Acquisitions (Tables)

12 Months Ended

Dec. 31, 2016

The following table summarizes the purchase method of accounting for the acquisition made in 2016 and the estimated fair values of assets acquired and liabilities assumed:



2016 Acquisition (In thousands)	Total

Net Assets Acquired:
Cash and Cash Equivalents	$	2,277
Accounts Receivable	5,441
Inventories	3,947
Property, Plant, and Equipment	7,179
Other Assets	2,882
Intangible Assets	24,691
Goodwill	38,552
Total assets acquired	84,969

Accounts Payable	5,536
Customer Deposits	2,471
Obligations Under Capital Lease	4,842
Long-Term Deferred Income Taxes	6,148
Other Liabilities	6,913
Total liabilities assumed	25,910
Net assets acquired	$	59,059

Purchase Price:
Cash	$	29,028
Cash Paid to Seller Borrowed Under the Revolving Credit Facility	29,866
Cash Due to Seller	165
Total purchase price	$	59,059

The following table summarizes the purchase method of accounting for the acquisitions made in 2014 and the estimated fair values of assets acquired and liabilities assumed:



2014 Acquisitions (In thousands)	Total

Net Assets Acquired:
Cash and Cash Equivalents	$	674
Inventories	1,064
Other Current Assets	324
Property, Plant, and Equipment	847
Intangibles
Customer relationships	4,700
Intellectual property	2,600
Other	360
Goodwill	3,463
Total assets acquired	14,032

Total Liabilities Assumed	1,001
Net assets acquired	$	13,031

Purchase Price:
Cash	$	11,840
Contingent Consideration	1,191
Total purchase price	$	13,031

Unaudited Supplemental Pro Forma Information

Had the acquisition of PAAL been completed as of the beginning of 2015, the Company’s pro forma results of operations for 2016 and 2015 would have been as follows:



(In thousands, except per share amounts)	2016		2015
Revenues	$	427,273	$	444,350

Net Income Attributable to Kadant	$	35,321	$	33,881

Earnings per Share Attributable to Kadant:
Basic	$	3.25	$	3.12
Diluted	$	3.17	$	3.05

Pro forma results include non-recurring pro forma adjustments that were directly attributable to the business combination to reflect amounts as if the acquisition of PAAL had been completed as of the beginning of 2015, as follows:


•	Pre-tax charge to SG&A expenses of $1,832,000 in 2015 and reversal in 2016, for acquisition-related transaction costs.


•	Pre-tax charge to cost of revenues of $458,000 in 2015 and reversal in 2016, for the sale of PAAL inventory revalued at the date of acquisition.


•	Pre-tax charge to SG&A expenses of $1,468,000 in 2015 and reversal in 2016, for intangible amortization related to acquired backlog.


•	Reversal of $1,636,000 of interest expense in 2015 and $454,000 in 2016 related to pre-acquisition debt, which was settled in the business combination.

These pro forma results of operations have been prepared for comparative purposes only, and they do not purport to be indicative of the results of operations that actually would have resulted had the acquisition of PAAL occurred as of the beginning of 2015, or that may result in the future.