Business Segment and Geographical Information

12 Months Ended

Jan. 01, 2022

Segment Reporting [Abstract]

Business Segment and Geographical Information

Business Segment and Geographical Information

The Company has combined its operating entities into three reportable operating segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment consists of the fluid-handling and doctoring, cleaning, & filtration product lines; the Industrial Processing segment consists of the wood processing and stock-preparation product lines; and the Material Handling segment consists of the conveying and vibratory, baling, and fiber-based product lines. A description of each segment follows.

•Flow Control – Custom-engineered products, systems, and technologies that control the flow of fluids used in industrial and commercial applications to keep critical processes running efficiently in the packaging, tissue, food, metals, and other industrial sectors. The Company's primary products include rotary sealing devices, steam systems, expansion joints, doctor systems, roll and fabric cleaning devices, and filtration and fiber recovery systems.

•Industrial Processing – Equipment, machinery, and technologies used to recycle paper and paperboard and process timber for use in the packaging, tissue, wood products and alternative fuel industries, among others. The Company's primary products include stock-preparation systems and recycling equipment, chemical pulping equipment, debarkers, stranders, chippers, and logging machinery. In addition, the Company provides industrial automation and digitization solutions to process industries.

•Material Handling – Products and engineered systems used to handle bulk and discrete materials for secondary processing or transport in the aggregates, mining, food, and waste management industries, among others. The Company's primary products include conveying and vibratory equipment and balers. In addition, the Company manufactures and sells biodegradable, absorbent granules used as carriers in agricultural applications and for oil and grease absorption.

The following table presents financial information for the Company's reportable operating segments:

(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Revenue
Flow Control (a)	$	288,788	$	225,444	$	250,339
Industrial Processing	328,762		261,577		301,948
Material Handling (b)	169,029		148,007		152,357
	$	786,579	$	635,028	$	704,644
Income Before Provision for Income Taxes
Flow Control (a,c)	$	65,509	$	51,530	$	55,343
Industrial Processing (d)	66,569		42,971		49,599
Material Handling (b,e)	17,543		14,375		11,600
Corporate (f)	(32,911)		(27,752)		(28,719)
Total operating income	116,710		81,124		87,823
Interest expense, net (g)	(4,554)		(7,242)		(12,542)
Other expense, net (g,h)	(104)		(195)		(6,359)
	$	112,052	$	73,687	$	68,922
Total Assets
Flow Control (a)	$	382,379	$	263,141	$	262,320
Industrial Processing	405,575		379,965		375,194
Material Handling (b)	334,785		273,909		281,057
Corporate (i)	9,473		10,556		20,816
	$	1,132,212	$	927,571	$	939,387

(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Depreciation and Amortization
Flow Control (a)	$	8,366	$	6,333	$	6,603
Industrial Processing	13,467		13,163		13,012
Material Handling (b)	12,341		11,628		12,528
Corporate	128		210		247
	$	34,302	$	31,334	$	32,390
Capital Expenditures
Flow Control (a)	$	4,128	$	2,808	$	2,639
Industrial Processing	6,412		3,123		5,113
Material Handling (b)	2,211		1,539		2,144
Corporate	20		125		61
	$	12,771	$	7,595	$	9,957
Geographical Information
Revenue (j):
United States (b)	$	328,456	$	286,015	$	309,957
China	82,121		51,003		66,480
Canada	79,426		62,059		64,010
Germany (a)	37,178		23,292		29,076
France	28,258		19,725		21,054
Other	231,140		192,934		214,067
	$	786,579	$	635,028	$	704,644
Long-lived Assets (k):
United States (b)	$	43,418	$	40,293	$	42,094
Germany (a)	25,188		6,051		5,925
Canada	8,460		7,221		7,948
Finland	7,347		8,013		6,960
China	6,613		9,844		10,319
Other	16,963		13,220		12,786
	$	107,989	$	84,642	$	86,032

(a)Includes the Clouth business in 2021, which was acquired between July 19, 2021 and August 10, 2021 (see Note 2, Acquisitions).

(b)Includes the Balemaster business in 2021, which was acquired on August 23, 2021 (see Note 2, Acquisitions).

(c)Includes acquisition-related expenses of $6,191,000 and impairment and restructuring charges of $980,000 in 2021. Acquisition-related expenses include amortization expense associated with acquired profit in inventory and backlog, and acquisition costs.

(d)Includes $1,861,000 of impairment charges in 2020 and $2,336,000 in 2019.

(e)Includes acquisition-related expenses of $2,851,000 in 2021, $350,000 in 2020 and $5,715,000 in 2019. Acquisition-related expenses include amortization expense associated with acquired profit in inventory and backlog, and acquisition costs.

(f)Represents general and administrative expenses.

(g)The Company does not allocate interest and other expense, net to its segments.

(h)Includes a pension plan settlement loss of $5,887,000 in 2019.

(i)Primarily includes cash and cash equivalents, tax assets, ROU assets, and property, plant, and equipment, net.

(j)Revenue is attributed to countries based on customer location.

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