net proceeds from stock issuances	—			13
Net cash provided by financing activities	64,615			378,448
Effect of exchange rates on cash and cash equivalents	55			(817		)
Changes in cash and cash equivalents--
Net increase in cash and cash equivalents	2,156			9,403
Cash and cash equivalents at beginning of year	36,894			34,366
Cash and cash equivalents at end of period	$	39,050		$	43,769

See accompanying notes

3

THE MIDDLEBY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 29, 2014

(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. 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 2013 Form 10-K. The company’s interim results are not necessarily indicative of future full year results for the fiscal year 2014. 

In the opinion of management, the financial statements contain all adjustments necessary to present fairly the financial position of the company as of March 29, 2014 and December 28, 2013, and the results of operations for the three months endedMarch 29, 2014 and March 30, 2013 and cash flows for the three months endedMarch 29, 2014 and March 30, 2013.

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 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 $1.9 million and $3.0 million for the first quarter periods ended March 29, 2014 and March 30, 2013, respectively.

During the first quarter ended March 29, 2014, the company issued 120,269 restricted shares under its 2011 Stock Incentive Plan. These amounts are contingent on the attainment of certain performance objectives. The aggregate grant-date fair value of these awards was $31.7 million, based on the closing share price of the company's stock at the date of the grant.

C) Income Taxes

As of December 28, 2013, the total amount of liability for unrecognized tax benefits related to federal, state and foreign taxes was approximately $12.7 million (of which $11.1 million would impact the effective tax rate if recognized) plus approximately $2.0 million of accrued interest and $1.8 million of penalties. The company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. As of March 29, 2014, the company recognized a tax expense of $0.7 million for unrecognized tax benefits related to current year tax exposures.

It is reasonably possible that the amounts of unrecognized tax benefits associated with state, federal and foreign tax positions may decrease over the next twelve months due to expiration of a statute or completion of an audit. The company believes that it is reasonably possible that approximately $3.4 million of its currently remaining unrecognized tax benefits may be recognized over the next twelve months as a result of lapses of statutes of limitations.

4

A summary of the tax years that remain subject to examination in the company’s major tax jurisdictions are: 

United States - federal	2008 – 2013
United States - states	2004 – 2013
Australia	2011 – 2013
Brazil	2010 – 2013
Canada	2009 – 2013
China	2003 – 2013
Czech Republic	2013
Denmark	2009 – 2013
France	2011 – 2013
Germany	2011 – 2013
India	2013
Italy	2009 – 2013
Luxembourg	2011 – 2013
Mexico	2007 – 2013
Philippines	2009 – 2013
South Korea	2007 – 2011
Spain	2008 – 2013
Taiwan	2008 – 2012
United Kingdom	2009 – 2013

5

D) Fair Value Measures

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 on our 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 March 29, 2014
Financial Assets:
Pension plans	$	27,791	$	752	$	—	$	28,543
Financial Liabilities:
Interest rate swaps	$	—	$	1,000	$	—	$	1,000
Contingent consideration	$	—	$	—	$	10,711	$	10,711
As of December 28, 2013
Financial Assets:
Pension plans	$	27,875	$	621	$	—	$	28,496
Financial Liabilities:
Interest rate swaps	$	—	$	1,471	$	—	$	1,471
Contingent consideration	$	—	$	—	$	10,063	$	10,063

The contingent consideration at March 29, 2014 relates to the earnout provisions recorded in conjunction with the acquisitions of Stewart, Nieco, Spooner Vicars and Market Forge.

The contingent consideration as of December 28, 2013 relates to the earnout provisions recorded in conjunction with the acquisitions of Stewart, Nieco and Spooner Vicars.

The earnout provisions associated with these acquisitions are based upon performance measurements related to sales and earnings of the acquired businesses, as defined in the respective purchase agreements. On a quarterly basis the company assesses the projected results for each of the acquired businesses in comparison to the earnout targets and adjusts the liability accordingly.

E)    Consolidated Statements of Cash Flows

Cash paid for interest was $3.7 million and $3.1 million for the three months endedMarch 29, 2014 and March 30, 2013, respectively. Cash payments totaling $6.8 million and $8.4 million were made for income taxes for the three months endedMarch 29, 2014 and March 30, 2013, respectively.

6

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 identifiable 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 results of operations are reflected in the consolidated financial statements of the company from the date of acquisition.

Baker

On March 14, 2012, the company completed its acquisition of certain assets of Turkington USA, LLC (now known as Baker Thermal Solutions "Baker"), a manufacturer of automated baking ovens for the food processing industry, for a purchase price of approximately $10.3 million.

The final allocation of cash paid for the Baker acquisition is summarized as follows (in thousands): 

	(as initially reported) Mar 14, 2012			Measurement Period Adjustments			(as adjusted) Mar 14, 2012
Current assets	$	4,617		$	(2,236	)	$	2,381
Property, plant and equipment	221			—			221
Goodwill	5,797			1,481			7,278
Other intangibles	—			750			750
Current liabilities	(385		)	5			(380		)
Net assets acquired and liabilities assumed	$	10,250		$	—		$	10,250

The goodwill is subject to the non-amortization provisions of ASC 350 "Intangibles - Goodwill and Other." Other intangibles includes $0.8 million allocated to customer relationships, which are being amortized over 5 years. Goodwill of Baker is allocated to the Food Processing Equipment Group for segment reporting purposes. These assets are expected to be deductible for tax purposes.

7

Stewart

On September 5, 2012, the company completed its acquisition of certain assets of Stewart Systems Global, LLC ("Stewart"), a manufacturer of automated proofing and oven baking systems for the food processing industry, for a purchase price of approximately $27.8 million. An additional payment is also payable upon the achievement of certain financial targets. During the second quarter of 2013, the company finalized the working capital provision provided by the purchase agreement resulting in a refund from the seller of $1.3 million. Subsequent to the acquisition of Stewart, the company purchased intangible assets from a third party company previously associated with Stewart. These assets consist of the trade name, Spooner Vicars and have been allocated to Stewart.

The final allocation of cash paid for the Stewart acquisition is summarized as follows (in thousands): 

	(as initially reported) Sep 5, 2012			Measurement Period Adjustments			(as adjusted)  Sep 5, 2012
Cash	$	—		$	244		$	244
Current assets	11,839			(1,922		)	9,917
Property, plant and equipment	653			583			1,236
Goodwill	17,886			(2,140		)	15,746
Other intangibles	6,850			4,030			10,880
Current liabilities	(5,228		)	(1,511		)	(6,739		)
Other non-current liabilities	(4,000		)	(587		)	(4,587		)
Consideration paid at closing	$	28,000		$	(1,303	)	$	26,697
Contingent consideration	4,000			587			4,587
Net assets acquired and liabilities assumed	$	32,000		$	(716	)	$	31,284

The goodwill and $4.6 million of other intangibles associated with the trade name are subject to the non-amortization provisions of ASC 350. Other intangibles also includes $5.9 million allocated to customer relationships and $0.4 million allocated to backlog, which are being amortized over periods of 5 years and 6 months, respectively. Goodwill and other intangibles of Stewart are allocated to the Food Processing Equipment Group for segment reporting purposes. These assets are expected to be deductible for tax purposes.

The Stewart purchase agreement includes an earnout provision providing for a contingent payment due the sellers to the extent certain financial targets are exceeded. This earnout is payable within the first quarter of 2015 if Stewart exceeds certain sales and earnings targets for fiscal 2014. The contractual obligation associated with the contingent earnout provision recognized on the acquisition date is $4.6 million.

8

Nieco

On October 31, 2012, the company completed its acquisition of all of the capital stock of Nieco Corporation, ("Nieco"), a leading manufacturer of automated broilers for the commercial foodservice industry, for a purchase price of approximately $23.9 million, net of cash acquired. An additional payment is also payable upon the achievement of certain financial targets. During the second quarter of 2013, the company finalized the working capital provision provided by the purchase agreement resulting in no adjustment to the original purchase price.

The final allocation of cash paid for the Nieco acquisition is summarized as follows (in thousands): 

	(as initially reported) Oct 31, 2012			Measurement Period Adjustments			(as adjusted) Oct 31, 2012
Cash	$	140		$	—		$	140
Current assets	4,011			—			4,011
Property, plant and equipment	268			—			268
Goodwill	18,855			(3,473		)	15,382
Other intangibles	5,620			4,060			9,680
Current liabilities	(1,836		)	—			(1,836		)
Other non-current liabilities	(3,058		)	(587		)	(3,645		)
Consideration paid at closing	$	24,000		$	—		$	24,000
Contingent consideration	3,058			587			3,645
Net assets acquired and liabilities assumed	$	27,058		$	587		$	27,645

The goodwill and $3.1 million of other intangibles associated with the trade name are subject to the non-amortization provisions of ASC 350. Other intangibles also includes $6.5 million allocated to customer relationships and $0.1 million allocated to backlog, which are being amortized over periods of 4 years and 3 months, respectively. Goodwill and other intangibles of Nieco are allocated to the Commercial Foodservice Equipment Group for segment reporting purposes. These assets are expected to be deductible for tax purposes.

The Nieco purchase agreement includes an earnout provision providing for a contingent payment due the sellers to the extent certain financial targets are exceeded. This earnout is payable within the first quarter of 2015 if Nieco exceeds certain sales and earnings targets for fiscal 2013 and 2014. The contractual obligation associated with the contingent earnout provision recognized on the acquisition date is $3.6 million.

9

Viking

On December 31, 2012 (subsequent to the 2012 fiscal year end), the company completed its acquisition of all of the capital stock of Viking Range Corporation, ("Viking"), a leading manufacturer of kitchen equipment for the residential market, for a purchase price of approximately $361.7 million, net of cash acquired. During the third quarter of 2013, the company finalized the working capital provision provided by the purchase agreement resulting in a return from the seller of $11.2 million.

The final allocation of cash paid for the Viking acquisition is summarized as follows (in thousands): 

	(as initially reported) Dec 31, 2012			Measurement Period Adjustments			(as adjusted) Dec 31, 2012
Cash	$	6,900		$	(121	)	$	6,779
Current assets	40,794			(2,385		)	38,409
Property, plant and equipment	76,693			(20,446		)	56,247
Goodwill	144,833			(32,752		)	112,081
Other intangibles	152,500			44,500			197,000
Other assets	12,604			865			13,469
Current liabilities	(52,202		)	(886		)	(53,088		)
Other non-current liabilities	(2,386		)	(1		)	(2,387		)
Net assets acquired and liabilities assumed	$	379,736		$	(11,226	)	$	368,510

The goodwill and $151.0 million of other intangibles associated with the trade name are subject to the non-amortization provisions of ASC 350. Other intangibles also includes $44.0 million allocated to customer relationships and $2.0 million allocated to backlog which are being amortized over periods of 6 years and 3 months, respectively. Goodwill and other intangibles of Viking are allocated to the Residential Kitchen Equipment Group for segment reporting purposes. These assets are expected to be deductible for tax purposes. Certain acquired assets included in other assets were classified as held for sale at the date of acquisition and were sold during the second quarter of 2013.

10

Viking Distributors 2013

Subsequent to the acquisition of Viking, the company, through Viking, purchased certain assets of four of Viking's former distributors ("Distributors 2013"). The aggregate purchase price of these transactions as of June 29, 2013 was approximately $23.6 million. This included $8.7 million in forgiveness of liabilities owed to Viking resulting from pre-existing relationships with Viking.

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition dates to estimate the fair value of assets acquired and liabilities assumed (in thousands): 

	(as initially reported) Jun 29, 2013			Preliminary Measurement Period Adjustments			(as adjusted) Jun 29, 2013
Current assets	$	21,390		$	(1,972	)	$	19,418
Property, plant and equipment	1,318			—			1,318
Goodwill	1,709			1,972			3,681
Current liabilities	(804		)	—			(804		)
Net assets acquired and liabilities assumed	$	23,613		$	—		$	23,613
Forgiveness of liabilities owed to Viking	(8,697		)	—			(8,697		)
Consideration paid at closing	$	14,916		$	—		$	14,916

The goodwill is subject to the non-amortization provisions of ASC 350. Goodwill of these Distributors 2013 purchases is allocated to the Residential Kitchen Equipment Group for segment reporting purposes. These assets are expected to be deductible for tax purposes.

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. 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 dates.

11

Celfrost

On October 15, 2013, the company completed its acquisition of substantially all of the assets of Celfrost Innovations Pvt. Ltd. ("Celfrost"), a preferred commercial foodservice equipment supplier in India with a broad line of cold side products such as professional refrigerators, coldrooms, ice machines and freezers marketed under the Celfrost brand for a purchase price of approximately $11.2 million. Additional deferred payments totaling $1.1 million are also due to the seller in equal installments on the first, second and third anniversary of the acquisition.

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed (in thousands):

	(as initially reported) Oct 15, 2013			Preliminary Measurement Period Adjustments			(as adjusted) Oct 15, 2013
Current assets	$	5,638		$	(71	)	$	5,567
Property, plant and equipment	182			—			182
Goodwill	5,943			71			6,014
Other intangibles	4,333			—			4,333
Other assets	4			—			4
Current liabilities	(3,979		)	—			(3,979		)
Other non-current liabilities	(875		)	—			(875		)
Consideration paid at closing	$	11,246		$	—		$	11,246
Deferred payments	1,067			—			1,067
Net assets acquired and liabilities assumed	$	12,313		$	—		$	12,313

The goodwill and $2.3 million of other intangibles associated with the trade name are subject to the non-amortization provisions of ASC 350. Other intangibles also includes $1.9 million allocated to customer relationships and $0.1 million allocated to backlog which are being amortized over periods of 7 years and 3 months, respectively. Goodwill and other intangibles of Celfrost are allocated to the Commercial Foodservice Equipment Group for segment reporting purposes. These assets are expected to be deductible for tax purposes.

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. 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.

12

Wunder-Bar

On December 17, 2013, the company completed its acquisition of all of the capital stock of Automatic Bar Controls, Inc. ("Wunder-Bar"), a leading manufacturer of beverage dispensing systems for the commercial foodservice industry, for a purchase price of approximately $74.1 million, net of cash acquired.

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed (in thousands):

	(as initially reported) Dec 17, 2013			Preliminary Measurement Period Adjustments			(as adjusted) Dec 17, 2013
Cash	$	857		$	—		$	857
Deferred tax asset	50			—			50
Current assets	13,127			31			13,158
Property, plant and equipment	1,735			1			1,736
Goodwill	45,056			(32		)	45,024
Other intangibles	30,000			—			30,000
Current liabilities	(5,013		)	—			(5,013		)
Long-term tax liabilities	(10,811		)				(10,811		)
Other non-current liabilities	(1		)	—			(1		)
Net assets acquired and liabilities assumed	$	75,000		$	—		$	75,000

The net long term deferred tax liability is comprised of $11.1 million related book basis in excess of tax basis related to identifiable intangible assets net of $0.3 million arising from the difference between the book and tax basis of tangible assets and liability accounts.

The goodwill and $12.5 million of other intangibles associated with the trade name are subject to the non-amortization provisions of ASC 350. Other intangibles also includes $17.5 million allocated to customer relationships which is to be amortized over a period of 9 years. Goodwill and other intangibles of Wunder-Bar are allocated to the Commercial Foodservice Equipment Group for segment reporting purposes. These assets are not expected to be deductible for tax purposes.

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. 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.

13

Market Forge

On January 7, 2014, the company completed its acquisition of certain assets of Market Forge Industries, Inc. (“Market Forge”), a leading manufacturer of steam cooking equipment for the commercial foodservice industry, for a purchase price of approximately $7.0 million. During the first quarter of 2014, the company finalized the working capital provision provided for by the purchase agreement resulting in an additional payment to the seller of $0.2 million. Additional deferred payments of $3.0 million are due to the seller within a period not expected to exceed six months from the acquisition date. An additional payment of $1.4 million is also due upon the achievement of certain financial targets.

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed (in thousands):

	(as initially reported) Jan 7, 2014
Current assets	$	2,051
Property, plant and equipment	120
Goodwill	5,252
Other intangibles	4,191
Current liabilities	(4,374		)
Consideration paid at closing	$	7,240
Deferred payments	3,000
Contingent consideration	$	1,374
Net assets acquired and liabilities assumed	$	11,614

The goodwill and $2.9 million of other intangibles associated with the trade name are subject to the non-amortization provisions of ASC 350. Other intangibles also includes $1.1 million allocated to customer relationships, $0.2 million allocated to developed technology and less than $0.1 million allocated to backlog, which are to be amortized over periods of 4 years, 5 years and 3 months, respectively. Goodwill and other intangibles of Market Forge are allocated to the Commercial Foodservice Equipment Group for segment reporting purposes. These assets are expected to be deductible for tax purposes.

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. 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.

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Viking Distributors 2014

Subsequent to the acquisition of Viking, the company, through Viking, purchased certain assets of two of Viking's former distributors ("Distributors 2014"). The aggregate purchase price of these transactions as of January 31, 2014 was approximately $44.5 million. This included $6.0 million in forgiveness of liabilities owed to Viking resulting from pre-existing relationships with Viking.

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed (in thousands):

	(as initially reported) Jan 31, 2014
Current assets	$	35,909
Property, plant and equipment	2,000
Goodwill	7,552
Current liabilities	(1,005		)
Net assets acquired and liabilities assumed	$	44,456
Forgiveness of liabilities owed to Viking	(5,971		)
Consideration paid at closing	$	38,485

The goodwill is subject to the non-amortization provisions of ASC 350. Goodwill of these Distributors 2014 purchases is allocated to the Residential Kitchen Equipment Group for segment reporting purposes. These assets are expected to be deductible for tax purposes.

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. 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 dates.

3) Litigation Matters

From time to time, the company is subject to proceedings, lawsuits and other claims related to products, suppliers, employees, customers and competitors. The company maintains insurance to partially cover product liability, workers compensation, property and casualty, and general liability matters.  The company is required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable losses.  A determination of the amount of accrual required, if any, for these contingencies is made after assessment of each matter and the related insurance coverage.  The accrual requirement may change in the future due to new developments or changes in approach such as a change in settlement strategy in dealing with these matters.  The company does not believe that any pending litigation will have a material effect on its financial condition, results of operations or cash flows.

4) Recently Issued Accounting Standards

In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities". This update provides clarification on the disclosure requirements related to recognized derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and lending transactions. This update is effective for annual reporting periods and corresponding interim periods beginning on or after January 1, 2013, and retrospective application is required. The adoption of this guidance did not have an impact on the company's financial position, results of operations and cash flows.

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In March 2013, the FASB issued ASU No. 2013-02, “Comprehensive Income - Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income".  ASU No. 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. Additionally, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The guidance does not change the items reported in other comprehensive income or when an item of other comprehensive income is reclassified to net income. The company adopted the provisions of ASU No. 2013-02 on December 30, 2012.  As this guidance only revises the presentation of comprehensive income, there was no impact to the company’s financial position, results of operations or cash flows. 

5) Other Comprehensive Income

The company reports changes in equity during a period, except those resulting from investments by owners and distributions to owners, in accordance with ASC 220, "Comprehensive Income."

Changes in accumulated other comprehensive income(1) were as follows (in thousands):

	Currency Translation Adjustment			Pension Benefit Costs			Unrealized Gain/(Loss) Interest Rate Swap			Total
Balance as of December 28, 2013	$	(5,885	)	$	(2,120	)	$	(630	)	$	(8,635	)
Other comprehensive income before reclassification	1,574			(57		)	243			1,760
Amounts reclassified from accumulated other comprehensive income	—			—			21			21
Net current-period other comprehensive income	$	1,574		$	(57	)	$	264		$	1,781
Balance as of March 29, 2014	$	(4,311	)	$	(2,177	)	$	(366	)	$	(6,854	)

(1) All amounts are net of tax.

Components of other comprehensive income were as follows (in thousands):

	Three Months Ended
	Mar 29, 2014			Mar 30, 2013
Net earnings	$	33,445		$	25,902
Currency translation adjustment	1,574			(4,684		)
Pension liability adjustment, net of tax	(57		)	166
Unrealized gain on interest rate swaps, net of tax	264			(306		)
Comprehensive income	$	35,226		$	21,078

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6) Inventories

Inventories are composed of material, labor and overhead and are stated at the lower of cost or market. Costs for inventories at two of the company's manufacturing facilities have been determined using the last-in, first-out ("LIFO") method. These inventories under the LIFO method amounted to $24.7 million at March 29, 2014 and $22.3 million at December 28, 2013 and represented approximately 9.5% and 10.1% of the total inventory at each respective period. The amount of LIFO reserve at March 29, 2014 and December 28, 2013 was not material. Costs for all other inventory have been determined using the first-in, first-out ("FIFO") method. The company estimates reserves for inventory obsolescence and shrinkage based on its judgment of future realization. Inventories at March 29, 2014 and December 28, 2013 are as follows: 

	Mar 29, 2014		Dec 28, 2013
	(in thousands)
Raw materials and parts	$	114,227	$	110,310
Work-in-process	18,591		20,448
Finished goods	127,657		89,358
	$	260,475	$	220,116

7) Goodwill

Changes in the carrying amount of goodwill for the three months endedMarch 29, 2014 are as follows (in thousands):

	Commercial Foodservice		Food Processing		Residential Kitchen		Total
Balance as of December 28, 2013	$	444,321	$	127,872	$	115,762	$	687,955
Goodwill acquired during the year	5,252		—		7,552		12,804
Measurement period adjustments to goodwill acquired in prior year	40		—		—		40
Exchange effect	525		520		—		1,045
Balance as of March 29, 2014	$	450,138	$	128,392	$	123,314	$	701,844

8) Accrued Expenses

Accrued expenses consist of the following:

	Mar 29, 2014		Dec 28, 2013
	(in thousands)
Accrued payroll and related expenses	$	50,282	$	56,544
Advanced customer deposits	31,955		31,276
Accrued warranty	22,794		23,306
Accrued product liability and workers compensation	15,404		15,355
Accrued customer rebates	11,849		26,947
Accrued agent commission	10,547		9,767
Contingent consideration	9,893		8,628
Accrued professional services	6,784		7,441
Accrued sales and other tax	5,654		5,762
Other accrued expenses	28,080		28,433
	$	193,242	$	213,459

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9) Warranty Costs

In the normal course of business the company issues product warranties for specific product lines and provides for the estimated future warranty cost in the period in which the sale is recorded.  The estimate of warranty cost is based on contract terms and historical warranty loss experience that is periodically adjusted for recent actual experience. Because warranty estimates are forecasts that are based on the best available information, actual claims costs may differ from amounts provided. Adjustments to initial obligations for warranties are made as changes in the obligations become reasonably estimable.

