Relationship With Parent and Related Entities |
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| Relationship With Parent and Related Entities | (13) RELATIONSHIP WITH PARENT AND RELATED ENTITIES Related Party Transactions Throughout the periods covered by the Condensed Combined Financial Statements, Midera engaged in sales and purchases of finished goods to and from Middleby subsidiaries. These related party sales to other Middleby entities amount to $0.4 million and $0.5 million, and purchases amount to $0.6 million and $1.1 million, for the three months ended July 4, 2026 and June 28, 2025, respectively. Related party sales to other Middleby entities amount to $1.1 million and $1.1 million, and purchases amount to $2.5 million and $2.4 million, for the six months ended July 4, 2026 and June 28, 2025, respectively. Related Party Balances Amounts due to and due from Middleby affiliates are summarized in the table below:
The loans receivable represented international revolving credit facilities to fund working capital needs outside the United States. At January 3, 2026, these revolving credit facilities had a weighted average per annum interest rate of approximately 3.82%. Allocation of Corporate Expenses The Parent has incurred costs for various corporate services provided to Midera in the ordinary course of business, including executive management, finance, accounting, tax, treasury, human resources, legal, information technology, employee benefits administration, internal audit, supply chain, and other shared services. These corporate expenses have been allocated to Midera based on direct usage or benefit, where identifiable, with the remainder allocated based on headcount, revenue or other relevant measures. Management believes the basis on which the expenses have been allocated to be a reasonable reflection of the utilization of services provided to or the benefit received by us. Cash Management In June 2026, prior to the completion of the Spin-off, the Company ceased participation in the Middleby centralized cash management process and its cash and cash equivalents became held and used solely for its own operations. Before the Company ceased participation in the Middleby centralized cash management process, Middleby provided funding for its operating and investing activities, including pooled cash managed by Middleby treasury to fund operating expenses and capital expenditures. Middleby also directly collected certain of our receivables. The cash presented in the Condensed Combined Balance Sheets represents cash not subject to the Middleby centralized cash management process. Cash held in the Middleby centralized cash management process and commingled accounts with the Parent, or its subsidiaries, has been presented within Net Parent Investment in the Condensed Combined Balance Sheets. Only cash amounts held in bank accounts controlled by Midera entities are reflected in the Condensed Combined Balance Sheets. These activities were reflected as a component of Parent company net investment, and this arrangement was not reflective of the manner in which we would have operated as a standalone business separate from Middleby during the periods presented. Net Parent Investment Net Parent Investment on the Condensed Combined Balance Sheets represents Middleby’s historical investment in Midera, the net effect of allocations from and transactions with Middleby, Midera’s retained earnings and cumulative effect adjustments from the adoption of new accounting standards. Transfers to Parent As discussed in Note 1 in the basis of presentation section, Net Parent Investment is primarily impacted by contributions from Parent which are the result of treasury activity and net funding provided by or distributed to Parent. The components of net parent investment are:
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