Acquisitions (Tables)

12 Months Ended

Dec. 28, 2019

The following table summarizes the estimated fair values of assets acquired and liabilities assumed and the purchase price for SMH. During the fourth quarter of 2019, the Company made an adjustment to reduce goodwill by $1,704,000, principally due to a reduction of long-term deferred income tax liabilities as a result of the tax attributes acquired.



	SMH
(In thousands)	January 2, 2019
Net Assets Acquired:
Cash, Cash Equivalents, and Restricted Cash	$	2,431
Accounts Receivable	10,275
Inventories	13,061
Property, Plant, and Equipment	7,383
Other Assets	12,054
Definite-Lived Intangible Assets
Customer relationships	58,300
Product technology	11,000
Other	4,220
Indefinite-Lived Intangible Assets
Tradenames	9,500
Goodwill	78,592
Total assets acquired	206,816

Accounts Payable	3,380
Other Current Liabilities	7,954
Long-Term Lease Liabilities	15,244
Long-Term Deferred Income Taxes	952
Total liabilities assumed	27,530
Net assets acquired	$	179,286

Purchase Price:
Cash Paid to Seller Borrowed Under Revolving Credit Facility	$	179,286

The following table summarizes the estimated fair values of assets acquired and liabilities assumed and the purchase price for the Company's 2017 acquisitions.



	NII FPG		Unaflex		Other
(In thousands)	July 5, 2017		August 14, 2017		October 30, 2017		Total
Net Assets Acquired:
Cash and Cash Equivalents	$	2,219	$	—	$	—	$	2,219
Accounts Receivable	6,542		2,079		—		8,621
Inventories	25,304		2,033		—		27,337
Property, Plant, and Equipment	12,912		1,279		284		14,475
Other Assets	2,375		72		—		2,447
Definite-Lived Intangible Assets
Customer relationships	44,682		8,000		1,500		54,182
Product technology	17,100		2,300		—		19,400
Other	2,530		900		—		3,430
Indefinite-Lived Intangible Assets
Tradenames	8,500		—		—		8,500
Goodwill	85,432		15,640		716		101,788
Total assets acquired	207,596		32,303		2,500		242,399

Accounts Payable	4,970		358		—		5,328
Customer Deposits	7,396		100		—		7,496
Long-Term Deferred Income Taxes	16,622		—		—		16,622
Other Liabilities	5,597		571		—		6,168
Total liabilities assumed	34,585		1,029		—		35,614
Net assets acquired	$	173,011	$	31,274	$	2,500	$	206,785

Purchase Price:
Cash Paid	$	2,993	$	—	$	—	$	2,993
Cash Paid to Seller Borrowed Under the Revolving Credit Facility	170,018		31,274		2,500		203,792
Total purchase price	$	173,011	$	31,274	$	2,500	$	206,785

Unaudited Supplemental Pro Forma Information

Had the acquisitions of NII FPG and Unaflex been completed as of the beginning of 2016, the Company’s pro forma results of operations for 2017 would have been as follows:



(In thousands, except per share amounts)	December 30, 2017
Revenues	$	565,710
Net Income Attributable to Kadant	$	44,159
Earnings per Share Attributable to Kadant
Basic	$	4.02
Diluted	$	3.90

Had the acquisition of SMH been completed as of the beginning of 2018, the Company’s pro forma results of operations for 2019 and 2018 would have been as follows:



(In thousands, except per share amounts)	December 28, 2019		December 29, 2018
Revenues	$	704,644	$	719,142
Net Income Attributable to Kadant	$	56,409	$	56,511
Earnings per Share Attributable to Kadant
Basic	$	5.02	$	5.10
Diluted	$	4.92	$	4.96