A rollforward of the warranty reserve is as follows:

	Three Months Ended
	Mar 29, 2014
	(in thousands)
Beginning balance	$	23,306
Warranty reserve related to acquisitions	211
Warranty expense	8,806
Warranty claims	(9,529		)
Ending balance	$	22,794

10) Financing Arrangements

	Mar 29, 2014		Dec 28, 2013
	(in thousands)
Senior secured revolving credit line	$	647,000	$	568,600
Foreign loans	8,134		2,680
Other debt arrangement	309		318
Total debt	$	655,443	$	571,598
Less:  Current maturities of long-term debt	6,900		1,408
Long-term debt	$	648,543	$	570,190

On August 7, 2012, the company entered into a new senior secured multi-currency credit facility. Terms of the company’s senior credit agreement provide for $1.0 billion of availability under a revolving credit line. As of March 29, 2014, the company had $647.0 million of borrowings outstanding under this facility. The company also had $13.4 million in outstanding letters of credit as of March 29, 2014, which reduces the borrowing availability under the revolving credit line. Remaining borrowing availability under this facility was $339.6 million at March 29, 2014.

At March 29, 2014, borrowings under the senior secured credit facility were assessed at an interest rate of 1.50% above LIBOR for long-term borrowings or at the higher of the Prime rate and the Federal Funds Rate. At March 29, 2014 the average interest rate on the senior debt amounted to 1.64%. The interest rates on borrowings under the senior secured credit facility may be adjusted quarterly based on the company’s indebtedness ratio on a rolling four-quarter basis. Additionally, a commitment fee based upon the indebtedness ratio is charged on the unused portion of the revolving credit line. This variable commitment fee amounted to 0.25% as of March 29, 2014.

In August 2006, the company completed its acquisition of Houno A/S in Denmark. This acquisition was funded in part with locally established debt facilities with borrowings in Danish Krone.  These facilities included a revolving credit facility and term loan. At March 29, 2014 these facilities amounted to $2.1 million in U.S. dollars, including $0.7 million outstanding under a revolving credit facility and $1.4 million under a term loan. The interest rate on the revolving credit facility is assessed at 1.25% above Euro LIBOR, which amounted to 2.70% on March 29, 2014. At March 29, 2014, the interest rate assessed on the term loan was 4.55%. The term loan matures in 2022.

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In April 2008, the company completed its acquisition of Giga Grandi Cucine S.r.l in Italy. This acquisition was funded in part with locally established debt facilities with borrowings denominated in Euro.  At March 29, 2014 these facilities amounted to $0.7 million in U.S. dollars.  The interest rate on the credit facilities is variable based on the three-month Euro LIBOR. At March 29, 2014, the average interest rate on these facilities was approximately 3.86%. The facilities are secured by outstanding accounts receivable collectible within six months.

In October 2013, the company completed its acquisition of substantially all of the assets of Celfrost Innovations Private Limited in India.  At the time of the acquisition a local credit facility, denominated in Indian Rupee, was established to fund local working capital needs. At March 29, 2014, the facility amounted to $0.9 million in U.S. dollars. At March 29, 2014, borrowings under the facility were assessed at an interest rate at 1.25% above the Reserve Bank of India's base rate for long-term borrowings. At March 29, 2014, the average interest rate on this facility was approximately 11.00%. 

In March 2014, Cozzini do Brazil LTDA entered into a local credit facility, denominated in Brazilian Real, to fund local working capital needs.   At March 29, 2014, the facility amounted to $4.4 million in U.S. dollars and was assessed an interest rate of 1.50% above the Brazilian central bank CDI Rate. At March 29, 2014, the interest rate assessed on this facility was 12.05%. This local credit facility matures on March 28, 2015.

The company’s debt is reflected on the balance sheet at cost. Based on current market conditions, the company believes its interest rate margins on its existing debt are consistent with current market conditions and therefore the carrying value of debt approximates fair value. However, as the interest rate margin is based upon numerous factors, including but not limited to the credit rating of the borrower, the duration of the loan, the structure and restrictions under the debt agreement, current lending policies of the counterparty, and the company’s relationships with its lenders, there is no readily available market data to ascertain the current market rate for an equivalent debt instrument. As a result, the current interest rate margin is based upon the company’s best estimate based upon discussions with its lenders.

The company estimated the fair value of its loans by calculating the upfront cash payment a market participant would require to assume the company’s obligations. The upfront cash payment is the amount that a market participant would be able to lend at March 29, 2014 to achieve sufficient cash inflows to cover the cash outflows under the company’s senior revolving credit facility assuming the facility was outstanding in its entirety until maturity. Since the company maintains its borrowings under a revolving credit facility and there is no predetermined borrowing or repayment schedule, for purposes of this calculation the company calculated the fair value of its obligations assuming the current amount of debt at the end of the period was outstanding until the maturity of the company’s senior revolving credit facility in August 2017. Although borrowings could be materially greater or less than the current amount of borrowings outstanding at the end of the period, it is not practical to estimate the amounts that may be outstanding during future periods. The carrying value and estimated aggregate fair value, a level 2 measurement, based primarily on market prices, of debt is as follows (in thousands):

	Mar 29, 2014				Dec 28, 2013
	Carrying Value		Fair Value		Carrying Value		Fair Value
Total debt	$	655,443	$	655,443	$	571,598	$	571,598

The company believes that its current capital resources, including cash and cash equivalents, cash expected to be generated from operations, funds available from its current lenders and access to the credit and capital markets will be sufficient to finance its operations, debt service obligations, capital expenditures, product development and expenditures for the foreseeable future.

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The company has historically entered into interest rate swap agreements to effectively fix the interest rate on a portion of its outstanding debt. The agreements swap one-month LIBOR for fixed rates. As of March 29, 2014, the company had the following interest rate swaps in effect:

	Fixed
Notional	Interest	Effective	Maturity
Amount	Rate	Date	Date
$25,000,000	2.520%	2/23/2011	2/23/2016
$25,000,000	0.975%	7/18/2011	7/18/2014
$15,000,000	1.185%	9/12/2011	9/12/2016
$15,000,000	0.620%	9/12/2011	9/11/2014
$10,000,000	0.498%	2/11/2013	7/11/2015
$15,000,000	0.458%	2/11/2013	10/11/2015
$25,000,000	0.635%	2/11/2013	8/11/2016
$25,000,000	0.789%	2/11/2013	3/11/2017
$25,000,000	0.803%	2/11/2013	5/11/2017
$35,000,000	0.880%	2/11/2013	7/11/2017
$10,000,000	1.480%	9/11/2013	7/11/2017
$15,000,000	0.920%	3/11/2014	7/11/2017
$25,000,000	0.950%	3/11/2014	7/11/2017

The terms of the senior secured credit facility limit the ability of the company and its subsidiaries to, with certain exceptions: incur indebtedness; grant liens; engage in certain mergers, consolidations, acquisitions and dispositions; make restricted payments; and enter into certain transactions with affiliates; and require, among other things, a maximum ratio of indebtedness to EBITDA of 3.5 and a fixed charge coverage ratio (as defined in the senior secured credit facility) of 1.25. The senior secured credit facility is secured by substantially all of the assets of Middleby Marshall, the company and the company's domestic subsidiaries and is unconditionally guaranteed by, subject to certain exceptions, the company and certain of the company's direct and indirect material domestic subsidiaries. The senior secured credit facility contains certain customary events of default, including, but not limited to, the failure to make required payments; bankruptcy and other insolvency events; the failure to perform certain covenants; the material breach of a representation or warranty; non-payment of certain other indebtedness; the entry of undischarged judgments against the company or any subsidiary for the payment of material uninsured amounts; the invalidity of the Company guarantee or any subsidiary guaranty; and a change of control of the company. The credit agreement also provides that if a material adverse change in the company’s business operations or conditions occurs, the lender could declare an event of default. Under terms of the agreement, a material adverse effect is defined as (a) a material adverse change in, or a material adverse effect upon, the operations, business properties, condition (financial and otherwise) or prospects of the company and its subsidiaries taken as a whole; (b) a material impairment of the ability of the company to perform under the loan agreements and to avoid any event of default; or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against the company of any loan document. A material adverse effect is determined on a subjective basis by the company's creditors. At March 29, 2014, the company was in compliance with all covenants pursuant to its borrowing agreements.

11) Financial Instruments

ASC 815 “Derivatives and Hedging” requires an entity to recognize all derivatives as either assets or liabilities and measure those instruments at fair value. Derivatives that do not qualify as a hedge must be adjusted to fair value in earnings. If a derivative does qualify as a hedge under ASC 815, changes in the fair value will either be offset against the change in the fair value of the hedged assets, liabilities or firm commitments or recognized in other accumulated comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a hedge's change in fair value will be immediately recognized in earnings.

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Foreign Exchange: The company uses foreign currency forward purchase and sale contracts with terms of less than one year to hedge its exposure to changes in foreign currency exchange rates. The company’s primary hedging activities are to mitigate its exposure to changes in exchange rates on intercompany and third party trade receivables and payables. The company does not currently enter into derivative financial instruments for speculative purposes. In managing its foreign currency exposures, the company identifies and aggregates naturally occurring offsetting positions and then hedges residual balance sheet exposures. The following table summarizes the forward contracts outstanding at March 29, 2014. The fair value of the forward contracts was a loss of $0.1 million at the end of the first quarter of 2014.

Sell		Purchase		Maturity
10,000,000	British Pounds	12,072,046	Euro Dollars	June 27, 2014
7,600,000	British Pounds	9,179,853	Euro Dollars	June 27, 2014
5,000,000	British Pounds	5,966,801	Euro Dollars	June 27, 2014
5,500,000	Euro Dollars	7,570,750	US Dollars	June 27, 2014
10,000,000	Euro Dollars	13,826,000	US Dollars	June 27, 2014
164,203	Euro Dollars	214,055	US Dollars	March 31, 2014
210,000	Euro Dollars	318,182	Australian Dollars	March 31, 2014
92,000	US Dollars	105,383	Australian Dollars	April 30, 2014
369,469	Euro Dollars	481,750	US Dollars	April 30, 2014
237,900	Euro Dollars	205,593	British Pounds	April 30, 2014
157,367	Euro Dollars	205,254	US Dollars	May 31, 2014

Interest Rate: The company has entered into interest rate swaps to fix the interest rate applicable to certain of its variable-rate debt. The agreements swap one-month LIBOR for fixed rates. The company has designated these swaps as cash flow hedges and all changes in fair value of the swaps are recognized in accumulated other comprehensive income. As of March 29, 2014, the fair value of these instruments was a liability of $1.0 million. The change in fair value of these swap agreements in the first three months of 2014 was a gain of $0.5 million, net of taxes.

The following tables summarize the company’s fair value of interest rate swaps (in thousands):

	Condensed Consolidated Balance Sheet Presentation	Mar 29, 2014			Dec 28, 2013
Fair value	Other non-current liabilities	$	(1,000	)	$	(1,471	)

The impact on earnings from interest rate swaps was as follows (in thousands):

		Three Months Ended
	Presentation of Gain/(loss)	Mar 29, 2014			Mar 30, 2013
Gain/(loss) recognized in accumulated other comprehensive income	Other comprehensive income	$	(103	)	$	(901	)
Gain/(loss) reclassified from accumulated other comprehensive income (effective portion)	Interest expense	$	(543	)	$	(391	)
Gain/(loss) recognized in income (ineffective portion)	Other expense	$	31		$	(5	)

Interest rate swaps are subject to default risk to the extent the counterparties are unable to satisfy their settlement obligations under the interest rate swap agreements. The company reviews the credit profile of the financial institutions and assesses its creditworthiness prior to entering into the interest rate swap agreements. The interest rate swap agreements typically contain provisions that allow the counterparty to require early settlement in the event that the company becomes insolvent or is unable to maintain compliance with its covenants under its existing debt agreements.

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12) Segment Information

The company operates in three reportable operating segments defined by management reporting structure and operating activities.

The Commercial Foodservice Equipment Group manufactures, sells, and distributes cooking equipment for the restaurant and institutional kitchen industry. This business segment has manufacturing facilities in California, Illinois, Michigan, New Hampshire, North Carolina, Tennessee, Texas, Vermont, Australia, China, Denmark, Italy, the Philippines and the United Kingdom. Principal product lines of this group include conveyor ovens, ranges, steamers, convection ovens, combi-ovens, broilers and steam cooking equipment, induction cooking systems, baking and proofing ovens, charbroilers, catering equipment, fryers, toasters, hot food servers, food warming equipment, griddles, coffee and beverage dispensing equipment, professional refrigerators, coldrooms, ice machines, freezers and kitchen processing and ventilation equipment. These products are sold and marketed under the brand names: Anets, Beech, Blodgett, Blodgett Combi, Blodgett Range, Bloomfield, Britannia, CTX, Carter-Hoffmann, Celfrost, CookTek, Doyon, Frifri, Giga, Holman, Houno, IMC, Jade, Lang, Lincat, MagiKitch’n, Market Forge, Middleby Marshall, MPC, Nieco, Nu-Vu, PerfectFry, Pitco, Southbend, Star, Toastmaster, TurboChef, Viking, Wells and Wunder-Bar.

The Food Processing Equipment Group manufactures preparation, cooking, packaging food handling and food safety equipment for the food processing industry. This business segment has manufacturing operations in Illinois, Iowa, North Carolina, Texas, Virginia, Wisconsin, Australia, France, Germany and Mexico. Principal product lines of this group include batch ovens, belt ovens, continuous processing ovens, frying systems, automated thermal processing systems, automated loading and unloading systems, meat presses, breading, battering, mixing, forming, grinding and slicing equipment, food suspension, reduction and emulsion systems, defrosting equipment, packaging and food safety equipment. These products are sold and marketed under the brand names: Alkar, Armor Inox, Auto-Bake, Baker Thermal Solutions, Danfotech, Drake, Maurer-Atmos, MP Equipment, RapidPak, Spooner Vicars and Stewart Systems.

The Residential Kitchen Equipment Group manufactures, sells and distributes kitchen equipment for the residential market. This business segment has manufacturing facilities in Greenwood, Mississippi. Principal product lines of this group are ranges, ovens, refrigerators, dishwashers, microwaves, cooktops and outdoor equipment. These products are sold and marketed under the brand names of Brigade, Jade, TurboChef and Viking.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The chief operating decision maker evaluates individual segment performance based on operating income. Management believes that intersegment sales are made at established arms length transfer prices.

Net Sales Summary

(dollars in thousands)

	Three Months Ended
	Mar 29, 2014				Mar 30, 2013
	Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	234,050	62.8	%	$	197,362	60.3	%
Food Processing	75,586		20.3		71,438		21.8
Residential Kitchen	62,842		16.9		58,651		17.9
Total	$	372,478	100.0	%	$	327,451	100.0	%

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The following table summarizes the results of operations for the company's business segments(1) (in thousands):

	Commercial  Foodservice		Food Processing		Residential Kitchen			Corporate and Other(2)			Total
Three Months Ended March 29, 2014
Net sales	$	234,050	$	75,586	$	62,842		$	—		$	372,478
Income (loss) from operations	54,962		12,122		207			(11,358		)	55,933
Depreciation and amortization expense	4,884		2,121		3,091			425			10,521
Net capital expenditures	2,243		449		539			—			3,231
Total assets	$	1,020,845	$	308,442	$	491,465		$	95,090		$	1,915,842
Three Months Ended March 30, 2013
Net sales	$	197,362	$	71,438	$	58,651		$	—		$	327,451
Income (loss) from operations	49,750		11,480		(7,241		)	(11,794		)	42,195
Depreciation and amortization expense	4,375		2,025		7,219			404			14,023
Net capital expenditures	1,502		848		1,487			86			3,923
Total assets	$	876,935	$	313,601	$	436,250		$	70,968		$	1,697,754

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

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

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Geographic Information

Long-lived assets, not including goodwill and other intangibles (in thousands):

	Mar 29, 2014		Mar 30, 2013
United States and Canada	$	115,537	$	141,792
Asia	5,156		3,355
Europe and Middle East	16,291		14,073
Latin America	1,930		1,340
Total international	$	23,377	$	18,768
	$	138,914	$	160,560

Net sales (in thousands):

	Three Months Ended
	Mar 29, 2014		Mar 30, 2013
United States and Canada	$	259,100	$	242,057
Asia	33,806		20,386
Europe and Middle East	59,805		42,464
Latin America	19,767		22,544
Total international	$	113,378	$	85,394
	$	372,478	$	327,451

13) 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 employees participating in the defined benefit plan were enrolled in a newly established 401K savings plan on July 1, 2002, further described below.

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. The retirement benefits are based upon a percentage of the Chairman’s final base salary.

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(b) 401K Savings Plans

The company maintains 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 makes profit sharing contributions to the various plans in accordance with the requirements of the plan. Profit sharing contributions for the Elgin Union 401K savings plans are made in accordance with the agreement.

14) Acquisition Integration Initiatives

During the first quarter of 2013, the company began making decisions and taking actions to improve certain of the operations of Viking, purchased on December 31, 2012. These initiatives included organizational restructuring and headcount reductions, consolidation and disposition of certain facilities and business operations, and discontinuation of certain products. These initiatives were substantially completed by the end of 2013. During the three months ended March 29, 2014, the company recorded expense in the amount of $2.6 million for these initiatives, which is reflected in the general and administrative expenses in the consolidated statements of earnings for such period. The costs and corresponding reserve balances are summarized as follows (in thousands):

	Severance/Benefits			Inventory/Product			Facilities/Operations			Other			Total
Balance as of December 28, 2013	$	1,619		$	584		$	77		$	108		$	2,388
Expenses	2,548			9			90			—			2,647
Payments	(1,707		)	(334		)	(98		)	(11		)	(2,150		)
Balance as of March 29, 2014	$	2,460		$	259		$	69		$	97		$	2,885

The company anticipates that all obligations will be satisfied by the end of the second quarter of 2014. As of March 29, 2014, the company believes the remaining reserve balance is adequate to cover the remaining costs identified.

15) Subsequent Event

On March 31, 2014, subsequent to the end of the first quarter, the company completed its acquisition of substantially all of the assets of Processing Equipment Solutions, Inc. ("PES"), a leading manufacturer of equipment for the food processing industry based in Gainesville, Georgia with annual revenues of approximately $15.0 million.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

Informational Notes

This report contains forward-looking statements subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. The company cautions readers that these projections are based upon future results or events and are highly dependent upon a variety of important factors which could cause such results or events to differ materially from any forward-looking statements which may be deemed to have been made in this report, or which are otherwise made by or on behalf of the company. Such factors include, but are not limited to, volatility in earnings resulting from goodwill impairment losses which may occur irregularly and in varying amounts; variability in financing costs; quarterly variations in operating results; dependence on key customers; international exposure; foreign exchange and political risks affecting international sales; ability to protect trademarks, copyrights and other intellectual property; changing market conditions; the impact of competitive products and pricing; the timely development and market acceptance of the company’s products; the availability and cost of raw materials; and other risks detailed herein and from time-to-time in the company’s Securities and Exchange Commission (“SEC”) filings, including the company’s 2013 Annual Report on Form 10-K.

Net Sales Summary

(dollars in thousands)

	Three Months Ended
	Mar 29, 2014				Mar 30, 2013
	Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	234,050	62.8	%	$	197,362	60.3	%
Food Processing	75,586		20.3		71,438		21.8
Residential Kitchen	62,842		16.9		58,651		17.9
Total	$	372,478	100.0	%	$	327,451	100.0	%

Results of Operations

The following table sets forth certain consolidated statements of earnings items as a percentage of net sales for the periods.

	Three Months Ended
	Mar 29, 2014		Mar 30, 2013
Net sales	100.0	%	100.0	%
Cost of sales	61.6		63.0
Gross profit	38.4		37.0
Selling, general and administrative expenses	23.4		24.1
Income from operations	15.0		12.9
Net interest expense and deferred financing amortization	1.1		1.0
Other expense, net	0.2		0.1
Earnings before income taxes	13.7		11.8
Provision for income taxes	4.7		3.9
Net earnings	9.0	%	7.9	%

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Three Months EndedMarch 29, 2014 as compared to Three Months EndedMarch 30, 2013

NET SALES. Net sales for the first quarter of fiscal 2014 were $372.5 million as compared to $327.5 million in the first quarter of 2013. Of the $45.0 million increase in net sales, $18.9 million, or 5.8%, was attributable to acquisition growth, mainly resulting from the fiscal 2013 acquisitions of Celfrost and Wunder-Bar and the fiscal 2014 acquisition of Market Forge. Excluding acquisitions, net sales increased $26.1 million, or 8.0%, from the prior year, reflecting a net sales increase of 9.0% at the Commercial Foodservice Equipment Group, 5.9% at the Food Processing Equipment Group and 7.0% at the Residential Kitchen Equipment Group.

• Net sales of the Commercial Foodservice Equipment Group increased by $36.7 million, or 18.6%, to $234.1 million in the first quarter of 2014 as compared to $197.4 million in the prior year quarter. Net sales resulting from the acquisitions of Celfrost, Wunder-Bar and Market Forge, which were acquired on October 15, 2013, December 17, 2013 and January 7, 2014, respectively, accounted for an increase of $18.9 million during the first quarter of 2014. Excluding the impact of these acquisitions, net sales of Commercial Foodservice Equipment increased $17.8 million, or 9.0% as compared to the prior year quarter. International sales increased $12.2 million, or 21.2%, to $69.7 million, as compared to $57.5 million in the prior year quarter. This includes the increase of $10.3 million from the recent acquisitions. Excluding the acquisitions, the net increase of $1.9 million in international sales reflects growth in Europe and Mid-East offset by reduced sales in Asia and Latin America, which reflected strong store-opening activity in the prior year first quarter. Domestically, the company realized a sales increase of $24.6 million, or 17.6%, to $164.4 million, as compared to $139.8 million in the prior year quarter. This includes an increase of $8.6 million from the recent acquisitions. This increase in domestic sales includes continued growth with customer initiatives to improve efficiencies in restaurant operations by adopting new cooking and warming technologies and general improvements in market conditions.

