Financial Analysis

The following table summarizes our net sales by reportable segment and geographical location (in thousands): Commercial Foodservice Food Processing Total 2025 United States and Canada $ 1,681,955 $ 477,877 $ 2,159,832 Asia 214,214 34,679 248,893 Europe and Middle East 371,907 259,533 631,440 Latin America 82,971 78,066 161,037 Total $ 2,351,047 $ 850,155 $ 3,201,202 2024 United States and Canada $ 1,705,847 $ 447,918 $ 2,153,765 Asia 213,617 30,626 244,243 Europe and Middle East 365,018 225,921 590,939 Latin America 95,902 65,390 161,292 Total $ 2,380,384 $ 769,855 $ 3,150,239 2023 United States and Canada $ 1,823,041 $ 484,688 $ 2,307,729 Asia 231,009 42,238 273,247 Europe and Middle East 341,351 173,765 515,116 Latin America 89,916 56,082 145,998 Total $ 2,485,317 $ 756,773 $ 3,242,090

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LEASE COMMITMENTS At the commencement date of a lease, the company recognizes a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. The lease liability is measured at the present value of lease payments over the lease term, including variable lease payments that are determined to be probable. The lease liability includes lease component fees, while non-lease component fees are expensed as incurred for all asset classes. The company includes options to extend or terminate a lease in the lease term when it is reasonably certain that we will exercise that option. When a contract excludes an implicit rate, the company utilizes an incremental borrowing rate based on information available at the lease commencement date including lease term and geographic region. The initial valuation of the right-of-use (ROU) asset includes the initial measurement of the lease liability, lease payments made in advance of the lease commencement date and initial direct costs incurred by the company and excludes lease incentives. Leases with an initial term of 12 months or less are classified as short-term leases and are not recorded on the Consolidated Balance Sheets. The lease expense for short-term leases is recognized on a straight-line basis over the lease term. The company leases warehouse space, office facilities and equipment under operating leases. The company had operating lease costs of $27.7 million, $26.2 million and $24. …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

New Accounting Pronouncements Accounting Pronouncements - Recently Adopted In December 2023, the FASB issued Accounting Standard Update ASU No. 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands the disclosures required in an entitys income tax rate reconciliation table. This ASU requires consistent categories and greater disaggregation of information presented in the effective tax rate reconciliation and requires disclosure of income taxes paid in both domestic and foreign jurisdictions. The company adopted this standard prospectively by providing the revised disclosures for the year ended January 3, 2026 and by providing pre-ASU disclosures for the prior periods. These changes did not impact the company's Consolidated Financial Statements but provide additional information for users of the financial statements. See Note 7 to these Notes to the Consolidated Financial Statements for further details. Accounting Pronouncements - To be adopted In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses, which requires disclosure of disaggregated information about specific categories underlying certain income statement expense line items in the footnotes to the financial statements for both annual and interim periods. This ASU is effective for fiscal years beginning after December 15, 2026, and interim reporting periods beginn …

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"EMPLOYEE RETIREMENT PLANS (a) Pension Plans U.S. Plans The company maintains a non-contributory defined benefit plan for its union employees at the Elgin, Illinois facility. Benefits are determined based upon retirement age and years of service with the company. This defined benefit plan was frozen on April 30, 2002, and no further benefits accrue to the participants beyond this date. Plan participants will receive or continue to receive payments for benefits earned on or prior to April 30, 2002 upon reaching retirement age. The company maintains a non-contributory defined benefit plan for its employees at the Smithville, Tennessee facility. Benefits are determined based upon retirement age and years of service with the company. This defined benefit plan was frozen on April 1, 2008, and no further benefits accrue to the participants beyond this date. Plan participants will receive or continue to receive payments for benefits earned on or prior to April 1, 2008 upon reaching retirement age. The company also maintains a retirement benefit agreement with its former Chairman (""Chairman Plan""). The retirement benefits are based upon a percentage of the former Chairmans final base salary. Non-U.S. Plans The company maintains a defined benefit plan for its employees at the Wrexham, the United Kingdom facility. Benefits are determined based upon retirement age and years of service with the company. This defined benefit plan was frozen on April 30, 2010 and no further benefits accr …

