upon management’s commitment to an exit plan, which is generally before an actual liability has been incurred. This statement is effective for financial statements issued for fiscal years beginning after December 31, 2002. The adoption of SFAS No. 146 did  not have a material impact on the company’s financial position, results of operations or cash flows. In December 2002, the FASB issued Statement No. 148, “Accounting for Stock-Based Compensation-Transition and Disclosure–an amendment of FASB Statement No. 123.” This statement amends SFAS No. 123 to provide alternative methods  of transition for voluntary change to the fair value based method of accounting for stock-based employee compensation and amends the disclosure requirements to require prominent disclo- sures in both annual and interim financial statements about the method of accounting for stock-based employee compensation and the effect of the method used on reported results. The company applied this guidance in the 2003 financial statements. In April 2003, the FASB issued SFAS No. 149, “Amendment of Statement 133 on Derivative Instruments and Hedging Activities.” This statement requires that contracts with comparable character- istics be accounted for similarly. This statement is effective for contracts entered into or modified after June 30, 2003. The  adoption of SFAS No. 149 did not have a material impact on the company’s financial position, results of operations or cash flows. In May 2003, the FASB issued SFAS No. 150, “Accounting  for Certain Financial Instruments with Characteristics of both Liabilities and Equity.” This statement establishes standards for classifying and measuring certain financial instruments entered into or modified after May 31, 2003, and otherwise is effective at the beginning of the first interim period beginning after June 15, 2003. The adoption of SFAS No. 150 did not have a material impact on the company’s financial position, results of operations or cash flows. In December 2003, the FASB issued a revision to SFAS No. 132 “Employers’ Disclosure about Pensions and Other Postretirement Benefits.” This statement retains the disclosures previously required by SFAS No. 132 but adds additional disclosure require- ments about the assets, obligations, cash flows and net periodic benefit cost of defined benefit pension plans and other defined benefit postretirement plans. It also calls for the required informa- tion to be provided separately for pension plans and for other postretirement benefit plans. The company has incorporated the new disclosures into the footnotes of the financial statements. In November 2004, the FASB issued SFAS No. 151, “Inventory Costs – an amendment of ARB No. 43, Chapter 4”. This statement amends the guidance in ARB No. 43, Chapter 4 to clarify the accounting for abnormal amounts of idle facility expense, freight, handling costs and wasted material. This statement requires  During the fourth quarter of 2004 the company entered into  a new $160.0 million senior secured credit facility in order to increase the company’s borrowing availability. Terms of the new agreement provide for $70.0 million of term loans and $90.0 million of availability under a revolving credit line. As of January 1, 2005, the company had $121.3 million outstanding under this facility, including $51.3 million of borrowings under the revolving credit line. The company also had $3.9 million in outstanding letters of credit, which reduced the borrowing availability under the revolving credit line. The following is a summary of long-term debt at January 1, 2005 and January 3, 2004: (5) Financing Arrangements In December 2004, the FASB issued a revision to SFAS No. 123 “Accounting for Stock Based Compensation”. This statement established standard for the accounting for transactions in which an entity exchanges its equity instruments for goods or services and addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value  of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. This statement is effective for interim periods beginning after June 15, 2005. The company will apply this guidance prospectively. The company is in the process of determining what impact the application of this  guidance will have on the company’s financial position, results  of operations or cash flows. that these items be recognized as current period costs and also requires that allocation of fixed production overheads to the costs of conversion be based on the normal capacity of the production facilities. This statement is effective for inventory costs incurred during fiscal years beginning after June 15, 2005. The company will apply this guidance prospectively. The company is in the process of determining what impact the application of this  guidance will have on the company’s financial position, results  of operations or cash flows. (dollars in thousands) 2004 2003 Senior secured revolving credit line $ 51,265 $ 1,500 Senior secured bank term loans 70,000 53,000 Notes to Maytag — 2,000 Other note 2,458 — Total debt 123,723 56,500 Less current maturities of long-term debt 10,480 14,500 Long-term debt $113,243 $ 42,000 26 MIDDLEBY CORPORATION AND SUBSIDIARIES