• Net sales of the Food Processing Equipment Group increased by $4.2 million, or 5.9%, to $75.6 million in the first quarter of 2014 as compared to $71.4 million in the prior year quarter. International sales increased by $13.1 million, or 45.0%, to $42.2 million, as compared to $29.1 million in the prior year quarter. The increase in international sales reflects expansion of food processing operations to support growing global demand and initiatives to upgrade food processing operations to more efficient and cost effective equipment. Domestically, the company realized a sales decrease of $8.9 million, or 21.0%, to $33.4 million, as compared to $42.3 million in the prior year quarter.

• Net sales of the Residential Kitchen Equipment Group increased by $4.1 million, or 7.0%, to $62.8 million in the first quarter of 2014 as compared to $58.7 million in the prior year quarter. Sales were impacted by distributor acquisitions and reorganization activities, which disrupted sales during the quarter.

GROSS PROFIT. Gross profit increased to $143.0 million in the first quarter of 2014 from $121.3 million in the prior year period, reflecting the impact of higher sales volumes. The gross margin rate increased from 37.0% in the first quarter of 2013 to 38.4% in the first quarter of 2014. The net increase in the gross margin rate reflects the benefit of acquisition integration initiatives.

• Gross profit at the Commercial Foodservice Equipment Group increased by $13.0 million, or 15.9%, to $94.7 million in the first quarter of 2014 as compared to $81.7 million in the prior year quarter. The gross margin rate decreased to 40.5% as compared to 41.4% in the prior year quarter. The gross margin margin rate reflected the impact of sales mix and lower margins at newly acquired companies. Gross profit from the acquisitions of Celfrost, Wunder-Bar and Market Forge accounted for approximately $5.8 million of the increase in gross profit. Excluding the recent acquisitions, the gross profit increased by approximately $7.2 million on the higher sales volumes.

• Gross profit at the Food Processing Equipment Group increased by $2.8 million, or 11.9%, to $26.3 million in the first quarter of 2014 as compared to $23.5 million in the prior year quarter. The gross margin rate increased to 34.8% as compared to 32.9% in the prior year quarter. Gross profit increased as the company realized ongoing integration initiatives from previously acquired companies.

• Gross profit at the Residential Kitchen Equipment Group increased by $4.7 million, or 28.1%, to $21.4 million in the first quarter of 2014 as compared to $16.7 million in the prior year quarter. The gross margin rate increased to 34.1% as compared to 28.5% in the prior year quarter. Gross margin rate increased as the company realized ongoing integration initiatives.

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SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Combined selling, general and administrative expenses increased from $79.1 million in the first quarter of 2013 to $87.1 million in the first quarter of 2014. As a percentage of net sales, operating expenses were 24.1% in the first quarter of 2013 as compared to 23.4% in the first quarter of 2014. Selling expenses increased from $36.2 million in the first quarter of 2013 to $47.0 million in the first quarter of 2014. Selling expenses reflect increased costs of $1.6 million associated with the Celfrost, Wunder-Bar and Market Forge acquisitions. Selling expenses also reflect higher costs associated with the acquisition and addition of distribution operations for Viking, which amounted to approximately $9.3 million. General and administrative expenses decreased from $42.9 million in the first quarter of 2013 to $40.1 million in the first quarter of 2014. General and administrative expenses reflect $2.6 million of increased costs associated with the Celfrost, Wunder-Bar and Market Forge acquisitions, including $0.7 million of non-cash intangible amortization expense. Additionally, expenses increased $1.1 million related to professional fees and $0.9 million related to increases in acquisition related future earnout payments. These increases were offset by a reduction of $4.2 million in acquisition integration expenses and $3.5 million in non-cash intangible amortization expense.

NON-OPERATING EXPENSES. Interest and deferred financing amortization costs increased to $4.0 million in the first quarter of 2014 as compared to $3.4 million in the first quarter of 2013 due to increased debt levels as a result of acquisition activities. Other expense was $0.9 million in the first quarter of 2014 as compared to $0.2 million in the prior year first quarter and consists primarily of foreign exchange gains and losses.

INCOME TAXES. A tax provision of $17.6 million, at an effective rate of 34.5%, was recorded during the first quarter of 2014, as compared to a $12.6 million provision at a 32.8% effective rate in the prior year quarter. In comparison to the prior year quarter, the tax provision reflects a higher effective rate on increased income from its domestic jurisdiction as well as an increase in adjustments to tax reserves.

Financial Condition and Liquidity

During the three months ended March 29, 2014, cash and cash equivalents increased by $2.2 million to $39.1 million at March 29, 2014 from $36.9 million at December 28, 2013. Net borrowings increased from $571.6 million at December 28, 2013 to $655.4 million at March 29, 2014.

OPERATING ACTIVITIES. Net cash used in operating activities was $13.6 million for the three months endedMarch 29, 2014 compared to net cash provided by operating activities of $13.5 million for the three months endedMarch 30, 2013 due primarily to increased working capital needs offset by increased earnings and increased non-cash deferred income tax expense.

During the three months endedMarch 29, 2014, working capital levels changed due to increased working capital needs. These changes in working capital levels included a $5.6 millionincrease in inventory, due to several factors including increased order rates, investments in inventories in growing international markets, and investments in inventories at the Residential Kitchen Equipment Group in connection with the acquisition and establishment of company owned distribution operations. Accounts receivable increased$15.8 million due to increased sales volume and distribution channel changes at the Residential Kitchen Equipment Group. Changes in working capital levels also included a $21.9 millionincrease in prepaid tax expenses and other prepaid assets primarily related to the timing of estimated tax payments, a $2.4 milliondecrease in accounts payable due to the timing of vendor payments and a $26.5 milliondecrease in accrued expenses and other non-current liabilities primarily related to payment of 2013 annual rebate programs and incentive obligations.

INVESTING ACTIVITIES. During the three months endedMarch 29, 2014, net cash used in investing activities included $45.7 million related to the acquisitions of Market Forge and Viking Distributors 2014 and $3.2 million of additions of production equipment.

FINANCING ACTIVITIES. Net cash flows provided by financing activities were $64.6 million during the three months endedMarch 29, 2014. The company’s borrowing activities included the $78.4 million of net proceeds under its $1.0 billion revolving credit facility, primarily to fund the acquisitions of Market Forge and Viking Distributors 2014.

Financing activities also included 25.0 million of excess tax benefits associated with the vesting of restricted stock grants.

The company used $44.3 million to repurchase 155,211 shares of its common stock that were surrendered to the company by employees in lieu of cash for payment for withholding taxes related to restricted stock vestings that occurred during the three months endedMarch 29, 2014.

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At March 29, 2014, the company was in compliance with all covenants pursuant to its borrowing agreements. The company believes that its current capital resources, including cash and cash equivalents, cash generated from operations, funds available from its revolving credit facility and access to the credit and capital markets will be sufficient to finance its operations, debt service obligations, capital expenditures, acquisitions, product development and integration expenditures for the foreseeable future.

Recently Issued Accounting Standards

In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities". This update provides clarification on the disclosure requirements related to recognized derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and lending transactions. This update is effective for annual reporting periods and corresponding interim periods beginning on or after January 1, 2013, and retrospective application is required. The adoption of this guidance did not have an impact on the company's financial position, results of operations and cash flows.

In March 2013, the FASB issued ASU No. 2013-02, “Comprehensive Income - Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income".  ASU No. 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. Additionally, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The guidance does not change the items reported in other comprehensive income or when an item of other comprehensive income is reclassified to net income. The company adopted the provisions of ASU No. 2013-02 on December 30, 2012.  As this guidance only revises the presentation of comprehensive income, there was no impact to the company’s financial position, results of operations or cash flows. 

Critical Accounting Policies and Estimates

Management's discussion and analysis of financial condition and results of operations are based upon the company's consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires the company to make significant estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses as well as related disclosures. On an ongoing basis, the company evaluates its estimates and judgments based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions and any such differences could be material to our consolidated financial statements. 

Revenue Recognition. At the Commercial Foodservice Group and the Residential Kitchen Equipment Group, the company recognizes revenue on the sale of its products when risk of loss has passed to the customer, which occurs at the time of shipment, and collectibility is reasonably assured. The sale prices of the products sold are fixed and determinable at the time of shipment. Sales are reported net of sales returns, sales incentives and cash discounts based on prior experience and other quantitative and qualitative factors.

At the Food Processing Equipment Group, the company enters into long-term sales contracts for certain products that are often significant relative to the business. Revenue under these long-term sales contracts is recognized using the percentage of completion method defined within ASC 605-35 “Construction-Type and Production-Type Contracts” due to the length of time to fully manufacture and assemble the equipment. The company measures revenue recognized based on the ratio of actual labor hours incurred in relation to the total estimated labor hours to be incurred related to the contract. Because estimated labor hours to complete a project are based upon forecasts using the best available information, the actual hours may differ from original estimates. The percentage of completion method of accounting for these contracts most accurately reflects the status of these uncompleted contracts in the company's financial statements and most accurately measures the matching of revenues with expenses. At the time a loss on a contract becomes known, the amount of the estimated loss is recognized in the consolidated financial statements. Revenue for sales of products and services not covered by long-term sales contracts are recognized when risk of loss has passed to the customer, which occurs at the time of shipment, and collectibility is reasonably assured. The sale prices of the products sold are fixed and determinable at the time of shipment. Sales are reported net of sales returns, sales incentives and cash discounts based on prior experience and other quantitative and qualitative factors.

Inventories. Inventories are stated at the lower of cost or market using the first-in, first-out method for the majority of the company’s inventories.  The company evaluates the need to record valuation adjustments for inventory on a regular basis.  The company’s policy is to evaluate all inventories including raw material, work-in-process, finished goods, and spare parts.  Inventory in excess of estimated usage requirements is written down to its estimated net realizable value.  Inherent in the

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estimates of net realizable value are estimates related to our future manufacturing schedules, customer demand, possible alternative uses, and ultimate realization of potentially excess inventory. 

Goodwill and Other Intangibles. The company’s business acquisitions result in the recognition of goodwill and other intangible assets, which are a significant portion of the company’s total assets. The company recognizes goodwill and other intangible assets under the guidance of ASC Topic 350-10, “Intangibles — Goodwill and Other.”  Goodwill represents the excess of acquisition costs over the fair value of the net tangible assets and identifiable intangible assets acquired in a business combination. Identifiable intangible assets are recognized separately from goodwill and include trademarks and trade names, technology, customer relationships and other specifically identifiable assets.  Trademarks and trade names are deemed to be indefinite-lived. Goodwill and indefinite-lived intangible assets are not amortized, but are subject to impairment testing. On an annual basis, or more frequently if triggering events occur, the company compares the estimated fair value to the carrying value to determine if a potential goodwill impairment exists. If the fair value is less than its carrying value, an impairment loss, if any, is recorded for the difference between the implied fair value and the carrying value of goodwill. In estimating the fair value of specific intangible assets, management relies on a number of factors, including operating results, business plans, economic projections, anticipated future cash flows, comparable transactions and other market data. There are inherent uncertainties related to these factors and management’s judgment in applying them in the impairment tests of goodwill and other intangible assets. 

Income Taxes. The company provides deferred income tax assets and liabilities based on the estimated future tax effects of differences between the financial and tax bases of assets and liabilities based on currently enacted tax laws. The company’s deferred and other tax balances are based on management’s interpretation of the tax regulations and rulings in numerous taxing jurisdictions. Income tax expense and liabilities recognized by the company also reflect its best estimates and assumptions regarding, among other things, the level of future taxable income, the effect of the Company’s various tax planning strategies and uncertain tax positions. Future tax authority rulings and changes in tax laws, changes in projected levels of taxable income and future tax planning strategies could affect the actual effective tax rate and tax balances recorded by the company. The company follows the provisions under ASC 740-10-25 that provides a recognition threshold and measurement criteria for the financial statement recognition of a tax benefit taken or expected to be taken in a tax return. Tax benefits are recognized only when it is more likely than not, based on the technical merits, that the benefits will be sustained on examination. Tax benefits that meet the more-likely-than-not recognition threshold are measured using a probability weighting of the largest amount of tax benefit that has greater than 50% likelihood of being realized upon settlement. Whether the more-likely-than-not recognition threshold is met for a particular tax benefit is a matter of judgment based on the individual facts and circumstances evaluated in light of all available evidence as of the balance sheet date.

Contractual Obligations

The company's contractual cash payment obligations as of March 29, 2014 are set forth below (in thousands):

	Amounts Due Sellers From Acquisitions		Debt		Estimated Interest on Debt		Operating Leases		Total Contractual Cash Obligations
Less than 1 year	$	13,247	$	6,900	$	14,200	$	11,467	$	45,814
1-3 years	1,486		533		26,054		13,434		41,507
3-5 years	—		647,258		11,247		5,380		663,885
After 5 years	—		752		96		4,803		5,651
	$	14,733	$	655,443	$	51,597	$	35,084	$	756,857

The company has obligations to make $14.7 million of purchase price payments to the sellers of Stewart, Nieco, Spooner Vicars, Celfrost and Market Forge that represent deferred and contingent payments for these acquisitions.

As of March 29, 2014, the company had $647.0 million outstanding under its revolving credit line as part of its senior credit agreement. The average interest rate on this debt amounted to 1.64% at March 29, 2014. This facility matures in August of 2017. As of March 29, 2014, the company also has $8.1 million of debt outstanding under various foreign credit facilities. The estimated interest payments reflected in the table above assume that the level of debt and average interest rate on the company’s revolving credit line under its senior credit agreement does not change until the facility reaches maturity in August 2017. The estimated payments also assume that relative to the company’s foreign borrowings: all scheduled term loan payments are made; the level of borrowings does not change; and the average interest rates remain at their March 29, 2014 rates. Also reflected in the table above is $2.1 million of interest payments to be made related to the company’s interest rate swap agreements.

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The company’s projected benefit obligation under its defined benefit plans exceeded the plans’ assets by $15.0 million at the end of 2013.  The unfunded benefit obligations were comprised of a $0.4 million underfunding of the company's union plan, $5.2 million underfunding of the company’s Smithville plan, which was acquired as part of the Star acquisition, $0.6 million underfunding of the company’s Wrexham plan, which was acquired as part of the Lincat acquisition, and $8.8 million underfunding of the company's director plans.  In 2014, the company expects to make a minimum contribution of $0.9 million to the Smithville plan, as required by ERISA.  In 2014, the company expects to contribute $0.5 million to the Wrexham plan.

The company places purchase orders with its suppliers in the ordinary course of business. These purchase orders are generally to fulfill short-term manufacturing requirements of less than 90 days and most are cancelable with a restocking penalty. The company has no long-term purchase contracts or minimum purchase obligations with any supplier.

The company has no activities, obligations or exposures associated with off-balance sheet arrangements.

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Item 3.   Quantitative and Qualitative Disclosures About Market Risk 

Interest Rate Risk

The company is exposed to market risk related to changes in interest rates. The following table summarizes the maturity of the company’s debt obligations.

Twelve Month Period Ending	Variable Rate Debt
March 29, 2015	$	6,900
March 29, 2016	404
March 29, 2017	129
March 29, 2018	647,129
March 29, 2019 and thereafter	881
	$	655,443

On August 7, 2012, the company entered into a new senior secured multi-currency credit facility. Terms of the company’s senior credit agreement provide for $1.0 billion of availability under a revolving credit line. As of March 29, 2014, the company had $647.0 million of borrowings outstanding under this facility. The company also has $13.4 million in outstanding letters of credit as of March 29, 2014, which reduces the borrowing availability under the revolving credit line. Remaining borrowing availability under this facility was $339.6 million at March 29, 2014.

At March 29, 2014, borrowings under the senior secured credit facility were assessed at an interest rate 1.50% above LIBOR for long-term borrowings or at the higher of the Prime rate and the Federal Funds Rate. At March 29, 2014 the average interest rate on the senior debt amounted to 1.64%. The interest rates on borrowings under the senior secured credit facility may be adjusted quarterly based on the company’s indebtedness ratio on a rolling four-quarter basis. Additionally, a commitment fee, based upon the indebtedness ratio, is charged on the unused portion of the revolving credit line. This variable commitment fee amounted to 0.25% as of March 29, 2014.

In August 2006, the company completed its acquisition of Houno A/S in Denmark. This acquisition was funded in part with locally established debt facilities with borrowings in Danish Krone.  These facilities included a revolving credit facility and term loan. At March 29, 2014 these facilities amounted to $2.1 million in U.S. dollars, including $0.7 million outstanding under a revolving credit facility and $1.4 million under a term loan. The interest rate on the revolving credit facility is assessed at 1.25% above Euro LIBOR, which amounted to 2.70% on March 29, 2014. At March 29, 2014, the interest rate assessed on the term loan was 4.55%. The term loan matures in 2022.

In April 2008, the company completed its acquisition of Giga Grandi Cucine S.r.l in Italy. This acquisition was funded in part with locally established debt facilities with borrowings denominated in Euro.  At March 29, 2014 these facilities amounted to $0.7 million in U.S. dollars.  The interest rate on the credit facilities is variable based on the three-month Euro LIBOR. At March 29, 2014, the average interest rate on these facilities was approximately 3.86%. The facilities are secured by outstanding accounts receivable collectible within six months.

In October 2013, the company completed its acquisition of substantially all of the assets of Celfrost Innovations Pvt. Ltd. in India.  At the time of the acquisition a local credit facility, denominated in Indian Rupee, was established to fund local working capital needs. At March 29, 2014, the facility amounted to $0.9 million in U.S. dollars. At March 29, 2014, borrowings under the facility were assessed at an interest rate at 1.25% above the Reserve Bank of India's base rate for long-term borrowings. At March 29, 2014, the average interest rate on this facility was approximately 11.00%. 

In March 2014, Cozzini do Brazil LTDA entered into a local credit facility, denominated in Brazilian Real, to fund local working capital needs.   At March 29, 2014, the facility amounted to $4.4 million in U.S. dollars and was assessed an interest rate of 1.50% above the Brazilian central bank CDI Rate. At March 29, 2014, the interest rate assessed on this facility was 12.05%. This local credit facility matures on March 28, 2015.

The company believes that its current capital resources, including cash and cash equivalents, cash expected to be generated from operations, funds available from its current lenders and access to the credit and capital markets will be sufficient to finance its operations, debt service obligations, capital expenditures, product development and expenditures for the foreseeable future.

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The company has historically entered into interest rate swap agreements to effectively fix the interest rate on a portion of its outstanding debt. The agreements swap one-month LIBOR for fixed rates. As of March 29, 2014 the company had the following interest rate swaps in effect:

	Fixed
Notional	Interest	Effective	Maturity
Amount	Rate	Date	Date
$25,000,000	2.520%	2/23/2011	2/23/2016
$25,000,000	0.975%	7/18/2011	7/18/2014
$15,000,000	1.185%	9/12/2011	9/12/2016
$15,000,000	0.620%	9/12/2011	9/11/2014
$10,000,000	0.498%	2/11/2013	7/11/2015
$15,000,000	0.458%	2/11/2013	10/11/2015
$25,000,000	0.635%	2/11/2013	8/11/2016
$25,000,000	0.789%	2/11/2013	3/11/2017
$25,000,000	0.803%	2/11/2013	5/11/2017
$35,000,000	0.880%	2/11/2013	7/11/2017
$10,000,000	1.480%	9/11/2013	7/11/2017
$15,000,000	0.920%	3/11/2014	7/11/2017
$25,000,000	0.950%	3/11/2014	7/11/2017

The terms of the senior secured credit facility limit the ability of the company and its subsidiaries to, with certain exceptions: incur indebtedness; grant liens; engage in certain mergers, consolidations, acquisitions and dispositions; make restricted payments; and enter into certain transactions with affiliates; and require, among other things a maximum ratio of indebtedness to EBITDA of 3.5 and a fixed charge coverage ratio (as defined in the senior secured credit facility) of 1.25. The senior secured credit facility is secured by substantially all of the assets of Middleby Marshall, the company and the company's domestic subsidiaries and is unconditionally guaranteed by, subject to certain exceptions, the company and certain of the company's direct and indirect material domestic subsidiaries. The senior secured credit facility contains certain customary events of default, including, but not limited to, the failure to make required payments; bankruptcy and other insolvency events; the failure to perform certain covenants; the material breach of a representation or warranty; non-payment of certain other indebtedness; the entry of undischarged judgments against the company or any subsidiary for the payment of material uninsured amounts; the invalidity of the Company guarantee or any subsidiary guaranty; and a change of control of the company. The credit agreement also provides that if a material adverse change in the company’s business operations or conditions occurs, the lender could declare an event of default. Under terms of the agreement, a material adverse effect is defined as (a) a material adverse change in, or a material adverse effect upon, the operations, business properties, condition (financial and otherwise) or prospects of the company and its subsidiaries taken as a whole; (b) a material impairment of the ability of the company to perform under the loan agreements and to avoid any event of default; or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against the company of any loan document. A material adverse effect is determined on a subjective basis by the company's creditors. The potential loss on fair value for the company's debt obligations from a hypothetical 10% adverse change in quoted interest rates would not have a material impact on the company's financial position, results of operations and cash flows. At March 29, 2014, the company was in compliance with all covenants pursuant to its borrowing agreements.

Financing Derivative Instruments

The company has entered into interest rate swaps to fix the interest rate applicable to certain of its variable-rate debt. The agreements swap one-month LIBOR for fixed rates. The company has designated these swaps as cash flow hedges and all changes in fair value of the swaps are recognized in accumulated other comprehensive income. As of March 29, 2014, the fair value of these instruments was a liability of $1.0 million. The change in fair value of these swap agreements in the first three months of 2014 was a gain of $0.5 million, net of taxes. The potential net loss on fair value for such instruments from a hypothetical 10% adverse change in quoted interest rates would not have a material impact on the company's financial position, results of operations and cash flows.