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REVENUE RECOGNITION Revenue is recognized when the control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contracts transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The companys contracts can have multiple performance obligations or just a single performance obligation. For contracts with multiple performance obligations, the contracts transaction price is allocated to each performance obligation using the companys best estimate of the standalone selling price of each distinct good or service in the contract. Within the Commercial Foodservice Equipment, the estimated standalone selling price of equipment is based on observable prices. Within the Food Processing Equipment Group, the company estimates the standalone selling price for equipment and services based on expected cost to manufacture the good or complete the service plus an appropriate profit margin. The estimated standalone selling price of aftermarket parts is based on observable prices. As the company's standard payment terms are less than one year, the company does not assess whether a contract has a significant financing component. The company treats shipping and handling ac …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"An operating segment is defined as a component of an enterprise which has discrete financial information that is evaluated regularly. The company determined that its Chief Executive Officer is the Chief Operating Decision Maker (the ""CODM"") who possesses the ultimate authority with respect to assessment of performance, allocation of resources, and all strategic actions of the company. In performing this responsibility, the CODM regularly reviews key internal management reports, financial information including forecasts, and quarterly results, which are prepared at the operating segment level. In accordance with ASC 280-10, Segment Reporting , the company operates in two reportable operating segments defined by management reporting structure and operating activities. The companys reportable segments are: (i) Commercial Foodservice Equipment Group: Manufactures, sells, and distributes foodservice equipment for the restaurant and institutional kitchen industry (ii) Food Processing Equipment Group: Manufactures preparation, cooking, packaging food handling and food safety equipment for the food processing industry Adjusted EBITDA is the profitability metric reported to the CODM for purposes of making decisions about allocation of resources to each segment and assessing performance of each segment. The company defines Adjusted EBITDA as operating income less depreciation, intangible amortization, restructuring, acquisition related adjustments, impairments, stock compensation an …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"COMMON AND PREFERRED STOCK (a) Shares Authorized At January 3, 2026 and December 28, 2024, the company had 95,000,000 authorized shares of common stock and 2,000,000 authorized shares of non-voting preferred stock. (b) Treasury Stock In November 2017, the company's Board of Directors approved a stock repurchase program authorizing the company to repurchase in the aggregate up to 2,500,000 shares of its outstanding common stock. In May 2022, July 2024 and May 2025, the company's Board of Directors approved the company to repurchase an additional 2,500,000, 2,500,000, and 7,500,000 shares of its outstanding common stock under the current program. During 2024, the company repurchased 117,526 shares of its common stock under the program for $16.4 million, including applicable commissions, which represented an average price of $139.39. During 2025, the company repurchased 4,911,050 shares of its common stock under the program for $709.6 million, including applicable commissions, which represented an average price of $144.50. As of January 3, 2026, 8,144,940 shares had been purchased under the 2017 stock repurchase program and 6,855,060 remain authorized for repurchase. The company also treats shares withheld for tax purposes on behalf of employees in connection with the vesting of restricted share grants as common stock repurchases because they reduce the number of shares that would have been issued upon vesting. During 2024, the company repurchased 118,171 shares of its common s …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

The Residential Transaction was completed on February 2, 2026. Following the close of the Residential Transaction, the company owns a 49% non-controlling interest in a new standalone joint venture holding the business. The company received net cash proceeds of approximately $565 million and a $135 million promissory note from the joint venture, subject to future closing adjustments

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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. 2024 Acquisitions During 2024, 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 date for the 2024 acquisitions and are summarized as follows (in thousands): Preliminary Opening Balance Sheet Measurement Period Adjustments Adjusted Opening Balance Sheet Cash $ 7,868 $ 9 $ 7,877 Current assets 41,836 (1,630) 40,206 Property, plant and equipment 31,515 (504) 31, …

