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UNITED STATES
 
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 
FORM 10-Q 
 
(Mark One)
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended October 1, 2022
or
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Commission File No. 1-9973
 
THE MIDDLEBY CORPORATION
(Exact name of registrant as specified in its charter)  
Delaware36-3352497
(State or other jurisdiction of incorporation or organization)(IRS Employer Identification Number)
 
 
1400 Toastmaster Drive,Elgin,Illinois60120
(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code:(847)741-3300
 
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes x No o   
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes x   No o
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “accelerated filer," "large accelerated filer," "smaller reporting company," and "emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filerNon-accelerated filer
Smaller reporting companyEmerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common StockMIDDNasdaq Global Select Market
As of November 4, 2022, there were 53,883,522 shares of the registrant's common stock outstanding.



THE MIDDLEBY CORPORATION
 
QUARTER ENDED OCTOBER 1, 2022
  
INDEX
DESCRIPTIONPAGE
PART I.  FINANCIAL INFORMATION 
  
Item 1. 
   
 CONDENSED CONSOLIDATED BALANCE SHEETS as of OCTOBER 1, 2022 and JANUARY 1, 2022
  
 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME for the three and nine months ended OCTOBER 1, 2022 and OCTOBER 2, 2021
  
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY for the three and nine months ended OCTOBER 1, 2022 and OCTOBER 2, 2021
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS for the nine months ended OCTOBER 1, 2022 and OCTOBER 2, 2021
 
  
Item 2.
  
Item 3.
  
Item 4.
  
PART II. OTHER INFORMATION
  
Item 2.
  
Item 6.



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

THE MIDDLEBY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Data)
(Unaudited)
 
ASSETSOct 1, 2022Jan 1, 2022
Current assets:  
Cash and cash equivalents$144,918 $180,362 
Accounts receivable, net of reserve for doubtful accounts of $17,857 and $18,770
593,514 577,142 
Inventories, net1,062,634 837,418 
Prepaid expenses and other121,271 92,269 
Prepaid taxes28,201 19,894 
Total current assets1,950,538 1,707,085 
Property, plant and equipment, net of accumulated depreciation of $282,942 and $266,203
423,947 380,980 
Goodwill2,287,420 2,243,469 
Other intangibles, net of amortization of $489,750 and $442,208
1,781,801 1,875,377 
Long-term deferred tax assets22,340 33,194 
Other assets205,815 143,493 
Total assets$6,671,861 $6,383,598 
LIABILITIES AND STOCKHOLDERS' EQUITY  
Current liabilities:  
Current maturities of long-term debt$44,664 $27,293 
Accounts payable261,169 304,740 
Accrued expenses631,945 582,855 
Total current liabilities937,778 914,888 
Long-term debt2,693,325 2,387,001 
Long-term deferred tax liability220,400 186,935 
Accrued pension benefits154,256 219,680 
Other non-current liabilities167,559 180,818 
Stockholders' equity:  
Preferred stock, $0.01 par value; nonvoting; 2,000,000 shares authorized; none issued
  
Common stock, $0.01 par value; 63,508,855 and 63,666,020 shares issued in 2022 and 2021, respectively
147 147 
Paid-in capital392,659 357,309 
Treasury stock, at cost; 9,625,333 and 8,170,276 shares in 2022 and 2021
(806,079)(566,399)
Retained earnings3,365,675 3,062,303 
Accumulated other comprehensive loss(453,859)(359,084)
Total stockholders' equity2,498,543 2,494,276 
Total liabilities and stockholders' equity$6,671,861 $6,383,598 
 


See accompanying notes
1


THE MIDDLEBY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands, Except Per Share Data)
(Unaudited)
 
 
 Three Months EndedNine Months Ended
 Oct 1, 2022Oct 2, 2021Oct 1, 2022Oct 2, 2021
Net sales$992,871 $817,545 $3,001,148 $2,384,376 
Cost of sales627,639 517,918 1,944,664 1,505,149 
Gross profit365,232 299,627 1,056,484 879,227 
Selling, general and administrative expenses201,200 175,354 596,757 496,022 
Restructuring expenses2,327 791 8,231 2,596 
Merger termination fee (110,000) (110,000)
Gain on sale of plant   (763)
Income from operations161,705 233,482 451,496 491,372 
Interest expense and deferred financing amortization, net24,067 13,192 62,563 43,481 
Net periodic pension benefit (other than service costs)(9,944)(11,363)(32,244)(34,268)
Other expense (income), net8,529 794 18,478 (1,366)
Earnings before income taxes139,053 230,859 402,699 483,525 
Provision for income taxes34,684 54,893 99,327 97,711 
Net earnings$104,369 $175,966 $303,372 $385,814 
Net earnings per share:  
Basic$1.94 $3.19 $5.60 $6.99 
Diluted$1.92 $3.09 $5.50 $6.83 
Weighted average number of shares  
Basic53,867 55,232 54,190 55,225 
Dilutive common stock equivalents517 1,707 944 1,301 
Diluted54,384 56,939 55,134 56,526 
Comprehensive income$64,883 $163,011 $208,597 $372,037 
 



