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Foreign Exchange Derivative Financial Instruments

The company uses foreign currency forward purchase and sale contracts with terms of less than one year to hedge its exposure to changes in foreign currency exchange rates. The company’s primary hedging activities are to mitigate its exposure to changes in exchange rates on intercompany and third party trade receivables and payables. The company does not currently enter into derivative financial instruments for speculative purposes. In managing its foreign currency exposures, the company identifies and aggregates naturally occurring offsetting positions and then hedges residual balance sheet exposures. The potential net loss on fair value for such instruments from a hypothetical 10% adverse change in quoted foreign exchange rates would not have a material impact on the company's financial position, results of operations and cash flows. The following table summarizes the forward contracts outstanding at March 29, 2014. The fair value of the forward contracts was a loss of $0.1 million at the end of the first quarter of 2014.

Sell		Purchase		Maturity
10,000,000	British Pounds	12,072,046	Euro Dollars	June 27, 2014
7,600,000	British Pounds	9,179,853	Euro Dollars	June 27, 2014
5,000,000	British Pounds	5,966,801	Euro Dollars	June 27, 2014
5,500,000	Euro Dollars	7,570,750	US Dollars	June 27, 2014
10,000,000	Euro Dollars	13,826,000	US Dollars	June 27, 2014
164,203	Euro Dollars	214,055	US Dollars	March 31, 2014
210,000	Euro Dollars	318,182	Australian Dollars	March 31, 2014
92,000	US Dollars	105,383	Australian Dollars	April 30, 2014
369,469	Euro Dollars	481,750	US Dollars	April 30, 2014
237,900	Euro Dollars	205,593	British Pounds	April 30, 2014
157,367	Euro Dollars	205,254	US Dollars	May 31, 2014

34

Item 4. Controls and Procedures

The company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the company's Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the company's management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

As of March 29, 2014, the company carried out an evaluation, under the supervision and with the participation of the company's management, including the company's Chief Executive Officer and Chief Financial Officer, of the effectiveness of the company's disclosure controls and procedures. Based on the foregoing, the company's Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of this period. 

During the quarter ended March 29, 2014, there has been no change in the company's internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting.

35

PART II. OTHER INFORMATION

The company was not required to report the information pursuant to Items 1 through 6 of Part II of Form 10-Q for the three months endedMarch 29, 2014, except as follows:

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

c) Issuer Purchases of Equity Securities

	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan or Program	Maximum Number of Shares that May Yet be Purchased Under the Plan or Program
December 29 to January 25, 2014	—	$	—	—	1,035,544
January 26 to February 22, 2014	—	—		—	1,035,544
February 23 to March 29, 2014	155,211	285.31		155,211	880,333
Quarter ended March 29, 2014	155,211	$	285.31	155,211	880,333

In July 1998, the company's Board of Directors adopted a stock repurchase program and subsequently authorized the purchase of up to 1,800,000 common shares in open market purchases. During 2013, the company's Board of Directors authorized the purchase of an additional 1,000,000 common shares in open market purchases. As of March 29, 2014, the total number of shares authorized for repurchase under the program is 2,800,000. As of March 29, 2014, 1,919,667 shares had been purchased under the 1998 stock repurchase program.   

36

Item 6. Exhibits

Exhibits – The following exhibits are filed herewith:
Exhibit 10.1 –	Form of Restricted Performance Stock Agreement for The Middleby Corporation 2011 Long-Term Incentive Plan, incorporated by reference to Exhibit 10.1 to the company's Form 8-K filed on March 3, 2014.
Exhibit 31.1 –	Rule 13a-14(a)/15d -14(a) Certification of the Chief Executive Officer as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 31.2 –	Rule 13a-14(a)/15d -14(a) Certification of the Chief Financial Officer as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 32.1 –	Certification by the Principal Executive Officer of The Middleby Corporation Pursuant to Rule 13A-14(b) under the Exchange Act and Section 906 of the Sarbanes-Oxley Act of 2002(18 U.S.C. 1350).
Exhibit 32.2 –	Certification by the Principal Financial Officer of The Middleby Corporation Pursuant to Rule 13A-14(b) under the Exchange Act and Section 906 of the Sarbanes-Oxley Act of 2002(18 U.S.C. 1350).
Exhibit 101 –	Financial statements on Form 10-Q for the quarter ended March 29, 2014, filed on May 8, 2014, formatted in Extensive Business Reporting Language (XBRL); (i) condensed consolidated balance sheets, (ii) condensed consolidated statements of earnings, (iii) condensed statements of cash flows, (iv) notes to the condensed consolidated financial statements.

37

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		THE MIDDLEBY CORPORATION
		(Registrant)
Date:	May 8, 2014	By:	/s/  Timothy J. FitzGerald
			Timothy J. FitzGerald
			Vice President,
			Chief Financial Officer

38

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Selim A. Bassoul, certify that:

1. I have reviewed this report on Form 10-Q of The Middleby Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: May 8, 2014

/s/ Selim A. Bassoul

Selim A. Bassoul

Chairman, President and

Chief Executive Officer of The Middleby Corporation

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, Timothy J. FitzGerald, certify that:

1. I have reviewed this report on Form 10-Q of The Middleby Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: May 8, 2014

/s/ Timothy J. FitzGerald

Timothy J. FitzGerald

Chief Financial Officer of The Middleby Corporation

EX-32.1

EXHIBIT 32.1

CERTIFICATION BY THE PRINCIPAL EXECUTIVE OFFICER OF

THE MIDDLEBY CORPORATION

PURSUANT TO RULE 13A-14(b) UNDER THE EXCHANGE ACT AND

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. 1350)

This certification is being furnished pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

I, Selim A. Bassoul, Chairman, President and Chief Executive Officer (principal executive officer) of The Middleby Corporation (the “Registrant”), certify, to the best of my knowledge, based upon a review of the Quarterly Report on Form 10-Q for the period ended March 29, 2014 of the Registrant (the “Report”), that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and

(2) The information contained in the Report fairly presents, in all material aspects, the financial condition and results of operations of the Registrant.

Date: May 8, 2014

/s/ Selim A. Bassoul

Selim A. Bassoul

EX-32.2

EXHIBIT 32.2

CERTIFICATION BY THE PRINCIPAL EXECUTIVE OFFICER OF

THE MIDDLEBY CORPORATION

PURSUANT TO RULE 13A-14(b) UNDER THE EXCHANGE ACT AND

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. 1350)

This certification is being furnished pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

I, Selim A. Bassoul, Chairman, President and Chief Executive Officer (principal executive officer) of The Middleby Corporation (the “Registrant”), certify, to the best of my knowledge, based upon a review of the Quarterly Report on Form 10-Q for the period ended March 29, 2014 of the Registrant (the “Report”), that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and

(2) The information contained in the Report fairly presents, in all material aspects, the financial condition and results of operations of the Registrant.

Date: May 8, 2014

/s/ Timothy J. FitzGerald

Timothy J. FitzGerald

XML

Acquisitions and Purchase Accounting Estimated Fair Values of Assets Acquired and Liabilities Assumed for Viking Acquisition (Details) (Details) (Viking Range Corporation [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2012
Business Acquisition [Line Items]
Cash	$ 6,779
Cash	38,409
Property, plant and equipment	56,247
Goodwill	112,081
Other intangibles	197,000
Business Acquisition, Purchase Price Allocation, Current Assets, Prepaid Expense and Other Assets	13,469
Current liabilities	(53,088)
Other non-current liabilities	(2,387)
Net assets acquired and liabilities assumed	368,510
Scenario, Adjustment [Member]
Business Acquisition [Line Items]
Cash	(121)
Cash	(2,385)
Property, plant and equipment	(20,446)
Goodwill	(32,752)
Other intangibles	44,500
Business Acquisition, Purchase Price Allocation, Current Assets, Prepaid Expense and Other Assets	865
Current liabilities	(886)
Other non-current liabilities	(1)
Net assets acquired and liabilities assumed	(11,226)
as initially reported
Business Acquisition [Line Items]
Cash	6,900
Cash	40,794
Property, plant and equipment	76,693
Goodwill	144,833
Other intangibles	152,500
Business Acquisition, Purchase Price Allocation, Current Assets, Prepaid Expense and Other Assets	12,604
Current liabilities	(52,202)
Other non-current liabilities	(2,386)
Net assets acquired and liabilities assumed	$ 379,736

XML

Interest Rate Swaps in Effect (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 29, 2014
Interest Rate Swap 1
Debt Disclosure [Line Items]
Fixed Interest Rate	2.52%
Derivative, Inception Date	Feb. 23, 2011
Maturity	Feb. 23, 2016
Derivative, Notional Amount	$ 25,000,000
Interest Rate Swap 2
Debt Disclosure [Line Items]
Fixed Interest Rate	0.975%
Derivative, Inception Date	Jul. 18, 2011
Maturity	Jul. 18, 2014
Derivative, Notional Amount	25,000,000
Interest Rate Swap 3
Debt Disclosure [Line Items]
Fixed Interest Rate	1.185%
Derivative, Inception Date	Sep. 12, 2011
Maturity	Sep. 12, 2016
Derivative, Notional Amount	15,000,000
Interest Rate Swap 4
Debt Disclosure [Line Items]
Fixed Interest Rate	0.62%
Derivative, Inception Date	Sep. 12, 2011
Maturity	Sep. 11, 2014
Derivative, Notional Amount	15,000,000
Interest Rate Swap 5
Debt Disclosure [Line Items]
Fixed Interest Rate	0.498%
Derivative, Inception Date	Feb. 11, 2013
Maturity	Jul. 11, 2015
Derivative, Notional Amount	10,000,000
Interest Rate Swap 6
Debt Disclosure [Line Items]
Fixed Interest Rate	0.458%
Derivative, Inception Date	Feb. 11, 2013
Maturity	Oct. 11, 2015
Derivative, Notional Amount	15,000,000
Interest Rate Swap 7
Debt Disclosure [Line Items]
Fixed Interest Rate	0.60%
Derivative, Inception Date	Feb. 11, 2013
Maturity	Aug. 11, 2016
Derivative, Notional Amount	25,000,000
Interest Rate Swap 8
Debt Disclosure [Line Items]
Fixed Interest Rate	0.789%
Derivative, Inception Date	Feb. 11, 2013
Maturity	Mar. 11, 2017
Derivative, Notional Amount	25,000,000
Interest Rate Swap 9 [Member]
Debt Disclosure [Line Items]
Fixed Interest Rate	0.80%
Derivative, Inception Date	Feb. 11, 2013
Maturity	May 11, 2017
Derivative, Notional Amount	25,000,000
interest rate swap 10 [Member]
Debt Disclosure [Line Items]
Fixed Interest Rate	0.90%
Derivative, Inception Date	Feb. 11, 2013
Maturity	Jul. 11, 2017
Derivative, Notional Amount	35,000,000
interest rate swap 11 [Member]
Debt Disclosure [Line Items]
Fixed Interest Rate	1.50%
Derivative, Inception Date	Sep. 11, 2013
Maturity	Jul. 11, 2017
Derivative, Notional Amount	10,000,000
Interest Rate Swap 12 [Member]
Debt Disclosure [Line Items]
Fixed Interest Rate	0.90%
Derivative, Inception Date	Mar. 11, 2014
Maturity	Jul. 11, 2017
Derivative, Notional Amount	15,000,000
Interest Rate Swap 13 [Member]
Debt Disclosure [Line Items]
Fixed Interest Rate	1.00%
Derivative, Inception Date	Mar. 11, 2014
Maturity	Jul. 11, 2017
Derivative, Notional Amount	$ 25,000,000

XML

Inventories Inventories (Details) (USD $) In Thousands, unless otherwise specified	Mar. 29, 2014	Dec. 28, 2013
Inventory Disclosure [Abstract]
Raw materials and parts	$ 114,227	$ 110,310
Work-in-process	18,591	20,448
Finished goods	127,657	89,358
Inventory, Gross, Total	$ 260,475	$ 220,116

XML

Financing Arrangements Additional Information (Details) (USD $)	3 Months Ended
	Mar. 29, 2014	Dec. 28, 2013
Debt Disclosure [Line Items]
Line of Credit Facility, Interest Rate Description	1.00% above LIBOR for long-term borrowings or at the higher of the Prime rate and the Federal Funds Rate.
Credit facility, amount	$ 1,000,000,000
Credit facility, outstanding	647,000,000	568,600,000
Letter of credit, outstanding	13,400,000
Credit facility, remaining	339,600,000
Credit facility, additional interest rate above LIBOR	1.50%
Credit facility, average interest rate	1.64%
Variable commitment fee	0.25%
Term loan, amount	655,443,000	571,598,000
Indebtedness to EBITDA ratio	0
EBITDA to fixed charges ratio	0
Houno A/S
Debt Disclosure [Line Items]
Line of Credit Facility, Interest Rate Description	1.25% above Euro LIBOR
Credit facility, amount	2,100,000
Credit facility, additional interest rate above LIBOR	1.25%
Credit facility, outstanding	700,000
Term loan, amount	1,400,000
Credit facility, interest rate	2.70%
Term loan, maturity	2022
Term loan, interest rate	4.55%
Giga Grandi Cucine Srl
Debt Disclosure [Line Items]
Credit facility, amount	700,000
Credit facility, average interest rate	3.86%
Celfrost [Member]
Debt Disclosure [Line Items]
Line of Credit Facility, Interest Rate Description	0.0125
Credit facility, amount	900,000
Credit facility, average interest rate	11.00%
Cozzini Inc [Member]
Debt Disclosure [Line Items]
Line of Credit Facility, Interest Rate Description	0.015
Credit facility, amount	$ 4,400,000
Credit facility, average interest rate	12.05%

XML

Other Comprehensive Income Components of Other Comprehensive Income (Details) (USD $)	3 Months Ended
	Mar. 29, 2014	Mar. 30, 2013	Dec. 28, 2013
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax			$ 7,500,000
Net earnings	33,445,000	25,902,000
Currency Translation Adjustment	1,574,000	(4,684,000)
Pension liability adjustment, net of tax	57,000	166,000
Unrealized gain on interest rate swaps, net of tax	264,000	(306,000)
Comprehensive income	$ 35,226,000	$ 21,078,000

XML

Summary of Tax Years that Remain Subject to Examination in Company Major Tax Jurisdictions (Detail)	3 Months Ended
	Mar. 29, 2014
United States | Federal | Minimum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2008
United States | Federal | Maximum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2012
United States | States | Minimum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2004
United States | States | Maximum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2012
Australia
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2012
Brazil | Minimum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2010
Brazil | Maximum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2012
Canada | Minimum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2009
Canada | Maximum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2012
China | Minimum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2003
China | Maximum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2012
Denmark | Minimum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2009
Denmark | Maximum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2012
France
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2012
Germany
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2012
Italy | Minimum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2009
Italy | Maximum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2012
Luxembourg
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2012
Mexico | Minimum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2007
Mexico | Maximum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2012
Philippines | Minimum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2008
Philippines | Maximum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2012
South Korea | Minimum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2006
South Korea | Maximum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2012
Spain | Minimum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2008
Spain | Maximum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2012
Taiwan | Minimum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2008
Taiwan | Maximum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2012
United Kingdom | Minimum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2008
United Kingdom | Maximum
Income Tax Examination [Line Items]
Income Tax Examination, Years Subject to Examination	2012

XML

Summary of Fair Value of Interest Rate Swaps (Details) (Interest Rate Swap [Member], Other Noncurrent Liabilities, USD $) In Thousands, unless otherwise specified	Mar. 29, 2014	Dec. 28, 2013
Interest Rate Swap [Member] | Other Noncurrent Liabilities
Derivatives, Fair Value [Line Items]
Fair value	$ (1,000)	$ (1,471)

XML

Inventories (Tables)

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [Abstract]

Schedule of Inventory, Current

Inventories at March 29, 2014 and December 28, 2013 are as follows: 

	Mar 29, 2014		Dec 28, 2013
	(in thousands)
Raw materials and parts	$	114,227	$	110,310
Work-in-process	18,591		20,448
Finished goods	127,657		89,358
	$	260,475	$	220,116

XML

Accrued Expenses (Details) (USD $) In Thousands, unless otherwise specified	Mar. 29, 2014	Dec. 28, 2013
Disclosure Accrued Expenses [Abstract]
Accrued payroll and related expenses	$ 50,282	$ 56,544
Standard Product Warranty Accrual, Current	22,794	23,306
Advanced customer deposits	31,955	31,276
Accrued warranty	22,794	23,306
Accrued product liability and workers compensation	15,404	15,355
Accrued customer rebates	11,849	26,947
Accrued agent commission	10,547	9,767
Contingent consideration	9,893	8,628
Accrued professional services	6,784	7,441
Sales and Excise Tax Payable, Current	5,654	5,762
Other accrued expenses	28,080	28,433
Accrued expenses	$ 193,242	$ 213,459

XML

Estimated Fair Values of Assets Acquired and Liabilities Assumed for Wunder Bar Acquisition (Details) (USD $)			0 Months Ended									0 Months Ended
	Mar. 29, 2014	Dec. 28, 2013	Dec. 17, 2013 Wunder-Bar [Member]	Dec. 17, 2013 as initially reported	Dec. 17, 2013 as initially reported Wunder-Bar [Member]	Dec. 17, 2013 Scenario, Adjustment [Member] Wunder-Bar [Member]	Dec. 17, 2013 Tangible Assets and Liability Accounts [Member] Book and Tax Basis Difference [Member] Wunder-Bar [Member]	Dec. 17, 2013 Intangible Assets [Member] Book and Tax Basis Difference [Member] Wunder-Bar [Member]	Mar. 29, 2014 Commercial Foodservice Equipment Group [Member]	Dec. 28, 2013 Commercial Foodservice Equipment Group [Member]	Dec. 17, 2013 Commercial Foodservice Equipment Group [Member] Trade Names [Member] Wunder-Bar [Member]	Dec. 17, 2013 Customer Relationships [Member] Commercial Foodservice Equipment Group [Member] Wunder-Bar [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Net							$ 300,000	$ 11,100,000
Cash			857,000		857,000	0
Payments to Acquire Businesses, Net of Cash Acquired			74,100,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets Current			50,000	50,000		0
Current assets			13,158,000		13,127,000	31,000
Property, plant and equipment			1,736,000		1,735,000	1,000
Goodwill	701,844,000	687,955,000	45,024,000		45,056,000	(32,000)			450,138,000	444,321,000
Other intangibles			30,000,000		30,000,000	0					12,500,000	17,500,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities			(5,013,000)		5,013,000	0
Long-term deferred tax liability			(10,811,000)		10,811,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other			(1,000)		1,000	0
Net assets acquired and liabilities assumed			$ 75,000,000		$ 75,000,000	$ 0
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life												9 years

XML

Acquisitions and Purchase Accounting Estimated Fair Values of Assets Acquired and Liabilities Assumed for Stewart Acquisition (Details) (USD $)			0 Months Ended
	Mar. 29, 2014	Dec. 28, 2013	Sep. 05, 2012 Stewart [Member]	Sep. 05, 2012 Stewart [Member] as initially reported	Sep. 05, 2012 Stewart [Member] Scenario, Adjustment [Member]
Business Acquisition [Line Items]
Cash			$ 244,000	$ 0	$ 244,000
Current assets			9,917,000	11,839,000	(1,922,000)
Property, plant and equipment			1,236,000	653,000	583,000
Business Combination, Provisional Information Adjustment, Working Capital			1,300,000
Goodwill			15,746,000	17,886,000	(2,140,000)
Other intangibles			10,880,000	6,850,000	4,030,000
Current liabilities			(6,739,000)	(5,228,000)	(1,511,000)
Other non-current liabilities			(4,587,000)	(4,000,000)	(587,000)
Consideration paid at closing			26,697,000	28,000,000	(1,303,000)
Business Combination, Contingent Consideration	9,893,000	8,628,000	4,587,000	4,000,000	587,000
Net assets acquired and liabilities assumed			$ 31,284,000	$ 32,000,000	$ (716,000)

XML

Long-Term Debt (Details) (USD $) In Thousands, unless otherwise specified	Mar. 29, 2014	Dec. 28, 2013
Debt Disclosure [Line Items]
Senior secured revolving credit line	$ 647,000	$ 568,600
Other Long-term Debt	309	318
Total debt	655,443	571,598
Less: Current maturities of long-term debt	6,900	1,408
Long-term debt	648,543	570,190
Foreign
Debt Disclosure [Line Items]
Foreign loans	$ 8,134	$ 2,680

XML

Summary of Results of Operations for Business Segments (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 29, 2014		Mar. 30, 2013		Dec. 28, 2013
Segment Reporting Information [Line Items]
Net sales	$ 372,478	[1]	$ 327,451	[1]
Income from operations	55,933		42,195
Depreciation and amortization expense	10,521		14,023
Net capital expenditures	3,231		3,923
Total assets	1,915,842		1,697,754		1,819,206
Commercial Foodservice
Segment Reporting Information [Line Items]
Net sales	234,050		197,362
Income from operations	54,962	[1]	49,750
Depreciation and amortization expense	4,884	[1]	4,375
Net capital expenditures	2,243	[1]	1,502
Total assets	1,020,845		876,935
Food Processing
Segment Reporting Information [Line Items]
Net sales	75,586		71,438
Income from operations	12,122	[1]	11,480
Depreciation and amortization expense	2,121	[1]	2,025
Net capital expenditures	449	[1]	848
Total assets	308,442		313,601
Residential Kitchen [Member]
Segment Reporting Information [Line Items]
Net sales	62,842	[1]	58,651
Income from operations	207	[1]	(7,241)
Depreciation and amortization expense	3,091	[1]	7,219
Net capital expenditures	539	[1]	1,487
Total assets	491,465		436,250
Corporate and Other
Segment Reporting Information [Line Items]
Net sales	0		0
Income from operations	(11,358)		(11,794)
Depreciation and amortization expense	425		404
Net capital expenditures	0		86
Total assets	$ 95,090		$ 70,968

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

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Inventories Additional Information (Details) (USD $) In Millions, unless otherwise specified	Mar. 29, 2014	Dec. 28, 2013
LIFO Method Related Items [Abstract]
Inventory under the LIFO method	$ 24.7	$ 22.3
Percentage of LIFO inventory to total inventory	9.50%	10.10%

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Recently Issued Accounting Standards

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [Abstract]

Recently Issued Accounting Standards

Recently Issued Accounting Standards

In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities". This update provides clarification on the disclosure requirements related to recognized derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and lending transactions. This update is effective for annual reporting periods and corresponding interim periods beginning on or after January 1, 2013, and retrospective application is required. The adoption of this guidance did not have an impact on the company's financial position, results of operations and cash flows.

In March 2013, the FASB issued ASU No. 2013-02, “Comprehensive Income - Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income".  ASU No. 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. Additionally, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The guidance does not change the items reported in other comprehensive income or when an item of other comprehensive income is reclassified to net income. The company adopted the provisions of ASU No. 2013-02 on December 30, 2012.  As this guidance only revises the presentation of comprehensive income, there was no impact to the company’s financial position, results of operations or cash flows.

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Long-Lived Assets by Major Geographic Region (Details) (USD $) In Thousands, unless otherwise specified	Mar. 29, 2014	Dec. 28, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 138,914	$ 160,560
United States and Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	115,537	141,792
Asia
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	5,156	3,355
Europe and Middle East
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	16,291	14,073
Latin America
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	1,930	1,340
Total International
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 23,377	$ 18,768

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Acquisitions and Purchase Accounting Estimated Fair Values of Assets Acquired and Liabilities Assumed for Market Forge Acquisition (Details) (USD $) In Thousands, unless otherwise specified	Mar. 29, 2014	Dec. 28, 2013	Jan. 07, 2014 Market Forge [Member] as initially reported
Business Acquisition [Line Items]
Property, plant and equipment			$ 120
Current assets			2,051
Goodwill			5,252
Other intangibles			4,191
Current liabilities			4,374
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Initial Consideration, Net			7,240
Business Acquisition, Deferred Payments			3,000
Business Combination, Contingent Consideration	9,893	8,628	1,374
Net assets acquired and liabilities assumed			$ 11,614

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Financing Arrangements (Tables)

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [Abstract]

Schedule of Long-term Debt Instruments

	Mar 29, 2014		Dec 28, 2013
	(in thousands)
Senior secured revolving credit line	$	647,000	$	568,600
Foreign loans	8,134		2,680
Other debt arrangement	309		318
Total debt	$	655,443	$	571,598
Less:  Current maturities of long-term debt	6,900		1,408
Long-term debt	$	648,543	$	570,190

Carrying Value And Fair Value Of Long Term Debt, Disclosure

The carrying value and estimated aggregate fair value, a level 2 measurement, based primarily on market prices, of debt is as follows (in thousands):

	Mar 29, 2014				Dec 28, 2013
	Carrying Value		Fair Value		Carrying Value		Fair Value
Total debt	$	655,443	$	655,443	$	571,598	$	571,598

Schedule of Interest Rate Derivatives

The agreements swap one-month LIBOR for fixed rates. As of March 29, 2014, the company had the following interest rate swaps in effect:

	Fixed
Notional	Interest	Effective	Maturity
Amount	Rate	Date	Date
$25,000,000	2.520%	2/23/2011	2/23/2016
$25,000,000	0.975%	7/18/2011	7/18/2014
$15,000,000	1.185%	9/12/2011	9/12/2016
$15,000,000	0.620%	9/12/2011	9/11/2014
$10,000,000	0.498%	2/11/2013	7/11/2015
$15,000,000	0.458%	2/11/2013	10/11/2015
$25,000,000	0.635%	2/11/2013	8/11/2016
$25,000,000	0.789%	2/11/2013	3/11/2017
$25,000,000	0.803%	2/11/2013	5/11/2017
$35,000,000	0.880%	2/11/2013	7/11/2017
$10,000,000	1.480%	9/11/2013	7/11/2017
$15,000,000	0.920%	3/11/2014	7/11/2017
$25,000,000	0.950%	3/11/2014	7/11/2017

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Warranty Costs (Tables)

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [Abstract]

Product Warranty Table Disclosure

A rollforward of the warranty reserve is as follows:

	Three Months Ended
	Mar 29, 2014
	(in thousands)
Beginning balance	$	23,306
Warranty reserve related to acquisitions	211
Warranty expense	8,806
Warranty claims	(9,529		)
Ending balance	$	22,794

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Forward and Option Purchase Contracts Outstanding (Details) In Thousands, unless otherwise specified	3 Months Ended																3 Months Ended
	Mar. 29, 2014 Currency, British Pound Sterling Derivative Instrument 1 GBP (£)	Mar. 29, 2014 Currency, British Pound Sterling Derivative Instrument 2 GBP (£)	Mar. 29, 2014 Currency, British Pound Sterling Derivative Instrument 3 GBP (£)	Mar. 29, 2014 Currency, British Pound Sterling Derivative Instrument 10 GBP (£)	Mar. 29, 2014 Currency, Euro Derivative Instrument 1 EUR (€)	Mar. 29, 2014 Currency, Euro Derivative Instrument 2 EUR (€)	Mar. 29, 2014 Currency, Euro Derivative Instrument 3 EUR (€)	Mar. 29, 2014 Currency, Euro Derivative Instrument 4 EUR (€)	Mar. 29, 2014 Currency, Euro Derivative Instrument 5 EUR (€)	Mar. 29, 2014 Currency, Euro Derivative Instrument 6 EUR (€)	Mar. 29, 2014 Currency, Euro Derivative Instrument 7 EUR (€)	Mar. 29, 2014 Currency, Euro Derivative Instrument 9 EUR (€)	Mar. 29, 2014 Currency, Euro Derivative Instrument 10 EUR (€)	Mar. 29, 2014 Currency, Euro Derivative Instrument 11 EUR (€)	Mar. 29, 2014 Australia, Dollars Derivative Instrument 7 AUD	Mar. 29, 2014 Australia, Dollars Derivative Instrument 8 AUD	Mar. 29, 2014 Currency, U.S. Dollar Derivative Instrument 4 USD ($)	Mar. 29, 2014 Currency, U.S. Dollar Derivative Instrument 5 USD ($)	Mar. 29, 2014 Currency, U.S. Dollar Derivative Instrument 6 USD ($)	Mar. 29, 2014 Currency, U.S. Dollar Derivative Instrument 8 USD ($)	Mar. 29, 2014 Currency, U.S. Dollar Derivative Instrument 9 USD ($)	Mar. 29, 2014 Currency, U.S. Dollar Derivative Instrument 11 USD ($)
Derivative [Line Items]
Derivative, Notional Amount	£ 10,000,000	£ 7,600,000	£ 5,000,000	£ 205,593	€ 12,072,046	€ 9,179,853	€ 5,966,801	€ 5,500,000	€ 10,000,000	€ 164,203	€ 210,000	€ 369,469	€ 237,900	€ 157,367	318,182	105,383	$ 7,570,750	$ 13,826,000	$ 214,055	$ 92,000	$ 481,750	$ 205,254
Maturity	Jun. 27, 2014	Jun. 27, 2014	Jun. 27, 2014	Apr. 30, 2014	Jun. 27, 2014	Jun. 27, 2014	Jun. 27, 2014	Jun. 27, 2014	Jun. 27, 2014	Mar. 31, 2014	Mar. 31, 2014	Apr. 30, 2014	Apr. 30, 2014	May 31, 2014	Mar. 31, 2014		Jun. 27, 2014	Jun. 27, 2014	Mar. 31, 2014	Apr. 30, 2014	Apr. 30, 2014	May 31, 2014

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Acquisitions and Purchase Accounting Estimated Fair Values of Assets Acquired and Liabilities Assumed for Distributors 2014 Acquisition (Details) (Details) (Distributors 2014 [Member], USD $) In Thousands, unless otherwise specified	Jan. 31, 2014
Business Acquisition [Line Items]
Business Combinations, Preexisting Relationship, Liability Forgiveness	$ (5,971)
as initially reported
Business Acquisition [Line Items]
Current assets	35,909
Property, plant and equipment	2,000
Goodwill	7,552
Current liabilities	1,005
Net assets acquired and liabilities assumed	44,456
Business Combinations, Preexisting Relationship, Liability Forgiveness	(5,971)
Business Acquisition Cost Of Acquired Entity Consideration Paid	$ 38,485

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Financial Instruments (Tables)

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [Abstract]

Foreign Exchange Transaction

The fair value of the forward contracts was a loss of $0.1 million at the end of the first quarter of 2014.

Sell		Purchase		Maturity
10,000,000	British Pounds	12,072,046	Euro Dollars	June 27, 2014
7,600,000	British Pounds	9,179,853	Euro Dollars	June 27, 2014
5,000,000	British Pounds	5,966,801	Euro Dollars	June 27, 2014
5,500,000	Euro Dollars	7,570,750	US Dollars	June 27, 2014
10,000,000	Euro Dollars	13,826,000	US Dollars	June 27, 2014
164,203	Euro Dollars	214,055	US Dollars	March 31, 2014
210,000	Euro Dollars	318,182	Australian Dollars	March 31, 2014
92,000	US Dollars	105,383	Australian Dollars	April 30, 2014
369,469	Euro Dollars	481,750	US Dollars	April 30, 2014
237,900	Euro Dollars	205,593	British Pounds	April 30, 2014
157,367	Euro Dollars	205,254	US Dollars	May 31, 2014

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following tables summarize the company’s fair value of interest rate swaps (in thousands):

	Condensed Consolidated Balance Sheet Presentation	Mar 29, 2014			Dec 28, 2013
Fair value	Other non-current liabilities	$	(1,000	)	$	(1,471	)

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The impact on earnings from interest rate swaps was as follows (in thousands):

		Three Months Ended
	Presentation of Gain/(loss)	Mar 29, 2014			Mar 30, 2013
Gain/(loss) recognized in accumulated other comprehensive income	Other comprehensive income	$	(103	)	$	(901	)
Gain/(loss) reclassified from accumulated other comprehensive income (effective portion)	Interest expense	$	(543	)	$	(391	)
Gain/(loss) recognized in income (ineffective portion)	Other expense	$	31		$	(5	)

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Segment Information (Tables)

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [Abstract]

Net Sales Summary By Segment

Net Sales Summary

(dollars in thousands)

	Three Months Ended
	Mar 29, 2014				Mar 30, 2013
	Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	234,050	62.8	%	$	197,362	60.3	%
Food Processing	75,586		20.3		71,438		21.8
Residential Kitchen	62,842		16.9		58,651		17.9
Total	$	372,478	100.0	%	$	327,451	100.0	%

Schedule of Segment Reporting Information, by Segment

The following table summarizes the results of operations for the company's business segments(1) (in thousands):

	Commercial  Foodservice		Food Processing		Residential Kitchen			Corporate and Other(2)			Total
Three Months Ended March 29, 2014
Net sales	$	234,050	$	75,586	$	62,842		$	—		$	372,478
Income (loss) from operations	54,962		12,122		207			(11,358		)	55,933
Depreciation and amortization expense	4,884		2,121		3,091			425			10,521
Net capital expenditures	2,243		449		539			—			3,231
Total assets	$	1,020,845	$	308,442	$	491,465		$	95,090		$	1,915,842
Three Months Ended March 30, 2013
Net sales	$	197,362	$	71,438	$	58,651		$	—		$	327,451
Income (loss) from operations	49,750		11,480		(7,241		)	(11,794		)	42,195
Depreciation and amortization expense	4,375		2,025		7,219			404			14,023
Net capital expenditures	1,502		848		1,487			86			3,923
Total assets	$	876,935	$	313,601	$	436,250		$	70,968		$	1,697,754

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

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

Schedule of Entity-Wide Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country

Long-lived assets, not including goodwill and other intangibles (in thousands):

	Mar 29, 2014		Mar 30, 2013
United States and Canada	$	115,537	$	141,792
Asia	5,156		3,355
Europe and Middle East	16,291		14,073
Latin America	1,930		1,340
Total international	$	23,377	$	18,768
	$	138,914	$	160,560

Schedule of Entity-Wide Information, Revenue from External Customers by Products and Services

Net sales (in thousands):

	Three Months Ended
	Mar 29, 2014		Mar 30, 2013
United States and Canada	$	259,100	$	242,057
Asia	33,806		20,386
Europe and Middle East	59,805		42,464
Latin America	19,767		22,544
Total international	$	113,378	$	85,394
	$	372,478	$	327,451

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Litigation Matters

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [Abstract]

Litigation Matters

Litigation Matters

From time to time, the company is subject to proceedings, lawsuits and other claims related to products, suppliers, employees, customers and competitors. The company maintains insurance to partially cover product liability, workers compensation, property and casualty, and general liability matters.  The company is required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable losses.  A determination of the amount of accrual required, if any, for these contingencies is made after assessment of each matter and the related insurance coverage.  The accrual requirement may change in the future due to new developments or changes in approach such as a change in settlement strategy in dealing with these matters.  The company does not believe that any pending litigation will have a material effect on its financial condition, results of operations or cash flows.

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Summary of Significant Accounting Policies Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 29, 2014	Mar. 30, 2013	Dec. 28, 2013
Significant Accounting Policies [Line Items]
Non-cash share-based compensation expense	$ 1,938,000	$ 2,965,000
Unrecognized tax benefits related to federal, state and foreign taxes			12,700,000
Unrecognized tax benefits related to federal, state and foreign taxes of which would impact the effective tax rate if recognized			11,100,000
Unrecognized tax benefits, accrued interest			2,000,000
Unrecognized tax benefits, penalties			1,800,000
Recognized Tax Expense	700,000
Amount of unrecognized tax benefits that may be recognized over the next twelve months	3,400,000
Interest paid	3,700,000	3,100,000
Income tax payments	6,800,000	8,400,000
Restricted Stock [Member]
Significant Accounting Policies [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	120,269
Grant date fair value	$ 31,700,000

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Acquisitions and Purchase Accounting Estimated Fair Values of Assets Acquired and Liabilities Assumed for Distributors Acquisition (Details) (Distributors [Member], USD $) In Thousands, unless otherwise specified	Mar. 29, 2014	Jun. 29, 2013
Business Acquisition [Line Items]
Current assets		$ 19,418
Property, plant and equipment		1,318
Goodwill		3,681
Current liabilities		(804)
Net assets acquired and liabilities assumed		23,613
Business Combinations, Preexisting Relationship, Liability Forgiveness	(8,697)	(8,697)
Business Acquisition Cost Of Acquired Entity Consideration Paid		14,916
as initially reported
Business Acquisition [Line Items]
Current assets		21,390
Property, plant and equipment		1,318
Goodwill		1,709
Current liabilities		(804)
Net assets acquired and liabilities assumed		23,613
Business Combinations, Preexisting Relationship, Liability Forgiveness		(8,697)
Business Acquisition Cost Of Acquired Entity Consideration Paid		14,916
Scenario, Adjustment [Member]
Business Acquisition [Line Items]
Current assets		(1,972)
Property, plant and equipment		0
Goodwill		1,972
Current liabilities		0
Net assets acquired and liabilities assumed		0
Business Combinations, Preexisting Relationship, Liability Forgiveness		0
Business Acquisition Cost Of Acquired Entity Consideration Paid		$ 0

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Carrying Value and Estimated Aggregate Fair Value of Debt (Details) (USD $) In Thousands, unless otherwise specified	Mar. 29, 2014	Dec. 28, 2013
Disclosure Carrying Value And Estimated Aggregate Fair Value Of Debt [Abstract]
Carrying Value	$ 655,443	$ 571,598
Fair Value	$ 655,443	$ 571,598

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Mar. 29, 2014	Dec. 28, 2013
Current assets:
Cash and cash equivalents	$ 39,050	$ 36,894
Accounts receivable, net of reserve for doubtful accounts of $8,117 and $6,987	224,193	205,264
Inventories, net	260,475	220,116
Prepaid expenses and other	32,863	32,322
Prepaid Taxes	24,201	801
Current deferred taxes	48,489	50,337
Total current assets	629,271	545,734
Property, plant and equipment, net of accumulated depreciation of $75,893 and $73,329	127,239	125,457
Goodwill	701,844	687,955
Other intangibles	445,813	447,944
Long-term deferred tax assets	2,870	1,641
Other assets	8,805	10,475
Total assets	1,915,842	1,819,206
Current liabilities:
Current maturities of long-term debt	6,900	1,408
Accounts payable	100,701	96,518
Accrued expenses	193,242	213,459
Total current liabilities	300,843	311,385
Long-term debt	648,543	570,190
Long-term deferred tax liability	71,706	61,433
Other non-current liabilities	38,477	37,851
Stockholders' equity:
Preferred stock, $0.01 par value; nonvoting; 2,000,000 shares authorized; none issued
Common stock, $0.01 par value; 47,500,000 shares authorized; 23,906,472 and 23,786,203 shares issued in 2014 and 2013, respectively	144	144
Paid-in capital	295,212	268,229
Treasury stock, at cost; 4,816,912 and 4,661,701 shares in 2014 and 2013, respectively	(196,026)	(151,743)
Retained earnings	763,797	730,352
Accumulated other comprehensive loss	(6,854)	(8,635)
Total stockholders' equity	856,273	838,347
Total liabilities and stockholders' equity	$ 1,915,842	$ 1,819,206

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Other Comprehensive Income Changes in accumulated other comprehensive income (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 29, 2014	Mar. 30, 2013
Accumulated Other Comprehensive Income/(Loss) [Line Items]
Currency Translation Adjustment	$ 1,574	$ (4,684)
Accumulated Other Comprehensive Income [Roll Forward]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(8,635)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	1,760
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax	(57)	(166)
Reclassification from accumulated other comprehensive income, current period, net of tax	21
Other Comprehensive Income (Loss), before Reclassifications, before Tax	1,781
Accumulated Other Comprehensive Income (Loss), Net of Tax	(6,854)
Accumulated Translation Adjustment [Member]
Accumulated Other Comprehensive Income/(Loss) [Line Items]
Currency Translation Adjustment	1,574
Accumulated Other Comprehensive Income [Roll Forward]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(5,885)
Reclassification from accumulated other comprehensive income, current period, net of tax	0
Other Comprehensive Income (Loss), before Reclassifications, before Tax	1,574
Accumulated Other Comprehensive Income (Loss), Net of Tax	(4,311)
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income [Roll Forward]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(2,120)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax	57
Reclassification from accumulated other comprehensive income, current period, net of tax	0
Other Comprehensive Income (Loss), before Reclassifications, before Tax	(57)
Accumulated Other Comprehensive Income (Loss), Net of Tax	(2,177)
Interest Rate Swap [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income [Roll Forward]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(630)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	243
Reclassification from accumulated other comprehensive income, current period, net of tax	21
Other Comprehensive Income (Loss), before Reclassifications, before Tax	264
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (366)

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 29, 2014

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

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. 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 2013 Form 10-K. The company’s interim results are not necessarily indicative of future full year results for the fiscal year 2014. 

In the opinion of management, the financial statements contain all adjustments necessary to present fairly the financial position of the company as of March 29, 2014 and December 28, 2013, and the results of operations for the three months endedMarch 29, 2014 and March 30, 2013 and cash flows for the three months endedMarch 29, 2014 and March 30, 2013.

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 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 $1.9 million and $3.0 million for the first quarter periods ended March 29, 2014 and March 30, 2013, respectively.

During the first quarter ended March 29, 2014, the company issued 120,269 restricted shares under its 2011 Stock Incentive Plan. These amounts are contingent on the attainment of certain performance objectives. The aggregate grant-date fair value of these awards was $31.7 million, based on the closing share price of the company's stock at the date of the grant.

C) Income Taxes

As of December 28, 2013, the total amount of liability for unrecognized tax benefits related to federal, state and foreign taxes was approximately $12.7 million (of which $11.1 million would impact the effective tax rate if recognized) plus approximately $2.0 million of accrued interest and $1.8 million of penalties. The company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. As of March 29, 2014, the company recognized a tax expense of $0.7 million for unrecognized tax benefits related to current year tax exposures.

It is reasonably possible that the amounts of unrecognized tax benefits associated with state, federal and foreign tax positions may decrease over the next twelve months due to expiration of a statute or completion of an audit. The company believes that it is reasonably possible that approximately $3.4 million of its currently remaining unrecognized tax benefits may be recognized over the next twelve months as a result of lapses of statutes of limitations.

A summary of the tax years that remain subject to examination in the company’s major tax jurisdictions are: 

United States - federal	2008 – 2013
United States - states	2004 – 2013
Australia	2011 – 2013
Brazil	2010 – 2013
Canada	2009 – 2013
China	2003 – 2013
Czech Republic	2013
Denmark	2009 – 2013
France	2011 – 2013
Germany	2011 – 2013
India	2013
Italy	2009 – 2013
Luxembourg	2011 – 2013
Mexico	2007 – 2013
Philippines	2009 – 2013
South Korea	2007 – 2011
Spain	2008 – 2013
Taiwan	2008 – 2012
United Kingdom	2009 – 2013

D) Fair Value Measures

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 on our 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 March 29, 2014
Financial Assets:
Pension plans	$	27,791	$	752	$	—	$	28,543
Financial Liabilities:
Interest rate swaps	$	—	$	1,000	$	—	$	1,000
Contingent consideration	$	—	$	—	$	10,711	$	10,711
As of December 28, 2013
Financial Assets:
Pension plans	$	27,875	$	621	$	—	$	28,496
Financial Liabilities:
Interest rate swaps	$	—	$	1,471	$	—	$	1,471
Contingent consideration	$	—	$	—	$	10,063	$	10,063

The contingent consideration at March 29, 2014 relates to the earnout provisions recorded in conjunction with the acquisitions of Stewart, Nieco, Spooner Vicars and Market Forge.

The contingent consideration as of December 28, 2013 relates to the earnout provisions recorded in conjunction with the acquisitions of Stewart, Nieco and Spooner Vicars.

The earnout provisions associated with these acquisitions are based upon performance measurements related to sales and earnings of the acquired businesses, as defined in the respective purchase agreements. On a quarterly basis the company assesses the projected results for each of the acquired businesses in comparison to the earnout targets and adjusts the liability accordingly.

E)    Consolidated Statements of Cash Flows

Cash paid for interest was $3.7 million and $3.1 million for the three months endedMarch 29, 2014 and March 30, 2013, respectively. Cash payments totaling $6.8 million and $8.4 million were made for income taxes for the three months endedMarch 29, 2014 and March 30, 2013, respectively.

