NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (1) Nature of Operations (2) Purchase Accounting 21 On December 21, 2001, the company completed its acquisition  of Blodgett Holdings, Inc. (“Blodgett”) from Maytag Corporation (“Maytag”). During 2003, the company paid $19.1 million of principal  and interest paid in kind to Maytag. During 2004, the company paid the remaining $2.0 million of notes. At January 1, 2005, there was no balance outstanding due to Maytag. In August 2002, the company reached final settlement with Maytag on post-closing adjustments pertaining to the acquisition of Blodgett. As a result, the final purchase price and the principal amount of notes due to Maytag were reduced by $1.8 million. The goodwill and other intangible assets, which are comprised of trademarks, are subject to the non-amortization provisions of SFAS No. 142 and are allocable to the Cooking Systems Group  for purposes of segment reporting (see Note 11 for further discus- sion). Neither of these assets is anticipated to be deductible for income taxes. The company has numerous licenses and patents to manufac- ture, use and sell its products and equipment. Management believes the loss of any one of these licenses or patents would  not have a material adverse effect on the financial and operating results of the company. The company purchases raw materials and component parts, the majority of which are standard commodity type materials, from a number of suppliers. Although certain component parts are procured from a sole source, the company can purchase  such parts from alternate vendors. The allocation of net cash paid for the Blodgett acquisition  as of December 29, 2001 and December 28, 2002 is summarized as follows (in thousands): The Middleby Corporation (the “company”) is engaged in the design, manufacture and sale of commercial and institutional foodservice equipment. Its major lines of products consist of conveyor ovens, convection ovens, fryers, ranges, toasters, combi ovens, steamers, broilers, deck ovens, and counter-top cooking and warming equipment. The company manufactures and  assembles this equipment at four factories in the United States and one factory in the Philippines. The company’s end-user customers include: (i) fast food or quick-service restaurants, (ii) full-service restaurants, including casual-theme restaurants, (iii) retail outlets, such as convenience stores, supermarkets and department stores and (iv) public and private institutions, such as hotels, resorts, schools, hospitals, long-term care facilities, correctional facilities, stadiums, airports, corporate cafeterias, military facilities and government agencies. Included in these customers are several large multi-national restaurant chains, which account for a significant portion of the company’s business, although no single customer accounts for more than 10% of net sales. The company’s domestic sales are primarily through independent dealers and distributors and  are marketed by the company’s sales personnel and network of independent manufacturers’ representatives. The company’s  international sales are through a combined network of indepen- dent and company-owned distributors. The company maintains regional sales offices in Asia, Europe and Latin America comple- mented by sales and distribution offices in Canada, China, India, South Korea, Mexico, the Philippines, Spain, Taiwan and  the United Kingdom. The company has accounted for this business combination using the purchase 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 was recorded as goodwill. Under Statement  of Financial Accounting Standards (“SFAS”) No. 142, “Goodwill and Other Intangible Assets,” goodwill and certain other intangible assets in conjunction with the Blodgett acquisition are subject  to the nonamortization provisions of this statement from the date of acquisition. Dec. 29, 2001 Adjustments Dec. 28, 2002 Current assets $ 36,957 $ (197) $ 36,760 Property, plant, and equipment 13,863 (218) 13,645 Goodwill 62,008 756 62,764 Other intangibles 26,300 — 26,300 Liabilities (44,076) (2,174) (46,250) Total purchase price 95,052 (1,833) 93,219 Less: Notes issued at closing (20,054) 1,833 (18,221) Net cash paid for Blodgett at closing $ 74,998 $ — $ 74,998