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



	Three Months Ended				Nine Months Ended
	September 29,		September 30,		September 29,		September 30,
(In thousands)	2018		2017		2018		2017
Revenues:
Papermaking Systems (a)	$	126,770	$	111,135	$	350,811	$	295,416
Wood Processing Systems (b)	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



	Three Months Ended						Nine Months Ended
	September 29,			September 30,			September 29,			September 30,
(In thousands)	2018			2017			2018			2017
Income Before Provision for Income Taxes:
Papermaking Systems (c)	$	25,919		$	21,684		$	61,402		$	53,247
Wood Processing Systems (d)	8,704			4,418			21,380			6,511
Corporate and Fiber-based Products (e)	(7,248		)	(6,428		)	(19,008		)	(16,174		)
Total operating income	27,375			19,674			63,774			43,584
Interest expense, net (f)	(1,708		)	(1,188		)	(4,985		)	(1,722		)
Other expense, net	(245		)	(216		)	(736		)	(637		)
	$	25,422		$	18,270		$	58,053		$	41,225

Capital Expenditures:
Papermaking Systems	$	1,348		$	3,790		$	9,837		$	6,567
Wood Processing Systems	1,026			1,358			2,586			1,649
Corporate and Other	232			135			394			502
	$	2,606		$	5,283		$	12,817		$	8,718


(a)	Includes $917,000 in the three-month period ended September 29, 2018 and $12,247,000 in the nine-month period ended September 29, 2018 from 2017 acquisitions.

(b) Includes $52,310,000 in the nine-month period ended September 29, 2018 from a 2017 acquisition.

(c) Includes $378,000 in the three-month period ended September 29, 2018 and $1,717,000 in the nine-month period ended September 29, 2018 for restructuring costs (see Note 2) and $278,000 in the three-month period ended September 30, 2017 and $593,000 in the nine-month period ended September 30, 2017 for acquisition transaction costs and amortization of acquired profit in inventory.

(d) Includes $4,625,000 in the three-month period ended September 30, 2017, $252,000 in the nine-month period ended September 29, 2018 and $8,727,000 in the nine-month period ended September 30, 2017 for acquisition-related costs.

(e) Corporate primarily includes general and administrative expenses.

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