Business Segment and Geographical 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 Papermaking Systems segment develops, manufactures, and markets a range of equipment and products for the global papermaking, paper recycling, recycling and waste management, and other process industries. The Company's principal products include custom-engineered stock-preparation systems and equipment for the preparation of wastepaper for conversion into recycled paper and balers and related equipment used in the processing of recyclable and waste materials; fluid-handling systems and equipment used in industrial piping systems to compensate for movement and to efficiently transfer fluid, power, and data; doctoring systems and equipment and related consumables important to the efficient operation of paper machines and other industrial processes; and filtration and cleaning systems essential for draining, purifying, and recycling process water and cleaning fabrics, belts, and rolls in various process industries.

The Wood Processing Systems segment develops, manufactures, and markets stranders, debarkers, chippers, and logging machinery used in the harvesting and production of lumber and OSB. Through this segment, the Company also provides refurbishment and repair of pulping equipment for the pulp and paper industry.

The Fiber-based Products business manufactures and sells biodegradable, absorbent granules derived from papermaking by-products for use primarily as carriers for agricultural, home lawn and garden, and professional lawn, turf and ornamental applications, as well as for oil and grease absorption.



(In thousands)	December 29, 2018		December 30, 2017		December 31, 2016
Business Segment Information
Revenues by Product Line:
Papermaking Systems:
Stock-Preparation	$	221,933	$	193,838	$	171,378
Fluid-Handling	131,830		104,136		89,145
Doctoring, Cleaning, & Filtration	116,136		109,631		105,938
Papermaking Systems	$	469,899	$	407,605	$	366,461
Wood Processing Systems	151,366		95,053		36,850
Fiber-based Products	12,521		12,375		10,815
	$	633,786	$	515,033	$	414,126



Income from Continuing Operations Before Provision for Income Taxes:
Papermaking Systems (a)	$	83,454		$	73,069		$	58,025
Wood Processing Systems (b)	31,237			10,005			8,327
Corporate and Fiber-based Products (c)	(26,093		)	(21,449		)	(19,710		)
Total operating income	88,598			61,625			46,642
Interest expense, net (d)	(6,653		)	(3,100		)	(1,024		)
Other expense, net (d, e)	(2,417		)	(872		)	(1,069		)
	$	79,528		$	57,653		$	44,549
Total Assets:
Papermaking Systems	$	462,297		$	494,919		$	407,538
Wood Processing Systems	247,553			257,467			52,407
Other (f)	15,899			8,708			10,746
	$	725,749		$	761,094		$	470,691
Depreciation and Amortization:
Papermaking Systems	$	12,561		$	11,239		$	11,513
Wood Processing Systems	10,317			7,515			2,188
Other	690			621			625
	$	23,568		$	19,375		$	14,326
Capital Expenditures:
Papermaking Systems	$	12,717		$	14,359		$	5,504
Wood Processing Systems	3,272			2,333			29
Other	570			589			271
	$	16,559		$	17,281		$	5,804
Geographical Information
Revenues (g):
United States	$	234,487		$	182,788		$	165,335
China	89,645			63,910			43,299
Canada	61,096			47,611			28,888
Germany	26,577			32,026			18,095
Finland	10,934			8,607			3,885
Other	211,047			180,091			154,624
	$	633,786		$	515,033		$	414,126
Long-lived Assets (h):
United States	$	35,446		$	32,852		$	18,482
China	11,069			11,685			10,714
Canada	8,193			9,449			1,125
Finland	6,998			5,841			—
Germany	6,223			6,452			5,792
Other	12,228			13,444			11,591
	$	80,157		$	79,723		$	47,704


(a)	Includes $787,000 in 2017 and $3,491,000 in 2016 of acquisition-related expenses. Acquisition-related expenses include acquisition transaction costs and amortization of acquired profit in inventory and backlog. Includes restructuring costs of $1,717,000 in 2018 and $203,000 in 2017, and other income of $317,000 in 2016 (see Note 8).


(b)	Includes $252,000 in 2018 and $11,163,000 in 2017 of acquisition-related expenses.


(c)	Corporate primarily includes general and administrative expenses, including $1,321,000 in 2018 of acquisition-related expenses.


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


(e)	Includes a curtailment loss of $1,425,000 in 2018 (see Note 3, Employee Benefit Plans, under Pension and Other Post-Retirement Benefits Plans).


(f)	Primarily includes Corporate and Fiber-based Products' cash and cash equivalents, tax assets, and property, plant, and equipment.


(g)	Revenues are attributed to countries based on customer location.


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