Nature of Operations and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 29, 2018

Accounting Policies [Abstract]

Supplemental Cash Flow Information

	Nine Months Ended
(In thousands)	September 29, 2018		September 30, 2017
Cash Paid for Interest	$	5,914	$	1,421
Cash Paid for Income Taxes, Net of Refunds	$	20,823	$	12,479
Non-Cash Investing Activities:
Estimated post-closing adjustment (a)	$	397	$	—
Fair value of assets acquired	$	—	$	241,141
Cash paid for acquired businesses	—		(206,447		)
Liabilities assumed of acquired businesses	$	—	$	34,694
Non-cash additions to property, plant and equipment	$	783	$	1,938
Non-Cash Financing Activities:
Issuance of Company common stock upon vesting of restricted stock units	$	3,976	$	3,018
Dividends declared but unpaid	$	2,444	$	2,312

(a) Represents an estimated post-closing purchase price adjustment related to the 2017 acquisition of certain assets of Unaflex, LLC, which is expected to be settled in 2018.

Cash and Cash Equivalents

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company's condensed consolidated balance sheet that are shown in aggregate in the accompanying condensed consolidated statement of cash flows:

(In thousands)	September 29, 2018		September 30, 2017		December 30, 2017		December 31, 2016
Cash and cash equivalents	$	57,384	$	90,622	$	75,425	$	71,487
Restricted cash	675		766		1,421		2,082
Total Cash, Cash Equivalents, and Restricted Cash	$	58,059	$	91,388	$	76,846	$	73,569

Restricted Cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company's condensed consolidated balance sheet that are shown in aggregate in the accompanying condensed consolidated statement of cash flows:

(In thousands)	September 29, 2018		September 30, 2017		December 30, 2017		December 31, 2016
Cash and cash equivalents	$	57,384	$	90,622	$	75,425	$	71,487
Restricted cash	675		766		1,421		2,082
Total Cash, Cash Equivalents, and Restricted Cash	$	58,059	$	91,388	$	76,846	$	73,569

Inventories

The components of inventories are as follows:

	September 29, 2018		December 30, 2017
(In thousands)
Raw Materials and Supplies	$	43,739	$	38,952
Work in Process	23,895		18,203
Finished Goods	24,102		27,778
	$	91,736	$	84,933

Acquired Intangible Assets

Acquired intangible assets by major asset class are as follows:

(In thousands)	Gross		Currency Translation			Accumulated Amortization			Net
September 29, 2018
Definite-Lived
Customer relationships	$	113,283	$	(2,716	)	$	(35,873	)	$	74,694
Product technology	46,501		(1,282		)	(22,653		)	22,566
Tradenames	5,227		(344		)	(1,864		)	3,019
Other	13,744		(88		)	(11,375		)	2,281
	178,755		(4,430		)	(71,765		)	102,560
Indefinite-Lived
Tradenames	16,600		86			—			16,686
Acquired Intangible Assets	$	195,355	$	(4,344	)	$	(71,765	)	$	119,246

(In thousands)	Gross		Currency Translation			Accumulated Amortization			Net
December 30, 2017
Definite-Lived
Customer relationships	$	113,301	$	(621	)	$	(28,789	)	$	83,891
Product technology	46,501		(737		)	(19,841		)	25,923
Tradenames	5,227		(262		)	(1,504		)	3,461
Other	13,754		(35		)	(10,863		)	2,856
	178,783		(1,655		)	(60,997		)	116,131
Indefinite-Lived
Tradenames	16,600		305			—			16,905
Acquired Intangible Assets	$	195,383	$	(1,350	)	$	(60,997	)	$	133,036

Changes in the Carrying Amount of Goodwill

The changes in the carrying amount of goodwill by segment are as follows:

(In thousands)	Papermaking Systems Segment			Wood Processing Systems Segment			Total
Balance at December 30, 2017
Gross balance	$	247,014		$	106,496		$	353,510
Accumulated impairment losses	(85,509		)	—			(85,509		)
Net balance	161,505			106,496			268,001
2018 Adjustments
Acquisitions (a)	(17		)	(75		)	(92		)
Currency translation	(3,552		)	(2,276		)	(5,828		)
Total 2018 adjustments	(3,569		)	(2,351		)	(5,920		)
Balance at September 29, 2018
Gross balance	243,445			104,145			347,590
Accumulated impairment losses	(85,509		)	—			(85,509		)
Net balance	$	157,936		$	104,145		$	262,081

(a) Relates to a purchase price allocation adjustment primarily for inventory and a purchase price adjustment for acquisitions completed in 2017. The purchase price allocations for the Company's 2017 acquisitions were finalized in the second and third quarters of 2018.

Warranty Obligations

The changes in the carrying amount of accrued warranty costs included in other current liabilities in the accompanying condensed consolidated balance sheet are as follows:

	Nine Months Ended
(In thousands)	September 29, 2018			September 30, 2017
Balance at Beginning of Year	$	5,498		$	3,843
Provision charged to expense	2,584			1,931
Usage	(1,828		)	(1,506		)
Acquisitions	—			790
Currency translation	(215		)	382
Balance at End of Period	$	6,039		$	5,440

Revenue by Product Line, Product Type, Geography, and Revenue Recognition Method

The Company disaggregates its revenue from contracts with customers by product line, product type, and geography as this best depicts how its revenue is affected by economic factors as shown below:

	Three Months Ended				Nine Months Ended
	September 29,		September 30,		September 29,		September 30,
(In thousands)	2018		2017		2018		2017
Revenues by Product Line:
Papermaking Systems:
Stock-Preparation	$	62,983	$	52,065	$	164,842	$	139,396
Fluid-Handling	33,083		28,532		98,500		73,099
Doctoring, Cleaning, & Filtration	30,704		30,538		87,469		82,921
Papermaking Systems	$	126,770	$	111,135	$	350,811	$	295,416
Wood Processing Systems	37,042		39,714		109,335		61,050
Fiber-based Products	1,933		1,945		9,705		9,427
	$	165,745	$	152,794	$	469,851	$	365,893
Revenues by Product Type:
Parts and Consumables	$	92,749	$	83,755	$	283,591	$	224,239
Capital	72,996		69,039		186,260		141,654
	$	165,745	$	152,794	$	469,851	$	365,893
Revenues by Geography:
North America	$	74,089	$	68,369	$	227,080	$	170,092
Europe	44,912		46,475		131,437		113,178
Asia	32,887		25,215		78,537		53,658
Rest of World	13,857		12,735		32,797		28,965
	$	165,745	$	152,794	$	469,851	$	365,893

The following table presents revenue by revenue recognition method:

	Three Months Ended		Nine Months Ended
	September 29,		September 29,
(In thousands)	2018		2018
Timing of Revenue Recognition:
Point in Time	$	148,524	$	436,527
Over Time	17,221		33,324
	$	165,745	$	469,851

Balances from Contracts with Customers

The following tables present the balances from contracts with customers:

	September 29, 2018		December 30, 2017
(In thousands)
Balances from Contracts with Customers:
Accounts receivable	$	96,326	$	89,624
Contract assets	$	8,315	$	2,374
Contract liabilities	$	48,959	$	38,702