Business Segment and Geographical Information

The Company has combined its operating entities into two reportable operating segments, Papermaking Systems and Wood Processing Systems, and a separate product line, Fiber-based Products. In classifying operational entities into a particular segment, the Company has aggregated businesses with similar economic characteristics, products and services, production processes, customers, and methods of distribution.

The Papermaking Systems segment develops, manufactures, and markets a range of equipment and products for the global papermaking, paper recycling, recycling and waste management, and other process industries. Principal products manufactured by this segment include: custom-engineered stock-preparation systems and equipment for the preparation of wastepaper for conversion into recycled paper and balers and related equipment used in the processing of recyclable and waste materials; fluid-handling systems and equipment used in industrial piping systems to compensate for movement and to efficiently transfer fluid, power, and data; doctoring systems and equipment and related consumables important to the efficient operation of paper machines and other industrial processes; and filtration and cleaning systems essential for draining, purifying, and recycling process water and cleaning fabrics, belts, and rolls in various process industries.

The Wood Processing Systems segment develops, manufactures, and markets stranders, debarkers, chippers, and logging machinery used in the harvesting and production of lumber and OSB. This segment also provides refurbishment and repair of pulping equipment for the pulp and paper industry.

The Fiber-based Products business manufactures and sells biodegradable, absorbent granules derived from papermaking by-products for use primarily as carriers for agricultural, home lawn and garden, and professional lawn, turf and ornamental applications, as well as for oil and grease absorption.



(In thousands)	December 30, 2017			December 31, 2016			January 2, 2016
Business Segment Information
Revenues by Product Line:
Papermaking Systems:
Stock-Preparation	$	193,838		$	171,378		$	148,341
Doctoring, Cleaning, & Filtration	109,631			105,938			101,523
Fluid-Handling	104,136			89,145			92,797
Papermaking Systems	$	407,605		$	366,461		$	342,661
Wood Processing Systems	95,053			36,850			36,387
Fiber-based Products	12,375			10,815			11,059
	$	515,033		$	414,126		$	390,107
Income from Continuing Operations Before Provision for Income Taxes:
Papermaking Systems (a)	$	72,600		$	57,427		$	56,789
Wood Processing Systems (b)	9,690			8,327			10,926
Corporate and Fiber-based Products (c)	(21,537		)	(20,181		)	(17,596		)
Total operating income	60,753			45,573			50,119
Interest expense, net (d)	(3,100		)	(1,024		)	(748		)
	$	57,653		$	44,549		$	49,371



(In thousands)	December 30, 2017		December 31, 2016		January 2, 2016
Total Assets:
Papermaking Systems	$	494,919	$	407,538	$	354,417
Wood Processing Systems	257,467		52,407		53,347
Other (e)	8,708		10,746		7,734
	$	761,094	$	470,691	$	415,498

Depreciation and Amortization:
Papermaking Systems	$	11,239	$	11,513	$	7,898
Wood Processing Systems	7,515		2,188		2,384
Other	621		625		539
	$	19,375	$	14,326	$	10,821
Capital Expenditures:
Papermaking Systems	$	14,359	$	5,504	$	4,639
Wood Processing Systems	2,333		29		198
Other	589		271		642
	$	17,281	$	5,804	$	5,479



Geographical Information
Revenues (f):
United States	$	182,788	$	165,335	$	193,383
China	63,910		43,299		50,814
Canada	47,611		28,888		21,164
Germany	32,026		18,095		9,686
Other	188,698		158,509		115,060
	$	515,033	$	414,126	$	390,107
Long-lived Assets (g):
United States	$	32,852	$	18,482	$	17,373
China	11,685		10,714		12,278
Canada	9,449		1,125		1,312
Germany	6,452		5,792		63
Other	19,285		11,591		11,267
	$	79,723	$	47,704	$	42,293


(a)	Includes $787,000 in 2017 and $3,491,000 in 2016 of acquisition-related expenses. Acquisition-related expenses include acquisition transaction costs and amortization of acquired profit in inventory and backlog. Includes restructuring costs of $203,000 in 2017, other income of $317,000 in 2016, and restructuring costs of $515,000 in 2015 (see Note 8).


(b)	Includes $11,163,000 of acquisition-related expenses in 2017.


(c)	Corporate primarily includes general and administrative expenses.


(d)	The Company does not allocate interest expense, net to its segments.


(e)	Primarily includes Corporate and Fiber-based Products' cash and cash equivalents and property, plant, and equipment.


(f)	Revenues are attributed to countries based on customer location.


(g)	Represents property, plant, and equipment, net.