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9.7 million

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The following table summarizes the company's net sales by reportable operating segment and geographical location (in thousands): Commercial Foodservice Food Processing Residential Kitchen Total Three Months Ended September 27, 2025 United States and Canada $ 433,705 $ 120,827 $ 110,781 $ 665,313 Asia 53,904 8,338 4,500 66,742 Europe and Middle East 95,349 52,730 57,067 205,146 Latin America 23,043 19,458 2,429 44,930 Total $ 606,001 $ 201,353 $ 174,777 $ 982,131 Nine Months Ended September 27, 2025 United States and Canada $ 1,260,140 $ 338,940 $ 334,754 $ 1,933,834 Asia 154,454 19,498 10,506 184,458 Europe and Middle East 273,644 172,641 180,660 626,945 Latin America 61,085 54,375 5,920 121,380 Total $ 1,749,323 $ 585,454 $ 531,840 $ 2,866,617 Three Months Ended September 28, 2024 United States and Canada $ 418,398 $ 104,508 $ 112,912 $ 635,818 Asia 53,057 8,105 5,994 67,156 Europe and Middle East 93,058 51,716 52,952 197,726 Latin America 27,204 13,545 1,360 42,109 Total $ 591,717 $ 177,874 $ 173,218 $ 942,809 Nine Months Ended September 28, 2024 United States and Canada $ 1,285,806 $ 317,711 $ 344,731 $ 1,948,248 Asia 159,838 22,022 12,433 194,293 Europe and Middle East 266,121 159,563 176,577 602,261 Latin America 71,175 39,164 6,140 116,479 Total $ 1,782,940 $ 538,460 $ 539,881 $ 2,861,281

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Recently Issued Accounting Standards

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Employee Retirement Plans The following table summarizes the company's net periodic pension benefit related to the AGA Group pension plans (in thousands): Three Months Ended Nine Months Ended Sep 27, 2025 Sep 28, 2024 Sep 27, 2025 Sep 28, 2024 Net Periodic Pension Benefit: Interest cost $ 12,141 $ 11,225 $ 35,875 $ 32,814 Expected return on assets (14,567) (15,930) (43,043) (46,567) Amortization of net loss 16 14 46 40 Amortization of prior service cost 701 686 2,072 2,005 $ (1,709) $ (4,005) $ (5,050) $ (11,708) The pension costs for all other plans of the company were not material during the period. All components of pension benefit are included within Net periodic pension benefit in the Condensed Consolidated Statements of Comprehensive Income.

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Revenue Recognition Disaggregation of Revenue The company disaggregates its net sales by reportable operating segment and geographical location as the company believes it best depicts how the nature, timing and uncertainty of its net sales and cash flows are affected by economic factors. In general, the Commercial Foodservice Equipment and Residential Foodservice Equipment Groups recognize revenue at the point in time control transfers to their customers based on contractual shipping terms. Revenue from equipment sold under the company's long-term contracts within the Food Processing Equipment group is recognized over time as the equipment is manufactured and assembled. The following table summarizes the company's net sales by reportable operating segment and geographical location (in thousands): Commercial Foodservice Food Processing Residential Kitchen Total Three Months Ended September 27, 2025 United States and Canada $ 433,705 $ 120,827 $ 110,781 $ 665,313 Asia 53,904 8,338 4,500 66,742 Europe and Middle East 95,349 52,730 57,067 205,146 Latin America 23,043 19,458 2,429 44,930 Total $ 606,001 $ 201,353 $ 174,777 $ 982,131 Nine Months Ended September 27, 2025 United States and Canada $ 1,260,140 $ 338,940 $ 334,754 $ 1,933,834 Asia 154,454 19,498 10,506 184,458 Europe and Middle East 273,644 172,641 180,660 626,945 Latin America 61,085 54,375 5,920 121,380 Total $ 1,749,323 $ 585,454 $ 531,840 $ 2,866,617 Three Months Ended September 28, 2024 United States and Canada $ 4 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Segment Information An operating segment is defined as a component of an enterprise, which has discrete financial information that is evaluated regularly. The company determined that its Chief Executive Officer is the Chief Operating Decision Maker (the ""CODM""), who possesses the ultimate authority with respect to assessment of performance, allocation of resources, and all strategic actions of the company. In performing this responsibility, the CODM regularly reviews key internal management reports, financial information including forecasts, and quarterly results, which are prepared at the operating segment level. In accordance with ASC 280-10, Segment Reporting, the company operates in three reportable operating segments defined by management reporting structure and operating activities. The companys reportable segments are: (i) the Commercial Foodservice Equipment Group, (ii) the Food Processing Equipment Group, and (iii) the Residential Kitchen Equipment Group. Adjusted EBITDA is the profitability metric reported to the CODM for the purposes of making decisions about allocation of resources to each segment and assessing performance of each segment. The company defines Adjusted EBITDA as operating income less depreciation, intangible amortization, restructuring, acquisition related adjustments, impairments, stock compensation and other non-recurring items, which management considers to be outside core operating results. The CODM reviews this metric regularly to compare t …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing