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Business Segment Information
 6 Months Ended
Jun. 27, 2020
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information

The Company previously reported its financial results by combining its operating entities into three reportable operating segments: Papermaking Systems, Wood Processing Systems, and Material Handling Systems, and a separate product line, Fiber-based Products. During the first quarter of 2020, the Company changed its reportable operating segments to better align with its strategic initiatives to grow both organically and through acquisitions. Such growth and diversification resulted in a change in the internal organization of the Company and how its chief operating decision maker makes operating decisions, assesses the performance of the business, and allocates resources. Accordingly, the Company's financial results are reported in three new reportable operating segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment consists of the Company’s fluid-handling and doctoring, cleaning, & filtration product lines; the Industrial Processing segment consists of the Company’s wood processing and stock-preparation product lines (excluding baling products); and the Material Handling segment consists of the Company’s conveying and screening, baling, and fiber-based product lines. Financial information for 2019 has been recast to conform to the new segment presentation. A description of each segment follows.
    
•
Flow Control – Custom-engineered products, systems, and technologies that control the flow of fluids used in industrial and commercial applications to keep critical processes running efficiently in the packaging, tissue, food, metals, and other industrial sectors. The Company's products include rotary sealing devices, steam systems, expansion joints, doctor systems, roll and fabric cleaning devices, and filtration and fiber recovery systems.
•
Industrial Processing – Equipment, machinery, and technologies used to recycle paper and paperboard and process timber for use in the packaging, tissue, wood products and alternative fuel industries, among others. The Company's primary products include stock-preparation systems and recycling equipment, chemical pulping equipment, debarkers, stranders, chippers, and logging machinery. In addition, the Company provides industrial automation and digitization solutions to process industries.
•
Material Handling – Products and engineered systems used to handle bulk and discrete materials for secondary processing or transport in the aggregates, mining, food, and waste management industries, among others. The Company's primary products include conveying and vibratory equipment and balers. In addition, the Company manufactures and sells biodegradable, absorbent granules used as carriers in agricultural applications and for oil and grease absorption.
The following table presents financial information for the Company's reportable operating segments:
 
 
Three Months Ended
 
Six Months Ended
 
 
June 27,
 
June 29,
 
June 27,
 
June 29,
(In thousands)
 
2020
 
2019
 
2020
 
2019
Revenue
 
 
 
 
 
 
 
 
Flow Control
 
$
51,365

 
$
65,273

 
$
108,514

 
$
126,417

Industrial Processing
 
65,673

 
76,396

 
130,382

 
148,670

Material Handling
 
35,822

 
35,496

 
73,091

 
73,394

 
 
$
152,860

 
$
177,165

 
$
311,987

 
$
348,481

 
 
 
 
 
 
 
 
 
Income Before Provision for Income Taxes
 
 

 
 

 
 

 
 

Flow Control (a)
 
$
10,260

 
$
15,133

 
$
23,590

 
$
28,117

Industrial Processing (b)
 
10,639

 
13,869

 
20,075

 
25,723

Material Handling (c)
 
3,593

 
1,259

 
7,727

 
1,990

Corporate (d)
 
(6,371
)
 
(7,119
)
 
(13,616
)
 
(14,113
)
Total operating income
 
18,121

 
23,142

 
37,776

 
41,717

Interest expense, net (e)
 
(1,894
)
 
(3,514
)
 
(4,302
)
 
(6,962
)
Other expense, net (e)
 
(31
)
 
(99
)
 
(63
)
 
(198
)
 
 
$
16,196

 
$
19,529

 
$
33,411

 
$
34,557

 
 
 
 
 
 
 
 
 
Capital Expenditures
 
 

 
 

 
 

 
 

Flow Control
 
$
337

 
$
707

 
$
1,158

 
$
1,178

Industrial Processing
 
211

 
807

 
1,675

 
2,170

Material Handling
 
283

 
415

 
681

 
748

Corporate
 
80

 
46

 
83

 
47

 
 
$
911

 
$
1,975

 
$
3,597

 
$
4,143


(a) Includes restructuring costs of $456,000 in the three- and six-month periods ended June 27, 2020.
(b) Includes $435,000 of acquisition-related expense in the three- and six-month periods ended June 27, 2020. Acquisition-related expenses include amortization expense associated with backlog and acquisition costs.
(c) Includes $1,523,000 in the three-month period ended June 29, 2019 and $5,674,000 in the six-month period ended June 29, 2019 of acquisition-related expense. Acquisition-related expenses include amortization expense associated with acquired profit in inventory and backlog and acquisition costs.
(d) Corporate primarily includes general and administrative expenses.
(e) The Company does not allocate interest and other expense, net to its segments.