Acquisitions (Tables)

12 Months Ended

Dec. 30, 2017

The following table summarizes the estimated fair values of assets acquired and liabilities assumed and the purchase price of the Company's 2017 acquisitions. The purchase price allocation is based upon preliminary information and is subject to change if additional information about the facts and circumstances that existed at the acquisition date becomes available. The final determination of fair value of the assets acquired and liabilities assumed may result in adjustments to the assets and liabilities, including goodwill. During the year ended December 30, 2017, the Company made certain adjustments to its purchase price allocation primarily to adjust working capital, which resulted in a $1,282,000 increase to goodwill initially recorded. Any subsequent measurement period adjustments are not expected to have a material impact on the Company's results of operations.



	NII FPG		Unaflex		Other
(In thousands)	July 5, 2017		August 14, 2017		October 30, 2017		Total

Net Assets Acquired:
Cash and Cash Equivalents	$	2,219	$	—	$	—	$	2,219
Accounts Receivable	6,542		2,079		—		8,621
Inventories	25,246		1,704		—		26,950
Property, Plant, and Equipment	12,912		1,194		284		14,390
Other Assets	2,375		72		—		2,447
Definite-Lived Intangible Assets
Customer relationships	44,700		8,000		1,500		54,200
Product technology	17,100		2,300		—		19,400
Other	2,540		900		—		3,440
Indefinite-Lived Intangible Assets
Tradenames	8,500		—		—		8,500
Goodwill	85,508		15,657		716		101,881
Total assets acquired	207,642		31,906		2,500		242,048

Accounts Payable	4,970		358		—		5,328
Customer Deposits	7,396		100		—		7,496
Long-Term Deferred Income Taxes	16,668		—		—		16,668
Other Liabilities	5,597		174		—		5,771
Total liabilities assumed	34,631		632		—		35,263
Net assets acquired	$	173,011	$	31,274	$	2,500	$	206,785

Purchase Price:
Cash Paid	$	2,993	$	—	$	—	$	2,993
Cash Paid to Seller Borrowed Under the Revolving Credit Facility	170,018		31,274		2,500		203,792
Total purchase price	$	173,011	$	31,274	$	2,500	$	206,785

The following table summarizes the estimated fair values of assets acquired and liabilities assumed and the purchase price of PAAL.



	PAAL
(In thousands)	April 4, 2016

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
Definite-Lived Intangible Assets
Customer relationships	15,831
Product technology	4,203
Tradenames	2,278
Other	2,379
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	$	29,193
Cash Paid to Seller Borrowed Under the Revolving Credit Facility	29,866
Total purchase price	$	59,059

Unaudited Supplemental Pro Forma Information

Had the acquisitions of NII FPG and Unaflex been completed as of the beginning of 2016, the Company’s pro forma results of operations for 2017 and 2016 would have been as follows:



(In thousands, except per share amounts)	December 30, 2017		December 31, 2016
Revenues	$	565,710	$	508,832

Net Income Attributable to Kadant	$	44,159	$	30,638

Earnings per Share Attributable to Kadant:
Basic	$	4.02	$	2.82
Diluted	$	3.90	$	2.75

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)	December 31, 2016		January 2, 2016
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