MIDDLEBY CorpMIDD
MIDDLEBY Corp Segments Disclosure
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 company’s 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 and other non-recurring items which management considers to be outside core operating results. The CODM reviews this metric regularly to compare the profitability of segments, identify trends, and evaluate which segments require additional resources or strategic adjustments. The CODM uses Adjusted EBITDA to support the allocation of resources predominantly in the annual budget and forecasting process. The company believes that investors find this measure useful in comparing our operating performance to that of other companies in our industry because this measure generally illustrates the underlying performance of the business.
Management believes that inter-segment sales are made at established arm's length transfer prices. All inter-segment transactions are eliminated and values are presented net of eliminations. The accounting policies of the segments are the same as those described in the summary of significant accounting policies.
The following table summarizes the results of operations for the company’s business segments(1) (in thousands):
| Commercial Foodservice | Food Processing | Corporate and Other(2) | Total | ||||||||||||||||||||
| 2025 | |||||||||||||||||||||||
| Net sales | $ | 2,351,047 | $ | 850,155 | $ | — | $ | 3,201,202 | |||||||||||||||
| Cost of sales | 1,406,926 | 541,281 | 1,080 | 1,949,287 | |||||||||||||||||||
Other segment items(3) | 317,439 | 137,350 | 77,636 | 532,425 | |||||||||||||||||||
Segment adjusted EBITDA(5) | 626,682 | 171,524 | (78,716) | 719,490 | |||||||||||||||||||
Depreciation expense(6) | 28,357 | 12,755 | 2,630 | 43,742 | |||||||||||||||||||
Amortization expense(7) | 43,557 | 11,698 | 6,308 | 61,563 | |||||||||||||||||||
| Net capital expenditures | 28,476 | 41,449 | 804 | 70,729 | |||||||||||||||||||
| Total assets | 3,569,952 | 1,438,433 | 1,306,781 | 6,315,166 | |||||||||||||||||||
Long-lived assets(8) | 365,990 | 189,130 | 156,562 | 711,682 | |||||||||||||||||||
| 2024 | |||||||||||||||||||||||
| Net sales | $ | 2,380,384 | $ | 769,855 | $ | — | $ | 3,150,239 | |||||||||||||||
| Cost of sales | 1,436,836 | 464,424 | (2,840) | 1,898,420 | |||||||||||||||||||
Other segment items(3,4) | 289,093 | 108,627 | 62,197 | 459,917 | |||||||||||||||||||
Segment adjusted EBITDA(5) | 654,455 | 196,804 | (59,357) | 791,902 | |||||||||||||||||||
Depreciation expense(6) | 27,794 | 10,213 | 1,755 | 39,762 | |||||||||||||||||||
Amortization expense(7) | 49,133 | 8,091 | 7,127 | 64,351 | |||||||||||||||||||
| Net capital expenditures | 23,034 | 12,822 | 834 | 36,690 | |||||||||||||||||||
| Total assets | 3,603,768 | 1,196,649 | 2,482,734 | 7,283,151 | |||||||||||||||||||
Long-lived assets(8) | 333,385 | 139,798 | 1,635,863 | 2,109,046 | |||||||||||||||||||
| 2023 | |||||||||||||||||||||||
| Net sales | $ | 2,485,317 | $ | 756,773 | $ | — | $ | 3,242,090 | |||||||||||||||
| Cost of sales | 1,488,685 | 468,474 | 853 | 1,958,012 | |||||||||||||||||||
Other segment items(3) | 305,010 | 101,014 | 74,269 | 480,293 | |||||||||||||||||||
Segment adjusted EBITDA(5) | 691,622 | 187,285 | (75,122) | 803,785 | |||||||||||||||||||
Depreciation expense(6) | 26,615 | 8,659 | 1,507 | 36,781 | |||||||||||||||||||
Amortization expense(7) | 56,168 | 9,831 | 7,137 | 73,136 | |||||||||||||||||||
| Net capital expenditures | 37,940 | 16,332 | 4,902 | 59,174 | |||||||||||||||||||
| Total assets | 3,697,258 | 1,067,968 | 2,141,465 | 6,906,691 | |||||||||||||||||||
Long-lived assets(8) | 338,438 | 104,837 | 1,654,073 | 2,097,348 | |||||||||||||||||||
(1)Non-operating expenses are not allocated to the reportable 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 and assets held for sale - discontinued operations.
(3)Other segment items for each reportable segment includes operating expenses, which primarily consists of selling, general and administrative expenses. Other segment items excludes the impact of depreciation, intangible amortization, restructuring, impairments, stock compensation and other items that neither relate to the ordinary course of the company’s business nor reflect the company’s underlying business performance.
(4)Gain on sale of plant is included in Food Processing.
(5)Excludes the impacts mentioned in Other segment items.
(6)Includes depreciation on right of use assets.
(7)Includes amortization of deferred financing costs and Convertible Notes issuance costs.
(8)Long-lived assets consist of property, plant and equipment, long-term deferred tax assets, pension benefit assets, other assets and non-current assets held for sale - discontinued operations.
A reconciliation of Adjusted EBITDA to net earnings from continuing operations is as follows (in thousands):
| 2025 | 2024 | 2023 | |||||||||||||||
| Adjusted EBITDA | $ | 719,490 | $ | 791,902 | $ | 803,785 | |||||||||||
Less: Other segment operating expenses(1) | 144,599 | 147,779 | 151,358 | ||||||||||||||
| Income from continuing operations | 574,891 | 644,123 | 652,427 | ||||||||||||||
| Interest expense and deferred financing amortization, net | 93,828 | 93,356 | 121,129 | ||||||||||||||
| Net periodic pension benefit (other than service cost & curtailment) | (6,294) | (14,872) | (9,040) | ||||||||||||||
| Other expense/(income), net | 5,082 | (458) | 4,258 | ||||||||||||||
| Earnings from continuing operations before income taxes | 482,275 | 566,097 | 536,080 | ||||||||||||||
| Provision for income taxes | 115,008 | 145,119 | 123,076 | ||||||||||||||
| Net earnings from continuing operations | $ | 367,267 | $ | 420,978 | $ | 413,004 | |||||||||||
(1)Consists of the impact of depreciation, intangible amortization, restructuring, impairments, stock compensation and other items that neither relate to the ordinary course of the company’s business nor reflect the company’s underlying business performance.
Geographic Information
Long-lived assets, excluding goodwill and other intangibles, is as follows (in thousands):
| Jan 3, 2026 | Dec 28, 2024 | ||||||||||
| United States and Canada | $ | 407,979 | $ | 395,448 | |||||||
| Asia | 36,994 | 37,600 | |||||||||
| Europe and Middle East | 254,687 | 184,933 | |||||||||
| Latin America | 12,022 | 10,245 | |||||||||
| Total International | 303,703 | 232,778 | |||||||||
| Total long-lived assets - continuing operations | 711,682 | 628,226 | |||||||||
| Non-current assets held for sale - discontinued operations | — | 1,480,820 | |||||||||
| Total long-lived assets | $ | 711,682 | $ | 2,109,046 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 4, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 2, 2022 | |
| 2021 | Mar 3, 2021 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.