XML

Financial Instruments Additional Information (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 29, 2014
Derivative [Line Items]
Fair value of interest rate swaps liability	$ 1.0
Maximum
Derivative [Line Items]
Loss in fair value of interest rate swaps	0.5
Foreign Exchange Forward
Derivative [Line Items]
Fair value of the forward contracts liability	$ (0.1)

XML

Acquisitions and Purchase Accounting Additional Information (Details) (USD $)	0 Months Ended				0 Months Ended				3 Months Ended		0 Months Ended	3 Months Ended		3 Months Ended		0 Months Ended	3 Months Ended		3 Months Ended		0 Months Ended	3 Months Ended		3 Months Ended		0 Months Ended				0 Months Ended			0 Months Ended
	Dec. 17, 2013 Market Forge [Member]	Oct. 15, 2013 Market Forge [Member]	Jan. 07, 2014 Market Forge [Member]	Jan. 07, 2014 Market Forge [Member] as initially reported	Jan. 07, 2014 Market Forge [Member] Commercial Foodservice Backlog [Member]	Jan. 07, 2014 Market Forge [Member] Commercial Foodservice Customer Relationships [Member]	Jan. 07, 2014 Market Forge [Member] Commercial Foodservice Developed Technology	Mar. 14, 2012 Baker	Mar. 29, 2014 Baker Customer Relationships [Member]	Mar. 14, 2012 Baker Customer Relationships [Member]	Sep. 05, 2012 Stewart [Member]	Mar. 29, 2014 Stewart [Member] Food Processing Backlog [Member]	Sep. 05, 2012 Stewart [Member] Food Processing Backlog [Member]	Mar. 29, 2014 Stewart [Member] Food Processing Customer Relationships [Member]	Sep. 05, 2012 Stewart [Member] Food Processing Customer Relationships [Member]	Oct. 31, 2012 Nieco Corporation [Member]	Mar. 29, 2014 Nieco Corporation [Member] Commercial Foodservice Backlog [Member]	Oct. 31, 2012 Nieco Corporation [Member] Commercial Foodservice Backlog [Member]	Mar. 29, 2014 Nieco Corporation [Member] Commercial Foodservice Customer Relationships [Member]	Oct. 31, 2012 Nieco Corporation [Member] Commercial Foodservice Customer Relationships [Member]	Dec. 31, 2012 Viking Range Corporation [Member]	Mar. 29, 2014 Viking Range Corporation [Member] Residential Kitchen [Member] Backlog [Member]	Dec. 31, 2012 Viking Range Corporation [Member] Residential Kitchen [Member] Backlog [Member]	Mar. 29, 2014 Viking Range Corporation [Member] Residential Kitchen [Member] Customer Relationships [Member]	Dec. 31, 2012 Viking Range Corporation [Member] Residential Kitchen [Member] Customer Relationships [Member]	Jun. 29, 2013 Distributors [Member]	Mar. 29, 2014 Distributors [Member]	Jun. 29, 2013 Distributors [Member] Measurement Period Adjustments	Jun. 29, 2013 Distributors [Member] as initially reported	Oct. 15, 2013 Celfrost [Member]	Oct. 15, 2013 Celfrost [Member] Measurement Period Adjustments	Oct. 15, 2013 Celfrost [Member] as initially reported	Oct. 15, 2013 Celfrost [Member] Commercial Foodservice Backlog [Member]	Oct. 15, 2013 Celfrost [Member] Commercial Foodservice Customer Relationships [Member]	Jan. 31, 2014 Distributors 2014 [Member]	Jan. 31, 2014 Distributors 2014 [Member] as initially reported	Jan. 07, 2014 Trade Names [Member] Market Forge [Member] Commercial Foodservice	Sep. 05, 2012 Trade Names [Member] Stewart [Member] Food Processing	Oct. 31, 2012 Trade Names [Member] Nieco Corporation [Member] Commercial Foodservice	Dec. 31, 2012 Trade Names [Member] Viking Range Corporation [Member] Residential Kitchen [Member]	Oct. 15, 2013 Trade Names [Member] Celfrost [Member] Commercial Foodservice
Business Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired	$ 7,000,000							$ 10,300,000			$ 27,800,000					$ 23,900,000					$ 361,700,000					$ 23,600,000				$ 11,200,000					$ 44,500,000
Business Acquisition, Additional Payment Due			200,000
Other intangibles					100,000	1,100,000	200,000			800,000			400,000		5,900,000			100,000		6,500,000			2,000,000		44,000,000								100,000	1,900,000			2,900,000	4,600,000	3,100,000	151,000,000	2,300,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life					3 months	4 years	5 years		5 years			6 months		5 years			3 months		4 years			3 months		6 years									3 months	7 years
Business Combination, Contingent Consideration, Asset											4,600,000					3,600,000
Business Combination, Provisional Information Adjustment, Working Capital											1,300,000										11,200,000
Net assets acquired and liabilities assumed				11,614,000																										12,313,000	0	12,313,000				44,456,000
Business Acquisition, Preacquisition Contingency, Amount of Settlement																										8,697,000	8,697,000	0	8,697,000						5,971,000	5,971,000
Payments for Previous Acquisition		3,000,000																												1,100,000
Business Acquisition, Additional Payment On Achievement of Target			$ 1,400,000

XML

Acquisition Integration Initiatives (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 29, 2014
Restructuring Reserve [Roll Forward]
Balance as of December 28, 2013	$ 2,388
Expenses	2,647
Payments	2,150
Balance as of March 29, 2014	2,885
Employee Severance [Member]
Restructuring Reserve [Roll Forward]
Balance as of December 28, 2013	1,619
Expenses	2,548
Payments	1,707
Balance as of March 29, 2014	2,460
Inventory and Product [Member]
Restructuring Reserve [Roll Forward]
Balance as of December 28, 2013	584
Expenses	9
Payments	334
Balance as of March 29, 2014	259
Facility Closing [Member]
Restructuring Reserve [Roll Forward]
Balance as of December 28, 2013	77
Expenses	90
Payments	98
Balance as of March 29, 2014	69
Other Restructuring [Member]
Restructuring Reserve [Roll Forward]
Balance as of December 28, 2013	108
Expenses	0
Payments	11
Balance as of March 29, 2014	$ 97

XML

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 29, 2014

Accounting Policies [Abstract]

Summary of Income Tax Examinations

A summary of the tax years that remain subject to examination in the company’s major tax jurisdictions are: 

United States - federal	2008 – 2013
United States - states	2004 – 2013
Australia	2011 – 2013
Brazil	2010 – 2013
Canada	2009 – 2013
China	2003 – 2013
Czech Republic	2013
Denmark	2009 – 2013
France	2011 – 2013
Germany	2011 – 2013
India	2013
Italy	2009 – 2013
Luxembourg	2011 – 2013
Mexico	2007 – 2013
Philippines	2009 – 2013
South Korea	2007 – 2011
Spain	2008 – 2013
Taiwan	2008 – 2012
United Kingdom	2009 – 2013

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

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 March 29, 2014
Financial Assets:
Pension plans	$	27,791	$	752	$	—	$	28,543
Financial Liabilities:
Interest rate swaps	$	—	$	1,000	$	—	$	1,000
Contingent consideration	$	—	$	—	$	10,711	$	10,711
As of December 28, 2013
Financial Assets:
Pension plans	$	27,875	$	621	$	—	$	28,496
Financial Liabilities:
Interest rate swaps	$	—	$	1,471	$	—	$	1,471
Contingent consideration	$	—	$	—	$	10,063	$	10,063

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Estimated Fair Values of Assets Acquired and Liabilities Assumed for Baker Acquisition (Details) (Baker, USD $) In Thousands, unless otherwise specified	Mar. 14, 2012
Business Acquisition [Line Items]
Current assets	$ 2,381
Property, plant and equipment	221
Goodwill	7,278
Other intangibles	750
Current liabilities	(380)
Net assets acquired and liabilities assumed	10,250
as initially reported
Business Acquisition [Line Items]
Current assets	4,617
Property, plant and equipment	221
Goodwill	5,797
Other intangibles	0
Current liabilities	(385)
Net assets acquired and liabilities assumed	10,250
Measurement Period Adjustments
Business Acquisition [Line Items]
Current assets	(2,236)
Property, plant and equipment	0
Goodwill	1,481
Other intangibles	750
Current liabilities	5
Net assets acquired and liabilities assumed	$ 0

XML

Other Comprehensive Income (Tables)

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [Abstract]

Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block]

Changes in accumulated other comprehensive income(1) were as follows (in thousands):

	Currency Translation Adjustment			Pension Benefit Costs			Unrealized Gain/(Loss) Interest Rate Swap			Total
Balance as of December 28, 2013	$	(5,885	)	$	(2,120	)	$	(630	)	$	(8,635	)
Other comprehensive income before reclassification	1,574			(57		)	243			1,760
Amounts reclassified from accumulated other comprehensive income	—			—			21			21
Net current-period other comprehensive income	$	1,574		$	(57	)	$	264		$	1,781
Balance as of March 29, 2014	$	(4,311	)	$	(2,177	)	$	(366	)	$	(6,854	)

Schedule of Comprehensive Income (Loss)

Components of other comprehensive income were as follows (in thousands):

	Three Months Ended
	Mar 29, 2014			Mar 30, 2013
Net earnings	$	33,445		$	25,902
Currency translation adjustment	1,574			(4,684		)
Pension liability adjustment, net of tax	(57		)	166
Unrealized gain on interest rate swaps, net of tax	264			(306		)
Comprehensive income	$	35,226		$	21,078

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Acquisitions and Purchase Accounting

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [Abstract]

Acquisitions and Purchase Accounting

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 identifiable 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 results of operations are reflected in the consolidated financial statements of the company from the date of acquisition.

Baker

On March 14, 2012, the company completed its acquisition of certain assets of Turkington USA, LLC (now known as Baker Thermal Solutions "Baker"), a manufacturer of automated baking ovens for the food processing industry, for a purchase price of approximately $10.3 million.

The final allocation of cash paid for the Baker acquisition is summarized as follows (in thousands): 

	(as initially reported) Mar 14, 2012			Measurement Period Adjustments			(as adjusted) Mar 14, 2012
Current assets	$	4,617		$	(2,236	)	$	2,381
Property, plant and equipment	221			—			221
Goodwill	5,797			1,481			7,278
Other intangibles	—			750			750
Current liabilities	(385		)	5			(380		)
Net assets acquired and liabilities assumed	$	10,250		$	—		$	10,250

The goodwill is subject to the non-amortization provisions of ASC 350 "Intangibles - Goodwill and Other." Other intangibles includes $0.8 million allocated to customer relationships, which are being amortized over 5 years. Goodwill of Baker is allocated to the Food Processing Equipment Group for segment reporting purposes. These assets are expected to be deductible for tax purposes.

Stewart

On September 5, 2012, the company completed its acquisition of certain assets of Stewart Systems Global, LLC ("Stewart"), a manufacturer of automated proofing and oven baking systems for the food processing industry, for a purchase price of approximately $27.8 million. An additional payment is also payable upon the achievement of certain financial targets. During the second quarter of 2013, the company finalized the working capital provision provided by the purchase agreement resulting in a refund from the seller of $1.3 million. Subsequent to the acquisition of Stewart, the company purchased intangible assets from a third party company previously associated with Stewart. These assets consist of the trade name, Spooner Vicars and have been allocated to Stewart.

The final allocation of cash paid for the Stewart acquisition is summarized as follows (in thousands): 

	(as initially reported) Sep 5, 2012			Measurement Period Adjustments			(as adjusted)  Sep 5, 2012
Cash	$	—		$	244		$	244
Current assets	11,839			(1,922		)	9,917
Property, plant and equipment	653			583			1,236
Goodwill	17,886			(2,140		)	15,746
Other intangibles	6,850			4,030			10,880
Current liabilities	(5,228		)	(1,511		)	(6,739		)
Other non-current liabilities	(4,000		)	(587		)	(4,587		)
Consideration paid at closing	$	28,000		$	(1,303	)	$	26,697
Contingent consideration	4,000			587			4,587
Net assets acquired and liabilities assumed	$	32,000		$	(716	)	$	31,284

The goodwill and $4.6 million of other intangibles associated with the trade name are subject to the non-amortization provisions of ASC 350. Other intangibles also includes $5.9 million allocated to customer relationships and $0.4 million allocated to backlog, which are being amortized over periods of 5 years and 6 months, respectively. Goodwill and other intangibles of Stewart are allocated to the Food Processing Equipment Group for segment reporting purposes. These assets are expected to be deductible for tax purposes.

The Stewart purchase agreement includes an earnout provision providing for a contingent payment due the sellers to the extent certain financial targets are exceeded. This earnout is payable within the first quarter of 2015 if Stewart exceeds certain sales and earnings targets for fiscal 2014. The contractual obligation associated with the contingent earnout provision recognized on the acquisition date is $4.6 million.

Nieco

On October 31, 2012, the company completed its acquisition of all of the capital stock of Nieco Corporation, ("Nieco"), a leading manufacturer of automated broilers for the commercial foodservice industry, for a purchase price of approximately $23.9 million, net of cash acquired. An additional payment is also payable upon the achievement of certain financial targets. During the second quarter of 2013, the company finalized the working capital provision provided by the purchase agreement resulting in no adjustment to the original purchase price.

The final allocation of cash paid for the Nieco acquisition is summarized as follows (in thousands): 

	(as initially reported) Oct 31, 2012			Measurement Period Adjustments			(as adjusted) Oct 31, 2012
Cash	$	140		$	—		$	140
Current assets	4,011			—			4,011
Property, plant and equipment	268			—			268
Goodwill	18,855			(3,473		)	15,382
Other intangibles	5,620			4,060			9,680
Current liabilities	(1,836		)	—			(1,836		)
Other non-current liabilities	(3,058		)	(587		)	(3,645		)
Consideration paid at closing	$	24,000		$	—		$	24,000
Contingent consideration	3,058			587			3,645
Net assets acquired and liabilities assumed	$	27,058		$	587		$	27,645

The goodwill and $3.1 million of other intangibles associated with the trade name are subject to the non-amortization provisions of ASC 350. Other intangibles also includes $6.5 million allocated to customer relationships and $0.1 million allocated to backlog, which are being amortized over periods of 4 years and 3 months, respectively. Goodwill and other intangibles of Nieco are allocated to the Commercial Foodservice Equipment Group for segment reporting purposes. These assets are expected to be deductible for tax purposes.

The Nieco purchase agreement includes an earnout provision providing for a contingent payment due the sellers to the extent certain financial targets are exceeded. This earnout is payable within the first quarter of 2015 if Nieco exceeds certain sales and earnings targets for fiscal 2013 and 2014. The contractual obligation associated with the contingent earnout provision recognized on the acquisition date is $3.6 million.

Viking

On December 31, 2012 (subsequent to the 2012 fiscal year end), the company completed its acquisition of all of the capital stock of Viking Range Corporation, ("Viking"), a leading manufacturer of kitchen equipment for the residential market, for a purchase price of approximately $361.7 million, net of cash acquired. During the third quarter of 2013, the company finalized the working capital provision provided by the purchase agreement resulting in a return from the seller of $11.2 million.

The final allocation of cash paid for the Viking acquisition is summarized as follows (in thousands): 

	(as initially reported) Dec 31, 2012			Measurement Period Adjustments			(as adjusted) Dec 31, 2012
Cash	$	6,900		$	(121	)	$	6,779
Current assets	40,794			(2,385		)	38,409
Property, plant and equipment	76,693			(20,446		)	56,247
Goodwill	144,833			(32,752		)	112,081
Other intangibles	152,500			44,500			197,000
Other assets	12,604			865			13,469
Current liabilities	(52,202		)	(886		)	(53,088		)
Other non-current liabilities	(2,386		)	(1		)	(2,387		)
Net assets acquired and liabilities assumed	$	379,736		$	(11,226	)	$	368,510

The goodwill and $151.0 million of other intangibles associated with the trade name are subject to the non-amortization provisions of ASC 350. Other intangibles also includes $44.0 million allocated to customer relationships and $2.0 million allocated to backlog which are being amortized over periods of 6 years and 3 months, respectively. Goodwill and other intangibles of Viking are allocated to the Residential Kitchen Equipment Group for segment reporting purposes. These assets are expected to be deductible for tax purposes. Certain acquired assets included in other assets were classified as held for sale at the date of acquisition and were sold during the second quarter of 2013.

Viking Distributors 2013

Subsequent to the acquisition of Viking, the company, through Viking, purchased certain assets of four of Viking's former distributors ("Distributors 2013"). The aggregate purchase price of these transactions as of June 29, 2013 was approximately $23.6 million. This included $8.7 million in forgiveness of liabilities owed to Viking resulting from pre-existing relationships with Viking.

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition dates to estimate the fair value of assets acquired and liabilities assumed (in thousands): 

	(as initially reported) Jun 29, 2013			Preliminary Measurement Period Adjustments			(as adjusted) Jun 29, 2013
Current assets	$	21,390		$	(1,972	)	$	19,418
Property, plant and equipment	1,318			—			1,318
Goodwill	1,709			1,972			3,681
Current liabilities	(804		)	—			(804		)
Net assets acquired and liabilities assumed	$	23,613		$	—		$	23,613
Forgiveness of liabilities owed to Viking	(8,697		)	—			(8,697		)
Consideration paid at closing	$	14,916		$	—		$	14,916

The goodwill is subject to the non-amortization provisions of ASC 350. Goodwill of these Distributors 2013 purchases is allocated to the Residential Kitchen Equipment Group for segment reporting purposes. These assets are expected to be deductible for tax purposes.

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. 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 dates.

Celfrost

On October 15, 2013, the company completed its acquisition of substantially all of the assets of Celfrost Innovations Pvt. Ltd. ("Celfrost"), a preferred commercial foodservice equipment supplier in India with a broad line of cold side products such as professional refrigerators, coldrooms, ice machines and freezers marketed under the Celfrost brand for a purchase price of approximately $11.2 million. Additional deferred payments totaling $1.1 million are also due to the seller in equal installments on the first, second and third anniversary of the acquisition.

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed (in thousands):

	(as initially reported) Oct 15, 2013			Preliminary Measurement Period Adjustments			(as adjusted) Oct 15, 2013
Current assets	$	5,638		$	(71	)	$	5,567
Property, plant and equipment	182			—			182
Goodwill	5,943			71			6,014
Other intangibles	4,333			—			4,333
Other assets	4			—			4
Current liabilities	(3,979		)	—			(3,979		)
Other non-current liabilities	(875		)	—			(875		)
Consideration paid at closing	$	11,246		$	—		$	11,246
Deferred payments	1,067			—			1,067
Net assets acquired and liabilities assumed	$	12,313		$	—		$	12,313

The goodwill and $2.3 million of other intangibles associated with the trade name are subject to the non-amortization provisions of ASC 350. Other intangibles also includes $1.9 million allocated to customer relationships and $0.1 million allocated to backlog which are being amortized over periods of 7 years and 3 months, respectively. Goodwill and other intangibles of Celfrost are allocated to the Commercial Foodservice Equipment Group for segment reporting purposes. These assets are expected to be deductible for tax purposes.

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. 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.

Wunder-Bar

On December 17, 2013, the company completed its acquisition of all of the capital stock of Automatic Bar Controls, Inc. ("Wunder-Bar"), a leading manufacturer of beverage dispensing systems for the commercial foodservice industry, for a purchase price of approximately $74.1 million, net of cash acquired.

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed (in thousands):

	(as initially reported) Dec 17, 2013			Preliminary Measurement Period Adjustments			(as adjusted) Dec 17, 2013
Cash	$	857		$	—		$	857
Deferred tax asset	50			—			50
Current assets	13,127			31			13,158
Property, plant and equipment	1,735			1			1,736
Goodwill	45,056			(32		)	45,024
Other intangibles	30,000			—			30,000
Current liabilities	(5,013		)	—			(5,013		)
Long-term tax liabilities	(10,811		)				(10,811		)
Other non-current liabilities	(1		)	—			(1		)
Net assets acquired and liabilities assumed	$	75,000		$	—		$	75,000

The net long term deferred tax liability is comprised of $11.1 million related book basis in excess of tax basis related to identifiable intangible assets net of $0.3 million arising from the difference between the book and tax basis of tangible assets and liability accounts.

The goodwill and $12.5 million of other intangibles associated with the trade name are subject to the non-amortization provisions of ASC 350. Other intangibles also includes $17.5 million allocated to customer relationships which is to be amortized over a period of 9 years. Goodwill and other intangibles of Wunder-Bar are allocated to the Commercial Foodservice Equipment Group for segment reporting purposes. These assets are not expected to be deductible for tax purposes.

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. 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.

Market Forge

On January 7, 2014, the company completed its acquisition of certain assets of Market Forge Industries, Inc. (“Market Forge”), a leading manufacturer of steam cooking equipment for the commercial foodservice industry, for a purchase price of approximately $7.0 million. During the first quarter of 2014, the company finalized the working capital provision provided for by the purchase agreement resulting in an additional payment to the seller of $0.2 million. Additional deferred payments of $3.0 million are due to the seller within a period not expected to exceed six months from the acquisition date. An additional payment of $1.4 million is also due upon the achievement of certain financial targets.

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed (in thousands):

	(as initially reported) Jan 7, 2014
Current assets	$	2,051
Property, plant and equipment	120
Goodwill	5,252
Other intangibles	4,191
Current liabilities	(4,374		)
Consideration paid at closing	$	7,240
Deferred payments	3,000
Contingent consideration	$	1,374
Net assets acquired and liabilities assumed	$	11,614

The goodwill and $2.9 million of other intangibles associated with the trade name are subject to the non-amortization provisions of ASC 350. Other intangibles also includes $1.1 million allocated to customer relationships, $0.2 million allocated to developed technology and less than $0.1 million allocated to backlog, which are to be amortized over periods of 4 years, 5 years and 3 months, respectively. Goodwill and other intangibles of Market Forge are allocated to the Commercial Foodservice Equipment Group for segment reporting purposes. These assets are expected to be deductible for tax purposes.

