Nature of Operations and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 29, 2012

Nature of Operations and Summary of Significant Accounting Policies [Abstract]

Changes in Estimated Product Warranty Liability

The changes in the carrying amount of accrued warranty costs are as follows:

(In thousands)	2012			2011
Balance at Beginning of Year	$	4,129		$	3,778
Provision charged to income		1,775			2,447
Usage		(1,544	)		(2,155	)
Acquired		–			86
Currency translation		102			(27	)
Balance at End of Year	$	4,462		$	4,129

Supplemental Cash Flow Information

Supplemental Cash Flow Information

(In thousands)	2012		2011			2010
Cash Paid for Interest	$	856	$	1,106		$	1,339
Cash Paid for Income Taxes	$	9,326	$	6,677		$	2,754
Non-Cash Investing Activities:
Fair Value of Assets Acquired	$	–	$	21,808		$	9,565
Cash Paid for Acquired Businesses		–		(16,104	)		(7,658	)
Liabilities Assumed of Acquired Businesses	$	–	$	5,704		$	1,907
Non-Cash Financing Activities:
Issuance of Company Common Stock	$	2,106	$	2,296		$	1,499

Components of Inventory

The components of inventories are as follows:

(In thousands)	2012		2011
Raw Materials and Supplies	$	19,561	$	20,218
Work in Process		8,371		9,383
Finished Goods (includes $2,310 and $3,016 at customer locations)		14,145		20,926
	$	42,077	$	50,527

Property, Plant and Equipment

Property, plant, and equipment consist of the following:
 

(In thousands)	2012		2011
Land	$	3,968	$	3,869
Buildings		36,823		35,901
Machinery, Equipment, and Leasehold Improvements		68,255		65,901
		109,046		105,671
Less: Accumulated Depreciation and Amortization		69,878		65,576
	$	39,168	$	40,095

Acquired Intangible Assets

Acquired intangible assets are as follows:

(In thousands)	Gross		Currency Translation			Accumulated Amortization			Net
December 29, 2012
Customer relationships	$	19,054	$	1,433		$	(9,825	)	$	10,662
Intellectual property		15,690		(60	)		(10,838	)		4,792
Tradenames		8,879		(30	)		(125	)		8,724
Non-compete agreements		3,362		(9	)		(3,159	)		194
Distribution network		2,400		–			(1,094	)		1,306
Licensing agreements		400		–			(153	)		247
Other		689		(27	)		(492	)		170
	$	50,474	$	1,307		$	(25,686	)	$	26,095
December 31, 2011
Customer relationships	$	19,054	$	1,194		$	(8,247	)	$	12,001
Intellectual property		15,690		(162	)		(9,483	)		6,045
Tradenames		8,879		(63	)		(53	)		8,763
Non-compete agreements		3,362		(21	)		(3,259	)		82
Distribution network		2,400		–			(950	)		1,450
Licensing agreements		400		–			(133	)		267
Other		689		(52	)		(192	)		445
	$	50,474	$	896		$	(22,317	)	$	29,053

Changes in the Carrying Amount of Goodwill

Goodwill as of year-end 2012 and 2011 relates entirely to the Company's Papermaking Systems segment. The changes in the carrying amount of goodwill are as follows:

(In thousands)	2012			2011
Balance as of Beginning of Year:
Gross Balance at Beginning of Year	$	191,468		$	183,497
Accumulated Impairment Losses		(85,509	)		(85,509	)
Net Balance at Beginning of Year		105,959			97,988
Increase due to acquisitions		–			9,641
Currency translation adjustment		1,988			(1,670	)
Total Adjustments		1,988			7,971
Balance as of End of Year:
Gross Balance at End of Year		193,456			191,468
Accumulated Impairment Losses		(85,509	)		(85,509	)
Net Balance at End of Year	$	107,947		$	105,959

Goodwill by Reporting Unit

The Company evaluates the recoverability of goodwill and intangible assets with indefinite useful lives as of the end of each fiscal year, or more frequently if events or changes in circumstances, such as a significant decline in sales, earnings, or cash flows, or material adverse changes in the business climate, indicate that the carrying value of an asset might be impaired. In 2011, the Company adopted Accounting Standards Update (ASU) No. 2011-08, Intangibles - Goodwill and Other (Topic 350), Testing Goodwill for Impairment, that includes the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount before performing the two-step impairment test as required in ASC 350, Intangibles – Goodwill and Other. At December 29, 2012 and December 31, 2011, the Company performed a qualitative goodwill impairment analysis. Our December 29, 2012 and December 31, 2011 impairment analyses included an assessment of certain qualitative factors including, but not limited to, the results of prior fair value calculations, the movement of the Company's share price and market capitalization, the reporting unit and overall financial performance, and macroeconomic and industry conditions. The Company considered the qualitative factors and weighed the evidence obtained, and it determined that it is not more likely than not that the fair value of any of the reporting units is less than its carrying amount. Although the Company believes the factors considered in the impairment analysis are reasonable, significant changes in any one of the assumptions used could produce a different result. Additionally, at December 29, 2012 and December 31, 2011, the Company performed a quantitative impairment analysis on our indefinite-lived intangible asset  and determined that the asset was not impaired. Goodwill by reporting unit is as follows:

(In thousands)	2012		2011
Stock-Preparation	$	17,583	$	17,488
Doctoring, Cleaning, and Filtration		33,081		32,032
Fluid-Handling		57,283		56,439
	$	107,947	$	105,959