See accompanying notes
2


THE MIDDLEBY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(amounts in thousands)
(Unaudited)
Common
Stock
Paid-in
Capital
Treasury
Stock
Retained
Earnings
Accumulated
Other
Comprehensive
Income/(loss)
Total
Stockholders'
Equity
Balance, July 2, 2022$147 $376,898 $(806,008)$3,261,306 $(414,373)$2,417,970 
Net earnings   104,369  104,369 
Currency translation adjustments    (81,774)(81,774)
Change in unrecognized pension benefit costs, net of tax of $2,775
    17,928 17,928 
Unrealized gain on interest rate swap, net of tax of $8,574
    24,360 24,360 
Stock compensation 15,761    15,761 
Purchase of treasury stock  (71)  (71)
Balance, October 1, 2022$147 $392,659 $(806,079)$3,365,675 $(453,859)$2,498,543 
Balance, January 1, 2022$147 $357,309 $(566,399)$3,062,303 $(359,084)$2,494,276 
Net earnings   303,372  303,372 
Currency translation adjustments    (201,176)(201,176)
Change in unrecognized pension benefit costs, net of tax of $6,850
    44,127 44,127 
Unrealized gain on interest rate swap, net of tax of $22,389
    63,604 63,604 
Unrealized loss on certain investments, net of tax of $(443)
    (1,330)(1,330)
Stock compensation 42,641    42,641 
Purchase of treasury stock  (239,680)  (239,680)
Purchase of capped calls, net of tax of $(2,364)
 (7,291)   (7,291)
Balance, October 1, 2022$147 $392,659 $(806,079)$3,365,675 $(453,859)$2,498,543 

3


THE MIDDLEBY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(amounts in thousands)
(Unaudited)

Common
Stock
Paid-in
Capital
Treasury
Stock
Retained
Earnings
Accumulated
Other
Comprehensive
Income/(loss)
Total
Stockholders'
Equity
Balance, July 3, 2021 $147 $370,816 $(539,496)$2,783,659 $(489,250)$2,125,876 
Net earnings   175,966  175,966 
Currency translation adjustments    (21,881)(21,881)
Change in unrecognized pension benefit costs, net of tax of $1,296
    5,870 5,870 
Unrealized gain on interest rate swap, net of tax of $1,065
    3,056 3,056 
Stock compensation 10,198    10,198 
Purchase of treasury stock  (115)  (115)
Balance, October 2, 2021$147 $381,014 $(539,611)$2,959,625 $(502,205)$2,298,970 
Balance, January 2, 2021$147 $433,308 $(537,134)$2,568,756 $(488,428)$1,976,649 
Net earnings   385,814  385,814 
Adoption of 2020-06 (1)
 (79,430) 5,055  (74,375)
Currency translation adjustments    (33,000)(33,000)
Change in unrecognized pension benefit costs, net of tax of $673
    3,052 3,052 
Unrealized gain on interest rate swap, net of tax of $5,637
    16,171 16,171 
Stock compensation 27,136    27,136 
Purchase of treasury stock  (2,477)  (2,477)
Balance, October 2, 2021$147 $381,014 $(539,611)$2,959,625 $(502,205)$2,298,970 

(1) As of January 3, 2021 the company adopted ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity using the modified retrospective method. The adoption of this guidance resulted in a $79.4 million reduction to paid-in capital, net of tax of $25.5 million, and the recognition of $5.1 million as an adjustment to the opening balance of retained earnings, net of tax of $1.6 million.


