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. 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.

Viking Distributors 2014

Subsequent to the acquisition of Viking, the company, through Viking, purchased certain assets of two of Viking's former distributors ("Distributors 2014"). The aggregate purchase price of these transactions as of January 31, 2014 was approximately $44.5 million. This included $6.0 million in forgiveness of liabilities owed to Viking resulting from pre-existing relationships with Viking.

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed (in thousands):

	(as initially reported) Jan 31, 2014
Current assets	$	35,909
Property, plant and equipment	2,000
Goodwill	7,552
Current liabilities	(1,005		)
Net assets acquired and liabilities assumed	$	44,456
Forgiveness of liabilities owed to Viking	(5,971		)
Consideration paid at closing	$	38,485

The goodwill is subject to the non-amortization provisions of ASC 350. Goodwill of these Distributors 2014 purchases is allocated to the Residential Kitchen Equipment Group for segment reporting purposes. These assets are expected to be deductible for tax purposes.

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. 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 dates.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 29, 2014	Dec. 28, 2013
Accounts receivable, reserve for doubtful accounts	$ 8,117	$ 6,987
Property, plant and equipment, accumulated depreciation	$ 75,893	$ 73,329
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized	47,500,000	47,500,000
Common stock, shares issued	23,906,472	23,786,203
Treasury stock, shares	4,816,912	4,661,701

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Segment Information

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [Abstract]

Segment Information

Segment Information

The company operates in three reportable operating segments defined by management reporting structure and operating activities.

The Commercial Foodservice Equipment Group manufactures, sells, and distributes cooking equipment for the restaurant and institutional kitchen industry. This business segment has manufacturing facilities in California, Illinois, Michigan, New Hampshire, North Carolina, Tennessee, Texas, Vermont, Australia, China, Denmark, Italy, the Philippines and the United Kingdom. Principal product lines of this group include conveyor ovens, ranges, steamers, convection ovens, combi-ovens, broilers and steam cooking equipment, induction cooking systems, baking and proofing ovens, charbroilers, catering equipment, fryers, toasters, hot food servers, food warming equipment, griddles, coffee and beverage dispensing equipment, professional refrigerators, coldrooms, ice machines, freezers and kitchen processing and ventilation equipment. These products are sold and marketed under the brand names: Anets, Beech, Blodgett, Blodgett Combi, Blodgett Range, Bloomfield, Britannia, CTX, Carter-Hoffmann, Celfrost, CookTek, Doyon, Frifri, Giga, Holman, Houno, IMC, Jade, Lang, Lincat, MagiKitch’n, Market Forge, Middleby Marshall, MPC, Nieco, Nu-Vu, PerfectFry, Pitco, Southbend, Star, Toastmaster, TurboChef, Viking, Wells and Wunder-Bar.

The Food Processing Equipment Group manufactures preparation, cooking, packaging food handling and food safety equipment for the food processing industry. This business segment has manufacturing operations in Illinois, Iowa, North Carolina, Texas, Virginia, Wisconsin, Australia, France, Germany and Mexico. Principal product lines of this group include batch ovens, belt ovens, continuous processing ovens, frying systems, automated thermal processing systems, automated loading and unloading systems, meat presses, breading, battering, mixing, forming, grinding and slicing equipment, food suspension, reduction and emulsion systems, defrosting equipment, packaging and food safety equipment. These products are sold and marketed under the brand names: Alkar, Armor Inox, Auto-Bake, Baker Thermal Solutions, Danfotech, Drake, Maurer-Atmos, MP Equipment, RapidPak, Spooner Vicars and Stewart Systems.

The Residential Kitchen Equipment Group manufactures, sells and distributes kitchen equipment for the residential market. This business segment has manufacturing facilities in Greenwood, Mississippi. Principal product lines of this group are ranges, ovens, refrigerators, dishwashers, microwaves, cooktops and outdoor equipment. These products are sold and marketed under the brand names of Brigade, Jade, TurboChef and Viking.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The chief operating decision maker evaluates individual segment performance based on operating income. Management believes that intersegment sales are made at established arms length transfer prices.

Net Sales Summary

(dollars in thousands)

	Three Months Ended
	Mar 29, 2014				Mar 30, 2013
	Sales		Percent		Sales		Percent
Business Segments:
Commercial Foodservice	$	234,050	62.8	%	$	197,362	60.3	%
Food Processing	75,586		20.3		71,438		21.8
Residential Kitchen	62,842		16.9		58,651		17.9
Total	$	372,478	100.0	%	$	327,451	100.0	%

The following table summarizes the results of operations for the company's business segments(1) (in thousands):

	Commercial  Foodservice		Food Processing		Residential Kitchen			Corporate and Other(2)			Total
Three Months Ended March 29, 2014
Net sales	$	234,050	$	75,586	$	62,842		$	—		$	372,478
Income (loss) from operations	54,962		12,122		207			(11,358		)	55,933
Depreciation and amortization expense	4,884		2,121		3,091			425			10,521
Net capital expenditures	2,243		449		539			—			3,231
Total assets	$	1,020,845	$	308,442	$	491,465		$	95,090		$	1,915,842
Three Months Ended March 30, 2013
Net sales	$	197,362	$	71,438	$	58,651		$	—		$	327,451
Income (loss) from operations	49,750		11,480		(7,241		)	(11,794		)	42,195
Depreciation and amortization expense	4,375		2,025		7,219			404			14,023
Net capital expenditures	1,502		848		1,487			86			3,923
Total assets	$	876,935	$	313,601	$	436,250		$	70,968		$	1,697,754

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

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

Geographic Information

Long-lived assets, not including goodwill and other intangibles (in thousands):

	Mar 29, 2014		Mar 30, 2013
United States and Canada	$	115,537	$	141,792
Asia	5,156		3,355
Europe and Middle East	16,291		14,073
Latin America	1,930		1,340
Total international	$	23,377	$	18,768
	$	138,914	$	160,560

Net sales (in thousands):

	Three Months Ended
	Mar 29, 2014		Mar 30, 2013
United States and Canada	$	259,100	$	242,057
Asia	33,806		20,386
Europe and Middle East	59,805		42,464
Latin America	19,767		22,544
Total international	$	113,378	$	85,394
	$	372,478	$	327,451

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Document and Entity Information	3 Months Ended
	Mar. 29, 2014	May 02, 2014
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 29, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Entity Registrant Name	Middleby Corp
Entity Central Index Key	0000769520
Current Fiscal Year End Date	--12-28
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		19,089,560

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Employee Retirement Plans

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [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 employees participating in the defined benefit plan were enrolled in a newly established 401K savings plan on July 1, 2002, further described below.

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. The retirement benefits are based upon a percentage of the Chairman’s final base salary.

(b) 401K Savings Plans

The company maintains 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 makes profit sharing contributions to the various plans in accordance with the requirements of the plan. Profit sharing contributions for the Elgin Union 401K savings plans are made in accordance with the agreement.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 29, 2014		Mar. 30, 2013
Net sales	$ 372,478	[1]	$ 327,451	[1]
Cost of sales	229,502		206,183
Gross profit	142,976		121,268
Selling and distribution expenses	46,970		36,152
General and administrative expenses	40,073		42,921
Income from operations	55,933		42,195
Net interest expense and deferred financing amortization, net	3,987		3,434
Other (income) expense, net	865		213
Earnings before income taxes	51,081		38,548
Provision for income taxes	17,636		12,646
Net earnings	33,445		25,902
Net earnings per share:
Basic (in usd per share)	$ 1.78		$ 1.41
Diluted (in usd per share)	$ 1.78		$ 1.39
Weighted average number of shares
Basic (in shares)	18,819		18,395
Dilutive common stock equivalents (in shares)	1	[2]	223	[2]
Diluted (in shares)	18,820		18,618
Comprehensive income	$ 35,226		$ 21,078

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

[2] There were no anti-dilutive equity awards excluded from common stock equivalents for any period presented.

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Goodwill

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [Abstract]

Goodwill

Goodwill

Changes in the carrying amount of goodwill for the three months endedMarch 29, 2014 are as follows (in thousands):

	Commercial Foodservice		Food Processing		Residential Kitchen		Total
Balance as of December 28, 2013	$	444,321	$	127,872	$	115,762	$	687,955
Goodwill acquired during the year	5,252		—		7,552		12,804
Measurement period adjustments to goodwill acquired in prior year	40		—		—		40
Exchange effect	525		520		—		1,045
Balance as of March 29, 2014	$	450,138	$	128,392	$	123,314	$	701,844

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Inventories

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [Abstract]

Inventories

Inventories

Inventories are composed of material, labor and overhead and are stated at the lower of cost or market. Costs for inventories at two of the company's manufacturing facilities have been determined using the last-in, first-out ("LIFO") method. These inventories under the LIFO method amounted to $24.7 million at March 29, 2014 and $22.3 million at December 28, 2013 and represented approximately 9.5% and 10.1% of the total inventory at each respective period. The amount of LIFO reserve at March 29, 2014 and December 28, 2013 was not material. Costs for all other inventory have been determined using the first-in, first-out ("FIFO") method. The company estimates reserves for inventory obsolescence and shrinkage based on its judgment of future realization. Inventories at March 29, 2014 and December 28, 2013 are as follows: 

	Mar 29, 2014		Dec 28, 2013
	(in thousands)
Raw materials and parts	$	114,227	$	110,310
Work-in-process	18,591		20,448
Finished goods	127,657		89,358
	$	260,475	$	220,116

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Acquisitions and Purchase Accounting (Tables)

3 Months Ended

Mar. 29, 2014

Baker

Schedule of Business Acquisitions, by Acquisition

The final allocation of cash paid for the Baker acquisition is summarized as follows (in thousands): 

	(as initially reported) Mar 14, 2012			Measurement Period Adjustments			(as adjusted) Mar 14, 2012
Current assets	$	4,617		$	(2,236	)	$	2,381
Property, plant and equipment	221			—			221
Goodwill	5,797			1,481			7,278
Other intangibles	—			750			750
Current liabilities	(385		)	5			(380		)
Net assets acquired and liabilities assumed	$	10,250		$	—		$	10,250

Stewart [Member]

Schedule of Business Acquisitions, by Acquisition

The final allocation of cash paid for the Stewart acquisition is summarized as follows (in thousands): 

	(as initially reported) Sep 5, 2012			Measurement Period Adjustments			(as adjusted)  Sep 5, 2012
Cash	$	—		$	244		$	244
Current assets	11,839			(1,922		)	9,917
Property, plant and equipment	653			583			1,236
Goodwill	17,886			(2,140		)	15,746
Other intangibles	6,850			4,030			10,880
Current liabilities	(5,228		)	(1,511		)	(6,739		)
Other non-current liabilities	(4,000		)	(587		)	(4,587		)
Consideration paid at closing	$	28,000		$	(1,303	)	$	26,697
Contingent consideration	4,000			587			4,587
Net assets acquired and liabilities assumed	$	32,000		$	(716	)	$	31,284

Nieco Corporation [Member]

Schedule of Business Acquisitions, by Acquisition

The final allocation of cash paid for the Nieco acquisition is summarized as follows (in thousands): 

	(as initially reported) Oct 31, 2012			Measurement Period Adjustments			(as adjusted) Oct 31, 2012
Cash	$	140		$	—		$	140
Current assets	4,011			—			4,011
Property, plant and equipment	268			—			268
Goodwill	18,855			(3,473		)	15,382
Other intangibles	5,620			4,060			9,680
Current liabilities	(1,836		)	—			(1,836		)
Other non-current liabilities	(3,058		)	(587		)	(3,645		)
Consideration paid at closing	$	24,000		$	—		$	24,000
Contingent consideration	3,058			587			3,645
Net assets acquired and liabilities assumed	$	27,058		$	587		$	27,645

Viking Range Corporation [Member]

Schedule of Business Acquisitions, by Acquisition

The final allocation of cash paid for the Viking acquisition is summarized as follows (in thousands): 

	(as initially reported) Dec 31, 2012			Measurement Period Adjustments			(as adjusted) Dec 31, 2012
Cash	$	6,900		$	(121	)	$	6,779
Current assets	40,794			(2,385		)	38,409
Property, plant and equipment	76,693			(20,446		)	56,247
Goodwill	144,833			(32,752		)	112,081
Other intangibles	152,500			44,500			197,000
Other assets	12,604			865			13,469
Current liabilities	(52,202		)	(886		)	(53,088		)
Other non-current liabilities	(2,386		)	(1		)	(2,387		)
Net assets acquired and liabilities assumed	$	379,736		$	(11,226	)	$	368,510

Distributors [Member]

Schedule of Business Acquisitions, by Acquisition

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition dates to estimate the fair value of assets acquired and liabilities assumed (in thousands): 

	(as initially reported) Jun 29, 2013			Preliminary Measurement Period Adjustments			(as adjusted) Jun 29, 2013
Current assets	$	21,390		$	(1,972	)	$	19,418
Property, plant and equipment	1,318			—			1,318
Goodwill	1,709			1,972			3,681
Current liabilities	(804		)	—			(804		)
Net assets acquired and liabilities assumed	$	23,613		$	—		$	23,613
Forgiveness of liabilities owed to Viking	(8,697		)	—			(8,697		)
Consideration paid at closing	$	14,916		$	—		$	14,916

Celfrost [Member]

Schedule of Business Acquisitions, by Acquisition

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed (in thousands):

	(as initially reported) Oct 15, 2013			Preliminary Measurement Period Adjustments			(as adjusted) Oct 15, 2013
Current assets	$	5,638		$	(71	)	$	5,567
Property, plant and equipment	182			—			182
Goodwill	5,943			71			6,014
Other intangibles	4,333			—			4,333
Other assets	4			—			4
Current liabilities	(3,979		)	—			(3,979		)
Other non-current liabilities	(875		)	—			(875		)
Consideration paid at closing	$	11,246		$	—		$	11,246
Deferred payments	1,067			—			1,067
Net assets acquired and liabilities assumed	$	12,313		$	—		$	12,313

Wunder-Bar [Member]

Schedule of Business Acquisitions, by Acquisition

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed (in thousands):

	(as initially reported) Dec 17, 2013			Preliminary Measurement Period Adjustments			(as adjusted) Dec 17, 2013
Cash	$	857		$	—		$	857
Deferred tax asset	50			—			50
Current assets	13,127			31			13,158
Property, plant and equipment	1,735			1			1,736
Goodwill	45,056			(32		)	45,024
Other intangibles	30,000			—			30,000
Current liabilities	(5,013		)	—			(5,013		)
Long-term tax liabilities	(10,811		)				(10,811		)
Other non-current liabilities	(1		)	—			(1		)
Net assets acquired and liabilities assumed	$	75,000		$	—		$	75,000

Market Forge [Member]

Schedule of Business Acquisitions, by Acquisition

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed (in thousands):

	(as initially reported) Jan 7, 2014
Current assets	$	2,051
Property, plant and equipment	120
Goodwill	5,252
Other intangibles	4,191
Current liabilities	(4,374		)
Consideration paid at closing	$	7,240
Deferred payments	3,000
Contingent consideration	$	1,374
Net assets acquired and liabilities assumed	$	11,614

Distributors 2014 [Member]

Schedule of Business Acquisitions, by Acquisition

The following estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed (in thousands):

	(as initially reported) Jan 31, 2014
Current assets	$	35,909
Property, plant and equipment	2,000
Goodwill	7,552
Current liabilities	(1,005		)
Net assets acquired and liabilities assumed	$	44,456
Forgiveness of liabilities owed to Viking	(5,971		)
Consideration paid at closing	$	38,485

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Acquisition Integration Initiatives

3 Months Ended

Mar. 29, 2014

Subsequent Events [Abstract]

Acquisition Integration Initiatives

14) Acquisition Integration Initiatives

During the first quarter of 2013, the company began making decisions and taking actions to improve certain of the operations of Viking, purchased on December 31, 2012. These initiatives included organizational restructuring and headcount reductions, consolidation and disposition of certain facilities and business operations, and discontinuation of certain products. These initiatives were substantially completed by the end of 2013. During the three months ended March 29, 2014, the company recorded expense in the amount of $2.6 million for these initiatives, which is reflected in the general and administrative expenses in the consolidated statements of earnings for such period. The costs and corresponding reserve balances are summarized as follows (in thousands):

	Severance/Benefits			Inventory/Product			Facilities/Operations			Other			Total
Balance as of December 28, 2013	$	1,619		$	584		$	77		$	108		$	2,388
Expenses	2,548			9			90			—			2,647
Payments	(1,707		)	(334		)	(98		)	(11		)	(2,150		)
Balance as of March 29, 2014	$	2,460		$	259		$	69		$	97		$	2,885

The company anticipates that all obligations will be satisfied by the end of the second quarter of 2014. As of March 29, 2014, the company believes the remaining reserve balance is adequate to cover the remaining costs identified.

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Financing Arrangements

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [Abstract]

Financing Arrangements

Financing Arrangements

	Mar 29, 2014		Dec 28, 2013
	(in thousands)
Senior secured revolving credit line	$	647,000	$	568,600
Foreign loans	8,134		2,680
Other debt arrangement	309		318
Total debt	$	655,443	$	571,598
Less:  Current maturities of long-term debt	6,900		1,408
Long-term debt	$	648,543	$	570,190

On August 7, 2012, the company entered into a new senior secured multi-currency credit facility. Terms of the company’s senior credit agreement provide for $1.0 billion of availability under a revolving credit line. As of March 29, 2014, the company had $647.0 million of borrowings outstanding under this facility. The company also had $13.4 million in outstanding letters of credit as of March 29, 2014, which reduces the borrowing availability under the revolving credit line. Remaining borrowing availability under this facility was $339.6 million at March 29, 2014.

At March 29, 2014, borrowings under the senior secured credit facility were assessed at an interest rate of 1.50% above LIBOR for long-term borrowings or at the higher of the Prime rate and the Federal Funds Rate. At March 29, 2014 the average interest rate on the senior debt amounted to 1.64%. The interest rates on borrowings under the senior secured credit facility may be adjusted quarterly based on the company’s indebtedness ratio on a rolling four-quarter basis. Additionally, a commitment fee based upon the indebtedness ratio is charged on the unused portion of the revolving credit line. This variable commitment fee amounted to 0.25% as of March 29, 2014.

In August 2006, the company completed its acquisition of Houno A/S in Denmark. This acquisition was funded in part with locally established debt facilities with borrowings in Danish Krone.  These facilities included a revolving credit facility and term loan. At March 29, 2014 these facilities amounted to $2.1 million in U.S. dollars, including $0.7 million outstanding under a revolving credit facility and $1.4 million under a term loan. The interest rate on the revolving credit facility is assessed at 1.25% above Euro LIBOR, which amounted to 2.70% on March 29, 2014. At March 29, 2014, the interest rate assessed on the term loan was 4.55%. The term loan matures in 2022.

In April 2008, the company completed its acquisition of Giga Grandi Cucine S.r.l in Italy. This acquisition was funded in part with locally established debt facilities with borrowings denominated in Euro.  At March 29, 2014 these facilities amounted to $0.7 million in U.S. dollars.  The interest rate on the credit facilities is variable based on the three-month Euro LIBOR. At March 29, 2014, the average interest rate on these facilities was approximately 3.86%. The facilities are secured by outstanding accounts receivable collectible within six months.

In October 2013, the company completed its acquisition of substantially all of the assets of Celfrost Innovations Private Limited in India.  At the time of the acquisition a local credit facility, denominated in Indian Rupee, was established to fund local working capital needs. At March 29, 2014, the facility amounted to $0.9 million in U.S. dollars. At March 29, 2014, borrowings under the facility were assessed at an interest rate at 1.25% above the Reserve Bank of India's base rate for long-term borrowings. At March 29, 2014, the average interest rate on this facility was approximately 11.00%. 

In March 2014, Cozzini do Brazil LTDA entered into a local credit facility, denominated in Brazilian Real, to fund local working capital needs.   At March 29, 2014, the facility amounted to $4.4 million in U.S. dollars and was assessed an interest rate of 1.50% above the Brazilian central bank CDI Rate. At March 29, 2014, the interest rate assessed on this facility was 12.05%. This local credit facility matures on March 28, 2015.

The company’s debt is reflected on the balance sheet at cost. Based on current market conditions, the company believes its interest rate margins on its existing debt are consistent with current market conditions and therefore the carrying value of debt approximates fair value. However, as the interest rate margin is based upon numerous factors, including but not limited to the credit rating of the borrower, the duration of the loan, the structure and restrictions under the debt agreement, current lending policies of the counterparty, and the company’s relationships with its lenders, there is no readily available market data to ascertain the current market rate for an equivalent debt instrument. As a result, the current interest rate margin is based upon the company’s best estimate based upon discussions with its lenders.

The company estimated the fair value of its loans by calculating the upfront cash payment a market participant would require to assume the company’s obligations. The upfront cash payment is the amount that a market participant would be able to lend at March 29, 2014 to achieve sufficient cash inflows to cover the cash outflows under the company’s senior revolving credit facility assuming the facility was outstanding in its entirety until maturity. Since the company maintains its borrowings under a revolving credit facility and there is no predetermined borrowing or repayment schedule, for purposes of this calculation the company calculated the fair value of its obligations assuming the current amount of debt at the end of the period was outstanding until the maturity of the company’s senior revolving credit facility in August 2017. Although borrowings could be materially greater or less than the current amount of borrowings outstanding at the end of the period, it is not practical to estimate the amounts that may be outstanding during future periods. The carrying value and estimated aggregate fair value, a level 2 measurement, based primarily on market prices, of debt is as follows (in thousands):

	Mar 29, 2014				Dec 28, 2013
	Carrying Value		Fair Value		Carrying Value		Fair Value
Total debt	$	655,443	$	655,443	$	571,598	$	571,598

The company believes that its current capital resources, including cash and cash equivalents, cash expected to be generated from operations, funds available from its current lenders and access to the credit and capital markets will be sufficient to finance its operations, debt service obligations, capital expenditures, product development and expenditures for the foreseeable future.

