Acquisitions (Tables)

6 Months Ended

Jul. 02, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of recognized identified assets acquired and liabilities assumed

The following table summarizes the preliminary purchase price allocation of the fair value of assets acquired and liabilities assumed in the Carling acquisition:

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Cash, net of cash acquired	$	314,094
Allocation of consideration to assets acquired and liabilities assumed:
Trade receivables, net	26,129
Inventories	56,657
Other current assets	3,454
Property, plant, and equipment	57,329
Intangible assets	126,390
Goodwill	97,917
Other non-current assets	4,007
Current liabilities	(21,495)
Other non-current liabilities	(36,294)
	$	314,094

The following table summarizes the final purchase price allocation of the fair value of assets acquired and liabilities assumed in the Hartland acquisition:

(in thousands)	Purchase Price Allocation
Total purchase consideration:
Cash, net of cash acquired, and restricted cash	$	108,516
Allocation of consideration to assets acquired and liabilities assumed:
Trade receivables, net	12,915
Inventories	35,808
Other current assets	2,224
Property, plant, and equipment	6,296
Intangible assets	39,660
Goodwill	38,502
Other non-current assets	3,782
Current liabilities	(24,861)
Other non-current liabilities	(5,810)
	$	108,516

Summary of business acquisition, pro forma information

The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company, Hartland and Carling as though the acquisitions had occurred as of December 29, 2019. The Company has not included pro forma results of operations for Embed as its operations were not material to the Company. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the Hartland and Carling acquisitions occurred as of December 29, 2019 or of future consolidated operating results.

	For the Three Months Ended				For the Six Months Ended
(in thousands, except per share amounts)	July 2, 2022		June 26, 2021		July 2, 2022		June 26, 2021
Net sales	$	618,436	$	568,328	$	1,241,766	$	1,085,727
Income before income taxes	109,612		98,748		248,506		177,343
Net income	87,016		84,927		208,254		147,500
Net income per share — basic	3.52		3.45		8.43		6.01
Net income per share — diluted	3.48		3.41		8.33		5.93

Summary of business acquisition, pro forma information, nonrecurring adjustments

Pro forma results presented above primarily reflect the following adjustments:

	For the Three Months Ended				For the Six Months Ended
(in thousands)	July 2, 2022		June 26, 2021		July 2, 2022		June 26, 2021
Amortization(a)	$	—	$	(2,318)	$	—	$	(4,949)
Depreciation	—		(28)		—		(71)
Transaction costs(b)	—		128		—		835
Amortization of inventory step-up(c)	—		3,319		4,769		6,808
Income tax benefit of above items	—		(208)		(1,049)		(517)

(a)The amortization adjustment for the three and six months ended June 26, 2021 primarily reflects incremental amortization resulting from the measurement of intangibles at their fair values.

(b)The transaction cost adjustments reflect the reversal of certain legal and professional fees from the three and six months ended June 26, 2021.

(c)The amortization of inventory step-up adjustment reflects the reversal of the amount recognized during the six months ended July 2, 2022, and three and six months ended June 26, 2021. The inventory step-up was amortized over four months as the inventory was sold.