See accompanying notes
4


THE MIDDLEBY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
 Nine Months Ended
 Oct 1, 2022Oct 2, 2021
Cash flows from operating activities--  
Net earnings$303,372 $385,814 
Adjustments to reconcile net earnings to net cash provided by operating activities--  
Depreciation and amortization106,917 90,672 
Non-cash share-based compensation42,641 27,136 
Deferred income taxes17,657 (5,704)
Net periodic pension benefit (other than service costs)(32,244)(34,268)
Gain on sale of plant (763)
Other non-cash items(32,455)(5,632)
Changes in assets and liabilities, net of acquisitions  
Accounts receivable, net(11,174)(94,539)
Inventories, net(214,017)(131,707)
Prepaid expenses and other assets(30,832)11,132 
Accounts payable(47,262)61,286 
Accrued expenses and other liabilities70,846 42,613 
Net cash provided by operating activities173,449 346,040 
Cash flows from investing activities--  
Net additions to property, plant and equipment(50,914)(29,732)
Proceeds on sale of property, plant and equipment 6,062 
Purchase of intangible assets(701) 
Acquisitions, net of cash acquired(206,253)(389,009)
Net cash used in investing activities(257,868)(412,679)
Cash flows from financing activities--  
Proceeds under Credit Facility1,715,000 485,976 
Repayments under Credit Facility(1,360,750)(421,550)
Premiums paid for capped call(9,655) 
Net repayments under international credit facilities(24,156)(1,473)
Payments of deferred purchase price(7,930)(5,861)
Repurchase of treasury stock(239,680)(2,477)
Other, net(235)(254)
Net cash provided by financing activities72,594 54,361 
Effect of exchange rates on cash and cash equivalents(23,619)(4,349)
Changes in cash and cash equivalents--  
Net decrease in cash and cash equivalents(35,444)(16,627)
Cash and cash equivalents at beginning of year180,362 268,103 
Cash and cash equivalents at end of period$144,918 $251,476 
 

See accompanying notes
5


THE MIDDLEBY CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
OCTOBER 1, 2022
(Unaudited)
1)Summary of Significant Accounting Policies
a)Basis of Presentation
The condensed consolidated financial statements have been prepared by The Middleby Corporation (the "company" or “Middleby”), pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The financial statements are unaudited and certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the company believes that the disclosures are adequate to make the information not misleading. These financial statements should be read in conjunction with the financial statements and related notes contained in the company's 2021 Form 10-K. The company’s interim results are not necessarily indicative of future full year results for the fiscal year 2022. 
In the opinion of management, the financial statements contain all adjustments, which are normal and recurring in nature, necessary to present fairly the financial position of the company as of October 1, 2022 and January 1, 2022, the results of operations for the three and nine months ended October 1, 2022 and October 2, 2021, cash flows for the nine months ended October 1, 2022 and October 2, 2021 and statement of stockholders' equity for the three and nine months ended October 1, 2022 and October 2, 2021.
Certain prior year amounts have been reclassified to be consistent with current year presentation, including non-cash unrealized foreign exchange on non-functional currency third party debt, previously reported in changes in assets and liabilities, net of acquisitions to other non-cash items as an adjustments to reconcile net earnings to cash provided by operating activities on the Consolidated Statements of Cash Flows.
Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses. Significant estimates and assumptions are used for, but are not limited to, allowances for doubtful accounts, reserves for excess and obsolete inventories, long-lived and intangible assets, warranty reserves, insurance reserves, income tax reserves, non-cash share-based compensation and post-retirement obligations. Actual results could differ from the company's estimates.
b)Non-Cash Share-Based Compensation
The company estimates the fair value of market-based stock awards and stock options at the time of grant and recognizes compensation cost over the vesting period of the awards and options. Non-cash share-based compensation expense was $15.7 million and $10.2 million for the three months period ended October 1, 2022 and October 2, 2021, respectively. Non-cash share-based compensation expense was $42.6 million and $27.1 million for the nine months period ended October 1, 2022 and October 2, 2021, respectively.
c)Income Taxes
A tax provision of $34.7 million, at an effective rate of 24.9%, was recorded during the three months period ended October 1, 2022, as compared to a $54.9 million tax provision at an effective rate of 23.8% in the prior year period. A tax provision of $99.3 million, at an effective rate of 24.7%, was recorded during the nine months period ended October 1, 2022, as compared to a $97.7 million tax provision at a 20.2% effective rate in the prior year period. In the three months period ended July 3, 2021, the company recorded several discrete tax benefits, including a deferred tax benefit for the enacted future UK tax rate change from 19% to 25% and tax benefits for amended U.S. tax returns. When excluding the discrete tax adjustments, the 2021 rates were approximately 24.0%.
On August 16, 2022, President Biden signed the Inflation Reduction Act ("IRA") into law. The IRA enacted a 15% corporate minimum tax effective in 2023, a 1% tax on share repurchases after December 31, 2022, and created and extended certain tax-related energy incentives. We currently do not expect the tax-related provisions of the IRA to have a material impact on our financial results.
6


d)Fair Value Measures 
Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into the following levels:
Level 1 – Quoted prices in active markets for identical assets or liabilities.
Level 2 – Inputs, other than quoted prices in active markets, that are observable either directly or indirectly.
Level 3 – Unobservable inputs based the company's own assumptions.
The company’s financial assets and liabilities that are measured at fair value and are categorized using the fair value hierarchy are as follows (in thousands):
Fair Value
Level 1
Fair Value
Level 2
Fair Value
Level 3
Total
As of October 1, 2022
Financial Assets:
 Interest rate swaps$ $68,003 $ $68,003 
Financial Liabilities:
    Contingent consideration$ $ $32,332 $32,332 
    Foreign exchange derivative contracts$ $4,353 $ $4,353 
As of January 1, 2022
Financial Assets:
    Interest rate swaps$ $3,645 $ $3,645 
 Foreign exchange derivative contracts$ $1,095 $ $1,095 
Financial Liabilities:
    Interest rate swaps$ $21,635 $ $21,635 
    Contingent consideration$ $ $34,983 $34,983 
The contingent consideration as of October 1, 2022 and January 1, 2022, relates to the earnout provisions recorded in conjunction with various purchase agreements. The earnout provisions associated with these acquisitions are based upon performance measurements related to sales and earnings, as defined in the respective purchase agreement. On a quarterly basis, the company assesses the projected results for each acquired business in comparison to the earnout targets and adjusts the liability accordingly.
e)    Consolidated Statements of Cash Flows
Cash paid for interest was $57.0 million and $38.5 million for the nine months ended October 1, 2022 and October 2, 2021, respectively. Cash payments totaling $84.2 million and $98.9 million were made for income taxes for the nine months ended October 1, 2022 and October 2, 2021, respectively.
Other non-cash items in the adjustments to reconcile net earnings to net cash provided by operating activities consists primarily of unrealized foreign exchange on non-functional currency third party debt.
7


f)    Earnings Per Share
“Basic earnings per share” is calculated based upon the weighted average number of common shares actually outstanding, and “diluted earnings per share” is calculated based upon the weighted average number of common shares outstanding and other dilutive securities.
The company’s potentially dilutive securities consist of shares issuable on vesting of restricted stock grants computed using the treasury method and amounted to 23,313 and 28,102 for the three months ended October 1, 2022, and October 2, 2021, respectively. The company’s potentially dilutive securities consist of shares issuable on vesting of restricted stock grants computed using the treasury method and amounted to 12,171 and 16,342 for the nine months ended October 1, 2022 and October 2, 2021, respectively. For the nine months ended October 1, 2022 and October 2, 2021, the average market price of the company's common stock exceeded the exercise price of the Convertible Notes (as defined below) resulting in 931,897 and 1,678,501 diluted common stock equivalents to be included in the diluted net earnings per share, respectively. There have been no material conversions to date. See Note 12, Financing Arrangements for further details on the Convertible Notes. There were no anti-dilutive restricted stock grants excluded from common stock equivalents in any period presented.
8


2)    Acquisitions and Purchase Accounting
The company accounts for all business combinations using the acquisition method to record a new cost basis for the assets acquired and liabilities assumed. The difference between the purchase price and the fair value of the assets acquired and liabilities assumed has been recorded as goodwill in the financial statements. The company recognizes identifiable intangible assets, primarily trade names and customer relationships, at their fair value using a discounted cash flow model. The significant assumptions used to estimate the value of the intangible assets include revenue growth rates, projected profit margins, discount rates, royalty rates, and customer attrition rates. These significant assumptions are forward-looking and could be affected by future economic and market conditions. The results of operations are reflected in the consolidated financial statements of the company from the dates of acquisition.
Termination of Welbilt Merger
On April 20, 2021, Middleby entered into a Merger Agreement with Welbilt, Inc. Following Welbilt's receipt of an alternative acquisition proposal, on July 13, 2021, Middleby announced that, under the terms of the Merger Agreement, it would not exercise its right to propose any modifications to the terms of the Merger Agreement and would allow the match period to expire. Accordingly, on July 14, 2021, Welbilt delivered to Middleby a written notice terminating the Merger Agreement and, concurrently with Middleby’s receipt of the termination fee of $110.0 million in cash from Welbilt, the Merger Agreement was terminated on July 14, 2021.
The termination fee received is reflected in the Consolidated Statements of Comprehensive Income as the "merger termination fee" and $19.7 million of deal costs associated with the transaction are reflected in selling, general and administrative expenses in the Consolidated Statements of Comprehensive Income.