The company has historically entered into interest rate swap agreements to effectively fix the interest rate on a portion of its outstanding debt. The agreements swap one-month LIBOR for fixed rates. As of March 29, 2014, the company had the following interest rate swaps in effect:

	Fixed
Notional	Interest	Effective	Maturity
Amount	Rate	Date	Date
$25,000,000	2.520%	2/23/2011	2/23/2016
$25,000,000	0.975%	7/18/2011	7/18/2014
$15,000,000	1.185%	9/12/2011	9/12/2016
$15,000,000	0.620%	9/12/2011	9/11/2014
$10,000,000	0.498%	2/11/2013	7/11/2015
$15,000,000	0.458%	2/11/2013	10/11/2015
$25,000,000	0.635%	2/11/2013	8/11/2016
$25,000,000	0.789%	2/11/2013	3/11/2017
$25,000,000	0.803%	2/11/2013	5/11/2017
$35,000,000	0.880%	2/11/2013	7/11/2017
$10,000,000	1.480%	9/11/2013	7/11/2017
$15,000,000	0.920%	3/11/2014	7/11/2017
$25,000,000	0.950%	3/11/2014	7/11/2017

The terms of the senior secured credit facility limit the ability of the company and its subsidiaries to, with certain exceptions: incur indebtedness; grant liens; engage in certain mergers, consolidations, acquisitions and dispositions; make restricted payments; and enter into certain transactions with affiliates; and require, among other things, a maximum ratio of indebtedness to EBITDA of 3.5 and a fixed charge coverage ratio (as defined in the senior secured credit facility) of 1.25. The senior secured credit facility is secured by substantially all of the assets of Middleby Marshall, the company and the company's domestic subsidiaries and is unconditionally guaranteed by, subject to certain exceptions, the company and certain of the company's direct and indirect material domestic subsidiaries. The senior secured credit facility contains certain customary events of default, including, but not limited to, the failure to make required payments; bankruptcy and other insolvency events; the failure to perform certain covenants; the material breach of a representation or warranty; non-payment of certain other indebtedness; the entry of undischarged judgments against the company or any subsidiary for the payment of material uninsured amounts; the invalidity of the Company guarantee or any subsidiary guaranty; and a change of control of the company. The credit agreement also provides that if a material adverse change in the company’s business operations or conditions occurs, the lender could declare an event of default. Under terms of the agreement, a material adverse effect is defined as (a) a material adverse change in, or a material adverse effect upon, the operations, business properties, condition (financial and otherwise) or prospects of the company and its subsidiaries taken as a whole; (b) a material impairment of the ability of the company to perform under the loan agreements and to avoid any event of default; or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against the company of any loan document. A material adverse effect is determined on a subjective basis by the company's creditors. At March 29, 2014, the company was in compliance with all covenants pursuant to its borrowing agreements.

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Net Sales Summary (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 29, 2014		Mar. 30, 2013
Segment Reporting Information [Line Items]
Net sales	$ 372,478	[1]	$ 327,451	[1]
Percent	100.00%		100.00%
Commercial Foodservice
Segment Reporting Information [Line Items]
Net sales	234,050		197,362
Percent	62.80%		60.30%
Food Processing
Segment Reporting Information [Line Items]
Net sales	75,586		71,438
Percent	20.30%		21.80%
Residential Kitchen [Member]
Segment Reporting Information [Line Items]
Net sales	$ 62,842	[1]	$ 58,651
Percent	16.90%		17.90%

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

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Accrued Expenses

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [Abstract]

Accrued Expenses

Accrued Expenses

Accrued expenses consist of the following:

	Mar 29, 2014		Dec 28, 2013
	(in thousands)
Accrued payroll and related expenses	$	50,282	$	56,544
Advanced customer deposits	31,955		31,276
Accrued warranty	22,794		23,306
Accrued product liability and workers compensation	15,404		15,355
Accrued customer rebates	11,849		26,947
Accrued agent commission	10,547		9,767
Contingent consideration	9,893		8,628
Accrued professional services	6,784		7,441
Accrued sales and other tax	5,654		5,762
Other accrued expenses	28,080		28,433
	$	193,242	$	213,459

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Warranty Costs

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [Abstract]

Warranty Costs

Warranty Costs

In the normal course of business the company issues product warranties for specific product lines and provides for the estimated future warranty cost in the period in which the sale is recorded.  The estimate of warranty cost is based on contract terms and historical warranty loss experience that is periodically adjusted for recent actual experience. Because warranty estimates are forecasts that are based on the best available information, actual claims costs may differ from amounts provided. Adjustments to initial obligations for warranties are made as changes in the obligations become reasonably estimable.

A rollforward of the warranty reserve is as follows:

	Three Months Ended
	Mar 29, 2014
	(in thousands)
Beginning balance	$	23,306
Warranty reserve related to acquisitions	211
Warranty expense	8,806
Warranty claims	(9,529		)
Ending balance	$	22,794

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Financial Instruments

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [Abstract]

Financial Instruments

Financial Instruments

ASC 815 “Derivatives and Hedging” requires an entity to recognize all derivatives as either assets or liabilities and measure those instruments at fair value. Derivatives that do not qualify as a hedge must be adjusted to fair value in earnings. If a derivative does qualify as a hedge under ASC 815, changes in the fair value will either be offset against the change in the fair value of the hedged assets, liabilities or firm commitments or recognized in other accumulated comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a hedge's change in fair value will be immediately recognized in earnings.

Foreign Exchange: The company uses foreign currency forward purchase and sale contracts with terms of less than one year to hedge its exposure to changes in foreign currency exchange rates. The company’s primary hedging activities are to mitigate its exposure to changes in exchange rates on intercompany and third party trade receivables and payables. The company does not currently enter into derivative financial instruments for speculative purposes. In managing its foreign currency exposures, the company identifies and aggregates naturally occurring offsetting positions and then hedges residual balance sheet exposures. The following table summarizes the forward contracts outstanding at March 29, 2014. The fair value of the forward contracts was a loss of $0.1 million at the end of the first quarter of 2014.

Sell		Purchase		Maturity
10,000,000	British Pounds	12,072,046	Euro Dollars	June 27, 2014
7,600,000	British Pounds	9,179,853	Euro Dollars	June 27, 2014
5,000,000	British Pounds	5,966,801	Euro Dollars	June 27, 2014
5,500,000	Euro Dollars	7,570,750	US Dollars	June 27, 2014
10,000,000	Euro Dollars	13,826,000	US Dollars	June 27, 2014
164,203	Euro Dollars	214,055	US Dollars	March 31, 2014
210,000	Euro Dollars	318,182	Australian Dollars	March 31, 2014
92,000	US Dollars	105,383	Australian Dollars	April 30, 2014
369,469	Euro Dollars	481,750	US Dollars	April 30, 2014
237,900	Euro Dollars	205,593	British Pounds	April 30, 2014
157,367	Euro Dollars	205,254	US Dollars	May 31, 2014

Interest Rate: The company has entered into interest rate swaps to fix the interest rate applicable to certain of its variable-rate debt. The agreements swap one-month LIBOR for fixed rates. The company has designated these swaps as cash flow hedges and all changes in fair value of the swaps are recognized in accumulated other comprehensive income. As of March 29, 2014, the fair value of these instruments was a liability of $1.0 million. The change in fair value of these swap agreements in the first three months of 2014 was a gain of $0.5 million, net of taxes.

The following tables summarize the company’s fair value of interest rate swaps (in thousands):

	Condensed Consolidated Balance Sheet Presentation	Mar 29, 2014			Dec 28, 2013
Fair value	Other non-current liabilities	$	(1,000	)	$	(1,471	)

The impact on earnings from interest rate swaps was as follows (in thousands):

		Three Months Ended
	Presentation of Gain/(loss)	Mar 29, 2014			Mar 30, 2013
Gain/(loss) recognized in accumulated other comprehensive income	Other comprehensive income	$	(103	)	$	(901	)
Gain/(loss) reclassified from accumulated other comprehensive income (effective portion)	Interest expense	$	(543	)	$	(391	)
Gain/(loss) recognized in income (ineffective portion)	Other expense	$	31		$	(5	)

Interest rate swaps are subject to default risk to the extent the counterparties are unable to satisfy their settlement obligations under the interest rate swap agreements. The company reviews the credit profile of the financial institutions and assesses its creditworthiness prior to entering into the interest rate swap agreements. The interest rate swap agreements typically contain provisions that allow the counterparty to require early settlement in the event that the company becomes insolvent or is unable to maintain compliance with its covenants under its existing debt agreements.

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Employee Retirement Plans Additional Information (Details)	3 Months Ended
	Mar. 29, 2014 plan
Disclosure Employee Retirement Plans Additional Information [Abstract]
Number of defined contribution 401K savings plans	2

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Subsequent Event (Details) (Subsequent Event [Member], USD $) In Millions, unless otherwise specified	0 Months Ended
	Mar. 31, 2014
Subsequent Event [Member]
Subsequent Event [Line Items]
Annual Revenue	$ 15.0

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Net Sales by Major Geographic Region (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 29, 2014		Mar. 30, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 372,478	[1]	$ 327,451	[1]
United States and Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	259,100		242,057
Asia
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	33,806		20,386
Europe and Middle East
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	59,805		42,464
Latin America
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	19,767		22,544
Total International
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 113,378		$ 85,394

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

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Financial Assets and Liabilities that are Measured At Fair Value and are Categorized Using Fair Value Hierarchy (Detail) (Fair Value, Measurements, Recurring, USD $) In Thousands, unless otherwise specified	Mar. 29, 2014	Dec. 28, 2013
Pension Plan
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Assets	$ 28,543	$ 28,496
Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Liabilities	1,000	1,471
Contingent Consideration
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Liabilities	10,711	10,063
Fair Value, Inputs, Level 1 | Pension Plan
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Assets	27,791	27,875
Fair Value, Inputs, Level 1 | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Liabilities	0	0
Fair Value, Inputs, Level 1 | Contingent Consideration
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Liabilities	0	0
Fair Value, Inputs, Level 2 | Pension Plan
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Assets	752	621
Fair Value, Inputs, Level 2 | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Liabilities	1,000	1,471
Fair Value, Inputs, Level 2 | Contingent Consideration
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Liabilities	0	0
Fair Value, Inputs, Level 3 | Pension Plan
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Assets	0	0
Fair Value, Inputs, Level 3 | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Liabilities	0	0
Fair Value, Inputs, Level 3 | Contingent Consideration
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Liabilities	$ 10,711	$ 10,063

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Rollforward of Warranty Reserve (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 29, 2014
Disclosure Rollforward Of Warranty Reserve [Abstract]
Beginning balance	$ 23,306
Warranty reserve related to acquisitions	211
Warranty expense	8,806
Warranty claims	(9,529)
Ending balance	$ 22,794

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 29, 2014

Accounting Policies [Abstract]

Basis of Presentation

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. 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 2013 Form 10-K. The company’s interim results are not necessarily indicative of future full year results for the fiscal year 2014. 

In the opinion of management, the financial statements contain all adjustments necessary to present fairly the financial position of the company as of March 29, 2014 and December 28, 2013, and the results of operations for the three months endedMarch 29, 2014 and March 30, 2013 and cash flows for the three months endedMarch 29, 2014 and March 30, 2013.

Use of Estimates

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 and post-retirement obligations. Actual results could differ from the company's estimates.

Non-Cash Share-Based Compensation

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 $1.9 million and $3.0 million for the first quarter periods ended March 29, 2014 and March 30, 2013, respectively.

Income Tax Contingencies

C) Income Taxes

As of December 28, 2013, the total amount of liability for unrecognized tax benefits related to federal, state and foreign taxes was approximately $12.7 million (of which $11.1 million would impact the effective tax rate if recognized) plus approximately $2.0 million of accrued interest and $1.8 million of penalties. The company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. As of March 29, 2014, the company recognized a tax expense of $0.7 million for unrecognized tax benefits related to current year tax exposures.

It is reasonably possible that the amounts of unrecognized tax benefits associated with state, federal and foreign tax positions may decrease over the next twelve months due to expiration of a statute or completion of an audit. The company believes that it is reasonably possible that approximately $3.4 million of its currently remaining unrecognized tax benefits may be recognized over the next twelve months as a result of lapses of statutes of limitations.

A summary of the tax years that remain subject to examination in the company’s major tax jurisdictions are: 

United States - federal	2008 – 2013
United States - states	2004 – 2013
Australia	2011 – 2013
Brazil	2010 – 2013
Canada	2009 – 2013
China	2003 – 2013
Czech Republic	2013
Denmark	2009 – 2013
France	2011 – 2013
Germany	2011 – 2013
India	2013
Italy	2009 – 2013
Luxembourg	2011 – 2013
Mexico	2007 – 2013
Philippines	2009 – 2013
South Korea	2007 – 2011
Spain	2008 – 2013
Taiwan	2008 – 2012
United Kingdom	2009 – 2013

Fair Value Measures

D) Fair Value Measures

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 on our 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 March 29, 2014
Financial Assets:
Pension plans	$	27,791	$	752	$	—	$	28,543
Financial Liabilities:
Interest rate swaps	$	—	$	1,000	$	—	$	1,000
Contingent consideration	$	—	$	—	$	10,711	$	10,711
As of December 28, 2013
Financial Assets:
Pension plans	$	27,875	$	621	$	—	$	28,496
Financial Liabilities:
Interest rate swaps	$	—	$	1,471	$	—	$	1,471
Contingent consideration	$	—	$	—	$	10,063	$	10,063

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Goodwill (Tables)

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [Abstract]

Schedule of Goodwill

Changes in the carrying amount of goodwill for the three months endedMarch 29, 2014 are as follows (in thousands):

	Commercial Foodservice		Food Processing		Residential Kitchen		Total
Balance as of December 28, 2013	$	444,321	$	127,872	$	115,762	$	687,955
Goodwill acquired during the year	5,252		—		7,552		12,804
Measurement period adjustments to goodwill acquired in prior year	40		—		—		40
Exchange effect	525		520		—		1,045
Balance as of March 29, 2014	$	450,138	$	128,392	$	123,314	$	701,844

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Changes in Carrying Amount of Goodwill (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 29, 2014
Goodwill [Line Items]
Balance beginning of period	$ 687,955
Goodwill acquired during the year	12,804
Measurement period adjustments to goodwill acquired in prior year	40
Exchange effect	1,045
Balance end of period	701,844
Commercial Foodservice
Goodwill [Line Items]
Balance beginning of period	444,321
Goodwill acquired during the year	5,252
Measurement period adjustments to goodwill acquired in prior year	40
Exchange effect	525
Balance end of period	450,138
Food Processing
Goodwill [Line Items]
Balance beginning of period	127,872
Goodwill acquired during the year	0
Measurement period adjustments to goodwill acquired in prior year	0
Exchange effect	520
Balance end of period	128,392
Residential Kitchen [Member]
Goodwill [Line Items]
Balance beginning of period	115,762
Goodwill acquired during the year	7,552
Measurement period adjustments to goodwill acquired in prior year	0
Exchange effect	0
Balance end of period	$ 123,314

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Estimated Fair Values of Assets Acquired and Liabilities Assumed for Celfrost Acquisition (Details) (Celfrost [Member], USD $) In Thousands, unless otherwise specified	Oct. 15, 2013
Business Acquisition [Line Items]
Current assets	$ 5,567
Property, plant and equipment	182
Goodwill	6,014
Other intangibles	4,333
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	4
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(3,979)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	(875)
Business Acquisition Cost Of Acquired Entity Consideration Paid	11,246
Net assets acquired and liabilities assumed	12,313
as initially reported
Business Acquisition [Line Items]
Current assets	5,638
Property, plant and equipment	182
Goodwill	5,943
Other intangibles	4,333
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	4
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	3,979
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	875
Business Acquisition Cost Of Acquired Entity Consideration Paid	11,246
Net assets acquired and liabilities assumed	12,313
Scenario, Adjustment [Member]
Business Acquisition [Line Items]
Current assets	(71)
Property, plant and equipment	0
Goodwill	71
Other intangibles	0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	0
Business Acquisition Cost Of Acquired Entity Consideration Paid	0
Net assets acquired and liabilities assumed	$ 0

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 29, 2014	Mar. 30, 2013
Cash flows from operating activities--
Net earnings	$ 33,445	$ 25,902
Adjustments to reconcile net earnings to net cash provided by operating activities--
Depreciation and amortization	10,521	14,023
Non-cash share-based compensation	1,938	2,965
Deferred taxes	12,800	1,115
Unrealized loss/(gain) on derivative financial instruments	(31)	5
Changes in assets and liabilities, net of acquisitions
Accounts receivable, net	(15,786)	(8,603)
Inventories, net	(5,638)	(13,229)
Prepaid expenses and other assets	(21,873)	(5,474)
Accounts payable	(2,415)	(941)
Accrued expenses and other liabilities	(26,519)	(2,232)
Net cash provided by operating activities	(13,558)	13,531
Cash flows from investing activities--
Additions to property and equipment	(3,231)	(3,923)
Purchase of trade name	0	5,000
Net cash (used in) investing activities	(48,956)	(381,759)
Cash flows from financing activities--
Net (repayments) proceeds under current revolving credit facilities	78,400	378,500
Net (repayments) proceeds under foreign bank loan	5,463	(47)
Proceeds from (Repayments of) Notes Payable	(9)	(5)
Repurchase of treasury stock	(44,283)	(1,091)
Debt issuance costs	0	(11)
Excess tax benefit related to share-based compensation	25,044	1,089
Net proceeds from stock issuances	0	13
Net cash (used in) provided by financing activities	64,615	378,448
Effect of exchange rates on cash and cash equivalents	55	(817)
Changes in cash and cash equivalents--
Net (decrease) increase in cash and cash equivalents	2,156	9,403
Cash and cash equivalents at beginning of year	36,894	34,366
Cash and cash equivalents at end of quarter	39,050	43,769
Viking Range Corporation [Member]
Cash flows from investing activities--
Payments for (Proceeds from) Previous Acquisition	0	(372,836)
Distributors [Member]
Cash flows from investing activities--
Payments for (Proceeds from) Previous Acquisition	(38,485)	0
Market Forge Industries, Inc [Member]
Cash flows from investing activities--
Payments for (Proceeds from) Previous Acquisition	$ (7,240)	$ 0

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Other Comprehensive Income

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [Abstract]

Other Comprehensive Income

5) Other Comprehensive Income

The company reports changes in equity during a period, except those resulting from investments by owners and distributions to owners, in accordance with ASC 220, "Comprehensive Income."

Changes in accumulated other comprehensive income(1) were as follows (in thousands):

	Currency Translation Adjustment			Pension Benefit Costs			Unrealized Gain/(Loss) Interest Rate Swap			Total
Balance as of December 28, 2013	$	(5,885	)	$	(2,120	)	$	(630	)	$	(8,635	)
Other comprehensive income before reclassification	1,574			(57		)	243			1,760
Amounts reclassified from accumulated other comprehensive income	—			—			21			21
Net current-period other comprehensive income	$	1,574		$	(57	)	$	264		$	1,781
Balance as of March 29, 2014	$	(4,311	)	$	(2,177	)	$	(366	)	$	(6,854	)

(1) All amounts are net of tax.

Components of other comprehensive income were as follows (in thousands):

	Three Months Ended
	Mar 29, 2014			Mar 30, 2013
Net earnings	$	33,445		$	25,902
Currency translation adjustment	1,574			(4,684		)
Pension liability adjustment, net of tax	(57		)	166
Unrealized gain on interest rate swaps, net of tax	264			(306		)
Comprehensive income	$	35,226		$	21,078

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Impact on Earnings from Interest Rate Swaps (Details) (Interest Rate Swap [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 29, 2014	Mar. 30, 2013
Other Comprehensive Income
Derivative Instruments, Gain (Loss) [Line Items]
Gain/(loss) recognized in accumulated other comprehensive income	$ (103)	$ (901)
Interest Expense
Derivative Instruments, Gain (Loss) [Line Items]
Gain/(loss) reclassified from accumulated other comprehensive income (effective portion)	(543)	(391)
Other Expense
Derivative Instruments, Gain (Loss) [Line Items]
Gain/(loss) recognized in income (ineffective portion)	$ 31	$ (5)

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Accrued Expenses (Tables)

3 Months Ended

Mar. 29, 2014

Notes To Financial Statements [Abstract]

Schedule of Accrued Liabilities

Accrued expenses consist of the following:

	Mar 29, 2014		Dec 28, 2013
	(in thousands)
Accrued payroll and related expenses	$	50,282	$	56,544
Advanced customer deposits	31,955		31,276
Accrued warranty	22,794		23,306
Accrued product liability and workers compensation	15,404		15,355
Accrued customer rebates	11,849		26,947
Accrued agent commission	10,547		9,767
Contingent consideration	9,893		8,628
Accrued professional services	6,784		7,441
Accrued sales and other tax	5,654		5,762
Other accrued expenses	28,080		28,433
	$	193,242	$	213,459

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Acquisitions and Purchase Accounting Estimated Fair Values of Assets Acquired and Liabilities Assumed for Nieco Acquisition (Details) (USD $) In Thousands, unless otherwise specified	Mar. 29, 2014	Dec. 28, 2013	Oct. 31, 2012 Nieco Corporation [Member]	Oct. 31, 2012 Nieco Corporation [Member] as initially reported	Oct. 31, 2012 Nieco Corporation [Member] Scenario, Adjustment [Member]
Business Acquisition [Line Items]
Cash			$ 140	$ 140	$ 0
Current assets			4,011	4,011	0
Property, plant and equipment			268	268	0
Goodwill			15,382	18,855	(3,473)
Other intangibles			9,680	5,620	4,060
Current liabilities			(1,836)	(1,836)	0
Other non-current liabilities			(3,645)	(3,058)	(587)
Consideration paid at closing			24,000	24,000	0
Business Combination, Contingent Consideration	9,893	8,628	3,645	3,058	587
Net assets acquired and liabilities assumed			$ 27,645	$ 27,058	$ 587

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Subsequent Event (Notes)

3 Months Ended

Mar. 29, 2014

Subsequent Events [Abstract]

Subsequent Events

Subsequent Event

On March 31, 2014, subsequent to the end of the first quarter, the company completed its acquisition of substantially all of the assets of Processing Equipment Solutions, Inc. ("PES"), a leading manufacturer of equipment for the food processing industry based in Gainesville, Georgia with annual revenues of approximately $15.0 million.