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Acquisition (Tables) | 6 Months Ended
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Jun. 29, 2019
Business Combinations [Abstract] |
Summary of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of assets acquired and liabilities assumed and the purchase price for SMH. In the quarter ended June 29, 2019, the Company made certain adjustments to the purchase price allocation based on revised valuation assumptions, including an adjustment of $5,980,000 to increase intangible assets and an adjustment of $443,000 to increase long-term deferred income taxes principally due to the tax impact of the increase in intangible assets, resulting in a $5,511,000 decrease in goodwill initially recorded. The effect of these measurement period adjustments would have resulted in an additional $540,000 in selling, general and administrative expenses and $147,000 in cost of revenues in the accompanying condensed consolidated statement of income in the first three months of 2019 if the adjustments to the provisional amounts were recognized as of the acquisition date. The final purchase accounting and purchase price allocation is substantially complete but remains subject to change as the Company continues to refine its valuation of certain acquired assets and the valuation of acquired intangibles.
(In thousands) |  | Total
Net Assets Acquired: |  |
Cash, Cash Equivalents, and Restricted Cash |  | $ | 2,431 |
Accounts Receivable |  | 10,268 |
Inventory |  | 13,061 |
Other Current Assets |  | 900 |
Property, Plant, and Equipment |  | 7,522 |
Other Assets |  | 11,057 |
Definite-Lived Intangible Assets |  |
Customer relationships |  | 58,300 |
Product technology |  | 11,000 |
Other |  | 4,320 |
Indefinite-Lived Intangible Assets |  |
Tradenames |  | 9,500 |
Goodwill |  | 80,991 |
Total assets acquired |  | 209,350 |
Accounts Payable |  | 3,380 |
Customer Deposits |  | 2,908 |
Other Current Liabilities |  | 4,975 |
Long-Term Lease Liabilities |  | 15,244 |
Long-Term Deferred Income Taxes |  | 3,557 |
Total liabilities assumed |  | 30,064 |
Net assets acquired |  | $ | 179,286 |
Purchase Price: |  |
Cash Paid to Seller Borrowed Under Revolving Credit Facility |  | $ | 179,286 |
Unaudited Supplemental Pro Forma Information | Had the acquisition of SMH been completed as of the beginning of 2018, the Company’s pro forma results of operations for the three- and six-month periods ended June 29, 2019 and June 28, 2018 would have been as follows:
|  | Three Months Ended |  | Six Months Ended
(In thousands, except per share amounts) |  | June 29, 2019 |  | June 30, 2018 |  | June 29, 2019 |  | June 30, 2018
Revenues |  | $ | 177,165 |  |  | $ | 176,252 |  |  | $ | 348,481 |  |  | $ | 346,784 |
Net Income Attributable to Kadant |  | $ | 17,236 |  |  | $ | 11,119 |  |  | $ | 31,348 |  |  | $ | 19,594 |
Earnings per Share Attributable to Kadant: |  |  |  |  |  |  |  |
Basic |  | $ | 1.54 |  |  | $ | 1.00 |  |  | $ | 2.81 |  |  | $ | 1.77 |
Diluted |  | $ | 1.51 |  |  | $ | 0.98 |  |  | $ | 2.75 |  |  | $ | 1.73 |

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- Definition Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2) -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(3) -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 + Details
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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=116869197&loc=d3e4845-128472 + Details
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