The company completed no material acquisitions during the nine months ended October 1, 2022.
Novy Invest NV
On July 12, 2021, the company completed its acquisition of all of the capital stock of Novy Invest NV ("Novy"), a leading manufacturer of premium residential ventilation hoods and cook tops located in Belgium, for a purchase price of approximately $250.9 million, net of cash acquired. The final allocation of consideration paid for the Novy acquisition is summarized as follows (in thousands):
Preliminary Opening Balance SheetMeasurement
Period
Adjustments
Adjusted Opening Balance Sheet
Cash$16,152 $ $16,152 
Current assets23,762 234 23,996 
Property, plant and equipment17,058 4,383 21,441 
Goodwill142,741 (6,938)135,803 
Other intangibles126,557 4,149 130,706 
Other assets26 173 199 
Current liabilities(23,440)182 (23,258)
Long-term deferred tax liability(33,918)(2,072)(35,990)
Other non-current liabilities(1,930)(111)(2,041)
Net assets acquired and liabilities assumed$267,008 $ $267,008 
The long-term deferred tax liability amounted to $36.0 million. The deferred tax liability is comprised of $32.7 million related to the difference between the book and tax basis of identifiable intangible assets and $3.3 million related to the difference between the book and tax basis on identifiable tangible asset and liability accounts.

The goodwill and $106.6 million of other intangibles associated with the trade names are subject to the non-amortization provisions of ASC 350. Other intangibles also include $24.1 million allocated to customer relationships, which is being amortized over a period of 10 years. Goodwill of $135.8 million and other intangibles of $130.7 million from this acquisition are allocated to the Residential Kitchen Equipment Group for segment reporting purposes. Goodwill and other intangibles are not expected to be deductible for tax purposes.
9


Kamado Joe and Masterbuilt
On December 27, 2021, the company completed its acquisition of Masterbuilt Holdings, LLC, including its residential outdoor brands ("Kamado Joe and Masterbuilt"), a leader in outdoor residential cooking located in the Atlanta, Georgia area, for a purchase price of approximately $403.6 million, net of cash acquired. The purchase price was comprised of $403.6 million in cash and 12,921 shares of Middleby common stock valued at $2.5 million. During the third quarter of 2022, the company finalized the purchase price adjustment provided for by the purchase agreement, resulting in a payment to sellers of $2.8 million.
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 values of assets acquired and liabilities assumed (in thousands):
Preliminary Opening Balance SheetPreliminary Measurement
Period
Adjustments
Adjusted Opening Balance Sheet
Cash$5,381 $(70)$5,311 
Current assets137,826 (5,263)132,563 
Property, plant and equipment7,773 (1,678)6,095 
Goodwill110,052 45,511 155,563 
Other intangibles215,577 (28,677)186,900 
Other assets2,143 (1,174)969 
Current liabilities(54,865)(6,774)(61,639)
Long-term deferred tax liability(15,907) (15,907)
Other non-current liabilities(1,914)946 (968)
Net assets acquired and liabilities assumed$406,066 $2,821 $408,887 
The long-term deferred tax liability amounted to $15.9 million. The net deferred tax liability is comprised of $2.3 million of deferred tax asset related to tax loss carryforwards and $18.2 million of deferred tax liability related to the difference between the book and tax basis on identifiable tangible asset and liability accounts.
The goodwill and $145.4 million of other intangibles associated with the trade names are subject to the non-amortization provisions of ASC 350. Other intangibles also include $31.4 million allocated to customer relationships, $3.0 million allocated to developed technology, and $7.1 million allocated to backlog, which are being amortized over periods of 10 to 12 years, 11 years, and 3 to 6 months, respectively. Goodwill of $155.6 million and other intangibles of $186.9 million of the company are allocated to the Residential Kitchen Equipment Group for segment reporting purposes. Of these assets, goodwill of $54.2 million and intangibles of $186.9 million 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 for this acquisition. Thus, the provisional measurements of fair values set forth above are subject to change. The company expects to complete the purchase price allocation as soon as practicable but no later than one year from the acquisition date.

10


Other 2021 Acquisitions
During the year ended January 1, 2022, the company completed various acquisitions that were not individually material. The following estimated fair values of assets acquired and liabilities assumed are based on the information that was available as of the acquisition dates for the other 2021 acquisitions and are summarized as follows (in thousands):
Preliminary Opening Balance SheetPreliminary Measurement
Period
Adjustments
Adjusted Opening Balance Sheet
Cash$6,414 $ $6,414 
Current assets76,077 477 76,554 
Property, plant and equipment19,561 (187)19,374 
Goodwill85,270 8,485 93,755 
Other intangibles158,725 (9,193)149,532 
Other assets2,101 31 2,132 
Current liabilities(33,910)53 (33,857)
Long-term deferred tax asset (liability)(3,010)3,457 447 
Other non-current liabilities(7,092)(3,397)(10,489)
Consideration paid at closing